International Journal of Contemporary Hospitality Management

International perspectives on travel and tourism development

Jorge Costa
Article information:
To cite this document:
Jorge Costa, (1995),"International perspectives on travel and tourism development", International Journal of Contemporary
Hospitality Management, Vol. 7 Iss 7 pp. 10 - 19
Permanent link to this document:
http://dx.doi.org/10.1108/09596119510101886
Downloaded on: 02 October 2015, At: 20:25 (PT)
References: this document contains references to 36 other documents.
To copy this document: permissions@emeraldinsight.com
The fulltext of this document has been downloaded 4712 times since 2006*
Users who downloaded this article also downloaded:
Gavin Eccles, (1995),"Marketing, sustainable development and international tourism", International Journal of Contemporary
Hospitality Management, Vol. 7 Iss 7 pp. 20-26 http://dx.doi.org/10.1108/09596119510101895
Downloaded by Can Tho University, Dai Le At 20:25 02 October 2015 (PT)

Austin Uzama, (2009),"Marketing Japan's travel and tourism industry to international tourists", International Journal of
Contemporary Hospitality Management, Vol. 21 Iss 3 pp. 356-365 http://dx.doi.org/10.1108/09596110910948341
Gavin Eccles, Jorge Costa, (1996),"Perspectives on tourism development", International Journal of Contemporary Hospitality
Management, Vol. 8 Iss 7 pp. 44-51 http://dx.doi.org/10.1108/09596119610152041

Access to this document was granted through an Emerald subscription provided by emerald-srm:612878 []
For Authors
If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service
information about how to choose which publication to write for and submission guidelines are available for all. Please
visit www.emeraldinsight.com/authors for more information.
About Emerald www.emeraldinsight.com
Emerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of
more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online
products and additional customer resources and services.
Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication
Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.

*Related content and download information correct at time of download.

 10 INTERNATIONAL JOURNAL OF CONTEMPORARY HOSPITALITY MANAGEMENT 7,7
International perspectives on
travel and tourism development
Jorge Costa
What are the main areas of concern and potential opportunities for the travel and tourism industry?
Introduction
This article reviews the Travel and Tourism Analyst
Downloaded by Can Tho University, Dai Le At 20:25 02 October 2015 (PT)
issues published in the period from 1989-1994. The
journal under analysis is a leading reference source in the
area of travel and tourism and is a bi-monthly publication
of The Economist Intelligence Unit. The analysis covers
147 articles on a wide variety of subjects from which four
main themes were identified for further discussion. These
themes were chosen for the importance of the areas and
markets covered, and their recurrence during the period of
analysis. The themes are (see Appendix): airlines; hotel
sector; outbound travel; tourism industry.
The intention here is to trace the main issues and trends
emerging in the fields of hospitality, travel and tourism
and to highlight possible areas/opportunities of interest
for researchers and industrialists.
Airlines
The selected studies cover aspects ranging from the
financial state of the major US airlines to the role of
European airline commissions. In fact, the issues affecting
this industry and its future prospects reflect its
importance in the context of the world economy. An
analysis of some of the main findings of these studies
provides a deep understanding of the context and
problems faced by the main players in this dynamic
industry (see Table I).
The first study is by James[1] and reports on the financial
performance and future prospects of US major airlines.
The study shows how the deregulation of the airline
industry deeply affected some of the major US airline
companies as was the case with Pan Am, TWA, Eastern
and Continental. According to James, the effects of the
deregulation were maximized by the popularity of
frequent flyer programmes, the development of hub and
spoke networks and computer reservation systems.
Altogether, this set of events contributed to the demise of
over 200 airlines and the dominance of the industry by a
few major carriers. From James’ viewpoint the 1990s will
International Journal of Contemporary Hospitality Management, Vol. 7 No. 7,
1995, pp. 10-19 © MCB University Press Limited, 0959-6119
be a decade during which the modernity of the aircraft
fleets will dictate the ability of individual carriers to
maintain and strengthen their leadership. The trend is for
the number of major players to reduce in the future and
the pressures of international merger and acquisition to
increase.
A study by Smith[2] identifies an interesting trend.
According to this author, the airlines are dynamically
moving into new business areas, and some of the major
established European companies are already adopting
such strategies. These diversification activities have been
encouraged by the end of old nationalistic tendencies and
state protectionism. One of the areas developed by the
airline shareholders in Europe is new computer
reservation systems (CRSs) – Amadeus and Galileo – as a
defence mechanism against US competitors[3]. However,
there are still various problem areas for the new CRSs
such as the reluctance of the travel agents to commit
themselves to the system, and the authorities’ concern
about issues of bias in the display. As stated by Smith[2], a
trend for the future suggests that the way for CRSs to
survive will be through mergers or take-overs.
A major problem affecting the airline industry has
been that of the capacities at Europe’s airports. According
to Marshall[4], airlines want governments to invest
in order to increase their business prospects, while
local communities are afraid of an unbalanced devel-
opment affecting the environment. Some solutions to the
problems of air traffic congestion are already being
developed; however, this is a slow process and it will take
time before a consensus is found. A partial solution to the
problem could be the use of smaller regional airports
which already handle a very significant proportion of
Europe’s air traffic[7]. The evidence, however, shows that
very few of these regional airports are able to achieve a
reasonable financial performance, and according to
Fitzpatrick and Mottram[7] many of the key influences of
the single European market on air travel will make it
worse. The perspective is for costs to rise owing to a
possible loss of duty free sales and increased security
requirements. There are good prospects in terms of
commercial opportunities for these airports, but their
success or failure depends on size.
 INTERNATIONAL PERSPECTIVES ON TRAVEL AND TOURISM DEVELOPMENT 11

Table I. Airline industry studies

Authors Focus Sub-theme

James[1] The financial results of the ten major US airlines and the implications Deregulation of the US airline industry
of financial strengths and weaknesses for market position
in the future
Smith[2] The diversification of major established European airlines into Incompatibilities of deregulation,
computer reservations systems, financial and asset management, promotion of competition and consumer
hotels, catering, and road freight activities choice
Sloane[3] The latest information on Europe’s major new computer reservation The problem areas for the new CRSs
system (CRSs) – Amadeus and Galileo
Marshall[4] The capacities of Europe’s airports and Europe’s air traffic control Investment costs versus costs of failing
system. Their growth prospects to meet market demand
Smith[5] Charter airlines in Europe and the development of its market share Leisure travel patterns for new charter
into the next century airlines
Downloaded by Can Tho University, Dai Le At 20:25 02 October 2015 (PT)

French[6] An industry-wide review of the European airline profitability The single European air transport market
Fitzpatrick and The status and prospects of Europe’s smaller regional Commercial opportunities for regional
Mottram[7] airports airports
Wheatcroft[8] The state of the world airline industry by the year 2000: the The main players in the world airline by
development of international mega-airlines the year 2000
French[9] The role of US and European airline commissions Ownership or part-ownership of airlines
by status in Europe

An important issue in the European airline industry is the
role of charter airlines. From Smith’s[5] perspective, these
have been at the centre of the growth of European leisure
travel. This growth resulted in an increase in charter
traffic and future increases are expected. The North
European markets have traditionally been the most
dynamic, and future growth will be achieved by more
narrowly focused market segmentation. The Mediter-
ranean countries are developing as significant markets of
origin. The pattern here is the same as identified in
previous studies: a trend towards mergers and
acquisitions as the industry grows and matures.
The prospects for the future of the world airline industry
are complicated by the question of the role of the US and
European airline commissions. In Europe, French[9] notes
that ownership or part-ownership of airlines by states is
now a critical issue. Will this act as a barrier to the
development of an international competitive oligopoly? It
looks as though the airline commissions will have to
analyse the subject carefully and regulate in such a way
that the profitability of airline companies will not be
affected by Draconian laws but at the same time a state of
fair competition will be secured.

As a result of the Gulf crisis and recession in key markets,
the European airline industry has had to turn to short-
term crisis management at the same time as it was
preparing for the advent of a single European air trans-
port market[6]. Another issue to add to this already
worrying picture is the fact that Europe’s airlines face fleet
re-equipment costs of around US$140 billion over the next
15 years. A study by French[6] on European airline
profitability found that the major airlines suffered more
than the US or the Asia/ Pacific carriers, and even
Europe’s smaller operators. Another study by Wheat-
croft[8] concludes that the world’s airlines are being drawn
into accepting fundamental changes and that by the end
of this century no more than about a dozen international
mega-airlines will exist. From Wheatcroft’s perspective
these will be dominated by US, European and Asia Pacific
groups, internationally owned and supported by large
numbers of “niche” carriers operating only in national or
regional markets.
The hotel sector
The studies selected under the second theme reflect the
many aspects influencing the development of the
worldwide hotel operations, and point out some of the
strategies adopted to face the challenges posed to the main
players (see Table II). Starting with a study by The
Economist Intelligence Unit (EIU) concerning foreign
investment in China’s hotel sector[10], it is apparent that
the tourism industry in China began to develop in the late
1970s. According to this study, as the country lacked the
international hotel capacity and management expertise to
develop the necessary infrastructure quickly, the solution
was to invite overseas participation and investment. The
country achieved important foreign participation as a
result of this effort. This study also reports on the
successful developments achieved by foreign investors
and management companies, and on the difficulties faced
by them mainly in relation to infrastructure and some
aspects of local law, regulation and business practices.
 12 INTERNATIONAL JOURNAL OF CONTEMPORARY HOSPITALITY MANAGEMENT 7,7

Table II. Hotel sector studies

Authors Focus Sub-theme

The Economist An historical review of the progress of overseas participation Future trends in China’s hotel sector
Intelligence Unit[10] and investment in China’s hotel sector
Hubbard[11] The collapse of the world commodity markets in the 1980s and Prospects for hotel expansion in Africa
its impact on the hotel sector in sub-Saharan Africa and the
Indian Ocean
Lockwood and The shortage of labour in the hotel sector in North America, Seasonality and high labour turnover rates
Guerrier[12] Europe and the Asia Pacific region: a trend for the 1990s
Slattery[13] The key features of hotel brands: the case of US and UK Branding as a dominant feature of the
hotel sectors international hotel industry in the 1990s
Slattery and The structure of Europe’s economies and the The service sector and the demand from
Litteljohn[14] demand for hotel accommodation domestic business travellers
Downloaded by Can Tho University, Dai Le At 20:25 02 October 2015 (PT)

Slattery[15] The unaffiliated hotels in the UK and the implications for Options for independent hoteliers
independent hotels internationally
McGuffie[16] The current situation and development plans for the hotel sector Emerging tourism and business travel
in the major cities of continental Europe (excluding the UK) destinations in eastern Europe
Olsen[17] The strategies adopted by the major US chains as a response Hotel companies and overseas expansion
to the rapid expansion during the 1980s, the recession and the
effects of the Gulf War
Middleton and Practical actions on environmental policies taken by hotels as a Hotel customers’ reactions
Hawkins[18] way to enhance profitability

Other regions facing problems in the development of their
hotel capacities are sub-Saharan Africa and the Indian
Ocean. According to a study by Hubbard[11] one of the
main reasons for the undersupply was the collapse of the
world commodity markets in the 1980s which led to a
general slowdown affecting the business sector and
subsequently the hotels operating in this sector. This state
of affairs resulted in a drop in occupancy rates and general
stagnation. Many state-owned hotels were subject to
privatization programmes and countries without tourism
potential seemed to have few opportunities to develop
compared with those that did have the potential.
Hubbard[11] concluded that the prospects for hotel
expansion in Africa are unlikely to improve until there are
signs of an economic upturn in the sub-continent.
A different problem posed for the international hotel
operators is that of labour shortages. Being predominantly
a service activity staff resources are crucial to the
product[12]. This shortage of labour will have an effect on
regions such as North America, Europe and Asia Pacific.
According to Lockwood and Guerrier[12] seasonality and
high labour turnover rates exacerbate the problem.
A possible solution is for the industry to create a better
career structure, higher skill levels through improved
training and the development of a better image. The
adequacy of staff levels for the segment in which the hotel
operates is another potential measure to help solve this
problem.
As stated by Slattery and Litteljohn[14] the change
towards more service industry employment in key
countries has important implications for hotel investment
plans. In their study of the demand for hotel accom-
modation in Europe, Slattery and Litteljohn tested the
theory that the structure of economies influences the
demand for accommodation and in particular that the
greater the importance of the service sector, the greater
the demand from domestic business travellers. This study
looked at Germany, France, Italy, Spain and the UK and
concluded that in the 1990s hotel growth prospects in
mainland Europe for the major hotel companies are better
than in the UK. The prospects for hotel sector
development in the major cities of continental Europe,
excluding the UK, is the basis of a study by McGuffie[16].
It predicts that city centre hotel environments are likely to
become even more competitive in the future. This study
also reports that the maintenance of hotel profitability will
be made more difficult by increasingly high labour
markets for hotel staff and a consequent upward pressure
on labour costs. The difficult market conditions are
generally being addressed by the use of product
segmentation strategies and co-operative marketing
policies.
The major US chains are developing other strategies to
keep up with the rapid expansion of the 1980s and the
effects of the Gulf crisis. According to Olsen[17] the US-
based hotel companies are looking to undertake more
overseas expansion. Some companies base their growth
primarily on franchising, management contracts and the
 INTERNATIONAL PERSPECTIVES ON TRAVEL AND TOURISM DEVELOPMENT 13

implementation of new technology, while others see the
marketing of several brands as the best strategy.
A central feature in the expansion of the hotel sector in the
1980s has been the emergence of hotel brands. According
to Slattery[13], branding is likely to remain a dominant
feature of the international industry in the 1990s. The
economies of scale permitted by branding in terms of
reservation systems and marketing will ensure that
branding continues to play an important role.
Important players in the UK hotel sector are the
unaffiliated hotels, but according to Slattery[15] these are
losing room stock, and their profitability per room is seven
times less than the UK’s hotel chains. Viewed from the
perspective of gains derived from economies of scale
relating to purchasing and marketing, the unaffiliated
hotels will find themselves increasingly disadvantaged
Downloaded by Can Tho University, Dai Le At 20:25 02 October 2015 (PT)
responsible practices go hand-in-hand. Several major
international hotel groups are now seeing environmental
issues as important, and corporate customers are showing
signs that higher environmental standards will be
expected in the future.
Outbound travel
Outbound travel, a very important market within the
tourism industry, has different prospects of growth
according to regions and countries. The future will dictate
which destinations will gain most from the changing
patterns in their feeder markets. An analysis of the major
countries responsible for overseas trips sheds some light
on this matter (see Table III).

over time. He suggests the following four options for the
independent hotelier: sell to a hotel chain; create
economies of scale by joining a consortium or franchise;
reposition the hotel by investing in new facilities; do
nothing. The last option is untenable from Slattery’s
perspective, as the prospects are for the UK’s independent,
unaffiliated hotels to continue to lose market share during
the 1990s.
Finally, another area of concern for the hotel sector is that
of the environment. Traditionally, the travel and tourism
industry, with the exception of the airlines, has been slow
to take positive action on environmental issues[18]. This
situation has brought with it a considerable weight of
criticism. Some recent environmental actions have been
taken and international hotel operators have been
particularly proactive in this field. The hotels sector,
according to Middleton and Hawkins[18], has begun to see
that enhanced profitability and environmentally
The UK, the second most important generator of
international travel after Germany, has a mature market
characterized by a highly developed tour operator
business. A study by Edwards[19] reports that the UK
outbound travel has grown rapidly in the 1980s and is a
major influence on the pattern of international tourism
worldwide. An important aspect of this study is the
reference to the independent traveller, who, according to
Edwards, is normally ignored by the travel trade, but is
responsible for more expenditure than the whole of other
national outbound markets like Sweden. This study
predicts that the independent travel market will grow in
influence and has received a further incentive with the
opening of the Channel Tunnel.
A more recent study by Lavery[26] on UK outbound
travel, shows a progressive shift away from the organized
holiday package. According to this study, the change
reflects a disenchantment with the holiday package, its

Table III. Outbound travel studies

Authors Focus Sub-theme

Edwards[19] The UK independent traveller’s market: trends for the 1990s Winners and losers
Cockerell[20] The change in travel patterns by German travellers, future Shift towards special interest tourism
developments and trends
Cockerell[21] Positive changes in the structure of the French travel industry Marketing strategies
Cockerell[22] Recent trends in Italian outbound travel: the structure of the The prospects for the 1990s
Italian travel trade and future perspectives
Stewart[23] The future shift of the Spanish outbound market towards long- A profile of the Spanish market to the UK
haul travel at the expense of travelling to adjacent countries
Cockerell[24] The prospects for Swiss outbound travel in the light of the Bright spots: short city breaks and long-
negative assumptions about the economy haul travel
Cockerell[25] The decrease in demand for international travel in Germany in Demand patterns in the eastern states
1992, and prospects for 1993 and 1994
Lavery[26] UK outbound market: the trend towards rented accommodation Disenchantment with the holiday
and independent travel package
Fockle[27] US outbound market: major destinations and prospects for growth The effects of the Gulf crisis and recession
 14 INTERNATIONAL JOURNAL OF CONTEMPORARY HOSPITALITY MANAGEMENT 7,7
quality and value for money, and also a greater confidence
in organizing independent holidays. The business travel
market, even though it has kept a reasonable growth rate,
is moving towards more economical travel accom-
modation. The conclusion of Lavery’s study points
towards better prospects for the independent travel sector
than for tour operators.
The German outbound market, the world’s largest, can
be seen as having “an increasingly sophisticated and
discerning clientele”[20]. This study by Cockerell of
German outbound travel points out that, as a result of the
maturity of this market, growth will come from changing
travel patterns such as more short breaks, more holidays
per year but of a shorter duration, greater use of regional
airports, greater market segmentation and the develop-
ment of new destinations. A later study by Cockerell[25]
Downloaded by Can Tho University, Dai Le At 20:25 02 October 2015 (PT)
reports a slow-down in demand for international travel.
However, owing to the size of this travel market, a slow-
down does not constitute a major crisis. As Cockerell
states, the volume of travel is still very large and there is
great potential for travel among residents of the eastern
states given a reasonable economic growth. West
Germans, however, seem to be somehow reacting against
sun-and-sea holidays in favour of cultural and activity
holidays, as opposed to East Germans with a more
traditional demand pattern. Long-haul demand seems to
be still the preference, and despite the slow-down
German’s dominance of European international travel
does not seem to be threatened. As Cockerell concludes,
growth in the longer term seems to be assured.
Switzerland, another important origin market, can be seen
as one of the most travel intensive nations on earth[24].
A stable country for many years, Switzerland has been
used as a benchmark against which the performance of
other countries has been measured. However, according to
the study by Cockerell on Swiss outbound travel[24], this
picture is no longer true, at least by Swiss standards.
In fact, from their viewpoint, the economy is depressed
and the currency weakened. As a result of this, Swiss out-
bound travel seems to be facing uncertain prospects.
According to Cockerell, the general prospects can be
considered mediocre, but by way of compensation, market
segments such as short city breaks and long-haul travel
seem to be “bright spots”.
France has been a less important outbound travel market
than some of the other northern European countries as a
result of its geographic and climatic variety[21]. Most
French leisure travellers have tended to spend their
holidays in France rather than going away. This trend has,
however, changed in recent years. The French market has
tended to improve and French travel industry companies
are increasingly becoming major players on the
international scene. The trend for leisure travel intensity
by French holiday makers seems likely to increase.
Spain presents a similar picture to that of France. Spain’s
international tourism, supported by a strong peseta, a
good economic performance and growing familiarity with
international leisure travel, is becoming one of Europe’s
strongest growth markets[23]. Traditionally, as in France,
Spanish leisure travellers would stay in Spain, visiting
and staying with friends and relatives and using second
homes. According to Stewart[23], outbound leisure travel
has tended to focus on adjacent countries and is organized
independently from the travel trade. This study observes
that long-haul travel in the future is likely to be a very
strong growth sector within the Spanish outbound
market. Stewart concludes that even though most
outbound travel will tend to be directed to adjacent
countries, more Spanish holiday makers will go to
northern Europe.
Italy, another Mediterranean country, still has a relatively
immature outbound market[22], which is partly explained
by the attractions of Italy itself. However, during the 1980s
Italy has been Europe’s fastest growing outbound market
with long-haul holidays and short breaks appearing to be
the strongest areas of growth. According to the same
study, Italians are becoming more demanding of quality
and more sensitive to environmental issues, and this
reflects the same type of concerns as other more mature
European markets.
Finally, an analysis of the US outbound market highlights
some interesting aspects. A study by Fockler[27] shows
that, although it represents just a small proportion of the
US population, it is estimated at about 44.7 million people.
Its main destinations are the neighbouring countries of
Canada and Mexico, about two-thirds of the visitors, with
only about one-third travelling overseas. The outbound
travel market suffered with the Gulf crisis and the
recession, and the prospects for growth are still slow to
develop, mainly because of a lack of confidence in the
economy. An interesting aspect pointed out by Fockler is
the fact that a large proportion of the population still does
not consider a trip overseas despite having the financial
capacity to afford it.
The tourism industry
Some particular features of the tourism industry have
been the changing prospects and growth orientation for
the future (Table IV). One of these issues is the
environment. According to a study by Smith and
Jenner[28] environmental consciousness is growing fast as
an international political issue, and tourism’s impact on
sensitive ecologies is becoming a major concern. The point
made in this study is that at the same time that tourism is
damaging the world’s environment it is bringing
substantial economic benefits as well. Smith and Jenner
take a detailed look at this dichotomy and examine some
of the resource management solutions that have been
proposed. They conclude by saying that the tourism
industry, in its widest sense, needs to take a lead in
 INTERNATIONAL PERSPECTIVES ON TRAVEL AND TOURISM DEVELOPMENT 15

Table IV. Tourism industry studies

Authors Focus Sub-theme

Smith and Jenner[28] Key issues on tourism and the environment: the most Some resource management solutions
affected habitats
The Economist The role of tourism in developing countries and its capacity to The broad impact of tourism in some key
Intelligence Unit[29] act as an instrument in economic development developing economies
Kerpel[30] Current tourism patterns, the investment climate and future A country-by-country analysis
prospects in eastern Europe
The Economist Short-term economic prospects for the main OECD Forecasts by five key international travel
Intelligence Unit[31] countries generators – the USA, Japan, Germany,
the UK and France
Edwards[32] A guide to the pitfalls in using official tourism and Reliability, completeness or accuracy of
travel statistics tourism statistics
Downloaded by Can Tho University, Dai Le At 20:25 02 October 2015 (PT)

McEniff[33] Seasonality of tourism demand in the European Community School and work holidays as the major
and the type of product that can be developed to attract determinants in seasonality
non-peak visitor flows
The Economist The immediate economic prospects of 16 OECD countries A brief overview of especially important
Intelligence Unit[34] which represented the bulk of international travel tourism markets – the USA, Japan,
in 1992 Germany, the UK and France
The Economist A survey of tourism and tourism-related programmes A summary of some of the most
Intelligence Unit[35] currently being pursued by the EC important elements
The Economist Cultural tourism in Europe: a major market that is steadily National perceptions of what constitutes
Intelligence Unit[36] increasing cultural tourism

becoming more environmentally responsible.
The dichotomy between the negative and positive aspects
of tourism development are particularly important for
developing countries and can be used as an instrument for
economic development. A study by the Economist
Intelligence Unit[29] raises the question of how private
investors should structure their proposals to governments
of developing countries in order to take account of national
concerns[29]. The theoretical basis for regarding tourism
as a development investment is provided, as well as an
assessment of the broad impacts of tourism in some key
development economies. This study concludes that good
management of tourism is essential to ensure that benefits
are maximized.
The former eastern bloc is another region where
tourism is due to play a major role in the countries’
economies. The changes of 1989 opened up the prospect
for eastern Europe to become an important tourist
destination to westerners. A study by Kerpel[30] exam-
ined the current tourist patterns, the investment climate
and future prospects on a country-by-country basis. It
highlighted some aspects that might be the key to future
success, like: the ethnic diversity, climate range and
cultural richness of the Soviet Union; the beaches of
Bulgaria; the lakes and mountains of former Czech-
oslovakia and Poland. Prospects and problems are
analysed and key factors likely to influence future
development in each country are presented. All recent
social, economic and political developments in the world
cry out for an assessment of the medium- and long-term
environment. Events like the Gulf War and the fall of the
Berlin wall posed opportunities and threats for different
countries. An interesting study by the Economist
Intelligence Unit[31] examined whether there was an
international recession in prospect before the Gulf crisis,
and looked at the short-term economic prospects for the
main OECD countries. The broad conclusion of the study
was that, if conflict in the Gulf could be avoided, then the
international travel industry from the main OECD
countries would have a broadly stable year in 1991 at
similar levels to those achieved in 1990. The study forecast
a severe decline in international travel in the event of a war
in the Gulf. These expectations were, unfortunately,
confirmed and the international travel market suffered
severely from this event.
A later study by the EIU[34] analysed the tourism
industry in 1992 and presented the prospects for 1993.
The year of 1992 was a difficult year for the international
travel and tourism industry as a result of the Gulf war,
which depressed travel in 1991. According to this study
the airlines of the world were still suffering losses
and many of the hotel operators likewise found that 1992
was a poor financial year. The study looked at the
immediate economic prospects of 16 OECD countries
 16 INTERNATIONAL JOURNAL OF CONTEMPORARY HOSPITALITY MANAGEMENT 7,7
which accounted for the bulk of international travel, and
summarized the prospects for 1993.
Seasonality is yet another major area of concern for the
tourism industry. According to a study by McEniff[33]
seasonality with its associated problems of congestion,
environmental damage and underutilization of resources
causes major difficulties for the travel industry. This
interesting study examines some of the markets that are
most amenable to an alteration in their seasonal travel
patterns, and the type of product that can be developed to
attract non-peak visitor flows. Strategies for addressing
seasonality problems are presented. These include
spreading tourists geographically, tackling transport
congestion issues and implementing vision management
techniques. The segmentation of the main markets and the
Downloaded by Can Tho University, Dai Le At 20:25 02 October 2015 (PT)
effective promotion of alternative products may be another
way to face seasonality problems. The EIU[36], in its study
of the market for cultural tourism in Europe, presents this
market as a major one which is steadily increasing. One
problem facing cultural tourism is the lack of a clear and
generally accepted definition of what constitutes cultural
tourism, as this form of tourism frequently overlaps with
others such as short breaks or incentive travel. A strategy
used to increase cultural tourism in Europe is the joint
promotion of destinations. A way to maximize this form of
tourism is to define its concept clearly, segment the market
accurately and analyse the cost/benefit in a way which
takes the broader environmental impact into account.
An accurate analysis of tourism markets can be done by
using tourism statistics. According to Edwards[32]
suppliers of tourism services, financiers, planners and
researchers in the international tourism industry make
regular and extensive use of official tourism and travel
statistics. The problem, however, is that few users of
tourism statistical figures critically examine their
reliability, completeness or accuracy. This study includes a
simple guide to the pitfalls in using such statistics.
A main conclusion is that people using tourism data
should seek to understand its limitations and sampling
errors and inconsistencies. More than one source should be
used and care should be taken not to draw conclusions that
are not supported by the detailed evidence. Most of these
matters of concern should be tackled by the European
Community. However, as shown by the study on the EC
tourism development programmes by the EIU[35], tourism
per se has a low profile within the operations of the
European Community. According to this study, despite a
wide acceptance that tourism can help to create
employment, wealth and foreign currency earnings, the
disparate nature of the tourism industry, coupled with a
feeling of EC’s member states that tourism development
should be left for national governments, has contributed to
tourism’s low political profile within the EC. However, if all
the projects that relate to or include a tourism component
are taken into account, it looks as if tourism has a broader
range of support within EC programmes. This study is
very useful in the sense that it surveys the range of tourism
and tourism related programmes currently pursued by the
EC, and summarizes some of the most important elements.
Conclusion
The themes covered in this review reflect a selection of
some influential studies, and they in turn help to identify
important areas of concern and potential opportunities for
the travel and tourism industry. The main aspects worthy
of special reference are: the development of international
mega-airlines supported by niche carriers; the role of
governments in the expansion of airports’ capacities; the
future of regional airports; the role of US and European
airline commissions; the role of western countries in the
expansion of developing countries’ hotel sector; labour
shortages in the international hotel industry; hotel brands
as a central feature in the development of the hotel sector;
the hotel sector’s concern about environmental issues; the
growth of the independent traveller’s market; a
progressive shift away from organized holiday package;
long-haul holidays and short breaks as growing markets;
the need for a more environmentally responsible tourism
industry; tourism as an instrument for economic develop-
ment; cultural tourism and joint promotions of destin-
ations.
General conclusions are as follows:
● The pressure for international merger and
acquisition will push the airline industry towards
the development of a small group of international
mega-airlines which will be supported by niche
carriers operating only in national markets. These
niche carriers are unlikely to affect the main
established airlines owing to the high entry
barriers in this industry.
● The prospects for the world airline industry may
affect the expansion of the airports’ capacities and
also the future of regional airports. These mega
organizations will probably be in a position to
put some pressure on governments in order to
make them regulate and invest in the increase of
airports’ capacity. On the other hand, the regional
airports may receive a boost by the increase of
regional flights by those niche carriers supporting
the main airlines.
● Most of these subjects are matters for the concern
of US and European airline commissions. They
have to analyse and regulate the important issues
affecting the development of the airline industry in
such a way as to keep a balance between the
growth of this industry and a sustainable
management of the environment.
● Western countries also have an important role to
play in the expansion of developing countries’ hotel
infrastructure. Actions have to be developed in
conjunction with local governments to make sure
that an equilibrium is achieved and both sides will
gain from the process. Normally, one aspect of this
 INTERNATIONAL PERSPECTIVES ON TRAVEL AND TOURISM DEVELOPMENT
process is relegated to a second position: the
environment. Both governments and investors
have to try harder in order to achieve a sustainable
development of the regions and countries.
● Labour shortages are an important matter of
concern for hotel operators and companies.
Companies have to look for ways to resolve this
perennial problem. A better career structure and
the development of higher skill levels through
improved training might be one of the solutions.
The development of a better image may also help to
minimize the high labour turnover rates. One way
to improve image is through successful brand
promotions. The marketing of several brands is
seen by some of the major US chains as the best
strategy to face recession and be successful.
Downloaded by Can Tho University, Dai Le At 20:25 02 October 2015 (PT)
The economies of scale permitted by branding in
terms of reservation systems and marketing will
ensure the continuity of branding as an important
strategy.
● The travel market is facing other challenges: the
growth of the independent traveller, a progressive
shift away from organized holiday packages, and
the growth of long-haul and short break markets.
Tour operators have to be more sensitive to the
changes in customers’ needs. Existing products
have to be tailored and new products have to be
developed to suit the “new” customer.
● In general terms, the tourism industry is becoming
more aware of the need to achieve sustainable
development, and the tourist is playing his/her role
to make sure this message is passed to those
responsible for this important industry. Being such
an important activity with substantial economic
benefits for the world economy, it has to be
managed in a way that ensures its important
resources are not lost.
● The protection of these resources can be
ensured partly by the development of cultural
tourism. This may be a way to preserve places
and monuments by correctly planning their use.
It is important, however, that a common definition
of what constitutes cultural tourism is decided on
so that this segment can be accurately measured
and its importance assessed. One way to develop
this segment is through the use of joint promotion
of destinations. This has been done successfully in
Europe and it is hoped that it can be used success-
fully in the future.
● As reflected in this review, the travel and tourism
industry is facing important changes and the
only way for companies to stay competitive is to
keep abreast of the events and trends occurring in
their environment. This can be done through
careful analysis and assessment of all the main
sources providing information in their areas of
concern and the development of a “conscience for
information search and use”.
17
References
1. James, G., “Financial performance and future prospects of
US major airlines”, Travel and Tourism Analyst, Vol. 2,
1989, pp. 5-16.
2. Smith, P., “Airline diversification and investment
strategies”, Travel and Tourism Analyst, Vol. 4, 1989,
pp. 5-15.
3. Sloane, J., “Latest developments in aviation CRSs”, Travel
and Tourism Analyst, Vol. 4, 1990, pp. 5-15.
4. Marshall, C., “Practical solutions to European air traffic
congestion”, Travel and Tourism Analyst, Vol. 4, 1990,
pp. 64-73.
5. Smith, P., “Europe’s charter airlines”, Travel and Tourism
Analyst, Vol. 2, 1991, pp. 5-25.
6. French, T., “European airline profitability – part I”, Travel
and Tourism Analyst, Vol. 5, 1991, pp. 5-23.
7. Fitzpatrick, J. and Mottram, N., “Prospects for Europe’s
smaller regional airports”, Travel and Tourism Analyst,
Vol. 2, 1992, pp. 5-26.
8. Wheatcroft, S., “The world airline industry”, Travel and
Tourism Analyst, Vol. 3, 1992, pp. 5-19.
9. French, T., “The US and European airline commissions”,
Travel and Tourism Analyst, Vol. 6, 1993, pp. 4-18.
10. The Economist Intelligence Unit, “Foreign investment in
China’s hotel sector”, Travel and Tourism Analyst, Vol. 3,
1989, pp. 17-32.
11. Hubbard, D., “The hotel industry in sub-Saharan Africa
and the Indian Ocean”, Travel and Tourism Analyst, Vol. 6,
1989, pp. 19-39.
12. Lockwood, A. and Guerrier, Y., “Labour shortages in the
international hotel industry”, Travel and Tourism Analyst,
Vol. 6, 1990, pp. 17-35.
13. Slattery, P., “Hotel branding in the 1990s”, Travel and
Tourism Analyst, Vol. 1, 1991, pp. 5-22.
14. Slattery, P. and Litteljohn, D., “The structure of Europe’s
economies and demand for hotel accommodation”, Travel
and Tourism Analyst, Vol. 4, 1991, pp. 20-37.
15. Slattery, P., “Unaffiliated hotels in the UK”, Travel and
Tourism Analyst, Vol. 1, 1992, pp. 90-102.
16. McGuffie, J., “City hotels in continental Europe”, Travel
and Tourism Analyst, Vol. 2, 1992, pp. 27-52.
17. Olsen, M., “International growth strategies of major US
hotel companies”, Travel and Tourism Analyst, Vol. 3,
1993, pp. 51-64.
18. Middleton, V. and Hawkins, R., “Practical environment
policies in travel and tourism – part I: the hotel sector”,
Travel and Tourism Analyst, Vol. 6, 1993, pp. 63-76.
19. Edwards, A., “UK outbound”, Travel and Tourism
Analyst, Vol. 2, 1989, pp. 32-55.
20. Cockerell, N., “West Germany outbound”, Travel and
Tourism Analyst, Vol. 4, 1989, pp. 38-59.
21. Cockerell, N., “France outbound”, Travel and Tourism
Analyst, Vol. 2, 1990, pp. 37-51.
22. Cockerell, N., “Italy outbound”, Travel and Tourism
Analyst, Vol. 3, 1990, pp. 37-50.
23. Stewart, T., “Spain outbound”, Travel and Tourism
Analyst, Vol. 2, 1992, pp. 53-71.
24. Cockerell, N., “Switzerland outbound”, Travel and Tourism
Analyst, Vol. 3, 1992, pp. 20-36.
 18 INTERNATIONAL JOURNAL OF CONTEMPORARY HOSPITALITY MANAGEMENT 7,7
25. Cockerell, N., “Germany outbound”, Travel and Tourism
Analyst, Vol. 2, 1993, pp. 19-34.
26. Lavery, P., “UK outbound”, Travel and Tourism Analyst,
Vol. 3, 1993, pp. 20-34.
27. Fockler, S., “US outbound”, Travel and Tourism Analyst,
Vol. 4, 1993, pp. 24-36.
28. Smith, C. and Jenner, P., “Tourism and the environment”,
Travel and Tourism Analyst, Vol. 5, 1989, pp. 68-86.
29. The Economist Intelligence Unit, “Tourism and
developing countries”, Travel and Tourism Analyst, Vol. 6,
1989, pp. 76-87.
30. Kerpel, E., “Tourism potential in Eastern Europe”, Travel
and Tourism Analyst, Vol. 1, 1990, pp. 68-86.
Downloaded by Can Tho University, Dai Le At 20:25 02 October 2015 (PT)
Appendix: Editors’ summary table and thematic relationship diagram
Table AI. International perspectives on travel and tourism development – themes, sub-themes and observations based on a review of
164 entries (1989-1994) in Travel and Tourism Analyst)
Themes Sub-themes
Theme 1: Deregulation and the US airline industry; the
the airline incompatibilities of deregulation, the promotion of
industry competition and consumer choice; assessing the
problems and potential of computer reservation
systems; the capacities of Europe’s airports, air
traffic control system and expansion needs;
leisure travel patterns for new charter airlines;
the European air transport market; the status
and prospects for Europe’s smaller regional airports;
world airline industry projects to 2000; US and
European airline partnerships
Theme 2: Prospects for hotel development in China; prospects
the hotel for expansion in Africa; seasonality and labour
sector turnover; assessing the key factors of hotel brands;
the demand for hotel accommodation in Europe;
unaffiliated hotels and options for independents;
tourism and business travel patterns in continental
Europe; US hotel chain expansion patterns;
environmental policies and the hotel sector
31. The Economist Intelligence Unit, “Prospects for the
international tourism in 1991”, Travel and Tourism
Analyst, Vol. 6, 1990, pp. 68-81.
32. Edwards, A., “The reliability of tourism statistics”, Travel
and Tourism Analyst, Vol. 1, 1991, pp. 62-75.
33. McEniff, J., “Seasonality of tourism demand in the
European Community”, Travel and Tourism Analyst, Vol.
3, 1992, pp. 67-88.
34. The Economist Intelligence Unit, “Prospects for tourism in
1993”, Travel and Tourism Analyst, Vol. 6, 1992, pp. 94-110.
35. The Economist Intelligence Unit, “The European
Community’s tourism development programmes”, Travel
and Tourism Analyst, Vol. 5, 1993, pp. 74-88.
36. The Economist Intelligence Unit, “The market for cultural
tourism in Europe”, Travel and Tourism Analyst, Vol. 6,
1993, pp. 30-46.
Observations
The pressure for international mergers and acquisitions
is likely to push the airline industry towards the
development of a small group of international mega-
airlines which will be supported by niche carriers
operating only in national markets. These niche
carriers are unlikely to affect the main established airlines
due to the high entry barriers in this industry.
The prospects for the world airline industry may affect
the expansion of airport capacities and also the future of
regional airports. These mega organizations will probably
be in a position to put some pressure on governments in
order to make them regulate and invest in increasing airport
capacities. On the other hand, the regional airports may
receive a boost by the increase of regional flights by those
niche carriers supporting the main airlines
Both of the above points are matters of concern for US and
European airline commissions. They have to analyse and
regulate issues affecting the development of the airline
industry in such a way as to keep a balance between growth
and sustainable management of the environment
Western countries have an important role to play in helping
to improve the hotel infrastructures of developing
nations. Action has to be taken in conjunction with local
governments to ensure that equilibrium is achieved
and that both sides stand to gain from the process. One
aspect of this process has traditionally been under-valued:
safeguarding the environment. Both governments and
investors have to try harder in order to achieve sustainable
development objectives
Labour shortages are a perennial concern for hotel operators.
A better career structure and improved training
opportunities may help to solve the problem. The
development of a better image may also help to minimize
high labour turnover rates
(Continued )
 INTERNATIONAL PERSPECTIVES ON TRAVEL AND TOURISM DEVELOPMENT 19

Table AI.

Themes Sub-themes Observations

Theme 3: The UK independent travel market; the changing
outbound travel patterns of German travellers; the French
travel tourism and travel industry; trends in Italian
outbound travel; trends in Spanish outbound
travel; the prospects for Swiss outbound travel;
the UK outbound market; the US outbound
market
The travel market is facing other challenges: the growth
of the independent traveller, a progressive shift away
from organized holiday packages, and the growth
of long haul and short break markets. Tour operators
may need to be more sensitive to the changes in customers
preferences by customizing products to match
needs and expectations more precisely

Theme 4: Tourism and the environment; the role of tourism in
the tourism developing countries; tourism patterns, investment
industry and prospects for Eastern Europe; short-term
econonomic prospects for the principal OECD
Downloaded by Can Tho University, Dai Le At 20:25 02 October 2015 (PT)
In general terms, the tourism industry is
becoming more aware of the need to achieve
sustainable development, and the tourist is
playing his/her role to make sure this message

countries; the reliability of tourism and travel statistics;
seasonality; tourism programmes and the EU;
cultural tourism in Europe
is passed to those responsible for this
In part, the protection of these resources is assisted by
the growth in cultural tourism. The aim here is to
preserve historic places and monuments by correctly planing
their use. It is important, however, that a common definition
of what constitutes cultural tourism is decided on so that this
segment can be accurately monitored and its importance
assessed

Figure A1. Prospects for sustainable tourism development

Growth in air travel Airport capacities/restrictions?

Competitive pressures More airline mergers/

acquisitions?

More regulation and control?

Growth of independent travel; growth of cultural/heritage

tourism; growth of long-haul and short breaks

Customized products from tour operators?

Travel/tourism infrastructures: more hotels in developing nations?

Labour shortages; better training, careers and pay?

Sustainable development?

Jorge Costa is Research Associate, CHART International, Department of Management Studies, University of Surrey, UK.
 This article has been cited by:

1. Hussein Ahmad Al‐Rimmawi. 2003. Palestinian tourism: a period of transition. International Journal of Contemporary
Hospitality Management 15:2, 76-85. [Abstract] [Full Text] [PDF]
2. N. D’Annunzio‐Green, G.A. Maxwell, S. Watson. 2000. Human resource issues in international hospitality, travel and
tourism: a snapshot. International Journal of Contemporary Hospitality Management 12:3, 215-216. [Abstract] [Full Text]
[PDF]
3. Claire Dennet't, ELIZABETH M. INESON, GRAHAM J. STONE, MARK COLGATE. 2000. Pre-bookable Services
in the Chartered Airline Industry: Increasing Satisfaction through Differentiation. The Service Industries Journal 20, 82-94.
[CrossRef]
4. Adam Wu, Jorge Costa, Richard Teare. 1998. Using environmental scanning for business expansion into China and Eastern
Europe: the case of transnational hotel companies. International Journal of Contemporary Hospitality Management 10:7,
257-263. [Abstract] [Full Text] [PDF]
Downloaded by Can Tho University, Dai Le At 20:25 02 October 2015 (PT)