Tourism city vitality a m morrison

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Tourism City VITALITY Model

Tourism City VITALITY Model

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  • 1. Tourism as a source of city vitality Prof. Alastair M. Morrison, Ph.D. International Mayors’ Forum on Tourism 2012©2012 Alastair M. Morrison September 28, 2012
  • 2. 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
  • 3. 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
  • 4. The tourism VITALITY model V = Visitors & voters I = Industrial diversification T = Tax revenues A = Attractiveness L = Lifestyles & QOL I = Income T = Transportation Y = Yield
  • 5. Visitors & VotersVITALITY
  • 6. 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.
  • 7. Visitors
  • 8. 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.
  • 9. Industrial diversificationVITALITY
  • 10. 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.
  • 11. 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.
  • 12. 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.
  • 13. TaxesVITALITY
  • 14. 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.
  • 15. 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.
  • 16. AttractivenessVITALITY
  • 17. Not a smokestack industry
  • 18. 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.
  • 19. 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.
  • 20. 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.
  • 21. The 10 As of Successful TourismDestinations Awareness Appearance ActionAttractiveness Activities Accountability Availability Assurance Access Appreciation
  • 22. Lifestyles and Quality of Life (QoL)VITALITY
  • 23. 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.
  • 24. 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.
  • 25. IncomeVITALITY
  • 26. 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.
  • 27. 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.
  • 28. TransportationVITALITY
  • 29. 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.
  • 30. Hong Kong Zhuhai Macao Bridge
  • 31. YieldVITALITY
  • 32. 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.”
  • 33. 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
  • 34. 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
  • 35. Alastair M. Morrison, Ph.D.Distinguished Professor Emeritus, School of Hospitality andTourism Management, Purdue University, USAPresident, International Tourism Studies Association (ITSA)CEO, Belle Tourism International Consulting Ltd., ChinaIMTF, Zhengzhou, Henan ProvinceContact information:alastair@belletourism.comalastair@purdue.eduTel: 1-765-409-0004 (USA)Tel: 86-13761855678 (China) © Alastair M. Morrison