The relative importance of tourism. Global Tourism Tourism accounts for 9% of global GDP (includes indirect) 1 in 11 jobs rely on tourism 1.1 billion.

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Presentation transcript:

The relative importance of tourism

Global Tourism Tourism accounts for 9% of global GDP (includes indirect) 1 in 11 jobs rely on tourism 1.1 billion international tourists per year 6 billion domestic tourists per year 1.8 international tourists per year by 2030 (3.3% PA increase)

Established E.g Benidorm

Emerging Tiwa Ecostourist resort, Manaus (Brazil)

The emerging markets are growing faster than established ones. 4.4% increase per annum versus 2.2%. Why is this? YearEstablishedEmerging %30% %47% %57%

Established markets have already exhausted potential markets People are looking for something new/different LDC have/are investing in tourism as they begin to see their natural resources (weather, beaches etc) as a valuable resource Competition continues to lower the cost of flights to exotic locations Media has made people more aware of exotic locations LDC now have better infrastructure/hotels etc. No longer a gamble or a compromise for comfort

Up or down in 2013? Asia Pacific Africa Europe Americas Middle East Asia Pacific +6% Africa +5% Europe +5% Americas +3% Middle East 0%

Market Share Most tourists visit destinations within their own region Europe 52% Asia Pacific 23% Americas 16% Middle East 3% Africa 3%

2012 – Most International Visitors Number of arrivals France 83,013,000 United States 66,969,000 China 57,725,000 Spain 57,701,000 Italy 46,360,000 Turkey 35,698,000 Germany 30,411,000 United Kingdom 29,282,000 Russian Federation 28,177,000 Malaysia 25,033,000 Compare this data to that on p298 What differences exist? How might these be explained? FULL LIST

2012 – Tourist Incomes (Money made from international tourism) United States $200,092,000,000 France $63,530,000,000 Spain $63,198,000,000 China $54,937,000,000 Germany $51,581,000,000 United Kingdom $45,966,000,000 Macao SAR, China $44,455,000,000 Italy $43,036,000,000 Hong Kong SAR, China $38,021,000,000 Thailand $37,740,000,000

Why are these two tables different? Some countries make more per visit than others. For example, the average tourist to Belize spends $324 per visit. This is due to the number of fairly short trips and the number of budget travellers (youth hostels etc) The British Virgin Islands = $2117. Visited by the most wealthy

UK £127BN (£40BN from overseas visitors) 31,000,000 visitors 3.5% of GDP (9.9% including indirect) 5.5% of all jobs (direct only) 10% including indirect) Maldives £344 Million (99.9% from overseas visitors) 230,000 visitors (10% more than 2013) 48% of GDP (2 nd highest in the world) (Up to 78% of GDP relies on tourism) 44% of all jobs (direct only) (Most reliant in the world)

Others who reply heavily on tourism Macau Bahamas Vanuatu Cape Verde

Why is this important? Income from foreigners is good for a countries balance sheet (imports vs exports) Provides jobs in countries that may have little other opportunity Governments tax visitors to improve facilities and infrastructure Local farmers etc can also benefit from tourism Opportunities for entrepreneurs

Risk? By relying massively on tourism as an income, there is a risk of over-reliance What happened in 2001 in the UK?

Foot and Mouth 2001 Visit numbers plummeted Because the UK does not over-rely on tourism, it was able to cope with this loss of income (has a diverse economy) However, some areas are more reliant than others. Cornwall and Devon were hit badly

Risks What risks might exist to the heavily reliant tourist industry in places such as Thailand, Caribbean, Maldives etc

Price of oil (Flights too expensive) Air travel disasters (Malaysian tourism down) Health scares (Ebola, SARS) Terrorism e.g. Sept 11 (Middle East suffering) High profile crimes (Murders on Antigua) Global Warming (Sea Level Rise) Fashions/Better alternatives Political Instability War Recession

Dubai Plan to double tourism Aims for 20m visitors by 2020 Aim to triple revenues by 2020

H/W Read the case study of Dubai p299 Write a paragraph to show why tourism has grown so quickly Write a paragraph to explain why it may be foolish to over-rely on tourism