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INTERNATIONAL TOURISM:A GLOBAL PERSPECTIVE
World Tourism Organization
in cooperation with
WTO Education Network
at
University of Hawaii at Manoa, U.S.A.University of Calgary, Canada
James Cook University, Australia
Editor: CHUCK Y. GEEDean
School of Travel Industry Management
University of Hawaii at Manoa
Co-Editor: EDUARDO FAYOS-SOLHead, Education and Training
World Tourism Organization
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Copyright 1997 World Tourism OrganizationTitle: International Tourism: A Global Perspective
1st Edition: October 1997
ISBN: 92-844-0231-X
Published by the World Tourism Organization, Madrid, Spain
All rights reserved. No part of this book may be reproduced or transmitted in anyform or by any means, electronic or mechanical, including photocopying, recording
or by any information storage and retrieval system without permission from theWorld Tourism Organization.
The designations employed and the presentation of material in this publication donot imply the expression of any opinions whatsoever on the part of the Secretariatof the World Tourism Organization concerning the legal status of any country,territory, city or area or of its authorities or concerning the delimitation of its frontiersor boundaries.
Printed by the World Tourism Organization, Madrid, Spain
Design and layout: Salvador Ten Barrn - ARCA DesignRevised by: Dana Gynther and Rosamond Deming
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SECTION I: PERSPECTIVES OF TOURISM ................................................................1
Chapter 1: Introduction to Global Tourism.........................................................31.1 Introduction ......................................................................................................3
1.2 Defining Travel and Tourism ............................................................................4
1.2.1 The Need for Definitions .........................................................................4
1.2.2 Definitions.................................................................................................5
1.2.3 Forms and Categories of Travel ............................................................7
1.3 History of Travel and Tourism...........................................................................8
1.3.1 Early Ages.................................................................................................9
1.3.2 Middle Ages...........................................................................................10
1.3.3 The Renaissance ...................................................................................11
1.3.4 The Industrial Revolution.......................................................................11
1.3.5 Modern Tourism .....................................................................................12
1.4 Components of the Travel Industry .............................................................13
1.4.1 Transportation and Infrastructure........................................................13
1.4.2 Accommodations and Hospitality Services.......................................14
1.4.3 Travel Distribution Systems....................................................................15
1.4.4 The Roles of the Public and Private Sectors in Tourism.....................16
1.5 Impacts of Travel and Tourism......................................................................17
1.5.1 Economic Impacts................................................................................17
1.5.2 Other Impacts .......................................................................................18
1.6 The Study of Tourism ......................................................................................19
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Chapter 2: Travel Patterns and Trends..............................................................232.1 Introduction ....................................................................................................23
2.2 Tourism Growth...............................................................................................23
2.2.1 International vs. Domestic Tourism ......................................................24
2.2.2 Total International Arrivals ....................................................................242.2.3 World's Top Destinations and Tourism Receipts .................................25
2.2.4 Tourism Generators and Related Expenditures .................................26
2.2.5 Tourism Surpluses and Deficits..............................................................27
2.3 Regional Travel Patterns and Trends ...........................................................28
2.3.1 Europe ....................................................................................................28
2.3.2 Asia and the Pacific..............................................................................29
2.3.3 South Asia...............................................................................................31
2.3.4 Americas ................................................................................................32
2.3.5 Middle East ............................................................................................33
2.3.6 Africa ......................................................................................................33
2.4 External Factors That Affect Tourism ............................................................332.4.1 Changing Demographics ....................................................................34
2.4.2 Technological Advances .....................................................................34
2.4.3 Political Change....................................................................................35
2.4.4 Sustainable Tourism and the Environment .........................................36
2.4.5 Safety and Health.................................................................................372.4.6 Human Resource Development..........................................................37
2.5 Tourism Market Trends....................................................................................37
2.5.1 Changing Consumer Preferences ......................................................38
2.5.2 Product Development and Competition ..........................................39
SECTION II: TRAVEL AND TOURISM COMPONENTS AND SERVICES ..................43Chapter 3: Transportation Services...................................................................453.1 Introduction ....................................................................................................45
3.2 Historical Development of Passenger Travel ..............................................46
3.2.1 Early Modes of Travel............................................................................46
3.2.2 Railroads and Ocean Liners ................................................................46
3.2.3 Automobiles and Airlines......................................................................47
3.3 Rail Service .....................................................................................................48
3.3.1 Significant Developments in Passenger Service................................48
3.3.2 Passenger Service Today .....................................................................48
3.4 Automobile Travel and Ground Transportation..........................................493.4.1 Automobiles...........................................................................................49
3.4.2 Highway Systems...................................................................................50
3.4.3 Other Ground Transportation ..............................................................51
3.5 Water Travel ....................................................................................................52
3.5.1 Cruise Ships ............................................................................................52
3.5.2 Other Water Travel ................................................................................53
3.6 Air Travel..........................................................................................................53
3.6.1 Development of Commercial Passenger Service.............................53
3.6.2 Safety and Security...............................................................................54
3.6.3 Costs .......................................................................................................55
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3.6.4 Airports....................................................................................................56
3.6.5 Other Aspects of the Airline Industry ..................................................57
3.7 Regulation and Deregulation of Air Travel .................................................58
3.7.1 Basic Aspects of Regulation ................................................................58
3.7.2 Pressures on the Bilateral Regulatory System ....................................603.7.3 Economic Aspects of Regulation........................................................61
3.8 Challenges Facing Transportation...............................................................62
3.8.1 Fleet Planning........................................................................................62
3.8.2 Congestion ............................................................................................63
3.8.3 Safety and Security...............................................................................64
3.8.4 Environmental Impacts.........................................................................64
Chapter 4: Accommodations and Hospitality Services.................................694.1 Introduction ....................................................................................................69
4.2 Historical Development.................................................................................70
4.3 Accommodations Classification..................................................................71
4.3.1 Hotels ......................................................................................................72
4.3.2 Resort Properties and Time Shares......................................................74
4.3.3 The Casino/Destination Property.........................................................75
4.3.4 National Heritage Accommodations.................................................75
4.3.5 Bed and Breakfasts ...............................................................................76
4.3.6 The Emergence of the International Hotel ........................................76
4.3.7 Financing of International Hotels ........................................................76
4.4 Food and Beverage Establishment Classification .....................................78
4.4.1 Hotel-related Food Establishments .....................................................78
4.4.2 Independent Food Service Establishments .......................................79
4.5 Hotel Guests ...................................................................................................79
4.6 Food Service Clientele..................................................................................80
4.7 Ownership and Management of Accommodations................................81
4.7.1 Company-Owned and Operated Systems .......................................81
4.7.2 Franchising .............................................................................................82
4.7.3 Management Contract .......................................................................83
4.7.4 Management Measures for Hotels .....................................................84
4.7.5 Food Service Management and Operations....................................86
4.8 Hotel Operations............................................................................................87
4.8.1 Reservations...........................................................................................87
4.8.2 Marketing...............................................................................................87
4.8.3 Hotel Staffing..........................................................................................89
4.8.4 Use of Technology.................................................................................89
4.9 Travel Industry Linkages.................................................................................90
4.9.1 Marketing Partnerships .........................................................................90
4.9.2 Hospitality-related Industry Organizations .........................................91
Chapter 5: Travel Distribution Systems..............................................................955.1 Introduction ....................................................................................................95
5.2 Historical Background ...................................................................................96
5.3 Types of Distribution Systems ........................................................................97
5.3.1 Direct Distribution System.....................................................................97
5.3.2 Indirect Distribution System..................................................................99
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5.4 Travel Intermediaries....................................................................................100
5.4.1 Tour Wholesalers ..................................................................................100
5.4.2 Tour Operators .....................................................................................104
5.4.3 The Travel Agent..................................................................................105
5.4.4 Regulation of Intermediaries .............................................................1075.5 The Impact of Technology on Travel Distribution Systems ......................109
5.5.1 The Link Between Technology and Tourism .....................................109
5.5.2 Computer Reservation Systems (CRS)..............................................110
5.5.3 Ticketing Automation..........................................................................111
5.5.4 The Internet..........................................................................................112
5.5.5 The Future.............................................................................................112
Chapter 6: Special Services and Products ....................................................1176.1 Introduction ..................................................................................................117
6.2 Special Segments of Leisure Travel............................................................118
6.2.1 Reasons for the Growth of
Special Leisure Travel Services and Products ..................................1186.2.2 Ecotourism............................................................................................118
6.2.3 Cultural Tourism....................................................................................120
6.2.4 Rural Tourism ........................................................................................121
6.2.5 Adventure Tourism...............................................................................122
6.2.6 Health Tourism......................................................................................123
6.2.7 "New Age" Tourism ..............................................................................124
6.2.8 Educational Tourism............................................................................124
6.3 Special Segments of Business Travel..........................................................125
6.3.1 Meetings...............................................................................................125
6.3.2 Incentive Travel....................................................................................126
6.3.3 Expositions ............................................................................................127
6.3.4 Conventions.........................................................................................128
6.3.5 Major Components of the MICE Market..........................................129
SECTION III: TOURISM MARKETING AND PROMOTION....................................135
Chapter 7: Tourism Market Segments and Travel Psychology.....................1377.1 Introduction ..................................................................................................137
7.2 Describing Tourists by Purpose of Travel....................................................138
7.2.1 Leisure vs. Business Travelers...............................................................139
7.2.2 Visiting Friends and Relatives (VFR)...................................................141
7.2.3 Special Interest Travel .........................................................................1427.2.4 Group vs. Independent Travelers ......................................................144
7.3 Sociodemographic Factors and Life Circumstances .............................144
7.3.1 Age .......................................................................................................144
7.3.2 Gender .................................................................................................145
7.3.3 Education.............................................................................................146
7.3.4 Other Factors.......................................................................................146
7.4 Approaches to Tourist Motivation..............................................................148
7.4.1 History of Tourism and Motivation .....................................................149
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7.4.2 Theories of Travel Motivation .............................................................149
7.4.3 Market Research and Motivation.....................................................153
Chapter 8: Tourism Marketing .........................................................................1598.1 Introduction ..................................................................................................159
8.2 Marketing Concepts ...................................................................................159
8.3 Characteristics of Services Marketing.......................................................161
8.3.1 The Tourism Industry's Service Characteristics .................................161
8.3.2 The Tourism Industry's Unique Marketing Challenges .....................162
8.4 Market Segmentation .................................................................................163
8.4.1 Characteristics of Effective Market Segments ................................163
8.4.2 Bases for Market Segmentation........................................................164
8.5 The Market Mix.............................................................................................165
8.5.1 Product.................................................................................................167
8.5.2 Place (Distribution)..............................................................................168
8.5.3 Price......................................................................................................168
8.5.4 Promotion.............................................................................................170
8.6 Marketing Plans............................................................................................177
8.6.1 NTA Marketing Plans ...........................................................................177
8.6.2 Environmental Analysis .......................................................................179
8.6.3 Competitive Analysis ..........................................................................180
8.6.4 Market Trend Analysis .........................................................................180
8.6.5 Market Segmentation Analysis ..........................................................180
8.6.6 Strategic Goals and Objectives........................................................181
8.6.7 Action Plans.........................................................................................181
Chapter 9: Tourism Research and Forecasting..............................................185
9.1 Introduction ..................................................................................................1859.2 Tourism Research .........................................................................................186
9.2.1 The Functions of Tourism Research....................................................186
9.2.2 The Tourism Research Process............................................................186
9.2.3 Sources of Information........................................................................189
9.3 Organizations Conducting Research........................................................192
9.3.1 Tourism Organizations .........................................................................192
9.3.2 Educational Institutions.......................................................................193
9.3.3 Private Organizations or Firms............................................................194
9.3.4 Consulting Firms...................................................................................194
9.4 Relationship Between Marketing and Research .....................................194
9.4.1 Destination Marketing Research asa Planning and Evaluation Tool .........................................................194
9.4.2 The Tourism Market Research Program ............................................196
9.4.3 Accountability Research for Destination Marketing.......................198
9.4.4 Making Research Understandable to Practitioners........................200
9.5 The Importance of Forecasting Tourism Demand ...................................200
9.5.1 How Tourism Demand is Measured...................................................200
9.5.2 Elements of Tourism Demand ............................................................201
9.5.3 Forecasting Tourism Demand ............................................................201
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SECTION IV: TOURISM IMPACTS ........................................................................209
Chapter 10: Contributions of Tourism to Economic Development ..............21110.1 Introduction ................................................................................................211
10.2 Understanding Economic Impacts..........................................................212
10.2.1 Tourism in the Global Economy.......................................................212
10.2.2 Tourism in the National Economy....................................................213
10.2.3 Impact of Tourism on Employment .................................................213
10.3 Measuring Tourism Economic Impacts....................................................214
10.3.1 Identifying Tourism Activity ...............................................................214
10.3.2 Structure of the Tourism Industry .....................................................216
10.3.3 Supply-Demand and Price Elasticities............................................217
10.3.4 Direct, Indirect and Induced Benefits.............................................217
10.3.5 Multiplier Model of Tourism Revenue Turnover ..............................218
10.3.6 Input-Output Analysis........................................................................220
10.3.7 Tourism Satellite Accounts................................................................221
10.3.8 Cost-Benefit Analysis .........................................................................221
10.4 Monitoring Economic Impacts.................................................................223
10.4.1 Indicators in Tourism Monitoring ......................................................224
10.4.2 The Assessment Process....................................................................225
10.5 Obstacles to Economic Development Through Tourism.......................225
10.6 Facilitating Employment in the Tourism Sector.......................................226
Chapter 11: Social and Cultural Aspects of Tourism.....................................23111.1 Introduction ................................................................................................231
11.2 Sustainable Tourism....................................................................................232
11.3 The Sociocultural Impacts of Tourism ......................................................234
11.3.1 Defining Society and Impacts .........................................................23411.3.2 Major Sociocultural Impacts............................................................234
11.3.3 Cultural Change ...............................................................................235
11.3.4 Other Impacts ...................................................................................237
11.3.5 Factors Influencing the Sociocultural Impacts of Tourism............237
11.3.6 Factors Related to Individual Perceptions of Tourism...................238
11.3.7 Factors Related to the Size andNature of Tourism Development.......................................................239
11.4 Strategies to Manage Sociocultural Impacts of Tourism ......................239
11.4.1 Obstacles to Sociocultural Understanding....................................240
11.4.2 Strategies to Manage Sociocultural Impacts................................240
11.5 The Relationship Between Culture and Tourism .....................................24311.5.1 Culture Shaping Outbound Tourism................................................244
11.5.2 Culture Shaping Inbound Tourism ...................................................245
11.6 Interpretation for Sustainable Tourism .....................................................247
11.6.1 Principles for Enhancingthe Effectiveness of Interpretation ...................................................248
Chapter 12: Sustainable Tourism and the Environment ................................25312.1 Introduction ................................................................................................253
12.2 Sustainable Development ........................................................................254
12.3 The Physical Environment: A Core Component of Tourism ..................254
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12.4 The Impacts of Tourism on the Physical Environment............................256
12.4.1 Negative Impacts .............................................................................256
12.4.2 Positive Impacts.................................................................................259
12.4.3 Factors Which Influence Tourism Impacts ......................................259
12.5 Strategies for Managing Impacts ............................................................26012.5.1 Planning Strategies ...........................................................................261
12.5.2 Marketing and Education Strategies..............................................268
12.5.3 Research and Monitoring ................................................................270
12.6 Tourism and the Physical Environment: Three Case Studies .................270
12.6.1 The Great Barrier Reef,Australia......................................................270
12.6.2 Venice, Italy........................................................................................272
12.6.3 Mt. Huangshan Scenic Area, People's Republic of China...........273
12.7 Alternative Tourism.....................................................................................274
SECTION V: TOURISM POLICY AND PLANNING ...............................................279
Chapter 13: The Role of Governmentin Tourism Policy and Administration ..............................................................28113.1 Introduction ................................................................................................281
13.2 Government Involvement in Tourism .......................................................282
13.3 Reasons for Government Involvementin Tourism and the Economy....................................................................283
13.3.1 Promoting Economic Development...............................................283
13.3.2 Facilitating and Supporting Industries ............................................284
13.3.3 Raising Revenues ..............................................................................284
13.3.4 Creating a Stable Business Environment ........................................285
13.3.5 Pursuing Other Policy Goals.............................................................285
13.4 Roles of the Public Sector in Tourism .......................................................286
13.4.1 Policy...................................................................................................286
13.4.2 Planning..............................................................................................288
13.4.3 Development.....................................................................................290
13.4.4 Regulation..........................................................................................290
13.5 Levels of Government Involvement.........................................................292
13.5.1 International Involvement................................................................292
13.5.2 National Involvement .......................................................................293
13.5.3 Local Involvement.............................................................................294
13.6 National Tourism Administrations (NTAs)..................................................295
13.6.1 Role of NTAs .......................................................................................29513.6.2 NTA Structure .....................................................................................297
13.6.3 NTAs and the Issue ofPublic Sector Involvement in Tourism ...............................................298
Chapter 14: The Role of Internationaland Regional Organizations in Tourism..........................................................30314.1 Introduction ................................................................................................303
14.2 Types of Tourism Organizations.................................................................304
14.3 Purposes and Objectives of Tourism Organizations...............................305
14.3.1 Promotion of Industry Interests ........................................................305
14.3.2 Regional Marketing and Cooperation...........................................306
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14.3.3 Providing Data and Advice.............................................................306
14.3.4 Providing Direct Assistance..............................................................306
14.3.5 Addressing Trade Issues ....................................................................307
14.3.6 Addressing Environmental and Social Issues .................................307
14.4 Important Tourism and Tourism-related Organizations..........................30914.4.1 World Tourism Organization (WTO)..................................................309
14.4.2 Organization for Economic Cooperationand Development (OECD) ..............................................................310
14.4.3 International Civil Aviation Organization (ICAO)...........................311
14.4.4 International Air Transport Association (IATA) ................................312
14.4.5 World Travel and Tourism Council (WTTC) ......................................31214.4.6 Pacific Asia Travel Association (PATA)
and Other Regional Organizations .................................................313
14.4.7 International Bank forReconstruction and Development (IBRD).......................................315
14.4.8 International Trade in Services and GATS......................................315
14.5 Challenges for Tourism Organizations .....................................................317
Chapter 15: Tourism Planning and Destination Development .....................32115.1 Introduction ................................................................................................321
15.2 The Forms of Tourism Planning..................................................................322
15.2.1 Tourism and Economic Development ............................................323
15.2.2 Tourism Master Planning ...................................................................324
15.3 The Need for Tourism Planning.................................................................324
15.4 Levels of Tourism Planning in the Public Sector......................................326
15.4.1 National Planning..............................................................................326
15.4.2 Local Planning...................................................................................326
15.4.3 Destination Planning.........................................................................327
15.5 Actors Involved in the Planning Process .................................................328
15.6 Organizing the Planning and Development Process............................329
15.7 Elements of a Tourism Plan .......................................................................330
15.7.1 Demand Analysis...............................................................................330
15.7.2 Supply Analysis ..................................................................................331
15.7.3 Tourism Impact Analysis....................................................................333
15.7.4 Economic and Financial Analysis ...................................................336
15.7.5 Action Plan and Recommendations..............................................337
15.8 Factors Affecting Tourism Planning..........................................................337
Chapter 16: Tourism Human Resources Planning and Development .........34116.1 Introduction ................................................................................................341
16.2 Human Resources Planning......................................................................342
16.2.1 Assessing Labor Demand.................................................................343
16.2.2 Assessing Labor Supply.....................................................................343
16.3 Tourism Employment and Career Opportunities ...................................344
16.4 Quality of Service and the Work Force...................................................347
16.4.1 Service Expectations of Travelers....................................................347
16.4.2 Sustaining Quality Through Skill Standards .....................................347
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16.5 Tourism Education and Training Providers...............................................350
16.5.1 Formal Programs and Courses ........................................................351
16.5.2 Employer-based Education and Training.......................................353
16.5.3 Education and Training Providers and Skill Standards..................354
16.6 Issues Facing Tourism Human Resources Development........................35516.6.1 Geopolitical .......................................................................................355
16.6.2 Economic...........................................................................................356
16.6.3 Social ..................................................................................................356
16.6.4 Information Technology ...................................................................356
16.6.5 Constant Change.............................................................................357
Chapter 17: Conclusion ...................................................................................36117.1 Tourism and Sustainability: Issues for 2000 and Beyond ........................361
17.2 The Challenges of Growth........................................................................362
17.2.1 Where Will Tourism Growth Occur?.................................................363
17.2.2 What Kinds of Tourism Experiences Will Meet the Market?..........364
17.2.3 Who Will Benefit from Tourism Growth? ..........................................364
17.2.4 What are the Human ResourceImplications of Tourism Growth?......................................................365
17.2.5 Learning from Other Destinations ...................................................366
17.3 Sustainable Tourism and the Future.........................................................366
17.3.1 Growth Towards What? ....................................................................366
17.3.2 Sustainable Tourism ...........................................................................367
17.3.3 Cross-cultural Understanding and Peace......................................367
Glossary.............................................................................................................373
About the Authors.............................................................................................395Bibliography ......................................................................................................399
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1 Section
Perspectives of TourismCHAPTER 1
Introduction to Global Tourism
CHAPTER 2Travel Patterns and Trends
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CHAPTER 1Introduction to Global Tourism Learning Objectives
Learning objectives
To define the terms used in the travel and tourism industry.
To obtain an overview of the historical development of tourism.
To appreciate the scope and importance of international tourism.
To identify the major components of the travel and tourism industry.
To understand the impacts and contributions of tourism to the economic
and social well-being of societies.
To understand the importance of the study of tourism.
Key terms and concepts
domestic tourism
inbound tourism
infrastructure
international tourism
mass tourism
outbound tourism
same day visitor
tourism
tourists
transportation
travel
travel distribution systems
travel industry components
visitors
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1.1 IntroductionThe travel and tourism industry is the worlds largest and most diverse
industry. Many nations rely on this dynamic industry as a primarysource for generating revenues, employment, private sector growth,
and infrastructure development. Tourism development is encouraged,
particularly among the developing countries around the world, when
other forms of economic development, such as manufacturing or the
exportation of natural resources, are not commercially viable.
The reasons people desire to travel are complex and varied.
Contributing to the powerful growth tourism has experienced in a
relatively short time frame has been the increased accessibility to the
many components of the travel experience. Transportation to, from, and
within parts of the world once considered remote has become more
affordable for, and within the reach of, the majority of residents in many
nations. Accommodations and restaurants in assorted budget categories
are universally found in major cities, resort locations, adjacent to
airports and thoroughfares, and in rural areas. Professional services
provided by travel agencies and tour operators, marketing efforts by
public sector tourism offices, advanced technology that rapidly brings
the tourism components together in a flash for the potential travelerall
make todays travel experience safe, comfortable, and enjoyable.
3
1Introduction to Global Tourism
Learning Objectives
Travel: easier
and cheaper
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This chapter will help students of the travel and tourism industry
understand the many positive impacts travel and tourism have on countries
throughout the world. The importance of tourism terminology is
explained, and definitions for the most common terms are provided. Travel
and tourism through a historical context is also treated. The role of tourism
as a major contributor to the global economy is explored, as well as
indicators which reflect the industrys rapid growth. Other contributions of
tourism are discussed, as is the concept of sustainable tourism. Key
components of this multifaceted industrytourism distribution,
transportation, hospitality, tourism administrationare summarized.
Finally, basic approaches to studying this dynamic industry are reviewed,
bringing us to the 20th century and the mass tourism movement.
1.2 Defining Travel and Tourism
1.2.1 The Need for Definitions
The terminology used within this dynamic industry is worthy of
discussion. The simple word travel, defined as the act of moving by
most dictionaries, has a different definition within the context of the
tourism industry. For the purpose of this book, travel is defined as the
act of moving outside ones community for business or pleasure but not
for commuting or traveling to or from work or school (Gee, Makens, &Choy, 1989, p. 12). With respect to travel as an industry, there must also
be the creation of economic value resulting from the travel activity.
Understanding fundamental definitions and concepts used within the
context of the travel and tourism industry provides an essential
framework from which most discussions on the industry are based.
Because of tourisms intangible nature, common definitions of
terminology benefit the industry in a number of ways.
Standardized definitions help insure that all parties are speaking aboutthe same term or concept with little or no room for variables. This is
essential for tourism developers and executives from different regions
or countries when they discuss travel and tourism matters.
In addition, having standardized definitions enables planners to use
comparable data in which to make more informed business decisions.
Exact definitions, however, cannot be taken for granted. For the first
half of the 20th century, tourism visitor arrivals were barely recorded
by many countries and, when they were recorded, methods varied by
countries. It was not possible to effectively compare the total number
4
Chapter 1: Introduction to Global Tourism Learning Objectives
Defining "travel"
Importance of
standardization
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of visitors from one country to another which defined visitors differently,
usually counting arriving foreign passport-holding individuals.
Finally, having standardized definitions enables tourism researchers to
make scientifically valid assumptions about the tourism industry. Thisbecomes increasingly important as travel and tourism researchers continue
to enlighten public policy makers and private industry executives about the
extraordinary role tourism plays in the worlds overall economy. As a
relatively new academic discipline, the tourism field lacks the depth of
research found in other forms of commerce. As standardized definitions
become more accepted, researchers will have an easier time collecting
comparable data and performing meaningful tourism studies.
1.2.2 DefinitionsThe World Tourism Organization (WTO), the major intergovernmental body
concerned with tourism, has led the way in establishing a set of definitions
for general use. In 1991, the WTO and the Government of Canada organized
an International Conference on Travel and Tourism Statistics in Ottawa,
Canada which adopted a set of resolutions and recommendations relating to
tourism concepts, definitions, and classifications. The following definitions
are based on the WTO definitions and classifications and explain the
various types of visitors (see Figure 1.1):
Tourism - The activities of persons traveling to and staying in
places outside their usual environment for not more than one
consecutive year for leisure, business, and other purposes.
Tourist - (overnight visitor) visitor staying at least one night in a
collective or private accommodation in the place visited.
Same Day Visitor (Excursionists) - visitor who does not spend the
night in a collective or private accommodation in the place visited.
Visitor - any person traveling to a place other than that of his/herusual environment for less than 12 consecutive months and whose
main purpose of travel is not to work for pay in the place visited.
Traveler - any person on a trip between two or more locations
(WTO, 1995b, p. 17).
Unfortunately, there is still confusion over these very basic definitions.
Even within the same country such as the United States, for example,
different states may use different definitions for data gathering and
statistical purposes.
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Defining Travel and Tourism
Definitions in
research
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6Figure 1.1: Visitors and Other Travelers
Source: Adapted from World Tourism Organization, Concepts, Definitions, and Classifications for Tourism
Travelers
Visitors
Same-dayvisitor
Overnight visitor(tourist)
For fhe purpose of:
Leisure, recreationand holidays
Visiting friends andrelatives
Business andprofessional
Health treatment
Religion/pilgrimages
Other
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1.2.3 Forms and Categories of Travel
Just as there are different types of visitors, there are different forms and
categories of travel which take place, varying by traveler, destination,
and motive for travel, such as international vs. domestic travel, intra-regional vs. interregional travel, as well as inbound vs. outbound travel.
International and Domestic Tourism
According to the WTO, international tourism differs from domestic
tourism and occurs when the traveler crosses a countrys border. Not
every international traveler is a visitor, however. The traveler is a visitor
only if the trip takes him or her outside the usual environment, e.g.,
workers who cross borders for employment are not considered visitors.
The interest in international tourism has always been strong, primarilyfor economic reasons, as this form of tourism plays an important role
in trade and monetary flows among nations.
Domestic tourism has been overshadowed by the interest in
international tourism, for it was thought initially to have little or no
international impact, and statistics on the subject were felt to be a
countrys own business. It has become clear, however, that international
and domestic tourism do relate to each other. Travelers choices change
depending on circumstances, and domestic tourism can be substituted
for international tourism and vice versa under the influence of externalfactors, such as relative growth in real incomes, price differences
between countries, and international political conditions. Over the past
few decades, in many Western countries domestic holidays were largely
replaced by outbound holidays, influenced by the rise in living
standards and discretionary incomes, while developing countries have
seen sharp increases in domestic tourism (WTO, 1995b, p. 34).
Regional Travel
Regions are geographically united subdivisions of a larger area
characterized by definitive criteria or frames of reference. Three types
of regions are used in tourism research. The first one refers to
geographical location. Regions such as the north or the west, are
examples of this type. The second type refers to administrative areas,
such as Province X. The third combines criteria referring to location
with criteria of a more physical nature. Examples of this type of region
are the lake district or the Pacific Basin. Regions of functional type
can also be constructed, such as urban areas or coastal areas. The
term interregional travel refers to travel among various regions, whether
in regions found within the same province or state, a country, or various
7
Defining Travel and Tourism
Relationship
between
international and
domestic
Regional divisions
Interregional and
intra-regional
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regions throughout the world. Intra-regional, on the other hand, refers
directly to travel contained within the same defined region, whether
domestic or international such as travel between countries of East Asia.
Inbound and Outbound TourismThere are three forms of tourism at any level, in relation to a given
area, e.g., domestic region, country, or group of countries:
Domestic tourism, involving residents of the given area traveling
(as visitors) only within that area;
Inbound tourism, involving non-residents traveling as visitors in
the given area;
Outbound tourism, involving residents traveling as visitors in anarea other than the given area.
If a country is the area of reference, the terms domestic, inbound
and outbound tourism can be combined in various ways to derive the
following categories of tourism:
Internal tourism, which comprises domestic and inbound tourism;
National tourism, which comprises domestic tourism and outbound
tourism;
International tourism, which consists of inbound tourism and
outbound tourism.
To avoid misunderstanding the terms inbound, outbound,
domestic, internal, national, and international tourism are
generally used with a country as the unit of reference. However, it
should be recognized that there are political subdivisions which are
less than countries and differ from states such as the Commonwealth
of Puerto Rico and the Commonwealth of the Northern Mariana
Islands, both part of the United States (WTO, 1995b, p. 27).
1.3 History of Travel and TourismWhile the concept of travel and tourism is as old as civilization itself,
history, reveals that travel was not always a pleasurable experience. A brief
review of tourisms historical development is in order to fully appreciate
todays modern tourism environment and to understand tourisms
challenges as the worlds population approaches the new millennium.
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1.3.1 Early Ages
Logical motivators for the earliest of peoples in prehistoric
civilizations to travel focused on gathering food, avoiding danger, and
moving to more favorable climates. As humankinds skills andtechnologies increased, there was a decreased need in the nomadic
existence, resulting in yet another travel motivator: the trade and barter
of goods. As ancient world empires grew in Africa, Asia, and the
Middle East, the infrastructure necessary for travel such as land routes
and waterways was created and vehicles for travel were developed. The
beginnings of official government travel were a direct result of rulers
who sent their emissaries to observe the progress of wars throughout
sprawling empires or to collect taxes from the citizenry. During the
Egyptian dynasties, travel for both business and pleasure began toflourish, and hospitality centers were built along major routes and in
the cities to accommodate travelers between central government posts
and the outlying territories. During the height of the Assyrian empire,
the means of travel were improved, largely for military use, and roads
were improved, and markers were established to indicate distances. The
Persians who defeated the Assyrians made further improvements to the
road systems and developed four-wheeled carriages for transportation.
The early Greeks advanced travel and tourism developments in two
particular areas. First, through the development of a coin currency, replacingthe need for travelers to carry goods to barter at their final destination for
other goods and services. Secondly, the Greek language spread throughout
the Mediterranean area, making it easier to communicate as one traveled.
Since most of the Greek towns and cities were located along the coast, travel
was primarily by sea. Travel for government business was kept to a
minimum because of the independent nature of the city-state system, but the
Greeks liked to visit other cities for pleasure, particularly Athens. They also
enjoyed traveling to religious festivals, and events like the Olympic games
held every four years at Olympia.
At the height of the Roman empire, the ruling patrician class enjoyed
their leisure during the periods of relative peace. Like the Greeks before
them, they observed their own athletic and religious events and traveled
to these sites. Sightseeing was also popular with the wealthy Romans,
and many visited Greece. A ten-volume travel guide was published in
170 A.D. by the Greek, Pausanias. EntitledA Guide to Greece, the guide
targeted the Roman tourist market and described the Grecian
monuments, sculptures, and the stories and myths behind them. Romans
also toured Egypt to see the Sphinx and the Pyramids. Alexandria was
9
History of Travel and Tourism
Early civilizations
The Greeks'
contribution
Ancient Romans
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a cosmopolitan oasis for Roman aristocracy, since many nationalities
were represented there including Egyptians, Greeks, Jews, Ethiopians,
Indians, and Syrians. Egypts weather was also a travel incentive for the
Romans, as it offered a sunny, hot, and dry environment. The citizens of
the Roman Empire also liked to shop when abroad, as most tourists do
today. The practice of hiding purchases from custom officials probably
originated with this class, a result of high duties, typically 25 percent,
placed on imported purchases.
Asian civilizations also have a history of leisure travel to resorts, with
known examples of second homes or seasonal retreats in China as well
as in Japan. Chinese nobility and their guests retreated to the summer
pavilions and villas in Suzhou, Hangzhou and other scenic areas.
1.3.2 Middle Ages
During the Middle Ages from about the 5th to 14th century A.D., trade
and travel declined as roads fell into disrepair and overall travel
conditions became difficult as well as dangerous. During this period,
the Christian Church was the primary impetus for travel with the
spreading of monasteries and the Christian religion. Monks and priests
encouraged the public to go on pilgrimages, and by the 14th century,
pilgrimages were an organized mass phenomena served by a growing
network of charitable hospices with growing ranks of participants frommost social classes. Christians went to Jerusalem and Rome, and even
though the pilgrimages had a religious basis, they were also seen as
social and recreational journeys.
In the latter part of the 13th century, Marco Polo explored the land routes
from Europe to Asia. In China, Polo discovered a well-developed road
system, the first having been built during the Chou dynasty (1122-1221
B.C.). Polos book on his travels was the Wests main source of information
about life in the East during this period. Other travel books began to appear
with the advent of the printing press, and Sir John Mandevilles Travels in
1357 was printed in several foreign languages, with descriptions of travel
to places as far away as southeast Asia.
By the 15th century there is a record of an actual package tour which
originated in Venice to the Holy Land. For the price of the package, the
tourist received passage, meals, accommodations, donkey rides, and
the bribe money necessary to avoid red tape. Early versions of todays
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Chapter 1: Introduction to Global Tourism Learning Objectives
Leisure travel
in Asia
Christian
pilgrimages
Early travel
accounts
"Modern" tourism
in medieval era
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convenience fast food stands popped up along heavily trafficked
pilgrim travel ways. Roadside hawkers during high seasons would sell
wine, fruits, fish, meats, bread and cakes from roadside tents.
1.3.3 The Renaissance
Travelers between the 14th and 17th centuries used as their travel
motivator the desire to broaden ones experience and knowledge. In
England, Queen Elizabeth I approved a form of travel to groom future
diplomats, and the universities such as Oxford and Cambridge in
England and Salamanca in Spain provided travel fellowships. England
also issued a travelers license which was good for two to three years and
it disclosed travel restrictions, how much money, how many horses, and
servants (usually three) the traveler could take. Tourists also were issuedpassports, but surrendered them at exit posts, and picked up new ones for
each country they visited. Little cash was carried, instead they used a line
of credit which worked like the modern day travelers checks. The
Elizabethan traveler usually went to Italy, by way of Paris and Frankfurt.
The loosely organized Elizabethan tour later became more highly
structured into what became known as the Grand Tour. The organized
Grand Tour had its start in the mid-1600s, and its popularity ran through
the mid-1800s. The desire to gain new knowledge and experiences were
still the prime motivators of travel for participants of the Grand Tour; andthe Grand Tour was seen as the capstone to educational and cultural
attainment of the upper classes. Typically, sons of well-to-do families
traveled to specific countries to visit historical sites and ruins as well as
to study art, architecture and history. There was even a tour guidebook
for the Grand Tour travelers, the 1778 bestseller by Thomas Nugent.
1.3.4 The Industrial Revolution
The Industrial Revolution, which lasted from about 1750 to 1850
created the base for mass tourism as we know it today. This period
brought profound economic and social changes as workers moved
away from basic agriculture in rural areas into the manufacturing
plants and urban way of life familiar to many people today. The
Industrial Revolution also introduced new machinery powered by
steam for trains and ships. Social changes brought on by changes in
occupations led to the expansion of a new middle class, an increase in
leisure time, and for many, a demand for recreational travel activities
leading to a decline in popularity of the elitist Grand Tour.
11
History of Travel and Tourism
Travel for
knowledge
Passports and
traveler's checks
The Grand Tour
Groundwork for
mass travel
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Initially, recreation tourist trips were generally only day trips because
most people still had only limited discretionary income and a five-day
work week was not commonplace. Toward the end of the 19th century,
workers began to get annual vacations. In order to escape congested and
polluted urban areas, many turned to spas and seaside resorts for their
holidays which set the tone more or less for the modern leisure tourist.
Some destinations, until then visited primarily by the wealthy, were
expanded, while others were newly established to capture this growing
middle class market. To these destinations, the middle class represented
a huge market compared with the small number of the earlier wealthy
and aristocratic visitors. What the new tourists lacked in individual
spending power, they more than compensated in terms of the total
volume of arrivals.
1.3.5 Modern Tourism
It was the combination of desire, mobility, accessibility, and affordability
that made mass travel possible. With the 20th century came new
technologies such as aviation, computers, robots, and satellite
communications, which have transformed the way that people live, work,
and play. Modern technology is credited with the development of mass
tourism for a number of reasons: it increased leisure time, provided
additional discretionary income, enhanced telecommunications, andcreated more efficient modes of transportation.
As the world looks ahead to the next millennium, there is little doubt
that tourism will continue to be one of the most dynamic growth
sectors of the global economy. Despite periodic recessions, political
upheavals, wars, and uncertainties about the price and availability of
fuel, international tourism is now the largest single item in the worlds
foreign trade budget. It is three times bigger than world expenditures
on defense. No longer an activity reserved only for the privileged few,
tourism is now engaged in by millions of people who enjoy new places,
seek a change in their environment, and look for meaningful
experiences. As the new age of tourism evolves, it will be affected by
a number of exogenous factors (see Figure 1.2) such as economic and
financial developments, technological developments and innovations,
environmental issues, and marketing factors affecting the structure of
the travel and tourism operating sector and product development.
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Chapter 1: Introduction to Global Tourism Learning Objectives
Beginnings of
vacations
Middle class
market
Reasons for
mass tourism
Growth and
future prospects
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1.4 Components of the Travel Industry
1.4.1 Transportation and Infrastructure
How visitors get to, from and within a given destination is the
responsibility of the transportation component of tourism as discussed
in Chapter 3. Whether travel is by air, sea, or ground transportation,
adequate facilities and services must be in place for the development
13
Components of the Travel Industry
Need for facilities
and services
Figure 1.2: Factors Shaping the Development of Tourism
Source: World Tourism Organization, Global Tourism Forecasts to the Year 2000 andBeyond, (Madrid: WTO, 1995),p. ix.
Economic and
FinancialDevelopments
MARKETFORCES
EXOGENOUSFACTORS
Structure of theTravel Trade
Operator Product andService Development
Destination ProductDevelopment
TradingDevelopments
TransportInfrastructure
Demographic andSocial Change
Political, Legislative,
and RegulatoryChanges
TechnologicalDevelopments
Safety of Travel
Marketing
ComputerReservations Systems
and DestinationDatabases
HumanResources
Development
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of a successful destination. For existing tourist destinations, domestic
and international tourism is dependent upon the maintenance and
improvements of airport terminals, harbors, and road systems.
Sufficient transportation is integral to the success of all other
components of tourism. The various modes of transportation work to
get visitors, for example, from the airport to their accommodations.
From the hotel, the visitor needs transportation to various restaurants
and evening entertainment, to attractions or convention sites the next
day, and back to the airport when the departure date arrives.
The infrastructure refers to components found on or below the
ground level that provide the basic framework for effective functioning
of development systems such as urban areas, industry, and tourism
(Inskeep, 1991, p. 119). Infrastructure components such as watersupply, electric power, sewage and solid waste disposal, drainage, and
telecommunications are but a few of the more critical elements
required for the various tourism dimensions to operate efficiently.
1.4.2 Accommodations and Hospitality Services
Tourism facilities covered in Chapter 4 include the services which
provide basic necessities, comfort, and aid to travelers. Because the
visitor is away from home, basic needsa place to stay, food and
beverage, storesmust be accessible, safe, and convenient.
Accommodations
Accommodations or lodging facilities and their related services are
where tourists stay overnight during their travels, accounting for a good
portion of the tourists total expenditure, typically 20 to 30 percent
depending on quality of accommodation, destination, and purpose of
trip. There are a wide variety of types of accommodations which meet
the demands of various budgets, including bed and breakfast
establishments, European style pensions, youth hostels, campgrounds,recreational vehicle parks, and cruise ships. The hotel, the most common
type of accommodation, has its own categories, extending from
luxurious urban or resort properties, to smaller budget-oriented motels or
motor lodges. Most countries have classification or rating systems for
accommodations, particularly between the hotels and motels, which help
distinguish the level of service provided to the guests.
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Chapter 1: Introduction to Global Tourism Learning Objectives
Varieties of
accommodations
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1.4.4 The Roles of the Public andPrivate Sectors in Tourism
It was thought at one time that tourism was primarily a private sector
concern, since the tourism-related business made the profits and
reaped the rewards. It was considered the private sectors responsibility
to develop and produce services and products for visitors. The public
sector, represented by government, saw little need to invest scarce
resources and funds toward an activity that benefited private interests.
However, once governments realized the great economic importance of
tourism, especially as an engine of employment and source of tax
revenue, this attitude changed. Today, there are many interests
concerned with tourisms growth and development from the private
sector businesses, both large and small, to the various public sectorgovernment structures (e.g., national, regional, state, provincial,
municipalities), and international, regional, and national organizations.
Tourism consists of both public and private goods based on the supply
and allocation of tourism resources. While the private sector is likely to
limit its activities to goods or services that can realize profits, the public
sector represented by governments must look beyond profit motives to
those which will benefit the society as a whole. Public goods might
include natural, cultural, and historic attractions and resources which
are maintained and protected by government for the benefit of societyas a whole, and users are likely to benefit from these goods, such as
visiting a national park, without paying for the benefit. Other public
goods and services provided by government which affect tourism
include regulation, promotion, and marketing of tourism resources.
National tourism administrations or organizations, whether government-
sponsored national tourism offices or private associations, help promote
and monitor tourism development within the context of a particular
country, while state, provincial, and even municipal organizations
promote and define the growth of tourism for a smaller area of influence.
International organizations, some of which are regional or developmental
in nature, provide forums for discussion as well as assistance in tourism
marketing and research, the removal of barriers to travel, and a number of
other functions. Foremost among intergovernmental organizations is the
World Tourism Organization (WTO), a subagency of the United Nations
representing 130 member states and over 300 affiliate members in 1996.
The roles of governments and regional and international organizations are
discussed in Chapters 13 and 14.
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Chapter 1: Introduction to Global Tourism Learning Objectives
Government and
business interests
Tourism
organizations
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Because tourism has the ability to increase the public coffers and create
employment opportunities, the public sector has actively assisted in the
promotion of both international and domestic tourism. A series of government
tourism offices for marketing purposesnational, regional, or at the
state/province levelare found in most countries. The goals are to promote the
region they represent and ensure sustainable tourism development.
Tourism organizations are found in both the public and private sectors
and are organized by:
Geography - international, regional, national, state or provincial, local;
Ownership - government, quasi-government, or private;
Function or type - regulators, suppliers, marketers, developers,
consultants, researchers, educators, publishers, etc.;
Industry - transportation, travel agents, tour wholesalers, lodging,
attractions;
Motive - profit or nonprofit (Goeldner, McIntosh, & Ritchie, 1995, p. 71).
1.5 Impacts of Travel and Toursim
1.5.1 Economic ImpactsThe travel and tourism industry is a group of economic activities which
combined makes it the worlds largest industry, the number one generator
of jobs, one of the worlds biggest exports, and a major stimulus for
investment and growth. Since 1950, when international travel started to
become accessible to the general public, international tourist arrivals
have risen each year at an average rate of 7.2 percent and international
tourists receipts by 12.3 percent (WTO, 1994a, p. 1). In 1995,
international tourist arrivals exceeded 563 million worldwide and
tourism revenues (excluding transport) exceeded U.S. $399 billion (seeTable 1.1). The World Tourism Organization forecasts that by the year
2000, international tourist arrivals will reach 702 million, and by the year
2010, 1.108 billion arrivals. International tourism receipts grew faster
than world trade in the 1980s, and now constitute a higher proportion of
the value of world exports than all sectors other than petroleum products,
and motor vehicles/parts/accessories. The contributions of tourism to
economic development are covered in Chapter 10.
17
Impacts of Travel and Toursim
Tourism: the
world's largest
industry
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1.5.2 Other Impacts
The travel and tourism industry, however, contributes much more to the
world than bolstering economies and providing employment
opportunities. One of the major themes of this book is to explore how
sustainable tourism can be accepted universally and applied to tourism
development. The concept of sustainable tourism, loosely defined as the
meeting of the needs of present tourists and host regions while
protecting and enhancing opportunities for the future, will also be
explored in this book. Tourism can have positive environmental benefitswhich include efforts to protect the Earths natural and manmade
resources through the establishment of wildlife preserves, the
restoration of historical sites and landmarks, and the preservation of
pristine environments. It also has beneficial social and cultural impacts.
It helps recognize and promote distinctive cultures and heightens local
awareness of indigenous traditions. Tourism has assisted in the revival
of the arts and handicrafts of some host communities, creating a
demand for performance centers and cottage industry craft shops.
18
Chapter 1: Introduction to Global Tourism Learning Objectives
Source: World Tourism Organization,Yearbook of Tourism Statistics,48ed., 1996 and 49ed., 1997.
Year Arrivals (mn)Receipts ($Bn, excl.
Transport)
1950 25.3 2.1
1960 69.3 6.9
1970 165.8 17.9
1980 286.2 105.2
1990 459.2 264.7
1995 563.6 399.0
Period (% p.a. growth)Average Annual
Percentage IncreaseAverage Annual
Percentage Increase
1950-1960 10.6 12.6
1960-1970 9.1 10.1
1970-1980 5.6 19.4
1980-1990 4.8 9.7
1990-1995 4.1 7.5
Table 1.1: International Tourism Activity 1950-1995.
Sustainable
tourism
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Among the tourism industrys many supporters, it is believed that tourism
can ease political tensions, and in effect, act as a catalyst for world peace.
As foreign borders disappear, whether literally or figuratively, there is an
emerging use of the term global village, making the world smaller and
more intimate. The tourism industry and the countries which rely on
tourism for overall development, must provide tourists a safe and secure
atmosphere, as tourism can only prosper in a peaceful environment.
1.6 The Study of TourismThe study of tourism can be approached through a variety of
disciplines including economics, business, history, geography, and
sociology, to name a few. The travel industry has made both positive
and negative impacts on these disciplines and has become a globalplayer in activities, organizations, and businesses.
Throughout this book, many exciting facets of the travel and tourism
industry will be explored, but it is important to realize that no one part
is more important than the other. This industry is unlike any other as
collaborative efforts are not only encouraged but necessary, due to the
interdisciplinary nature of the tourism experience. Each of the key
components required for a tourism destination to flourishtravel
distribution, transportation and infrastructure, accommodations and
other facilities, and tourism administrationrequires the assistance ofeach other in combination with marketing, promotion, facilitation and
other software aspects of travel delivery. The interdisciplinary
approach to travel then provides students a means to study tourism,
particularly as it has become an increasingly complex industry with
sophisticated, informed, and demanding consumers.
Rapid global changes and advancements in technology make the study
all the more essential for todays tourism managers and planners.
Tourism leaders must be familiar with the challenges of meeting the
escalating demands of todays traveling public. Tourism providers
know that if they cannot please or exceed their customers needs, the
competition will be more than happy to fill that demand. To compound
an already challenging environment, todays tourism developers and
management teams must work within the confines of an
environmentally-sensitive and socially responsible approach to
sustainable tourism. Careful attention to the earths finite natural
resources, and a sense of social responsibility to host communities and
cultures influenced by tourism will continue to be a major factor in
what encompasses a prosperous tourism industry.
19
The Study of Tourism
Benefits of
tourism
An interdisciplinary
field
The necessity
of study
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SUMMARYThis chapter has presented the background on the travel and tourism
industry as the largest service industry in the world. The growth of
domestic and international tourism, the importance of tourismexpenditures, and the contributions of tourism to gross domestic
product and employment opportunities provide many positive effects.
Travel and tourism, when properly planned and managed also bring
other benefits than economic ones such as maintaining cultures,
preserving the environment, and contributing to peace efforts.
Travel and tourism is a multifaceted industry with many components
including travel distribution, transportation and infrastructure, tourism
facilities such as accommodations, food and beverage establishments,
and support services. Both the private and public sectors are involved in
the industry. The challenge for tourism planners and management in both
sectors will be to meet the needs of a more sophisticated traveler, while
balancing the precious resources of a finite world, preserving native
traditions and cultures, and taking social responsibility for negative
impacts on the host community. The next chapter will take a closer look
at travel during the 20th century, travel trends of various countries, as
well as regional and international travel patterns. External factors and
their possible effect on tourism and other world trends will also be
explored.
DISCUSSION QUESTIONS1. What are the tourism-related definitions for your state/province and
country? Do they differ from the WTO definition?
2. Within a historical context, what have been some of the motives for
travel?
3. Besides economic, environmental and cultural benefits, what aresome other benefits of tourism development?
4. What are examples of the various travel industry components where
you live? How are they interdependent?
5. List some reasons for studying the tourism industry, including your
own.
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CHAPTER 2Travel Patterns and Trends
Learning objectives
To understand the size and significance of international travel.
To understand the patterns and trends of domestic, regional, and
international travel.
To describe the factors that affect the development of tourism.
To review top tourism trends which will have a significant impact on the
industrys growth worldwide.
Key terms and concepts
computerized reservation system (CRS)
domestic travel
global distribution system (GDS)
international travel
sustainable tourism
tourism expenditures
tourism generators
tourism receipts
travel deficit
travel surplus
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2.1 IntroductionThe previous chapter examined the broad-based travel and tourism
industry and illustrated that through most of recent history, travel was
often an exhausting undertaking. With societal and technological changes,travel transformed itself into a much desired and accessible leisure
activitytourismwhich has provided enriching experiences to travelers.
This chapter will direct its attention to the current state of modern tourism.
International and regional travel trends such as visitor arrivals, tourism
receipts, top destinations, and tourism expenditures will be examined, in
addition to regional travel patterns, both inbound and outbound. The
understanding of trends is important as they provide a clue to what is likely
to occur in the future, thus providing a basis for destination and tourist
product planning and marketing. External factors including political,demographic, social and technological changes must also be considered
for their impact on tourism when trends are being analyzed.
2.2 Tourism GrowthBoth domestic travel or travel between two points in the same country,
and international travel, where a person travels to a country other than
his or her own country of residence, have experienced remarkable
growth within a relatively short period of time. It was not until the 1960s
that working-class Britons, for example, could enjoy leisure travel
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2Travel Patterns and Trends
Importance
of trends
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By 1970, this figure had grown to 160 million. In 1980, international
arrivals totaled well over 280 million. By 1995 international tourist
arrivals in all destinations was over 563 million. The WTO projects
worldwide tourism will grow to around 702 million arrivals in the year
2000, and over 1 billion by 2010 (WTO, 1996i; see Table 2.1).
25
Tourism Growth
Source: World Tourism Organization.
Year Arrivals Receipts
1995 563,641,000 US$ 399 billion
2000 702,000,000 US$ 621 billion
2010 1,018,000,000 US$ 1.5 trillion
Table 2.1: WTO Forecast International Tourist Arrivals and Receipts
2.2.3 Worlds Top Destinationsand Tourism Receipts
From an international perspective, the most popular destinations in theworld in 1995 were France, followed by United States and the Spain
(WTO, 1996c). It is important to note that an extremely high portion of
travel is received, as well as generated, by relatively few countries. The
top ten destinations account for 54 percent of the world volume of
tourism flows, with seven of the top ten countries located in Central
and Western Europe. Of the top ten receiving countries, seven are
European nations (see Table 2.2), but this may be explained by the
close geographic proximities and accessibility of countries (except for
the Central Independent States of the former U.S.S.R.) within thecontinenta sharp contrast to the wide geographic spread and distance
among the countries of Asia.
The pattern for tourism receipts is similar to tourism arrivals: the top ten
earners represent 55 percent of the world total. The U.S. leads the world
in tourism receipts, with France and Italy in second and third place,
respectively. With the swift increase in recent years of international
tourism to and within East Asia and the Pacific, two Asian destinations
are among the top ten earner list (WTO, 1996d; see Table 2.3).
Europe: top
destinations
Travel receipts
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2.2.4 Tourism Generatorsand Related Expenditures
Tourism generator countries is a category of information on outbound
tourists, and is of great importance to countries seeking inbound tourism.
Sources of these data include national tourism administrations (NTAs) as
well as international tourism organizations. Sixty-seven percent of all
international outbound travelers are attributed to nationals of only 10
countries, of which six are European countries (WTO, 1996k, p. 78).
26
Chapter 2: Travel Patterns and Trends
Source: World Tourism Organization.
Rank Destination No. of Arrivals
1 France 60,110,000
2
Spain
43,318,000
3
United States
39,324,000
4 Italy 31,057,000
5
China
24,008,000
6
United Kingdom
20,690,000
7
Hungary
20,162,000
8
Mexico
20,034,000
9 Poland 19,200,000
10 Austria 17,173,000
Table 2.2: Top Ten Tourism Destinations 1995
Source: World Tourism Organization.
Rank Destination Internatio