Tertiary sector


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Tertiary sector

  2. 2. WHAT ACTIVITIES ARE INCLUDED IN THE TERTIARY SECTOR? TOURISM, A BOOMING ACTIVITY The tertiary sector, or the service industry, includes all the economic activities which do not produce material goods, but provide services to people. It includes, commerce, communications, transport and leisure activities. One of the fastest growing leisure activities is tourism. A little bit of history Until the second world war tourism was not very important economically. Only the European nobility and upper classes could afford to travel for pleasure and they made long journeys to exotic places (Egypt, India), to spa towns (Spa, Baden-Baden) and to coastal cities (San Sebastián, Biarritz, Monte Carlo). Today, however, the tourist industry is one of the most important economic activities in developed countries
  3. 3. Spa, Belgium
  4. 4. Baden-Baden
  5. 5. THE TERTIARY ECONOMIC SECTOR In developed countries, services are very widespread and the majority of people have access to basic services, such as health care and education. In many countries the service industry accounts for a large share of GDP and employment. In developing countries, services are insufficient, and most of the population does not have access to basic services. The sector is far less important, in terms of employment and GDP, as low-paid services requiring few qualifications predominate, such as domestic service and street traders. Regional differences
  6. 6. CLASSIFICATION OF THE SERVICES • Private or market services are provided by private companies, who charge money to people or other companies who require the service. Their main objective is to earn profits. • Public or non-market services are provided by the State with money collected through taxes. Their purpose is to provide basic services to society, rather than making profits. They include public administration, health care and education.
  7. 7. Location of services Traditionally, services providers have located themselves close to consumers. The most specialised were located in large cities while less specialised ones were distributed more uniformly around the country. Today, improvements in transport and new communication technologies means that certain services have moved to areas with lower costs, such as small and medium-sized towns and underdeveloped regions. HOW IS THE LOCATION OF THE SERVICES LIKE?
  8. 8. 200 shops and 40 restaurants
  9. 9. COMMERCE DEFINITION: Commerce or trade is the exchange of goods and services between producers and consumers in exchange for some form of payment. Its aim is to meet the needs of the population. There are two types of markets: • Physical markets, where merchandise is present, such as produce markets. • Abstract markets, where it is not present, such as stock exchanges or securities markets.
  10. 10. Phisycal markets, like this produce market, offer goods which are physically present.
  11. 11. In abstract markets, like this stock exchange where shares are bought and sold, the goods are not present. Vocabulary STOCK EXCHANGE: bolsa SHARES: acciones
  12. 12. Domestic trade is carried out within the borders of a country. It can be wholesale*, when large amounts of merchandise are bought directly from producers and then sold to smaller shops; or retail*, which sells directly to consumers. Today, because of new technologies, telesales and internet shopping are becoming increasingly popular. Foreign trade is carried out between countries. Importation is the purchase of foreign goods and services, exportation the sale of goods and services abroad. Both exchanges are recorded annually in a document called the balance of payments, which can be positive (in surplus) if the value of exports exceeds the value of imports, or negative (in deficit), if the opposite is true. Wholesale: al por mayor Retail: al por menor Comercio interior y exterior DOMESTIC AND FOREIGN TRADE
  13. 13. LAND TRANSPORT Land transport is the most frequently used type of transport in the world and the infrastructure forms the largest global transport network. There are two main types of network. Road transport Advantages Disadvantages it is door-to-door (directly from the starting point to the destination) and is very flexibile with regard to time. the passenger and goods capacity is limited and that high densities of traffic cause accidents and pollution, in particular CO2 emissions, which cause climate change. Rail transport Advantages Disadvantages it has high capacity, it is safe, fast and has low levels of pollution if it is electrified. the network does not always go door-to door, and construction and maintenance costs are high, especially in the case of high- speed rail.
  14. 14. WATER AND AIR TRANSPORT WATER TRANSPORT Ships are used, above all, for the transportation of large quantities of merchandise by sea or navigable rivers and account for only a small percentage of passenger transport. Ships are ideal for the transportation of heavy, goods, over large distances such as oil, cereals, minerals or coal and also manufactures. The advantages are its large capacity and low cost. The disadvantages are that it is slow, and that accidents cause contamination of the waters. AIR TRANSPORT Air transport by plane is used for the transportation of passengers over long distances and the transportation of perishable (perecedero), urgent or lightweight goods. The advantages are it is fast, safe and the fact that the routes are not affected by geographic land features (mountains, rivers, etc.). The disadvantages are the high costs of operation and maintenance, the high price of fuel and the acoustic and atmospheric pollution it causes
  15. 15. The European transport network is one of the most modern and efficient in the world, especially in the member countries of the EU. – Road transport has a dense network of motorways. The railway network, is important for both passenger and goods transport, especially in the countries in the west and the centre of the continent. – Water transport has large merchant fleets*. Maritime transport has very active ports, such as Rotterdam, Antwerp, Hamburg, Le Havre, Amsterdam, London and Bilbao, on the Atlantic Ocean; and Marseille, Genoa, Barcelona, Valencia and Piraeus on the Mediterranean Sea. River transport is carried out along navigable canals and rivers, such as the Rhine (the busiest waterway* in Europe), the Danube and the Volga. – Air transport has major international airports, such as London, Frankfurt and Paris. THE EUROPEAN TRANSPORT NETWORK
  16. 16. TOURISM Definition Tourism is the temporary transfer of people from their place of residence to other places, for leisure purposes, for a period of more than 24 hours and less than one year. Since 1950, it has experienced enormous growth in developed countries, where it has become a mass phenomenon enjoyed by the middle classes. CAUSES EVOLUTION • The increase in the standard of living. • The generalisation of the five-day working week and paid holidays. • The improvement of means of transport and tourist facilities. • Tourist company marketing, which promotes tourism through advertising.
  17. 17. • Water tourism is the most popular form of tourism. It includes sun-and- sand tourism, along the coasts of temperate seas and the shores of some lakes; nautical tourism, based around nautical ports and marinas; and spas, located next to springs and thermal waters. • Mountain tourism includes skiing and sports and adventure activities, such as hiking (excursionismo), climbing (escalada), canyoning, paragliding(parapente), etc. • Rural tourism lets people find out about traditional activities and landscapes, visit agricultural museums, rest and purchase natural or artisanal products. • Other forms of tourism include cultural tourism, where people visit cities of historic, artistic or cultural interest; business trips, congresses and conventions, which value good communication and infrastructure; and religious tourism to holy* places such as Mecca, Rome, Santiago de Compostela or Jerusalem. TYPES OF TOURISM
  18. 18. EUROPEAN TOURISM Europe is both a major source and receiver of international tourists. – The high number of European tourists is due to the high standard of living and it is led by the Germans, the French and the British. – Tourists come to Europe because of the good transportation network, the diversity of the physical environment and the cultural wealth (riqueza cultural). In 2008, six out of the ten leading tourist destinations in the world were in Europe, most notable being France, Spain and Italy.