Module 2
Module 2
‣ Tourism is the fifth largest export sector in the world, after fuels, chemicals and automotive
products, generating over US dollar 1.3 Trillion a year in exports
‣ Tourism accounts for 56% of the exports of services of Least Develop Countries (LDCs)
‣ In 2016, over one billion international tourists traveled the globe. By 2030, the number of
international tourists is expected to reach 1.8 billion.
Tourism Definition
• World Travel and Tourism Council, a.k.a. WTTC
• According to the WTTC, tourism comprises the activities of persons traveling to and
staying in places outside their usual environment for not more than one consecutive year
for leisure, business, and other purposes.
• The organizations that serve the traveler away from home include restaurants, hotels,
country clubs, cruise lines, all facets of transportation, national and state parks, and many
private places.
Economic Driver
It is vital for many countries fro many reasons, but the two major reasons are:
* If Boracay didn’t have any activities to offer to people, then the airlines and cruise ships
would not sell tickets.
Multiplier Effect - this is the respending or chain reaction. The greater the multiplier
effect, the more advantageous tourist spending is to the local economy.
- Direct Spending - money that goes directly from the traveler into the economy. Includes
payment for hotel rooms, restaurant meals, rental cars, entertainment, souvenirs.
- Indirect Spending - Once the money has reached the owners of an organization, that money
is respent. Example, food service companies ideally buy food from local suppliers or
farmers.
Today’s Traveler
- Since the beginning of time, humans have traveled. Food, water, safety, or trade were the
early travel motivations.
- Soon the idea of travel emerged. The earliest travelers walked or rode domesticated
animals.
- Invention of wheel and the sail provided new modes of transporation.
- As technology improved, it increased individuals’ opportunities to travel
- As roads were improved and governments stabilized, interest in travel increased for
education, sightseeing, and religious purposes.
- The destinations choses for this type of travel is rarely a matter of personal preference but
rather where an organization need you to be for a meeting, conference or trade show.
- The main characteristics of business travel are: it is elastic, seasonal, and dependent on
meetings, conventions, exhibitions, and trade shows.
Elastic - Demand for business travel is elastic; demand changes based on the economy. A
poor economy will slow down leisure travel. Vacations will generally be postponed in a
downturned economy but this isn’t always true of business travel.
Seasonal - Business travel is also less seasonal than pleasure travel as business meetings
and travel occur year round where pleasure travel usually takes place during peak seasons, which
are usually during warmer weather or school breaks for children. This less elastic demand of
business travel allows hotels to balance out their yearly revenues.
Meetings - Meetings and conventions (a.k.a. congress outside the United States) account
for a large segment of business travel. Originally, a convention referred to large groups of people
gathered together for a business or professional meeting. Today’s definition of a convention can
be big or small groups that meet in one specific location.
Trade Shows - Another large group of business travel is trade shows and exhibitions held
maily for the sharing of information on a particular product or business. People generally travel
to these types of events to learn about the latest trends in an industry, to see demonstrations of
new technology, to meet old and new contacts, and learn more about their competition.
Cultural Tourism
Encounter cultural diversity while remaining a conscientious and responsible traveler.
Eco Tourism
Environmentally responsible travel and visitation to relatively undisturbed natural areas,
to enjoy, study and appreciate nature and any accompanying cultural features that promotes
conservation, has low visitor impact, and provides for beneficially active socio-economic
involvement of local populations.
Most eco-tourism destinations can be found indeveloping countries with vast natural
surroundings such as desrts, tropical rain forests, coral reefs, and ice glaciers. But eco-tourism is
not just walking through a rain forest; it is walking through a rain forest to study specifics or to
raise money for protection
Cultural tourism benefits - when people travel with responsibility during their cultural and eco-
tourism adventures, there are many positive benefits that impact the community.
Eco and Cultural Tourism Benefits
• Build environmental and cultural awareness and respect among cultures
• Provide positive experiences for tboth visitors and hosts
5 contributing factors
- the opening of borders around the world
- Rising family incomes
- Affordable airfare and other means of travel
- An increase in the number of people with more leisure time
- More people with the urge to travel