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Tourism City VITALITY Model
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Tourism as a source of city vitality
Prof. Alastair M. Morrison, Ph.D.
International Mayors’ Forum on Tourism 2012
September 28, 2012 ©2012 Alastair M. Morrison
Presentation outline
What is vitality?
Why is tourism a source of city vitality?
The tourism VITALITY model: Eight potential
contributions of tourism to a city
The 10 As of successful international tourism
destination cities
Tourism’s eight individual contributions
Summary
Definitions of vitality
V
I
T
A
L
I
T
Y
Energy or vigour
Ability to live and grow
Vibrancy or liveliness
Power to endure or sustain
Synonyms:
animation,
briskness,
exuberance,
jazziness,
liveliness,
lustiness,
peppiness,
robustness,
sprightliness,
vibrance,
vibrancy,
vigorousness
Antonyms:
inactivity,
lifelessness
The tourism VITALITY model
V
I
T
A
L
I
T
Y
Visitors & voters
Industrial diversification
Tax revenues
Attractiveness
Lifestyles & QOL
Income
Transportation
Yield
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Visitors & Voters
VITALITY
Visitors
Tourism brings out-of-town visitors to a city, in the thousands
or millions.
For example, Macau received 28 million visitors in 2011; San
Francisco welcomed 15.9 million visitors in 2010; and Beijing
hosted 200 million visitors in 2011.
Visitors
Voters
Because of the beneficial economic impacts and aesthetic
improvements to a city brought about through tourism, local
voter residents may be more satisfied with their lives in a city.
The U.S. Travel Association, for example, noted that each
U.S. household would have to pay $1,055 more in taxes
without the tax revenue generated by tourism. That kind of
statistic helps politicians get votes in elections.
Industrial diversification
VITALITY
Diversifying the economic portfolio
Economic diversification results from the development of
tourism in a city.
Other industries tend to come and go; but tourism tends to
prevail and grow.
Tourism brings “new money” into a city’s economy; it does not
merely “recycle” money from one economic sector to another
economic sector.
Income from tourism circulates several times in a city’s
economy.
Las Vegas and Macau
These are two well-known examples of cities that have been
completely transformed through tourism and mainly because
of casino gaming operations.
Casino gambling was legalized in Las Vegas in 1931;
gambling in Macau has been legal since the 1850s.
Las Vegas had 38.9 million visitors in 2011; 4.87 million were
convention delegates; Clark County received $9.2 billion from
gaming revenues.
Visitors to Macau had total expenditures of US$ 34.8 billion in
2011; $30.5 billion was spent on gaming expenses.
Waterfront development diversification
There are many great examples around the world of tourism
transforming waterfronts and replacing ports and other
traditional industries that were in decline or had failed.
The examples below are from Dubai; Port Louis, Mauritius;
and the Victoria and Alfred Waterfront in Cape Town, South
Africa.
Taxes
VITALITY
Tax generation for governments
The U.S. Travel Association estimated that tourism
directly generated $124 billion in tax revenues for
local, state and federal governments in 2011.
Statistics Canada estimated that tourism activities
generated CA$ 19.2 billion in government revenues
for Canada in 2009.
Phoenix case study on hotel tax
contributions
The Greater Phoenix CVB surveyed 41 hotels (45%
of total room capacity) in 2009.
These hotels contributed $169 million in total
property and sales taxes; or $6,300 per room.
School districts and community colleges received
$24 million of this to operate facilities.
Attractiveness
VITALITY
Not a smokestack industry
Attractiveness
The Guggenheim Bilbao Museum, Spain (Frank Gehry)
The Guggenheim Bilbao is
a great case study in how
tourism significantly
enhanced the
attractiveness of a city
and its surrounding
region.
A survey indicated that
79% of the people who
visited the Basque region
came with the intention of
seeing the Guggenheim
Bilbao.
962,358 visitors in 2011; 62% were foreigners
Festivals and events
Festivals and
events draw
tourists, add
vibrancy to a city,
and augment the
cultural offerings
for local residents.
The Edinburgh
International
Festival in
Scotland is a
great example.
270,000 people
attended the
Festival in 2010.
Shopping, markets and dining
Tourists as well as local citizens are attracted to market areas,
where they can shop, dine, and relax.
Salamanca in Hobart, Tasmania in Australia is a good example.
The 10 As of Successful Tourism
Destinations
Awareness
Attractiveness
Availability
Access Appreciation
Assurance
Activities
Appearance Action
Accountability
Lifestyles and Quality of Life (QoL)
VITALITY
Leisure, recreation and tourism are
intertwined City improvements intended to draw tourists also usually
appeal to and serve local residents.
Therefore, it’s hard to draw a line between leisure,
recreation, and tourism.
Chicago, Illinois is a great example of this point. It’s Lake
Michigan waterfront has developed into a major leisure and
recreation amenity for Chicagoans, as well as having
several major tourist attractions including Navy Pier and the
Museum of Science and Technology.
Local residents in San Antonio,
Texas talk about tourism and QOL This is a second good case
study from the USA. This
video production includes
short interviews with San
Antonio residents talking
about tourism’s positive
impact on their lives within
the city.
Income
VITALITY
Tourism helps build a robust economy
Tourism generates many jobs for
local people and income for
tourism businesses of many
types.
Visitors spending results in sales,
employment, wages, and taxes
to businesses and non-profit
organizations, residents, and
government agencies.
Tip-of-the-iceberg concept
The “multiplier” effects
of tourism on income
and employment have
long been recognized
as being highly
beneficial.
Tourism has direct,
indirect, and induced
effects on city economy.
Transportation
VITALITY
Tourism contributes to transport
and infrastructure improvements
Tourism is often a major factor leading to improved
transportation and related infrastructure systems.
Many new airports, highways, bridges, railways, and other
means of access to and within city destinations have been
significantly justified by current and expected future tourism
levels.
This is certainly the case in China’s Pearl River Delta,
where the new Hong Kong Zhuhai Macao (HKZM) Bridge
is now under construction, as is a new island staging point
and rapid light transit rail system in Macau.
Hong Kong Zhuhai Macao Bridge
Yield
VITALITY
Return on investment
For a city government and other agencies, there is an
excellent return on investment (ROI) from tourism.
The U.S. Travel Association (USTA) describes this as
“Travel Promotion’s Virtuous Cycle.”
ROI in Houston, Texas
The Greater Houston Convention &
Visitors Bureau (GHCVB) is the official
DMO for the city of Houston and Harris
County.
In GHCVB’s FY’11, the Bureau estimated:
Gross Return: $651,333,600
Investment: $15,487,988
ROI: $42 for every $1 of investment
+ $55,000,000 in domestic and
international publicity was generated
Summary: Tourism is a
Source of City Vitality
V
I
T
A
L
I
T
Y
Attracts visitors which tends to make
a city more diverse and lively
Promotes city economic growth and
diversification
Enhances the quality of life of local
citizens
Expands the cultural, leisure and
recreation offerings in a city
Helps to improve the aesthetics and
beauty of a city
Encourages sustainable development
Animates and adds energy and
vibrancy to a city
Alastair M. Morrison, Ph.D.
Distinguished Professor Emeritus, School of Hospitality and
Tourism Management, Purdue University, USA
President, International Tourism Studies Association (ITSA)
CEO, Belle Tourism International Consulting Ltd., China
IMTF, Zhengzhou, Henan Province
Contact information:
alastair@belletourism.com
alastair@purdue.edu
Tel: 1-765-409-0004 (USA)
Tel: 86-13761855678 (China)
© Alastair M. Morrison
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