Chapter 9 Tourism

1. Chapter 9 Tourism • What is Tourism? • Benefits of Tourism • Tourism 2020 Vision • Five Ages of Tourism • Types of Travel • Economic Impact • The Multiplier Effect • Promoters of Tourism • Why People Travel • Social and Cultural Impact of Tourism • Ecotourism • Sustainable Tourism • Cultural, Heritage, Nature, and Volunteer Tourism • Trends Waikiki Beach is a popular tourist destination

2. Tourism • World’s largest industry! • World Tourism Organization: • A specialized agency of the United Nations • The leading international organization in the field • Plays a role in the • Development of sustainable tourism. • Development of universally accessible tourism. • Continuation of economic development. • Development of a global code of ethics for tourism.

3. Tourism • The WTO and the World Travel & Tourism Council declare the travel and tourism industry to have the following characteristics: • 24 hours a day, 7 days a week, 52 weeks a year economic driver • Accounts for 10.2% of the GDP = Gross Domestic Product • Employs 214 million people (7.8% of the global workforce) • $73.2 billion in spending in the U.S. • Leading producer of tax revenues • 4.6% annual forecasted growth until 2015

4. Benefits of Tourism • Tourism: • Provides governments with substantial tax revenues • Offers the greatest global employment prospects • This trend is caused by: • The opening of borders. • An increase in disposable income and vacations. • Reasonably-priced airfares. • An increase in the number of people with time and money. • More people with the urge to travel.

5. Tourism 2020 Vision • International arrivals expected to reach over 1.56 billion by 2020 • Europe, East Asia, the Pacific, and the Americas are the top receiving areas • There is interdependency between the various segments of tourism: Travel, lodging, foodservice, and recreation • Each segment is, to an extent, dependent on another for business

6. Traveling by Train • One of the main factors that led to railroads in the U.S. was the need to move goods and people from one region of the country to another • Cars and buses caused a decline in rail travel • Facing a possible collapse of passenger rail services, Congress passed the Rail Passenger Service Act in 1970 (amended in 2001)

7. The Railway Age… • Traveling by Train • One of the main factors that led to railroads in the U.S. was the need to move goods and people from one region of the country to another • The train made mass travel possible for everyone. Long distance travel became both cheaper and faster, making the horse and ship seem like ‘overpriced snails’.

8. Traveling by Train • The decline of rail travel started as early as the 1920s…For two main reasons, the bus and the car. • By 1960, airplanes had taken over much of the long distance travel market, further reducing the importance of the train. • Facing a possible collapse of passenger rail services, Congress passed the Rail Passenger Service Act in 1970 (amended in 2001)

9. Rail Travel • Shortly after, the National Railroad Passenger Corporation began operation as a semipublic corporation—established to operate intercity passenger trains—and moved in the direction of semi-nationalization of the American railroads. • The corporation is known today as Amtrak • While the U.S. tries to rejuvenate rail travel under the direction of Amtrak, rail service in other parts of the industrialized world is far ahead in progress

10. Rail Travel • Today, trains are becoming more energy and time efficient. • Maglevs can travel at speeds of over 300 miles per hour, lifted off the ground on a cushion formed by magnetic forces and pulled forward by magnets. • They run more quietly, smoothly, and can climb steeper grades than the conventional train. • They are more energy efficient, have lower maintenance costs, and require fewer staff than comparable transportation.

11. Rail Travel Abroad • In Western Europe and parts of Asia, high-speed networks are already well developed. • One famous example is the Eurostar, connecting the United Kingdom with mainland Europe via the 31-mile long underwater Channel Tunnel. France’s TGV trains (Trains a Grande Vitesse) are perhaps the most famous of them all, serving more than 150 cities in France and beyond, and traveling at about 186 mph.

12. Rail Travel Abroad cont’d • Because of their importance, all trains – high speed or not – run frequently and on time. Fares are generally very reasonable, and service levels are high. • Japan's… bullet train system (Shinkansen), makes the 550-mile run between Tokyo and Osaka in three hours and ten minutes, down from the former rail time of eighteen hours.

13. Eurail pass…Several European nations have banded together to offer visitors unlimited first-class rail service for a reduced lump sum. However, if you want to use Eurail, be sure to purchase it before you leave home as the pass is only sold outside of Europe. • Several other worldwide countries offer various discounted rates for tourists including Australia, India, Canada and China.

14. The Automobile Age: Traveling by Car • Began in 1895 in Germany. • Henry Ford’s development of the assembly line and construction of goods, and solid roads helped make the automobile the symbol of American life that it is today. • Today, it is the American way of life, especially in leisure area, creating and satisfying people’s urge to travel.

15. Traveling by Car • Largest segment of ground transportation sector of the travel and tourism industry. • Creates accessibility to mountain resorts, ski destination, remote locations • 5,000 rental companies in the U.S. • 75% of car rentals take place at airports. • The top four rental car company agencies in the United States are Hertz, Avis, National, and Budget.

16. Traveling by Bus The most important reasons for selecting the bus: • An economic mode of travel. • Convenience: bus allows travelers to relax and enjoy the ride. • Types of bus service: • Local, tour, commuter service, airport service, urban and rapid transit service.

17. Air Travel • An integral factor in travel and tourism • 4,500 planes are in the air over the U.S. any day. • Competition between airlines to provide lower fairs has had a significant impact on increased air travel • Travelers are paying less, but carriers are spending more on fuel and other costs (cutbacks and layoffs)

18. Air Travel • Airline alliances will allow them access to each other’s “feeder markets” and to resources that will enable them to flourish in what will ultimately be a worldwide deregulation. • A feeder market is a market that provides the source—in this case, passengers for the particular destination.

19. Hub-and-Spoke System • Enables passengers to travel from one smaller city to another smaller city via a hub or even two hubs • The hub-and-spoke system has two main benefits: • Airlines can service more cities at a lower cost • Airlines can maximize passenger loads from small cities, thereby saving fuel.

20. A transport hub (also transport interchange) is a place where passengers are exchanged between vehicles or between transport modes. Public transport hubs include train stations, rapid transit stations, bus stops.

21. Spoke • is one of some number of rods radiating from the center of a wheel (the hub where the axle connects), connecting the hub with the round traction surface.

22. New Airplanes • The Boeing 787 Dreamliner is able to fly up to 9,700 miles without refueling • It uses up to 20% less fuel than today’s similar-sized airplanes • The can carry up to 500 pAirbus A380 assengersfor a distance of up to 8,000 miles The new Boeing 787 Dreamliner

23. Cruise Ships • The cruise market has increased dramatically in recent years • Carnival Cruise Lines is the most financially successful—netting about 20% of sales

24. Cruise Ships • Most cruise ships sail under foreign flags because they were built abroad for the following reasons: • U.S. labor costs for ships. • U.S. ships are not permitted to operate casino-type gambling. • Many foreign shipyards are government subsidized to keep workers employed, thereby lowering construction costs.

25. Cruise Market • Mass market: Consists of people with incomes in the $35,000–$74,000 range; average cost per person is $95–$195 per day • Middle market: Consists of people with incomes in the $75,000–$99,000 range; average cost per person is $175–$350 per day • Luxury market: Consists of people with incomes higher than $100,000; average cost per person is more than $400 per day

26. Multiplier Effect • When a tourist spends money to travel, to stay in a hotel, or to eat in a restaurant, that money is recycled by those businesses to purchase more goods, thereby generating further use of the money • In addition, employees of businesses who serve tourists spend a higher proportion of their money locally on various goods and services.

27. Figure 2-3 Multiplier Effect

28. Promoters of Tourism • National Tourism Organization (NTO) • Travel Industry of America (TIA) • State tourism offices • Convention & Visitors Bureaus (CVBs) • Pacific Area Travel Association (PATA) • Tour operators • Travel agencies • Travel corporations • Travel and tour wholesalers • National Office of Tourism • Destination management companies

29. Why People Travel • Main reasons are for pleasure and business • 82% of domestic travel is for leisure/pleasure 1.pleasure travel: Most popular reasons are: • To experience new and different surroundings • To experience new cultures and see how others live • Rest and relaxation • To visit friends and family • To view or participate in a sporting event

30. Why People Travel • Some factors influencing travel: • Entertainment • Purchase opportunities • Climate for comfort • Cost • Special interests (i.e., golf, location, etc.)

31. Why People Travel 2. Business travelers travel for business purposes (i.e., meetings, sales, conventions, trade shows, and expositions) • Business travel is on a decline due to: • The economy. • Increased airfares. • Terrorism. • A reduction in travel budgets.

32. Social and Cultural Impact of Tourism • Tourism can have both positive and negative impacts on communities • World tourism organizations recognize that tourism is a means of enhancing international understanding, peace, prosperity, and universal respect for and observance of human rights and fundamental freedom for all • Provided the number of tourists is manageable and they respect the host community’s sociocultural norms and values, tourism provides an opportunity for social interactions

33. Ecotourism • Ecotourism is focused more on individual values—it is “tourism with a conscience” • Those who implement and participate in ecotourism activities should follow the following principles: • Minimize impact • Build environmental and cultural awareness and respect • Provide positive experiences for both visitors and hosts • Provide direct financial benefits for conservation • Provide financial benefits and empowerment for local people • Raise sensitivity to host countries’ political, environmental, and social climate • Support international human rights and labor agreements

34. Sustainable Tourism • Places a broad obligation on society • Sustainable tourism should: • Make optimal use of environmental resources that constitute a key element in tourism development. • Respect the sociocultural authenticity of host communities, conserve their built and living cultural heritage and traditional values, and contribute to inter-cultural understanding and tolerance. • Ensure viable, long-term economic operations.

35. Cultural, Heritage, Nature,& Volunteer Tourism • Culture andheritageare “our legacies from the past, what we live with today, and what we pass on to future generations. Our cultures and natural heritages are irreplaceable sources of life and inspiration.” • Cultural tourism: Motivated by interest in cultural events • Heritage tourism: Motivated by historic preservation • Nature tourism: Motivated by nature • Culinary tourism:Culinary adventures are at least a contributing motivation • Volunteer tourism:Motivations include opportunity to travel safely and cheaply and to experience different cultures An ecotourist admires Temple 11 (Temple of the Masks) in the Great Plaza at Tikal

36. Trends • Ecotourism, sustainable tourism, and heritage tourism will continue to grow • Tourist arrivals will continue to increase • Governments will increasingly recognize the importance of tourism • More bilateral treaties signed • The promotion and development of tourism will move more from the public sector (government) to the private sector (involved industry segments) • Technology will continue to advance • Marketing partnerships and corporate alliances will increase • Employment prospects will continue to improve • Ticketless air travel will continue to increase

37. Trends • Increased Internet bookings • Managing destinations will continue to be a challenge • Low-cost, no-frills airlines will continue to gain an increased market share • Airlines will try to entice travelers to book their trips via the airline’s website • Automatic airport check-ins will become more popular • Cruise industry will continue to expand • Increase in alternative cruises • Increased concern for the health and safety of travel and tourism • Nature, culinary, and volunteer tourism will increase

38. The End