©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker CHAPTERCHAPTER CHAPTERCHAPTER 2 Tourism

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Current Characteristics Characteristics… –Year-round economic driver –10.6% of world GDP makes it world’s largest industry –7.8% of global workforce –Support the creation of over 5.5 million jobs per year over next decade

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Current Characteristics Characteristics (cont.)… –Leading producer of tax revenue –8% of all jobs worldwide will depend on the industry

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Tourism Defined Tourism… –Comprises activities of people traveling to and staying in places outside their usual environment

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Tourism Defined Tourism (cont.)… –Not more than one consecutive year for leisure, business, and other purposes

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Definitions Tourist… –A person who stays for more than one night and less than one year

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Definitions Visitor… –A person who visits a country other than where they reside for not more than one year Excursionist… –A person who travels to a site and returns the same day

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Can You Use These Categories to Define Tourism? Tourism… –Geography –Ownership –Function –Industry –Motive

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker First Age of Tourism Pre-Industrial Revolution… –Phoenicians were first travelers –Trade was motivation –Romans also traveled –Most medieval travel was of a religious nature

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Second Age of Tourism Railway age… –First railroad in U.S. built in 1830 –By 1869 transcontinental travel

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Second Age of Tourism Railway age (cont.)… –AMTRACK created in 1971 –Rail travel is big in Europe and Asia

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Third Age of Tourism Automobile Travel… –Production of automobiles began in 1891 –Almost 200 million automobiles are registered today

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Fourth Age of Tourism Air Travel… –In 1903 the Wright brothers made their first flight –The first U.S. scheduled air service was in 1915

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Six Freedoms of Air Travel Air Travel (cont.)… 1.Right to fly across another nation’s territory 2.Right to land in another country 3.Right to disembark passengers and cargo 4.Right to pick up passengers and cargo 5.Right to transport passengers and cargo 6.Right to carry traffic from a foreign country to the home nation and beyond

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Airline Deregulation Air Travel (cont.)… –Change occurred in 1978 –Purpose is to allow a free market of competition (fare structures) –Change in companies and the way airlines are doing business

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Fifth Age of Tourism Cruise Ships… –A floating resort –Has increased 800% from 1970 to 2000 –Most cruise ships sail under foreign flags

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Fifth Age of Tourism Cruise Ships (cont.)… –Approximately 7 million Americans could/will be cruising each year

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker International Organizations International Organizations… –WTO - World Tourism Organization –IATA - International Air Transportation Association –ICAO - International Civil Aviation Organization

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker International Organizations International Organizations (cont.)… –WB - World Bank –OECD - Organization for Economic Cooperation and Development –PATA - Pacific Asia Travel Association

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Domestic Organizations Domestic Organizations… –USTTA - United States Travel and Tourism Administration (defunct) –TIA - Travel Industry of America

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker State Offices of Tourism State Offices… –PTC - Pennsylvania Travel Council –“Virginia Is for Lover’s” –“Ski Utah”

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker City Offices of Tourism City Offices… –CVB - Convention and Visitors Bureaus –Philadelphia CVB –Valley Forge CVB

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Economic Impact of Tourism Economic Impact… –WTTC - World Travel and Tourism Council –Tourism is growing twice as fast as world GNP –Look up the current statistics on tourism –

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Multiplier Effect Multiplier Effect… –New money spent by tourists is then re-spent by hotels and restaurants in the community for goods and services =

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Leakage Leakage occurs… –When money must be spent outside the community for goods unavailable within the community Caribbean Islands… –Where do they get their milk, cheese, eggs, and meat?

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Promoters Travel Agencies Travel Agencies… –Serve as a middle person –Agents use computer systems –Make money based on commissions –What does the future hold for promoters?

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Corporate Travel Managers Corporate Managers… –Work within a large corporation –Can still work with travel agencies –Can also be the “meeting planner”

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Travel and Tourism Wholesalers Wholesalers… –Consolidates services Airlines Other transportation carriers Ground service suppliers –Tours –Sold to the public

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker National Offices of Tourism National Offices… –U.S. now has an NTO Private organization –Examples of other NTO’s Canada Germany Australia

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Destination Management Companies (DMCs) DMC… –Service organizations –Meets the needs of their clients –They sell destinations –Meeting planners –Incentive companies

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Most Common Reasons for Travel Travel… –Business 20% –Leisure travel 70% –Other 10%

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Why People Travel Business Activities Business… –Elastic –Non-seasonal –Conventions –SMERF

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Why People Travel Leisure Time Leisure… –Experience new surroundings –Different cultures –Rest and relax –Visit friends and family –Sporting/recreation activities

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Why Will Leisure Travel Increase Leisure (cont.)… –Longer life span –Flexible working hours –Early retirement –Greater ease of travel –Shorter, more frequent trips

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Social and Cultural Impact Impact… –Tourism pollution –Cultural awareness –Higher levels of employment

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Eco-Tourism Eco-Tourism… –Buzzword –Seeks to minimize the impact of tourism –Natural environment and native cultures

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Current Trends in Tourism Trends… –Tourism will continue to rise by about 8% annually –Increased governmental recognition –More bilateral treaties –Shift from public to private sector

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Current Trends in Tourism Trends (cont.)… –Increased internet bookings –Increased technology is a certainty –Ticket-less travel will increase –Increased corporate alliances/acquisitions