1. Chapter 3Tourism

2. After Reading and Studying This Chapter, You Should Be Able to: Define tourism Outline the important international and domestic tourism organizations Describe the economic impact of tourism Identify promoters of tourism List reasons why people travel Describe the sociocultural impact of tourism Describe ecotourism

3. Characteristics Year-round economic driver Accounts for 10.2% of world GDP 7.8% of global workforce Employer of 200 million people or 7.8% of the global workforce Spending on tourism is $72.3 billion Leading producer of tax revenues

4. Tourism Offers Greatest Global Employment Prospects Trend factors The opening of borders despite security concerns An increase in disposable income and vacations Cheaper and more exclusive flights An increase in the number of people with time and money to travel More people with the urge to travel

5. The World Tourism Organization States: “Tourism comprises the activities of people traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business, and other purposes.”

6. Tourism Can Be Categorized by the Following Factors: Geography Ownership Function Industry Motive

7. Airlines Change occurred in 1978 Purpose is to allow a free market of competition (fare structures) Change in companies and the way airlines are doing business

8. Changes Seen Since September 11, 2001 Business travelers spend less Airlines’ fuel costs, pensions and security costs are on the rise Major airlines are laying off employees Delivery of new jets is delayed Closing hubs, reservation and maintenance centers to cut costs

9. The Hub-and-Spoke System Enables passengers to travel from one smaller city via another smaller city via a hub Hubs are the centers for connections around the world Benefits Airlines can service cities at a lower cost Airlines can maximize passenger loads from small cities, thereby saving fuel

10. Cruise Ships A floating resort 8.2 million passengers vacationed on a ship in 2003 alone Most cruise ships sail under foreign flags Lower labor cost US ships are not permitted to operate casino-style gambling Lower construction costs

11. Cruise Market Segments Mass market Middle market Luxury market

12. World and Domestic Organizations Click on the links below for more information: World Tourism Organization International Air Transportation Organization International Civil Aviation Organization Organization for Economic Cooperation and Development Pacific Asia Travel Association Travel Industry of America World Travel and Tourism Council

13. Economic Impact of Tourism International travelers spend about $72.3 billion on travel-related expenses in the US annually 20.8 million people are directly employed in the industry Travel generates $95.6 billion yearly in tax receipts Approximately 40 million international travelers visit the US each year

14. Multiplier Effect New money spent by tourists is then re-spent by hotels and restaurants in the community for goods and services Leakage occurs when money must be spent outside the community for goods unavailable within the community

15. Travel Agencies Serve as a middle person Agents use computer reservation systems Make money on commissions charged to hotels and car rental bookings Charge clients a fee for their services What does the future hold for travel promoters?

16. Corporate Managers Work within a large corporation Can still work with travel agencies Can also be the “meeting planner”

17. Wholesalers Consolidated services Airlines Other transportation carriers Ground service suppliers Tours Sold to the public

18. National Travel Offices National Offices US now has an NTO Private organization Examples of other NTO’s Canada Germany Australia

19. Destination Management Companies Service organizations Meet the needs of their clients They sell destinations Meeting planners Incentive companies

20. Reasons People Travel To experience new and different surroundings To experience other cultures To rest and relax To visit friends and family To view, or participate in, sporting/recreational activities

21. Reasons for Anticipated Increase in Tourism Longer life span Flexible working hours Early retirement Greater ease of travel Tendency to take shorter, more frequent trips Increase in standard of living

22. Appeal of Travel Scenic beauty Pleasant attitudes of locals Suitable accommodations Rest and relaxation Airfare cost Historic and cultural interests Cuisine Water sports Entertainment Shopping facilities Sports

23. Trends in Business Travel Companies are requiring employees to take the lowest reasonable airfare 37% of employees stay over a Saturday night when it will reduce the airfare 77% impose a size limit on rental cars, up from 70% 14% regularly make employees stay in economy hotels such as Hampton Inn or Courtyard by Marriott

24. Social and Cultural Impact of Tourism Tourism pollution Cultural awareness Higher levels of employment

25. Ecotourism Buzzword Seeks to minimize the impact of tourism Natural environment and native cultures

26. Trends in Tourism Ecotourism Number of tourist arrivals will continue to increase Governments will continue to recognize importance of tourism Increase in number of bi-lateral treaties

27. More Trends Internet booking will increase Technology will continue to advance Marketing partnerships and corporate alliances will continue to improve Ticket-less air travel will become commonplace Managing destinations has become a challenge Increase in number of “boutique” airlines Increase in use of automatic airport check-ins

28. Even More Trends… Continued expansion in the cruise industry More alternate cruises Increased concern for health and safety of travel and tourism Increase in “nature” tourism