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The Traveling

PART
1
Public and Tourism
Promoters
Chapters
1 Introducing the World’s Largest Industry, Tourism

2 Marketing to the Traveling Public

3 Delivering Quality Tourism Services

4 Bringing Travelers and Tourism Service Suppliers


Together

5 Capturing Technology’s Competitive Advantages

EXTERNAL
ENVIRONMENT

Society/Culture Economy
TOURISM SERVICE
SUPPLIERS

TOURISM
PROMOTERS Accommo-
dations
Destinations
Travel
Tour agents
operators
TRAVELERS
Incentive
and
Tourist Meeting
boards planners
Attractions & Food &
entertainment Direct beverages
marketing

Transportation

Environment Politics

Technology

An integrated model of tourism.

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CHAPTER 1
Introducing the World’s Largest
Industry, Tourism
Travel is fatal to prejudice, bigotry, and narrow-mindedness.
—Mark Twain

Learning Objectives
After you have read this chapter, you should be able to:
1. Understand and explain the basic definition of 5. Explain why tourism should be studied from mar-
tourism. keting, management, and financial perspectives.
2. Identify the major participants and forces shaping 6. Identify future challenges and opportunities fac-
the tourism industry. ing the tourism industry.
3. Explain historical factors that encouraged the 7. Discuss career prospects in the tourism industry.
development of tourism activities.
4. Explain the impact of physical, human, and
regional geography on tourism activities.

Chapter Outline
Could a Career in Tourism Be in Your Future? Maps
Introduction Reading Maps
Indexes and Locators
Services and Tourism Scales
What Is Tourism? Legends
A Tourism Model Physical Geography
Landforms and Vegetation
The History of Travel and Tourism Water
The Empire Era Climate and Seasons
The Middle Ages and the Renaissance Era Human Geography
The Grand Tour Era Regional Geography
The Mobility Era
The Modern Era Studying Tourism from Business Perspectives
Marketing
Bringing Tourism into Focus Management
Geography Describes the Traveler’s World Finance

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Chapter 1 ▸ Introducing the World’s Largest Industry, Tourism  3

Tourism’s Challenges and Opportunities Net Tour


Where Do You Fit In? Discussion Questions
Topics Covered in Each Chapter Applying the Concepts
Summary Glossary
You Decide References

Tourism is a Worldwide and Growing Phenomenon. Prasit Rodphan/Shutterstock

Could a Career in Tourism Be in Your Future?


From the day he entered the hospitality management program at Central Piedmont Commu-
nity College, Bruce Moss knew he wanted to be in the business of serving people. The twists
and turns his career took after graduating have been as varied and exciting as the industry
that became part of his life—tourism. Bruce’s career began with a bang and soon skyrock-
eted. It started with the job of assistant manager at a 177-room Ramada Inn franchise in
Charlotte, North Carolina, right after graduation. He was soon promoted to the position
of general manager at another Ramada Inn with the same company in Clearwater, Florida.
Based on his successful track record of profitable operations, he was recruited to open the
244-room Tampa Airport Hilton. The promotions and opportunities just kept coming.
Just six years after graduation, Bruce was recruited to fill the position of director
of Front Office Operations of the Innisbrook Westin Resort, a four-star, four-diamond
golf/tennis resort in Palm Harbor, Florida. After two short years, he was promoted to
vice president/resident manager of this resort complex covering 1,000 acres with over
1,200 condominium units, three championship golf courses, four restaurants, over
60,000 square feet of banquet space, and a staff of 1,000 employees.
Like almost everyone in the tourism industry, Bruce was presented with many
new and challenging opportunities on a regular basis. His next assignment found him
moving from the seashore to the mountains as he accepted a transfer to Innisbrook’s
sister property, Tamarron Resort, high in the Colorado Rockies. “Bitten by the resort
operations bug,” Bruce decided to complete a four-year degree in tourism to open up
even more opportunities. Armed with additional education and a broad base of opera-
tional experience, expanded career opportunities led him to general manager positions
at Purgatory Village in Durango, Colorado, and later in Jackson Hole, Wyoming.
His most recent career move finds Bruce as a business owner, serving all segments
of the tourism industry. After 25 years of serving the traveling public, Bruce and his wife

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4  Part 1 ▸ The Traveling Public and Tourism Promoters

Lori purchased a central reservations business, which books lodging, destination activities,
and vacation packages for individuals and groups traveling to the southwest Colorado
region. Achieving success in this multimillion-dollar tourism operation hasn’t happened
by accident. Intensive employee training focused on the highest quality customer service
and constant technology investments (over $100,000 in just one year) keep Gateway Res-
ervations (http://www.gatewayreservations.com) on the cutting edge of service delivery.
As you approach the study of tourism, let your imagination soar, learning all you can
to prepare yourself to grow as your career advances. Like Bruce, who earned two degrees in
hospitality/tourism management and continues to maintain his Certified Hotel Administra-
tor (CHA) designation, never stop learning. The opportunities that await you are endless.

Introduction
Welcome to the study of a dynamic group of industries that have developed to serve
the needs of travelers worldwide—tourism! Tourism is the business of hospitality and
travel. Whether we are travelers or we are serving travelers’ needs, this exciting and
demanding group of visitor services industries touches all of our lives. In this book,
you will explore the many and varied segments of this multifaceted industry. As you
learn more about tourism, begin thinking about the future challenges and opportuni-
ties that lie ahead for all of these industries and how they may influence your life.

Services and Tourism


Services and tourism go hand in hand. You will learn more about services in Chapter 3.
However, as we begin our study of tourism, it is important to know that these activities
make a significant economic impact on almost every nation in the world! Services are
growing at a faster rate than all agricultural and manufacturing businesses combined.
In fact, tourism-related businesses are the leading producers of new jobs worldwide.
Tourism has developed into a truly worldwide activity that knows no political,
ideological, geographic, or cultural boundaries. For a long time, tourism was disparate
and fragmented, but as this industry has continued to grow and mature, a sense of pro-
fessional identity has emerged. It has formed lobbying groups such as the World Travel
and Tourism Council (WCTT), which includes executives of airlines, hotel chains, and
travel agents among its members and concentrates on making the case for tourism’s
global importance and economic value. The future prospects for tourism are brighter
than ever as people continue to travel for work or pleasure. “Given its historical per-
formance as a luxury good during expansions and a necessity during recessions, travel
and tourism’s future economic prospects look quite bright”(p. 51).1 As we will see
later, the growth and popularity of tourism activities have not been accidental. Growth
projections indicate that tourism will support almost 350 million jobs worldwide by
2025. This will be an increase of over 70 million jobs when compared to 2015.2
Tourism has become more than just another industry; it has developed into an
important part of the economic fabric of many communities, regions, and countries.
Tourism activities have historically demonstrated a general upward trend in numbers
of participants and revenues. Tourism is one of the few industries that is sensitive
to economic ups and downs, and yet at the same time rebounds quickly from any
negative economic conditions or other environmental impacts. Even in the face of a
dramatic credit crunch, an economic slump, and political uncertainty, the impact on
international tourism was not as severe as the downturn experienced in foreign trade
and industrial production.3 “Over the past six decades, tourism has experienced con-
tinued expansion and diversification, to become one of the largest and fastest-growing
economic sectors in the world” (p. 2).4

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Chapter 1 ▸ Introducing the World’s Largest Industry, Tourism  5

What Is Tourism?
As tourism-related activities have grown and changed, many different definitions and
ways of classifying the industry have emerged. Use of the term tourism has evolved
as attempts have been made to place a title on a difficult-to-define group of naturally
related service activities and participants. As we embark on our study of tourism, it is
helpful to begin with a common definition that has been accepted for decades: “the
temporary movement of people to destinations outside their normal places of work
and residence, the activities undertaken during their stay in those destinations, and the
facilities created to cater to their needs.”5
As our definition shows, tourism includes a wide array of people, activities, and
facilities, and most people would agree that it is a unique grouping of industries that
are tied together by a common denominator—the traveling public.
Can you describe tourism in your own words? Take a moment to think about this
question. You might find it easy to answer this question in general terms, but more diffi-
cult to answer if you were asked to provide specific details. In fact, you might find yourself
facing a task similar to the one depicted in Figure 1.1. Tourism is much like the elephant:
diverse and sometimes hard to describe, but, just like the elephant, too big to be ignored.
Specific segments of tourism, such as air transportation, theme parks, eating
and drinking establishments, lodging and accommodations, and museums, have
their own industrial classification codes in every industrialized country. However,
the overall grouping of related activities and organizations that come together to
create the more comprehensive tourism industry does not have its own distinctive
industry code. To address this concern organizations such as the WTTC and the
United Nations World Tourism Organization (UNWTO) have spearheaded efforts
to highlight the breadth and economic impact of tourism. Even though tourism
may not be classified as a distinct industry, it is generally agreed that “ ‘[t]ourism’
appears to be becoming an acceptable term to singularly describe the activity of
people taking trips away from home and the industry which has developed in
response to this activity.”6

FIGURE 1.1
The blind men and tourism.

Food and beverage

Destinations

Transportation
Accommodations
Attractions and
Travel agencies
entertainment

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6  Part 1 ▸ The Traveling Public and Tourism Promoters

Table 1.1 Components of the Tourism Industry


Accommodation Services Food and Beverage Services
Railway Passenger Transport Services Road Passenger Transport Services
Water Passenger Transport Services Air Passenger Transport Services
Transport Equipment Rental Services Travel Agencies and Other Reservation
Services
Cultural Services Sport and Recreational Services
Country-Specific Tourism Goods Country-Specific Tourism Services

Based on: International Recommendation for Tourism Statistics 2008, UNWTO, 42.

Both the WTTC and UNWTO track and report tourism statistics to highlight the
size, scope, and impact of tourism-related businesses. Comparable data from around the
world is made possible through the use of a common definition of tourists or visitors.
As defined by UNWTO, tourism is a social, cultural, and economic phenomenon, which
entails the movement of people to countries and places outside their usual environment
for personal or business/professional purposes. These people are called visitors . . . and
tourism has to do with their activities, some of which involve tourism expenditure.7 The
U.S. Travel Association has taken the commonly agreed upon definition of tourism and
restricted its scope by defining these activities as trips away from home of 50 miles or
more, one way, or trips that include an overnight stay in paid accommodations.8
By using a common umbrella definition, data can be collected and analyzed for
each of the industry subgroupings shown in Table 1.1 in Tourism Satellite Accounts.
Even as the debate continues for a common definition, it has been suggested that
the definition be expanded to include the concept of displacement. This inclusion would
expand the definition to capture, “the decision of tourists to leave the familiar behind in
order to participate in something new” (p. 122).9 Because definitions conjure up different
meanings and can be used for different purposes, some critics have suggested using a term
other than tourism to describe the industry. One of these suggestions has been to use a
more inclusive and descriptive term such as “visitor-service industry.”10 For convenience
and ease of understanding, however, we will refer to tourism as an industry in this book.

A Tourism Model
In an attempt to overcome some of the problems encountered in describing tourism,
the model presented in Figure 1.2 was developed to highlight important participants
and forces that shape the tourism industry. The model, like a photograph, provides a
picture that begins to capture the dynamic and interrelated nature of tourism activities.
This model can be used as a reference throughout the entire text. Although many of
the terms in our tourism model may not be familiar at this time, you will be learning
more about each one and its importance in later chapters.
As you study our tourism model, notice its open nature and how each of the seg-
ments is related to the others. Let’s begin our study of tourism by looking at travelers
(tourists), who serve as the focal point for all tourism activities and form the center
of our model. Radiating from this focal point are three large bands containing several
interdependent groups of tourism participants and organizations.
Individual tourists may deal directly with any of these tourism service suppliers,
but they often rely on the professional services provided by tourism promoters shown
in the first band of our model. Tourism promoters, such as travel agencies and tourist

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Chapter 1 ▸ Introducing the World’s Largest Industry, Tourism  7

FIGURE 1.2
An integrated model of tourism. EXTERNAL
ENVIRONMENT

Society/Culture Economy
TOURISM SERVICE
SUPPLIERS

TOURISM
PROMOTERS Accommo-
dations
Destinations
Travel
Tour agents
operators
TRAVELERS
Incentive
and
Tourist Meeting
boards planners
Attractions & Food &
entertainment Direct beverages
marketing

Transportation

Environment Politics

Technology

boards, provide information and other marketing services. Moving to the next band
of our model, we see key tourism suppliers who provide transportation, accommoda-
tions, and other services required by travelers.
Tourism suppliers may provide these services independently; they may compete
with each other; and, at times, they may work together. For example, airline, bus, rail-
road, cruise ship, and car rental companies may compete individually for a traveler’s
business. However, they may also team up to provide cooperative packages such as
fly–ride, fly–cruise, and fly–drive alternatives. Or, as airlines have discovered, they
must establish strategic alliances with many other carriers to provide seamless travel
across states, nations, and continents. Hotels and resorts may also compete against
each other for the same traveler’s patronage yet cooperate with transportation provid-
ers to attract tourists to a specific location. Service providers representing all segments
of the tourism industry may often work together to develop promotional packages
designed to attract tourists to destinations.
How closely these individuals and organizations work together is ultimately influ-
enced by the forces shaping the face of tourism activities. As our model shows, the tour-
ism industry does not operate in a vacuum. All of the participants, either individually
or as a group, are constantly responding to a variety of social/cultural, political, envi-
ronmental, economic, and technological forces. These forces may range from subtle
changes, which are noticeable only after many years, to more dramatic changes, which
have immediate and visible impacts. Examples of these forces can be found all around us.
Gradual changes may be noticed in destinations that were once fashionable but
eventually faded in popularity, such as Niagara Falls on the Canadian/U.S. border and
Brighton in England. Similar shifts can also be seen in transportation. Steamship pas-
sage across the North Atlantic was eclipsed by the faster and more efficient airplane,
which opened new horizons for travelers. Immediate impacts can be seen in sudden
shifts brought about by currency devaluations, wars, fuel shortages, natural disasters,
and economic conditions.11 Rapid adoption of new technologies such as the Internet
can have immediate and far-reaching impacts on tourism activities and service provid-
ers. A country that was once avoided may suddenly become a popular tourism destina-
tion because it is more affordable or accessible. Conversely, a once-popular destination
may be avoided because of a recent natural disaster or political upheaval.

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8  Part 1 ▸ The Traveling Public and Tourism Promoters

The number of travelers from and to nations also varies dramatically due to political
and economic changes. Through the year 2020, Europe will continue to see the largest
number of tourist arrivals followed by East Asia and the Pacific and then the Americas.
At the country level, China will be the largest tourist receiving country by 2020, surpass-
ing France, and the United States.12 Now that China has developed a sizable middle class
due to its economic growth, it has become the biggest Asian nation in terms of outbound
travelers and a domestic market that is growing 15% to 20% a year.6,13
Let’s look at how our model might work. Suppose you (a tourist) want to visit a
sunny beach or a snow-covered mountain. You might begin planning your trip by brows-
ing the websites of different airlines, condominiums, hotels, and/or resorts (tourism
service suppliers) searching for possible flight schedules and accommodation options.
You could simply call a travel agent (tourism promoter) who would search out the best
alternatives to meet your needs, rather than spending time and money contacting each
supplier. Another option would be taking a “virtual trip” to your desired destination by
browsing offerings on the Internet. Finally, you could contact your preferred destinations’
local chambers of commerce or visitors’ bureaus to learn more about their offerings.
As you progress through this book, we will focus our attention on specific features
of our model, learning more about each component and how it interacts with other
components of the tourism industry. We will begin our journey into the study of tour-
ism by looking back in time to discover the origins of these activities and the founda-
tions they laid for tourism as we know it today.

The History of Travel and Tourism


Table 1.2 lists some of the milestones in the development of tourism. Long before the
invention of the wheel, travel occurred for a variety of reasons. In the beginning, it was
simple. As seasons changed and animals migrated, people traveled to survive. Because
these early travelers moved on foot, they were confined to fairly small geographic areas.
Travel may have remained a localized experience, but people by nature are curious. It is
easy to imagine these early travelers climbing a mountain or crossing a river to satisfy
their own sense of adventure and curiosity as they sought a glimpse of the unknown.
We can only guess at the wonder and amazement of early travelers as they made
each new discovery. However, there is a rich history of people and cultures that forms
the foundation of tourism. History provides important insights into the reasons for
travel and the eventual development of tourism. Based on early records, we know that
many cultures and nations moved great armies and navies to conquer and control
resources and trade routes. Although military forces often traveled great distances,
it was probably not until the emergence of the Egyptian, Eastern Mediterranean, and
Roman Empires that travel began to evolve into tourism as we know it today.
Early recorded history provides a glimpse into ancient tourism activities. The Phoe-
nicians, like many travelers, were interested in travel because of a sense of curiosity and
discovery as well as a means of establishing trade routes. Although written records are
scarce, other peoples such as the Mayans on the Gulf Coast of what is now Mexico and
the Shang Dynasty in what is now present-day China probably traveled for many of the
same reasons as the Phoenicians. Evidence of their travels can be found in the artifacts
they collected during their journeys to faraway places. One thing we know for sure is that
as civilizations became established and spread geographically, travel became a necessity.

The Empire Era


The point at which simple travel evolved into the more complex activities of tourism is
hard to identify. However, tourism as an industry probably began to develop during the

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Chapter 1 ▸ Introducing the World’s Largest Industry, Tourism  9

Table 1.2 Milestones in the Development of Tourism


Prerecorded history Travel begins to occur out of a sense of adventure and curiosity.
4850 b.c.–715 b.c. Egyptians travel to centralized government locations.
1760 b.c.–1027 b.c. Shang Dynasty establishes trade routes to distant locations throughout the Far East.
1100 b.c.–800 b.c. Phoenicians develop large sailing fleets for trade and travel throughout their empire.
900 b.c.–200 b.c. Greeks develop common language and currency, and traveler services emerge as city-
states become destinations.
500 b.c.–a.d. 300 Romans improve roads, the legal system, and inns to further travel for commerce,
adventure, and pleasure.
a.d. 300–a.d. 900 Mayans establish trade and travel routes in parts of Central and North America.
a.d. 1096–a.d. 1295 European travel on failed religious crusades to retake the Holy Lands from Muslim control
introduces these military forces to new places and cultures.
a.d. 1275–a.d. 1295 Marco Polo’s travels throughout the Far East begin to heighten interest in travel and trade.
14th–16th centuries Trade routes develop as commercial activities grow and merchants venture into new territories.
a.d. 1613–a.d. 1785 Grand Tour Era makes travel a status symbol for wealthy individuals seeking to experience
cultures of the civilized world.
18th–19th centuries Industrial Revolution gives rise to technological advances, making travel and trade more
efficient and expanding markets; increasing personal incomes make travel both a
business necessity and a leisure activity.
1841 Thomas Cook organizes first group tour in England.
1903 Wright Brothers usher in era of flight with the first successful aircraft flight.
1913 Westinghouse Corporation institutes paid vacations for its workers.
1914 Henry Ford begins mass production of the Model T.
1919 First scheduled airline passenger flight debuts between London and Paris.
1945 World War II ends and ushers in new era of prosperity, giving rise to millions of people with
the time, money, and interest to travel for pleasure and business.
1950 Diners Club introduces the first credit card.
1952 Jet passenger service is inaugurated between London and Johannesburg, South Africa.
1950s Rapid expansion of hotel and motel chains in the United States via franchise agreements.
1978 Competition on routes and fares begins with signing of Airline Deregulation Act.
1978 American Airlines expands access to electronic reservation system, SABRE, to travel agencies.
1984 The State Council of China approves the organization of tours to Hong Kong and Macao
for mainland residents visiting relatives, which was the prelude to the outbound tourism
of Chinese citizens.
1996 Expedia is founded as a division of Microsoft.
2000 TripAdvisor is founded.
2001 Dennis Tito launches the advent of space tourism as he pays $20 million for an eight-day
vacation aboard the International Space Station.
2001 Transportation Security Administration (TSA) in the United States is created to ensure
airline passenger safety in the wake of the September 11th terrorist attacks on the World
Trade Center in New York City and the Pentagon in Washington, D.C.
2002 The euro currency is introduced, signaling liberalization of travel among member nations of
the European Union.
2004 Mark Zuckerberg, a Harvard student, launches a social networking service Facebook.com.
2007 Air Bed and Breakfast (AirBnB) launched, signaling a wave of new services such as Uber
and an expanding sharing economy in tourism services.
2011 Google provides an online flight-booking service, Google Flights, to public.

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10  Part 1 ▸ The Traveling Public and Tourism Promoters

Empire Era, which stretched from the time of the Egyptians to the Greeks and finally
came to an end with the fall of the Roman Empire. During this time, people began
traveling in large numbers for governmental, commercial, educational, and religious
purposes out of both necessity and pleasure. The Egyptian Kingdoms (4850–715 b.c.)
were the first known civilization to have consolidated governmental functions at cen-
tralized locations. Travel to these locations by boat was particularly easy because trav-
elers could use the Nile River, which flowed northward but was constantly brushed by
southward breezes. Because oars were not needed, travel in either direction was rela-
tively effortless. Boats could go north with the current or south with sails.
As travel became commonplace, basic necessities such as food and lodging had
to be provided. Several factors combined to encourage travel during the height of the
Egyptian, Greek, and Roman Empires. Large numbers of travelers began to seek out
enjoyable experiences in new locations. The most notable group of these travelers,
because of their numbers, was the Greeks.
The Greek Empire (900–200 b.c.) promoted the use of a common language
throughout much of the Mediterranean region, and the money of some Greek city-
states became accepted as a common currency of exchange. As centers of governmen-
tal activities, these city-states became attractions in themselves. They offered visitors a
wide variety of opportunities to enjoy themselves while away from home. Shopping,
eating, drinking, gaming, and watching spectator sports and theatrical performances
are just a few of the many activities that grew out of travel and evolved into the more
encompassing aspects of tourism.
The growth of the Roman Empire (500 b.c.–a.d. 300) fostered expanded tourism
opportunities for both middle-class and wealthy citizens. Good roads (many of which
were built to connect the city of Rome to outlying areas in case of revolt) and water
routes made travel easy. As these roads were developed, so were inns, which were
located approximately 30 miles apart, making for a day’s journey. Fresh horses could
be hired at the inns and at more frequent relay stations. With effort, people could
travel 125 miles a day on horseback, knowing they would have a place to eat and sleep
at the end of the day. These roads, which connected Rome with such places as Gaul,
Britain, Spain, and Greece, eventually extended into a 50,000-mile system. The most
famous road was the Appian Way, joining Rome with the “heel” of Italy.
Many of the hassles of travel to distant places were removed because Roman cur-
rency was universally accepted and Greek and Latin were common languages. In addi-
tion, a common legal system provided protection and peace of mind, allowing people
to travel farther away from home for commerce, adventure, and pleasure. Just like the
Greek city-states, cities in the Roman Empire became destination attractions or way-
side stops along the way to a traveler’s final destination.
Has this brief glimpse into ancient history taught us anything of use today? The
answer is yes. Even today, tourism activities continue to flourish where individuals have
free time; travel is easy and safe; there are easily exchangeable currencies; common lan-
guages are spoken; and established legal systems create a perception of personal safety.
The absence of any of these factors can dampen people’s desire to travel and enjoy
tourism-related activities, as can be seen in the demise of travel during the Middle Ages.

The Middle Ages and the Renaissance Era


Travel almost disappeared during the Middle Ages (5th–14th centuries a.d.). As the
dominance of the Roman Empire crumbled, travel became dangerous and sporadic.
The feudal system that eventually replaced Roman rule resulted in many different
autonomous domains. This breakdown in a previously organized and controlled soci-
ety resulted in the fragmentation of transportation systems, currencies, and languages,
making travel a difficult and sometimes dangerous experience.

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Chapter 1 ▸ Introducing the World’s Largest Industry, Tourism  11

FIGURE 1.3
Venice
Marco Polo’s travel route
from his home in Venice, Constantinople Taitu
Italy, to China during the (Beijing)
13th century. Black Sea A S I A

Caspian
Sea
Acre
PERSIA
C H I N A

Hormuz

EAS
Persian INDIA BURMA

CHINA S
Gulf Bay
of
Arabian Bengal
AFRICA Sea
CEYLON
Indian Ocean SUMATRA

As the Roman Catholic Church gained power and influence, people began to talk
of Crusades to retake the Holy Land. There were nine of these Crusades (a.d. 1096–
1291), but each failed. In 1291, Acre, the last Christian stronghold, was retaken by the
Muslims, bringing the Crusades to an end. Although conquest and war were the driv-
ing forces behind the Crusades, the eventual result was the desire of people to venture
away from their homes to see new places and experience different civilizations.
After the Crusades, merchants such as Marco Polo traveled to places well beyond the
territories visited by the Crusaders (see Figure 1.3). Reports of Polo’s travels and adven-
tures (1275–1295) across the Middle East and into China continued to heighten interest in
travel and trade. The rebirth in travel emerged slowly during the Renaissance (14th–16th
centuries). Merchants began to venture farther from their villages as the Church and kings
and queens brought larger geographic areas under their control. Trade routes slowly began
to reopen as commercial activities grew and merchants ventured into new territories.
The idea of traveling for the sake of experiences and learning can probably be attributed
to the first recorded “tourist,” Cyriacus of Ancona. His journeys took him around the
Mediterranean Sea in a quest to learn more about and experience Greek and Roman His-
tory.14 The desire to learn from and experience other cultures heightened awareness of the
educational benefits to be gained from travel and led to the Grand Tour Era.

The Grand Tour Era


The Grand Tour Era (1613–1785), which marked the height of luxurious travel and
tourism activities, originated with the wealthy English and soon spread and became
fashionable among other individuals who had time and money. Travel, and the
knowledge provided by these travels, became a status symbol representing the ultimate
in social and educational experiences. Grand Tour participants traveled throughout
Europe, seeking to experience the cultures of the “civilized world” and acquire knowl-
edge through the arts and sciences of the countries they visited. Their travels took
them to a variety of locations in France, Switzerland, Italy, and Germany for extended
periods of time, often stretching over many years.

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12  Part 1 ▸ The Traveling Public and Tourism Promoters

Although the desire to participate in the Grand Tour continued, the Industrial Rev-
olution, which began c. 1750, forever changed economic and social structures. Whole
nations moved from an agricultural and commercial focus to modern industrialism.
People became tied to the regimented structures and demands of factory life and the
management of business enterprises. Economic growth and technological advances led
to more efficient forms of transportation, the integration of markets across geographic
and international boundaries, and higher personal incomes for larger numbers of peo-
ple. Travel became a business necessity as well as a leisure activity, and tourism sup-
pliers rapidly developed to serve the growing needs of travelers. The days of leisurely
travel over extended periods of time to gain cultural experiences faded away as fewer
and fewer people were able to take advantage of these time-consuming opportunities.

The Mobility Era


Growing economic prosperity and the advent of leisure time as well as the availability
of affordable travel ushered in a new era in the history of tourism. People who were no
longer tied to the daily chores of farm life began to search for new ways to spend their
precious leisure time away from their jobs in offices, stores, and factories.
The Mobility Era (1800–1944) was characterized by increased travel to new and
familiar locations, both near and far. Tourism industry activities began to increase as
new roads, stagecoaches, passenger trains, and sailing ships became common sights
in the early 1800s. Great Britain and France developed extensive road and railroad
systems well before Canada and the United States. The growth and development of
roads and railroads helped to increase the availability of transportation alternatives
and reduced their costs, attracting more and more people to the idea of travel.
Thomas Cook (1808–1892) can be credited with finally bringing travel to the gen-
eral public by introducing the tour package. In 1841, he organized the first tour for a
group of 570 people to attend a temperance rally in Leicester, England. For the price of
a shilling (12 pence), his customers boarded a chartered train for the trip from Lough-
borough, complete with a picnic lunch and brass band. The immediate success of his
first venture and the demand for more assistance in making travel arrangements led
Cook into the full-time business of providing travel services.
The next major steps in the Mobility Era were the introduction of automobiles
and air travel. Although automobile technology was pioneered in Britain, France, and
Germany, it was Henry Ford’s mass production of the Model T in 1914 that brought
individual freedom to travel, opening new horizons for millions of people. Winged
travel was not far behind, and the time required to reach faraway places began to
shrink. Orville and Wilbur Wright ushered in the era of flight with their successful test
of the airplane in Kitty Hawk, North Carolina, in 1903.

The Modern Era


But the means of mobility and an interest in seeing new places were not enough. The
seeds of mass tourism were planted during the first half of the 20th century when
industrialists such as George Westinghouse created the paid vacation, believing that
annual breaks from work for employees would increase productivity. The working
and middle classes in industrialized countries thus were given the financial means and
the time to satisfy their newfound wanderlust. Indeed, at the dawn of the 21st century,
most workers in virtually all industrialized nations have several weeks of vacation time
that they may choose to spend traveling.
Mass tourism received an additional boost after World War II (which ended in
1945). During this war, millions of people throughout the world, including over 17
million Canadian and U.S. citizens, were exposed to many new, different, and even
exotic locations as they served in a variety of military assignments. Military service

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Chapter 1 ▸ Introducing the World’s Largest Industry, Tourism  13

FYI All Work and No Play


Forgo vacation time? You would have “long hours workers” take ten days U.S. federal government should man-
to be crazy, right? Well, many Amer- or less. In the United States, a Harris date paid vacation days just as many
icans and Brits work insane hours poll revealed that 51% of Americans European countries do. Believe it or
and frequently skip their allotted paid did not plan to take an annual vacation not, President William Taft (1909–1913)
vacation periods. Nearly one-quarter even though they had earned an aver- proposed that all workers should be
of self-confessed workaholics in Great age of 14 days. In contrast, workers in given two or three months off each
Britain take not a single day’s “holiday” France on average forgo only 3 of the year! Yet, the United States is still the
of the 24 days they earn during the year. 36 days they earn each year. Human only advanced economy that does not
Ten percent of workers who work over resource experts believe that vacation require any mandatory vacation time.
48 hours per week also forgo vacation time is necessary for workers to be
breaks, whereas another 22% of these productive, and they believe that the

Sources: Based on All work and no holidays (2002). Management Services, 46(2), 5; Bellows, K. (2003). Too little play time. National
Geographic Traveler, 20(8), 18; Allegretto, S., and Bivens J. (2006, July–August). Foreign Policy, 26–27. Dickey, J. Save our vacation,
(June 1, 2015) Time 180(20). Save our vacation, 44–49.

forced many people who had never traveled before to do so, and they were eager to
share their positive experiences with family and friends when they returned home.
Following the end of World War II, several additional factors helped encourage the
growth of tourism. Cars were again being produced in large numbers; gas was no lon-
ger rationed; and prosperity began to return to industrialized countries. As American
families travelled around the country in cars, the motel business began to boom. Also
in the 1950s, hotels and motels expanded quickly through the newly adopted franchis-
ing development model. The introduction of jet travel in the 1950s and its growing
popularity in the 1960s further accelerated growth in both domestic and international
travel. To grease the gears of the tourism industry even further, in 1950, the credit
card was born in the form of the Diners Club card. Credit cards provided travelers
with purchasing power anywhere in the world without the risk of carrying cash and
the hassle of currency exchange. In fact, credit cards are now the preferred form of
international buying power because travelers can charge their purchases in the local
currency. Time, money, safety, and the desire to travel combined to usher in an unpar-
alleled period of tourism growth that continues today.
The 20th-century phenomenon that came to be known as mass tourism now
includes two different groups of travelers.15 These groups are classified as organization
mass tourists who buy packaged tours and follow an itinerary prepared and organized
by tour operators. The second group is classified as individual mass tourists. These
travelers visit popular attractions independently but use tourism services that are pro-
moted through the mass media. In addition, many travelers are now seeking more than
just going to a destination to be able to say “been there, done that.” They have a desire
to become truly immersed in all the destination has to offer and when able to, give
back through educational and volunteer programs.
Well into the 21st century, the tourism industry has proven to be full of opportunities
and challenges. Widespread Internet access, opening of previously closed international bor-
ders, and increased wealth and mobility of citizens in increasingly industrialized countries
such as China and India are opening new venues for travelers and providing millions more
potential tourists. Even countries such as Vietnam and Cuba that were once off limits to
U.S. travelers are experiencing explosive tourism growth. However, the future is not com-
pletely rosy for tourism. Terrorism, political and economic instability, and health scares
have discouraged travel. Increased security efforts have also meant increased hassles and
time constraints for travelers at airports, borders, and attractions. Only time will tell what
the future holds for us, as tourism industry members and as consumers of tourism services.

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14  Part 1 ▸ The Traveling Public and Tourism Promoters

This has been just a brief journey through some of the changes that have led to the
growth of tourism. In later chapters, we will explore more of the historical details and
importance of each of these changes as well as some of the more recent factors that
have shaped the tourism industry.

Bringing Tourism into Focus


The continued growth in tourism and, more specifically, international travel may well
make tourism the world’s peace industry. “As we travel and communicate in ever-
increasing numbers, we are discovering that most people, regardless of their political
or religious orientation, race, or socioeconomic status, want a peaceful world in which
all are fed, sheltered, productive, and fulfilled.”16
Our methods of transportation have definitely improved, and the distances we can
cover in relatively short periods have greatly expanded, but the sense of curiosity and
adventure found in those early travelers is still with us today. However, travel today is
more than just adventure, and it has spawned an entire group of service industries to
meet the needs of tourists all over the world.
Where people travel, why they choose a particular location, and what they do once
they arrive are of interest to everyone in the tourism industry. These data are now collected
and recorded based on the reasons given for taking trips. The primary reasons for travel
can be broken into three broad categories: vacation and leisure travel, visits to friends
and relatives (called VFR in the tourism industry), and business or professional travel (see
Figure 1.4). Travel in all of these categories creates demands for other tourism activities.
Travel and tourism have now become so commonplace in industrialized countries
that we may fail to think about what has made these activities possible. If you think
about it, tourism affects all of our lives and is intertwined throughout the entire fabric
of a host community, region, or country. Tourism can be viewed and studied from a
variety of perspectives. In addition to geography and the commonly studied business
disciplines of marketing, management, and finance, other disciplines often included in
the study of tourism are:
• Anthropology
• Sociology
• Economics
• Psychology

FIGURE 1.4
Typical reasons for travel. The percentages of
trips in each category may vary from year-to-
year, but they are relatively constant over time.
Business or professional: 20%; Visit friends or Visit friends
Vacation or leisure,
relatives: 40%; Vacation or leisure: 37%; Others: or relatives,
3%. Source: Travel Facts and Statistics. U.S. Travel 37%
40%
Association (2010).

Others,
3%
Business or
professional,
20%

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Chapter 1 ▸ Introducing the World’s Largest Industry, Tourism  15

Each of these perspectives provides important insights into tourism activities and
raises a variety of questions. Some of the more commonly asked questions that could
help us understand travel, tourism, and tourists include:
• Who are these visitors?
• Why do they travel?
• Where do they travel?
• What are their concerns when they travel?
• What are their needs when they travel?
• What forms of transportation do they use?
• Where do they stay?
• What do they do when they travel?
• Who provides the services they need?
• What impact do they have on the locations they visit?
• What types of career opportunities are available in this industry?
These and many other questions point to the need to study tourism.
Casual or commonsense approaches to answering these questions will not prepare
us to meet the needs of tomorrow’s visitors. Rather than studying tourism from only
one perspective, throughout this book you will have the opportunity to learn from
multiple perspectives. You will learn more about tourism in general, the segments of
the tourism industry, and the key issues facing tourism.
Technology continues to have an unprecedented effect on the tourism industry.
For example, the Internet has inexorably changed the way tourism services are sold
and automation is being adapted for new uses. Throughout the chapters of this text,
we will highlight how technology is affecting the service landscape. Technology plays
such an important role in the tourism industry that we will take a more in-depth look
at these impacts in Chapter 5.

Geography Describes the Traveler’s World


Travel is a key component in all tourism activities; therefore, a basic understanding
of geography can enrich our understanding of the tourism industry. As a future tour-
ism professional, you may find yourself working in a position requiring more than
just a basic understanding of geography. Careers in travel agencies, tour operations,
airlines, car rental companies, rail and bus companies, cruise lines, travel publishing,
and cartography are just a few examples of where geographic knowledge may be con-
sidered important. If you see yourself in any of these careers or just want to be a more
informed traveler, join us as we journey through this section and learn how geography
provides a window to the world.
Take a look at what National Geographic Traveler calls the world’s greatest des-
tinations (see Table 1.3). How does geography play a role in defining these special
places? Are they the same or different? Are they near or far? Are they rural or urban?
Let your imagination roam, and take a moment to locate each of these distinct destina-
tions on a map. What makes these destinations special?
Now that you have located these destinations, see whether you can answer these
basic questions. How do you get to these locations? Based on climatic conditions,
when would be the best time to visit? What would you see and experience once you
arrive? A thorough understanding of geography gives you the confidence to answer
these questions and meet travelers’ needs.

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16  Part 1 ▸ The Traveling Public and Tourism Promoters

Table 1.3 Fifty Places of a Lifetime


African Continent Antarctica Asian Continent
Pyramids of Giza The entire continent Istanbul
Sahara North American Continent Acropolis
Serengeti Canadian Rockies Jerusalem
Seychelles Boundary Waters Petra
European Continent Canadian Maritimes Great Wall of China
English Lake District San Francisco, CA Japanese Ryokan
Coastal Norway Big Sur, CA Taj Mahal
London Mesa Verde, CO Hong Kong
Paris Grand Canyon, AZ Danang to Hue
Loire Valley Vermont Angkor
Barcelona New York Kerala
Amalfi Coast British Virgin Islands Outer Space
Vatican City Oceania An infinite frontier
Tuscany Papua New Guinea Reefs
Venice Outback
Alps North Island, New Zealand
Greek Islands Hawaiian Islands
South American Continent Galápagos Islands
Tepuis
Amazon Forest
Machu Picchu
Rio de Janeiro
Torres del Paine

Maps
What better place to start studying geography than with maps? For centuries, maps
have played a role in traveler’s plans and adventures. But, what are maps?
“Since classical Greek times, curiosity about the geographical landscape has
steadily grown, and ways to represent it have become more and more specialized.
Today there are many kinds of mapmaking, ….”17 Globes, photo maps, trail maps,
topographical maps, satellite image maps, and street guides should come to mind
when you think of maps and how to read them understanding basic cartography nota-
tions. However, these are only a few examples; other types of maps are also commonly
encountered. Mall diagrams, airport layouts, and even stadium and concert seating
diagrams are all forms of maps. “Like a model automobile or ship, a map is a scale
model of the real world, made small enough to work with on a desk or computer.”18
No matter how large or small, maps show you where you are and how to get to
where you want to be. Today, maps serve a variety of tourism purposes, as they are
created to depict scale models of reality and convey important information to users.
For smaller locations such as airports, theme parks, and historic districts, mapmaking
(technically plans) is fairly simple. However, for expansive areas such as continents or
countries, mapmaking is not quite as simple.
The Earth is a sphere, so the most accurate map of the world is a globe; but car-
rying around a sphere that is big enough to provide any level of detail is a physical
impossibility. So, although these spheres make attractive conversation pieces and let

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Chapter 1 ▸ Introducing the World’s Largest Industry, Tourism  17

608

458
308
158
Equator 08
158
308
458

FIGURE 1.5
Mercator projection. Source: Semer-Purzycki, Jeanne, Travel Vision: A Practical Guide for the Travel, Tour-
ism and Hospitality Industry, 1st Ed., © 2009, p. 47. Reprinted and Electronically reproduced by permission of
Pearson Education, Inc., Upper Saddle River, NJ.

us visualize the complexity of our world, they are not very practical travel compan-
ions. For practical purposes, maps must be flat, which results in distortion, meaning
features don’t appear exactly as they are when large areas are involved no matter how
they are drawn. The most common of these representations is the Mercator projection
(see Figure 1.5), and like most early maps, it was developed for navigation purposes.
In addition to the Mercator projection, two other representations of the world are
used. One is the Robinson projection (see Figure 1.6) and the other is Goode’s homolosine
projection (see Figure 1.7). No matter what approach is taken to represent the Earth in a
two-dimensional format, some distortion will occur. The Mercator projection distorts the
Arctic and Antarctic regions, making them appear larger than they really are. For example,
Greenland appears to dwarf Australia, when in fact Greenland is only about one-fourth
the size of Australia, having a landmass of 2,175,600 square kilometers compared with
Australia’s landmass of 7,617,931 square kilometers. The Robinson projection provides
a more accurate view of the world, but it, too, results in some distortion, especially at
the poles, which appear to be larger than they really are. Goode’s homolosine projection,
which resembles a flattened orange peel, creates the most accurate view of the Earth and
creates the least amount of distortion. Because the world is round, whichever projection is
used, the shortest distance between two points is not a straight line, but a curved one.
Current information technologies allow travelers access to maps in a num-
ber of different formats, including the traditional two-dimensional drawings,
three-dimensional drawings, satellite images, and actual video images of the locations
shot from the street. These can be accessed from computers or a number of mobile
devices. The three-dimensional drawings simulate real view of the locations and reduce
the two-dimensional challenge of distortion.

Reading Maps
As the previous representations of the world show, not all maps are created alike.
However, once you master the basic language of mapmaking, cartography, you can

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18  Part 1 ▸ The Traveling Public and Tourism Promoters

FIGURE 1.6
Robinson projection. Source: Semer-Purzycki, Jeanne, Travel Vision: A Practical Guide for the Travel, Tour-
ism and Hospitality Industry, 1st Ed., © 2009, p. 47. Reprinted and Electronically reproduced by permission of
Pearson Education, Inc., Upper Saddle River, NJ.

FIGURE 1.7
Goode’s homolosine projection.
Source: Semer-Purzycki, Jeanne. Travel
Vision: A Practical Guide for the Travel,
Tourism and Hospitality Industry, 1st
Ed., © 2009, p. 47. Reprinted and Elec-
tronically reproduced by permission of
Pearson Education, Inc., Upper Saddle
River, NJ.

interpret any map. Unlocking this information requires understanding of basic carto-
graphic notations, that is, geographic grids (longitude and latitude), legends (symbols
and colors), and indexes (location guides).
“Twenty-first-century maps are more than just maps—they are analytical tools
referred to as geographic information systems (GIS) and are part of a larger field of
study called geographic information science (GIScience).”19 Every map has several
things in common. They all will serve as a means of location. The most common
means of determining location is via latitude and longitude. Every place on Earth can
be located by knowing these two pieces of information.
Finding a location’s latitude and longitude relies on two imaginary lines that divide
the Earth. One is the equator located halfway between the North and South Poles.
Distances moving north or south from this line are measured in degrees of latitude.
The other imaginary line is the prime meridian, running north and south through
Greenwich, England, and connecting the two poles. Distances moving east and west
from this line are measured in degrees of longitude. These lines intersect at right angles,
forming a grid (see Figures 1.5–1.7). So, you could locate Christchurch, New Zealand,
on a map by knowing the coordinates, 43°32¿S and 172°38¿E; or if you were given the
coordinates 44°57¿ N and 93°16¿ W, you would find Minneapolis, USA.

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Chapter 1 ▸ Introducing the World’s Largest Industry, Tourism  19

On the opposite side of the Earth from the prime meridian is the International
Date Line separating east from west. This line is not a straight longitudinal line, but
it corresponds fairly closely to 180° longitude, and just like the prime meridian, it
extends from the North to the South Pole. This line has been set by international agree-
ment and separates one calendar day from the next. Areas to the west of the Interna-
tional Date Line are always one day ahead of areas to the east. Therefore, Pacific Rim
and Asian countries are one day ahead of the United States and Canada, and several
hours ahead of European countries.

Indexes and Locators


Some maps, such as diagrams of specific locations like road atlases, may not be so
sophisticated as to have latitude and longitude. These maps may simply have indexes
of locations listed alphabetically with map-specific grids or location indicators. Spe-
cific map locations are identified through the use of two index points such as A and
12. You would find A by looking down the left- or right-hand side of the map and 12
by looking across the top or bottom of the map. If the location is small, specific points
of interest may be identified only by letters or numbers that correspond to locators
on the outside border of the map. An airport layout is an example of a small-place
diagram providing all the information travelers need to find their way around as they
check in, change flights, or locate available services.
Second, maps will have locator information. These locators may be cardinal direc-
tions or compass points such as north, south, east, and west. If you are directionally
impaired, it may help you to remember that up is north and down is south when using
the North Pole as a reference point. The same holds true for left and right. Left is west
and right is east. However, anytime you look at a map, always remember to orient
(place) the map facing north so that you will have a common sense of direction.

Scales
Maps are replicas of reality, so they must be smaller than the area depicted. Therefore,
everything shown on a map must be proportional, which requires a map scale. The
scale will be indicated on the map. Examples of scales may include notations such as
1– equals one mile or 1– equals ten miles. Scales may also be shown as graphic or bar
scales. Figure 1.8 provides several examples of how scales may be used on maps.

Legends
Symbols or icons are often used on maps to indicate points of interest, services, and
attractions. These legends save space, locating and drawing attention to everything
from capital cities, roads, airports, marinas, and waterways to restaurants, museums,
roadside parks, points of interest, and campgrounds. When searching for the legend,
also take a look at the date the map was produced. The more recent the date, the more
accurate the map should be. Finally, you may find several maps using similar notations
grouped together in atlases.
Maps are important tools in geography, but there is more to geography than spin-
ning a globe and placing your finger on Tibet or locating the home of the Taj Mahal.
For tourism professionals, geography includes knowledge of the physical and human
characteristics that influence travel activities.
Information provided through three broad categories of geography—physical,
human (cultural), and regional—will enable you to learn more about locations around
the world and to provide others with that information without ever having to visit
those locations. Let’s look at how you might use some of these basic geographical con-
cepts in a variety of settings.

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20  Part 1 ▸ The Traveling Public and Tourism Promoters

Lake 10 Jacksonville

N.E. 2ND AVE.


N.E. 1ST AVE.
N. MIAMI AVE.
City
CASTILLO DE SAN N.E. 1ST ST.
301 MARCOS N.M.
19

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17
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AVE.
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HOUSE BANK BURDINES
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41 95
OCALA
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GUSMAN
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19 S.E. 1ST ST.
4
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HOTEL

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IDA’S
98 Metromover
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HOLIDAY INN

T UR
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NPI KE
Okeechobee Ft. Pierce

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ALLIGA
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LADES
LEY 95
i R iv e r
am

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AIRPORT EXPRESSWAY
75 84 112
84

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N.W. 10TH AVE.


27 27
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4

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I II I II I I
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4

MIAMI
N.W.

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27 4 826 GRAPELAND
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5 mi MEM. HOSP. 395


14 Opa-Locka Beach
9 5 8 9 Surfside 836
N.W. 11TH
8 J.F.K.
TORCH OF
Hialeah5
997
N.W. 7T H ST . ORANGE N.W. 6TH ST. FRIEND-
5 A1A BOWL
3 5 COURT SHIP
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r
836
6 10 Beach
S.W.8TH AVE.
41 41 CLUB W. FLAGLER ST. PARK
4 ON RIVERSIDE METRO
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826 DADE
3 14 VIRGINIA KEY AC . PK.
5 water 3 BE LV D S.W. 7TH ST. CUSTOMS CULT.
KEY BISCAYNE TAMIAMI TRAIL CTR.
874 S. Miami B 41

1:1,000,000 1:100,000

0 5 10 15 MILES 0 .5 1.0 1.5 MILES

FIGURE 1.8
Map scale. The four maps show Florida (upper left), south Florida (lower left), Miami (lower right), and
downtown Miami (upper right). The map of Florida (upper left) has a fractional scale of 1:10,000,000.
Expressed as a written statement, 1 inch on the map represents 10 million inches (about 158 miles)
on the ground. The bar line below the map displays the scale in a graphic form. Look what happens to
the scale on the other three maps. As the area covered gets smaller, the maps get more detailed, and
1 inch on the map represents smaller distances. Source: Rubenstein, James M. Cultural Landscapes:
An Introduction to Human Geography, 8th Ed., © 2005. Electronically reproduced by permission of Pearson
Education, Inc., Upper Saddle River, NJ.

Physical Geography
Knowledge of physical geography provides the means to identify and describe natural
features of the Earth, including landforms, water, vegetation, and climate. When these
natural features are combined, they create an environment that can either encourage
or discourage tourism activities. For example, during winter months in the Northern
Hemisphere, visitors might be attracted to snow-covered mountains for skiing or to

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Chapter 1 ▸ Introducing the World’s Largest Industry, Tourism  21

warm sun and sandy beaches for a break from the harsh realities of winter. As the
seasons change, these same physical attributes could deter tourism. As the snow melts
and mud appears, the mountains may lose their appeal. The same can be said for the
once-sunny beaches as the rainy season arrives.

Landforms and Vegetation


Landforms refer to the surface features of the Earth. Relief maps showing elevation
changes provide quick clues to the many different types of landforms that may be
encountered. Everything from continents and islands to mountains and valleys make
up our physical world. Mountain ranges, the most significant landforms, not only cre-
ate impediments to travel but also affect weather. As mountains stop moisture-bearing
winds, one side will be wet and the other dry.
Vegetation or the lack of it (based on rainfall) creates the mantle that covers land-
forms. Whether it is a barren desert landscape, deep-dark forest, verdant grassland, or
the stark reality of arctic tundra, the variations capture imaginations and attract visitors.

Water
Most of the world (over 70%) is covered by water, and most of this water is saltwater;
so it should come as no surprise that tourism professionals should know something
about oceans, seas, gulfs, lakes, and rivers. These bodies of water are the playgrounds
for today’s cruise lines and river barges, but they were once the primary corridors
of transportation. Because water transportation was the first means of moving large
numbers of people and cargoes, it is easy to see how cities formed as people congre-
gated around and along major bodies of water.
Even today, water, and especially water currents, can have dramatic impacts on
land temperatures and the amount of moisture that falls. Ocean currents rotate clock-
wise in the Northern Hemisphere but counterclockwise in the Southern Hemisphere.
Thus, the warm Atlantic currents of the Gulf Stream and the North Atlantic Drift keep
Ireland and England green almost year-round even though both are located far north of
the equator. Likewise, the cold waters of the Indian Ocean are still cool as they move
north up the west coast of Australia (the West Australia Current). Even large inland
bodies of water can significantly affect weather patterns. For example, the warmer tem-
peratures of the Great Lakes produce large amounts of snow in the winter as warmer
moisture from the lakes collides with the cold landmass. In addition to bodies of water,
levels of precipitation (see Figure 1.9) affect population densities and tourism activities.

Climate and Seasons


Meteorologists can fairly accurately predict short-term weather patterns. However,
travel and tourism professionals should be able to describe general weather patterns
for any location at any time of the year. Will it be rainy or snowy, sunny or cloudy,
humid or dry, hot or cold? Geography provides the answers to these important and
specific climatic questions.
Location, combined with season, will dictate long-term weather patterns. For
example, a Caribbean cruise would make sense in December but would be question-
able in September, the height of hurricane season. Likewise, an Alaskan cruise would
be enticing in August, but would be frosty if not an impossible nightmare in December.
Or, a trip to Southern China during the cool-dry season in November would be a plea-
sure rather than in July or August, the hot and humid season.
Seasons may change, but climates remain relatively constant. The world is divided into
five basic climatic zones, which are based on distance from the equator, 0° latitude. This
imaginary line splits the world into the Northern and Southern Hemispheres. The tropical

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22

M01B_COOK4488_06_SE_C01.indd 22
80°
ARCTIC OCEAN
ARCTIC OCEAN
70° 70°
Arctic Circle

60° 60° 60°

50° 50° 50°

40° 40° 40° 40°

ATLANTIC PACIFIC

30° 30° 30° 30°


OCEAN OCEAN
Tropic of Cancer Tropic of Cancer
160°
20° 20° 20°
PACIFIC ARABIAN BAY OF
SEA BENGAL

OCEAN
10° 10° 10°

140° 130° 120° 110° 100° 90° Equator 40° 10° 0° 50° 60° 70° 80° 90° Equator 140°
0° 0°

INDIAN OCEAN
10° 10° 10° 10° 10°
ATLANTIC 120° 140° 150° 160° 170°

CORAL SEA
Inches Centimeters OCEAN
20° 20° 20° 20° 20° 20° 20°
Over 80 Over 200 Tropic of Capricorn Tropic of Capricorn

60–80 150–200
30° 30° 30° 30° 30° 30° 30°
40–60 100–150

20–40 50–100

40° 10–20 25–50 40° 40° 40° 40° 40° 40°

Under 10 Under 25
110° 120° 130° 140° 150° 160° 180°
50° 50° 50° 50° 50°
0 1,000 2,000 3,000 MILES

0 1,000 2,000 3,000 KILOMETERS


MODIFIED GOODE'S HOMOLOSINE EQUAL-AREA PROJECTION

FIGURE 1.9
World mean annual precipitation. Precipitation varies greatly from one part of the world to another. Moreover, there is considerable variability in precipitation from one year to the next.
Variability is usually greatest in areas of limited precipitation. Source: Clawson, David L., Fisher, James, Aryeetey-Attoh, Samuel A., Theide, Roger, Williams, Jack F., Johnson, Merrill L., Johnson,
Douglas L., Airriess, Christopher A., Jordan-Bychkov, Terry G., and Jordan, Bell. World Regional Geography: A Development Approach, 8th Ed., © 2004, pp. 36–37. Reprinted and Electronically repro-
duced by permission of Pearson Education, Inc., Upper Saddle River, NJ.

06/03/17 8:46 PM
Chapter 1 ▸ Introducing the World’s Largest Industry, Tourism  23

The geography of the Greek Island, Santorini—caldera, calm Mediterranean water, and
mild weather—makes it a popular vacation destination. Photo by Cathy Hsu

regions extend to the Tropic of Cancer to the north and the Tropic of Capricorn to the
south. The north temperate climate extends from the Tropic of Cancer to the Arctic Cir-
cle, and the south temperate climate extends from the Tropic of Capricorn to the Antarc-
tic Circle. Above and below these lines are the North and South Polar zones.
In tropical zones, temperatures are mild, with little variation throughout the year.
In contrast, the temperate zones are noted for their four-season temperatures. Polar
zones are the exact opposite of the tropical zones, staying below 0°F most of the year.
In addition to the natural features, location and accessibility are key factors that
will influence the level of tourism activity. But geography is more than just landforms,
water, vegetation, and climate. It also includes people.

Human Geography
The exhilaration of experiencing other cultures is enjoyed by many through languages,
foods, beverages, products, arts, and crafts that are typical to particular locations.
Simply being in a different location and participating in daily activities can be an
adventure in itself. An understanding of human (cultural) geography provides specific
types of information that can enhance any tourism experience.
Human geography, which includes people and economic activities, creates the rest
of the picture that can be captured and explained through maps. Culture, as expressed
through language, religion, dress, foods and beverages, and other customs, plays a
critical role in the popularity of many tourism destinations. Other factors such as pol-
itics and economic conditions can also play an important role in the ease of travel,
especially across international boundaries. Governments can encourage or discourage
tourism through passport and visa requirements as well as through policies relating to
taxation or the ease of currency exchange.
For example, English is the most commonly spoken language in the industrialized
world, but it may not be spoken in some locations. In other locations, Chinese, French,
Spanish, Russian, Japanese, or a host of other languages may be common. Although

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24  Part 1 ▸ The Traveling Public and Tourism Promoters

this might create a language barrier for some, it can create opportunities for others
who provide interpretation or tour services.
Human geography allows travelers to become aware of cultural norms and reli-
gious expectations so they do not commit social blunders. In some countries, it is com-
mon practice for businesses to close on certain days and times because of accepted
cultural norms or for religious reasons. For example, all commercial activity ceases in
many Middle Eastern countries during designated prayer times.

Regional Geography
The level of tourism interest and activity in a specific area often depends on a combination
of both physical and human geography that comes together, making certain locations more
attractive than others. It may be curiosity or a combination of natural as well as developed
features and attractions that meet visitor wants, needs, and expectations. Regional geog-
raphy is a useful framework for studying the physical and human geography of a specific
area or location, providing a convenient way to organize a wide variety of facts.
For example, locations near large population centers combined with access to
well-developed transportation systems generally create high levels of tourism activity.
Climate also influences the level and type of tourism activity. Factors such as time of year,
geographic location, and proximity to major bodies of water all contribute to demand.
This may explain why the most popular tourist destinations in Europe can be found
along the Mediterranean Sea and in Asia around the South China Sea. We can see a sim-
ilar pattern in the United States, as six of the top ten locations for domestic travelers are
located near major bodies of water: Arizona, Arkansas, California, Colorado, Florida,
Hawaii, Nevada, New York, Texas, and Washington, D.C. Similar patterns can be seen
all along the shores of Costa Del Sol in Spain and the Sunshine Coast in Australia.
Regions also play an important role in the development and promotion of tour-
ism activities. The Gold Coast in Australia, the Pearl River Delta in China, the Alps in
Europe, and the Rocky Mountains in North America form natural regions of tourism
activities that cross political boundaries. Smaller regions such as the wine-growing regions
of California, Washington, New York, France, Germany, Italy, and Spain also attract
a great deal of tourism activity and have become popular destinations. Other regions

Tourism in Action
Geographic Information Systems (GIS)
An enormous challenge to any business in the tourism industry is managing information. Who are the many
different guests of the business? Where do they come from? What do they have in common and how do their
needs differ? What time of year do they come and how long do they stay? What qualities and services do we have
or need to develop to fit visitor lifestyles? The questions are endless and so is the amount of data generated by
the answers. As introduced in this chapter, the ability to segment markets and serve them profitably is a critical
component to competing successfully in the global tourism industry. So how do you put all the data into clear,
easy-to-use information and put it into the hands of people to use it? One answer is to use a GIS for presentation
and spatial data analysis (information linked to geographic location).
A GIS is a set of computerized tools, including both hardware and software. GISs are used for collecting, stor-
ing, retrieving, transforming, and displaying spatial data. An easier way to think of GIS is as a marriage between
computerized mapping and database management systems. In other words, anything that can appear on a map
can be fed into a computer and then compared to anything on any other map, and everything on any map can have
layers of data and information attached. GIS is a powerful technology and its potential uses are endless. GISs are
now being used to locate park and recreational facilities, to generate site specific economic and environmental
impact information on tourism activities, and to track tourist movement so as to evaluate and optimize tourist flow
and refine tourism product offerings.

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Chapter 1 ▸ Introducing the World’s Largest Industry, Tourism  25

may be defined by specific boundaries such as the Valley of the Kings in Egypt, the Lake
District in England, Canada’s Capital Region, Chicagoland, and the French Riviera.
Geography provides a foundation to help us understand why people visit or fail
to visit certain areas, but we also need to learn how to meet their needs efficiently
and effectively as they travel. The three primary interrelated business functions—
marketing, management, and finance—add the structure to our foundation, providing
many of the tools necessary to plan and meet current and future needs of travelers.
Let’s look at how these business functions work together in the tourism industry.

Studying Tourism from Business Perspectives


First, marketing concepts provide insights into why people travel as well as possible
approaches to meeting their needs as they travel. Second, management concepts pro-
vide insights into the processes needed to meet societies’ and visitors’ current and future
demands. Third, financial concepts provide the tools needed to understand, design,
and supply profitable levels of visitor services. By combining knowledge from each of
these perspectives, a basic understanding of tourism fundamentals can be developed.

Marketing
Studying tourism from the marketing approach provides valuable insight into the
process by which tourism organizations create and individual visitors obtain desired
goods and services. Everyone who has either worked in or used tourism-related ser-
vices knows that customers (visitors and guests) can be very demanding. The more
you know about these travelers and how to meet their needs, the more successful you
will be as a hospitality and tourism professional. In fact, individuals and organiza-
tions who attempt to understand and meet the needs of these visitors successfully are
practicing what is called the marketing concept, an organizational philosophy centered
around understanding and meeting the needs of customers.
Marketing theorists have coined a variety of phrases to describe the philosophy of
an organization.20 The “production orientation” organization views its mission to pro-
duce its product most efficiently and customers will simply arrive to purchase whatever
is produced. In a noncompetitive, high-demand environment, this orientation works.
Consider the gasoline industry. A second philosophy is the “sales orientation.” Under
this philosophy, an enterprise produces its product but it needs an effective (even pushy)
sales force to encourage customers to buy all of the organization’s production. This phi-
losophy is frequently exhibited at large city hotels. The hotels have an inventory they
need to “move,” and it is the role of their sales staff to fill those beds each night and
bring in those conventions and wedding receptions to fill those ballrooms!
Notice that neither of these orientations focuses on the needs or wants of the cus-
tomer: The focus is on the “need” of the organization to produce and sell. A third
philosophy, the heart of marketing, places the customer at the core of a firm’s pro-
duction or service delivery purchase. This newer philosophy is called the “consumer
orientation” and requires that organizations determine what customers really want
and need in a product or service so that a firm’s offerings closely fit what is wanted by
consumers, and therefore selling the firm’s offerings becomes much easier.
Meeting visitor needs relies on a complex set of tools and techniques that is
referred to as the marketing mix. The marketing mix consists of four variables that
are often called the four Ps of marketing: product, price, place, and promotion. Prod-
uct refers to the good or service that is being offered. Price is the value of the good or
service. This value is the amount of money that will be paid as well as the time “given
up” to obtain the good or service. Place includes the location and the activities that are
required to make the good or service available to the visitor. Finally, promotion refers

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26  Part 1 ▸ The Traveling Public and Tourism Promoters

Communications with tourists can take various creative means. Photo by Cathy Hsu

to all of the activities that are undertaken to communicate the availability and benefits
of a particular good or service. Just think about yourself or someone else who is travel-
ing to another city to attend a concert. How can each of the variables in the marketing
mix come together to make that trip a memorable experience?
Although tourists, as a whole, are a very diverse group, they can be divided
into subgroups or market segments. Market segmentation allows an organization to
develop the most appropriate marketing mix to meet the needs of specifically targeted
visitor segments effectively and efficiently. For example, would a young college student
want the same types of experiences at Disney World as a family would want?
Each market segment contains individuals who share many of the same characteristics
and common needs. For example, businesspeople may need to get to their destinations as
quickly as possible, whereas the summer vacationers may want to take the most leisurely
and scenic route. Young college students may need to locate inexpensive accommodations
at their destinations, whereas conventioneers may need to stay at the hotel that is hosting
the convention, regardless of price. Some visitors may be seeking a variety of entertaining
outdoor activities, whereas other visitors are interested in shows and shopping. This list of
examples could go on, but the point should be clear: As organizations plan to meet these
differing needs, they can no longer afford to try to serve the needs of all visitors. They sim-
ply do not have the resources to reach everyone and meet their diverse needs successfully.
You will learn more about the importance of marketing and its role in meeting tour-
ists’ needs in the following chapters. As we explore the many facets of the tourism indus-
try, think about yourself as well as other specific groups of visitors who are being served
and how these targeted individuals shape marketing as well as management decisions.

Management
Management furnishes additional tools and techniques to serve visitor needs suc-
cessfully. Management, just like marketing, is essential to the continued success of

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Chapter 1 ▸ Introducing the World’s Largest Industry, Tourism  27

all organizations, both public and private. The study of management provides a uni-
fied approach to planning, organizing, directing, and controlling present and future
actions to accomplish organizational goals. As our model depicts, economic, political,
environmental, sociocultural, and technological forces affect all tourism organizations
and play a key role in the development of strategic plans.21 Managers need to under-
stand each of these forces and how they will impact decisions as they plan for the future.
Basically, management is the common thread that holds any organization or activ-
ity together and keeps everyone moving in the same direction. For example, managers
working for the Forest Service must decide how many people can comfortably use a
campsite and when and where new campsites should be built. Government planners
and administrators must make decisions about the desirability and necessity of new
or expanded highways, airports, and shopping facilities. Restaurant managers must
decide how many employees are needed to provide high-quality service and, at the
same time, make a fair profit. Resort managers must decide whether or not to expand
and what level of service to offer. Think back to that trip you were asked to plan ear-
lier in the chapter, and you will begin to see how all of the management functions must
fit together to have a successful experience.
The process might go something like this. After you mentioned the possibility of
renting a cottage at the beach to enjoy some sun, surf, and sand, several of your friends
asked if they could go with you. The first management function used in putting this
trip together is planning: where to go, how to get there, and how many will go. Once
these decisions are made, the next function used is organizing. You are using the orga-
nizing function when you assign someone to search the Web for more information and
decide who will make reservations, who will buy food and refreshments, and who will
call everyone to make sure each person shows up on time on the day of departure.
The next logical step you would use in putting together your trip would be the
directing function. You are directing as you answer questions and coordinate all of
your planned activities. Finally, you will use the controlling function. You are con-
trolling as you check maps, directions, itineraries, and reservations to ensure the
success of your trip. Although the activities may be more complex, managers in all
tourism-related activities are constantly going through the same types of processes.

Finance
Studying tourism from a financial approach provides a basic understanding of how
organizations manage revenues and expenses. To continue operating and providing
services, tourism organizations must strive to generate revenues in excess of expenses
or effectively and efficiently use the financial resources they have been allocated. Even
nonprofit and government organizations are being called on to generate more of their
own funding and to gain better control of their expenses.
By definition, a business is an organization operated with the objective of making
a profit from the sale of goods and services. Profits are revenues in excess of expenses.
They are used as a common yardstick to represent financial performance and are the
ultimate measure of financial success. However, some tourism organizations such as
governmental agencies, museums, visitors and convention bureaus, and hotels asso-
ciations may be classified as nonprofit. Even though they may not technically operate
with a profit motive, most still strive to generate revenues in excess of expenses. For
simplicity, we will use the generic term business in our discussion of financial concepts.
To use and communicate financial information, a common language must be spo-
ken. That language is known as accounting, which is often called the “language of
business.” Accounting is an activity designed to accumulate, measure, and commu-
nicate financial information to various decision makers, such as investors, creditors,
managers, and front-line employees. One of the purposes of accounting information
is to provide data needed to make informed decisions. There are two main categories

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28  Part 1 ▸ The Traveling Public and Tourism Promoters

of financial reports: internal and external. Internal financial reports are used by those
who direct the day-to-day operations of a business. External financial reports are used
by individuals and organizations that have an economic interest in the business but are
not part of its management.
Three basic building blocks are used to measure financial success:
1. Margin (the amount of each sales dollar remaining after operating expenses
have been deducted)
2. Turnover (the number of times each dollar of operating assets has been used
to produce a dollar of sales)
3. Leverage (the extent to which borrowed funds are being used)
When these three components are multiplied together, they equal return on invest-
ment (ROI), which measures profit. The ability to operate profitably is critical to tour-
ism organizations because they are typically faced with low margins, high turnover, and
the need to use leverage (other people’s money). As can be seen in Figure 1.10, man-
aging these three components is a delicate balancing act, and tourism is an industry in
which every nickel counts and profits depend on recognizing the importance of pennies.
Since margins are so low for most tourism service providers, many segments of
the industry are adding convenience charges on to their service offerings to improve
profitability—for example, airlines charge for food, entertainment, and specific seat
reservations; hotels charge for early check-outs on reservations, spa and gym access;
cruise lines charge for specialty restaurants on-board; car rental companies charge for
GPS navigation systems; and restaurants charge for premium seating locations. As
tourism service providers search for profitability, these lists will only continue to grow.
Let’s look at some practical examples of how these building blocks for financial success
might work in specific segments of the tourism industry. In its simplest form, margin (50¢
or 5¢ for each dollar in revenue) for a food-service operator serving a hamburger and fries
would be the sales price ($10.00) minus the cost of preparation, ingredients, and service
($9.50). Keep in mind that out of that 50¢ margin, businesses must still pay taxes to local
and national governments. Airlines would measure turnover by the number of times a seat

FIGURE 1.10 Turnover


The art of finance. Finance is a matter of
balancing margin, turnover, and leverage.
Covers

Seats
High Low
margin Room margin
Passenger

nights
s
miles

or
sit
Vi

Leverage:
"other people's money"

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Chapter 1 ▸ Introducing the World’s Largest Industry, Tourism  29

FYI Hospitality
Legend has it that New England sea gates in front of their homes to let it pineapple has since been known as a
captains, after returning from a voy- be known that all were welcome. The symbol of hospitality!
age, speared a pineapple on the iron

was sold during a 24-hour period. Leverage is an indication of how much money has been
borrowed or invested in a business. For example, a ski resort wanting to add a new gondola
might go to a bank or investor to get the money needed for this expansion. We will explore
the importance of finance in later chapters as we examine specific industry segments.
Remember the analogy of the elephant? Financial information is much like the
elephant’s nervous system. Just as the elephant’s nervous system allows it to respond
to its environment, an organization’s financial information system allows it to read its
environment and move in the direction of profitable operations.
Basic knowledge of geography, marketing, management, and finance concepts
will provide many of the tools needed for your future success in the tourism industry.
However, the importance and practice of hospitality must be added to these basic con-
cepts. To make a profit, managers must use their marketing and management skills to
extend hospitality and high-quality service that meet guests’ needs. We will explore the
importance of providing hospitality and delivering service quality in Chapter 3.

Tourism’s Challenges and Opportunities


Meeting the needs of travelers by providing tourism-related goods and services has
proven to be an attractive form of economic development. Attempts to encourage the
development and growth of tourism activities are often desirable because tourism cre-
ates jobs and brings money into a community or country. However, unplanned tour-
ism growth can lead to problems.
Although tourism can create greater cultural understanding and enhance economic
opportunities, it may also change social structures; may place increasing demands on
transportation systems, public services, and utilities; and may lead to environmental deg-
radation. Whether we are participants in or beneficiaries of (both positive and negative)
tourism activities, we are all in one way or another affected by tourism. However, there
is still a lack of understanding by the public of the impact of tourism on environment.22
Pause for a moment and consider the following examples of how tourism might
affect our lives and communities. For example, tourism could create needed jobs for
residents and increase business for local merchants in a small coastal town seeking eco-
nomic security. However, as that town grows into a more popular destination, it can
become overcrowded, and the original residents who sought increased tourism expendi-
tures may be driven out because of increased housing costs, higher taxes, and/or chang-
ing business demands. Tourism can generate needed funds to improve the lives of an
isolated native tribe in the rain forests of South America. Yet, it can also forever change
the lives of these peoples as they are exposed to the cultures and habits of the tourists
who come seeking what they consider to be the ultimate travel experience.
The future of tourism provides many challenges and opportunities as well as many
unanswered questions:
• Can tourism growth and development continue without creating environmental
problems?
• How will advances in technology change tourism experiences and how tourists
and service providers deal with each other?

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30  Part 1 ▸ The Traveling Public and Tourism Promoters

• Will the expansion of the use of technology by tourism suppliers lead to a “low-
touch” service that is less appealing to guests?
• As tourism service activities continue to grow, will an adequate workforce with
the necessary skills be available?
• Will tourism change the social structure of countries and communities when they
experience increased tourism activities?
• Will the threat of terrorism continue and spread around the globe, decreasing
potential travelers’ sense of security and thus decreasing the level of international
travel?
These are only a few of the questions that may arise as plans are made to respond
to the demands of tourism growth. Information presented throughout this book will
provide you with the fundamental knowledge necessary to begin forming your own
opinions and possible answers to many of the questions and issues that you will face as
decision makers of tomorrow.
As you search for answers to the future of tourism, let your thoughts and actions
be guided by ethical principles. Although most people can easily distinguish between
right and wrong based on their own personal experiences, they are often faced with
decisions where it is difficult to make these clear distinctions. In an effort to promote
ethical behavior, organizations often publish codes of ethics to help guide individuals
in their daily activities and decisions.
Even without the help of a code of ethics, there are some very simple questions
you can ask yourself about any situation or problem to identify ethical and unethical
behavior:
• Will someone be hurt in this situation?
• Is anyone being coerced, manipulated, or deceived?
• Is there anything illegal about the situation?
• Does the situation feel wrong to you?

Tourism in Action
World Tourism Organization
The World Tourism Organization (UNWTO), an agency of the United Nations, serves the world as a global source
of tourism information and skill development. Headquartered in Madrid, Spain, the UNWTO boasts 144 member
countries and over 300 affiliate members from the private sector and other tourism organizations. Begun in 1925,
the UNWTO, through its various programs and committees, aids countries in developing tourism and its benefits.
For example, the UNWTO was instrumental in the Silk Road Project aimed at revitalizing the ancient highway
through Asia. The UNWTO’s Business Council works hand-in-hand with private-sector members to strengthen
public–private sustainable tourism efforts. The UNWTO also is a major publisher of important tourism resources,
offering more than 250 titles in four official languages.
A critically important role of the UNWTO is its collection of global tourism statistics. Its international standards
for tourism measurement and reporting provide a common language that allows destinations to compare tourism
revenues and other data with those of competitors. The UNWTO is recognized as the world’s most comprehensive
source of tourism statistics and forecasts. In 2000, the United Nations approved the UNWTO’s Tourism Satellite
Account methodology. This method helps ensure the measurement of the tourism industry’s true economic con-
tribution in terms of gross domestic product, employment, and capital investment.
To learn more about the UNWTO and its structure and activities, visit its website at http://www.unwto.org.

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Chapter 1 ▸ Introducing the World’s Largest Industry, Tourism  31

• Is someone else telling you that there is an ethical problem?


• Would you be ashamed to tell your best friend, your spouse, or your parents about
your contemplated actions or your involvement?
• Do the outcomes, on balance, appear to be positive or negative?
• Do you or others have the right or duty to act in this situation?
• Is there a chance that you are denying or avoiding some serious aspect of the
situation?23
Finally and possibly the simplest, yet most thorough, ethical guideline is the
Golden Rule: Do unto others as you would have them do unto you. Keep these guide-
lines in mind as you analyze and respond to the “You Decide” challenge found at the
end of each chapter.

Where Do You Fit in?


The prospects for the future of the tourism industry and employment in this industry
are bright. Projections from the UNWTO indicate that tourism will remain the world’s
largest “industry” through the year 2020 with travel and tourism sales growing at the
rate of 4.1% a year. Employment opportunities in countries such as Australia, Brazil,
China, and the United States appear to be especially positive.
Realizing the significant role tourism plays in everyone’s future, we should all
attempt to understand how it functions. Only through understanding the participants
and forces shaping the tourism industry can we meet the expectations and desires of
society. Tourism offers a world of opportunities for you to become involved as either
a visitor or service supplier. Just like Bruce, whom you met in the chapter opener, you
never know where a career in tourism may find you in the future.

Topics Covered in Each Chapter


The text, like our tourism model, is organized around meeting the needs of travelers
who are discussed in detail in Chapter 2. In Chapter 3, you will learn more about
travelers and how tourism suppliers identify and deliver quality services. Each of the
fundamental participants and forces shaping tourism can be explored through the
information presented in the remaining chapters.
Chapter 4 takes an in-depth look at the multifaceted distribution systems and sales
functions that link travelers and tourism suppliers. Chapter 5 explores how technology
has shaped and continues to change every aspect of the tourism industry. Chapters 6
through 10 focus on the marketing, management, and financial issues facing primary
groups of tourism service suppliers—transportation, accommodations, food and bever-
age services, attractions and entertainment, and destinations, respectively. Throughout
these chapters, we highlight the importance of maintaining a motivating environment
that supports high-quality service.
Chapters 11 and 12 explore the forces that shape the current and future oper-
ating environment for every person and organization that is found in the tourism
model. These forces include economic, political, environmental, and social/cultural
issues. Chapter 13 is devoted to exploring how we can maintain tourism’s benefits.
Chapter 14 takes a glimpse into the future of tourism. Finally, selected readings
have been included at the end of each major section of the book to complement
and expand the information provided in the chapters. Integrative cases at the end

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32  Part 1 ▸ The Traveling Public and Tourism Promoters

of each major section give you an opportunity to apply your knowledge to real-
world situations.
Questions and exercises at the end of each chapter will allow you to check your
knowledge and apply the concepts you have learned. You will also have an opportu-
nity to think about some of the challenges and ethical issues facing participants in the
tourism industry. We sincerely hope that you enjoy the journey as you study all this
multifaceted industry has to offer!

Summary
The study of tourism will introduce you to one of the larg- development and interdependence of the participants and
est and fastest-growing industries in the world. As shown forces shaping the tourism industry. Based on this foun-
in our model, tourism is a multifaceted service industry dation, and recognizing the importance of geography to
that has a rich history and exciting future marked by many travel and tourism, we will explore all of the components
challenging opportunities. The career opportunities created of the industry on an individual basis and in an economic,
from serving the needs of travelers are almost limitless. political, environmental, and social context.
Our journey into the study of tourism began with a As you learn the concepts and terminology of tour-
brief look back in history. History provides many import- ism, you will gain an appreciation for how the industry
ant lessons that help explain the growth and significance of has developed and you will be equipped to gain more from
travel in world economies. In fact, the lessons to be learned your travel experiences or understand and meet the needs
from history can still be used to help plan for and serve the of others as they travel. Finally, if you decide to become a
needs of travelers today and in the future. Travel continues member of this industry, by practicing the art of hospitality,
to be influenced by factors such as time, money, mobility, you can use all of your knowledge and skills to meet and
and a relative sense of safety. exceed visitor expectations. As you explore the world of
A business focus centered on marketing, management, tourism throughout this book, you will be introduced to the
and finance will be used as a foundation for examining the concepts and issues facing tourism today and in the future.

You Decide
The idea of traveling for education and experience reached benefits from travel, but their travel impacts are very
its pinnacle in the Grand Tour Era. During that time, different. Whereas Grand Tour participants traveled to
travel to locations such as Paris, Rome, and Venice was cities to study, explore, and experience the arts, today’s
considered to be the ultimate travel experience. Today’s adventure travelers visit remote areas and cultures, seeking
equivalent of the Grand Tour participants, the adventure new experiences while generating new income sources
travelers, may not have the time or money for extended for the native population. As they popularize these dif-
trips but still seeks the same educational experiences. ferent locations, roads, utilities, buildings, and other
Although the adventure travelers may travel to some of environment-altering activities follow.
the same destinations that were popular on the Grand Tour, Think for a moment about the impacts Grand Tour
these destinations are not new or exotic. Today’s adventure participants had on the areas they visited while traveling
travelers seeking new and exotic destinations may be found throughout Europe. Are the impacts adventure travelers
trekking through Nepal, viewing wildlife on the Galápagos have on today’s destinations the same? From an ethical
Islands, or braving the elements in Antarctica. perspective, should tourism activities be encouraged every-
The original Grand Tour participants and today’s where?
adventure travelers may have been seeking the same

Net Tour
To get you started exploring the world of tourism, enter www.mapquest.com
the terms tourism and travel, history of travel and tour- travel.state.gov
ism, and/or travel and tourism geography into your favor- google.com/earth
ite search engine, or use the specific links provided here to
www.pata.org
learn more.
en.cnta.gov.cn
www.wttc.travel
www.destinationmarketing.org
www.unwto.org
www.ustravel.org

M01B_COOK4488_06_SE_C01.indd 32 06/03/17 8:46 PM


Chapter 1 ▸ Introducing the World’s Largest Industry, Tourism  33

Discussion Questions
1. Why should we study tourism? 5. Why should we study travel and tourism from a mar-
2. History has taught us that people travel and engage keting approach?
in tourism activities in increasing numbers when sev- 6. Why should we study travel and tourism from a man-
eral basic conditions can be met. Identify and describe agement approach?
these conditions and why they help facilitate travel and 7. Why should we study travel and tourism from a finan-
tourism activities. cial approach?
3. What is geography? 8. What are some of the future opportunities and chal-
4. How do physical, human (cultural), and regional geog- lenges facing the tourism industry?
raphy influence tourism activities?

Applying the Concepts


1. Ask several people of different ages, occupations, and things that popular destinations have in common as
genders to describe tourism to you. Note the differ- well as the things that may be missing in less popular
ences in their descriptions. List those things that are destinations.
common in their descriptions as well as some of the 4. Go to the reference section at your local library and
distinct differences. look at the different types of maps that are available.
2. Travelers are attracted to countries such as Australia, After selecting or being assigned a nation, state, or
Canada, England, France, and the United States to par- province, make two lists of geographic features: (a)
ticipate in tourism activities. However, they have typi- physical and (b) human (cultural). Your lists should
cally avoided countries such as Afghanistan, Iran, and provide an overview of significant information that
Pakistan. Why are tourists attracted to some countries would be of use to someone traveling to the destina-
while they avoid others? tion you are describing.
3. Based on your knowledge of the factors and conditions 5. Use your favorite search engine to find three sources of
that encourage tourism, find articles that could explain maps. Prepare a list including Web addresses showing
the popularity of travel and tourism destinations such the types of maps available and the information con-
as Canada, Costa Rica, France, Macao, New Zealand, tained on these maps.
Spain, Thailand, and the United Kingdom. List the

Glossary
Accounting A service activity of business designed to resources to achieve organizational objectives efficiently
accumulate, measure, and communicate financial infor- and effectively.
mation to various decision makers. Marketing concept An overall organizational philosophy
Business An organization operated with the objective of that is focused on understanding and meeting the needs
making a profit from the sale of goods and services. of customers.
Cartography The science or art of making maps and Marketing mix Those things that an organization can do
interpreting mapped patterns of physical and human to influence the demand for its goods or services. It con-
geography. sists of four variables, often called the four Ps of mar-
Convenience charges Additional charges added to basic keting: product, price, place, and promotion.
services that are designed to increase profitability. Mass tourism Twentieth-century phenomenon whereby
Feudal system A system of political organization, prevail- the working and middle classes began traveling in large
ing in Europe from the 9th to about the 15th century, in numbers for leisure purposes.
which ownership of all land was vested in kings or queens. Model A simple representation showing how important
Host community A town or a city that welcome visitors features of a system fit together.
and provide them with desired services. Physical geography The natural features of our planet,
Human (cultural) geography The human activities that including such things as climate, land masses, bodies of
shape the face of a location and shared experiences, water, and resources.
including the cultural aspects of language, religion, and Professional travel Travel by individuals to attend meet-
political and social structures. ings and conventions.
Leisure travel Travel for personal interest and enjoyment. Profits Revenues in excess of expenses representing the
Management The distinct processes of planning, orga- financial performance and the ultimate measure of the
nizing, directing, and controlling people and other financial success of a business.

M01B_COOK4488_06_SE_C01.indd 33 06/03/17 8:46 PM


34  Part 1 ▸ The Traveling Public and Tourism Promoters

Regional geography The components of geography that Tourism The temporary movement of people to destina-
focus on regional landscapes, cultures, economies, and tions outside their normal places of work and residence,
political and social systems. the activities undertaken during their stay in those desti-
Return on investment (ROI) A measure of management’s nations, and the facilities created to cater to their needs.
efficiency, showing the return on all of an organiza- Tourism Satellite Accounts Methodological framework
tion’s assets. that uses common classifications and definitions to mea-
Services The performance of actions or efforts on behalf sure economic impacts of tourism on a national basis.
of another. VFR Visits to friends and relatives.

References
1. Wilkerson, C. (2003). Travel and tourism: An over- 14. Belozerskaya, M. (2010, March). The first tourist.
looked industry in the U.S. and Tenth District. Eco- History Today, 60(3), 26–32.
nomic Review, Third Quarter. Federal Reserve Bank 15. Cohen, E. (1972). Towards a sociology of interna-
of Kansas City. Available at: http://www.kc.frb.org. tional tourism. Social Research, 39(1), 164–182.
2. Economic Impact of Tourism (2015). World Travel 16. D’Amore, L. (1988, Summer). Tourism—The
and Tourism Council, 1–2. world’s peace industry. Journal of Travel Research,
3. Smeral, E. (2010, February). Impact of the world 27(1), 35–40.
recession and economic crisis on tourism: Forecasts 17. Robinson, A. H., Morrison, J. L., Muehrcke, P. C.,
and potential risks. Journal of Travel Research, Kimerling, A. J., and Guptill, S. C. (1995). Elements
49(1), 31–38. of Cartography (6th ed.). Hoboken, NJ: Wiley
4. Tourism Highlights, (2015). UNWTO, p. 2. Publishing.
5. Hunt, J. D., and Layne, D. (1991, Spring). Evolution 18. Rubenstein, J. M. (2005). The Cultural Landscape
of travel and tourism terminology and definitions. (8th ed.). Upper Saddle River, NJ: Pearson
Journal of Travel Research, 29(4), 7–11. Education.
6. Waters, S. (1990, February). The U.S. travel industry: 19. Clawson, D. L., and Johnson, M. L., eds. (2004).
Where we’re going. Cornell Hotel & Restaurant World Regional Geography: A Development
Administration Quarterly, 30(4), 26–33. Approach (8th ed., pp. 36–37). Upper Saddle River,
7. Glossary of Tourism Terms (February 2014). NJ: Pearson Education.
UNWTO, 1. 20. Burns, A. C., and Bush, R. F. (2010). Marketing
8. U.S. Travel Association. (2015). U.S. travel answer Research (6th ed.). Upper Saddle River, NJ: Pearson/
sheet. Retrieved https://www.ustravel.org/answer- Prentice Hall.
sheet. 21. Hsu, C. H. C., Killion, L., Brown, G., Gross, M.
9. Baranowski, S. (2007, March). Common ground: J., and Huang, S. (2008). Tourism Marketing: An
Linking transport and tourism history. Journal of Asia-Pacific Perspective. Milton, Australia: John
Transport History, 28(1), 120–243. Wiley & Sons Australia.
10. Outbound tourism market becomes spotlight of 22. Miller, G., Rathouse, K., Scarles, C., Holmes,
industry. (Retrieved 2004, July 20). Xinhua (China). K., and Tribe, J. (2010), Public understanding of
Available at: http://www.xinhua.org. sustainable tourism. Annals of Tourism Research,
11. O’Brien, A. (2012). Wasting a good crisis develop- 37(3), 627–645.
mental failure and Irish tourism since 2008. Annals 23. (1992). Code of ethics: Hospitality service and
of Tourism Research, 39(2), 1138–1155. tourism industry. In Stephen S. J. Hall, ed., Ethics
12. Tourism 2020 vision. (2008). Available at: http:// in Hospitality Management. East Lansing, MI:
www.unwto.org/facts/eng/vision.htm. Education Institute of the American Hotel and
Motel Association.
13. Ward, S. (October 10, 2011). The virtues of travel-
ing light. Barrons, XCI(41), 25, 27.

M01B_COOK4488_06_SE_C01.indd 34 06/03/17 8:46 PM


International Examinations

Career Award

Travel and Tourism


Standard Level

Ann Rowe, John D. Smith


and Fiona Borein
PUBLISHED BY THE PRESS SYNDICATE OF THE UNIVERSITY OF CAMBRIDGE
The Pitt Building, Trumpington Street, Cambridge, United Kingdom
CAMBRIDGE UNIVERSITY PRESS
The Edinburgh Building, Cambridge CB2 2RU, UK
40 West 20th Street, New York, NY 10011–4211, USA
477 Williamstown Road, VIC 3207, Australia
Ruiz de Alarcón 13, 28014 Madrid, Spain
Dock House, The Waterfront, Cape Town 8001, South Africa
http://www.cambridge.org

© Cambridge University Press 2002

This book is in copyright. Subject to statutory exception


and to the provisions of relevant collective licensing agreements,
no reproduction of any part may take place without
the written permission of Cambridge University Press.

First published 2002

Printed in the United Kingdom at the University Press, Cambridge

Typeface: Meridien 10/13.5pt. System: QuarkXPress®

A catalogue record for this book is available from the British Library

ISBN 0 521 89235 X paperback


Contents
Introduction 1

Part 1 The Core Module


1 The travel and tourism industry 3
● The structure of the international travel and tourism
industry 3
● Social, cultural, economic and environmental impacts
of travel and tourism 15
● Role of national governments in forming tourism policy
and promotion 23
● Patterns of demand for international travel and tourism 25

2 Features of worldwide destinations 31


● The main global features 31
● Time zones and climates 35
● Travel and tourism destinations 40
● What attracts tourists to a particular destination 50

3 Customer care and working procedures 64


● Dealing with customers and colleagues 64
● Essential personal skills required when working in travel
and tourism 69
● Handling enquiries, making reservations and receiving
money 74
● Using reference sources to obtain information 82
● Presentation and promotion of tourist facilities 86

4 Travel and tourism products and services 88


● Tourism products and ancillary services 88
● The roles of tour operators and travel agents 94
● Support facilities for travel and tourism 98
● Worldwide transport in relation to major international
routes 106
Contents

Part 2 The Optional Modules


5 Marketing and promotion 118
● Role and function of marketing and promotion 119
● Market segmentation and targeting 123
● ‘Product’ as part of the marketing mix 124
● ‘Price’ as part of the marketing mix 127
● ‘Place’ as part of the marketing mix 129
● ‘Promotion’ as part of the marketing mix 131

6 Travel organisation 135


● Travel providers 135
● Methods of travel 138
● Sources of information 148
● Ancillary travel services 152
● Planning a travel itinerary 156

7 Visitor services 164


● The role and function of tourist boards and tourist
information centres 165
● Provision of products and services 171
● Marketing and promotion 173
● Quality control 175
● Business travel services 178
● Leisure travel services 181

Examination techniques 184


List of useful websites 186
Glossary of terms 187
Acknowledgements 192
Index 193
Part 1 The Core Module

The travel and 1


tourism industry
Learning outcomes
In this chapter you will look at the structure of the international travel
and tourism industry. By the end of the chapter you should be able to:

● explain the nature and structure of the travel and tourism industry
● describe the social, cultural, economic and environmental impacts
of tourism
● identify the role of governments in forming tourism policies
and promoting tourism
● describe the patterns of demand for international tourism

This chapter covers Section A of the Core Module.

The structure of the international travel and tourism industry


We begin by looking at all the main organisations involved in the travel
and tourism industry. This forms the foundation for all the other topics
covered in this book and explains some of the key terms that you will
need to understand.

What is travel and tourism? To use the example of the World Tourism
Organisation (WTO) – affiliated to the United Nations and recognised as
the leading international body on global tourism – tourism is:

the activities of persons travelling to and staying in places outside


their usual environment for not more than one consecutive year for
leisure, business and other purposes.
World Tourism Organisation, 1993

Therefore the people who are considered to be ‘tourists’, are those


who are:
● away from their normal place of residence for a period of up to one
year (but will return home);
● taking part in activities that would normally be associated with leisure
and tourism;
● on a visit that is temporary and short term;

3
Part 1: The Core Module

● not necessarily away from home overnight as they could be on a day


trip or excursion;
● away from home but not necessarily on holiday, as they could be
away on business.

‘Travel and tourism’ does not necessarily involve travelling abroad. Much
tourism takes place within people’s home country, on visits to attractions,
city breaks, trips to business meetings, sports events or concerts, and visits
to friends and relatives (abbreviated as VFR).

There are three main types of tourism: domestic tourism, incoming or


inbound tourism and outbound tourism. We will look at each in turn.

Domestic tourism
This is when people take holidays, short breaks and day trips in their
own country. Examples would be:
● a couple taking a weekend break in their own country;
● the supporters of a football team going to an away game featuring
their local team;
● a family visiting relations in another part of the country, even if they
live only a few miles away.

If we take figures from the British Tourist Authority for 2000, we find
that British people made a total of 174.5 million trips within the UK,
broken down as follows:
● 106 million were on holidays;
● 23.7 million were on business;
● 40.6 million were visiting friends or relatives;
● 5.1 million were for other miscellaneous reasons.

Incoming/inbound tourism
This describes people entering the country in question from their home
country, so it is a type of international tourism. Examples could be:
● a party of Japanese visitors coming to Europe on a trip;
● teams from different countries entering a country for an international
event, such as the Olympic Games;
● families from Pakistan entering England to visit relations.

For the UK, the British Tourist Authority statistics show that 25.2 million
overseas visitors came in 2000, spending £12.6 billion in the UK.

4
The travel and tourism industry

Outbound tourism
This term applies when people travel away from their home country to
visit other international countries for leisure or business. Examples of this
could be:
● a family from Belgium going on holiday to Austria;
● business people from the UK travelling to America to visit a major
exhibition;
● a day tripper from southern Malaysia visiting Singapore.

Using BTA figures for 1999, UK residents took 50.9 million visits abroad,
of which 42.8 million were for leisure and 8 million were for business.

The following table summarises the range of reasons for travelling: Reasons for travel

LEISURE TOURISM VISITING FRIENDS AND RELATIVES (VFR) BUSINESS TOURISM

Holidays Visiting elderly relatives Business meetings


Health and fitness Social visits to friends and relatives Exhibitions and
Sport Wedding celebrations trade fairs
Education Conferences and
Culture and conventions
religion Incentive travel (given
Social and spiritual by businesses as
rewards for sales
or achievement in
that business)

Activity
Contact your national tourist board to obtain the figures for
domestic tourism, inbound/incoming tourism and outbound tourism
over the past few years. Using these figures, discuss the reasons for
any possible changes and consider the effects on the economy of
your country if tourism is increasing.

In order to assist people with their travel arrangements, there are


specialist travel service providers. These include travel agencies who
retail travel products direct to the individual or groups and business
travel agencies who specialise in providing travel for the business
customer or promoting conference trade. Tour operators provide a
package for the individual and principals provide the basic services
required by the travel and tourism industry. It is possible to divide the
components of the travel and tourism industry into six key areas, as
represented in Figure 1.

5
Part 1: The Core Module

Figure 1
Components of travel
and tourism

We will look at each of these in more detail. Travel agents provide


a customer with advice and professional guidance on the choice of
a holiday or to purchase travel products. The main aims of travel
agents are:
● to sell holidays and associated products like insurance, car hire
and currency exchange;
● to provide information;
● to advise clients.

To do this they also provide the additional services that are outlined in
Chapter 2: ‘Features of worldwide destinations’. They sell their products
in the same way as other high street shops, so they advertise their
products and special offers to supply customers with what they want.
They act as agents for the suppliers of industry products or ‘principals’
such as airlines, rail companies, hotels, ferry and cruise companies, car
hire companies, tour operators, and foreign currency suppliers. They earn
their income from the commission paid by these principals. They supply
brochures to potential customers for them to browse through and then
take bookings along with any deposits or payments. They will use
computer reservations systems or viewdata systems to investigate
availability and the costs of any planned journey or holiday and advise
on the suitability of the accommodation or transport to meet the
customers’ needs.

Another type of travel agent is the business travel agent who


specialises in arranging accommodation and transport specifically for the
business traveller, whether this is to attend conferences, develop new
business or visit existing or new suppliers. Agents arrange flights, transfers
and accommodation suitable for the business traveller. Some large companies
have their own travel agencies at their headquarters to organise the
travel needs for the company. This is only beneficial when a company
undertakes a large volume of business travel and tends to happen in large

6
The travel and tourism industry

multi-national companies. You may also wish to refer to pages 94–8 in


Chapter 4 for more detail on travel agencies.

A tour operator puts together holiday packages which consist of:


● travel (road, rail, sea, air)
● accommodation (hotels, guesthouses, self catering villas or
apartments)
● travel services (transfers to and from the destination airport, car hire,
excursions).

The package holidays offered may cover a wide range of destinations,


both national and international, and can cover a variety of holidays, such
as cruises, adventure, touring, winter and summer destinations. The tour
operators act as the ‘wholesalers’ in the travel industry, as they produce a
package holiday and then negotiate with travel agencies the commission
they will receive to sell these to the end user, the customer.

There are two types of tour operator: the wholesale operators, who put
together and operate tours only through retail travel agencies; and the
direct sell operators, who market their products direct to the public (in
other words they do not use travel agencies to promote their products).

Tour operators may specialise in a particular type of product – some only


offer holidays within the home country, others operate only in a
particular field, such as cruises, whereas others cover a wide range of
holiday opportunities. Incoming tour operators or inbound handling
agents specialise in tours for overseas visitors in the home country thus
earning money for the national economy. Examples of worldwide tour
operators are American Express and Thomas Cook, though there are
others such as Kuoni and Preussag.

The tour operator will cost the package to include travel and
accommodation and also produce brochures, employ and train staff
(such as holiday representatives or tour directors). They undertake
market research on not only the type of holiday in demand but which
principals to use, and maintain their central reservations systems and
customer support.

The principals within the industry, as previously mentioned, include the


transport, accommodation and attraction providers. These provide the
finance required to operate the product and act independently of tour
operators or travel agencies, earning their income from sales, whether to

7
Part 1: The Core Module

individuals or tour operators. They supply the initial product, whether it


is hotel accommodation, an airline, catering or an attraction.

Of the principals in the industry, transport providers are those


operating any major form of transport. These would include the airlines
(such as Cathay Pacific, Emirates or American Airways) providing the
seats which an individual traveller, business person or tour operator may
purchase. The airlines may be scheduled airlines operating to a timetable
from large regional and national airports, or they may be chartered
airlines. These are defined and discussed in more detail on pp. 138–9 of
Chapter 6: ‘Travel organisation’.

Ferry operators are another type of transport principal. Ferries provide


vital links between groups of islands, or islands and a larger land mass
(such as those which operate across the English Channel between the UK
and Europe, or those which operate from the Greek mainland to its
many islands). These services are provided for all travellers, not just
tourists, but tickets are also sold to tour operators, through travel
agencies or direct to the customer.

Rail companies, whether national organisations or privately owned rail


companies, are also transport principals, and provide a scheduled service
within the home country. Seats may be reserved by individual or
business travellers either direct with the provider or through travel
agencies. Tour operators may reserve seats for specific groups of travellers
on a particular route. An example of this would be a tour operator
booking seats on the Rocky Mountaineer, a scenic train which runs
through the Canadian Rocky Mountains. Any seats not used by the tour
operator would be available to the general public to purchase on an
individual basis.

A tourist’s choice of transport would depend on:


● price
● destination
● time – how much is available
● reason – visiting family or friends, business or leisure
● departure points – how easy it is to get there
● convenience.

In order to encourage more people to buy their holidays, many tour


operators will provide flights from more accessible regional airports either
direct to the final destination or to one of the major international airports
which operate long-haul flights.

8
The travel and tourism industry

Many travellers wish to be independent at their destination and so


require the services of car hire principals who provide cars of varying
specifications to suit different group sizes and budgets. These may be
hired independently through international chains, such as Hertz or Avis,
to be available at the point of arrival for the period of the booking, or
may be hired through travel agencies and tour operators. Many tour
operators now promote self-drive holidays, where the flight and car hire
are included but the more independent travellers buy their own
accommodation in the destination country. Business travellers may also
require car hire in order to visit customers in the destination country, so
the business travel agency could make a booking.

Accommodation principals are those who build and staff hotels, villas,
apartment resorts or holiday cottages which are available to any traveller.
Some of these are major international chains such as Marriott Hotels,
Holiday Inn, Comfort Inns and Hotels; others are smaller providers who
may only own one or a small chain of hotels. The accommodation may
be marketed individually by the provider or rooms purchased by a tour
operator in order to make up a package holiday often at a special rate.
The benefit to the accommodation provider of selling through a tour
operator is that they have a more guaranteed occupancy rate throughout
a holiday season. Otherwise they may have to spend large amounts of
money on advertising in order to attract sufficient individual customers to
make a profit.

Accommodation is divided into two basic categories: serviced


accommodation (where meals are provided such as in hotels and
guesthouses) and self-catering accommodation (such as cottages, chalets
and apartments where the occupants provide their own food). Tourists
can also reserve accommodation on different terms such as:
● bed and breakfast (where the price only includes the provision of bed
and breakfast which may be cooked, buffet style or continental);
● half board (with bed, breakfast and either lunch or evening meal
included in the price);
● full board (where accommodation and all meals are provided);
● all-inclusive (which includes accommodation, all meals, snacks and
beverages for the period of the stay).

Within the tour operator’s brochure, there will usually be some statement
as to the accommodation and catering included in the cost. This will help
the tourist to budget for the package holiday, knowing what is included
and what must be paid for separately.

9
Part 1: The Core Module

Figure 2 shows some examples of marketing by different principals in the


Figure 2 travel and tourism industry. These are all taken from a national
Examples of marketing newspaper in the UK and are aimed at the individual traveller, rather
by principals than one who makes a booking through a travel agency.

10
The travel and tourism industry

Though accommodation is a major feature of travel and tourism, visitors


require catering facilities, and principals within the industry include
those providing a variety of outlets for food and refreshment. Whether a
visitor is only away for a few hours, or for a longer holiday, food and/or
drink will be required and these can be found at a variety of outlets.
Airlines, ferries and rail principals will usually provide some form of
catering and outlets will also be provided at airports or terminals. Visitor
attractions often provide a variety of catering outlets which may include
a cafeteria, self-service food selection area or a restaurant with waitress
service. Even cinemas and theatres may sell snacks, ice creams or
confectionery and drinks.

Major resort areas and hotels provide a wider choice of catering facilities,
ranging from fast food outlets (such as Macdonalds, Wimpy, Pizza Hut
and other international chains) to restaurants providing various meals
from different ethnic regions (such as Indian, Chinese, French and Italian
food). There could also be cafeterias where snacks and meals can be
purchased plus bars and coffee shops. Even large shopping malls and
sporting venues provide catering outlets for the convenience of
participants and spectators.

The principals who provide attractions for the visitor will need to have
undertaken market research to establish the need for the attraction in
that particular location and its potential audience. Attractions may be
purpose built, such as Disney theme parks in California, Florida or Paris,
or they may be part of a nation’s cultural heritage, such as the Louvre
Gallery in Paris, or Sydney Opera House in Australia. They may also be
created for a purpose, for example zoos, rare animal parks and sea-life
centres set up to conserve and display animals and birds. Other
attractions may relate to the industrial heritage or scientific development
of a country. Some large companies allow visitors to tour their factories
or manufacturing plants. An example of this is Cadbury World in the UK,
the manufacturing base of Cadbury’s chocolates, where visitors can see
chocolate being made as well as be entertained with rides and purchase
goods in the factory shop. Another example is the Corning Museum of
Glass, outside New York in the USA, where visitors can watch glass-
blowing demonstrations, see and touch examples explaining the history
of glass and visit a café and factory shop.

Many newly developing countries and resorts see the need to have one
or more visitor attraction in the area in order to widen their appeal and
attract a larger number of tourists. Even those resorts which have
previously relied on tourists who want a beach holiday, are now

11
Part 1: The Core Module

developing alternative attractions to offer more variety to the holiday


experience.

Whatever the attraction, its aim is to appeal to as many customers as


possible in order to make a profit and invest further in its development or
improvement. Marketing is largely undertaken by the management of the
attraction itself. It may be done in various ways – through the media
(television, radio or newspapers), or by offering tour operators specific
discounts to include the attraction as part of a package holiday or tour.

Activities
● Using one or two copies of your national newspaper, locate
advertisements placed by as many principals in the travel and
tourism industry as you can. Consider whether these
advertisements are targeted at the individual or group traveller.
● Identify the main attractions in your country or area and
investigate the number of visitors each has received over the past
10 years. If any of you have visited any of these attractions,
present a report to your group on the type of experience you had
and the most and least enjoyable aspects of your visit. Suggest
any attractions or catering outlets which you consider would
benefit your local area.

Tourists are generally classified in statistics according to the duration and


purpose of their journey. If tourists are away from home for a day or less
and do not need accommodation they are classified as day trippers. If
the stay includes accommodation then they may be classified by their
length of stay, such as one night or more. Length of stay statistics are
often grouped into stays of one night, of between two and four nights, a
week, two weeks, one month, and so on. Also visitors may be classified
as to whether they are touring for business or leisure purposes.

These data can then be analysed to identify trends within the industry
that will affect not only the marketing by the principals and tour
operators, but also the economy of the country. This will be looked at in
more detail later in this chapter.

Many countries with an established or significant travel and tourism


industry, or those who wish to increase the national income by
promoting tourism further, are likely to have a separate department of
government or a public body responsible to government for this purpose.
These bodies are known as National Tourism Organisations or NTOs.

12
The travel and tourism industry

In the UK, the NTO is the British Tourist Authority, and its mission is to
build the value of inbound tourism to Britain, generating additional
revenue throughout Britain, throughout the year. It operates in 27
overseas markets, working in partnership with the national tourism
boards of England, Scotland, Wales and Northern Ireland, and gathers
essential market intelligence for the tourism industry. It is funded by
grant aid from the government’s Department for Culture, Media and
Sport, and has partnership support from airlines, hotels, local authorities
and others to increase the marketing resources. It helps the tourism
businesses reach overseas customers cost-effectively.

A typical NTO will have four main areas of responsibility:


● marketing;
● research and corporate planning (i.e. undertaking market research and
deciding the policies and strategies for the organisation);
● development (looking at ways to develop tourism further, through
customer care and quality assurance, liaison over training, trade
relations and product development); Figure 3
● finance and administration (managing its budgets, corporate press and Examples of marketing
publicity, staffing and general administration functions including by National Tourism
information technology). Organisations

13
Part 1: The Core Module

As already mentioned, in the UK, the national tourism bodies (such as


Wales Tourist Board, Scottish Tourist Board etc.) work in close
partnership with the BTA (British Tourist Authority), and they in turn
work closely with regional tourist boards. There are ten regional tourist
boards in England who work closely with the local authorities or councils
and tourism principals in order to improve the provision and promotion
of tourist facilities and attractions in that region. Each local authority or
town council may also have an officer responsible for the promotion of
Figure 4
tourism within that smaller area, who will have the benefit of more
National Tourism specific knowledge of the needs of that smaller area. To try and make this
Organisation for clearer, study the following diagram and compare this with the operation
the UK of the NTO in your area.

British Tourist Authority

Scottish Tourist English Tourism Northern Ireland Wales Tourist


Board Council Tourist Board Board

North West
Tourist Board
(One of 10 regional tourist boards)
Members include:
Lancashire County Council (regional authority)
Blackpool Borough Council (local authority)
Blackpool Pleasure Beach (attraction provider)
Blackpool Hotels Association (accommodation providers)

Part of the role of the regional tourist boards is to provide information to


visitors when they are actually in that area. This is done through Tourist
Information Centres (TICs). These may be located at points of entry to
the areas (such as railway or bus stations) or at central points in the
towns or cities, often with signs directing visitors to them. Inside the TIC
there will be displays of leaflets and brochures on local attractions,
entertainment venues and events, and possibly details about public
transport such as timetables for buses and rail travel within the local area.
There may also be a touch-screen facility enabling visitors to locate
particular places of interest. One of the services provided by the TIC is
information on accommodation in the area and many are able to take
bookings on behalf of local hotels and guesthouses for a small deposit.

14
The travel and tourism industry

You will find more information on TICs in Chapter 6 (see pp. 149–50).
You could also visit your local TIC to find out what services and
information it provides to visitors.

Another ancillary service within the industry is the provision of tourist


guiding services. These may come in the form of guides or tour
directors who accompany groups of tourists round an attraction or on a
specific tour provided by an operator (such as a coach tour). They are
selected because of their knowledge of the specific area and also their
ability to organise and manage people, so their skills must include good
communication and administration. They may be required to deal with
customer complaints and negotiate with other providers, such as the
coach company, hotel accommodation if this is provided and excursion
providers whilst on a tour.

Other types of guiding services include those specifically located at an


attraction, such as museum guides. They usually have a specific, detailed
knowledge of the attraction in question, and may be able to conduct
tours in a particular foreign language to help visitors from overseas who
do not speak the local language.

Some attraction providers now supply audio packages in various


languages which can be hired by visitors for the duration of their visit.
These audio tapes guide the visitor round the attraction and describe
exhibits or features along the selected route. These can actually be more
cost-effective for providers than employing guides, though they do lack
the personal touch. Some cities also provide ‘walking guides’ who
accompany small groups of visitors round an area, pointing out places of
interest. These tend to be people local to the specific area who know it
well, have been suitably trained and hold a tour guide qualification.

Social, cultural, economic and environmental impacts of


travel and tourism
Social and cultural impacts of tourism
Tourism may have many different effects on the social and cultural
aspects of life in a particular region or area, depending on the cultural
and religious strengths of that region. The interaction between tourists
and the host community can be one of the factors that may affect a
community as tourists may not be sensitive to local customs, traditions
and standards. The effect can be positive or negative on the host
community.

15
Part 1: The Core Module

Positive impacts on an area include such benefits as:


● local community can mix with people from diverse backgrounds with
different lifestyles which through ‘demonstration effect’ may lead to
the development of improved lifestyles and practices from the tourists’
examples;
● there can be an improvement in local life through better local facilities
and infrastructure (developed to sustain tourism) which could lead to
better education, health care, employment opportunities and income;
● more cultural and social events available for local people such as
entertainment, exhibitions etc.
● improved sports and leisure facilities created for the tourists which
local people may use, particularly out of the tourist season;
● conservation of the local cultural heritage of an area and rebirth of its
crafts, architectural traditions and ancestral heritage;
● urban areas which may be in decline can be revived and the
movement of people from rural areas to urban areas for employment
may be reversed as jobs will be available in the tourism industry;
● increase in youth exchange programmes, village tourism, home swap
programmes and voluntary work overseas.

Dubai is a good example of a tourist destination where the development of


tourism has had positive effects on the social and cultural life of the area.
As you will see in the case study in Chapter 2 (pp. 40–9), considerable
financial investment by both public and private sectors has led to
improvements in the infrastructure and to job creation. Archaeological and
heritage sites are preserved, and local traditions maintained. The hospitable
culture of the Arab world and acceptance of others’ lifestyles means that
tourists are welcomed but do not threaten existing ways of life.

However, tourism may have negative effects on an area, such as:


● the infrastructure (roads, railways, health care provision) may not be
able to cope with the greater numbers created by tourism;
● poor sanitation may lead to diseases for both tourists and local
population;
● local population’s activities and lifestyles may suffer intrusion from
tourists leading to resentment towards tourists;
● the local population may copy lifestyles of tourists through the
‘demonstration effect’ and the result could be a loss to local customs
and traditions as well as standards of behaviour;
● there could be a loss of native languages and traditions leading to the
area losing some of its original appeal;
● increased crime could develop through a decline in moral and
religious values, leading to greed and jealousy of wealthier visitors;

16
The travel and tourism industry

● traditional industries may be lost and local goods substituted by


imported and mass-produced goods which lack authenticity but appeal
to a mass market;
● tourists may act in an anti-social manner which could cause offence to
the local population. Unless sufficient information is provided by the
host nation and tourist providers on the standards of behaviour
expected in that area, local populations may come to resent tourists
and act aggressively towards them, or the host community adopts the
same anti-social behaviour;
● tourists may be unprepared for social contact and interaction with the
host community (particularly in large self-contained resort areas)
which leads to resentment and constraint in the host community;
● there may be language barriers between the tourist and the host
community which may create communication problems.

Providing careful planning is undertaken in an area where tourist


development is being considered and the host community fully involved
in that planning, many of these negative factors can be overcome.
However, some of the negative factors may take some time to become
apparent in the host community so planners need to research tourist
development and its effects to try and prevent problems arising.

Economic impacts of tourism


The major benefit of tourism for a region or country is economic as it
provides an opportunity for job creation and generation of revenue at
international, national, regional and local levels. Tourism can also benefit
economies at regional and local levels, as money comes into urban and
rural areas which in turn stimulates new business enterprises and
promotes a more positive image in an area. As an example, we could
look at figures for the UK to show the level of spending on tourism
in 2000:

Spending on
Spending by visitors from overseas £ billion tourism in 2000
Visits to the UK 12.8
Fares to UK carriers 3.5

Spending by domestic tourists


Trips of 1+ nights 26.1
Day trips 32.7

17
Part 1: The Core Module

In the UK tourism accounts for around 4 per cent of GDP (Gross


Domestic Product) and employs 1.8 million people. (Gross Domestic
Product is the total value of goods and services produced in the country
plus its net revenues from abroad. Studying the contribution of tourism
to a country’s GDP can give an indication of the importance of tourism in
relation to other industries in that country.) Globally, the World Travel
and Tourism Council indicated that in 1996 tourism generated a total
output of US$3.6 trillion and contributed 10.7 per cent of global Gross
Domestic Product. Many governments now actively promote tourism in
order to bring foreign currency into a country and generate more wealth
for that country. The income generated helps the national balance of
payments, earning revenue through direct taxation, as well as from
indirect taxes on goods and services purchased by tourists.

When an area develops as a tourist destination, the local economy


benefits because new jobs are created and visitors bring more business to
local shops and restaurants. The income generated can then be used to
improve local services, whether by developing better transport and
infrastructure, or by providing more facilities for residents and visitors,
such as leisure centres, shopping areas and entertainment or attractions.
This is known as the ‘multiplier effect’.

Activity
Look at the pie chart below, showing the domestic and overseas
tourist spending breakdown for the UK in 1999. Obtain similar
statistics for your own area and compare the percentages in each of
the principal areas.

Total £28,748 million


Eating out £6,755mn
Entertainment £1,277mn 23.5%
4.4%

18.9% Services etc


Shopping £5,434mn £977mn
3.4%

1% 14.7%
Others £297mn Travel within UK
£4,225mn

Figure 5 34%
UK tourist spending Accommodation £9,782mn
breakdown, 1999
Source: www.staruk.org.uk, sponsored by the National Tourist Boards and the Department
for Culture, Media and Sport

18
The travel and tourism industry

The balance of payments is a statement which shows the flows of


international currency and capital items to and from a particular country.
Items are classed as either ‘visible’ or ‘invisible’. Visibles are items which
can be seen – such as cars, electrical products or raw materials – and
invisible items are those which cannot be physically seen – such as
shipping, banking, tourism and insurance. The tourism balance of
payments for a particular country is the figure which shows all the
earnings from overseas visitors, less any payments made by its own
residents who travel abroad.

If we use the figures for the UK we can see how the tourism balance of
payments has changed over a period of time:

Spending on
1975 1987 1996 1997 1998 tourism 1975–98, in
Money spent in UK 1,218 6,260 12,290 12,244 12,671 £ millions
by overseas residents

Money spent abroad 917 7,280 16,223 16,931 19,489


by UK residents

Balance on travel 301 −1,202 −3,933 −4,687 −6,819


account
Source: National Statistics for the UK

Using these figures, it is evident that the tourism balance of payments for
the UK is in deficit (i.e. more money is going out of the country than
coming in) and obviously the BTA has the target to improve this balance
and reduce the deficit. One of the problems for the UK is that most
regional tourism tends to be seasonal. In other words it is affected by
weather patterns, with the bulk of tourism occurring in the summer
months, though London and other larger cities may attract visitors
throughout the year. Other countries may also be affected by weather
patterns, such as monsoon or hurricane seasons, or some may attract
particular types of visitors in specific seasons, such as ski and winter
sports resorts.

The multiplier concept is the term used to calculate the benefit of


tourism income to a particular region. Money spent by tourists in a
destination area has both direct and indirect economic benefits.
Enterprises which offer tourist facilities, such as hotels, attractions and
transport operators, benefit directly from tourist spending. Other
businesses may also benefit from the presence of the tourist, such as
shops, banks, and businesses which provide goods and services for the
tourist (like laundries and food suppliers). If visitors to London, for

19
Part 1: The Core Module

example, stay overnight, they will have to pay the hotel for the
accommodation. The hotel uses this income to pay its staff and suppliers.
Those staff will spend some of their wages in local shops and the
suppliers will pay their own staff. So the money is circulating in the
area and thus creating more wealth in that area for other businesses.
However, a portion of the visitor’s payment to the hotel is lost to the
area, through taxation paid by the hotel to the government, or to
suppliers outside the local area. This is known as ‘leakage’ from the
local economy.

A small local restaurant is more likely to have a higher income multiplier


effect, as it would use local staff and probably local suppliers. But a large
city-centre hotel may be part of a national or international chain, and
goods and services may be purchased centrally by the organisation, so
less of the income earned by the hotel is spent in the local area.

Tourism is a very people-oriented business, therefore the opportunity to


create employment in an area is one of the attractions to governments.
If an area has suffered from declining industries and levels of
unemployment are high, tourism could be a way of revitalising that area
and creating employment. But the skills needed within the industry may
not be the same as the traditional industry, so efforts are made to retrain
and recruit those with the necessary expertise (such as communication,
personal presentation or specific catering qualifications, for example).
Some of the employees may need to be relocated to the developing area,
particularly where there are skills shortages, but others will be employed
locally. Other local residents may see an opportunity to become self-
employed and develop their own business in the tourism sector. An
example of this may be the owner of a farm in a declining area
converting buildings into holiday cottages, or a fisherman unable to earn
sufficient income through fishing alone offering boating or fishing trips to
visitors round the local coastline.

Direct employment in tourism occurs in accommodation and catering,


transport operations, travel agencies, tour operators, tourist attractions
and government departments (such as tourist boards and tourism
information centres, national parks and monuments, air traffic control
and lifeguards). Tourism employment opportunities may also arise more
indirectly, through areas such as customs and immigration officials at
land borders, ports and airports; and capital investment jobs (design and
construction of highways, airports, aircraft, hotels/resorts and cruise
ships, for example). Employment opportunities may also grow in areas
concerned with the supply and production of travel products (film

20
The travel and tourism industry

developers, sign makers, laundries, food producers and chemists,


for example).

The negative impact of employment within the tourism industry can be


that, as the work may be seasonal, the employees may not have the same
loyalty and commitment to the job, and take little interest in gaining skills
and qualifications in the industry. The hours can be long and the pay may
not always compete favourably with other industries, so potential
employees may not see their work as a career opportunity. This can have
an effect on the way tourists experience an area. Poor service or an
otherwise unfavourable experience may affect a tourist’s enjoyment of
an area. The tourist is unlikely to return to that area and may tell others,
thus creating a decline in demand affecting other tourism providers in
that area.

Tourism is considered to be a growth industry, but if potential visitors do


not have the income to spend on tourism, a negative aspect could be a
recession in tourism. If a developing country is over-dependent on
tourism, then the economic and social problems caused by a recession in
the industry could be great. Governments need to develop strategies to
reduce over-reliance on tourism employment to minimise these effects. A
further aspect of over-dependence is that employees may be attracted to
employment in tourism-related work and leave their traditional primary
industries, particularly in developing countries. This has the effect of loss
of labour in those traditional industries, causing labour supply problems.

Another negative impact of tourism can be inflation in prices of goods


and services in an area, which causes difficulties for the local residents.
The businesses catering for the tourist may increase their prices to attract
more revenue but the local population may not be able to pay these
higher prices. Prices of houses in a popular tourist area may rise, so local
people may no longer be able to afford to buy there. This can happen
where houses are purchased as second homes or holiday villas meaning
they are no longer available to local residents. A social difficulty could
arise as younger people may be forced to move from the area in order to
be able to purchase a property. Local shops and businesses may decide
to cater more for the tourist market, thus reducing the facilities and choice
for local inhabitants who may need to travel further for basic supplies of
goods. If an area is spending money on the development of facilities for
tourists, such as hotels or roads, then there is less money available
for other capital projects such as schools and hospitals which an area
may need.

21
Part 1: The Core Module

Environmental impacts of tourism


An attractive environment appeals to tourists, whether natural or built,
and the development of tourism in a locality will relate to the
surrounding area. The term ‘environment’ refers to the physical setting in
which tourism takes place – this could be coastal resorts, historic cities,
mountain ranges, picturesque villages, sites of cultural interest including
museums and national monuments – and which provides the stimulus
for travel.

Tourism itself will affect the environment in both positive and negative
ways. The following lists summarise these effects:

The positive effects may include:


● increased investment in the area (may improve facilities, access and
enable development);
● conservation of features encouraged (buildings, wildlife, countryside);
● increased income for upkeep and preservation of facilities.

On the other hand, negative aspects could include:


● appealing environment spoilt by over-development;
● local people displaced due to development of coastal resorts;
● damage to natural flora and fauna;
● scarcity or reduction in water supply/quality to meet tourism demands;
● increased litter and waste disposal problems;
● greater air pollution and noise from overcrowded facilities/increased
air traffic.

There are pressure groups who campaign to preserve the environment


and try to prevent over-development, such as Friends of the Earth and
Tourism Concern. Government departments in many countries aim to
achieve sensitive tourism development that is respectful of local
environments and customs. The more involved a local community is with
the development of tourism in an area, the less damaging the impact of
tourism may be on that area. However, the local community may see the
benefits of tourism development without being fully aware of the
negative effects or costs to the community. Or they may focus on the
threats to the environment without seeing the positive aspects. This is
where local tourism forums (such as regional tourist boards) can help
focus the issues and provide an opportunity for discussion and analysis as
well as raising public awareness.

22

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