CHAPTER3

Tourism

Characteristics
Year-round economic driver
11.7% of world GDP makes it worlds largest industry
10% of global workforce
Support the creation of over 5.5 million jobs per year
over next decade (1 in every 11.2 jobs)
8% of all jobs worldwide will depend on the industry

Environmental factorsaffect employment

Visa waiver program
China travel - MOU
Peoples preference
Economic condition

Interdependency of Tourism Segments

Airlines -
Transportation
Hotels -
Lodging
Foodservice
Restaurants
Recreational
Activities

Tourism Defined
Comprises activities of people
traveling to and staying in places
outside their usual environment
for not more than one consecutive year for leisure,
business, and other purposes.

Definitions
Tourist- A person who stays for more than one
night and less than one year (UN definition; tour for
pleasure or convention)
Visitor- A person who visits a country other than
where they reside for not more than one year
Excursionist- A person who travels to a site and
returns the same day
Tourism Categorized in Terms of the
Following Factors
Geography(international, regional, state)
Ownership(government, private)
Function(suppliers, educators, associations)
Industry(transportation, travel agents)
Motive (profit or nonprofit)

5 Ages of Tourism
Pre-Industrial Revolution (prior to 1840)
The Railway Age
The Automobile Age
The Jet Aircraft Age
The Cruise Ship Age

1. Pre-Industrial Revolution
Phoenicians were first travelers
Trade, commerce and food supply were the
motivation
Romans also traveled to shrines, seaside resorts
and the attractions of their time in Egypt and
Greece
Most medieval travel was of a religious nature
(pilgrimages to shrines)
2. The Railway Age
Prior to rail travel, tourists traveled by horse and carriage.
First railroad in U.S. built in 1830
By 1869 transcontinental travel
Today, U.S. rail travel has declined
however railroads in Europe and
Asia play far more important roles
in passenger transportation.

3. The Automobile Age

Production of automobiles began in 1891
Almost 200 million automobiles are registered today

4. Air Travel
The first U.S. scheduled air service was in 1915
In 1946, American and European reps came up with the Bermuda
agreement

a. Six Freedoms of Air Travel

1. Right to fly across another nations territory
2. Right to land in another country
3. Right to disembark passengers and cargo
4. Right to pick up passengers and cargo
5. Right to transport passengers and cargo
6. Right to carry traffic from a foreign country to the
home nation and beyond

b. Airline Deregulation Act of 1978

Purpose was to allow free-market competition
airlines could decide their own fare structures and
rates.
Resulted in new airlines, lower airfares, etc.
Forced noncompetitive airlines out of business.
Change in companies and the way airlines are doing business.

5. Cruise Ships
A floating resort
Has increased 800% from 1970 to 2000
Most cruise ships sail under foreign flags
Approximately 7 million Americans could/will be
cruising each year

International Tourism Organizations

UN WTO U.N. World Tourism Organization
APTAAsia Pacific Tourism Association
PATAPacific Asia Travel Association
IATAInternational Air Transportation Association
WBWorld Bank
http://www.unwto.org/index.php

State Offices of Tourism

HTAHawaii Tourism Authority
HVCBHawaii Visitors and Convention Bureau
DBEDT Department of Business, Economic
Development & Tourism
http://www.hawaiitourismauthority.org/
http://www.hvcb.org/
http://hawaii.gov/dbedt/

Economic Impact of Tourism

Economic Impact
 WTTC - World Travel and Tourism Council
Tourism is growing twice as fast as world GNP
Look up the current statistics on tourism
http://www.wttc.org
http://www.wttc.org/eng/Tourism_Research/Tourism_Sat
ellite_Accounting/

Multiplier Effect
New money spent by tourists is then re-spent by
hotels and restaurants in the community for goods
and services.

Leakage
When money must be spent outside the community for
goods unavailable within the community

Promoters

Travel Agencies
Serve as a middle person
Agents use computer reservation systems
Make money based on commissions
What does the future hold for promoters especially with
more people using the Internet to book travel?

Corporate Travel Managers

Work within a large corporation
Can still work with travel agencies
Can also be the meeting planner

Travel & Tourism Wholesalers

Consolidates services
Airlines
Other transportation carriers
Ground service suppliers
Tours
Sold to the public

Reasons for Travel

Business 20%
Leisure 70%
Other 10%
Business Travel Activities
A good portion of business travel is mixed with
pleasure.
Conventions are a main reason for business travel.
Tends to be non-seasonal e.g. Hawaii Convention center
http://www.hawaiiconvention.com/

Reasons for Leisure Travel

Experience new surroundings
Different cultures
Rest and relax
Visit friends and family
Sporting/recreation activities
e.g. HVCB,h t t p :/ / www. h vc b . org/& www. goh a wa i i . c om

Leisure Travel increase

Longer life span
Flexible working hours
Early retirement
Greater ease of travel
Shorter, more frequent trips

Social and Cultural Impact

Tourism pollution
Cultural awareness
Higher levels of employment

Eco-Tourism
responsible /sustainable tourism
Seeks to minimize the impact of tourism
Natural environment and native cultures
http://www.hawaiiecotourism.org/

Current Trends in Tourism

Tourism will continue to rise by about 8% annually( before
2008);
2008: 2% growth
2009: 0 to -2% growth
Increased governmental recognition of the importance
of tourism
Internet bookings will increasewww.expedia.com,
www.travelocity.com
 Employments prospects will continue to improve(slowed
for now)

Message from the Secretary (2011)

Secretary Alberto A. Lim

It is my pleasure to greet the members of the tourism industry as I take over the helm
of the Philippine Department of Tourism (DOT) under the administration of His
Excellency Benigno S. Aquino III.

We intend to launch a spectrum of programs focused on an integrated and sound

approach to tourism planning, product development, marketing and services that
would further strengthen our competitive edge in the Asia-Pacific region and promote
our countrys rich diversity.
We see tourism as one of the engines of economic development that will propel our
nation towards the change we all aspire for. And we will take a fresh look at our
tourism strategy and search for innovative ideas to invigorate our tourism industry.
We are renovating our website and other affiliate online presence to reflect this new
direction. We welcome fresh ideas and inputs from all sectors. You may email us at
webmaster@tourism.gov.ph. Together, lets make this nation a world-class tourism
haven.
Mabuhay ang sambayanang Pilipino!