HFT3700 Tourism Management by Tad Hara

Syllabus Introduction

Name Year (junior, senior etc) Major What you expect from this class?

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

Chapter One:

Introducing the Worlds Largest Industry, Tourism

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

Learning Objectives
Understand and explain the basic definition of tourism Identify the major participants and forces shaping the tourism industry Explain the historical factors that encouraged the development of tourism Explain the impact of physical, human, and regional geography on tourism activities Explain why tourism should be studied from marketing, management and financial perspectives Identify future challenges and opportunities facing the tourism industry Discuss career prospects in the tourism industry
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

Services and Tourism

Service and Tourism go hand in hand Growth rate of services sector faster than any other Tourism is the leader in the production of new jobs Tourism has developed an important part of the economic foundation of many countries
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

Tourism Globalization Quiz (1)

http://www.wttc.org/2004tsa/topten.htm

What countries are expected to produce the largest amount (absolute terms) of Travel & Tourism Economy GDP in 2004? (US$ million)
1 2 3 4 5 6 7 8 9 United States Japan Germany France United Kingdom Spain Italy China Canada

What countries are expected to produce the largest amount (relative terms) of Travel & Tourism Economy GDP in 2004? (& of total GDP)
British Virgin Islands Antigua and Barbuda Maldives Anguilla Macau Seychelles Bahamas Aruba Vanuatu 95.2 82.1 74.1 71.9 61.3 56.7 56.0 54.5 52.4

1,244,100.0 1 407,888.0 2 270,767.0 3 257,071.0 4 218,545.0 5 199,083.0 6 197,023.0 7 183,656.0 8 107,668.0 9

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved 10 Australia 71,844.4 10 Barbados 52.2

Tourism Globalization Quiz (2)

http://www.wttc.org/2004tsa/topten.htm

What countries are expected to generate the largest amount (absolute terms) of Travel & Tourism Economy Employment in 2004? ('000 of Jobs)
1

What countries are expected to generate the largest amount (relative terms) of Travel & Tourism Economy Employment in 2004? (% of Total Employment)
Antigua and Barbuda British Virgin Islands Anguilla Macau Seychelles 95.0 95.0 79.7 79.1 70.2

China India United States Indonesia Japan

62,310.0 1 24,456.6 2 16,688.1 3 8,519.9 4 6,526.1 5

2 3 4 5

6
7 8 9 10

Brazil
Russian Federation Germany Spain

5,401.3 6
4,891.0 7 4,057.4 8 3,762.8 9

Bahamas
Aruba Maldives Barbados

69.9
69.0 64.4 58.3

Cook: Tourism: The Business of Travel, 3rd edition 3,690.5 (c) 2006 Pearson Upper Saddle River, NJ, 07458. All Rights Reserved France 10Education, Saint Lucia 47.7

What is Tourism?
Tourism is 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

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

A Tourism Model
Dynamic and interrelated nature of tourism The traveling public (tourists) are the focal point (heart) of the model Tourism promoters link the traveling public with the suppliers of services Tourism suppliers provide the services that tourists need when they travel External forces affect all participants in tourism; tourists, promoters and suppliers

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

The History of Tourism

Early travelers migrated for food and hunting Phoenicians*, Olmecs**, early Chinese traveled for trade and military control The Empire Era
Affluent population with time and money to travel Safe and easy travel Widely accepted currencies Widely used languages Legal system which protects personal safety
http://home.cfl.rr.com/crossland/AncientCivilizations/Middle_East_Civilizations/Phoenicians/phoenicia ns.html

** http://www.crystalinks.com/olmec.html
Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

The History of Tourism, continued

The Middle Ages (5th to 14th centuries) and the Renaissance Era (14th to 16th centuries)
Transportation and safety declined Less acceptance of currencies and less knowledge of common languages Some travel by crusaders to Holy Land Marco Polos historic travels in the late 13th century Increased interest in travel for commerce and pleasure

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

The Travel of Marco Polo

Emperors and Kings, Dukes and marquises, Counts, Knights, and townsfolk, and all people who wish to know the various races of men and the peculiarities of the various regions of the world, take this book and have it read for you. Here you will find all the great wonders and curiosities of Greater Armenia and Persia, of the Tartars and of India, and of many other territories. Our book will relate them to you plainly in due order as they were related by Messer Marco Polo, a wise and noble citizen of Venice, who has seen them with his own eyes..(written in about 1260)

[Iraq]
.In Baghdad, the Caliph of all the Saracens in the world has his seat, just as the head of all the Christians in the world has its seats at Rome. Through the midst of the city flows a very large river, by which travelers may go to Indian Sea. It is in Baghdad that most of the pearls are pierced that are imported from India into Christendom. It is a great centre for the study of the law of Mahomet and of necromancy, natural science, astronomy, geomancy, and physiognomy. It is the largest and most splendid city in all these parts. Cook: Tourism: The Business of Travel, 3rd edition (c)
2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

[Japan] Japan is an island far out at sea to the eastward, some 1500 miles from the mainland. It is a very big island.They have gold in great abundance, because it is found there in measureless quantitiesAnd the value of it is almost beyond computation. (p212)

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

Tourism Today
It is still fascinating to travel to foreign places, even though you can guess how they look like. Please travel and spend good tourism dollars to stimulate local economy.

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

The History of Tourism, continued

The Grand Tour Era (1613 to 1785 A.D.)
Trend of luxurious travel started by wealthy English Developed as a status symbol and spread throughout Europe Goal was to experience the civilized world and study the arts and sciences These travels often lasted for several years Growth in travel for business reasons

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

The History of Tourism, continued

The Mobility Era (1800-1944)
Growing economic prosperity Increase in systems, modes, and speeds of travel (roads, railroads, steamships) Thomas Cook developed tour packages for mass travel Invention of automobile and airplane expanded freedom to travel

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

The History of Tourism, continued

The Modern Era (1945 to present)
Paid vacations introduced in the early 1900s made leisure travel possible for working and middle classes Millions of people were introduced to international travel during World War II Postwar prosperity made mass ownerships of automobiles possible Advent of jet travel shortened travel time Time, money, safety and interest in travel led to unparalleled growth of tourism Development of mass tourism

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

Bringing Tourism into Focus

Typical reasons for travel Vacation and leisure trips Visits to friends and relatives Business and professional trips Host community affected by tourism Can study tourism from a variety of perspectives Wide variety of questions relating to tourism need to be answered Technology having unprecedented affect on tourism industry

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

Geography Describes the Travelers World

Physical geography- study of natural features of region Human geography- study of a regions cultures and peoples Regional geographycombination of physical and human geography

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

Studying Tourism from Business Perspectives

Marketing Management Finance
See some examples: Oil

price level and our business environment

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

Tourisms Challenges and Opportunities

Encourage growth of tourism as it creates jobs and brings money into the community or country. It also serves an important need for the consumer. May change social structure

Unplanned tourism can lead to excessive demands of transportation, public services and degrade the environment.

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

Where do you fit in?

Projected to remain the worlds largest industry. Travel and tourism sales will grow at a rate of 4.1% a year through the year 2020. Have the choice of working in a really fun place!

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

Web Resources

I recommend those web sources for our study.

CIA World Factbook http://www.cia.gov/cia/publications/factbook/ World Tourism Organization (WTO) http://www.world-tourism.org/ Bureau of Economic Analysis, US Commerce Department http://www.bea.doc.gov/

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

Geographical Distribution of Terrorism Events

Cook: Tourism: The Business of Travel, 3rd Figure 1-1 "Patterns of Global Terrorism: 2000." edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved Source: U.S.State Departmenthttp://www.state.gov/s/ct/rls/pgtrpt/2000/

Figure 1-1 Regional Conflicts in the world at 21st Century

Cook: Tourism: The Business of Travel, 3rd Source: INCORE 2000, http://www.incore.ulst.ac.uk/cds/countries/ edition (c) 2006 Pearson Education, Upper Saddle NJ, 07458. All Rights ReservedCentury Figure 1-1 Regional Conflicts in River, the World at 21st

Tourism Industry
Tourism can be one of the few development opportunities for the poor. World Tourism Organization 2002

Police officers, emergency workers, and others survey the ruins of a nightclub after a bomb blast destroyed the club, killing more than 180 people and injuring more than 300 others in Denpasar, Bali, Indonesia, Sunday, Oct. 13, 2002. A second bomb exploded about 100 meters (109 yards) from the U.S. consular office in Denpasar, the capital of Bali, said Lt. Col. Yatim Cook: Tourism: The Business of Travel, 3rd Suyatno, police spokesman (AP edition (c) 2006 Pearson Education, a Upper Saddle River, NJ, 07458. All Rights Reserved Photo/Jack Hamilton)

Economic Impact of Terrorism

Facts About Bali: ECONOMY: Known as the Island of the Gods, Bali has been one of the world's most popular tourist destination for decades. The

Dead bodies line a street at the site of a bomb blast in Kuta beach on the resort island of Bali on October 13, 2002. Bombs ripped through a packed nightspot on Indonesia's traditionally tranquil tourist island of Bali overnight, killing at least 182 people, many of them foreigners. (Stringer/Indonesia/Reuters)

likelihood of the blast scaring away hundreds of thousands of tourists could be a devastating blow to not only the island's economy but that of the whole of Indonesia, which is struggling to
recover from the Asian financial crisis of the late 1990s. Sat Oct 12,10:33 PM ETBy The Associated Press

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved

Tourism Study

Managerial Perspective some dilemma

What to do with limited resources? Should Profit Maximization (in Corporate Finance) concept always hold? What will you, and should you do as a manager? http://www.nationalgeographic.com/travel/sust ainable/index.html

Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved