2. global tourism trends and changes

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2. global tourism trends and changes

  1. 1. Global Tourism Trends and Changes in the Global Tourism Industry
  2. 2. By the end of this lesson You should be able to: 1. Explain the benefits tourism brings to a country and its people 2. Describe the changing nature of global tourism 3. Describe the trends of both domestic and international tourism
  3. 3. So why is tourism important? It is a major contributor to the global economy in terms of: 1. Generating income for countries (GDP) 2. Creating employment for the people
  4. 4. So why is tourism important? Global GDP 2012 US$6,526.9 bn (9.2% of GDP) 2022 (Est.) US$9,939.5 bn (9.8% of GDP) Source: WTTC, 2012
  5. 5. So why is tourism important? Global Employment 2012 260 million jobs (8.7% of total employment) 2022 (Est.) 327.9 million jobs (9.8% of total employment) Source: WTTC, 2012
  6. 6. International Trends • Tourism has experienced continued expansion and diversification in the last 60 years • It is one of the largest and fastest-growing economic sectors in the world Tower Bridge and Cannery Wharf, London, UK
  7. 7. International tourist arrivals have shown uninterrupted growth: 277 million in 1980 to 983 million in 2011, expected to break 1 billion in 2012
  8. 8. International tourism receipts for 2011 are estimated at US$ 1,030 billion worldwide, setting new records in most destinations despite global economic challenges
  9. 9. International Trends • Market share of emerging economies has increased from 30% in 1980 to 47% in 2011 • Arrivals to emerging economies are expected to increase at double the pace (+4.4% a year) of those to advanced economies (+2.2% a year) Tourism in Rajasthan, India
  10. 10. Source: UNTWO, 2012
  11. 11. Domestic Trends • Singapore has experienced continued growth in international tourist arrivals and tourism receipts • Although fluctuations are present, tourism is moving generally in a positive trend The New Downtown, Singapore
  12. 12. Domestic Trends • Growth fuelled by launch of two integrated resorts in 2010 and other attractions such as Universal Studios Singapore • Events such as the F1 Singapore Night Race in 2010 which has attracted S$160 million in tourism receipts alone Resorts World Sentosa, Singapore
  13. 13. International Tourist Arrivals 13.1 mil 14 12 10 11.6 mil 9.8mil 10.3 mil 10.1 mil 9.7 mil 8 6 4 2 0 2006 International Tourist Arrivals 2007 2008 2009 2010 Source: STB, 2011 2011 International tourist arrivals to Singapore increased by 12.9 per cent from the previous year to a new record of 13.1 million in 2011
  14. 14. Tourism Receipts 2006-2010 Source: STB, 2011 Tourism receipts increased to a record high of S$18.9 billion, propelled by various factors such as the launch of the IRs and other events
  15. 15. Changing Nature of Tourism 1. Evolution of mass tourism to niche tourism 2. From tour groups to independent travellers 3. Growth of long haul destinations 4. Development of package holidays and short haul destinations
  16. 16. Changing Nature of Tourism Evolution of mass tourism to niche tourism • Mass tourism- act of visiting a destination with large amounts of people at one time • Dominated by Tour Operators offering low cost, standardised package tours
  17. 17. Changing Nature of Tourism Evolution of mass tourism to niche tourism • Niche tourism targets a specific market segment, usually with a well-defined product that can be tailored to meet the interests of the tourists • What are some types of niche tourism you can think of?
  18. 18. Changing Nature of Tourism Tomatina, Bunyol, Spain
  19. 19. Changing Nature of Tourism Monkey Buffet, Lopburi, Thailand
  20. 20. Changing Nature of Tourism From tour groups to independent travellers • Tourism moving towards independent travel (e.g. backpacking) • Independent travel allows for more flexibility in travel itinerary • Tourists are not bounded by restrictions laid out by following tour groups
  21. 21. Changing Nature of Tourism Growth of long haul destinations • No standard definition of what is considered long or short haul destinations • Some consider long haul destinations to be more than 7 hours away by flight • Tourists moving away from regional destinations to those which are further away (e.g. Singapore to Brazil/ USA)
  22. 22. Changing Nature of Tourism Development of package holidays and short haul destinations • Tour operators have noted the changing nature of tourism as well • Tour packages moving towards adopting niche tourism types (e.g. food and wine tourism) • More long haul destinations included in packages
  23. 23. Chan Brother’s Premium Tours • Flights by Singapore Airlines or Silkair Only • Privileged access to Changi Airport Premier Club Lounges • Authentic, unique and in depth experiences set apart from the rest • Fine cuisine with diverse flavours • Group sizes with a few as 6 to depart
  24. 24. Changing Nature of Tourism Development of package holidays and short haul destinations • Short haul destinations have also tried to market themselves to niche markets • For Singapore, rise in ecotourism and community-based tourism in short haul destinations • E.g. Komodo national park, Orang Asli experience
  25. 25. Learning Points • The trend of global tourism is positive seen from both rising tourist arrivals and tourism receipts • Niche tourism types and independent travelling have become popular • Package tours are adopting elements of niche tourism to attract the diverse market • Tourism is the way to go because of the economic benefits it brings

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