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3 Tourism
Characteristics Year-round economic driver
11.7% of world GDP makes it world’s largest industry
10% of global workforce
Support the creation of over 5.5 million jobs per year over next decade (1 in every 11.2 jobs)
8% of all jobs worldwide will depend on the industry
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Environmental factors – affect employment
Visa waiver program
China travel - MOU
People’s preference
Economic condition
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Interdependency of Tourism Segments
Airlines -
Transportation
Hotels -
Lodging
Foodservice
-
Restaurants
Recreational
Activities
Tourism Defined
Comprises 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.
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Definitions
Tourist - A person who stays for more than one night and less than one year (UN definition; tour for pleasure or convention)
Visitor - A person who visits a country other than where they reside for not more than one year
Excursionist - A person who travels to a site and returns the same day
Tourism Categorized in Terms of the Following Factors
Geography (international, regional, state)
Ownership (government, private)
Function (suppliers, educators, associations)
Industry (transportation, travel agents)
Motive (profit or nonprofit)
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5 Ages of Tourism
Pre-Industrial Revolution (prior to 1840)
The Railway Age
The Automobile Age
The Jet Aircraft Age
The Cruise Ship Age
1. Pre-Industrial Revolution
Phoenicians were first travelers
Trade, commerce and food supply were the motivation
Romans also traveled to shrines, seaside resorts and the attractions of their time in Egypt and Greece
Most medieval travel was of a religious nature (pilgrimages to shrines)
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2. The Railway Age
Prior to rail travel, tourists traveled by horse and carriage.
First railroad in U.S. built in 1830
By 1869 transcontinental travel
Today, U.S. rail travel has declined
however railroads in Europe and
Asia play far more important roles
in passenger transportation.
3. The Automobile Age
Production of automobiles began in 1891
Almost 200 million automobiles are registered today
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4. Air Travel
The first U.S. scheduled air service was in 1915
In 1946, American and European reps came up with the “Bermuda agreement”
a. Six Freedoms of Air Travel
1. Right to fly across another nation’s territory
2. Right to land in another country
3. Right to disembark passengers and cargo
4. Right to pick up passengers and cargo
5. Right to transport passengers and cargo
6. Right to carry traffic from a foreign country to the
home nation and beyond
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b. Airline Deregulation Act of 1978 Purpose was to allow free-market competition –
airlines could decide their own fare structures and rates.
Resulted in new airlines, lower airfares, etc.
Forced noncompetitive airlines out of business.
Change in companies and the way airlines are doing business.
5. Cruise Ships
A floating resort
Has increased 800% from 1970 to 2000
Most cruise ships sail under foreign flags
Approximately 7 million Americans could/will be cruising each year
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International Tourism Organizations
UN WTO – U.N. World Tourism Organization
APTA – Asia Pacific Tourism Association
PATA – Pacific Asia Travel Association
IATA – International Air Transportation
Association
WB – World Bank
http://www.unwto.org/index.php
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State Offices of Tourism HTA – Hawaii Tourism Authority
HVCB – Hawaii Visitors and Convention
Bureau
DBEDT – Department of Business, Economic
Development & Tourism
http://www.hawaiitourismauthority.org/
http://www.hvcb.org/ http://hawaii.gov/dbedt/
Economic Impact of Tourism Economic Impact…
WTTC - World Travel and Tourism Council
Tourism is growing twice as fast as world GNP
Look up the current statistics on tourism
http://www.wttc.org
http://www.wttc.org/eng/Tourism_Research/Tourism_Satellite_Accounting/
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Multiplier Effect New money spent by tourists is then re-spent by
hotels and restaurants in the community for goods and services
=
Leakage When money must be spent outside the community for
goods unavailable within the community
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PromotersTravel Agencies
Serve as a middle person
Agents use computer reservation systems
Make money based on commissions
What does the future hold for promoters especially with
more people using the Internet to book travel?
Corporate Travel Managers Work within a large corporation
Can still work with travel agencies
Can also be the “meeting planner”
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Travel & Tourism Wholesalers Consolidates services
Airlines
Other transportation carriers
Ground service suppliers
Tours
Sold to the public
Reasons for Travel Business
20%
Leisure
70%
Other
10%
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Business Travel Activities A good portion of business travel is mixed with
pleasure.
Conventions are a main reason for business travel.
Tends to be non-seasonal
e.g. Hawaii Convention center http://www.hawaiiconvention.com/
Reasons for Leisure Travel
Experience new surroundings
Different cultures
Rest and relax
Visit friends and family
Sporting/recreation activities
e.g. HVCB, http://www.hvcb.org/ & www.gohawaii.com
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Leisure Travel Increase… Longer life span
Flexible working hours
Early retirement
Greater ease of travel
Shorter, more frequent trips
Social and Cultural Impact Tourism pollution
Cultural awareness
Higher levels of employment
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Eco-Tourism responsible /sustainable
tourism
Seeks to minimize the impact of tourism
Natural environment and native cultures
http://www.hawaiiecotourism.org/
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Current Trends in Tourism Tourism will continue to rise by about 8% annually (before
2008);
2008: 2% growth
2009: 0 to -2% growth
Increased governmental recognition of the importance of tourism
Internet bookings will increase www.expedia.com ,
www.travelocity.com
Employments prospects will continue to improve (slowed
for now)
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