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Principles, Practices, Philosophies

Tourism

TWELFTH EDITION

Charles R. Goeldner

J. R. Brent Ritchie

Tourism in Perspective

CHAPTER

Learning Objectives

Understand what tourism is and its many definitions.

Learn the components of tourism and tourism management.

Examine the various approaches to studying tourism.

Appreciate how important this industry is to the economy of the world and of many countries.

Know the benefits and costs of tourism.

Student Exercise

Take 8 minutes to complete the Leisure and Travel Student questionnaire

Learn more about…

you and your course goals

your career goals

your travel experiences

Networking Practice:

Find another 3 students and take 5 minutes to share your answers from questions 5-9

Travel Motivations

In this course, we will look at how understanding these motivations will help businesses and destinations meet and participate in the travelers desired experiences.

Why do people travel?

Why do you travel?

Where do we travel?

Who do we travel with?

Around the world of Tourism

In the following video think about the following:

What do humans have in common?

What differences do humans have amongst each other?

What is human’s general nature?

What motivates humans to travel?

Around the world of Tourism

Definition of Tourism

Before we define tourism, we must take into account the broader perspective

Tourism encompasses four different perspectives

The tourist & tourism

The businesses providing tourist goods and services

The government of the host community or area

The host community (the “locals”)

Definition of Tourism

How do you define tourism?

Tourism may be defined as the processes, activities, and outcomes arising from the relationships and the interactions among

tourists,

tourism suppliers,

host governments,

host communities, and

surrounding environments…

…that are involved in the attracting and hosting of visitors.

Definition of Tourism

Tourism is a composite of activities, services and industries that deliver the travel experience.

Including:

Transportation, accommodations, eating and drinking establishments, shops, entertainment, activity facilities, and other hospitality services.

The entire world industry of travel, hotels, transportation and all other components (e.g., promotion) that serves the needs and wants of travelers.

What is the travel “experience”?

Superbowl Impact

Economic impact of a sporting event is largely about

how many visitors do you attract to the region,

how much do these visitors spend above and beyond the normal flow of visitor spending historically experienced during that same time of year for that region, and

is their spending retained within the local economy after the event (as opposed to somehow leaking out of the community).

Superbowl Impact

In San Francisco many homeless are displaced for Super Bowl City, a multi-stage event space on the city’s Embarcadero. Over 1 million visitors are expected to attend the events there.

$5 million city-government total spending on Super Bowl events

San Francisco Moscone Convention Center hosts both the media center for over 5,500 credentialed journalists and the NFL Experience,

Super Bowls mainly simulate temporary, lower-paying jobs in the hospitality and tourism sector

Superbowl Impact

Super Bowl 50 is expected to be watched on CBS by more than 114 million viewers, the number who watched last year’s Super Bowl.

Ads go for about $5 million for a 30-second spot.

As 110 million Americans enjoyed Super Bowl 50 today — 75,000 in person at Levi’s Stadium in Santa Clara, the rest via CBS television

The economic impact of Super Bowl XLIX in 2015 was between $30 million and $130 million in Phoenix metro area.

Predictions for this year is as high as $800 million for the bay area

The evidence “does not suggest that the Super Bowl increases economic activity by an amount that would justify the hundreds of millions of dollars that stadiums typically cost.” (Source: Robert A. Baade of Lake Forest College and Victor Matheson of the College of the Holy Cross)

Question: Was it worth the city spending $5 million to host the superbowl?

UNWTO Definition of Tourism

The World Tourism Organization (UNWTO) is the United Nations agency responsible for the promotion of responsible, sustainable and universally accessible tourism.

UNWTO Definition: Tourism comprises the activities of persons traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes.

Source: UNWTO

Tourism Terms

International tourism:

Inbound tourism: Visits to a country by nonresidents

Outbound tourism: Visits by residents of a country to another country

Internal tourism:

Visits by residents and nonresidents of the country of reference. Travel within their own country.

Domestic tourism:

Visits by residents of a country to their own country

National tourism:

Internal tourism plus outbound tourism (the resident tourism market for travel agents, airlines and other suppliers)

Visitor (International)

What is a tourist or visitor?

A (international) “visitor” is defined as: those persons who travel to a country other than that in which they have their usual residence but outside their usual environment for a period not exceeding 12 months and whose main purpose of visit is other than the exercise of an activity remunerated from within the place visited.

Visitor (International)

All visitors – two categories

Same-day visitors (excursionist):

Visitors who do not spend the night in a collective or private accommodation in the country visited (e.g., cruise ship passenger on 4-hour excursion)

Tourists:

Visitors who stay in the country visited for at least one night (e.g., visitor on two-week vacation)

Purpose of travel

Many purposes for a visit (Ch09):

Pleasure (Leisure)

F.I.T. - Foreign independent tour. Now generally used to indicate any independent travel, domestic or international, that does not involve a package tour.

Business

Family reasons

Health

(1) Tourists in international technical definitions.

(2) Excursionists in international technical definitions.

(3) Travelers whose trips are shorter than those that qualify for travel and tourism; e.g., under 50 miles (80 km) from home.

(4) Students traveling between home and school only -- other travel of students is within scope of travel and tourism.

(5) All persons moving to a new place of residence including all one-way travelers, such as emigrants, immigrants, refugees, domestic migrants, and nomads.

Classification of Travelers

(1) Tourists in international technical definitions.

(2) Excursionists in international technical definitions.

(3) Travelers whose trips are shorter than those that qualify for travel and tourism; e.g., under 50 miles (80 km) from home.

(4) Students traveling between home and school only -- other travel of students is within scope of travel and tourism.

(5) All persons moving to a new place of residence including all one-way travelers, such as emigrants, immigrants, refugees, domestic migrants, and nomads.

The Tourism Phenomenon: Components of tourism and tourism management

NATURAL RESOURCES AND ENVIRONMENT

CLIMATE

PHSYIOGRAPHY

PEOPLE

Industry -- Residents -- Visitors

BUILT ENVIRONMENT

INFORMATION

SUPERSTRUCTURE

INFRASTRUCTURE

CULTURE

TECHNOLOGY

GOVERNANCE

OPERATING SECTORS OF THE TOURISM INDUSTRY

Travel Trade

Sector

Accommodation

Sector

Events Sector

Transportation

Sector

Adventure & Outdoor

Recreation Sector

Food Services

Sector

Attractions Sector

Entertainment

Sector

Tourism

Services

Catalyst, Planning, Development, Promotion, and Management Organizations

Private Sector Components

Public Sector Components

World & National Travel Industry

Associations

World & National

Government

Tourism Offices

State and Provincial

Government

Tourism Offices

Local & City Government

Tourism

Departments

Local & Regional

Tourism Associations/

Convention & Visitor

Bureaus

State and Provincial

Travel Industry

Associations

SPIRIT OF HOSPITALITY

Philosophy

Policy

Vision

Strategy

Planning

Development

Marketing

Stewardship

Behaviors

Experiences

Monitoring

Evaluation

Organization

Research

Visitation

Impacts

THE PROCESSES, ACTIVITIES, AND OUTCOMES OF TOURISM

CAREERS IN TOURISM

THE

TOURIST

NATURAL RESOURCES AND ENVIRONMENT

CLIMATE

PHSYIOGRAPHY

PEOPLE

Industry -- Residents -- Visitors

BUILT ENVIRONMENT

INFORMATION

SUPERSTRUCTURE

INFRASTRUCTURE

CULTURE

TECHNOLOGY

GOVERNANCE

OPERATING SECTORS OF THE TOURISM INDUSTRY

Travel Trade

Sector

Accommodation

Sector

Events Sector

Transportation

Sector

Adventure & Outdoor

Recreation Sector

Food Services

Sector

Attractions Sector

Entertainment

Sector

Tourism

Services

Catalyst, Planning, Development, Promotion, and Management Organizations

Private Sector Components

Public Sector Components

World & National Travel Industry

Associations

World & National

Government

Tourism Offices

State and Provincial

Government

Tourism Offices

Local & City Government

Tourism

Departments

Local & Regional

Tourism Associations/

Convention & Visitor

Bureaus

State and Provincial

Travel Industry

Associations

SPIRIT OF HOSPITALITY

Philosophy

Policy

Vision

Strategy

Planning

Development

Marketing

Stewardship

Behaviors

Experiences

Monitoring

Evaluation

Organization

Research

Visitation

Impacts

THE PROCESSES, ACTIVITIES, AND OUTCOMES OF TOURISM

CAREERS IN TOURISM

THE

TOURIST

The Tourism Phenomenon: Components of tourism and tourism management

NATURAL RESOURCES AND ENVIRONMENT

CLIMATE

PHSYIOGRAPHY

PEOPLE

Industry -- Residents -- Visitors

BUILT ENVIRONMENT

INFORMATION

SUPERSTRUCTURE

INFRASTRUCTURE

CULTURE

TECHNOLOGY

GOVERNANCE

OPERATING SECTORS OF THE TOURISM INDUSTRY

Travel Trade

Sector

Accommodation

Sector

Events Sector

Transportation

Sector

Adventure & Outdoor

Recreation Sector

Food Services

Sector

Attractions Sector

Entertainment

Sector

Tourism

Services

Catalyst, Planning, Development, Promotion, and Management Organizations

Private Sector Components

Public Sector Components

World & National Travel Industry

Associations

World & National

Government

Tourism Offices

State and Provincial

Government

Tourism Offices

Local & City Government

Tourism

Departments

Local & Regional

Tourism Associations/

Convention & Visitor

Bureaus

State and Provincial

Travel Industry

Associations

SPIRIT OF HOSPITALITY

Philosophy

Policy

Vision

Strategy

Planning

Development

Marketing

Stewardship

Behaviors

Experiences

Monitoring

Evaluation

Organization

Research

Visitation

Impacts

THE PROCESSES, ACTIVITIES, AND OUTCOMES OF TOURISM

CAREERS IN TOURISM

THE

TOURIST

The Tourist

Understand motivations

Understanding destination selection

Mode of travel

Choice sets of activities

The Tourism Phenomenon: Components of tourism and tourism management

NATURAL RESOURCES AND ENVIRONMENT

CLIMATE

PHSYIOGRAPHY

PEOPLE

Industry -- Residents -- Visitors

BUILT ENVIRONMENT

INFORMATION

SUPERSTRUCTURE

INFRASTRUCTURE

CULTURE

TECHNOLOGY

GOVERNANCE

OPERATING SECTORS OF THE TOURISM INDUSTRY

Travel Trade

Sector

Accommodation

Sector

Events Sector

Transportation

Sector

Adventure & Outdoor

Recreation Sector

Food Services

Sector

Attractions Sector

Entertainment

Sector

Tourism

Services

Catalyst, Planning, Development, Promotion, and Management Organizations

Private Sector Components

Public Sector Components

World & National Travel Industry

Associations

World & National

Government

Tourism Offices

State and Provincial

Government

Tourism Offices

Local & City Government

Tourism

Departments

Local & Regional

Tourism Associations/

Convention & Visitor

Bureaus

State and Provincial

Travel Industry

Associations

SPIRIT OF HOSPITALITY

Philosophy

Policy

Vision

Strategy

Planning

Development

Marketing

Stewardship

Behaviors

Experiences

Monitoring

Evaluation

Organization

Research

Visitation

Impacts

THE PROCESSES, ACTIVITIES, AND OUTCOMES OF TOURISM

CAREERS IN TOURISM

THE

TOURIST

Natural Resources:

Physiography

Climate

People

Industry

Residents

Visitors

The Tourism Phenomenon: Components of tourism and tourism management

NATURAL RESOURCES AND ENVIRONMENT

CLIMATE

PHSYIOGRAPHY

PEOPLE

Industry -- Residents -- Visitors

BUILT ENVIRONMENT

INFORMATION

SUPERSTRUCTURE

INFRASTRUCTURE

CULTURE

TECHNOLOGY

GOVERNANCE

OPERATING SECTORS OF THE TOURISM INDUSTRY

Travel Trade

Sector

Accommodation

Sector

Events Sector

Transportation

Sector

Adventure & Outdoor

Recreation Sector

Food Services

Sector

Attractions Sector

Entertainment

Sector

Tourism

Services

Catalyst, Planning, Development, Promotion, and Management Organizations

Private Sector Components

Public Sector Components

World & National Travel Industry

Associations

World & National

Government

Tourism Offices

State and Provincial

Government

Tourism Offices

Local & City Government

Tourism

Departments

Local & Regional

Tourism Associations/

Convention & Visitor

Bureaus

State and Provincial

Travel Industry

Associations

SPIRIT OF HOSPITALITY

Philosophy

Policy

Vision

Strategy

Planning

Development

Marketing

Stewardship

Behaviors

Experiences

Monitoring

Evaluation

Organization

Research

Visitation

Impacts

THE PROCESSES, ACTIVITIES, AND OUTCOMES OF TOURISM

CAREERS IN TOURISM

THE

TOURIST

Built Environment:

Culture

Infrastructure

Tourism Superstructure

Technology

Information

Governance

The Tourism Phenomenon: Components of tourism and tourism management

NATURAL RESOURCES AND ENVIRONMENT

CLIMATE

PHSYIOGRAPHY

PEOPLE

Industry -- Residents -- Visitors

BUILT ENVIRONMENT

INFORMATION

SUPERSTRUCTURE

INFRASTRUCTURE

CULTURE

TECHNOLOGY

GOVERNANCE

OPERATING SECTORS OF THE TOURISM INDUSTRY

Travel Trade

Sector

Accommodation

Sector

Events Sector

Transportation

Sector

Adventure & Outdoor

Recreation Sector

Food Services

Sector

Attractions Sector

Entertainment

Sector

Tourism

Services

Catalyst, Planning, Development, Promotion, and Management Organizations

Private Sector Components

Public Sector Components

World & National Travel Industry

Associations

World & National

Government

Tourism Offices

State and Provincial

Government

Tourism Offices

Local & City Government

Tourism

Departments

Local & Regional

Tourism Associations/

Convention & Visitor

Bureaus

State and Provincial

Travel Industry

Associations

SPIRIT OF HOSPITALITY

Philosophy

Policy

Vision

Strategy

Planning

Development

Marketing

Stewardship

Behaviors

Experiences

Monitoring

Evaluation

Organization

Research

Visitation

Impacts

THE PROCESSES, ACTIVITIES, AND OUTCOMES OF TOURISM

CAREERS IN TOURISM

THE

TOURIST

Operating Sectors:

Transportation

Accommodation

Food Services

Attractions

Events

Adventure/outdoor recreation (ecotourism)

Entertainment

Trade sector & tourism services

Travel trade

The Tourism Phenomenon: Components of tourism and tourism management

NATURAL RESOURCES AND ENVIRONMENT

CLIMATE

PHSYIOGRAPHY

PEOPLE

Industry -- Residents -- Visitors

BUILT ENVIRONMENT

INFORMATION

SUPERSTRUCTURE

INFRASTRUCTURE

CULTURE

TECHNOLOGY

GOVERNANCE

OPERATING SECTORS OF THE TOURISM INDUSTRY

Travel Trade

Sector

Accommodation

Sector

Events Sector

Transportation

Sector

Adventure & Outdoor

Recreation Sector

Food Services

Sector

Attractions Sector

Entertainment

Sector

Tourism

Services

Catalyst, Planning, Development, Promotion, and Management Organizations

Private Sector Components

Public Sector Components

World & National Travel Industry

Associations

World & National

Government

Tourism Offices

State and Provincial

Government

Tourism Offices

Local & City Government

Tourism

Departments

Local & Regional

Tourism Associations/

Convention & Visitor

Bureaus

State and Provincial

Travel Industry

Associations

SPIRIT OF HOSPITALITY

Philosophy

Policy

Vision

Strategy

Planning

Development

Marketing

Stewardship

Behaviors

Experiences

Monitoring

Evaluation

Organization

Research

Visitation

Impacts

THE PROCESSES, ACTIVITIES, AND OUTCOMES OF TOURISM

CAREERS IN TOURISM

THE

TOURIST

Spirit of Hospitality

High quality memorable experiences

Warm spirit of hospitality

Disciplinary Inputs to the tourism field

Source: WTTC - http://dtxtq4w60xqpw.cloudfront.net/sites/all/files/pdf/unwto_highlights14_en_hr_0.pdf

TRAVEL AND TOURISM - WORLD’S LARGEST INDUSTRY?

9% of GDP – direct, indirect and induced impact

1 in 11 jobs

$1.4 trillion in exports

6% of the world’s exports

Growth:

1950 – 25 million tourists

2013 – 1.1 trillion tourists

5 to 6 billion domestic tourists

1.8 billion international tourists forecast for 2030

Source: WTTC

Benchmark Travel and Tourism on the USA: GDP

TOURISM: WHAT IT MEANS TO THE U.S. ECONOMY

Travel spending in U.S. is projected to total $738.5 billion in 2010 (int’l & domestic spending).

Tourism is the nation’s third largest retail industry.

Tourism is the nation’s largest service export.

Over 7.4 million Americans employed directly in the travel industry, 9 million indirectly for a total of over 16 million jobs.

Tourism provides more than 684,000 executive level positions in each year.

Travel industry provides a disproportionate number of jobs for the traditionally disadvantaged.

Source: U.S. Travel Association

Travel and Tourism Can Grow by 4% per year

Travel and Tourism will continue to expand faster than the economy as a whole and faster than comparable industries.

By 2021 Travel & Tourism is expected to account for:

$11.9 trillion

323.8 million employees

Growth depends on enlightened government policy

Source: WTTC

WORLD’S TOP 5 TOURISM DESTINATIONS (arrivals) 2013

Source: UNWTO

International Tourist Arrivals

(Millions)

Rank	Country	2013	2012	%Change
1	France	84.7	83.0	2.0
2	USA	69.8	66.7	4.7
3	Spain	60.7	57.5	5.6
4	China	55.7	57.7	-3.5
5	Italy	47.7	46.4	2.9
6	Turkey	37.8	35.7	5.9

What are the World’s Top 5 Tourism Destinations (arrivals) in 2013?

Tourism Terms-Remember?

International tourism:

those persons who travel to a country other than that in which they have their usual residence but outside their usual environment for a period not exceeding 12 months and whose main purpose of visit is other than the exercise of an activity remunerated from within the place visited.

Inbound tourism:

Visits to a country by nonresidents

Outbound tourism:

Visits by residents of a country to another country

Internal tourism:

Visits by residents and nonresidents of the country of reference. Travel within their own country.

Domestic tourism:

Visits by residents of a country to their own country

National tourism:

Internal tourism plus outbound tourism (the resident tourism market for travel agents, airlines and other suppliers)

WORLD’S TOP 5 TOURISM DESTINATIONS 2013

Source: UNWTO

WORLD’S TOP 5 TOURISM EARNERS 2013

Tourism – the good and the bad

Positive Benefits

Negative Effects

Economic

Social

Cultural

Let review both the positive and negative of tourism

Benefits of Tourism - Economic

Provides employment opportunities

Generates foreign exchange

Increases Incomes

Increases GNP

Can be built on existing infrastructure

Develops an infrastructure that will also help stimulate local commerce and industry

Can be developed with local products and resources

Diversifies the economy

Tends to be compatible with other economic activities

Spreads development

High multiplier impact

Increases governmental revenues

Benefits of Tourism - Social

Broadens educational and cultural horizons

Improves quality of life - higher incomes and improved standards of living

Justifies environmental protection and improvement

Provides tourist and recreational facilities that may be used by a local population

Benefits of Tourism - Cultural

Reinforces preservation of heritage and tradition

Visitor interest in local culture provides employment for artists, musicians and other performing artists enhancing cultural heritage

Breaks down language barriers, sociocultural barriers, class barriers, racial barriers, political barriers, and religious barriers

Creates a favorable worldwide image for a destination

Promotes a global community

Promotes international understanding and peace

Disadvantages of Tourism - Economic

Develops excess demand

Results in high leakage

Creates difficulties of seasonality

Causes inflation

Can result in unbalanced economic development

Increases vulnerability to economic and political changes

Disadvantages of Tourism - Social

Creates social problems

Degrades the natural physical environment and creates pollution

Degrades the cultural environment

Threatens family structure

Commercializes culture, religion, and the arts

Creates misunderstanding

Creates conflicts in the host society

Contributes to disease, economic fluctuation, and transportation problems

Recap

Defined tourism-

The processes, activities, and outcomes arising from the relationships and the interactions among

tourists,

tourism suppliers,

host governments,

host communities, and

surrounding environments…

…that are involved in the attracting and hosting of visitors.

Recap

Types of tourism:

International tourism, Internal tourism, Domestic tourism, National tourism

Two visitor categories: same day (excursionist), tourist

Many purposes for a visit

Pleasure, Business, Family reasons, Health

Tourism Benefits/DisAdvantages – Economic, cultural, & social