Chapter 13
Tourism: Front and Center
WHAT IS TOURISM?
According to Theobald, tourism is defined as
The activities of visitors, persons travelling to and staying in places outside their usual environment for up to 12 months for leisure, business, pilgrimage, etc. A visitor (or tourist) is someone travelling outside of their usual environment. Sometimes the definition requires that the tourist spend one night away from home.
TRAVEL AND TOURISM
Travel (and tourism) has always been and is still an
important activity in North American society It is important to individuals and is important to local, state, regional and national economies The hospitality and tourism industries are strongly linked and it can be hard to separate them sometimes Broadly, T&T are the businesses and services that serve travelers away from home What are some examples?
TRAVEL AND TOURISM
The Travel and Tourism Industry includes the following: Restaurants Lodging/Resorts Airlines Rental Cars Travel Agents State and National Parks State Departments of Tourism Leisure activities
DIMENSIONS OF TOURISM
The following are dimensions that tourism and government organizations are often interested in tracking: Purpose of the trip Distance traveled Duration of the trip Residence of the traveler Mode of transportation Spending
FACTORS AFFECTING TRAVEL AND TOURISM
Travel can be affected by income, time
available, cost of gas, recession, amount of leisure time available, demographic shifts, travel advisories, border restrictions, etc.
TYPES OF TRAVEL
Not all travel is leisure (or pleasure) related
Travel can be for purposes of Business or
Pleasure 77 % of all domestic travel is for pleasure purposes People are traveling for pleasure when they want to experience new things, experience a change of pace, improve their health, visit friends and relatives, etc.
TYPES OF TRAVEL
Business travel is also a very important
component and can represent greater expenditures (hotels, air, restaurants) Business travel accounts for about 12% of all domestic travel Business travel can include persons attending meetings and conventions
THE U.S. AS AN INTERNATIONAL DESTINATION
The US leads the world in (inbound)
international tourism spending (over $70 billion) Much of the international travel here is made up of travelers from Canada and Mexico and is largely dependent upon exchange rates Also, even though the US does not have Approved Destination Status in China, more Chinese tourists are travelling here
THE U.S. AS AN INTERNATIONAL DESTINATION
Reasons people travel to the US Made attractions (Disney) Natural attractions (Grand Canyon, Niagara Falls) Cities (San Francisco, Washington DC, New York) Gaming (Las Vegas) Friends and relatives
FACTORS AFFECTING TRAVEL AND TOURISM
Like the hospitality industry, the travel and
tourism industry had a couple of difficult years but is currently healthy and growing Domestic travel is growing (US residents travelling in the US) Leisure time is increasing (again) Travel patterns are changing (shorter vacations)
MODES OF TRAVEL
Automobiles are still the most widely used
mode of transportation for travel (representing 90% of all trips taken). Airlines (a function of cost and distance) Ships/boats/ferries Trains Fly/drive Other (bicycles, motorcycles)
PASSENGER TRANSPORTATION
Only the rich (and daring) flew in the 1920s Air travel increased through the 1970s Deregulation (1978) brought more carriers,
increased competition and lower fares Air travel is increasing despite the recent problems that carriers have experienced Airlines had a very difficult 5 years but 2006 has been positive Airlines have attempted to cut costs by raising fares and partnering with other carriers
PASSENGER TRANSPORTATION
Airlines have challenges associated with high
capital costs, high labor costs, high fuel costs (25%), maintenance costs and high levels of uncertainty Five of the major airline companies were in bankruptcy during 2005/2006 Only three airlines made a profit in 2005 High fares are essential to making profits but airlines can find themselves in a Catch 22
LARGEST U.S. AIRLINES
1. American 6. Southwest
2. United
3. Delta 4. Continental 5. Northwest
7. US Air
8. America West 9. Jet Blue 10. Alaska Air
RESERVATIONS NETWORKS
Airlines long relied on Travel Agents to book
flights on their behalf Airlines have started to rely on them less and less because of the Internet and an attempt to save $$ (from commissions) Travel agencies are declining now but still book about 50% of all airline travel Travel Agents use Central reservation Systems such as Sabre and Amadeus
ECONOMIC SIGNIFICANCE OF TOURISM
Tourism is one of the largest industries in the
country and the world It provides more jobs than every industry but health care It has an even greater impact when the Travel Multiplier is considered (employee payroll, employee spending, taxes, etc.) States depend on tourism as well
STATE TRAVEL BUDGETS
1. Hawaii: $70.7 million
2. Pennsylvania: $64.7 million
3. Illinois: $49 million 4. Texas: $29.1 million 5. Florida: $24.7 million
ECONOMIC SIGNIFICANCE OF TOURISM
1. California $53 billion
2. Florida $52 Billion
3. New York $35.5 Billion 4. Texas $ 33 Billion 5. Hawaii $23 Billion
NONECONOMIC EFFECTS OF TOURISM
Crowding
Congestion
Impact on local quality of life Cost of living Pollution Degradation of the environment Loss of authenticity
