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Copyright © 2010 by John Wiley & Sons, Inc. All Rights Reserved.

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1 Copyright © 2010 by John Wiley & Sons, Inc. All Rights Reserved

2 WHAT IS TOURISM? According to Theobald, tourism is defined as “The activities of visitors, persons travelling to and staying in places outside their usual environment for up to 12 months for leisure, business, pilgrimage, etc.” A visitor (or tourist) is someone travelling outside of their usual environment Sometimes the definition requires that the tourist spend one night away from home

3 TRAVEL AND TOURISM Travel (and tourism) has always been and is still an important activity in North American society It is important to individuals and to local, state, regional and national economies The hospitality and tourism industries are strongly linked and it can be hard to separate them sometimes Broadly, T&T are the businesses and services that serve travelers away from home What are some examples?

4 TRAVEL AND TOURISM The Travel and Tourism Industry includes the following: – Restaurants – Lodging/Resorts – Airlines – Rental Cars – Travel Agents – State and National Parks – State Departments of Tourism – Leisure Activities

5 DIMENSIONS OF TOURISM The following are dimensions that tourism and government organizations are often interested in tracking: – Purpose of the trip – Distance traveled – Duration of the trip – Residence of the traveler – Mode of transportation – Spending

6 FACTORS AFFECTING TRAVEL AND TOURISM Travel can be affected by: Income Time available Cost of gas Economy Amount of leisure time available Demographic shifts Travel advisories Border restrictions

7 TYPES OF TRAVEL Travel can be for purposes of business or pleasure 77 % of all domestic travel is for pleasure purposes People are traveling for pleasure when they want to experience new things, experience a change of pace, improve their health, visit friends and relatives, etc.

8 TYPES OF TRAVEL Business travel is also a very important component and can represent greater expenditures (hotels, air, restaurants) Business travel accounts for about 12% of all domestic travel Business travel can include persons attending meetings and conventions

9 THE U.S. AS AN INTERNATIONAL DESTINATION The US leads the world in (inbound) international tourism spending Much of the international travel here is made up of travelers from Canada and Mexico and is largely dependent upon exchange rates Also, even though the US does not have Approved Destination Status in China, more Chinese tourists are travelling here

10 THE U.S. AS AN INTERNATIONAL DESTINATION Top reasons people travel to the US – “Made” attractions (Disney) – Natural attractions (Grand Canyon, Niagara Falls) – Cities (San Francisco, Washington DC, New York) – Gaming (Las Vegas) – Friends and relatives

11 FACTORS AFFECTING TRAVEL AND TOURISM Like the hospitality industry, the travel and tourism industry had a couple of difficult years but is expected to recover in the early part of this decade Domestic travel is growing (US residents travelling in the US) Leisure time will increase (again) Travel patterns are changing (shorter vacations)

12 MODES OF TRAVEL Automobiles are still the most widely used mode of transportation for travel (representing 90% of all trips taken). Airlines (a function of cost and distance) Ships/boats/ferries Trains Fly/drive Other (bicycles, motorcycles)

13 PASSENGER TRANSPORTATION Only the rich (and daring) flew in the 1920s Air travel increased through the 1970s Deregulation (1978) brought more carriers, increased competition and lower fares Air travel is increasing despite the recent problems that carriers have experienced Airlines have attempted to increase profits by raising fares, reducing services, and partnering with other carriers

14 PASSENGER TRANSPORTATION Airlines have challenges associated with high capital costs, high labor costs, high fuel costs (25%), maintenance costs, and high levels of uncertainty High fares are essential to making profits but airlines can find themselves in a “Catch 22’

15 RESERVATIONS NETWORKS Airlines long relied on travel agents to book flights on their behalf Airlines have started to rely on them less and less because of the Internet and an attempt to save money (from commissions) Travel agencies are declining now but still book about 50% of all airline travel Travel agents use central reservation systems such as Sabre

16 ECONOMIC SIGNIFICANCE OF TOURISM Tourism is one of the largest industries in the country and the world It provides more jobs than every industry but health care It has an even greater impact when the travel multiplier is considered (employee payroll, employee spending, taxes, etc.) Many states depend on tourism as a major revenue generator

17 NONECONOMIC EFFECTS OF TOURISM Crowding Congestion Impact on local quality of life Cost of living Pollution Degradation of the environment Loss of authenticity

18 FAVORABLE NONECONOMIC EFFECTS OF TOURISM Increase local pride Celebrate local culture Coincide with local traditions Provide opportunities for voluntourism

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