Tourism in Middle America

AttendanceTourismExam 3 TuesdayQuiz 6

Tourism in Middle America

General OverviewTourism in MexicoEcotourismCruise Ship Industry

Tourism

• Tourism, broadly defined, is the world’s largest industry

• Generates 10% of the world’s GDP• World’s largest employer• Employs ~255 million people

Leakage of Tourism Revenues

in the developing world

What is leakage?~Foreign capital inputs for delelopment~Foreign tour and travel operators~Demand for imported goods and services~World bank estimates that over 50% of all tourism revenue in delveloped counties

Tourism in Mexico

•Mexico is the most popular tourist destination in Latin America (21.4 million visitors in 2006)•8th most popular worldwide•Accounts for ~ 14.2% of employment in Mexico•3 main areas

• Beach resorts• Archeological sites• Border zone

Mexican Tourism

Resort Tourism

‘Club Mex’ is much less Mexican than other parts of the country•Tourism as economic development:

• Pursued by Gov’t• Mostly in areas of

relatively limited industrial development.

• Created the necessary infrastructure

• Allow foreign investors to have access to rather remote regions

• Generally ‘all inclusive’ with limited impact on local economy

Riviera Maya

•Coastal strip in the Mexican State of Quintana Roo•Dubbed the Mayan Riviera in 1999•Stretches from Playa del Carmen in the N. to Tulum in the S.

Pacific Resort Areas: Mexican

Riviera

•Cabo San Lucas•Mazatlan•Puerto Vallarta•Acapulco•Puerto Escondido

•Different foci at each location

•Most popular tourist destinations in Mexico•Often located within a short trip of beach resorts•Major sites include

• Chichen Itzá• Teotihuacan• Tulum• Monte Alban• Palenque

Archeological Tourism

Chichen Itza•Name means “at the mouth of the well of Itza”•Prominent ~ 600-900 AD•Ruled by a council of elites as opposed to a single ruler•Decline ~1000 AD (?)•El Castillo: Temple of Kukulkan (Quetzalcoatl)•Temple of Warriors•El Caracol: observatory

Teotihuacan

•Located ~25 Miles NE of Mexico City•Named applied by Aztecs, ‘birthplace of the gods’•Earliest bldgs ~200 BC•Pyramid of the sun ~100 AD

•Generally provides a warped view of Mexico for tourists•Often associated with seedier activities

• Drugs• Prostitution

•Negative impact of recent violence•Recent trend of medical tourism

Mexico’s Border Tourism

Ecotourism

“Ecotourism is responsible travel to natural areas which conserves the environment and improves the welfare of local people.”

- The Ecotourism Society

•Soft (General) Ecotourism•Hard Ecotourism •Adventure Ecotourism•Educational Ecotourism

Ecotourism as a market segment

C u ltu ra l to u rism R u ra l to u rism

E co tou rism A d ven ture tou rism

N a tu re to u rism S u n-a nd -b ea chto u rism

B u s in e ss T ra ve l F itn e ss -w e lln e ssa nd he a lth

to u rism

T o u rism M a rke t

Source: World Tourism Organization 2001

WWF claims that 20% of revenue generated from tourism in developing countries is due to ecotourism.

Ideally Ecotourism:• Provides valuable

financing for parks and conservation efforts

• Serves as economic justification for the preservation of nature parks and wildlife

• Reduces exploitation of conservation areas by supplying local peoples with viable economic alternatives

• Promotes environmental awareness and conservation

Objectives of Ecotourism

Negative Environmental

Impacts

•Disruption of habitat by infrastructure and tourists•Cabo Blanco Reserve: 1963 Costa Rica’s 1st National Park

• Howler monkey population down 40%

• White-faced monkey down 27%

Negative Socio-economic impacts

•Disruption of local cultures/values•Exploitation of local labor•Increased cost of local goods and services•Limits on other economic activities•Vulnerability to global market fluctuations

•Ecotourism boom began in late 1980s•By 2000 generating over $1 billion annually•Costa Rica has 5% of the world’s biodiversity with only 0.03% of the land!!•Highest percentage of protected areas in the world (26-28%)•Sharing the wealth: most ecotourism enterprises are small and locally owned – 70% of all hotels in Costa Rica have < 20 rooms•http://www.youtube.com/watch?v=MeynzQz4SXk

Ecotourism in Costa Rica

The Main Sources of Travelers to Costa Rica

Percentage of Total Number of

Tourists1. US 48.7%

2. Canada 5.3%

3. Colombia 4.8%

4. Mexico 4.1%

5. Spain 3.2%

6. Germany 2.9%

(American Embassy, San José, 2001)  

Breakdown of Revenues

Costa Rican Agents•Hotel 10%•Transportation 8%•Meals 7%•Guides 4%•Entrance Fees 4%•Other 5%

________38%

International Agents•Airline 33%•Tour Operator 23%•Other6%

________62%

Cruise Ship Industry

• Industry began in the 1960s with excursions for the rich

• Grown to include the general population• 3 major corporations make up two thirds of the

cruise ship industry• Royal Caribbean Cruises Ltd.• Carnival Corporation• P&O Princess Cruises plc.

• Each ship can carry upwards of 2,500 passengers• Ships are like floating cities that provide for all

the consumptive and entertainment needs of their passengers

Oasis of the Seas

•World’s largest cruise ship•Built in Finland•Launched Oct. 30, 2009•Owned by Royal Caribbean•Cost $1.6 billion•20 stories high•Can accommodate 6300 passengers

•http://www.youtube.com/watch?v=AAwUtFSh24Q

Flags of Convenience

•Many cruise ships operate under flags of convenience•Allows ship operator to avoid some taxes and regulations

Common Sources•Bahamas•Antigua•Liberia•Panama•St. Vincent

Caribbean Cruising

•The Caribbean is the only cruising area that is active year-round.•Caribbean cruise industry is divided into East, West, and South

Western Caribbean

•45.8% of passengers•Includes: Cayman Islands, Dominican Republic, Haiti, Martinique•Amenities: snorkeling, diving, cultural/historical sites

Eastern Caribbean

•38.3% of passengers•Includes: Bahamas, Virgin Islands, Puerto Rico, St. Maarten, St. Kitts•More developed ports•Amenities: snorkeling, fishing, shopping

Southern Caribbean

•15.9% of passengers•Includes: Aruba, Bonaire, Curacao, Grenada•less developed ports•Amenities: snorkeling, diving, nature tourism

Top 10 Cruise Destinations 2007

Destination Percentage of IndustryCaribbean 40.69% (*48.1%)Mediterranean 12.6%Alaska 8.3%Mexico (West Coast) 7.45%Europe 7.14%*Bahamas 5.69%Hawaii 3.76%Trans Canal 3.52%South America 1.83%*Bermuda 1.72%

Economic Impact in the Caribbean (2007 data)

• Estimated 12.6 million Passengers in 2007• Total annual economic impact of

over $2.6 billion (1.4 direct, 1.2 indirect)• 60,136 jobs throughout the Caribbean• $600 million in wage income• Average cruise passenger spending per port of

call ~ $103.88 • The typical cruise ship carrying 2,000

passengers and 900 crew members generates nearly $300,000 in passenger and crew expenditures during a single port-of call visit!

Ports of Call

Passengers disembark for a short period of timeExcessive crowding of port areas during busiest months

Top Ports of Call•Bahamas 1.8 million•V. Islands 1.2 million•St. Maarten 718K•Puerto Rico 680K•Cayman Is. 599K•Jamaica 595K