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INTRODUCTION TO TOURISM AND

HOSPITALITY IN BC

CONTENTS

Main Body

Chapter 1. History
and Overview

Learning Objectives

Specify the commonly understood

definitions of tourism and tourist

Classify tourism into distinct industry

groups using North American Indus-
try Classification Standards (NAICS)

Define hospitality

Gain knowledge about the origins of

the tourism industry

Provide an overview of the econom-

ic, social, and environmental impacts
of tourism worldwide

Understand the history of tourism

development in Canada and British
Columbia

Analyze the value of tourism in

Canada and British Columbia

Identify key industry associations and

understand their mandates

What Is Tourism?

Before engaging in a study of tourism, let’s have

a closer look at what this term means.

Definition of Tourism

There are a number of ways tourism can be de-

fined, and for this reason, the United Nations
World Tourism Organization (UNWTO) em-
barked on a project from 2005 to 2007 to create a
common glossary of terms for tourism. It defines
tourism as follows:

Tourism is a social, cultural and economic phe-

nomenon which entails the movement of people
to countries or places outside their usual envi-
ronment for personal or business/professional
purposes. These people are called visitors
(which may be either tourists or excursionists;
residents or non-residents) and tourism has to
do with their activities, some of which imply
tourism expenditure (United Nations World
Tourism Organization, 2008).

Using this definition, we can see that tourism is

the movement of people for a number of purpos-
es (whether business or pleasure).

Definition of Tourist

Building on the definition of tourism, a common-

ly accepted description of a tourist is “someone
who travels at least 80 km from his or her home
for at least 24 hours, for business or leisure or
other reasons” (LinkBC, 2008, p.8). The United
Nations World Tourism Organization (1995)
helps us break down this definition further by
stating tourists can be:

1. Domestic (residents of a given country trav-

elling only within that country)

2. Inbound (non-residents travelling in a given

country)

3. Outbound (residents of one country travel-

ling in another country)

The scope of tourism, therefore, is broad and en-

compasses a number of activities.

Spotlight On: United Nations

World Tourism Organization
(UNWTO)

UNWTO is the United Nations

agency responsible “for the promo-
tion of responsible, sustainable and
universally accessible tourism”
(UNWTO, 2014b). Its membership
includes 156 countries and over 400
affiliates such as private companies
and non-governmental organizations.
It promotes tourism as a way of de-
veloping communities while encour-
aging ethical behaviour to mitigate
negative impacts. For more informa-
tion, visit the UNWTO website:
http://www2.unwto.org/.

NAICS: The North American Industry

Classification System

Given the sheer size of the tourism industry, it

can be helpful to break it down into broad indus-
try groups using a common classification system.
The North American Industry Classification
System (NAICS) was jointly created by the
Canadian, US, and Mexican governments to en-
sure common analysis across all three countries
(British Columbia Ministry of Jobs, Tourism and
Skills Training, 2013a). The tourism-relat-
ed groupings created using NAICS are (in alpha-
betical order):

1. Accommodation

2. Food and beverage services (commonly

known as “F & B”)

3. Recreation and entertainment

4. Transportation

5. Travel services

These industry groups are based on the similarity

of the “labour processes and inputs” used for
each (Government of Canada, 2013). For in-
stance, the types of employees and resources re-
quired to run an accommodation business —
whether it be a hotel, motel, or even a camp-
ground — are quite similar. All these businesses
need staff to check in guests, provide housekeep-
ing, employ maintenance workers, and provide a
place for people to sleep. As such, they can be
grouped together under the heading of accommo-
dation. The same is true of the other four group-
ings, and the rest of this text explores these in-
dustry groups, and other aspects of tourism, in
more detail.

Figure 1.1 Welcoming storefronts in Nelson

The Hospitality Industry

When looking at tourism it’s important to consid-

er the term hospitality. Some define hospitality
as “the business of helping people to feel wel-
come and relaxed and to enjoy themselves” (Dis-
cover Hospitality, 2015, ¶ 3). Simply put, the
hospitality industry is the combination of the ac-
commodation and food and beverage groupings,
collectively making up the largest segment of
the industry. You’ll learn more about accommo-
dations and F & B in Chapter 3 and Chapter 4,
respectively.

Before we seek to understand the five industry

groupings in more detail, it’s important to have
an overview of the history and impacts of
tourism to date.

Global Overview

Origins of Tourism

Travel for leisure purposes has evolved from an

experience reserved for very few people into
something enjoyed by many. Historically, the
ability to travel was reserved for royalty and the
upper classes. From ancient Roman times
through to the 17th century, young men of high
standing were encouraged to travel through Eu-
rope on a “grand tour” (Chaney, 2000). Through
the Middle Ages, many societies encouraged the
practice of religious pilgrimage, as reflected in
Chaucer’s Canterbury Tales and other literature.

The word hospitality predates the use of the word

tourism, and first appeared in the 14th century. It
is derived from the Latin hospes, which encom-
passes the words guest, host, and foreigner (Lat-
dict, 2014). The word tourist appeared in print
much later, in 1772 (Griffiths and Griffiths,
1772). William Theobald suggests that the
word tour comes from Greek and Latin words for
circle and turn, and that tourism and tourist rep-
resent the activities of circling away from home,
and then returning (Theobald, 1998).

Tourism Becomes Business

Cox & Kings, the first known travel agency, was

founded in 1758 when Richard Cox became offi-
cial travel agent of the British Royal Armed
Forces (Cox & Kings, 2014). Almost 100 years
later, in June 1841, Thomas Cook opened the
first leisure travel agency, designed to help
Britons improve their lives by seeing the world
and participating in the temperance movement.
In 1845, he ran his first commercial packaged
tour, complete with cost-effective railway tickets
and a printed guide (Thomas Cook, 2014).

The continued popularity of rail travel and

the emergence of the automobile presented addi-
tional milestones in the development of tourism.
In fact, a long journey taken by Karl Benz’s wife
in 1886 served to kick off interest in auto travel
and helped to publicize his budding car company,
which would one day become Mercedes Benz
(Auer, 2006). We take a closer look at the impor-
tance of car travel later this chapter, and of trans-
portation to the tourism industry in Chapter 2.

Fast forward to 1952 with the first commercial

air flights from London, England, to Johannes-
burg, South Africa, and Colombo, Sri Lan-
ka (Flightglobal, 2002) and the dawn of the jet
age, which many herald as the start of the mod-
ern tourism industry. The 1950s also saw the cre-
ation of Club Méditérannée (Gyr, 2010) and sim-
ilar club holiday destinations, the precursor of
today’s all-inclusive resorts.

The decade that followed is considered to have

been a significant period in tourism development,
as more travel companies came onto the scene,
increasing competition for customers and moving
toward “mass tourism, introducing new destina-
tions and modes of holidaying” (Gyr, 2010,
p. 32).

Industry growth has been interrupted at several

key points in history, including World War I, the
Great Depression, and World War II. At the start
of this century, global events thrust international
travel into decline including the September 11,
2001, attack on the World Trade Center in New
York City (known as 9/11), the war in Iraq, per-
ceived threat of future terrorist attacks, and
health scares including SARS, BSE (bovine
spongiform encephalopathy), and West Nile virus
(Government of Canada, 2006).

At the same time, the industry began a massive

technological shift as increased internet use revo-
lutionized travel services. Through the 2000s,
online travel bookings grew exponentially, and
by 2014 global leader Expedia had expanded to
include brands such as Hotels.com, the Hotwire
Group, trivago, and Expedia CruiseShip Centers,
earning revenues of over $4.7 million (Expedia
Inc., 2013).

A more in-depth exploration of the impact of the

online marketplace, and other trends in global
tourism, is provided in Chapter 14. But as you
can already see, the impacts of the global tourism
industry today are impressive and far reaching.
Let’s have a closer look at some of these out-
comes.

Tourism Impacts

Tourism impacts can be grouped into three main

categories: economic, social, and environmental.
These impacts are analyzed using data gathered
by businesses, governments, and industry organi-
zations.

Economic Impacts

According to a UNWTO report, in 2011, “in-

ternational tourism receipts exceeded US$1 tril-
lion for the first time” (UNWTO, 2012).
UNWTO Secretary-General Taleb Rifai stated
this excess of $1 trillion was especially important
news given the global economic crisis of 2008,
as tourism could help rebuild still-struggling
economies, because it is a key export and labour
intensive (UNWTO, 2012).

Figure 1.2 Students visiting Vancouver for a

conference

Tourism around the world is now worth over $1

trillion annually, and it’s a growing industry al-
most everywhere. Regions with the highest
growth in terms of tourism dollars earned are
the Americas, Europe, Asia and the Pacif-
ic, and Africa. Only the Middle East posted nega-
tive growth at the time of the report (UNWTO,
2012).

While North and South America are growing the

fastest, Europe continues to lead the way in terms
of overall percentage of dollars
earned (UNWTO, 2012):

Europe (45%)

Asia and the Pacific (28%)

North and South America (19%)

Middle East (4%)

Global industry growth and high receipts are ex-

pected to continue. In its August 2014 expendi-
ture barometer, the UNWTO found worldwide
visitation had increased by 22 million peo-
ple in the first half of the year over the previous
year, to reach 517 million visits (UNWTO,
2014a). As well, the UNWTO’s Tourism 2020
Vision predicts that international arrivals
will reach nearly 1.6 billion by 2020. Read more
about the Tourism 2020 Vision: http://www.e-
unwto.org/doi/abs/10.18111/9789284403394

Social Impacts

Figure 1.3 First Nations art on display at

Vancouver Island University

In addition to the economic benefits of tourism

development, positive social impacts include an
increase in amenities (e.g., parks, recreation fa-
cilities), investment in arts and culture, celebra-
tion of First Nations people, and community
pride. When developed conscientiously, tourism
can, and does, contribute to a positive quality of
life for residents.

However, as identified by the United Nations

Environment Programme (UNEP, 2003a), nega-
tive social impacts of tourism can include:

Change or loss of indigenous identity and

values

Culture clashes

Physical causes of social stress (increased

demand for resources)

Ethical issues (such as an increase in sex

tourism or the exploitation of child workers)

Some of these issues are explored in further de-

tail in Chapter 12, which examines the develop-
ment of Aboriginal tourism in British Columbia.

Environmental Impacts

Tourism relies on, and greatly impacts, the natur-

al environment in which it operates. Even
though many areas of the world are conserved in
the form of parks and protected areas, tourism
development can have severe negative impacts.
According to UNEP (2003b), these can include:

Depletion of natural resources (water,

forests, etc.)

Pollution (air pollution, noise, sewage,

waste and littering)

Physical impacts (construction activities,

marina development, trampling, loss of bio-
diversity)

The environmental impacts of tourism can reach

outside local areas and have an effect on the
global ecosystem. One example is increased air
travel, which is a major contributor to climate
change. Chapter 10 looks at the environmental
impacts of tourism in more detail.

Whether positive or negative, tourism is a force

for change around the world, and the industry is
transforming at a staggering rate. But before we
delve deeper into our understanding of tourism,
let’s take a look at the development of the sector
in our own backyard.

Canada Overview

Origins of Tourism in Canada

Tourism has long been a source of economic de-

velopment for our country. Some argue that as
early as 1534 the explorers of the day, such
as Jacques Cartier, were Canada’s first tourists
(Dawson, 2004), but most agree the major devel-
opments in Canada’s tourism industry followed
milestones in the transportation sector: by rail, by
car, and eventually, in the skies.

Railway Travel: The Ties That Bind

Figure 1.4 Canadian Pacific 4-4-0 A-2-m No 136

The dawn of the railway age in Canada came

midway through the 19th century. The first rail-
way was launched in 1836 (Library and Archives
Canada, n.d.), and by the onset of World War I in
1914, four railways dominated the Canadian
landscape: Canadian Pacific Railway (CPR),
Canadian Northern Railway (CNOR), the Grand
Trunk Railway (GTR), and the Grand Trunk Pa-
cific (GTP). Unfortunately, their rapid expansion
soon brought the last three into near bankruptcy
(Library and Archives Canada, n.d.).

In 1923, these three rail companies were amalga-

mated into the Canadian National Railway
(CNR), and together with the CPR, these trans-
continentals dominated the Canadian travel land-
scape until other forms of transportation became
more popular. In 1978, with declining interest in
rail travel, the CPR and CNR were forced to
combine their passenger services to form VIA
Rail (Library and Archives Canada, n.d.).

The Rise of the Automobile

The rising popularity of car travel was partially

to blame for the decline in rail travel, although it
took time to develop. When the first cross-coun-
try road trip took place in 1912, there were
only 16 kilometres of paved road across Cana-
da (MacEachern, 2012). Cars were initially con-
sidered a nuisance, and the National Parks
Branch banned entry to automobiles, but later
slowly began to embrace them. By the 1930s,
some parks, such as Cape Breton Highlands Na-
tional Park, were actually created to provide visi-
tors with scenic drives (MacEachern, 2012).

It would take decades before a coast-to-coast

highway was created, with the Trans-Canada
Highway officially opening in Revelstoke in
1962. When it was fully completed in 1970, it
was the longest national highway in the world,
spanning one-fifth of the globe (MacEach-
ern, 2012).

Early Tourism Promotion

As early as 1892, enterprising Canadians like the

Brewsters became the country’s first tour opera-
tors, leading guests through areas such as Banff
National Park (Brewster Travel Canada, 2014).
Communities across Canada developed their own
marketing strategies as transportation develop-
ment took hold. For instance, the town of
Maisonneuve in Quebec launched a campaign
from 1907 to 1915 calling itself “Le Pittsburg du
Canada.” And by 1935 Quebec was spending
$250,000 promoting tourism, with Ontario, New
Brunswick, and Nova Scotia also enjoying estab-
lished provincial tourism bureaus (Dawson,
2004).

National Airlines

Our national airline, Air Canada, was formed in

1937 as Trans-Canada Air Lines. In many ways,
Air Canada was a world leader in passenger avia-
tion, introducing the world’s first computerized
reservations system in 1963 (Globe and Mail,
2014). Through the 1950s and 1960s, re-
duced airfares saw increased mass travel. Com-
petitors including Canadian Pacific (which be-
came Canadian Airlines in 1987) began to launch
international flights during this time to Australia,
Previous: Introduction
Japan, and South America (Canadian Geograph-
ic, 2000). By 2000,Next:
Air Chapter
Canada2.was facing finan-
Transportation