Chapter 3 paola mateus tourism


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Chapter 3 paola mateus tourism

  1. 1. Chapter 3Tourism<br />
  2. 2. After Reading and Studying This Chapter, You Should Be Able to:<br />Define tourism<br />Outline the important international and domestic tourism organizations<br />Describe the economic impact of tourism<br />Identify promoters of tourism<br />List reasons why people travel<br />Describe the sociocultural impact of tourism<br />Describe ecotourism<br />
  3. 3. Characteristics<br />Year-round economic driver<br />Accounts for 10.2% of world GDP 7.8% of global workforce<br />Employer of 200 million people or 7.8% of the global workforce<br />Spending on tourism is $72.3 billion<br />Leading producer of tax revenues<br />
  4. 4. Tourism Offers Greatest Global Employment Prospects<br />Trend factors<br />The opening of borders despite security concerns<br />An increase in disposable income and vacations<br />Cheaper and more exclusive flights<br />An increase in the number of people with time and money to travel<br />More people with the urge to travel<br />
  5. 5. The World Tourism Organization States:<br />“Tourism comprises the activities of people traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business, and other purposes.”<br />
  6. 6. Tourism Can Be Categorized by the Following Factors:<br />Geography<br />Ownership<br />Function<br />Industry<br />Motive<br />
  7. 7. Airlines<br />Change occurred in 1978<br />Purpose is to allow a free market of competition (fare structures)<br />Change in companies and the way airlines are doing business<br />
  8. 8. Changes Seen Since September 11, 2001<br />Business travelers spend less<br />Airlines’ fuel costs, pensions and security costs are on the rise<br />Major airlines are laying off employees<br />Delivery of new jets is delayed<br />Closing hubs, reservation and maintenance centers to cut costs<br />
  9. 9. The Hub-and-Spoke System<br />Enables passengers to travel from one smaller city via another smaller city via a hub<br />Hubs are the centers for connections around the world<br />Benefits<br />Airlines can service cities at a lower cost<br />Airlines can maximize passenger loads from small cities, thereby saving fuel<br />
  10. 10. Cruise Ships<br />A floating resort<br />8.2 million passengers vacationed on a ship in 2003 alone<br />Most cruise ships sail under foreign flags<br />Lower labor cost<br />US ships are not permitted to operate casino-style gambling<br />Lower construction costs<br />
  11. 11. Cruise Market Segments<br />Mass market<br />Middle market<br />Luxury market<br />
  12. 12. World and Domestic Organizations<br />Click on the links below for more information:<br />World Tourism Organization<br />International Air Transportation Organization<br />International Civil Aviation Organization<br />Organization for Economic Cooperation and Development<br />Pacific Asia Travel Association<br />Travel Industry of America<br />World Travel and Tourism Council<br />
  13. 13. Economic Impact of Tourism<br />International travelers spend about $72.3 billion on travel-related expenses in the US annually<br />20.8 million people are directly employed in the industry<br />Travel generates $95.6 billion yearly in tax receipts<br />Approximately 40 million international travelers visit the US each year<br />
  14. 14. Multiplier Effect<br />New money spent by tourists is then re-spent by hotels and restaurants in the community for goods and services<br />Leakage occurs when money must be spent outside the community for goods unavailable within the community<br />
  15. 15. Travel Agencies<br />Serve as a middle person <br />Agents use computer reservation systems<br />Make money on commissions charged to hotels and car rental bookings<br />Charge clients a fee for their services<br />What does the future hold for travel promoters?<br />
  16. 16. Corporate Managers<br />Work within a large corporation<br />Can still work with travel agencies<br />Can also be the “meeting planner”<br />
  17. 17. Wholesalers<br />Consolidated services<br />Airlines<br />Other transportation carriers <br />Ground service suppliers <br />Tours<br />Sold to the public<br />
  18. 18. National Travel Offices<br />National Offices<br />US now has an NTO<br />Private organization<br />Examples of other NTO’s<br />Canada<br />Germany<br />Australia<br />
  19. 19. Destination Management Companies<br />Service organizations<br />Meet the needs of their clients<br />They sell destinations <br />Meeting planners <br />Incentive companies<br />
  20. 20. Reasons People Travel<br />To experience new and different surroundings<br />To experience other cultures<br />To rest and relax<br />To visit friends and family<br />To view, or participate in, sporting/recreational activities<br />
  21. 21. Reasons for Anticipated Increase in Tourism<br />Longer life span<br />Flexible working hours<br />Early retirement<br />Greater ease of travel<br />Tendency to take shorter, more frequent trips<br />Increase in standard of living<br />
  22. 22. Appeal of Travel<br />Scenic beauty<br />Pleasant attitudes of locals<br />Suitable accommodations<br />Rest and relaxation<br />Airfare cost<br />Historic and cultural interests<br />Cuisine<br />Water sports<br />Entertainment<br />Shopping facilities<br />Sports<br />
  23. 23. Trends in Business Travel<br />Companies are requiring employees to take the lowest reasonable airfare<br />37% of employees stay over a Saturday night when it will reduce the airfare<br />77% impose a size limit on rental cars, up from 70%<br />14% regularly make employees stay in economy hotels such as Hampton Inn or Courtyard by Marriott<br />
  24. 24. Social and Cultural Impact of Tourism<br />Tourism pollution <br />Cultural awareness<br />Higher levels of employment<br />
  25. 25. Ecotourism<br />Buzzword<br />Seeks to minimize the impact of tourism<br />Natural environment and native cultures<br />
  26. 26. Trends in Tourism<br />Ecotourism <br />Number of tourist arrivals will continue to increase<br />Governments will continue to recognize importance of tourism<br />Increase in number of bi-lateral treaties<br />
  27. 27. More Trends<br />Internet booking will increase<br />Technology will continue to advance<br />Marketing partnerships and corporate alliances will continue to improve<br />Ticket-less air travel will become commonplace<br />Managing destinations has become a challenge<br />Increase in number of “boutique” airlines<br />Increase in use of automatic airport check-ins<br />
  28. 28. Even More Trends…<br />Continued expansion in the cruise industry<br />More alternate cruises<br />Increased concern for health and safety of travel and tourism<br />Increase in “nature” tourism<br />