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This text introduces the basic definition of tourism, identifies major participants and forces shaping the industry, explains historical factors that encouraged its development, and discusses its impact on geography. It also highlights the importance of studying tourism from marketing, management, and financial perspectives, identifies future challenges and opportunities, and explores career prospects. Additionally, it covers the global economic impact of tourism and provides a historical overview of travel from ancient civilizations to the Renaissance era.
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HFT3700 Tourism Managementby Tad Hara • Syllabus • Introduction • Name • Year (junior, senior etc) • Major • What you expect from this class? Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
Chapter One: Introducing the World’s Largest Industry, Tourism Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
Understand and explain the basic definition of tourism Identify the major participants and forces shaping the tourism industry Explain the historical factors that encouraged the development of tourism Explain the impact of physical, human, and regional geography on tourism activities Explain why tourism should be studied from marketing, management and financial perspectives Identify future challenges and opportunities facing the tourism industry Discuss career prospects in the tourism industry Learning Objectives Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
Services and Tourism • Service and Tourism go hand in hand • Growth rate of services sector faster than any other • Tourism is the leader in the production of new jobs • Tourism has developed an important part of the economic foundation of many countries Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
What countries are expected to produce the largest amount (absolute terms) of Travel & Tourism Economy GDP in 2004? (US$ million) What countries are expected to produce the largest amount (relative terms) of Travel & Tourism Economy GDP in 2004? (& of total GDP) Tourism Globalization Quiz (1)http://www.wttc.org/2004tsa/topten.htm Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
What countries are expected to generate the largest amount (relative terms) of Travel & Tourism Economy Employment in 2004? (% of Total Employment) What countries are expected to generate the largest amount (absolute terms) of Travel & Tourism Economy Employment in 2004? ('000 of Jobs) Tourism Globalization Quiz (2)http://www.wttc.org/2004tsa/topten.htm Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
What is Tourism? • “Tourism is the temporary movement of people to destinations outside their normal places of work and residence, the activities undertaken during their stay in those destinations, and the facilities created to cater to their needs” Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
A Tourism Model • Dynamic and interrelated nature of tourism • The traveling public (tourists) are the focal point (heart) of the model • Tourism promoters link the traveling public with the suppliers of services • Tourism suppliers provide the services that tourists need when they travel • External forces affect all participants in tourism; tourists, promoters and suppliers Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
The History of Tourism • Early travelers migrated for food and hunting • Phoenicians*, Olmecs**, early Chinese traveled for trade and military control • The Empire Era • Affluent population with time and money to travel • Safe and easy travel • Widely accepted currencies • Widely used languages • Legal system which protects personal safety • http://home.cfl.rr.com/crossland/AncientCivilizations/Middle_East_Civilizations/Phoenicians/phoenicians.html • ** http://www.crystalinks.com/olmec.html Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
The History of Tourism, continued • The Middle Ages (5th to 14th centuries) and the Renaissance Era (14th to 16th centuries) • Transportation and safety declined • Less acceptance of currencies and less knowledge of common languages • Some travel by crusaders to Holy Land • Marco Polo’s historic travels in the late 13th century • Increased interest in travel for commerce and pleasure Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
“The Travel of Marco Polo” Emperors and Kings, Dukes and marquises, Counts, Knights, and townsfolk, and all people who wish to know the various races of men and the peculiarities of the various regions of the world, take this book and have it read for you. Here you will find all the great wonders and curiosities of Greater Armenia and Persia, of the Tartars and of India, and of many other territories. Our book will relate them to you plainly in due order as they were related by Messer Marco Polo, a wise and noble citizen of Venice, who has seen them with his own eyes…..(written in about 1260) [Iraq] ….In Baghdad, the Caliph of all the Saracens in the world has his seat, just as the head of all the Christians in the world has its seats at Rome. Through the midst of the city flows a very large river, by which travelers may go to Indian Sea. It is in Baghdad that most of the pearls are pierced that are imported from India into Christendom…. It is a great centre for the study of the law of Mahomet and of necromancy, natural science, astronomy, geomancy, and physiognomy. It is the largest and most splendid city in all these parts. Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
[Japan] “Japan is an island far out at sea to the eastward, some 1500 miles from the mainland. It is a very big island….They have gold in great abundance, because it is found there in measureless quantities…And the value of it is almost beyond computation. “(p212) Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
Tourism Today • It is still fascinating to travel to foreign places, even though you can guess how they look like. • Please travel and spend good tourism dollars to stimulate local economy. Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
The History of Tourism, continued • The Grand Tour Era (1613 to 1785 A.D.) • Trend of luxurious travel started by wealthy English • Developed as a status symbol and spread throughout Europe • Goal was to experience the “civilized world” and study the arts and sciences • These travels often lasted for several years • Growth in travel for business reasons Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
The History of Tourism, continued • The Mobility Era (1800-1944) • Growing economic prosperity • Increase in systems, modes, and speeds of travel (roads, railroads, steamships) • Thomas Cook developed tour packages for mass travel • Invention of automobile and airplane expanded freedom to travel Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
The History of Tourism, continued • The Modern Era (1945 to present) • Paid vacations introduced in the early 1900’s made leisure travel possible for working and middle classes • Millions of people were introduced to international travel during World War II • Postwar prosperity made mass ownerships of automobiles possible • Advent of jet travel shortened travel time • Time, money, safety and interest in travel led to unparalleled growth of tourism • Development of mass tourism Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
Bringing Tourism into Focus • Typical reasons for travel • Vacation and leisure trips • Visits to friends and relatives • Business and professional trips • Host community affected by tourism • Can study tourism from a variety of perspectives • Wide variety of questions relating to tourism need to be answered • Technology having unprecedented affect on tourism industry Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
Geography Describes the Traveler’s World • Physical geography- study of natural features of region • Human geography- study of a region’s cultures and peoples • Regional geography-combination of physical and human geography Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
Studying Tourism from Business Perspectives • Marketing • Management • Finance • See some examples: Oil price level and our business environment Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
Tourism’s Challenges and Opportunities • Encourage growth of tourism as it creates jobs and brings money into the community or country. • It also serves an important need for the consumer. • May change social structure • Unplanned tourism can lead to excessive demands of transportation, public services and degrade the environment. Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
Where do you fit in? • Projected to remain the world’s largest industry. • Travel and tourism sales will grow at a rate of 4.1% a year through the year 2020. • Have the choice of working in a really fun place! Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
Web Resources • I recommend those web sources for our study. • CIA World Factbook http://www.cia.gov/cia/publications/factbook/ • World Tourism Organization (WTO) http://www.world-tourism.org/ • Bureau of Economic Analysis, US Commerce Department http://www.bea.doc.gov/ Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
Geographical Distribution of Terrorism Events Figure 1-1 "Patterns of Global Terrorism: 2000." Source: U.S.State Departmenthttp://www.state.gov/s/ct/rls/pgtrpt/2000/ Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
Figure 1-1 Regional Conflicts in the world at 21st Century Source: INCORE 2000, http://www.incore.ulst.ac.uk/cds/countries/ Figure 1-1 Regional Conflicts in the World at 21st Century Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
“Police officers, emergency workers, and others survey the ruins of a nightclub after a bomb blast destroyed the club, killing more than 180 people and injuring more than 300 others in Denpasar, Bali, Indonesia, Sunday, Oct. 13, 2002. A second bomb exploded about 100 meters (109 yards) from the U.S. consular office in Denpasar, the capital of Bali, said Lt. Col. Yatim Suyatno, a police spokesman” (AP Photo/Jack Hamilton) Tourism Industry “Tourism can be one of the few development opportunities for the poor.”World Tourism Organization 2002 Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
“Facts About Bali: ECONOMY: Known as the Island of the Gods, Bali has been one of the world's most popular tourist destination for decades. The likelihood of the blast scaring away hundreds of thousands of tourists could be a devastating blow to not only the island's economy but that of the whole of Indonesia, which is struggling to recover from the Asian financial crisis of the late 1990s. Sat Oct 12,10:33 PM ETBy The Associated Press Economic Impact of Terrorism Dead bodies line a street at the site of a bomb blast in Kuta beach on the resort island of Bali on October 13, 2002. Bombs ripped through a packed nightspot on Indonesia's traditionally tranquil tourist island of Bali overnight, killing at least 182 people, many of them foreigners. (Stringer/Indonesia/Reuters) Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved
Tourism Study • Managerial Perspective – some dilemma • What to do with limited resources? • Should “Profit Maximization” (in Corporate Finance) concept always hold? What will you, and should you do as a manager? http://www.nationalgeographic.com/travel/sustainable/index.html Cook: Tourism: The Business of Travel, 3rd edition (c) 2006 Pearson Education, Upper Saddle River, NJ, 07458. All Rights Reserved