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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

Recreational
Activities Hotels -
Lodging

Foodservice
-
Restaurants

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
Today, U.S. rail travel has declined
 By 1869 however railroads in Europe and
transcontinental Asia play far more important roles
travel 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

http://www.unwto.org/index.php

 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

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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_Sat
ellite_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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Promoters
Travel 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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