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Module 2

Tourism is a major global industry that generates over $1.3 trillion annually. It accounts for over half of exports from Least Developed Countries. The number of international tourists is expected to reach 1.8 billion by 2030. Tourism provides both direct income from tourist spending as well as indirect income and employment in industries that support tourism. Destinations and industries within tourism are interdependent, and tourist spending has a multiplier effect on local economies as money is respent locally. While business was traditionally the main purpose of travel, leisure travel now accounts for over half of international tourist arrivals, with people traveling to visit friends and family, engage in sports and recreation, or simply experience new places and cultures.

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0% found this document useful (0 votes)
130 views

Module 2

Tourism is a major global industry that generates over $1.3 trillion annually. It accounts for over half of exports from Least Developed Countries. The number of international tourists is expected to reach 1.8 billion by 2030. Tourism provides both direct income from tourist spending as well as indirect income and employment in industries that support tourism. Destinations and industries within tourism are interdependent, and tourist spending has a multiplier effect on local economies as money is respent locally. While business was traditionally the main purpose of travel, leisure travel now accounts for over half of international tourist arrivals, with people traveling to visit friends and family, engage in sports and recreation, or simply experience new places and cultures.

Uploaded by

Julianne Myles
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Did you know?

‣ 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:

1. The income generated by the consumption of goods and services by tourists.


2. The opportunity for employment in the service industries that are associated with
tourism.

Interdependency and the Multiplier Effect


- Interdependence - without attractions and hospitality establishments, there is usually
no popular destination.
- Without a proper destination to travel to, there may be no need for an airport.
- Without an airport, there may be less need for travel agents or people who help you plan
your vacation.
* Boracay island located approximately 315km or 196 miles south of Manila and has become
a very popular tourist destination.
* It was awarded the best island in the world in 2012 by the international travel magazine. \

* 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.

50,000 Worldwide Flights per day


- In these flights, about 3Million people travel for various reasons. However, they fail into
two broad categories: Business and leisure.
Business Traveler
- Business travel has become an important part of the hospitality and tourism industry with
airlines, rental cars and lodging being the biggest benefactors of business travel.
- Business travelers are considered those who travel for business purposes such as meetings,
conventions, trade shows, and exhibitions.

- 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.

Characteristics of Business Travel


Even though in recent years the amount of business travel has declined, still a high
percentage of the guests that check into mid-priced and luxury hotels arounf the world are
traveling for business reasons. In addition, a good portion of business travel nowadays is mixed
with pleasure.

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.

The Leisure Traveler


According to the UNWTO (United Nations World Tourism Organization) the largest
percentage of people traveling is for leisure with over 52% on international tourist arrivals with
563 million arrivals in 2012.

People that travel for leisure have what is known as Wanderlust.


Wanderlust means a strong feeling or impulse to wander or travel and explore the world.
Travel is an adventure and an experience that is such a personal feeling. These reasons
are why this group of travelers can be classified into seven common categories.









Seven Common Categories


1. Visiting Friends and Relatives - One of the strongest reasons people travel for leisure is the
desire to be with family and friends. Many times, lodging is not needed because they stay
with their own family and friends; however, tourist dollard are spent with family and friends
taking them to local restaurants, sites, and events.
2. Sports and Recreation - Another reason people travel for leisure is because of sports and
recreation. Destinations that offer sports or activity packages such as golf, tennis or hiking
attract large numbers of tourists. Large theme parks such as Disney Land or Euro Disney
offer recreational and entertainment activities for the whole family
3. Professional Development - People also travel for Professional Development. People choose
a destination because of the learning opportunities available such as someone traveling from
China to the Philippines to study English as a Second Language course.
4. Events - Many times, people arrange their leisure travel around specific events where the
event is more important than the destination such as the Olympics, World Soccer Cup, or the
Super Bowl in the USA. Another large draw for travelers is world fairs such as the Carnival
in Rio de Janeiro or the Calgary Stampede in Canada.
5. Religion - Religious holidays and pilgrimages have long motivated people to travel. The Hajj
is an Islamic pilgrimage to Mecca and the largest gathering of Muslim people in the world
every year. It is one of the Five Pillars of Islam which must be carried out by every able-
bodied Muslim who can afford to do so at least once in his or her life.
6. Cultural and Eco Tourism - Both Cultural and Eco Tourism are focused more on individual
values. They have been labeled as “Tourism with a Conscience.” Or in other words, they
promote responsible travel. Cultural Tourism is the form of tourism concerned with a country
or region’s arts and culture. It generally focuses on traditional communities who have diverse
customs, unique forms of art and distinct social practices, which basically distinguishes it
from other types of cultures.

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

Cultural Tourism (Negative Impact)


- Overcrowding
- Destruction of environment
- Increased crime
- Friction between tourists and residents
- Changes in hosts’ way of life
- Impact on the destination’s authenticity and integrity

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

Top travel destinations


Big Island, Hawaii, USA

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