1. A tourist is anyone who travels to and stays in a place outside his or her usual environment for at least 24
hours 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 promoting
domestic tourism. The presence of leakage to airfare reduces significantly hence more money is spent in
the country itself. It is also significant during recessions as compared to international tourism, it is
cheaper hence more people will travel in the country.
Tourism is one of world’s largest and fastest-growing industry:
1. more than US$1 trillion in 2010
2. 6% of overall exports of goods and services
3. 4th as an export category (eg. foreign-owned hotels in other countries)
4. 5% of world GDP; 2-10% of average countries’ GDP
5. 6-7% of jobs worldwide
Trends of tourism:
1. 83% of countries have tourism as top 5 export industry
2. 38% of countries have tourism as main source of revenue
3. Middle East and Asia Pacific seeing fastest growth, Europe and Americas seeing slower growth
Tourism figures [2010]
Top 5 tourist arrivals Number of tourists (mil) Top 5 tourism receipts Amount earned (US$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. 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 Examples
Natural attractions Niagara Falls, USA
Bali Beach, Indonesia
Cultural-historical attractions The Great Pyramids, Egypt
Mayan Ruins, Central America
Human-made attractions Florida Disneyland, USA
Genting Highlands, Malaysia
Event 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. Demand factors for
Elaboration Example
growth 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. Supply factors for
growth 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. 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.