Chapter 3 Tourism

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

After Reading and Studying This Chapter, You Should Be Able to:

Define tourism Outline the important international and domestic tourism organizations Describe the economic impact of tourism Identify promoters of tourism List reasons why people travel Describe the sociocultural impact of tourism Describe ecotourism

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Characteristics

Year-round economic driver Accounts for 10.2% of world GDP 7.8% of global workforce Employer of 200 million people or 7.8% of the global workforce Spending on tourism is $72.3 billion Leading producer of tax revenues
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

Tourism Offers Greatest Global Employment Prospects

Trend factors The opening of borders despite security concerns An increase in disposable income and vacations Cheaper and more exclusive flights An increase in the number of people with time and money to travel More people with the urge to travel

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

The World Tourism Organization States:

Tourism comprises the activities of

people traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business, and other purposes.
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

Tourism Can Be Categorized by the Following Factors:

Geography Ownership Function Industry Motive

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

Airlines

Change occurred in 1978 Purpose is to allow a free market of competition (fare structures) Change in companies and the way airlines are doing business
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

Changes Seen Since September 11, 2001

Business travelers spend less Airlines fuel costs, pensions and security costs are on the rise Major airlines are laying off employees Delivery of new jets is delayed Closing hubs, reservation and maintenance centers to cut costs
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

The Hub-and-Spoke System

Enables passengers to travel from one smaller city via another smaller city via a hub Hubs are the centers for connections around the world Benefits

Airlines can service cities at a lower cost Airlines can maximize passenger loads from small cities, thereby saving fuel

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Figure 3-1

The Hub-and-Spoke System

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Cruise Ships

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

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Figure 3-3

Passengers Taking a Cruise Longer Than 2 Days

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Cruise Market Segments

Mass market Middle market Luxury market

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

World and Domestic Organizations

Click on the links below for more information: World Tourism Organization International Air Transportation Organization International Civil Aviation Organization Organization for Economic Cooperation and Development Pacific Asia Travel Association Travel Industry of America World Travel and Tourism Council
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

Economic Impact of Tourism

International travelers spend about $72.3 billion on travel-related expenses in the US annually 20.8 million people are directly employed in the industry Travel generates $95.6 billion yearly in tax receipts Approximately 40 million international travelers visit the US each year
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

Multiplier Effect

New money spent by tourists is then re-spent by hotels and restaurants in the community for goods and services Leakage occurs when money must be spent outside the community for goods unavailable within the community
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

Figure 3-5

The Multiplier Effect

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Travel Agencies

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

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Corporate Managers

Work within a large corporation Can still work with travel agencies Can also be the meeting planner

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Wholesalers

Consolidated services

Airlines Other transportation carriers Ground service suppliers Tours Sold to the public
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

National Travel Offices

National Offices US now has an NTO Private organization Examples of other NTOs Canada Germany Australia
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

Destination Management Companies

Service organizations Meet the needs of their clients They sell destinations Meeting planners Incentive companies

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Reasons People Travel

To experience new and different surroundings To experience other cultures To rest and relax To visit friends and family To view, or participate in, sporting/recreational activities
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

Reasons for Anticipated Increase in Tourism

Longer life span Flexible working hours Early retirement Greater ease of travel Tendency to take shorter, more frequent trips Increase in standard of living
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

Appeal of Travel

Scenic beauty Pleasant attitudes of locals Suitable accommodations Rest and relaxation Airfare cost Historic and cultural interests Cuisine Water sports Entertainment Shopping facilities Sports
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

Trends in Business Travel

Companies are requiring employees to take the lowest reasonable airfare 37% of employees stay over a Saturday night when it will reduce the airfare 77% impose a size limit on rental cars, up from 70% 14% regularly make employees stay in economy hotels such as Hampton Inn or Courtyard by Marriott
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

Social and Cultural Impact of Tourism

Tourism pollution Cultural awareness Higher levels of employment

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Ecotourism

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

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Trends in Tourism

Ecotourism Number of tourist arrivals will continue to increase Governments will continue to recognize importance of tourism Increase in number of bi-lateral treaties
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

More Trends

Internet booking will increase Technology will continue to advance Marketing partnerships and corporate alliances will continue to improve Ticket-less air travel will become commonplace Managing destinations has become a challenge Increase in number of boutique airlines Increase in use of automatic airport check-ins
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

Even More Trends

Continued expansion in the cruise industry More alternate cruises Increased concern for health and safety of travel and tourism Increase in nature tourism

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458