Lecture# 2 History of development of business tourism

Lecture objectives Identify the emergence of tourism and travel Explore the main definitions in tourism

Do you know? What is International Tourism?

Do you know? What is International Tourism? UNWTO defines tourist as whom?

Definitions 1. International Tourism is travel for recreational, leisure, or business purposes across the borders of various countries. 2. The UNWTO defines tourists as people traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes

Defining Tourism … 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. (WTO 1993, UNSTAT 1994)

Tourism is important, and in some cases, vital for many countries Tourism is important, and in some cases, vital for many countries. It was recognized in the Manila Declaration on World Tourism of 1980 as: "an activity essential to the life of nations because of its direct effects on the social, cultural, educational, and economic sectors of national societies and on their international relations.“  

Business Tourism Business tourism is the name given to all forms of tourism that are work-related, i.e. when people are not primarily motivated by recreational pursuits but travel because of their work, especially to attend meetings, incentives, conferences and exhibitions. The abbreviation MICE (meetings, incentives, conferences, exhibitions) is sometimes used in business tourism to cover those four core market areas. Business tourism can occur domestically or internationally, at short haul or long haul ranges. According to the World Tourism Organisation, business tourism accounted for 16% or 120 million international tourist arrivals in 2004. The World Travel and Tourism Council estimated business travel spend for 2006 at $672 billion. Business tourism is particularly important for two sectors:

The message of the president of the Republic of Tajikistan to the parliament of RT “ For adjustment of mutually advantageous relations in priority branches of the country including tourism there are enough possibilities and their effective utilization at all depends on increase in direct, internal and foreign investments, and also from inculcation of modern techniques and technologies” Mr. President Emomali Rahmon.

Total volume of cross-border tourist travel In 2011, there were 983 million international tourist arrivals, with a growth of 4.6% as compared to 2010. In 2012 this rose to more than 1 billion international arrivals

Top 10 Tourism Destinations Most-visited countries by international tourist arrivals Top 10 Tourism Destinations International Tourist Arrivals (2011) In Million People 1 France 79.5 2 United States 62.3 3 China 57.6 4 Spain 56.7 5 Italy 46.1 6 Turkey 33.3 7 United Kingdom 29.2 8 Germany 28.4 9 Malaysia 25.1 10 Mexico 23.4 International Tourism Receipts (2011) In Billion Dollars 1 United States 116.3 2 Spain 59.9 3 France 53.8 4 China 48.5 5 Italy 43.0 6 Germany 38.8 7 United Kingdom 35.9 8 Australia 31.4 9 Macao 27.8 10 Hong Kong 27.2

Wealthy people have always travelled to distant parts of the world, to see great buildings, works of art, learn new languages, experience new cultures, and to taste different cuisines. Long ago, at the time of the Roman Republic, places such as Baiae were popular coastal resorts for the rich. The word tourist was used by 1772 and tourism by 1811

The origins of modern tourism can be traced back to what was known as the Grand Tour which was a traditional trip of Europe undertaken by mainly upper-class European young men of means, mainly from England. The custom flourished from about 1660 until the advent of large-scale rail transit in the 1840s, and was associated with a standard rout. It served as an educational rite of passage. Though primarily associated with the British nobility and wealthy landed gentry similar trips were made by wealthy young men

Historical Perspective Mass Tourism began in the years immediately after WWII Rising standards of living Increased leisure time Development in transportation The origins of tourism can be traced much further back Trade Religious and spiritual purposes Festivals and sport events

Tourism Today International tourism arrivals reached an all time record of 763 million in 2004 Growth over 2003 corresponds to 11% Worldwide earning on International Tourism reached in 2004 a new record value of US$ 623 Billion. International arrivals are expected to reach over 1.56 billion by the year 2020.

Different Types of Tourism Domestic tourism: Residents of a country traveling within their own country Inbound tourism: Non-residents traveling in the given country Outbound tourism: Residents traveling in another country

Purpose of Travel Leisure tourism Holidays Health and fitness Sport Religion Education Cultural Visiting friends and relatives (VFR) Business tourism Conferences and training events Business meetings Exhibitions Trade fairs

2. Impacts of Tourism

Economic Impacts Positive International level Tourism generated US$ 623 billion in earnings and contributed over 10% of global Gross Domestic Product In 2006, tourism employs 385 million people (11.1% of the world’s labor) National level Tourism contribution to GNP: Tourism dominates economic activities in many countries such as Caribbean islands. Anguilla (90% of GNP), Antigua and Barbuda (87% of GNP)

Economic Impacts Positive Regional and local levels Injecting revenue into urban and rural areas Creating employment opportunities Stimulating the creation of new business enterprises Contributing towards extra inward investment through the promotion of a positive image of an area

Economic Impacts Positive Summary Wealth generation Employment creation

Economic Impacts Negative The loss of labor from traditional, primary industries Price rises in destination areas Local shops are lost in favor of tourist outlets Displacement effect The development of infrastructure and facilities for tourism can divert resources away from other capital projects Displacement effect-Эффект смещения

Environmental Impacts Negative Water supply Physical erosion Wearing away of natural features such as river banks, mountain passes, soil and vegetation Destruction of archeological sites and historic monuments Water pollution Poorly managed sewage treatment and waste disposal processes Loss of wildlife habitats Ecological destruction due to overuse Waste disposal (Littering) Air pollution Noise pollution Overcrowding Different modes of tourism transport sewage treatment-обработка сточных вод

Environmental Impacts Positive Conservation of natural and built resources National parks Ancient monuments Improvement of general environment of a destination Amenity planting in public parks and gardens Upgraded ‘street furniture’ (lighting, public seating and litter bins) Improved signage Clearance of derelict land Renovations to buildings

Socio-cultural Impacts Negative Overcrowding Distortion of local customs Commercialized and stylized presentation Loss of native languages Loss of traditional crafts and industries Such as fishing, forestry, mining, and agriculture Fragmentation of communities Tourist areas may develop large communities of second home owners and expatriates Alterations to religious codes Rise in social problems Tourists may behave badly Temptation of tourism can lead local people into increased criminal activity including fraud, prostitution, drug abuse, and vandalism

Socio-Cultural Impacts Positive Meeting new people and learning about different cultures Contribution to conservation of an area’s cultural heritage Enhanced program of cultural and social events Formation of more sports and leisure facilities Instilling a sense of pride in local residents

Tourism – World’s Biggest Industry World’s number one export earner Tourism ……………………………………………………. 9% Crude Petroleum and Petroleum Products 7% Passengers road vehicles and their parts 5.5% Electronic Equipment ………………………………. 4% Mining ………………………………………………………. 3.5% Significant average annual percentage growth rate Tourism ……………………………. 12% Commercial Services ………. 12% Merchandise exports ………. 10% Major contributor to global economic development, creating employment, and generating wealth