GEOG II - Chap 6 - The Tourism Industry


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GEOG II - Chap 6 - The Tourism Industry

  1. 1. A tourist is anyone who travels to and stays in a place outside his or her usual environment for at least 24hours and not more than a year, regardless of travel purpose.In domestic tourism, most of the revenue goes to the country hence countries are actively promotingdomestic tourism. The presence of leakage to airfare reduces significantly hence more money is spent inthe country itself. It is also significant during recessions as compared to international tourism, it ischeaper hence more people will travel in the country.Tourism is one of world’s largest and fastest-growing industry:1. more than US$1 trillion in 20102. 6% of overall exports of goods and services3. 4th as an export category (eg. foreign-owned hotels in other countries)4. 5% of world GDP; 2-10% of average countries’ GDP5. 6-7% of jobs worldwideTrends of tourism:1. 83% of countries have tourism as top 5 export industry2. 38% of countries have tourism as main source of revenue3. Middle East and Asia Pacific seeing fastest growth, Europe and Americas seeing slower growthTourism figures [2010]Top 5 tourist arrivals Number of tourists (mil) Top 5 tourism receipts Amount earned (US$bil) 1. France 76.8 1. USA 103.5 2. USA 59.7 2. Spain 52.5 3. China 55.7 3. France 46.3 4. Spain 52.7 4. China 45.8 5. Italy 43.6 5. Italy 38.8
  2. 2. Singapore tourism figures [2011] Top 5 tourist arrivals Amount earned Income over the years Top 5 tourism receipts 1. Indonesia (S$mil) (S$mil) 2. China 1. Indonesia 2129 2007 – 14 121 3. Malaysia 2. China 1346 2008 – 15 168 4. Australia 3. Australia 952 2009 – 12 786 5. India 4. India 801 2010 – 18 900 5. Malaysia 678 2011 – 22 200 Types of attractions ExamplesNatural attractions Niagara Falls, USA Bali Beach, IndonesiaCultural-historical attractions The Great Pyramids, Egypt Mayan Ruins, Central AmericaHuman-made attractions Florida Disneyland, USA Genting Highlands, MalaysiaEvent attractions 2012 Summer Olympics, UK F1 Night Race, Singapore What has caused the changes in tourism? Elaboration 1. Improvements in transport and IT People are able to obtain info about tourist attractions and destinations easily with improvements in IT. Improvements in transport technology have enabled people to travel to more varied places easily and affordably. 2. Mounting concern for environment This has led to the rising of ecotourism. 3. Rise in multicultural societies Tourists would now like to experience “other exotic” cultures around the world. 4. Edutainment experience Niche tourism (eg. voluntourism, ancestry tourism) is fast becoming popular as it meets the educational and entertainment needs of different people.
  3. 3. Demand factors for Elaboration Examplegrowth of tourism (ALL) 1. Affluence As economic conditions improve due to industrialisation and trend of transference, salaries and disposable income (def: money left after taxes that can be spent) increase. As such, more money can be spent on tourism-related activities. However, high taxes and high unemployment rates decrease people’s disposable income and they begin to prioritise on basic necessities like food. Tourism is seen as a luxury and demand for tourism decreases. 2. Leisure time 5-day work weeks and paid leave serve In Singapore, the 5-day work as an incentive for workers in DCs to week (since 2004) allows leave the country for a holiday during Singaporeans to travel out of that time as they would be free to do so. Singapore for a holiday especially if the Mon or Fri is a public holiday. In DCs like Australia and New Zealand, workers get an average of 4 weeks of paid leave. 3. Lifestyle changes A fast-paced lifestyle especially in Persatuan Bawean Singapura urban cities entails stress where has annual trips to the Indonesian deadlines have to be met and workers island of Bawean where more work for long hours causes people to than 20% of Singaporean Malays want a vacation as a break from all the can trace their heritage. stress. Charity organisations like As people become more well-informed, Habitats for Humanity help they would like to find out more about organise such voluntourism trips. themselves and their ancestors leading to ancestry tourism where people trace back their ancestry. Volunteer tourism (or voluntourism) is where youths and young adults spend their vacation doing volunteer work like building houses.
  4. 4. Supply factors forgrowth of tourism Elaboration Example(5As SO GOODY GOOD)1. Amenities Accommodation is one key factor that In Singapore, accommodation tourists look at when choosing the costs as low as S$49nett/night to tourist destinations. A range of as high as S$1000nett/night. In accommodation allows tourists to backpackers’ inns, tourists may choose based on their budgets. be able to book individual beds per night while in luxury hotels, Large shopping malls and shopping rooms are priced per room per centres can provide a shopping night. experience that is attractive to tourists. In a modern-day shopping mall, there In Singapore, Orchard Road has are restaurants and entertainment spots. been designated as a shopping Designated areas for shopping and street with many shopping malls entertainment have also been set up. beside it.2. Attractions Different types of attractions that cater China has the Great Wall in to the different needs of the domestic Beijing, the ancient city of Dali and international tourist attracts them to in Yunnan and Mount Everest in the tourist destination. Tibet to cater to the different desires of the tourists.3. Accessibility An internal transport network will Singapore has established itself facilitate movement of tourists from as a transportation hub with a one place to another. A good internal good land transport network. transport network will ensure that MRT lines across the island and tourists arrive at a destination in the the large fleets of buses make it shortest time possible. easy to travel around Singapore. Airports are becoming more important Changi Airport is connected to as air travel becomes more frequent due more than 180 cities in over 50 to increasing affordability of air tickets. countries and is able to accomm- A good external transport network odate the Airbus A380, a large allows more tourists to be brought in plane which cannot fit in smaller from around the world. less developed airports.4. Affordability With low-cost carriers (eg. JetStar) The cost of a low-cost carrier trip offering low prices, the cost of travel from Canberra, AUS to Kuala reduces. Sometimes, in mature tourism Lumpur, MAS is less than a trip economies, international tourism is from Canberra to Perth. Hotels in cheaper and more attractive than Australian cities are slightly domestic tourism. more expensive as the tourism industry there is more mature.
  5. 5. 5. Advertising Countries may advertise itself through Visit Malaysia campaign and the media (eg. radio, television, Welcome to Taiwan campaign Internet, printed text in the form of are two examples of campaigns newspapers, magazines, brochures, held by countries to attract posters, books, billboards and tourists. advertising space on vehicles). They may also organise campaigns to attract people from other countries.6. Services Subsidiary services include marketing, In China, the China National (subsidiary, reservations and coordination among Tourism Administration (CNTA) quality) tour agencies. It is usually done by a is responsible for China’s national body such as a tourism board. tourism industry. In Singapore, the Singapore Tourism Board (STB) sets up the Singapore Visitors Centre in Orchard Road to help with tourists’ queries. Quality service would leave a STB formed its Service Quality favourable impression on tourists who Division in 2003 and came up may make repeat visits and recommend with the Go-the-Extra-Mile-for- the country to their friends. Hotel and Service (GEMS) which aims to retail management worldwide are improve service levels. sending staff for training or hiring consultants to help train employees.7. Government – Erosion of political barriers has boosted The collapse of the Iron Curtain Reduction in tourist travel into and out of countries in 1990 has led to increased political barriers which previously had strict travel tourism in Eastern Europe. restrictions. Tourists from other parts of the world can now explore Eastern Europe more freely and citizens are heading abroad for holidays.8. Globalisation – Due to increased globalisation, Singapore has various venues Meetings, business travel is becoming more (eg. Suntec International Conv- Incentives. impactful in the growth of global ention and Exhibition Centre and Conventions, tourism. MICE events are held at Sands Expo and Convention Exhibitions different venues in different countries Centre) to host MICE events. (MICE) travel and during the events, business And in 2006, Singapore hosted travellers may make use of them to take the IMF meeting and World Bank a holiday. convention and during that time, hotels around the area were fully booked and the retail sector’s earnings were boosted.