Introduction to Tourism

Chapter 1

Tourism

According to World Tourism Organization (WTO) tourism is the world’s largest industry

Estimates of economic impact vary widely depending on the definition used to describe “tourism”

The Definition of Tourism

Umbrella concept meant to cover all fields or sectors of travel related business

The book definition… Encompasses travelers away from home/business

and people who provide a service to make travel easier or more entertaining.

Our definition… An interrelated group of businesses who serves the

needs and wants of the travelers.

Definitions change depending on where you are Knowing the definition of a region is important when

accurately assessing effects of tourism on an economy

Tourism Economics

Measures amount of travel and its economic consequences directly, indirectly and induced Methods are constantly modified to collect

travel information

Complex interactions also take place before, during and after travel, which can effect the economics Psychological - Ecological Sociological - Political

Tourism as a Business

One business made up of other large and small businesses such as… Airlines - Restaurants Cruise lines - Retail shops Rental car companies - Food stores Travel marketers - Gas stations Lodging

Government and Tourism

Government has the function of taxing, regulating and promoting tourism

Economic models, cost/benefit studies used to forecast economic impact in communities, states and regions

As the tourist dollar circulates its effect is increased and income multiplier is added Impact of the tourist dollar on taxes and

employment is estimated

Tourism Integration

Many companies involved in tourism own more than one specialized service within the industry

Ownership, cross-ownership, marketing agreements and franchising For example: Some travel agencies own

restaurants and hotels domestically and internationally

Carlson Travel Group

The Changing Definition of Tourism

Due to… Number of business, governments and

researchers involved Rapid changes taking place in the industry

Economic analysis is limited by reliability and validity of private and government research

Definition changes and variable sampling techniques can lead to errors

Magnitude of Tourism Economics

According to the US Office of Tourism and Travel Industries (OTTI) for 2010… Tourism supplied the US with 7.5 million

American jobs International visitors spent $134 billion

dollars experiencing the US

Impact of tourism varies greatly depending on the spending habits and length of stay of the visitor

Tourism Income and Impact Studies

Typically, the higher the Gross National Product (GNP) of a country, the more money tourists from that country are spending per capita

Origin of Visitor

2010

Canada 20.0 million

Mexico 13.4 million

United Kingdom 3.9 million

Japan 3.4 million

Germany 1.7 million

Top 5 International Markets to USA (Arrivals)

Data from US Travel http://www.ustravel.org/sites/default/files/page/2009/11/USTravelAnswerSheet.pdf

US Domestic Tourism Income

Every state has its own tourism impact study

Each state has its own definition of “tourism”

Every states annual economic impact study is on spending type (either business or traveler) is categorized differently

Sources drawn from local hotel occupancy tax, estimates reported in a number of visitor studies, local visitor surveys, US Dept. of Census, consumer price index, etc.

The US does not have a Department of Tourism, tourism is strictly the responsibility of each state

Tourism in Developing Countries

Tourism has become a prospect of growth in 3rd world countries

However… Attractions can be minimal Cost and distance of travel is great Safety issues due to unstable governments Hard for countries to profit due to corrupt

nature of government