Tourism

Module 2 :
Economic Activity

Prepared & Presented by

Mr. Utamu Rose - Lecturer, SVGCC
Lecture Overview
⚫ Tourism – A Service Industry

⚫ Leisure, Recreation & Tourism

⚫ Tourism - Classification
- Types/Forms

⚫ Global Tourism (Trends & Patterns)

⚫ Growth of Tourism

⚫ Factors influencing Tourism (Growth & Change)

Learning Objectives
Students should be able to -
⚫ Develop an understanding of the relationship
between leisure, recreation and tourism

⚫ Describe tourism as an economic activity

⚫ Explain current trends and patterns in global tourism

⚫ Discuss the social and economic factors accounting

for the growth and changing nature of tourism
Tourism – A Service Industry
⚫ Tourism is an example of a service industry and as such falls into
the tertiary sector.

⚫ Individual services may be grouped as follows:

1. Public Services – electricity, water companies

2. Producer Services – those which help businesses carry out

their activities e.g. banking & finance, law, transportation etc.

3. Consumer Services - those that have direct contact with

consumers e.g. retailing, leisure, recreation, tourism etc.
Tourism – A Service Industry
⚫ Tourism is an important consumer service with
enormous local, regional and international
implications.

⚫ It forms part of the economic base of many

different countries worldwide including Italy,
France, Spain, small islands states in the
Caribbean, Hawaii and many more.

⚫ Tourism reflects the highly income-elastic

demand for leisure & recreation that
accompanies economic development.
Leisure, Recreation & Tourism
⚫ Leisure - is a broad term associated
with ‘time free from employment, at one’s
own disposal’.

⚫ In developed countries, with shorter

working weeks and earlier retirement,
many people have an increasing amount of
‘free time’ which allows them to
participate in recreational activities.
Leisure, Recreation & Tourism
⚫ Recreation – refers to activities, events and
pursuits that are undertaken through choice
e.g. sports, gardening, video games,
entertainment etc.

⚫ An increase in leisure time, generates

increased demand for additional recreational
activities, amenities and infrastructure e.g. golf
courses, parks, swimming pools, bars & night
clubs etc.
Tourism
⚫ Tourism refers to travel away from home to visit
friends and relatives or different places.

⚫ It involves a large variety of visitors, including

personal as well as business travelers and
conventions, staying over a wide range of time.

⚫ The official UN definition is ‘a stay away from one’s

normal place of residence which includes at least
one night but is less than one year’.
Tourism
⚫ The World Tourism Organization (UNWTO) defines
tourism as “a social, cultural and economic
phenomenon which entails the movement of people to
countries or places outside their usual environment for
personal or professional/business purposes. These
people are called visitors (which may be either tourists
or excursionists; residents or non-residents) and
tourism has to do with their activities.”

⚫ Unlike the UN, The World Tourism Organization

(UNWTO), does not stipulate “one night away” so its
definition includes day visitors as tourists, as well as
‘business tourism’.
Classification of Tourism
⚫ As in other areas of study, geographers have tried to classify
aspects of tourism. The main classification scheme used is:

◦ Nature of Attraction

◦ Destination

◦ Transportation

◦ Length of Stay

◦ Accommodation
Classification of Tourism
⚫ Nature of Attraction – the characteristics of
the destination e.g. coastal, mountains, rivers
and lakes, climate, flora and fauna, history,
heritage sites, cruises, retailing & commercial
activity, urban/rural etc.

⚫ Destination – travel within or beyond

national/political borders
e.g. domestic vs. international
Classification of Tourism
⚫ Transportation – mode of transportation used
e.g. bicycle, caravan/bus, cruise/ship, airplanes etc.

⚫ Length of Stay – day trip, stay-over, weekends,

holidays, seasonal/annual vacations etc.

⚫ Accommodation – type of accommodation

used e.g.: camping, mobile home, Airbnb/Guest
House, Hotel/Resort/Villa, private home etc.
Types of Tourists
⚫ There are many different types of tourists.

⚫ One important distinction is between stop-over

tourists who stay in the country at least 24hrs and
excursionists/visitors such as cruise ship
passengers, who stay less than 24hrs.

⚫ A second distinction is made between international

tourists who cross country boundaries and whose
arrival is documented, and domestic tourists who
travel within their country and whose movements are
less well documented.
Types of Tourism
⚫ Different types/forms of tourism can be
recognized depending on the classification
system.

⚫ Generally there are two major types of

tourism :
◦International Tourism

◦Domestic Tourism
Types of Tourism
⚫ International Tourism –
- An international tourist crosses the boundaries of many
countries, uses different currencies, faces different languages and
meets different types of people.

- Usually international tourism involves longer distances although

crossing small countries or travelling in the neighbourhood of
international borders may involve short distances.
Types of Tourism
⚫ Domestic Tourism –
- Concerned with travelling within the country. It does
not need a passport and visa or conversion of one
currency into another.

- Domestic tourism has greater scope in countries of

large dimensions such as India as compared to smaller
countries.

- From a geographical viewpoint, domestic tourism may

range from local excursion, regional trips to national
level travels.
Forms of Tourism
⚫ Many other forms of tourism may be identified, often
through a combination of one/more classifications -
◦ Mass Tourism ◦ Geotourism
◦ Adventure Tourism ◦ Industrial Tourism
◦ Business Tourism ◦ Medical Tourism
◦ Holiday Tourism ◦ Health/Wellness Tourism
◦ Cruise Tourism ◦ Sex Tourism
◦ Cultural Tourism ◦ Sports Tourism
◦ Heritage/Historical Tourism ◦ Sustainable Tourism
◦ Religious Tourism ◦ Space Tourism
◦ Ecotourism ◦ Virtual Tourism
Global Tourism
⚫ Prior to the pandemic, the Travel & Tourism industry
accounted for 1 in 4 of all new jobs created across the
world i.e. 10.6% of all jobs (334 million), and 10.4% of
global GDP (US$9.2 trillion).

⚫ Meanwhile, international visitor spending amounted to

US$1.7 trillion in 2019 (6.8% of total exports, 27.4%
of global services exports).

⚫ 1.5 billion International tourist arrivals were recorded

in 2019, globally. Of total tourist receipts, the majority
was earned by countries in North America & Europe.
Global Tourism
⚫ The travel & tourism industry is dynamic, having to
change continually to meet consumer demands and
perceptions. Its key features at present include the
following:

1. It has a complex structure consisting of a

wide variety of interrelated commercial and
non-commercial organizations.

2. It is predominantly private-sector led.

Global Tourism
3. It is dominated by relatively few large,
often multinational corporations e.g.
Theme Parks (Disney, Universal), Tour
Operators (Going Places Leisure Travel), hotel
chains (Marriot, Holiday Inn, Sandals) and air
operators (American Airlines, British Airways
etc)

Despite this, the majority of enterprises

are small and medium-sized, often
catering to the local market.
Global Tourism
4. There has been an increase in the number & range of
destinations.

- In 1950, the top 15 destinations attracted 98% of

international arrivals, compared to only 57% by 2007. These
destinations focused mainly on “sun, sand & sea”.

- New destinations are emerging especially in developing

countries, and a greater demand for a greater range of
activities and experiences.

- The fastest emerging tourist destinations are China and the

Middle East.
Global Tourism
5. There is an extensive use of new technologies
including data handling, advertising, advance bookings,
the internet & social media.

6. It is vulnerable to external pressures such as

currency fluctuations, fuel charges, government
legislation, international terrorism and public health
crises (covid-19 pandemic).

7. It has both positive and negative effects on host

communities and environments (economic, social and
cultural).
Growth of Tourism
⚫ The growth of tourism reflects the increase in disposable
income among a considerable segment of the world’s
population.

⚫ The Romans rank amongst the earliest tourists, as many of

their most wealthy families used to move to their country
villas during the hot, dry summers.

⚫ By the 18th and 19th centuries, affluent British people were

either visiting spa towns within England, or making the
‘Grand Tour’ of classical Europe, while the less-off were
beginning to popularize local seaside resorts. This was the
advent of ‘mass tourism’
Growth of Tourism
⚫ Although mass tourism began in the nineteenth
century, it grew rapidly after World War II, when it
became an option for the working classes.

⚫ Contributing to this trend was the automobile and

wide-body jet airplane, which greatly reduced
transportation costs.

⚫ Today, tourism has become part of everyday life and a

major source of employment in many countries.
Factors Influencing Tourism (Growth & Change)
⚫ The rapid growth of and changes in the global tourism
industry in the last half-century can be linked to numerous
social and economic factors. These include:
◦ Greater Affluence

◦ Greater Mobility

◦ Improved Accessibility & Transport

◦ Technological Developments

◦ Product Development & Innovation

◦ Changing Lifestyles

◦ More Leisure Time

Factors Influencing Tourism (Growth & Change)
◦ Changing Recreational Activities

◦ Advertising & Marketing

◦ Historical Linkages

◦ Travel Regulations

◦ Socio-Political Climate

◦ Government Policies

◦ Sustainable Tourism
Factors Influencing Tourism (Growth & Change)

⚫ Greater Affluence –
- People in employment earn high salaries and their disposable
income is much greater than it was several decades ago.

- People in full-time employment also receive holiday with pay,

allowing them to take more than one holiday a year and to travel
further distances.

- There was a 25% decrease in tourist arrivals after the 2008 global
economic crisis – showing the direct link between tourism and
affluence
Factors Influencing Tourism (Growth & Change)
⚫ Greater Mobility
- The increase in car ownership has given people greater
freedom to choose where and when they go.

- Chartered aircrafts have

reduced the costs of
overseas travel;
wide-bodied jets can
carry more people
and can travel further
e.g. the Airbus A380,
can carry over 500 passengers
Factors Influencing Tourism (Growth & Change)
⚫ Improved Accessibility & Transport
- Improvements in roads, motorways, urban
by-passes etc. have reduced driving times
between places and encourage people to travel
more frequently and greater distances.

- Improved and enlarged

international airports,
faster trains,
large ships,
reduced air fares
and package holidays.
Factors Influencing Tourism (Growth & Change)
⚫ Technological Developments
- Jet aircraft engines, computerized reservation
systems, GPS, the internet etc.

⚫ Product Development & Innovation

- Holiday & beach villas, all-inclusive resorts, Package
tours etc.
Factors Influencing Tourism (Growth & Change)
⚫ Changing Lifestyles
- People are retiring early and are able to take advantage of
their health/fitness/youth
- People at work need longer/more frequent rest periods as
pressures of work increase.
- Changing fashions e.g. niche markets, new destinations,
activities & interests

⚫ More Leisure Time

- Shorter working week and longer paid holidays
- More people working from home, flexible schedules, part-time
jobs
- An ageing population (retired but active)
Factors Influencing Tourism (Growth & Change)
⚫ Changing Recreational Activities
- Slight decline in ‘beach holiday’ aka sand, sun& sea tourism (3S
Tourism)
- Rapid growth of cruise holidays esp. since 1990s

- Increase in active holidays (skiing, hiking, water sports)

- Increase in self care/catering
- Increasing importance of theme parks
Factors Influencing Tourism (Growth & Change)
⚫ Advertising & Marketing
- Aggressive advertising & marketing of the tourism
product in mass media encourages tourism
- Holiday programs, film & TV
- Travel blogs
- The Internet & Social Media
(Instagram, Twitter, TikTok, YouTube, Netflix etc.)
- Expos (Dubai 2020 Expo)
- Advertising Campaigns (#VisitSVG, I Love NY)
Factors Influencing Tourism (Growth & Change)
⚫ Historical Linkages
- Historical links between the market (where tourists
are coming from) and the destination. e.g. shared
customs and languages between the UK, USA and
English-speaking Caribbean Countries

- The growth in the Caribbean diaspora and increase

in visits from them directly, or indirectly as they
spread knowledge/promote the region’s beauty,
culture and history.
Factors Influencing Tourism (Growth & Change)
⚫ Travel Regulations
- Changing travel regulations and requirements affects
tourism as it dictates where persons can/cannot go or the
ease/accessibility of travel from and to certain destinations

- Stricter travel requirements

such as visas, deters
some tourists.

- A lack of or removal of
travel restrictions often
encourages tourism.
Factors Influencing Tourism (Growth & Change)
⚫ Sociopolitical Climate
- Political instability, poor social conditions, crime &
violence, civil unrest, conflict, war, terrorism, etc. can
reduce tourist arrivals.
e.g. Countries like Sri Lanka and Libya have suffered
from the perception of being “unsafe”

- Political stability often tends to encourage tourist

arrivals as these places are perceived as safer to travel
to.
Factors Influencing Tourism (Growth & Change)
⚫ Government Policies
- The introduction of tourism boards and authorities by many
governments with an aim to attracting visitors and investors
by marketing the country overseas.

- Many Caribbean countries have government sponsored

agencies to boost tourist arrivals and encourage tourism
investment, e.g. SVG Tourism Authority, Barbados Tourism
Authority.

- Numerous LEDCs have shifted from primary and secondary

economic activities to more tertiary activities in order to
boost revenue. As such, many have made large tourism
investments.
Factors Influencing Tourism (Growth & Change)
⚫ Sustainable Tourism
- Speaks to the need to benefit the local economy,
environment & people without spoiling the
attractiveness and amenities of the places visited.

- Recently more “knowledgeable” tourists are

demanding value for their money.

- More environmentally-conscious tourists support

eco- and sustainable tourism as opposed to more
traditional forms.
Lecture in Review
⚫ Tourism refers to travel away from home to visit friends and
relatives or different places. It is an important consumer
service with enormous local, regional and international
implications.

⚫ The two main types of tourism are International & Domestic

Tourism but there are many different types/forms including
Mass, Adventure, Business, Cruise, Cultural, Historical,
Religious, Medical, Sports, Sex and Sustainable Tourism.

⚫ The travel & tourism industry is dynamic, having to change

continually to meet consumer demands and perceptions.
Lecture in Review
⚫ The growth of tourism reflects the increase in disposable
income among a considerable segment of the world’s
population.

⚫ Today, tourism has become part of everyday life and a major

source of employment in many countries.

⚫ The rapid growth of and changes in the global tourism industry

in the last half-century can be linked to numerous social and
economic factors including greater affluence & mobility, more
leisure time, improved accessibility & transport, technological
developments advertising & marketing, government policies etc.
Additional Reading/Resources
⚫ The changing face of tourism https://www.youtube.com/watch?v=O3bx5miizBw

⚫ Factors Affecting Global Tourism https://www.youtube.com/watch?v=vWPFhdz3G7E

⚫ Factors affecting the growth of tourism hotspots

https://www.jkgeography.com/factors-affecting-growth-of-tourism-hotspots.html

⚫ Factors that influence tourism https://www.youtube.com/watch?v=2_IwD5wRogQ

⚫ Why has global tourism boomed https://www.youtube.com/watch?v=DROwQVgdcLk