Global Tourism

Fluctuations in the Global Tourism Industry

International Tourist Arrivals

International Tourist Arrivals 0

2

4

6

8

10

12

14

9.8mil 10.3 mil 10.1 mil 9.7 mil

11.6 mil13.1 mil

2006 2007 2008 2009 2010 2011

Source: STB, 2011

Based on the figure, has tourism increased constantly over the years?

You should be able to: 1. Explain why tourism is subject to

regional fluctuations using authentic examples

By the end of this lesson

Do you know what this event is?

The aftermath of the 2011 Tohoku Tsunami

Is Japan trying to promote the increase of demand or destination factors by offering free flights to save the tourism industry?

Can you think of any other events that will affect demand

or destination factors?

Hong Kong (2003) SARS Epidemic299 Dead Widespread Hysteria

Hong Kong (2003) SARS Epidemic• Tourist arrivals fell 63% (850,000) from

March to April 2003• Outbound bookings for the Easter

holiday period fell by 80%.

Iceland (2010) Eyjafjallajökull eruptionHalted air travel in Europe and Trans-Atlantic for a weekAffected tourism during the Easter holiday

Iceland (2010) Eyjafjallajökull eruption• 107,000 flights cancelled during 8 day

period- 48% of total air traffic (10 million passengers)

• Airlines collectively losing £130m per day in lost revenues

• Tourism industry will lose money from tourists unable to make the trip

Global Financial Crisis(2007-2008)• Caused by the bubble burst in the

property market of the US• Banks and financial institutions declared

bankrupt due to massive debts

Global Financial Crisis(2007-2008)• Consumer spending lowered due to rising

unemployment (5.4 million jobs lost in USA in 2008)

• Assets have lowered due to the collapse of the stock and property markets

• There is less disposable income that can be used to finance holidays

International Tourist Arrivals

International Tourist Arrivals 0

2

4

6

8

10

12

14

9.8mil 10.3 mil 10.1 mil 9.7 mil

11.6 mil13.1 mil

2006 2007 2008 2009 2010 2011

Source: STB, 2011

Tourist arrivals in 2008/2009 could be the consequence of the financial crisis

Thailand (2008) Political CrisisBegan with coup d'état in 2006 which ousted then PM Thaksin Shinawatra

Two factions: United Front for Democracy Against Dictatorship (Pro-Thaksin) and People's Alliance for Democracy (Anti-Thaksin)

Thailand (2008) Political CrisisSeries of political incidents which have affected tourism:

30 August -PAD Supporters laid siege to airports in Phuket, Krabi and Hatyai (15,000 visitors trapped)

2 September- Violent clashes leaving 1 dead and 43 injured, state of emergency is declared in Bangkok until 14 September.

Thailand (2008) Political Crisis

6 October- Violent clashes day-long leave 2 dead and over 300 injured, including 20 policemen

25 November- PAD blocks Suvarnabhumi International Airports, leaving thousands of tourists stranded and cutting off most of Thailand's international air connections. Several explosions and clashes occur in the following day.

Thailand (2008) Political Crisis

Factors affecting tourism are constantly changing due to these

unforeseen events!

Learning Points • The tourism industry is not stable and

regional/international events may affect its growth

• Tourism is fuelled by a combination of demand and destination factors, that fluctuates across space, time and scale