Hospitality and Tourism* Read articles and answer the questions. 250 words
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C h a p t e r 9
tourism
L E A r N i N G o B J E C T i V E S
after reading and studying this chapter, you should be able to:
• Summarize the historical impact of transportation on tourism.
• Define tourism and describe the important international tourism organizations.
• Describe the benefits and prospects of tourism.
• Describe the economic impact of tourism.
• Identify the promoters of tourism.
• Summarize the sociocultural impact of tourism.
• Describe ecotourism.
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highlights of tourism It is difficult to determine when tourism began because, centuries ago, very few people traveled for pleasure or business as they do today. We can trace some travel destinations since ancient times as follows:
• In the fourth century b.c. (before Christ), work started on the Great Wall of China and continued for centuries until the 1600s. although not a tourist destination (or attraction) back then, it certainly is today.
• In 776 b.c., athletic games were held on the plain of Olympia in Greece (the modern Olympic Games were inspired by these games), and pre- sumably people traveled there to participate or to watch.
• the romans liked to visit the Bay of Naples, so they built a road there from rome in 312 a.D. (anno Domini, after Christ). the road was 100 miles long and took four days by litter to get there (in which a nobleperson sat on a platform and was carried by some unfortunate servants).
• religious pilgrimages to rome and the holy Land (now Israel) began in the 1200s, so inns sprang up to feed and accommodate the pilgrims.
• Marco polo became the first noted european business traveler as he pio- neered trade routes from europe to China from 1275 to 1292, staying at primitive inns called khans along the way.
• In the 1600s, during the age of horse-drawn coach travel in england, posthouses were set up to feed and shelter travelers and change the teams of horses every few miles. the journey from London to Bristol took three days—it now takes less than two hours by rail.
• In 1841, thomas Cook organized a group tour for 570 people to a reli- gious meeting in england.
• Cruising began in the 1840s with the Cunard Line crossing the atlantic between england and North america.
• In the 1840s, the peninsular and Oriental Steam Navigation Company (p&O) cruised the Mediterranean.
• In the 1850s, Monaco (a principality in the south of France) decided to cure its economic woes by becoming a winter haven for the rich as a health resort and a casino.
• During the age of the grand tour, from the 1880s through the 1930s, wealthy europeans toured europe as a part of their education.
• rail travel began in the 1800s. • auto and air travel began in the 1900s. • american airlines introduced its first transcontinental flight between
New York and Los angeles in 1959.
• In 1970, the Boeing 747 began flying 450 passengers at a time across the atlantic and pacific Oceans.
• In the 1970s, ecotourism and sustainable tourism became important topics.
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• In the 1980s, cruising became popular. • In 1986, the United States established the Visa Waiver program to
eliminate unnecessary barriers to travel to the United States. Currently, 38 countries are part of the program.
• In the 2000s, international tourism temporarily declined as a result of the September 11 attacks, severe acute respiratory syndrome (SarS), bird flu, and war. however, tourism is projected to grow at a rate of between 3.0 and 3.5 percent a year, according to the World travel & tourism Council.1
• In 2008, there were over 922 million international tourist arrivals, but as a result of the 2007–2010 recession, tourism was down 4 percent in 2009. however, it was expected to and did rise since then.2
• International tourism arrivals grew by almost 5 percent in the first half of 2011, consolidating the nearly 7-percent growth rate from 2010.3
• China’s expenditure on travel abroad reached US $102 billion in 2012, making it the first tourism source market in the world.
• In 2012, international tourism produced $1.3 trillion in export earnings for the United States, while international tourist arrivals increased by 4 percent. this number is expected to increase an additional 4.3 percent in 2014.4
transportation: Its historical Impact on tourism the historical development of tourism has been divided into five distinct ages (or periods),5 four of which paralleled the advent of a new means of transportation:
pre–Industrial revolution (prior to 1840)
the railway age
the automobile age
the jet aircraft age
the cruise ship age
Pre–industrial revolution as early as 5,000 years ago, some ancient egyptians sailed up and down the Nile river to construct and visit the pyramids. probably the first journey ever made for the purposes of peace and tourism was made by Queen hatshepsut to the Land of punt (believed to be on the east coast of africa) in 1480 b.c. Descriptions of this tour have been recorded on the walls of the temple of Deir el-Bahari at Luxor.6 these texts and bas-reliefs are among the world’s
LearNING OBjeCtIVe 1 Summarize the historical impact of transportation on tourism.
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rarest artworks and are universally admired for their wondrous beauty and artistic qualities. the Colossi of Memnon at thebes have on their pedestals the names of Greek tourists of the fifth century b.c.7 the phoenicians were among the early travelers. they traveled in both the Mediterranean and the Orient (now called Southeast asia), and travel was motivated by trade. Later, the roman empire provided safe passage for travelers via a vast road system that stretched from egypt to Britain. Wealthy romans traveled to egypt and Greece to baths, shrines, and seaside resorts.8 the romans were as curious as are today’s tourists. they visited the attractions of their time, trekking to Greek temples and places where alexander the Great slept, Socrates lived, ajax committed suicide, and achilles was buried, and to the pyramids, the Sphinx, and the Valley of the Kings—just as today’s tourists do.9 the exca- vated ruins of the roman town pompeii, which was buried by the volcanic eruption of Mount Vesuvius, revealed some 20-plus restaurants, taverns, and inns that tourists visit even today.
the earliest Olympic Games for which we still have written records were held in 776 b.c. (though it is generally believed that the games had been going on for many years before that).10 thus, sports have been a motivation
for tourism for a long time. travel via land and sea in the Middle ages was
mostly for religious or trade reasons. people made pilgrimages to various shrines: Muslims to Mecca and Christians to jerusalem and rome. the Crusades (which began in 1095 and lasted for the next 200 years) stimulated a cultural exchange that was in part responsible for the renaissance.
Marco polo (1254–1324) traveled the Silk road, which was anything but a road, as we know it, from Venice to Beijing, China. he was the first european to journey all the way across asia to Beijing, and his journey, which lasted 24 years, and the tales from it became the most well known travelogue in the Western world.11
Marco polo’s father and uncle had traveled exten- sively in asia before Marco joined them. the journey was both difficult and dangerous (excerpts of Marco’s account can be read at several Marco polo web sites). One time, to make sure the polo brothers would be given every assistance on their travels, Kublai Khan presented them with a golden tablet (or paiza, in Chinese; gerege, in Mongolian) a foot long and three inches wide and inscribed with the words “By the strength of the eternal heaven, holy be the Khan’s name. Let him that pays him not reverence be killed.” the golden tablet was a special VIp passport, autho- rizing the travelers to receive throughout the Great Khan’s dominions such horses, lodging, food, and guides, as they required.12 this was an early form of passport.
The Hall of Supreme Harmony in Beijing’s Forbidden City.
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Coach, rail, and automobile travel Changes in the technology of travel have had widespread implications for society. In the United States, travel was principally by horse and wagon or stagecoach until the advent of rail travel, which greatly advanced opening up the West. along with the growth of towns and cities, came hotels near rail depots to accommodate travelers. Likewise, auto travel produced the motel and a network of highways, and the commercial jet created destination resorts in formerly remote and exotic locations, made the rental car business a necessity, and changed the way we look at geography. although long- distance travel has always been fairly comfortable for the wealthy, it was not until the development of the railroad in the 1830s that travel became com- fortable and cheap enough to be within reach of the masses.
traveling by train Coast to coast, the United States has a lot of land with a fair share of moun- tains, canyons, forests, deserts, rivers, and other natural barriers to travel. One of the main factors that led to the development of railroads in the United States was the need to move goods and people from one region of the country to another. Farmed goods needed to be transported to indus- trial areas, and people wanted a quicker route to the West, especially after the discovery of gold in California. those who already lived at the frontier wanted the same conveniences as their neighbors in the east, such as effi- cient postal service.
the train made mass travel possible for everyone. Long-distance travel became both cheaper and faster, making the horse and ship seem like over- priced snails. the vast rail networks across North america, asia, australia, and europe made the train station a central part of nearly every commu- nity. Naturally, entrepreneurs soon built hotels conveniently close to train stations.
although hugely important and popular for many years, the popularity of rail travel started to decline as early as the 1920s. Why did people stop using the train? For two main reasons: the bus and the car. In addition, the Great Depression of the 1930s certainly deterred travelers. although World War II brought a new surge in passenger numbers, people were seldom traveling for pleasure, and at the close of the war, the decline con- tinued. automobiles were again available, and people had the money to buy them. By 1960, airplanes, which made faster travel possible, had taken over much of the long-distance travel market, further reducing the impor- tance of the train.
Facing a possible collapse of passenger rail services, the U.S. Congress passed the rail passenger Service act in 1970 (amended in 2001). Shortly after, the National railroad passenger Corporation began operation as a semipublic corporation established to operate intercity passenger trains, a move in the direction of seminationalization of U.S. railroads. the corpora- tion is known today as amtrak.
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rail travel abroad While the United States tries to rejuvenate rail travel under the direction of amtrak, rail ser- vice in other parts of the indus- trialized world is far ahead in progress. taking the train makes good sense in densely populated areas such as those in Western europe and parts of asia, and high-speed net- works are already well devel- oped, often drawing most of the traffic that formerly went by air. One good example is the eurostar, connecting the United Kingdom with mainland europe via the 31-mile-long underwater Channel tunnel. France’s tGV (train à Grande Vitesse) trains are perhaps the best known of them all, serving more than 150
cities in France and europe, and traveling at about 201 mph (although they have the capacity of running at 250 mph). the tGV’s most spectacular fea- ture is the smoothness of the ride: It is like sitting in your armchair at home. Because of their importance, all trains—high speed or not—run frequently and on time. Fares are generally reasonable, and service levels are high.
japan’s Shinkansen, the bullet train system, makes the 550-mile run between tokyo and Osaka in 3 hours and 10 minutes, down from the former rail time of 18 hours. In addition, it provides a ride so smooth that a pas- senger can rest a coffee cup on the windowsill and not a drop will spill, just like on the tGV.
Do you dream of exploring europe? as a student, you have probably heard of the famous eurail pass. Several european nations have banded together to offer non-european visitors unlimited first-class rail service for a reduced lump sum. however, if you want to use the eurail pass, be sure to purchase a pass before you leave home because not all types of passes are available in europe and the ones that are cost on average 20 percent more when bought in europe. When visiting europe, you can choose to travel in one country, in a few selected ones, or in all with eurail pass; it’s up to you to choose between the different passes available. In other parts of the world, australia offers the austrail pass, India the Indrail pass, and Canada the Canrailpass. the new rail line in China linking Beijing to Nepal is of interest because it is one of the longest and highest rail lines in the world, and, according to some, it is going to dilute the tibetan culture. this is one of the dilemmas of tourism: travel and tourism can bring an economic and social development; yet it can also damage local cultures and environments.
An Amtrak train at its station.
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traveling by car the internal combustion engine auto- mobile was invented in Germany, but it quickly became america’s obsession. In 1895, there were about 300 horseless carriages of one kind or another in the United States, including gasoline buggies, electric cars, and steam cars. In 1914, henry Ford began making the Model t on the first modern assembly line, making the car available to many more americans because of its low cost. even during the Great Depression, almost two-thirds of american families had automobiles. henry Ford’s development of the assem- bly line and the gradual construction of good, solid roads helped make the auto- mobile the symbol of american life that it is today.
the auto changed the american way of life, especially in the leisure area, creating and satisfying people’s urge to travel. the automobile remains the most convenient and rapid form of transportation for short and medium distances. Without question, it has made americans the most mobile peo- ple in history and has given them options not otherwise possible. Whereas many europeans ride their bikes or use the bus or train to get to school or work, americans cannot seem to function without their cars. In fact, it is not uncommon for an american to drive 20,000 miles a year.
road trips are a must for most americans—college students, families, and retirees alike. travel by car is by far the largest of all segments in the ground transportation sector of the travel and tourism industry. It is no won- der, then, that the highways and byways of the United States and Canada play such important roles in tourism. the advantages of car travel are that a car can take you to places that are otherwise inaccessible. Mountain resorts, ski destinations, dude ranches, and remote beaches are just a few examples. this kind of travel generates millions of dollars, and in certain places the local economy depends on the car tourist.
rental cars Some 5,000 rental car companies operate in the United States. Waiting at nearly every sizable airport in the world are several highly competitive rental car agencies, a significant segment of the travel/tourism business. about 75 percent of their sales take place at airport counters that are leased from the airport, the cost of which is passed on to the customer. the larger compa- nies do 50 percent or more of their business with large corporate accounts, accounts that receive sizable discounts under contract. the hurried business traveler is likely to rent a car, speed out of the airport, do his or her business
Rental cars offer business and leisure travelers the convenience of fly–drive or drive-only to facilitate tourists’ needs.
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in a day or two, return to the airport, and hop on a plane to return home. the pleasure traveler, however, is more likely to rent a small car for a week or more. this group constitutes about 30 percent of the rental car market. Some of the top rental car companies in the United States are hertz, avis, enterprise, National, and Budget. the agencies maintain between 300,000 and 900,000 rental cars that are usually new and are sold after six months to reduce maintenance costs and help avoid breakdowns.
traveling by bus although scheduled bus routes aren’t as competitive as scheduled service for airlines, buses still play an important role in the travel and tourism industry, especially with regard to charter and tour services. Some bus companies even offer services such as destination management, incentive programs, and planning of meetings, events, and conferences. Some companies to check out are Gray Line Worldwide, Contiki tours, and Canadian tours International.
the major reasons for selecting the bus over other modes of travel are convenience and economy. Many passengers are adventurous college stu- dents from the United States and abroad or senior citizens, both with lim- ited funds but plenty of time on their hands. Most people don’t choose bus travel for long trips, however, because a flight is much quicker and often just as economical. however, in places such as the heavily populated north- east corridor, regular bus service between most sizable communities in New england and New York often makes it easier and safer for travelers to ride the bus than to drive their cars into the city. anyone who has experienced New York City traffic will probably agree.
another reason why buses are popular is because they allow the leisure traveler to sit back, relax, and enjoy the scenery. In addition, they are hassle free and provide an opportunity to make new friends and stop along the way. Long-distance buses offer a variety of amenities similar to an airplane, with an extra benefit of almost door-to-door service! Buses travel to small and large communities, bringing with them tourist dollars and thus a boost to the local economy.
types of bus service In addition to routes between towns and cities, bus travel includes local route service, charter service, tour service, special services, commuter service, air- port service, and urban and rapid transit service. the largest and most recog- nized of all of the specialized travel services is Gray Line. Founded in 1910, Gray Line is a franchise operation based in Colorado. the company assem- bles package tours and customized tours, arranges rail and air transfers, and even provides meeting and convention services. Its major service, however, is sightseeing trips by bus. When a traveler arrives at a destination and wishes to see the town and the major tourist attractions, Gray Line is usually ready to serve. the 150-member organization carries about 28 million passengers a year at more than 200 destinations. their trips are widely diversified, such as “around-the-town” in paris and “around-the-country” in thailand. In the
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United States, Gray Line’s biggest market is Los angeles, followed by San Francisco and then Manhattan.
▶ check Your Knowledge
1. In what locations does rail travel make the most sense?
2. What is the future of rail travel?
3. Who are the major users of buses?
travel by air and Sea air travel has made it possible to build great resorts on remote islands, it has fostered multinational enterprises, and it has broadened the horizons of hundreds of millions of people. Without the airplane, most resort destina- tions would have been virtually impossible to build. the number of interna- tional travelers would be far fewer because of the time, money, and difficulty involved in travel. the airplane makes travel easier and more convenient because even the most remote location is just a few hours away by plane, and reasonable airfares make it possible for more people to travel by air.
air transport has become an integral factor in the travel and tourism industry. hotels, car rental agencies, and even cruise lines depend heavily on airplanes for profits. For instance, lower airfares result in more passengers and hence a higher occupancy at hotels. Whole towns and cities can and do benefit from this concept by receiving more taxes from tourists, which leads to better public facilities, better schools, and even lower local and property taxes.
In the United States, there are, at any one time, about 5,500 airplanes in the skies.13 In recent years, the airline has become the preferred means of travel for the long haul. the jet aircraft has made previously inaccessible places such as Bali, Boracay, and Bangkok easily accessible, for a reason- able price. today millions of americans travel within the United States and abroad, and millions more visit the United States because of air travel.
Over the past few years—with the exception of Southwest, airtran, and jetBlue—major U.S. airlines have lost billions of dollars. One reason is com- petition from low-cost domestic and international airlines.
Since the economic recession, business travelers continue to spend less, and airlines’ pension, fuel, and security costs have risen. the major airlines have laid off employees, delayed delivery of new jets, and closed some hubs, reservations, and maintenance centers in an effort to reduce costs. Several of the major U.S. airlines have been and are in financial trouble, so they are charging an additional fuel surcharge on tickets and charging for checked bags, food, beverages, and selected seats just so that they can stay in the air.
For example, in efforts to promote passenger loyalty and operating effectiveness, the major U.S. airlines have formed strategic alliances with
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partner airlines to provide passengers with easier ticket purchases and transportation to destinations in countries not served by U.S. airlines. Many of the world’s major air- lines are grouped with Star alliance, Skyteam, or one- world. the Skyteam alliance network includes Delta from the United States, aeroflot from russia, aeroMexico, air europa, air France, alitalia from Italy, China airlines, China Southern, KLM from the Netherlands, Korean air, and others. alliances of this nature will allow airlines access to each other’s feeder markets and to resources that will enable them to compete in what will ultimately be a worldwide deregulation. a feeder market is a market that provides the source—in this
case, passengers for the particular destination. Ultimately, any major european airline without a strategic alliance in the United States will only limit its own horizons and lose market share. airlines have merged or taken over others to increase their scope of operations and reduce costs in an effort to stay com- petitive. Delta acquired Northwest airlines and Continental was acquired by United.
another example is Southwest airlines. Southwest operates more effi- ciently than the competition does despite the fact that its workforce is union- ized. Southwest gets more flight time from its pilots than does american airlines—672 hours a year versus 371—and racks up 60 percent more pas- senger miles per flight attendant. these efficiencies have resulted in annual profits for 30 consecutive years as a result of Southwest’s dedication to a low-cost, high-customer-satisfaction strategy.
Carriers such as Southwest, airtran, and jetBlue have lower operating costs because they use only one type of aircraft, fly point to point, and offer a no-frills service. their lower fares have forced many larger airlines to retreat. In 2012, the industry’s fuel bill had risen to 33 percent of operating costs—a huge factor to consider when airlines decide to put older, less fuel- efficient aircrafts into storage.
to reduce losses brought about by deregulation and high labor, pension plan, and fuel costs, major carriers have eliminated unprofitable routes, often those serving smaller cities. New airlines began operating shuttle services between the smaller cities and the nearest larger or hub city. this created the hub-and-spoke system (see Figure 9–1).
American Airlines and its 15 oneworld® alliance partner airlines go just about anywhere. The oneworld partners include British Airways, Cathay Pacific, and Japan Airlines.
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the Hub-and-spoke system to remain efficient and cost effective, major U.S. airlines have adopted a hub- and-spoke system, which enables passengers to travel from one smaller city to another smaller city via a hub or even two hubs. Similarly, passengers may originate their travel from a small city and use the hub to reach connecting flights to destinations throughout the world.
the hub-and-spoke system has two main benefits: (1) airlines can ser- vice more cities at a lower cost and (2) airlines can maximize passenger loads from small cities, thereby saving fuel. the airlines have also used deregula- tion to their advantage to save money whenever possible, for instance, by cutting nonprofitable routes from some smaller cities.
new airplanes B o e i n g ’s f i r s t n ew a i r p l a n e model in several years, the 787 Dreamliner, takes advantage of huge advances made in aviation technology in the past decade and is capable of flying long-haul routes using up to 20 percent less fuel than today’s similar-sized air- planes. Up to 50 percent of the primary structure of the plane, including the fuselage and wing, is made of components such as carbon fiber, which reduces the weight of the plane.14
able to fly up to 9,400 miles without refueling, the Boeing 787 Dreamliner could easily manage
Wichita Falls
Lubbock
College Station/Bryan Waco
Tyler
Huntsville, AL
Knoxville
Nashville
Dallas
Figure 9–1 • The Hub-and-Spoke System.
The Boeing 787 Dreamliner is able to fly up to 9,400 miles without refueling.
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a flight between New York and Moscow, Manila, or Sao paulo or between Boston and athens. richard aboulafia, Vice president of analysis with teal Group, comments, “If you look at it from an airline standpoint: you don’t have a choice. If you don’t have a 787-class aircraft and your competitor does, he can under price you and out-profit you.”15
Boeing’s competitor, airbus, makes the airbus a380. the giant double- decker airbus a380 can carry up to 525 passengers for a distance of up to 8,000 miles. Singapore airlines flew the first commercial flight of this aircraft in October 2007 between Singapore and Sydney, australia.
components of airline Profit and Loss have you ever wondered why air travel is so expensive? You might find some answers in this section, where we look at the different costs included when you buy an air ticket. airlines have both fixed and variable costs. Fixed costs are constant and do not change regardless of the amount of business. examples are the lease of airplanes, the maintenance of airline-owned or leased terminals, interest on borrowed money, insurance, and pensions. Variable costs tend to rise and fall with the volume of sales or the number of flights. they include wages and salaries, advertising and promotion, fuel costs, passenger food and drink, and landing fees.
the biggest single cost for airline operations is labor, which is typi- cally 30–45 percent of total operating costs. Senior pilots for airlines such as United and Delta can receive as much as $150,000 or more a year.16 the median salary for a flight attendant is $67,000 or more a year, plus benefits.17 additionally, landing and takeoff charges charged to airlines by airports can add up to thousands of dollars per plane, depending on the airport and time of day. passenger servicing costs such as reservations, ticketing, food, bag- gage handling, and an amount for additional security and fuel must also be accounted for in the ticket price. Once a schedule is set and the break-even point is reached, selling tickets to extra passengers produces large profits for airlines. Being able to offer just the right amount of discount tickets that are needed to fill a plane then becomes highly important. Capacity control is one yield-management technique for maximizing sales income by lowering the price of seats according to expected demand.
the Load Factor a key statistic in analyzing an airline’s profitability is the load factor, which means the percentage of seats filled on all flights, including planes being flown empty to be in position for the next day’s schedule. the load factor, like the occupancy rate of a hotel, is an indicator of efficient or inefficient use. the current U.S. commercial air carrier load factor is around 79.76 percent.18 the break-even point, the point at which carriers neither lose money nor make a profit, is likely to be unique on any given flight. this point is determined by the rate structure in effect, the length of the flight, the time spent on the ground, and other costs such as wages and salaries. an airline with a long-haul, high-density route—for example, from New York
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to Los angeles—has a decided cost advantage over another airlines’ short- haul, low-density routes. the cost of flying a plane is sharply reduced once it reaches cruising altitude. a short flight thus costs more per mile than a long one does because a greater proportion of flight time and fuel is consumed in climbing to and descending from the cruising altitude.
In busy airports such as atlanta, O’hare, Los angeles, and Kennedy, planes may spend much time waiting to take off or land. every minute’s wait adds dollars to personnel, fuel, and other costs. to keep costs down, the airlines have shifted to newer two-engine planes such as the Boeing 767, which enables them to reduce fuel consumption by as much as 30 percent. airlines have also recon- figured seat arrangements to include more seats, but this results in seats that are smaller and have less legroom for passengers. Claustrophobic? You’d better travel business class! a few years ago, american airlines removed some rows of seats to give more legroom by spacing the remaining seats farther apart. this has proven to be a popular decision, and many others have followed.
cruise ships More than 200 cruise lines offer a variety of vacations, from a Carnival cruise to freighters that carry only a few passengers. travelers associate a certain romance with cruising to exotic locations and being pampered all day.
Being on a cruise ship is like being on a floating resort. For example, the Diamond Princess is a kind of “super love boat,” weighing in at 116,000 tons with 18 decks and costing $500 million to build. this ship is longer than two football fields and is capable of carrying up to 2,670 passengers.19 the larg- est cruise ships can carry over 6,000 passengers. Cruise ship accommoda- tions range from luxurious suites to cabins that are even smaller than most hotel rooms. attractions and distractions range from early morning workouts to fabulous meals and nightlife consisting of dancing, cabarets, and casinos. Day life might involve relaxation, visits to the hair salon or spa, organized games, or simply reclining in a deck chair by the pool. Nonstop entertain- ment includes language lessons, charm classes, port-of-call briefings, cook- ing demonstrations, dances, bridge, table tennis, shuffleboard, and more.
the cruise market has increased dramatically in recent years. about 20 million people take a cruise each year. rates vary from a starting point of about $95 per person per day on Carnival Cruise Lines to $850 on Seabourn Cruise Line. rates typically are quoted per diem (per day) and are cruise-only figures based on double occupancy. Some 215 ships provide lake and river cruises, but most cruises are oceangoing. Casual ships cater to young couples, singles, and families with children. at the other end of the spectrum, ships that appeal to the upscale crowd draw a mature clientele that prefers a more sedate atmosphere, low-key entertainment, and dressing up for dinner. the spectacular new ships with multideck atriums and razzle-dazzle entertainment cater to the tourist markets that have a median income of $109,000 a year.20
Carnival Cruise Line is the most financially successful of the cruise lines, netting about 20 percent of cruise sales. It targets adults between the ages of 25 and 54 and expects to attract millions of passengers with its spectacular atriums
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and round-the-clock activities. Its largest income, other than the fare itself, is from beverage service. Casino income is also high, and its casinos are the largest afloat. Carnival hopes that passengers will enjoy buying drinks and putting quarters, or preferably dollars, into the shipboard slot machines. they also hope their passengers will not mind their small cabins because the activities on the ship occupy passen- gers’ waking hours and much of the night.
as of 2014, about 20 million passengers vacationed on a ship, and approximately 19.9 percent of the U.S. population target market had taken a cruise, but millions more intend to cruise in the next few years.21 Many passengers are remarkably loyal to one particular vessel; as many as half of the passengers on a cruise may be
repeat guests. Most cruise ships sail under foreign flags because they were built abroad for the following reasons:22
1. U.S. labor costs for ships, officers, and crew, in addition to maritime unions, are too high to compete in the world market.
2. U.S. ships are not permitted to operate casino-type gambling.
3. Many foreign shipyards are government subsidized to keep workers employed, thereby lowering construction costs.
Take a Princess cruise for a dream vacation.
6:00 a.m. Time to wake up, get ready, and gear up for a day on the open sea, where my main responsibility is to entertain 2,000 guests. I head to deck nine to grab a quick breakfast, and one of the most essential components of the day—coffee!
7:00 a.m.–9:30 a.m. As most guests are still eating breakfast, and before the majority of the events begin, this is my office time. This is the time for answering e-mails, organizing everything I need to run the events, and making sure that all other entertainment staff are ready for the day.
9:45 a.m. If you aren’t already awake, chances are you will be at this time. This is when I make my first of three announcements over the P.A. system to highlight some of the major upcoming morning events. In addition to highlighting my entertainment events, I also have to keep the revenue department in mind, and give a few shout outs to the onboard service managers such as the spa, casino, shops, and so on. I close the announcement by reminding everyone to keep the daily schedule with them, which they received the previous evening.
10:00 a.m.–12:00 p.m. During this span of two hours, I usually have two major events to host. These events could include lectures, cooking demonstrations, trivia sessions, pool games, game shows, dance classes, and much more.
a D a Y i n t H e L i F e O F j t W a t t e r s
Cruise Director, holland america Line, Inc.
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If I have any spare time in between events, I walk the ship to check on other events and socialize with the guests. Simply being visible and available to the guests while I’m off stage is just as important as actually hosting events.
12:00 p.m.–12:45 p.m. Lunch time (maybe)! Sometimes there just isn’t enough time. Eating takes a back seat to my schedule of events. I eat when time becomes available, and not necessarily during designated meal times. More often than not, this chunk of 45 minutes is available to recharge.
12:45 p.m. It’s time for my second of three announcements for the day. This time I am joined by the Captain. During the days at sea, the Captain and I will always make a mid-day announcement. The Captain covers the lat- est nautical and meteorological information, as well as a few fun facts. He then passes the microphone off to me for another chance to promote several of the afternoon events.
12:45–1:00 p.m. Second dose of caffeine—check!
1:00 p.m.–4:30 p.m. This three-hour block is dedicated to the same responsibilities I had from 10 a.m. to noon. All the guests have had lunch, and are now energized and ready to seek out the afternoon events. I should also clarify that not all guests attend every event scheduled in the daily program. The events are there if they want, but as I walk the decks, mobs of guests are content lying poolside, book in one hand, and drink in the other.
4:45 p.m. This will be my third and final announcement of the day. This is my chance to promote the evening entertainment.
5:00 p.m.–6:30 p.m. This is a crucial break time. Anything I can fit into this down time, I do. Sometimes it’s going to the gym, sometimes laundry, chatting on the Internet, napping, dinner, watching TV, visiting the crew bar, you get the idea. About 99 percent of the time, I use this hour and a half for sleeping—I can find food later.
7:00 p.m. Show time! This is the first of three shows during the evening. Three show times are offered in order to accommodate the schedules of all 2,000 guests. Tonight’s show just happens to be our cast of 12 talented singers and dancers. Tomorrow it could be a comedian; next night it could be an illusionist. A different show is featured each and every night. I take the stage at exactly 7:00 p.m. to welcome everyone to the main stage, give them a little information about the next day, a few more reminders about what’s happening after tonight’s show, sprinkle in some comedy when possible, and most importantly, get the audience pumped up for what they are about to see on stage.
7:45 p.m.–8:30 p.m. I outro the show and then walk the ship to check on all the bars and lounges. Socializing is also a big part of my evenings.
8:30 p.m. Show time number two. I hop on stage and cover the same details I did for the first crowd, get the audience amped, and intro the cast.
9:15 p.m.–10:00 p.m. During this time, I have the opportunity to host my own show in one of the other enter- tainment venues. Whether it be a game show or a party, it’s a great opportunity for the guests to have some- thing to do in addition to the main show, the music and dancing in the other bars and lounges, the casino, and the nightclub.
10:00 p.m. Show time number three. It doesn’t take too much effort to get this party crowd pumped up for the show.
10:45 p.m.–??? At 10:45 p.m., my day can end, but it never does. Technically, I don’t have any more responsibilities, and I can go to bed if I want to, but if you haven’t gathered by now, my life is a lot about socializing with the guests. I always choose to stay out and enjoy the late night crowd. Meeting new people is one of the biggest perks of the job.
a D a Y i n t H e L i F e O F j t W a t t e r s (Continued)
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In addition, cruise ships sail under foreign flags (called flags of convenience) because registering these ships in countries such as panama, the Bahamas, and Liberia means fewer and more lax regulations and little or no taxation.
employment opportunities for americans are mainly confined to sales, marketing, and other U.S. shore-based activities, such as reservations and supplies. Onboard, americans sometimes occupy certain positions, such as cruise director and purser.
the reasons that few americans work onboard cruise ships are because the ships are at sea for months at a time with just a few hours in port. the hours are long and the conditions for the crew are not likely to be accept- able to most americans. No, you don’t get your own cabin! Still interested? try www.crewunlimited.com.
the cruise Market there are marked differences between the segments of the cruise industry:
Mass Market—Generally, people with incomes in the $35,000–$75,000 range, interested in an average cost per person of between $99 and $195 per day, depending on the location and size of the cabin.
Middle Market—Generally, people with incomes in the $75,000–$89,000 range, interested in an average cost per person of about $175–$350 per day. these ships are capable of accommodating about 750–2,500 passengers. the middle-market ships are stylish and comfortable, with each vessel having its own personality that caters to a variety of different guests. among the cruise lines in the middle market are princess Cruises, Norwegian Cruise Line, royal Caribbean International, holland america Line, Windstar Cruises, Cunard Line, and Celebrity Cruises.
Luxury Market—Generally, people with incomes higher than $100,000, interested in an average cost per person of more than $300 per day. In this market, the ships tend to be smaller, averaging about 700 passengers, with superior appointments and service. What constitutes a luxury cruise is partly a matter of individual judgment, partly a matter of advertis- ing and public relations. the ships that received the top accolades from travel industry writers and others who assign such ranks cater only to the top 5 percent of North american income groups. Currently, the ships considered to be in the very top category are Seabourn Spirit, Seabourn Legend, Crystal Serenity, and Silver Wind. these six-star vessels have so- phisticated cuisine, excellent service, far-reaching and imaginative itiner- aries, and highly satisfying overall cruise experiences.
the rising demand for cruising means larger ships with a resort-like design, numerous activities, and amenities such as virtual golf, pizzerias, and caviar bars. Significant growth opportunities still exist for the industry. With only about 10 percent of the cruise market tapped and with an esti- mated market potential of billions, the cruise industry is virtually assured of a bright future.
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▶ check Your Knowledge
1. What measures have the major U.S. airlines taken in recent years to combat the tough economic conditions?
2. Why do most cruise ships sail under foreign flags?
3. Summarize the cruise market.
4. Summarize the historical impact of transportation on tourism.
What Is tourism in the twenty- First Century? Tourism is a dynamic, evolving, consumer-driven force and is the world’s largest industry, or collection of industries, when all its interrelated compo- nents are placed under one umbrella: tourism and travel; lodging; conven- tions, expositions, meetings, and events; restaurants and managed services; assembly, destination, and event management; and recreation. tourism plays a foundational role in framing the various services that hospitality compa- nies perform.
the leading international organization in the field of travel and tour- ism, the World Tourism Organization (UNWTO) is vested by the United Nations with a central and decisive role in promoting the development of responsible, sustainable, and universally accessible tourism, with the aim of contributing to economic development, international understanding, peace, prosperity, and universal respect for and observance of human rights and fundamental freedoms. In pursuing this aim, the organization pays particular attention to the interests of the developing countries in the field of tour- ism. the UNWtO’s definition of tourism is, “tourism comprises the activities of persons traveling to and staying in places outside their usual environ- ment for not more than one consecutive year for leisure, business, and other purposes.”23
the UNWtO plays a catalytic role in promoting technology transfers and international cooperation, stimulating and developing public–private-sector partnerships, and encouraging the implementation of the Global Code of ethics for tourism. the UNWtO is dedicated to ensuring that member coun- tries, tourist destinations, and businesses maximize the positive economic, social, and cultural effects of tourism and fully reap its benefits, while mini- mizing its negative social and environmental impacts. Francesco Frangialli, secretary general of the UNWtO from 1998 to 2008, writes:
The Global Code of Ethics for Tourism sets a frame of reference for the responsible and sustainable development of world tourism. It draws inspiration from many similar declarations and industry codes that have come before and it adds new thinking that reflects our changing society at the beginning of the 21st century.
LearNING OBjeCtIVe 2 Define tourism and describe the important international tourism organizations.
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With international tourism forecast to reach 1.6 billion arrivals by 2020, members of the World Tourism Organiza- tion believe that the Global Code of Ethics for Tourism is needed to help minimize the negative impacts of tourism on the environment and on cul- tural heritage while maximiz- ing the benefits for residents of tourism destinations. The Global Code of Ethics for Tour- ism is intended to be a living document. Read it. Circulate it widely. Participate in its imple- m e n t a t i o n . O n ly w i t h y o u r cooperation can we safeguard the future of the tourism indus- try and expand the sector’s con-
tribution to economic prosperity, peace and understanding among all the nations of the world.24
the UNWtO membership includes 156 countries, six associate Members, and some 400 affiliate members representing the private sec- tor, educational institutions, tourism associations, and local tourism authorities.25 Unfortunately, the United States is not a member, but it may soon be.
the UNWtO and the World travel and tourism Council (WttC) declare the travel and tourism industry to have the following characteristics:
• a 24-hour-a-day, 7-day-week, 52-week-a-year economic driver • total contribution to world gross domestic product (GDp) of
9 percent
• employer of more than 272 million people, or 1 in 11 of the world’s total jobs, and is expected to be 1 in 10 by 202126
• Leading producer of tax revenues
Given declining manufacturing and agricultural industries, and in many countries the consequent rise in unemployment, world leaders should turn to the service industries for real strategic employment gains. For many developing nations, tourism represents a large percentage of gross national product and a way of gaining a positive balance of trade with other nations.
Waikiki Beach is a popular tourist destination.
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▶ check Your Knowledge
1. What role does the UNWtO play in the tourism industry?
2. Define tourism.
3. how is tourism categorized?
Benefits and prospects of tourism tourism is firmly established as the number one industry in many coun- tries and the fastest-growing economic sector in terms of foreign exchange earnings and job creation. International tourism is the world’s largest export earner and an important factor in the balance of payments of most nations.
tourism has become one of the world’s most important sources of employment. It stimulates enormous investment in infrastructure, most of which helps to improve the living conditions of residents as well as tourists. tourism also provides governments with substantial tax revenues. Most new tourism jobs and businesses are created in the developing countries, help- ing to equalize economic opportunities and keep rural residents from mov- ing to overcrowded cities. Intercultural awareness and personal friendships fostered through tourism are powerful forces for improving international understanding and contributing to peace among all the nations of the world.
the UNWtO encourages governments, in partnership with the private sector, local authorities, and nongovernmental organizations, to play a vital role in tourism. the UNWtO helps countries throughout the world to maxi- mize the positive impacts of tourism, while minimizing its possible negative consequences on the environment and societies.27 tourism is a collection of industries, or segments, that when combined, form the world’s largest indus- try. tourism offers the greatest global employment prospects. this trend is caused by the following factors:
1. the opening of borders: Despite security concerns, we can travel to more countries now than 10 years ago. the United States has a Visa Waiver program with 38 countries, which means citizens of these coun- tries with machine-readable passports do not require a visa to visit the United States.
2. an increase in disposable income and vacation taking
3. reasonably affordable airfares
4. an increase in the number of people with more time and money to travel
5. More people with the urge to travel
LearNING OBjeCtIVe 3 Describe the benefits and prospects of tourism.
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according to the WttC—the industry’s business leaders’ forum— tourism and travel generate, directly and indirectly, 9 percent of global GDp, invest- ment, and employment.28 the industry is forecast to grow strongly in real terms during the next 10 years. this means growth in jobs in the United States and abroad.
Long-term Prospects: towards tourism 2030 vision29
Despite the terrorist attacks and a weak economic recovery, the long- term prospects for tourism appear to be good. Towards Tourism 2030 Vision is the UNWtO’s long-term forecast and assessment of the devel- opment of tourism over the next few years when international tourism arrivals are expected to reach 1.8 billion by 2030—more than the popula- tion of China!30 Figure 9–2 gives actual and forecast tourism arrivals for 1980–2030.
UNWtO’s Tourism Toward 2030 forecasts that international arrivals will increase by 43 million a year on average, or more than the entire population of Canada.31
the fact that tourism is expected to grow rapidly presents both tremen- dous opportunities and challenges. the good news is the variety of excit- ing career prospects for today’s hospitality and tourism graduates. tourism, although a mature industry, is a young profession. Careful management of tourism and travel will be necessary to avoid repercussions and negativ- ism toward the “pesky” tourist, which is already happening to some extent in europe, where the sheer number of tourists overwhelms attractions and facilities.
there is an interdependency between the various segments of tourism: travel, lodging, foodservice, and recreation. hotel guests need to travel to reach the hotel. they eat in nearby restaurants and visit attractions. each segment is, to an extent, dependent on another for business.
0
250
1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030
500
750
1,000
1,250
M ill
io n
1,500
1,750
2,000 International tourism, World International tourist Arrivals
Figure 9–2 • Actual and Forecast Tourism Arrivals, 1980–2030. Source: World Tourism Organization (UNWTO)
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t e c H n O L O g Y s P O t L i g H t
Use of the Internet for travel
Courtesy of James McManemon, M.S., University of South Florida Sarasota–Manatee
Advances in information technology have made a significant impact on all parties involved in the tourism indus- try: tourism organization, travelers, transportation companies, and travel destinations.
Development of the Internet and online booking systems has drastically changed travel agents’ operations. From working with huge price catalogs, calling for seats and room availability, and faxing reservations, travel agents have moved to online reservation systems that allow convenient access to information and instant up- dates. All these became available due to the invention of global distribution systems (GDSs). Originally, these systems were developed by airline companies to enable bookings among different airline companies. Later, they were also extended to hotels and car-rental companies. The most popular GDSs are Amadeus, Sabre, Galileo, Worldspan, and Travel Sky (a new GDS that is emerging in China). For example, more than 400,000 travel agents use Sabre and nearly 90,000 travel agencies use Amadeus. GDSs provide travel agents with rapid search, book- ing, and confirmation facilities for airline, hotel, and car-hire products. In hospitality, GDSs are dependent on modern hotel central reservation systems (CRSs), which provide full details of hotel properties, locations, room types, availability, prices, and booking conditions. If a hotel wants to make its inventory available to numerous customers and travel agents all around the world, it needs to interface its CRS to one (or several) GDSs. This in- terface can be done by means of a switch company, for example, Pegasus Solutions. The Internet also gave rise to online travel agencies (OTAs) such as Expedia and Travelocity. OTAs are an electronic overlay of GDSs. These sites may focus on travel reviews, online bookings, and providing relevant information to customers. There are three major OTA business models: merchant (net rate; e.g., Expedia), agency (commission; e.g., Booking.com), and opaque (e.g., Priceline.com).
The development of information technology has greatly enhanced travelers’ experiences by increasing their access to information, their awareness, and the travel options available to them. Previously, travelers used to be dependent on travel agents in their search for vacation places and decision-making process. However, the extensive resources of the Internet today allow every traveler to be a travel agent on his or her own. On the Web, travelers can find information about millions of hotels, destinations, and things to do all over the world. Review web sites (e.g., Tripadvisor.com) provide firsthand evaluation of hotels, destinations, and attractions through the recording of people’s experiences. These web sites have become one of the key forces in travel decision-making.
Airline companies have also greatly developed and improved their electronic systems in order to improve operations and customer service. As mentioned earlier, airlines were the initiators of the GDSs. Airline companies also developed comprehensive reservation systems that allow customers to create their accounts, select seating, and check in online, as well as customer relationship management (CRM) and loyalty systems. Recently, airlines introduced a new initiative by implementing electronic boarding passes. This pass is sent to a smartphone or personal digital assistant (PDA) of a traveler and does not require any printouts. This system is already available in select airports around the United States.
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the economic Impact of tourism the World travel and tourism Council, a London-based organization, sug- gests that the revenue from travel and tourism was $7 trillion (approximately 3 percent) of GDp in 2013 and will rise by 4.2 percent annually through 2023. the total contribution of travel and tourism to GDp, including its wider economic impacts, is forecast to be $10.4 trillion by 2023.32 total contri- bution of travel and tourism to employment, including jobs indirectly sup- ported by the industry, was $266 million in 2013 and is forecasted to rise to 323,826,000 jobs (9.7 percent) by 2021.33
tourism accounts for 7.72 million jobs in the United States. the United States is second to France in the number of tourists (59.7 million) but first in tourism revenues (see Figure 9–3).
World international arrivals, according to the UNWtO, will reach 1.8 billion by 2030, more than triple the 475 million people who traveled abroad in 1992. Nearly every state publishes its own tourism economic impact study indicating billions of dollars in tourism revenue. the U.S. travel association’s U.S. Travel Answer Sheet35 shows travel’s impact on america. Statistics for 2014 include the following:36
• International travelers spent about $137 billion on travel-related expenses (e.g., lodging, food, entertainment), thereby supporting over 1 million U.S. jobs.
• there were about 8 million people directly employed in the travel industry, ranking travel among the top 10 industries.
• travel generated more than $140 billion in tax receipts. If it were not for tourism, each U.S. household would have paid over $1,000 more in taxes.
LearNING OBjeCtIVe 4 Describe the economic impact of tourism.
Rank 2012 1 United States 128.6
55.9 53.7 50.0 41.2 38.6 38.1 36.4 31.7 31.5
2 Spain 3 France 4 China 5
Germany 6 Macao (China) 7
Italy
8 Hong Kong (China)9 Australia10
United Kingdom
International Tourism Receipts (US $ billion)
Figure 9–3 • World’s Top Ten Tourism Receipts 2012.34
Source: World Tourism Organization (WTO)©.
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• Spending by international visitors in the United States was $40 billion more than travel-related spent by americans outside the United States.
• approximately 73.9 million international travelers visited the United States.
By employing approximately one out of every 10 workers, travel and tour- ism is the world’s largest employer and is the world’s largest industry grouping.
the Multiplier effect tourists bring new money into the economy of the place they are visiting, and this has effects beyond the original expenditures. When a tourist spends money to travel, to stay in a hotel, or to eat in a restaurant, that money is recycled by those businesses to purchase more goods, thereby generating further use of the money. In addition, employees of businesses who serve tourists spend a higher proportion of their money locally on various goods and services. this chain reaction, called the multiplier effect, continues until there is a leakage, meaning that money is used to purchase something from outside the area. Figure 9–4 illustrates the multiplier effect.
In most economic impact studies to date, developed economies have a multiplier effect of between 1.5 and 2.0.37 this means that the original money spent is used again in the community between 1.5 and 2.0 times. If tourism-related businesses spend more money on locally produced goods and services, it benefits the local economy.
New Dollars Injected into
Economy
Supplier and Payroll to Support and Provide Production
and Services
Suppliers and Employees Spend Money on Items for their
Wants and Needs
Others in the Community Receive and Spend on Related Products and
Services and So on
Figure 9–4 • The Multiplier Effect.
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promoters of tourism the Pacific Area Travel Association (PATA) represents countries in the pacific and asia that have united behind common goals: excellence in travel and tourism growth. pata’s accomplishments include shaping the future of travel in the asia pacific region; it has had a remarkable record of success with research, development, education, and marketing. asia pacific has become the world’s largest travel market, reaching $351.9 billion in 2013.38 China, India, and Southeast asia have continued to be driving forces in international travel and are constantly setting new records. pata’s dedication and efforts to pro- mote tourism has significantly helped these trends. the economic strengths of countries like China and India have assisted in the increase in travel within asia pacific, appealing to both the leisurely and corporate traveler.
Many countries have a minister of tourism, which is a cabinet-level posi- tion that can advocate tourism development, marketing, and management through the national tourism organization (NtO). Unfortunately, the United States does not have even a senior-level government official for tourism. Instead, an organization known as the travel Industry of america (tIa) is the main body for the promotion and development of tourism in the United States. It speaks for the common interests and concerns of all components of the U.S. travel industry. Its mission is to benefit the entire U.S. travel industry by unifying its goals, coordinating private sector efforts to encourage and promote travel to and within the United States, monitoring government poli- cies that affect travel and tourism, and supporting research and analysis in areas vital to the industry. established in 1941, tIa’s membership represents more than 2,000 travel-related businesses, associations, and local, regional, and state travel-promotion agencies.
LearNING OBjeCtIVe 5 Identify the promoters of tourism.
Mark Nichols, the executive director of a South Florida convention and visitor’s bureau, offered some basic tips for attracting tourists to a destination and strengthening local economies, as follows:
1. To increase the health of every economy, large or small, you must employ a workforce that is going to help you grow. In the tourist industry that means you must focus on strengthening relationships with public schools, colleges, universities, and technical schools. These students represent the next generation of professionals who will enter the workforce and work to strengthen the economy.
H O W t O t H i n K L i K e a t O u r i s M D i r e c t O r Courtesy of James McManemon, M.S., University of South Florida Sarasota–Manatee
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state Offices of tourism In the United States, the next levels of organizations concerned with tourism are the state offices of tourism. these offices are charged by their legislative bodies with the orderly growth and development of tourism within the state. they promote information programs, advertising, publicity, and research on the recreation and tourism attractions in the state.
2. In the tourism industry, you must market your destination. The goal of tourism-centric marketing is to create a destination that people want to visit because they are going to receive world-class service and a great experience. In return, they will tell others about it, and they themselves will want to return.
3. It is important to make travelling to a destination as easy as possible for people, because this allows you to invite more visitors both domestically and internationally. This begins, first and foremost, with an airport conveniently located that flies internationally or to a hub that flies internationally. Next, an array of transportation options is necessary for the traveler’s arrival at the destination. Finally, it is essential to have a wide selection of lodging establishments available that range in price to accom- modate tourists of various socio-economic statuses.
4. In destinations with seasonal peak business times, it is important to establish a demand for group business travel to offset the slow periods. This provides a year-long flow of business and stability of employment in the tourism industry and the community at large. In turn, from a financial perspective, the stable incoming tax dollars and additional revenue generation for local areas will differentiate them as a destination with a lot to offer.
5. Many beach destinations rely solely on the beach to attract business, but with the increase in tourist destinations, beach destinations need to diversify their tourist attractions by adding sports, entertain- ment, and arts and culture offerings and events. Celebrate and educate customers and guests about all your destination has to offer from big to small.
6. Resort destinations should focus on increasing their recreation and leisure offerings to accommodate active lifestyle trends partnered with relaxation needs. These offerings should include golf, tennis, a fitness center that offers a variety of classes and personal trainers, a spa and pool area, and a num- ber of other options depending on the location.
7. Combatting traffic is a big challenge for tourism officials. In tourist destinations that are seasonal, the traf- fic can get extremely congested during peak seasons, which can get even more hectic when tourists visit for events, vacation, or other reasons. The biggest solution to this dilemma is long-term planning and local support from government, organizations, businesses, and local dollars; big changes in infrastructure require both time and teamwork. You need to plan now for change to take place several years down the road.
8. Make the Internet your best resource for attracting tourists. Many people choose products and services based on the number of positive reviews they see when they search through a basic web browser, like Google. The same goes for destinations; you can reinforce future business by encourag- ing people to simply write a positive review about their experience. This is another reason why the experience itself is one of the most important tools.
H O W t O t H i n K L i K e a t O u r i s M D i r e c t O r (Continued)
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city-Level Offices of tourism and convention centers Cities have also realized the importance of the new money that tourism brings. Many cities have established convention and visi- tor bureaus (CVBs), whose main function is to attract and retain visitors to the city. the CVBs are staffed by representatives of the city’s attractions, restaurants, hotels and motels, and transportation system. these bureaus are largely funded by the transient occupancy tax (tOt) that is charged to hotel guests. In most cities, the tOt ranges from 8 to 18 percent. the balance of funding comes from membership dues and promo- tional activities. In recent years, conven- tion centers have sprung up in a number of large and several smaller cities. Spurred on by expectations of economic and social gain,
cities operate both CVBs and convention centers. Both CVBs and conven- tion centers are discussed in detail in Chapter 12.
national Offices of tourism (nOts) NOts seek to improve the economy of the country they represent by increas- ing the number of visitors and consequently their spending in the coun- try. Connected to this function is the responsibility to oversee and ensure that hotels, transport systems, tour operators, and tour guides maintain high standards in the care and consideration of the tourist. the main activities of NOts are as follows:
• publicizing the country • assisting and advising certain types of travelers • Creating demand for certain destinations • Supplying information • ensuring that the destination is up to expectations • advertising39
tour Operators tour operators promote tours and trips that they plan and organize. a tour is a trip taken by an individual or group of people who travel together with a professional tour manager/escort and follow a preplanned itinerary. Most tours include travel, accommodations, meals, land transportation, and sightseeing. the tour operator negotiates discounted travel, accommodation,
State offices of tourism promote places of interest, such as Faneuil Hall and Quincy Market in Boston.
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meals, and sightseeing and then adds a markup before advertising the pack- age. tour operators also offer vacation packages to people traveling alone. Vacation packages include a combination of two or more travel services— hotel, car rental, and air transportation—offered at a package price. Most vacation packages offer a choice of components and options, allowing the client to customize his or her package to personal interests and budget.
travel agencies a travel agent is a middleperson who acts as a travel counselor and sells travel services on behalf of airlines, cruise lines, rail and bus transportation companies, hotels, and auto rental companies. agents may sell individual parts of the overall system or several elements, such as air and cruise tickets. the agent acts as a broker, bringing together the client (buyer) and the sup- plier (seller). agents have quick access to schedules, fares, and advice for clients about various destinations.
the american Society of travel agents (aSta) is the world’s largest travel trade association, with more than 26,000 members in more than 140 countries. agents use central reservation systems (CrSs) to access service availability and make bookings. In the United States, the main vendors of CrSs are amadeus, Sabre, travelSky, Worldspan, and Galileo.
a travel agent is more than a ticket seller. agents serve their clients in the following ways:
• arranging transportation by air, sea, rail, bus, car rental, and so on • preparing individual itineraries, personally escorted tours, group tours,
and prepared package tours
• arranging for hotel, motel, and resort accommodations; meals; sightsee- ing tours; transfers of passengers and luggage between terminals and hotels; and special features such as tickets for music festivals, the the- ater, and so forth
• handling and advising on many details involved with travel, such as insurance, foreign currency exchange, documentary require- ments, and immunizations and other inoculations needed
• Using professional know-how and experience (e.g., schedules of air, train, and bus connec- tions, rates of hotels, quality of accommodations)
• arranging reservations for special- interest activities, such as group tours, conventions, business travel, gourmet tours, and sporting trips
Travel agents have knowledge of destinations and can make air, ground, and hotel reservations for clients to visit popular destinations such as Venice, Italy.
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however, the travel business has changed, resulting in a sharp decline in the number of travel agents, because there is less need for the tradi- tional travel agent in the age of the Internet. Internet travel services such as travelocity and expedia have changed the way we book travel. as you know, it is quick and easy to go online and select travel dates, times, and fares. In fact, tourism services are among the top online purchases. as consumers, we can shop for the best price and most convenient schedule and purchase electronic tickets by entering our credit card numbers and billing informa- tion over a secure connection.
tour Wholesalers and consolidators tour suppliers provide the package components for tour operators via the services of hotels, attractions, restaurants, airlines, cruise lines, railroads, and sightseeing, which are packaged into a tour that is sold through a sales channel to the public.40 tour wholesaling came into prominence years ago because airlines had vacant seats, which, like hotel rooms, are perishable. airlines naturally wanted to sell as many seats as possible and found that they could sell blocks of seats to wholesalers close to depar- ture dates. these tickets are for specific destinations around which tour wholesalers build a tour. Wholesalers then sell their tours directly through retail agents.
Consolidators work closely with airlines to purchase discounted seats that they then sell to consumers for a price that is generally about 20 percent lower than the price offered by airlines or an online service company such as travelocity. For example, the price of a consolidator’s fare for a round trip to Bali from New York is $975, but the airline or travelocity fare can be double that. So, consolidators are the place to call or e-mail when you are interested in booking an airfare.
Destination Management companies (DMcs) a DMC is a service organization in the visitor industry that offers a host of programs and services to meet clients’ needs. Initially, a destination manage- ment sales manager concentrates on selling the destination to meeting plan- ners and performance improvement companies (incentive houses).
the needs of such groups may be as simple as an airport pickup or as involved as hosting an international sales convention with theme parties. DMCs work closely with hotels; sometimes DMCs book rooms, and other times hotels request the DMC’s know-how on organizing theme parties.
patricia roscoe, chairperson of patti roscoe and associates (pra), says that meeting planners often have a choice of several destinations and might ask, “Why should I pick your destination?” the answer is that a DMC does everything, including providing airport greetings, transporta- tion to the hotel, and VIp check-in; organizing theme parties; sponsoring programs; organizing competitive sports events, and so on, depending on the budget.
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i n t r O D u c i n g P a t t i r O s c O e
Chairperson, patti roscoe and associates (pra) and roscoe/Coltrell, Inc. (rCI)
Patricia L. Roscoe landed in California in 1966, charmed by the beautiful San Diego sun compared to the cold winters in Buffalo, New York, her hometown. She was a young, brilliant middle manager who was to face the challenges of a time when women were expected to become either nurses or teachers. She became involved with the hotel industry, working for a large private resort hotel, the Vacation Village. She gained a very thorough knowledge of southern California tourism, as well as the inherent mechanisms of the industry. With the unforgettable help and guidance of her manager, she began to lay the foundations of her future career as a very successful leader in the field. The outstanding skills that she learned are, in fact, the very basis of her many accomplishments.
The list of her awards and honors is astounding: the prestigious CITE (certified incentive travel executive) distinction, the San Diego Woman of Accomplishment, and San Diego’s Allied Member of the Year. The U.S. Small Business Administration gave her the Wonder Woman Award for her outstanding achievements in the field, and the San Diego Convention
& Visitors Bureau has conferred on her the prestigious R.C.A. Lubach Award for her contributions to the industry. She is also extremely involved in civic and tourism organizations, including the Rotary Club, the American
Lung Association of San Diego and Imperial Counties, and the San Diego Convention & Visitors Bureau. The key to her success perhaps lies in her remarkable skill for interacting with people. It is the human resources,
in fact, that represent the major strength of PRA. Its employees are experienced, dedicated, and service oriented. But what makes them so efficient is their dedication to working together as a team. Patti Roscoe guides, inspires, and mo- tivates the teams. She is a self-admitted softy, a creative and emotional leader who enjoys training her employees and following their growth step by step, to eventually give them the power of initiative they deserve, as a tool to encour- age their creativity and originality. She constantly seeks to balance the concept of teamwork with the individual goals and private lives of her employees. It is through the achievement of such a balance that a profitable, healthy commu- nity is preserved. PRA is a bit more than a community, however: It is a family, and just like a mother, Patti’s formula is discipline and love. At the same time, Patti’s leading efforts are aimed at training her employees to think outside of the box, and to keep their views as broad as possible, which is the only way to rise above the commonplace, the rhetorical, and the trivial, to escape provincialism, and thus become unique individuals.
That’s how the magic is done. PRA excels in creating “something that becomes exclusively yours—that has never been done before.” PRA is decentralized into service teams to foster an entrepreneurial environment in which initiative and creativity can be boosted to the fullest. Therefore, PRA staff design personalized, unique events to give their customers an unforgettable time.
Since its opening in 1981, PRA has become one of the most successful destination management companies in the country, providing personal, caring service characterized by flexibility and creativity.
Sales managers associated with DMCs obtain leads, which are potential clients, from the following sources:
• hotels • trade shows • CVBs • Cold calls • Incentive houses • Meeting planners
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each sales manager has a staff or team that includes people in the following positions:
• Special events manager, who has expertise in sound, lighting, staging, and so on
• accounts manager, who is an assistant to the sales manager • Operations manager, who coordinates everything, especially on-site
arrangements, to ensure that what is sold actually happens
For example, patti roscoe’s DMC organized meetings, accommodations, meals, beverages, and theme parties for 2,000 Ford Motor Company dealers in nine groups over three days per group.
roscoe also works closely with incentive houses, such as Carlson Marketing or Maritz travel. these incentive houses approach a company and offer to evaluate and set up incentive plans for the sales team, including whatever it takes to motivate them. Once approved, Carlson contacts a DMC and asks for a program.
In conclusion, thousands of companies and associations hold meetings and conventions all over the country. Many of these organizations use the services of professional meeting planners, who in turn seek out suitable des- tinations for the meetings and conventions. Some larger hotels and resorts now have a destination management department to handle all the arrange- ments for groups and conventions.
▶ check Your Knowledge
1. Describe at least three ways in which tourism has a significant economic impact upon society.
2. Is it better to have a higher or lower multiplier effect, and why?
3. Identify the promoters of tourism.
Business travel In recent years, business travel has declined due to41 the general economic climate; in addition, increases in airfares, incidences in terrorism, and busi- nesses reducing their travel budgets have negatively affected business travel.
Yet, a good percentage of the guests who check into upscale hotels around the world are traveling for business reasons. Much business travel is hard work, whether it is travel in one’s own automobile or in the luxury of a first-class seat aboard an airplane. a good portion of business travel, how- ever, is mixed with pleasure.
Counted as business travelers are those who travel for business pur- poses, such as for meetings; all kinds of sales, including corporate, regional, product, and others; conventions; trade shows and expositions; and com- binations of more than one of these purposes. In the United States, meet- ings and conventions alone attract millions of people annually. Sometimes the distinction between business and leisure travel becomes blurred. If a
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convention attendee in atlanta decides to stay on for a few days after the conference, is this person to be considered a business or leisure traveler? Business travelers, when compared to leisure travelers, tend to be younger, spend more money, travel farther, and travel in smaller groups, but they do not stay as long as leisure travelers do.
Social and Cultural Impact of tourism From a social and cultural perspective, tourism can have both positive and negative impacts on communities. Undoubtedly, tourism has made significant contributions to international understanding. World tourism organizations recognize that tourism is a means of enhancing international understand- ing, peace, prosperity, and universal respect for and observance of human rights and fundamental freedom for all without distinction as to race, sex, language, or religion. tourism can be a very interesting sociocultural phe- nomenon. Seeing how others live is an interest of many tourists, and the exchange of sociocultural values and activities is rewarding.
provided that the number of tourists is manageable and that they respect the host community’s sociocultural norms and values, tourism provides an opportunity for a number of social interactions. a London pub or a New York café are examples of good places for social interaction. Similarly, depend- ing on the reason for the tourist visit, myriad opportunities are available to interact both socially and culturally with local people. even a visit to another part of the United States can be both socially and culturally stimulating. For example, New Orleans has a very diverse social and cultural heritage. Over the years, the city has been occupied by the Spanish, French, British, and americans, so the food, music, dance, and social norms are unique to the area. the competitiveness of interna- tional destinations is based on attributes such as service qual- ity, value for the price, safety, security, entertainment, weather, infrastructure, and natural environment.42 political stability is also important in determining the desirability of a destination for international tourism. Imagine the feelings of an employee in a developing country who earns perhaps $5 per day when he or she sees wealthy tourists flaunting money, jewelry, and an unobtainable lifestyle.
just imagine what will happen when another 500 mil- lion people become tourists by virtue of increasing standards of living and the ability of more people to obtain passports. Currently, only about 39 percent of the U.S. population has passports, although that may increase because everyone returning to the United States from Mexico and Canada must now have a passport.43 the population of eastern europe and the new rich of the pacific rim countries will substantially add to the potential number of tourists.
At beaches in Cannes, France, there may be standing room only.
LearNING OBjeCtIve 6 Summarize the sociocultural impact of tourism.
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If you are tired of the one-week-in-the-sun vacation and want to do something truly memorable, impactful, and off the beaten path, then G Adventures is the perfect company to ex- plore. They provide more than 650 small group experiences, tours, and expeditions on all seven continents with more than 110,000 travelers from around the globe each year.
G Adventures founder Bruce Poon Tip has been honored with the Entrepreneur of the Year Award, sponsored by NASDAQ, Ernst & Young, and the National Post. G Adventures has also been named one of Canada’s 50 Best Managed Companies and Top 100 Employers. Furthermore, they have contributed to the social and economic development of the communities and countries that host their travelers.
The G Adventures promise, “the freedom of independent travel with the security of a group,” has been practiced since
the start of the company in 1990. They respect their travelers as individuals, and there is no requirement to be athletic to embark on one of their tours. The only thing needed is to have the spirit of curiosity and adventure and the desire to experience a world in an authentic, respectful, and open-minded way.
The concepts of responsible and sustainable tourism are central to G Adventures brand promise and cus- tomer experience. Their commitment is to support local people and communities through capacity building, in- frastructure development, access to global markets, and partnerships with locally-owned or managed products. These social enterprises, in partnership with G Adventures, collectively help to spread wealth, promote cultural understanding, and protect natural and cultural heritage.
With a desire to change the world through travel, G Adventures established the nonprofit Planeterra Foun- dation in 2003 to serve families and communities by investing in their future and providing access to jobs and enterprise opportunities in tourism-related products and services. In 2012, a three-year collaboration between Planeterra Foundation, G Adventures, and the Multilateral Investment Fund (MIF) of the Inter-American Development Bank was pioneered to develop and finance an array of new community-based tourism (CBT) projects and services, which will receive automatic market access. Project locations include Costa Rica, Guate- mala, Nicaragua, and Peru. The initiative also includes social and environmental grants, promoting sustainable solutions for each destination. No such project has ever been taken on with the combined forces of an NGO with a major market player on this scale.
G Adventures hires people in different departments, including Operations, Product (or Innovation, in G speak), Sales and Marketing, Air, Software, Finance, Talent, and Tour Leading. Every member of the com- pany is encouraged to live by its values of Doing the Right Thing, Leading with Service, Creating Happiness & Community, Loving Changing People’s Lives, and Embracing the Bizarre. G Adventures employs more than 1,350 people worldwide. Working for G Adventures is a lifestyle choice that will give you the chance to work for an organization that is young, aggressive, and proud of being market leaders. G Adventures is a “work hard/play hard” company that is dedicated to an entrepreneurial spirit. It does not matter if you are a tour leader in the field or an accountant in the finance department; all employees are considered Great Adventure People who find passion in showing people the world.
If you have a passion for travel and a desire to contribute in a purposeful way to the global good, one attrac- tive career choice might be the position of G Adventures tour leader, which G Adventures calls chief experience
c O r P O r a t e P r O F i L e
G adventures
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ecotourism Ecotourism is focused more on individual values; it is tourism with a conscience, sharing many of the same aspirations as sustainable tourism (described next). the International ecotourism Society (tIeS) defines ecotourism as “responsible travel to natural areas that conserves the environment and improves the well- being of local people.”44 this means that those who implement and participate in ecotourism activities should respect the following principles:
• Minimize impact • Build environmental and cultural awareness and respect • provide positive experiences for both visitors and hosts • provide direct financial benefits for conservation • provide financial benefits and empowerment for local people • raise sensitivity to host countries’ political, environmental, and social climate • Support international human rights and labor agreements45
Most ecotourism destinations can be found in developing countries with natural surroundings and plentiful flora and fauna. places such as deserts, tropi- cal rain forests, coral reefs, and ice glaciers are prime locations. also important in ecotourism is the presence of a culture that is unique. the focus of ecotourism
LearNING OBjeCtIVe 7 Describe ecotourism.
officers (CEOs). In this position, your main responsibility is to make sure that G Adventures travelers have the safe, fun vacation of a lifetime, exposing them to all of the unique experiences and cultural interactions a country and community has to offer. The CEO ensures that travelers are able to immerse themselves in the local environment in the most authentic, meaningful, and beneficial way possible. The focus on sustainable tourism means the CEO always aims to make sure that the impact the group has on the people and places they visit is a positive one.
The role of CEO attracts people who are genuinely interested in meeting new people and creating meaning- ful connections with fellow travelers of different backgrounds, ages, and experiences. G Adventures’ CEOs are required to speak fluent English and, depending on the region, speak the local language as well.
A passion for travel, excellent people skills, and group management skills are a must. You also need to be resourceful, which at G Adventures means being able to solve any kind of problem that might arise, expected or unexpected. Because of the nature of the work, you also need to be in good health, have a first-aid certification, and an average level of computer literacy (Internet, e-mail, Microsoft Word, Microsoft Excel, and popular social media platforms). Additional skills needed include awareness of and commitment to sustainable tourism, both environmentally and culturally. As a social enterprise, the CEOs play an important role in connecting the travel- ers to G Adventures’ business model of supporting local supply chains.
G Adventures has developed several learning and growth and development opportunities to help CEOs learn more about their roles in order to consistently strive to become better leaders and understand the business even more. If you have seen the world, or want to see it, in a truly interactive way, and you are adventurous and brave with the leadership skills to back it up, then this might be the perfect job for you. Why not give it a try?
Note: To apply to be a CEO with G Adventures, you must complete the online application form found on the Web site.
c O r P O r a t e P r O F i L e (Continued)
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is to provide tourists with new knowledge about a certain natural area and the culture that is found in it, along with a little bit of adventure. as for the local inhabitants, ecotourism aims to help improve the local economy and conserva- tion efforts. all parties are to gain a new appreciation for nature and people.
Generally, most of the more popular ecotourism destinations are located in underdeveloped and developing countries. as vacationers become more adventurous and visit remote, exotic places, they are participating in activi- ties that should affect nature, host communities, and themselves in a positive manner. and because of the growing interests of travelers, many developed countries are following the trend and developing ecotourism programs. ecotourism can be a main source of worldwide promotion of sustainable development geared toward tourists and communities in all countries.
thus far, ecotourism projects tend to be developed on a small scale. It is much easier to control such sites, particularly because of limits that are normally set on the community, the local tourism business, and the tourists. Limitations may include strict control of the amount of water and electricity used, more stringent recycling measures, regulation of park and market hours, and more important, caps on the number of visitors to a certain location at one time, and the size of the business. another reason ecotourism projects are kept small is to allow more in-depth tours and educational opportunities.
Sustainable tourism the increasing number of tourists visiting destinations has heightened con- cerns about the environment, physical resources of the place, and sociocul- tural degradation. the response of tourism officials has been to propose that all tourism be sustainable. the concept of sustainable tourism places a broad-based obligation on society, especially those involved in making tour- ism policy, planning for development, and harmonizing tourism and tour-
ism development by improving the quality of a place’s environment and physical and sociocultural resources. according to the UNWtO definition, sustainable tourism refers to the environmental, economic, and sociocultural aspects of tourism develop- ment, with the establishment of a suitable balance between these three dimensions to guarantee its long-term sustainability.46
the United Nations environment programme (UNep) says that sustainability principles refer to the environmental, eco- nomic, and sociocultural aspects of tourism. Sustainable tourism should (1) make optimal use of environmental resources that consti- tute a key element in tourism development; (2) respect the sociocultural authenticity of host communities, conserve their built and living cultural heritage and traditional values, and contribute to intercultural understanding
The Great Barrier Reef off the coast of Australia is one of the world heritage sites.
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and tolerance; and (3) ensure viable, long-term economic operations, providing socioeconomic benefits to all stakeholders that are fairly distributed, including stable employment and income-earning opportunities and social services to host communities, and contributing to poverty alleviation.
the two key factors are community-based tourism and quality tourism. Community-based tourism ensures that a majority of the benefits go to locals and not to outsiders. Quality tourism basically offers tourists good value for their money. this also serves as a protection of local natural resources and as an attraction to the kinds of tourists who will respect the local environment and society. all tourism should be sustainable, but the problem is that all too frequently it is not.
Let’s look around the world and see how the concept of sustainable tour- ism is applied. europe has been criticized for lack of sustainability, but apart from the congested areas of, for example, London, rome, and paris, there are plenty of destinations focusing on sustainable tourism. In particular, tours to explore the ancient ruins, architecture, and cultures of turkey and Greece are popular choices. also, the largely untouched nature and distinctive culture of the Scandinavian countries are growing in recognition and importance.
If you want to explore asia, join an ecotour to the snow-capped himalayas in Nepal or the sultry jungles of thailand. More and more places, such as Malaysia, thailand, and the philippines, are developing their tour- ism programs based on environmental conservation and protection. Looking for Shangri-La? the former hidden kingdom of the hunza Valley in pakistan has been opened for ecotourism, allowing a select number of tourists to see the 700-year-old Baltit Fort and village. the project has been internationally acclaimed as an outstanding example of sustainable tourism.
More adventures await you in africa, where the tourism industry, espe- cially ecotourism, has been growing tremendously over the past years. the most popular activity is the safari, which lets you get up close and per- sonal with exotic wildlife such as elephants, gazelles, lions, tigers, cheetahs, and countless others. Kenya is an important destination for safaris, as are tanzania, South africa, Botswana, and Malawi.
australia is home to an impressive variety of eco-friendly places. the Great Barrier reef is perhaps the most famous spot. the Leave No trace pro- gram, originally an american initiative, ensures that visitors to the reef act in a responsible manner. as a visitor to the Great Barrier reef, you can enjoy activities such as snorkeling, fishing, diving, hiking, camping, and much more with many certified eco-friendly companies. another area that is sub- ject to increasing interest and attention is the massive glaciers of antarctica.
these days, many regions of the world are designating their attractions as ecotourism sites. Vacationers are becoming more adventurous and are vis- iting remote, exotic places. they are participating in activities that hopefully affect nature, host communities, as well as themselves, in a positive manner.
From Yellowstone National park in the United States to the Mayan ruins of tikal in Guatemala, from the amazon river in Brazil to the vast safari lands of Kenya, from the snow-capped himalayas in Nepal to the sultry jungles of thailand, and from the Great Barrier reef in australia to the massive ice gla- ciers in antarctica, it seems that sustainable tourism is taking place in all cor- ners of the world. Quite frankly, some sort of ecotourism activity is happening in almost every country.
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Cultural, heritage, Nature, and Volunteer tourism tourism has developed to the point that there are now several special-interest areas. Culture and heritage are our legacies “from the past, what we live with today, and what we pass on to future generations. Our cultural and natural heritage are both irreplaceable sources of life and inspiration.”47 the United Nations Educational, Scientific and Cultural Organization (UNESCO) has designated a number of world heritage sites worthy of protection and pres- ervation because of the outstanding value to humanity of their natural and cultural heritage. there are 22 U.S. sites on the world heritage list, among them the Statue of Liberty and the Grand Canyon. Other places as unique and diverse as the wilds of east africa’s Serengeti, the pyramids of egypt, the Great Barrier reef in australia, and the many cathedrals of France are also on the list. What makes the concept of world heritage exceptional is its universal application. World heritage sites belong to all the peoples of the world, no matter where they call home.48
F O c u s O n t O u r i s M
Ann-Marie Weldon, johnson & Wales University, Charlotte, North Carolina
Think of the last vacation you took, or the one you are planning now. Where have you gone or where are you going? Is it somewhere exotic or is it close to home? How are you going to get there? Will you be flying, driving, or taking the train? Where are you going to stay? Are you going to a hotel, to a resort, or on a cruise ship? What will you do once you are there? Will you explore a new city, go to a museum, hang glide, visit a nature preserve, see a ball game, or visit an amusement park? What about the busi- ness traveler? Where are their business meetings? How about members of an association? Where is their convention or conference? Many people think tourism is just for the big cities or someplace they dream about visiting. As people travel, for either business or pleasure, they touch all the aspects of the hospitality industry. Tourism is what drives the need for hotels, resorts, cruise lines, restaurants, airlines, recreation, theme parks, and entertainment—in your hometown or around the world.
The UNWTO report Tourism: 2020 Vision forecasts “that international arrivals are expected to reach nearly 1.6 billion by the year 2020” and “of these worldwide arrivals in 2020, 1.2 billion will be intraregional.” This information may not mean anything to you right now, but each of the 1.6 billion people that are expected to travel will need a place to stay, eat, and experience something new. This indicates opportunities for new hotels, food and beverage outlets, places to hold meetings or conventions, and activities to keep guests busy. This will also provide employment potential in the traditional as well as the creative sense. We tend to forget the impact tourism has on our industry and what that means to our economy. Even in tough economic times, people still travel, though maybe not as far as they would otherwise. But they will need a way to get where they want to go and a place to stay, food to eat, and things to do once they get there.
Remember that each segment of the hospitality industry is interconnected with each other and depends on tourism—people traveling, experiencing, and exploring. Happy travels on your exciting new adventure in hospitality!
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Various examples of cultural tourism, heritage tourism, nature tourism, and volunteer tourism are as follows:
Cultural tourism. these trips are motivated by interest in cultural events such as feasts or festivals or activities such as theater, history, arts and sciences, museums, architecture, and religion. an example of cultural tourism is a visit to the polynesian Cultural Center in hawaii where you will find information on and examples of the lifestyles, songs, dance, costumes, and architecture of seven pacific islands: Fiji, New Zealand, the Marquesas Islands, Samoa, tahiti, tonga, and hawaii.
Heritage tourism. this type of tourism is motivated by historic preservation—a combination of the natural, cultural, and architectural environment. an example of heritage tourism is a visit to the alamo in texas, a former battlefield that attracts 3 million visitors a year.
Nature tourism. these trips are motivated by nature, such as a visit to a national park. In recent years, aging baby boomers have increasingly become interested in nature tourism and include nature attractions as a part of or a reason for their trip. (Notice that there are some similarities among these tourism areas of special interest.)
Culinary tourism. Gastronomic tours of europe and asia in places like Florence, Italy and Bangkok, thailand have an appeal to the foodies among us. If not the main reason for a trip, culinary adventures are cer- tainly a contributing reason, and the appeal is growing stronger with the advent of such programs as anthony Bourdain’s No reservations.
Volunteer tourism. Volunteer tourism provides travelers with an alternative to standard commercial vacation options. a major attraction for those who volunteer for overseas aid projects is the opportunity to travel safely and cheaply. While volunteers provide material benefits for the host community in exchange for shelter, both have the opportunity to experience each oth- er’s cultural differences. Dr. Stephen Wearing of the University of technology in Sidney, australia, and author of a book on volunteer tourism says:
The growth of eco-tourism, which grew out of the Green movement, proves people want an alternative, and volunteer tourism offers a similarly enriching experience.
While volunteers provide material benefits for the host community in exchange for shelter, both have the opportunity to experience each other’s cultural difference.49
Dr. Wearing believes volunteer tourism will rival the popularity of ecotourism this decade.
trends in tourism and travel Courtesy of Dr. Greg Dunn, Senior Lecturer & Managing Director, University of Florida, eric Friedheim tourism Institute
• Millennials or Matures. tourism executives are faced with the challenge of deciding which market segment is more important: the Millennials or the Matures. Studies have shown that Millennials are far more interested
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in international travel and are more likely to travel for leisure than non- Millennials. they are also twice as likely to use their mobile phones to share travel photos and experiences to friends on social media, blogs, as well as post travel reviews. the Matures target group, however, is estimated between 1.3 and 1.6 billion worldwide and 59 percent are aged 55 and over. this group is known to love to travel and most have the time to travel and explore new places. While both segments offer travel and tourism providers great opportunities, each differs in their attitudes, preferences, and intentions toward travel.
• Green Tourism. Green tourism will continue to develop in response to consumer interest in patronizing tourism organizations who adopt and manifest sustainable practices with the idea of being green and stay- ing green. Consumers are more interested now on the environmental impact of the industry. an increasing number of destinations and travel supplier web sites highlight their positions and practices of sustain- able tourism. tourism currently produces 5 percent of global emissions through transportation and service accommodations. as a result, green initiatives are constantly increasing in the tourism sector.50
• Travel Experiences. Many travelers nowadays are looking for real travel experiences that enrich their knowledge, understanding, and culture. More consumers are seeking travel experiences that require some sort of mission or learning opportunity such as voluntourism, language tourism, culinary tourism, and music tourism. Global athletic events and spectator sports are drivers of economic activity and tourism, and as a result are constantly on the rise.
• Destination Management Companies. With the tourism industry being so competitive, destination management companies and marketers will continue to find ways to compete with other destination brands. Focus- ing on service, professionalism, and pride of place are three ways the industry has drawn toward competition.
• Marketing Strategies. tourism destinations require an integrated market- ing strategy to include online and traditional media including interactive maps and brochures that can be seen on mobile apps or the brand’s web site, along with product development in changing a want to a need for the customer.
• Unique Experiences. the travel industry will continue to find ways to personalize and customize the visitor experience as consumers look for more relevant and unique experiences. Marketers will drive customer engagement and influence in the inspiration, research, planning and booking, and postpurchase phases of consumer buying behavior.
• Technology. as technology keeps becoming more affordable and acces- sible, and consumers embrace the power of video, there’s more support for tourism advertising spend around video, and there are many forms to choose from, such as micro video on Instagram and Vine to more tra- ditional longer-form videos.
• Social Media. tourism organizations will continue to profile and segment their target audiences. there is a wealth of data that can make market- ers more efficient in developing new audiences or segmenting deeper targets within their current audiences. It will be required knowledge to
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be efficient and fiscally responsible in future social and online ad cam- paigns. For smaller destinations, a key will be working with bloggers to help those with limited budgets spread their message. and, if possible, working with niche bloggers would be even better for these destinations.
• Near Field Communications (NFC). tourism destinations and organizations will embrace NFC technology in combination with mobile apps to deliver a more immersive experience in the destination. NFC is a set of ideas and technology that enables smartphones and other devices to establish radio communication with each other by touching them together or bringing them into proximity. Being able to arrive at a destination waypoint where the mobile phone in your pocket can interact with the push of a single button and start a multitude of interfaces for the consumer in your city can be indispensable. With NFC chips now in all iphone 6 devices, and the fact that android phones have already had them for some time, the percentage of phones capable of this type of technology will only increase; 90 percent of phones by 2016 will have this technology built in. proximity and inter- action can launch a host of things, such as informative videos, interactive maps, and spoken narratives.
• Destination Marketing Organizations (DMOs). DMOs will have to learn to be more personable and time-sensitive across all facets of the organization—sales, service, and marketing. Being able to peel back the layers of the destination brand to be more authentic and connect with consumers in a personal and emotional way will be key. In the destina- tion meeting environment, a key success factor is personalized service over sales, meaning that DMOs will have to find a way to make meetings and groups have successful shows and move beyond the discussion over rates, dates, and space. Meeting planners will rely on DMOs more than ever to make their shows and attendee experiences a success, starting with the initial planning phases once that group is booked.
• Alternative Lodging Sites. hospitality and travel organizations will be chal- lenged by the emerging sharing economy based businesses such as alter- native lodging and transportation options (e.g., airbnb and Uber). how DMOs work with consumers and these companies to ensure that visitor experiences are safe and excellent and appropriate revenues are calcu- lated and taxes collected is the foremost challenge. By 2017, the mobile device outlet is expected to include more than 30 percent of online con- sumer travel sales.51 Group specials on sites such as Groupon and Living Social have allowed travelers to make travel arrangements in a more cost efficient way. Group deals allow the industry to offer a service for a limited time at a certain price. the bulk selling and purchasing concept is becoming increasingly popular for both the seller and the consumer.
• Record Numbers. International tourist travel will continue to rise. throughout 2013, international tourist arrivals increased by approxi- mately 5 percent to reach a record high 747 million worldwide, which amounts to 38 million more than in the same time period of 2012.52 Online travel sales, which increased 8.4 percent in 2012, reaching $524 billion globally, are expected to continue to increase.53 Culinary tour- ism has seen an increase in interest with 27 million americans traveling for culinary purposes in the last three years. american culinary tourists have spent nearly $12 billion on culinary activities while traveling.54
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422 Part iii tourism, recreation, attractions, Clubs, and Gaming
Congratulations! You have just been appointed to your city’s council. You discover that a hot topic soon to be presented to the council is the construction of a convention center. Your initial research shows that several mid-sized cities are considering the convention center as a way to increase economic activity, including job creation. The challenge these cities face is how to finance the convention center; projected costs are $100 million. Voters may resist a ballot to increase local taxes (either property or sales), but there is still the TOT—that is, taxes paid by people staying in local hotels—to consider. However, that tax is already earmarked for various local charities, and as we all know, good politicians want to be reelected; so voting against several worthy causes would not be popular. How can the center be financed and built? The city could float a bond on the market or could raise the TOT, but that might dissuade some groups from coming to your city because other cities have lower TOTs.
Discussion Questions 1. What would you do? 2. What information do you need in order to decide whether to support or oppose the
convention center?
c a s e s t u D Y
Summary
1. tourism can be defined as the idea of attract- ing, accommodating, and pleasing groups or individuals traveling for pleasure or business. It is categorized by geography, ownership, function, industry, and travel motive.
2. tourism involves international interaction and, therefore, government regulation. Sev- eral organizations, such as the World tourism Organization, promote environmental protec- tion, tourism development, immigration, and cultural and social aspects of tourism.
3. tourism is a collection of industries that, when combined, form the world’s largest in- dustry and employer. It affects other industry sectors, such as public transportation, foodser- vice, lodging, entertainment, and recreation. In addition, tourism produces secondary impacts on businesses that are affected indi- rectly, which is known as the multiplier effect.
4. travel agencies, tour operators, travel managers, wholesalers, national offices of tourism, and destination management com-
panies serve as middlepersons between a country and its visitors.
5. physical needs, the desire to experience other cultures, and an interest in meeting new people are some of the motives of travelers. Because of flexible work hours, early retirement, and the easy accessibility of traveling, tourism is constantly growing.
6. From a social and cultural perspective, tourism can further international under- standing and economically improve poorer countries. however, it can also disturb a culture by presenting it with mass tourism and the destruction of natural sites. a trend in avoiding tourism pollution is ecotourism.
7. Business travel has increased in recent years as a result of the growth of conven- tion centers in several cities. as a result, business travelers have given a boost to hotels, restaurants, and auto rental companies. the number of female business travelers is rising as well.
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chapter 9 tourism 423
Key Words and Concepts
business travel convention and visitors bureaus (CVBs) cultural tourism ecotourism hub-and-spoke system interdependency
load factor multiplier effect pacific area travel association (pata) sustainable tourism tourism
United Nations educational, Scientific and Cultural Organization (UNeSCO) vacation package volunteer tourism World tourism Organization (UNWtO)
8. ecotourism is tourism with a conscience, or responsible travel to natural areas that conserve the environment and improve the well being of the local people.
9. the concept of sustainable tourism places a broad-based obligation on society, espe- cially those involved with tourism policy, planning, and development.
review Questions
1. Give a broad definition of tourism and explain why people are motivated to travel.
2. explain the objectives of the UNWtO. What are the characteristics of the travel and tourism industry according to the UNWtO and the WttC?
3. Choose a career in the tourism business and give a brief overview of what your responsibilities would be.
4. Discuss the positive and negative impacts that tourism can have on a country in rela- tion to tourism pollution and ecotourism.
Internet exercises
1. Organization: World Tourism Organiza- tion (UNWTO) Summary: the UNWtO is the only intergov- ernmental organization that serves in the field of travel and tourism and is a global forum for tourism policy and issues. It has about 156 member countries and six territo- ries. Its mission is to promote and develop tourism as a significant means of fostering international peace and understanding, eco- nomic development, and international trade.
(a) how much is spent on international tourism?
(b) What does Tourism Toward 2030 Vision predict?
2. Organization: UNESCO World Heritage Committee Summary: the UNeSCO World heritage Com- mittee is responsible for allocating financial assistance to areas of cultural or environmental importance. this committee makes the final decision on whether a property is added to the list of World heritage Sites.
(a) What is your opinion of the Commit- tee’s criteria for selecting a property as a UNeSCO World heritage Site?
apply Your Knowledge
1. analyze your family’s and friends’ recent or upcoming travel plans and compare them with the examples in the text for reasons why people travel.
2. Choose a destination and describe how you would incorporate the principles of eco- tourism there.
3. how would you promote tourism in an area that is just starting to develop?
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424 Part iii tourism, recreation, attractions, Clubs, and Gaming
Suggested activities
1. plan a trip to another country for 10 days. Describe the following:
(a) three different transportation options (b) three different accommodation options (c) Four different types of activities
Break down the prices of all of these and provide the total.
2. Find a destination that offers similar activities but is not well known. Compare the prices.
endnotes 1. jennifer Blanke and thea Chiesa, the travel &
tourism Competitiveness report 2011, World Economic Forum, http://www.weforum.org. Search for “travel & tourism 2011” to view the report ( accessed November 13, 2011).
2. World tourism Organization (UNWtO), “In Focus: transport,” UNTO World Tourism Barometer 7 ( june 2009), 42–46.
3. World tourism Organization (UNWtO), Press Release: Healthy Growth of International Tourism in First Half of 2011, September 7, 2011, http:// media.unwto.org. Search for “healthy growth of international tourism in first half of 2011” ( accessed November 14, 2011).
4. World travel and tourism Council, Economic Impact of Travel & Tourism 2014, http://www.wttc .org. Search for “economic impact 2014” to view the article (accessed july 29, 2014).
5. Charles r. Goeldner and j. r. Brent ritchie, Tourism: Principles and Practices, 9th ed. (New York: john Wiley and Sons, 2003), 42–48.
6. Goeldner and ritchie, Tourism: Principles and Practices, 43.
7. Ibid. 8. Donald e. Lundberg, The Tourist Business, 6th ed.
(New York: Van Nostrand reinhold, 1990), 16. 9. Lundberg, The Tourist Business, 17.
10. N. S. Gill, “101 on the ancient Olympic Games,” About.com, www.about.com. Search for “101 on the ancient Olympic Games” to view this article (accessed april 6, 2011).
11. travelChinaGuide, Marco Polo, www.travelchina guide.com. Click on Silk road, click on history, click on Famous travellers, and then click on Marco polo (accessed april 6, 2011).
12. Ibid. 13. Federal aviation administration, Air Traffic: NextGen
Briefing, http://www.faa.gov. Click on air traffic and then NextGen (accessed November 14, 2011).
14. “Boeing Unveils ambitious 787 Dreamliner passen- ger jet,” Philippine Star, july 10, 2007, B8.
15. Ibid.
16. Salary.com, Salary Wizard: Captain/Pilot in Command (Large Jet), http://www.salary.com. Go to Salary and click on Browse Salaries by Category, click on aviation and airlines, and choose Captain/pilot in Command (accessed November 14, 2011).
17. Salary.com. Salary Wizard: Flight Attendant, http://www.salary.com. Go to Salary and click on Browse Salaries by Category, click on aviation and airlines, and choose Flight attendant (accessed july 29, 2014).
18. United States Department of transportation, Office of the assistant Secretary for research and tech- nology, U.S. Air Carrier Traffic Statistics through February 2015, http://www.rita.dot.gov/. Go to programs and click on Bureau of transportation Statistics, and then search for “U.S. air Carrier traffic Statistics” (accessed april 13, 2015).
19. princess Cruises, Diamond Princess, http://www .princess.com. Click on Cruise Ships & Deck plans, and then click on Diamond princess (accessed November 14, 2011); Dori Saltzman, “Diamond princess Overview,” Cruise Critic, www. cruisecritic .com. Search for “Diamond princess review” ( accessed November 14, 2011).
20. “Cruise Ship Industry Statistics–Statistic Brain,” 2014 Statistic Brain Research Institute, publishing as Statistic Brain, research Date: March 3, 2015, http://www.statisticbrain.com/cruise-ship-industry- statistics/ (accessed May 17, 2015).
21. Ibid. 22. “Maritime Industry Background,” Cruise Lines Inter-
national Association, www.cruising.org. Click on enter under regulatory, click on Industry resources, and then click on Maritime Industry Background to view this page (accessed May 28, 2015).
23. “Understanding tourism: Basic Glossary,” World Tourism Organization UNWTO, http://www2 . unwto.org/. Search for “basic glossary” to view glossary terms (accessed November 14, 2011).
24. “Background of the Global Code of ethics for tourism,” World Tourism Organization UNWTO,
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http://www2.unwto.org. Go to What We Do and click on ethics and Social responsibility pro- gramme and then go to Global Code of ethics for tourism and click on Background Information to access this page (accessed November 13, 2011).
25. “Who we are,” World Tourism Organization UNWTO, http://www2.unwto.org. Go to about and click on about UNWtO (accessed November 24, 2013).
26. World travel and tourism Council, Travel & Tourism: Economic Impact 2015 World, http:// www .wttc.org. Go to research and click on economic research, click on regional reports, click on World, and then click on View Full report (accessed july 29, 2014).
27. “Who we are,” World Tourism Organization UNWTO, http://www2.unwto.org. Go to about and click on about UNWtO (accessed November 24, 2013).
28. World travel and tourism Council, Travel & Tourism: Economic Impact 2015 World, http:// www.wttc.org. Go to research and click on economic research, click on regional reports, click on World, and then click on View Full report (accessed july 29, 2014).
29. World tourism Organization UNWtO, Tourism towards 2030: Global Overview, http://www2 . unwto.org (October 10, 2011). Click on Media, search for “2030 Korea” under the UNWtO archive tab to view this report (accessed May 15, 2015).
30. Ibid. 31. Op Cit. 32. World travel and tourism Council, Travel &
Tourism: Economic Impact 2015 World, http:// www .wttc.org. Go to research and click on economic research, click on regional reports, click on World, and then click on View Full report (accessed july 29, 2014).
33. Ibid. 34. adapted from http://dtxtq4w60xqpw.cloudfront
.net/sites/all/files/pdf/unwto_receipts_1995_2012_ graph.pdf.
35. U.S. travel association, U.S. Travel Answer Sheet, http://www.ustravel.org. Click on U.S. travel answer Sheet to view this report (accessed May 28, 2015).
36. Ibid. 37. personal conversation with Dr. Greg a. Dunn, Vice
president, Y partnership, april 12, 2011. 38. “asia pacific travel market to reach almost US $352
billion in 2013,” ITB Asia, October 23, 2013, http:// www.itb-asia.com. Go to press and click on press releases and News to locate this article (accessed july 29, 2014).
39. personal correspondence with Karen Smith and Claudia Green, june 28, 2005.
40. Nta, Home Page, http://ntaonline.com (accessed November 14, 2011).
41. personal correspondence with edward Inskeep, june 4, 2007.
42. personal conversation with Dr. Greg a. Dunn, September 14, 2007.
43. Matt Stabile, “how Many americans have a passport?” The Expeditioner (blog), February 9, 2014, http://www.theexpeditioner.com/2010/02/17/ how-many-americans-have-a-passport-2 (accessed November 24, 2014).
44. the International ecotourism Society, What Is Ecotourism? www.ecotourism.org. Go to about and click on What is ecotourism? (accessed November 14, 2014).
45. Ibid. 46. World tourism Organization UNWtO, Sustainable
Development of Tourism: Definition, http://www2 .unwto.org. Go to What We Do and click on Sustainable Development of tourism programme, and then click on Definition (accessed May 15, 2015).
47. United Nations educational, Scientific and Cultural Organization, World heritage Convention, World Heritage Centre, http://whc.unesco.org. Click on about World heritage and then click on about World heritage (accessed November 16, 2014).
48. Ibid. 49. “Volunteer tourism Beckons,” University of tech-
nology, Sydney, january 1, 2002, http://www.uts .edu.au. Search for “Volunteer tourism Beckons” to view this article (accessed april 18, 2011).
50. Chris Fair, “2014 trends in travel and tourism,” Slideshare.net, November 12, 2013, http://www .slideshare.net. Search for “2014 trends in travel and tourism” to view this content (accessed january 4, 2015).
51. World travel Market, “WtM Global trends report,” Hospitality Net, November 5, 2013, http://www .hospitalitynet.org. Search for “World travel Market Global trends report 2013” to view this report ( accessed january 4, 2015).
52. World tourism Organization UNWtO, Inter national Tourism on the Rise Boosted by Strong Performance in Europe, October 17, 2013, http://www2.unwto. org. Search for “international tourism on the rise” to view this article (accessed May 15, 2015).
53. euromonitor International, “travel and tourism in a Fast-Changing World: New trends for 2014,” Marketwired, November 4, 2013, http://www . marketwired.com. Search for “travel and tourism in a Fast-Changing World: New trends for 2014” to view this article (accessed january 4, 2015).
54. Chris Fair, “2014 trends in travel and tourism,” Slideshare.net, November 12, 2013, http://www .slideshare.net. Search for “2014 trends in travel and tourism” to view this content (accessed january 4, 2015).
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