Presentation outline What is vitality? Why is tourism a source of city vitality? The tourism VITALITY model: Eight potential contributions of tourism to a city The 10 As of successful international tourism destination cities Tourism’s eight individual contributions Summary
Definitions of vitality V Synonyms: Ability to live and grow animation, I briskness, exuberance, jazziness, T liveliness, Energy or vigour lustiness, A peppiness, robustness, sprightliness, L vibrance, Power to endure or sustain vibrancy, I vigorousness Antonyms: T inactivity, Vibrancy or liveliness lifelessness Y
The tourism VITALITY model V = Visitors & voters I = Industrial diversification T = Tax revenues A = Attractiveness L = Lifestyles & QOL I = Income T = Transportation Y = Yield
Visitors Tourism brings out-of-town visitors to a city, in the thousands or millions. For example, Macau received 28 million visitors in 2011; San Francisco welcomed 15.9 million visitors in 2010; and Beijing hosted 200 million visitors in 2011.
Voters Because of the beneficial economic impacts and aesthetic improvements to a city brought about through tourism, local voter residents may be more satisfied with their lives in a city. The U.S. Travel Association, for example, noted that each U.S. household would have to pay $1,055 more in taxes without the tax revenue generated by tourism. That kind of statistic helps politicians get votes in elections.
Diversifying the economic portfolio Economic diversification results from the development of tourism in a city. Other industries tend to come and go; but tourism tends to prevail and grow. Tourism brings “new money” into a city’s economy; it does not merely “recycle” money from one economic sector to another economic sector. Income from tourism circulates several times in a city’s economy.
Las Vegas and Macau These are two well-known examples of cities that have been completely transformed through tourism and mainly because of casino gaming operations. Casino gambling was legalized in Las Vegas in 1931; gambling in Macau has been legal since the 1850s. Las Vegas had 38.9 million visitors in 2011; 4.87 million were convention delegates; Clark County received $9.2 billion from gaming revenues. Visitors to Macau had total expenditures of US$ 34.8 billion in 2011; $30.5 billion was spent on gaming expenses.
Waterfront development diversification There are many great examples around the world of tourism transforming waterfronts and replacing ports and other traditional industries that were in decline or had failed. The examples below are from Dubai; Port Louis, Mauritius; and the Victoria and Alfred Waterfront in Cape Town, South Africa.
Tax generation for governments The U.S. Travel Association estimated that tourism directly generated $124 billion in tax revenues for local, state and federal governments in 2011. Statistics Canada estimated that tourism activities generated CA$ 19.2 billion in government revenues for Canada in 2009.
Phoenix case study on hotel taxcontributions The Greater Phoenix CVB surveyed 41 hotels (45% of total room capacity) in 2009. These hotels contributed $169 million in total property and sales taxes; or $6,300 per room. School districts and community colleges received $24 million of this to operate facilities.
Attractiveness The Guggenheim Bilbao is 962,358 visitors in 2011; 62% were foreigners a great case study in how tourism significantly enhanced the attractiveness of a city and its surrounding region. A survey indicated that 79% of the people who visited the Basque region came with the intention of seeing the GuggenheimThe Guggenheim Bilbao Museum, Spain (Frank Gehry) Bilbao.
Festivals and events Festivals and events draw tourists, add vibrancy to a city, and augment the cultural offerings for local residents. The Edinburgh International Festival in Scotland is a great example. 270,000 people attended the Festival in 2010.
Shopping, markets and dining Tourists as well as local citizens are attracted to market areas, where they can shop, dine, and relax. Salamanca in Hobart, Tasmania in Australia is a good example.
The 10 As of Successful TourismDestinations Awareness Appearance ActionAttractiveness Activities Accountability Availability Assurance Access Appreciation
Leisure, recreation and tourism areintertwined City improvements intended to draw tourists also usually appeal to and serve local residents. Therefore, it’s hard to draw a line between leisure, recreation, and tourism. Chicago, Illinois is a great example of this point. It’s Lake Michigan waterfront has developed into a major leisure and recreation amenity for Chicagoans, as well as having several major tourist attractions including Navy Pier and the Museum of Science and Technology.
Local residents in San Antonio,Texas talk about tourism and QOL This is a second good case study from the USA. This video production includes short interviews with San Antonio residents talking about tourism’s positive impact on their lives within the city.
Tourism helps build a robust economy Tourism generates many jobs for local people and income for tourism businesses of many types. Visitors spending results in sales, employment, wages, and taxes to businesses and non-profit organizations, residents, and government agencies.
Tip-of-the-iceberg concept The “multiplier” effects of tourism on income and employment have long been recognized as being highly beneficial. Tourism has direct, indirect, and induced effects on city economy.
Tourism contributes to transportand infrastructure improvements Tourism is often a major factor leading to improved transportation and related infrastructure systems. Many new airports, highways, bridges, railways, and other means of access to and within city destinations have been significantly justified by current and expected future tourism levels. This is certainly the case in China’s Pearl River Delta, where the new Hong Kong Zhuhai Macao (HKZM) Bridge is now under construction, as is a new island staging point and rapid light transit rail system in Macau.
Return on investment For a city government and other agencies, there is an excellent return on investment (ROI) from tourism. The U.S. Travel Association (USTA) describes this as “Travel Promotion’s Virtuous Cycle.”
ROI in Houston, Texas The Greater Houston Convention & Visitors Bureau (GHCVB) is the official DMO for the city of Houston and Harris County. In GHCVB’s FY’11, the Bureau estimated: Gross Return: $651,333,600 Investment: $15,487,988 ROI: $42 for every $1 of investment+ $55,000,000 in domestic and international publicity was generated
V Summary: Tourism is a Source of City VitalityI Attracts visitors which tends to makeT a city more diverse and lively Promotes city economic growth andA diversification Enhances the quality of life of local citizensL Expands the cultural, leisure and recreation offerings in a cityI Helps to improve the aesthetics and beauty of a city Encourages sustainable developmentT Animates and adds energy and vibrancy to a cityY