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Changes in Leisure Time:

The Impact on Tourism


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Copyright 1999 World Tourism Organization


Changes in Leisure Time:
The Impact of Tourism
ISBN: 92-844-0316-2
Published by the World Tourism Organization
All rights reserved. No part of this book may be reproduced or transmitted in any form or by
any means, electronic or mechanical, including photocopying, recording or by any information
storage and retrieval system without permission from the World Tourism Organization.
The designations employed and the presentation of material in this publication do not imply the
expression of any opinions whatsoever on the part of the Secretariat of the World Tourism
Organization concerning the legal status of any country, territory, city or area or of its
authorities or concerning the delimitation of its frontiers or boundaries.
Printed by the World Tourism Organization
Madrid, Spain
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ACKNOWLEDGEMENTS
The World Tourism Organization Business Council would like to thank Horwath UK,
consultants to the Tourism, Hotel and Leisure Industries, for their thorough preparation of this
report on Changes in Leisure Time and its Impact on Tourism, particularly Colin G. Clark for
his dedication in the coordination of the study.
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FOREWORD
Todays use of leisure time and the trends foreseen for the future are very different from the
patterns established in the 1960s when economic miracles in many countries triggered the
beginning of the modern era of tourism. The future development of tourism will depend on
how the industry manages to compete with increasingly attractive options for spending leisure
time.
The WTO Business Councils study Changes in Leisure Time: The I mpact on Tourismgives
an overview on leisure time trends relevant to tourism in 18 major tourism generating
countries.
Initial findings of the study were presented and discussed at three seminars on the evolution of
leisure time held during 1998 and 1999 in Washington D.C., London and Madrid. In addition,
the study was presented at meetings of the WTO Regional Commission for Africa in Mauritius,
at the International Conference on European Tourism and Leisure Research in Austria, at the
East Mediterranean International Travel and Tourism Fair in Turkey and at the University of
Westminster in the United Kingdom. These meetings and seminars constituted a forum for
debate and were used to expand the final report.
The WTO Business Council intends this book to be a reference for the many people involved in
the tourism industry to help them find solutions for success in an ever more competitive world.
Martin Brackenbury Jos Luis Zoreda
Chairman Chief Executive Officer
WTO Business Council WTO Business Council
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TABLE OF CONTENTS
SECTION Page
1 INTRODUCTION, CONCLUSIONS AND RECOMMENDATIONS
1.1 Background 3
1.2 Scope and Objectives 3
1.3 Method of Approach 4
1.4 Conclusions 5
1.5 Recommendations for Governments 7
1.6 Recommendations for the Tourism Industry 9
1.7 The Role of WTO 12
2 COUNTRY SUMMARIES BY REGION
2.1 Americas 15
2.2 Asia Pacific 16
2.3 Europe, Africa and the Middle East 19
3 AMERICAS REGION
3.1 Brazil 25
3.2 Canada 29
3.3 United States of America 33
4 ASIA PACIFIC REGION
4.1 Australia 41
4.2 China 45
4.3 Japan 49
4.4 Korean Republic 56
4.5 Malaysia 60
4.6 Singapore 64
5 EUROPE, AFRICA AND THE MIDDLE EAST
5.1 Austria 71
5.2 France 75
5.3 Germany 80
5.4 Italy 85
5.5 Netherlands 90
5.6 Sweden 93
5.7 Switzerland 98
5.8 United Kingdom 102
5.9 South Africa 109
6 OVERVIEW OF TRENDS AND IMPLICATIONS FOR TOURISM
6.1 Population, Demography and Incomes 115
6.2 Working Time and Leisure Background 118
6.3 Overview of Regulation of Working Time and Holidays 119
6.4 Overview of Findings on Leisure Time 122
6.5 Leisure Time and Tourism by Region 123
6.6 Summary Findings on Leisure Time and Tourism 137
APPENDIX
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Changes in Leisure Time: The Impact on Tourism 1


SECTION 1
INTRODUCTION, CONCLUSIONS AND RECOMMENDATIONS
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WTO Business Council 2


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Changes in Leisure Time: The Impact on Tourism 3


SECTION 1 INTRODUCTION, CONCLUSIONS AND RECOMMENDATIONS
1.1 BACKGROUND
Tourism is the worlds largest industry and growing significantly. International tourism
arrivals worldwide grew by 36% to 625 million, and international tourism receipts grew
by 65% to US$445 billion, from 1990 to 1998. Europe is the major generator of outbound
international tourism, accounting for 54% of global expenditure in 1996. The Americas
generated 22% of expenditure, Asia Pacific 21%, and Africa and the Middle East 3%.
Domestic tourism accounts for many more trips than international tourism, but overall
with a significantly lower expenditure per trip. Detailed tourism statistics are published
by WTO.
Until quite recently it was widely assumed, particularly in and concerning the richer
countries, that working hours were steadily reducing, the amount of leisure time
increasing and that these trends would continue. Many people looked forward to a golden
age of leisure. In 1996 the Affiliate Members Committee of WTO agreed that the major
changes which have been impacting on the world economy in recent years have made the
situation much more complex and that a study of current trends in leisure time and their
implications for tourism should be undertaken.
Governments, industries and employees are facing the consequences of globalisation and
liberalisation of the world economy and the resulting fierce competitive pressures.
Attention has become focused on efforts to make industries more competitive, raise
productivity and counter unemployment. As a result there is now less concern for better
working conditions. Those working conditions which specifically affect leisure time -
shorter working days, shorter working weeks, longer holidays with pay and reducing the
age of retirement - have taken a back seat. At the same time demographic shifts are
occurring and also changes in the structure of family life and in the pattern of
employment. All these factors bear upon the level of holiday taking.
In addition, there is a general absence of leisure time policies at government level.
Tourism is now promoted by governments more for its economic benefits than for the
health, social benefits and improved quality of life, which in the past justified increasing
holiday entitlements in many countries.
1.2 SCOPE AND OBJECTIVES
This study examines the prospects for leisure time in a sample of 18 important tourism
generating countries, to establish what changes in the pattern of leisure time are taking
place, how these are reshaping holiday taking, and how governments and the tourism
industry should respond. The countries are listed below by region.
Americas: Brazil, Canada and USA.
Asia Pacific: Australia, China, Japan, Korean Republic, Malaysia and Singapore.
Europe, Africa and the Middle East: Austria, France, Germany, Italy, Netherlands,
Sweden, Switzerland, UK and South Africa.
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WTO Business Council 4


14 of these countries are currently leading generators of outbound tourism. To ensure a
broadly based study, avoid over concentration on Europe and North America, and look to
growth markets of the future, Australia, China, South Africa and Malaysia are also
included. The 18 selected countries generated 73% of international tourism expenditure,
and 61% of international tourism arrivals in 1996.
When comparing the country positions in terms of trips and expenditure, Japans
relatively low ranking in terms of number of trips and third placing in terms of
expenditure highlights its high average international tourist spend. The opposite applies
to Malaysia, ranked fourth in terms of trips and the lowest in terms of expenditure when
compared to the other selected countries.
Leisure time is shaped by hours of work, public holidays, paid leave entitlements and
retirement arrangements, all of which vary widely between countries. Each has its own
national values and traditions in terms of the importance attached to leisure and the
institutional arrangements that shape it.
This study focuses on leisure time in relation to holiday taking, but there are many
competing claims for leisure time and discretionary income in the vicinity of the home.
As discretionary leisure time increases it at first frees people to take more holiday away
from home. However, as leisure time increases further the proportion taken away from
home falls.
Some of the countries included in the study have long standing traditions of leisure time
and holiday taking, often buttressed by law and collective agreements between employers
and employees. In other countries leisure patterns depend more upon convention and
customary provisions in employment contracts. In these countries changes in the general
economic climate can affect leisure provision quite quickly. There is a third group of
countries, often with strong traditions of public holidays, in which the idea of regular
holidays of several days, perhaps used to travel abroad, is still quite new and less well
established in the social and economic fabric.
This study examines leisure time trends in each of the countries and changes in the
international economy, which are creating new pressures on leisure time.
1.3 METHOD OF APPROACH
The study has been carried out by desk research, correspondence and discussion with the
key interests in each country, including the governments departments and agencies
responsible for tourism and related matters, national travel industry bodies and
representative bodies of employers and employees. We have consulted international
organisations with an interest in leisure and tourism, including OECD, ILO, the European
Commission and Eurostat. Offices of Horwath International in the relevant countries
have also assisted with our research. The study has also benefited from a series of
seminars and meetings, organised by WTO, at which preliminary conclusions were
discussed and valuable input received.
The information gathered enabled us to identify the institutional arrangements which
shape leisure time in each country, recent trends and the factors which are now
influencing how leisure time will develop in the future and how consumer behaviour and
tourism are likely to be affected. We have analysed this information and set out our
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Changes in Leisure Time: The Impact on Tourism 5


conclusions and recommendations for policy and action by governments, the tourism
industry and WTO.
1.4 CONCLUSIONS
1.4.1 Importance of Tourism
Tourism is among the fastest growing sectors of the world economy. Governments
throughout the world support the industry and compete for a share of the revenues and
employment it can bring. International tourism is forecast by WTO to grow from 1995 to
2020 at an average annual rate of 4.3% for tourist arrivals and 6.7% for tourist
expenditure.
Much of the growth will be from the countries included in this study and will therefore be
influenced by the trends we have identified in working time and leisure in each country.
These trends reflect world economic circumstances and, in particular, aspects of
globalisation, liberalisation and technological change which are impacting on national
economies. Fierce international competition leads governments to focus on policies to
sharpen economic performance.
1.4.2 Employment Security and Productivity
Businesses seek to raise productivity and trade unions are more concerned to stabilise
employment and maintain incomes than to press for improvements in conditions of
employment. Commercial pressures make for greater flexibility in the terms on which
employment is available. For many employees this means less security.
A 1997 OECD report on job insecurity in member countries concluded that there has been
a widespread and, in some countries, very sharp increase in individuals perceptions of job
insecurity between the 1980s and the 1990s. In these circumstances many employees are
more concerned about security of employment than long holidays or shorter working
weeks. They are also likely to consider long term financial provision more carefully than in
the past and to plan on the basis that, looking to the future, personal resources for
retirement will become increasingly important as national social security provision is
reduced.
1.4.3 Employment Flexibility
Within the broader trend towards employment flexibility, increasing the flexibility of
working hours can provide benefits to employees in terms of greater freedom to choose
when to go on holiday. This is important for tourism. However if within more flexible
arrangements, employees are to take holidays they still need to be able to plan their leisure
time, to know how much time they will have and when.
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WTO Business Council 6


1.4.4 Paid Leave and Leisure Time
Employers in highly competitive markets work to control employee benefit costs, of
which paid holiday and pensions are among the most expensive. Hence the tendency to
minimise the number of permanent employees and the consequent time pressures upon
those employees, especially more senior staff, who in many cases do not qualify for
overtime payments and may fall outside controls on working hours.
In this employment climate it is improbable that paid leave entitlements will increase
substantially, at least in the short to medium term. For many of those in employment
leisure time will be increasingly shaped by the terms of new, more flexible working hours
regimes.
However, paid leave in countries within the European Union is now under pinned by the
1993 Working Time Directive which gives a right to four weeks paid holiday from 1999.
This holiday cannot be exchanged for cash. A related development is the move by some
European employers towards flexible benefit packages enabling employees to choose
between more holiday and, for example, additional pension contributions. Interaction
between these developments will be important, especially as in several countries pressure
of work is leading some employees to take less than their full holiday entitlement.
1.4.5 Retirement
Almost all the countries we have considered are reviewing social security provision to
reduce or contain the cost of retirement pensions and encourage more private provision. In
some cases the value of pensions is being reduced over a transitional period and the
retirement age raised. In Europe, the last few years have seen policies of encouraging
early retirement, in order to create jobs for the young, succeeded in some cases by policies
to defer retirement in order to reduce the burden on public expenditure.
The leisure time of the retired will be modified by changes in retirement age and pensions,
but many will continue to retire younger and fitter than previous generations and with
more leisure interests.
This market will continue to grow. The proportion of the population aged 60 and over
will rise significantly in all countries included in the study. Between 1996 and 2010 the
increase will be over 85 million (a 27% increase).
1.4.6 The Young
The leisure of the young is constrained by limited incomes rather than time but many take
the opportunity to travel before embarking on their careers and the changing pattern of
employment, with less emphasis on lifetime careers, encourages some to take further
breaks between periods of work. With employment increasingly offered on the basis of
limited time contracts, this trend is likely to continue.
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Changes in Leisure Time: The Impact on Tourism 7


1.4.7 Consumer Response
The findings of this study, particularly the views of the travel industry, show how
consumer behaviour is changing in response to these economic and social developments.
Despite the squeeze on leisure time, the market response is not a weakened but a changing
pattern of tourism demand towards shorter, more frequent and more intensive breaks.
Increased work pressure may well be making holidays even more vital. So there are many
opportunities for the industry. Higher spend, shorter stay visitors can mean a better return
on investment.
However, the industry should recognise two important factors:
the dichotomy between the money rich / time poor and time rich / money poor sectors
of the population;
traditional tourism products are increasingly competing for time and/or money with
other tourism related products (such as second homes, time-share and cruises) and
with leisure activities and other consumer expenditure in the vicinity of consumers
homes.
Both of these factors illustrate the increasing segmentation of the market and the
continuing demand shift from standardised mass tourism products towards products with
local identity and authenticity, designed to meet more individual needs.
1.5 RECOMMENDATIONS FOR GOVERNMENTS
1.5.1 Recognition of the Tourism Industry
For some governments the most important concern may be the overall distribution of work
and leisure. Governments wishing to reduce the involuntary leisure resulting from
unemployment, and which recognise tourism as a powerful job creator, should develop
policies for their countries both as tourism generators and tourism destinations.
Traditionally governments have been much more responsive to inbound than to outbound
tourism issues but policy will be more effective if the links between the two are recognised
1.5.2 Areas for Action
A flourishing tourism sector requires:
economic policies which encourage the natural acceleration in growth of the service
sector, including the leisure industries, as consumer incomes rise, thus improving the
quality of life and stimulating leisure related demand both by residents and tourists;

development of the synergy between outbound, inbound and domestic tourism markets.
Transport and accommodation facilities developed or facilitated by government to serve
these markets also serve broader economic objectives by improving communications,
access and ease of movement to and within the country;
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that the income, employment and regional development benefits which tourism can
provide are not limited by a taxation burden which inhibits growth or weakens
international competitiveness;
that tourism development is effectively co-ordinated across government departments
and particularly with environmental and transport policy;

that transport policies facilitate market developments. A particular instance, highlighted
in this study, is the trend towards shorter but more frequent holidays, which makes the
quality of air transport services, including airport capacity and related ground facilities,
especially important;

that more flexible working hours regimes take account of the family and social
responsibilities of employees and provide for a balance between work and other aspects
of life.
1.5.3 Lifestyle Trends
The large increase in the number of women in the work force in many countries makes
flexible working regimes especially important. The rising proportion of dual income
households greatly reduces family leisure time and puts pressure on family life, including
difficulty in synchronising times when both parents and children can take holidays
together. The increasing number of families affected by divorce further complicates
organising family holiday groups.
Providing balance between work and other aspects of life - a family friendly working hours
regime - is a humane issue and a strategic one in relation to long term social and economic
health. In certain countries, for example the USA, Japan and the UK, the work pressure on
some employees is particularly intense and we have identified a level of public concern to
achieve a more balanced approach to work and leisure.
In the past it was often predicted that economic advance, rising incomes and the progress
of technology would improve the quality of life. Widespread concern about work
pressures suggests that, for many employees caught up in situations where leisure time is
constantly squeezed, the quality of life may be falling.
1.5.4 Working Hours and Competitiveness
In a number of countries unemployment is made worse by the high level of wage related
costs associated with taking on employees. This encourages employers to structure jobs to
minimise head count and thus the burden of associated costs, making it difficult for many
of the employed to achieve the balance they would like between work and leisure and
making it difficult for others to find employment.
Governments may wish to review the relationship between working hours and
competitiveness. Long hours are not necessarily effective hours. The USA and Japan, the
two wealthiest countries, have respectively given the world two new words. From
America comes downshifter (one who makes a deliberate decision to withdraw from
financially rewarding but stressful work so as to achieve a more meaningful and happy
life). From Japan karoshi (death caused by overwork or job related exhaustion). These
two words indicate the price in terms of creativity and health which is being paid for the
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Changes in Leisure Time: The Impact on Tourism 9


working hours regimes now established in the two largest economies. They also
demonstrate the importance of applying the fruits of increasing productivity to improving
the quality of life generally and broadening the opportunity for individuals to achieve a
better balance between work and leisure.
Increased leisure, if it is voluntary, is one of the most prized benefits of economic growth
and one persons leisure can provide another persons employment.
1.6 RECOMMENDATIONS FOR THE TOURISM INDUSTRY
Tourism services should be developed taking into account that:
1.6.1 Working Time and Leisure
Increasingly flexible working hours, including in many countries the substantial rise in
those working at weekends, is changing the rhythm of leisure time. The work and leisure
time of individuals, through the week and through the year, is increasingly variable.
Working hours are being annualised to fit work peaks and troughs more closely. More
people are employed on fixed term contracts and simply take time off between
commitments. One effect of these developments is to reduce the traditional weekend and
seasonal peaks in the leisure market. Other considerations include:
more flexible market driven working patterns, and the growth of self employment, will
lead to an increase in working hours for many;
those working under more flexible employment regimes may be less able to plan their
holidays far in advance, less confident in budgeting for them and book on shorter lead
times;
more flexible work regimes, the continuing decline of "factory close down" traditions
and the growth of winter sun travel between the hemispheres will lead to holidays
being spread more evenly through the year;

increases in the number of public holidays or in paid annual leave are unlikely over the
next few years in any of the countries we have reviewed;

main holidays will tend to decrease in length, with growth most likely in additional
shorter holidays, often, particularly in the case of North America and Asia, taking the
form of extended weekends;

in some countries where it has been the tradition there are moves away from Saturday
school, which will ease family weekend leisure time, but there may be compensating
reductions in the length of school holidays;

there may be more staggering of school holidays to avoid congestion;

in the USA there are some experiments in making school holidays more education
driven, with shorter, more frequent breaks. Similar possibilities are being considered in
the UK. This could have an important impact on the pattern of holiday taking;

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in countries where paid holiday entitlements are established by law there are no
indications that reductions are being considered;

in countries where there is no statutory right to paid holidays, or where the holiday
tradition is not strong economic difficulties, rising unemployment and workplace
pressure may erode holiday taking;

the introduction by employers of flexible employment packages can benefit tourism to
the extent that employees choose more holidays in preference to alternative benefits.
1.6.2 Market Factors
whilst the retired will continue to be a strong and growing market, many countries are
reducing social security retirement benefits, raising the retirement age and encouraging
more self funding of retirement income. So this important market is likely to become
even more cost and value conscious;

the retired, free of the constraints of summer and other traditional holiday seasons, will
contribute to the seasonal spread of holiday taking and present many marketing
opportunities;

the pressures of working life will continue to stimulate the need to "get away from it
all", often for a short break;

the shortage of leisure time available to the employed in a number of countries,
particularly the USA and the Asian countries, will stimulate demand for time efficient
short breaks at easily and quickly accessible destinations;

young people and the retired will be the groups with most leisure time available for
travel. Both markets are strongly segmented and that tendency will grow as consumers
increasingly link holiday activities with personal interests;

working couples may find difficulty in synchronising holiday time between themselves
and family circumstances, arising from divorce or from responsibility for dependent
relatives, may be a further complication;

in some countries liberalisation of the economy will continue to lead to greater income
polarisation. This will add to the number of comparatively wealthy seekers of new,
high quality travel opportunities.
1.6.3 Product Implications
there are many competing claims on consumers' limited leisure time. Holidays need a
substantial commitment of time so the squeeze on time strengthens competition from in
home and near to home attractions. The industry should analyse the benefits, in terms
of satisfaction and personal development, which time pressed consumers really want
from holidays and develop precisely tailored, flexible products;
whilst the range of leisure opportunities promoted to consumers continues to grow there
is also a continuum of leisure interests which presents growth opportunities for tourism.
Fitness enthusiasts are prime prospects for activity holidays. Cultural interests
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Changes in Leisure Time: The Impact on Tourism 11


developed at home stimulate the market for an ever widening range of cultural tourism
products;
the time pressed will want to achieve maximum value from their tourism purchases. By
developing relationship marketing the industry can identify particular consumer needs
and offer products which consumers recognise as making an essential contribution to
lifestyle, for which time must be found.
reinforcing and strengthening the motivation for travel and tourism is increasingly
important as leisure industry investors compete for consumers time with near to home
attractions, including theme parks and alternatives to international travel, such as Center
Parcs in Europe and Disney's Animal Kingdom in Florida.
Segmenting the tourism market to reflect time pressures we can identify -
the time poor but money rich, interested in a wide range of high style, high fashion short
breaks - city culture, total relaxation, the exotic. Their time is more valuable to them
than their money. They expect excellent products that can be tailored to their tight
schedules.
the money and time rich, these include the affluent retired, free to travel throughout the
year. Many will be sophisticated and demanding travellers, open to enjoying several
widely different holidays each year, including luxury cruising and long haul travel but
with many home - and perhaps second home - based interests competing for their time.
the money and time poor, interested in a wide range of affordable holidays, often in the
domestic market. Work pressures will incline them to get away for short breaks when
they can, often at short notice.
the money poor and time rich, often retired, interested in extended but inexpensive trips,
including winter sun breaks, preferably with plenty of associated activities and,
particularly for the young, backpacking.
Cost conscious consumers will look for the cost saving benefits of the traditional package
holiday. Those who are more pressed for time than for money will look to packages for the
time savings offered. The time poor and money rich, in particular, will expect highly
efficient services for selecting and purchasing holidays on short lead times, using the latest
information technology. Their insistence on hassle free, efficient journeys will provide
opportunities for nearby destinations to exploit same country, same region or same time
zone advantages. The time pressed do not want avoidable jet lag, slow ground services or
accommodation with poor communication links. Many are never truly off duty; even on
holiday they must keep in touch with work.
There are opportunities for domestic products if consumers feel they get better value from
their limited time by reducing the proportion spent on travel.
Success will go to those who study changing consumer needs most closely and whose
products serve them best.
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These changing needs and, in particular, the increasing pressure on leisure time, were well
illustrated in a presentation on the position in the United Kingdom, Tourism and Value
for Time by Paul Edwards of the Henley Centre to the WTO World Travel Market
seminar in London in November 1998. A summary of the presentation is included as
Appendix to this Report.
1.7 THE ROLE OF WTO
The future levels and patterns of holiday taking will depend upon economic growth and the
extent to which people share in this in terms of additional leisure time, as well as additional
income.
In view of the pressures on leisure time and the economic opportunities which tourism
presents, WTO decided to lead a major debate on the importance of leisure and leisure
time. This debate highlighted growing concerns in many countries about the time pressures
on many of the employed whilst others are unemployed or underemployed.
It is widely recognised that most new employment will be generated by the service
industries. However, the challenge of creating more jobs which leisure industries can
generate, particularly tourism, is to ensure that leisure time is not compromised
excessively. In an increasingly flexible employment market some individuals will wish to
work relatively long hours to maximize income, others will prefer to work shorter hours to
have more time for other interests, including leisure activities. This choice should be a
voluntary one, which individuals in all countries should be free to make.
The examination of the current situation and trends of leisure time has been a first step
towards monitoring leisure time developments relevant to tourism. A central source of
information has been declared valuable for governments and the industry. This initiative is
timely, in that economic circumstances now, are so different from those of the 1960s -
when economic miracles in many countries established the conditions for leisure to emerge
and led to the phenomenon of tourism.
WTOs aim for the future is to encourage governments to monitor the increasingly
important leisure sector more closely at national level, particularly trends in holiday
entitlements, the amount of holiday actually taken and the proportion of that which is spent
away from home.
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Changes in Leisure Time: The Impact on Tourism 13


SECTION 2
COUNTRY SUMMARIES BY REGION
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WTO Business Council 14


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Changes in Leisure Time: The Impact on Tourism 15


SECTION 2 COUNTRY SUMMARIES BY REGION
2.1 AMERICAS
2.1.1 Brazil
Brazil generated US$6.6 billion of outbound international tourism expenditure in 1997,
and was ranked 15th in the world with 1.7% of global expenditure;
the population of Brazil is forecast to rise by 29 million to 190 million between 1996
and 2010; the proportion of the population aged 60 or over will increase by 47% to total
17 million;
leisure provision is entrenched by law and both paid holiday entitlement and public
holidays are generous;
continuing economic reforms are likely to increase unemployment and reduce job
security.
In the short term, the 1999 devaluation and subsequent floating of the currency will
inhibit outbound but may strengthen domestic tourism;
in the longer term economic prospects and holiday entitlements are favourable.
2.1.2 Canada
Canada generated US$11.3 billion of outbound international tourism expenditure in
1997, and was ranked 7th in the world with 3.0% of global expenditure;
the population of Canada is forecast to rise by 3 million to 33 million between 1996 and
2010; the proportion of the population aged 60 or over will increase by 37% to total 7
million
paid annual leave and public holidays, which are entrenched by law, are more generous
than in the USA.

Market trends are characterised by:
reducing length of main holidays;

growth in additional breaks, especially extended weekends;

growth in short haul rather than long haul or domestic travel;

growth in tailored and independently organised holidays;

a general trend towards activity, cultural and special interest holidays;

a growing retired population, interested in learning and health breaks and who expect
to remain active longer than previous generations.
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WTO Business Council 16


2.1.3 USA
USA generated US$51.2 billion of outbound international tourism expenditure in 1997,
and was ranked 1st in the world with 13.6% of global expenditure. The USA domestic
tourism market is also particularly well developed;
The population of the USA is forecast to rise by 29 million to 294 million between 1996
and 2010; the proportion of the population aged 60 or over will increase by 27% to total
55 million
holiday entitlements are likely to remain modest;

continuing growth can be expected in short breaks, especially extended weekends and
trips around public holidays;
domestic and nearby destinations will benefit from short travel times and the
opportunity to offer very time efficient packages to make optimum use of limited
leisure time;
the growth of two earner households will continue to make holiday timing
synchronisation difficult. For divorced couples, where more than two parents have an
interest in the children, there can be further difficulty.
2.2 ASIA PACIFIC
2.2.1 Australia
Australia generated US$6.1 billion of outbound international tourism expenditure in
1997, and was ranked 19th in the world with 1.6% of global expenditure;
the population of Australia is forecast to rise by 2 million to 20 million between 1996
and 2010; the proportion of the population aged 60 or over will increase by 39% to
total 4 million;
the Australian economy has been severely affected by the Asian economic crisis;

the decline of outbound tourism from Asia led to reduced capacity on airline routes
serving Australia. This, together with the weakness of the Australian dollar, has
negatively impacted outbound tourism from Australia;

a growing trend is the ability for employees to exchange paid overtime for leave,
increasing the opportunity to take long weekend breaks;

the continuing trend in the growth of short break additional holidays is likely to benefit
domestic and easily accessible short haul destinations.
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Changes in Leisure Time: The Impact on Tourism 17


2.2.2 China
China generated US$10.2 billion of outbound international tourism expenditure in 1997,
and was ranked 10th in the world with 2.7% of global expenditure;
the population of China is forecast to rise by 134 million to 1,349 million between
1996 and 2010; the proportion of the population aged 60 or over will increase by 35%
to 161 million;
Chinas outbound tourism is at an early stage of development and the longer term
growth potential is very great;

the Chinese enjoy annual leave entitlements of 10 days in line with other countries in
the region;

growth has been strongest in intra regional traffic and this may be stimulated by the
recent devaluations in a number of neighbouring countries;

any weakening of Chinese economic performance arising from the difficulties in the
region is likely to inhibit growth in the short term.
Weakness in the inbound market arising from economic difficulties in the region and
the consequent availability of capacity may stimulate domestic market growth
2.2.3 Japan
Japan generated US$33 billion of outbound international tourism expenditure in 1997,
and was ranked 3rd in the world with 8.7% of global expenditure;
the population of Japan is forecast to rise by 1 million to 127 million between 1996 and
2010; the proportion of the population aged 60 or over will increase by 43% to total 38
million;
recent economic developments will make the market more cost conscious and subdue
growth;
no increase in holiday taking among the employed is likely until the economy
strengthens. Therefore Japanese executives (salary men) will have little opportunity
for long haul leisure travel and their holidays, and those of their families, will continue
to focus around weekends and the public holidays;
the more leisure orientated young (particularly office ladies) and the retired, in a
rapidly ageing society, will present growth opportunities for intra regional and long
haul tourism. A wide range of activity and cultural breaks will be popular, with skiing
and theme parks appealing to the young and cruises, golf and health tourism to the
retired;
the 1998 Asian devaluations increased the competitiveness of intra regional
destinations.
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WTO Business Council 18


2.2.4 Korean Republic
the Korean Republic generated US$6.3 billion of outbound international tourism
expenditure in 1997, and was ranked 18th in the world with 1.7% of global expenditure;
the population of the Korean Republic is forecast to rise by 4 million to 50 million
between 1996 and 2010; the proportion of the population aged 60 or over will increase
by 62% to total 7 million;
economic stress, and the changes required by IMF assistance, will subdue consumer
spending in the short term;
the prospect of rising unemployment makes it unlikely that employees will increase the
very modest proportion of annual leave which is actually taken;
the general growth in demand, together with some increase in the proportion of annual
paid holiday actually taken, which was envisaged at the time of our consultation with
the Association of Travel Agents, is now likely to be deferred in the short term;
the January 1998 discouragement of the promotion of overseas travel, and the
campaign for holidays at home, is further depressing outbound travel and airline
capacity has been reduced.
2.2.5 Malaysia
Malaysia generated US$2.5 billion of outbound international tourism expenditure in
1997, and was ranked 28th in the world with 0.7% of global expenditure;
the population of Malaysia is forecast to rise by 5 million to 26 million between 1996
and 2010; the proportion of the population aged 60 or over will increase by 62% to
total 2 million;
the regional economic crisis, and the imposition of currency controls, have had a major
effect on Malaysian outbound tourism and leisure;

the government are seeking to increase the domestic tourism market;

recovery of the outbound market is likely to be slow.
2.2.6 Singapore
Singapore generated US$3.2 billion of outbound international tourism expenditure in
1997, and was ranked 25th in the world with 0.9% of global expenditure;
the population of Singapore is forecast to remain stable at 3 million between 1996 and
2010; but the proportion of the population aged 60 or over will increase by 33% to total
1 million;
the economy has been less affected than other economies in the region by financial
difficulties;

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Changes in Leisure Time: The Impact on Tourism 19


outbound traffic is heavily intra regional and may be encouraged by the devaluations in
neighbouring countries;

the travel industry has identified the easing of Chinese visa restrictions as a key to
travel growth, particularly for short breaks;

the travel industry anticipates that weekly working hours may increase. It also
recognises that the retirement age is set to rise but believes this, by raising incomes of
older people above retirement level, may stimulate a higher level of tourism among the
elderly.
2.3 EUROPE, AFRICA AND THE MIDDLE EAST
2.3.1 Austria
Austria generated US$11.0 billion of outbound international tourism expenditure in
1997 and was ranked 8th in the world with 2.9% of global expenditure;
the population of Austria is forecast to remain unchanged at 8 million between 1996
and 2010; the proportion of the population aged 60 or over will increase by 19% to
total 2 million;
working time and paid annual leave are underpinned by the law and by collective
agreements;
no major changes are expected but the retirement age is set to rise and the unions are
concerned about the quality of future employment, especially in view of the trend
towards part-time jobs;
holiday entitlements are generous, but the travel trade is cautious about the level of
holiday spend in the short term and anticipates some decrease in additional holidays.
2.3.2 France
France generated US$16.6 billion of outbound international tourism expenditure in
1997, and was ranked 6th in the world with 4.4% of global expenditure. France also
has a strong domestic tourism and second home market;
the population of France is forecast to rise by 2 million to 60 million between 1996 and
2010; the proportion of the population aged 60 or over will increase by 15% to 14
million;

government initiatives have encouraged the reduction of working time through the
sharing of work between the employed and unemployed. The Government has also
sought to increase the numbers of people retiring early;

a law, adopted in 1998 and to be introduced in 2000, reduces the working week to 35
hours with no reduction in pay. Employers believe that this will have a negative effect
upon competitiveness and productivity;

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WTO Business Council 20


the Syndicat National des Agents de Voyages reported that French government policy is
to encourage increased leisure time and that outbound tourism is growing.
2.3.3 Germany
Germany generated US$46.2 billion of outbound international tourism expenditure in
1997, and was the worlds second leading generator with 12.2% of global expenditure;
the population of Germany is forecast to fall by 1 million to 81 million between 1996
and 2010; but the proportion of the population aged 60 or over will increase by 18% to
total 20 million;
no increase in the generous holiday entitlements is expected and the travel trade
envisages a possible fall in additional holidays, and in willingness to take full holiday
entitlements, in the short term;
the continuing debate on the need to contain the costs of the unfunded pension scheme
may make the retired more cautious about leisure spending.
2.3.4 Italy
Italy generated US$16.6 billion of outbound international tourism expenditure in 1997,
and was ranked 5th in the world with 4.4% of global expenditure. Italy also has a
strong domestic tourism market;
the population of Italy is forecast to fall by 2 million to 55 million between 1996 and
2010; but the proportion aged 60 or over will increase by 14% to total 14 million;
the travel industry has noted a trend towards shorter but more frequent holidays;

despite adverse changes in retirement age and income, the industry expects some rise in
holiday expenditure, especially in short breaks and extended weekends and beyond
2000;
the Italian State Tourist Board advises that by 2005 there may be some decrease in
holiday entitlements and therefore in the number of days holiday taken.
2.3.5 Netherlands
Netherlands generated US$10.2 billion of outbound international tourism expenditure in
1997, and was ranked 9th in the world with 2.7% of global expenditure;
the population of the Netherlands is forecast to remain stable at 16 million between
1996 and 2010; but the proportion of the population aged 60 or over will increase by
24% to total 4 million;
no increase in paid leave entitlement is expected and there is some discussion in
Holland about whether the Dutch have too much holiday;

trade unions want members to have the right to sell back to their employers the "extra"
five days above the legal entitlement which many collective agreements include;
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Changes in Leisure Time: The Impact on Tourism 21


the length of main holidays is expected to decrease but the frequency of holidays to
increase;

long haul travel is expected to rise more than short haul;
the retirement age is expected to rise.
2.3.6 Sweden
Sweden generated US$6.6 billion of outbound international tourism expenditure in
1997, and was ranked 16th in the world with 1.7% of global expenditure;
the population of Sweden is forecast to remain stable at 9 million between 1996 and
2010; but the proportion of the population aged 60 or over will increase by 15% to total
2 million;
Swedish annual leave provision is good and includes provision to enable employees to
carry forward holiday, in order to take longer periods of leave, and to link public
holidays to weekends and thus have a longer break;
trade unions are most concerned with the prospects for the quality of future employment
opportunities. Their interest in leisure time is mainly focused on improving flexible
working hours regimes, so that they meet family and social needs as well as improving
commercial efficiency;
there is also interest in developing "free time banks" to enable employees to accumulate
free time when they wish and use it how they wish, even using holiday time to shorten
the working week for a period;

it is unlikely that there will be any increase in holiday entitlements in the next few
years.
2.3.7 Switzerland
Switzerland generated US$6.9 billion of outbound international tourism expenditure in
1997, and was ranked 13th in the world with 1.8% of global expenditure;
the population of Switzerland is forecast to remain stable at 7 million between 1996 and
2010; but the proportion of the population aged 60 or over will increase by 21% to 2
million;
trade unions have been campaigning for a 10% reduction in working time, but this is
opposed by the Confederation of Swiss Employers;

little change is expected in working time or holiday entitlement;

in the longer term the retirement age may be reduced but there may also be a fall in
retirement income;

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WTO Business Council 22


economic growth has been disappointing and a 1997 poll indicated worries about
unemployment and pensions. However, expenditure on main and additional holidays is
expected to increase with growth predicted in the long haul and short break markets.
2.3.8 United Kingdom
UK generated US$27.7 billion of outbound international tourism expenditure in 1997,
and was ranked 4th in the world with 7.3% of global expenditure;
the population of the UK is expected to remain stable at 59 million between 1996 and
2010; but the proportion of the population aged 60 or over will increase by 12% to 14
million;
implementation of the European Union Working Time Directive means that working
hours and paid holiday leave have a statutory basis, which may result in slightly more
short breaks and holidays;
more flexible working regimes will result in shorter more frequent breaks;

no other significant changes in leisure time are likely;
the retired will continue to be an important market, with a steadily increasing proportion
enjoying supplementary pensions.
2.3.9 South Africa
South Africa generated US$1.9 billion of outbound international tourism expenditure in
1997, and was ranked 35th in the world with 0.5% of global expenditure;
The population of South Africa is forecast to rise by 8 million to 46 million between
1996 and 2010; the proportion of the population aged 60 or over will increase by 36%
to 3 million;
South Africa has been seriously affected by the global financial crisis, which has
resulted in high interest rates, currency devaluation and fears of recession;

outbound tourism growth is expected to be slow in the short to medium term.
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Changes in Leisure Time: The Impact on Tourism 23


SECTION 3
AMERICAS REGION
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WTO Business Council 24


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SECTION 3 AMERICAS REGION
3.1 BRAZIL
3.1.1 Key Facts
1997 2010 Projection
Population millions 169 190
% of Population over 60 *7 9
Labour Force millions *72 87
GDP per head ppp US$ 6,300 n/a
* 1996 ppp = purchasing power parity
Statutory Leave *30 days
Public Holidays 10 days
Retirement Age Men 65 Women 60
* maximum
1994 1995 1996 1997
Unemployment % 6 6 5 7
1980 to 1990 1990 to 1996 1997
Consumer Prices % Increase pa 371 644 5
1980 1996
Service Imports US$ millions 4,871 13,630
Travel as % of Total Service Imports 7.5 24.9
Travel Imports US$ millions 365 3,394
Working Week 44 hours per week
Sources: World Bank, ILO, Embratur
3.1.2 Working and Leisure Time
3.1.2.1 Overview
Working hours are regulated by law and practice. The Federal Constitution and the
consolidation of labour laws of 1943, with subsequent additions, regulate working hours.
Collective agreements, which may be applied exclusively or in combination with legal
provisions, also establish working time rules for certain categories of employees.
3.1.2.2 Trends
The Constitution of 1988 maintained the eight hour normal working day but reduced the
working week from 48 to 44 hours. There is a trend to greater flexibility of working
hours as part of a modernisation and simplification of working hours, and reduction of
social costs. There is a union view in favour of prohibition of overtime work on the
grounds that it is an obstacle to job creation. However, the experience when Brazil
introduced the eight hour day was that rather than increasing the number of jobs it led to a
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rise in overtime. This tendency is probably due to low salaries and to the high employee
related costs of hiring new workers.
3.1.2.3 Normal Hours of Work
Law: the Constitution provides for an 8 hour working day and a working week of 44
hours.
Practice: Embratur (the Brazilian tourism agency) advises that, over the period 1994 to
1996, the average working week was six days. In August 1998, the Government
introduced extensive labour law reform to try to stem rising unemployment. The measures
introduced greater flexibility into work contracts and encourage more part-time
employment.
3.1.2.4 Paid Annual Leave
All employees have the right to paid annual leave, subject to a qualifying period of 12
months service. Length of leave is proportional to the number of unauthorised absences
from work of the employee: 30 days if not absent more than five times, 24 days if absent
between six and 14 times and so on. The full amount of holiday entitlement is normally
taken. Leave is normally to be taken in one period. There is no provision for additional
leave, for example, on grounds of length of service. The Constitution establishes a wage
premium of one third of salary for the leave period.
Embratur did not expect any increase in paid holiday in the short to medium term.
3.1.2.5 Public Holidays
There are ten public holidays per year. No change in public holidays is expected.
I January World Peace Day 1 May Workers' Day
Varies by location Foundation Day 7 September National Day
21 April Tiradentes Day 2 November All Saints Day
Good Friday 15 November Republic Day
Corpus Christi 25 December Christmas Day
3.1.2.6 School Holidays
These are broadly the months of December, January and July. There are plans to decrease
school holidays
3.1.3 Retirement
Overview: the retirement age is expected to rise and there are moves to reduce the public
cost of retirement provision and encourage private pension provision.
Normal Retirement Age: the official retirement age is 65 for men and 60 for women
and these are typically the actual ages of retirement. However, the actual retirement age
is expected to rise by 2000.
Early Retirement: there are moves to discourage early retirement.
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Social Security Pension: there are moves to reduce the public expenditure costs of
retirement provision.
Private Pensions: to facilitate reducing public expenditure, private provision of support
in old age is being encouraged and the real disposable income of pensioners is expected to
rise.
3.1.4 Tourism Profile
3.1.4.1 Outbound Tourism
Outbound tourism from Brazil increased from 1.4 million trips in 1985 to 3.3 million trips
in 1997. 65% of trips were to destinations within the Americas region, followed by
Europe (31%) and East Asia and the Pacific (3%). Inter-regional trips have increased at
2.5 times the rate of trips to intra-regional destinations since 1985.
Average spend per trip has fluctuated slightly between 1991 and 1996. In 1996 the
average spend per trip was US$1,534 and the average duration of trips was 17 days.
Leisure travellers accounted for 63% of trips and the business related travel 27%.
Holiday tourism is reported to be 45% packaged and 55% independently organised. The
leading ten destinations for Brazil tourists in 1996 are summarised in the table below.
Country Arrivals 000s Country Arrivals 000s
USA 838 UK 108
Argentina 537 Germany 93
Italy 351 Portugal 89
Uruguay 175 Chile 62
Spain 108 Switzerland 58
Source: WTO
3.1.4.2 Employment in Tourism
Limited tourism employment data was available. In 1994, total tourism employment was
reported to be approximately 5 million, compared to 5.7 million in 1990.
3.1.5. Leisure Time and Tourism: Industry view to 2005
The views of the Association of Brazilian Travel Agents are summarised below.
3.1.5.1 Socio Economic Factors
total working hours may increase;
paid holiday and public holidays may decrease, together with willingness to take full
holiday entitlement;
the retirement age may rise with a fall in retirement income;
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school holidays may be shortened;
expenditure on holidays may fall.
3.1.5.2. Travel, Length and Type of Holiday and Accommodation
any increase in travel is most likely tb be domestic or short haul;
any growth in holidays is most likely to be in extended weekends and in tailored,
package and all inclusive holidays;
growth in accommodation demand is most likely to be for hotels.
3.1.5.2 Leisure Products
increased demand from young people and young couples is expected for diving,
trekking, theme parks, cruises, cultural and activity holidays;
increased family demand is most likely for theme parks, multi city tours, skiing,
fishing, coach touring and cruises;
increased demand from those holidaying independently of their families is most
probable for coach touring, trekking and winter sun.
growth in demand from the retired is most likely for beach, winter sun, walking, coach
touring, pilgrimage, cultural and health related holidays.
3.1.6 Leisure Time and Tourism Conclusions
Brazil is the fifth largest country by population in the world and represents over 40% of
Latin Americas combined GDP. The population is predominantly young with an average
age of 23 years.
Embratur expects real incomes to rise in the medium term. Economic reforms have
resulted in the private sector being the driving force behind growth. Inflation has been
encouragingly low, enhancing investment. However, recent economic events have
created a climate of uncertainty.
In January 1999, the Brazilian currency was devalued and then allowed to float. The
economic situation has yet to stabilise, but a general economic slowdown is expected and
this will adversely affect outbound leisure travel but may strengthen domestic tourism.
ABAV has advised on the likely pattern of demand as the economy recovers and outbound
tourism strengthens
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3.2 CANADA
3.2.1 Key facts
1997 2010 Projection
Population millions 30 33
% of Population over 60 *16% 20%
Labour Force millions 15 17
GDP per head ppp US$ 21,700 N/a
* 1996
Statutory Leave 2 weeks rising to 3 weeks after 5 years.
Public Holidays 11 days
Retirement Age 65
1994 1995 1996 1997
Unemployment % 10.4 9.5 9.7 8.6
1980 to 1990 1990 to 1996 1997
Consumer Prices % Increase pa 5.3 1.8 1.8
1980 1996
Service Imports US$ millions 10,558 35,772
Travel as % of Total Service Imports 30.5 31.0
Value of Travel Imports US$ millions 3,220 11,089
Working Week 40 hours per week
Sources: World Bank, ILO, and Statistics Canada
3.2.2 Working and Leisure Time
3.2.2.1 Overview
Canada is a federal state and most employment regulation, including working hours, is at
provincial level.
3.2.2.2 Trends
Between 1986 and 1994 working hours reduced. The reductions were very gradual and
essentially due to increases in both the length of paid annual leave and the number of paid
statutory public holidays. Unions have been prime movers in obtaining these reductions
in working hours.
Although the average working week had declined to 37 hours in 1994, an advisory report
for Human Resource Development Canada found that this was misleading. Both full and
part time employees were counted and most job losses had been in full time jobs and most
new jobs were part time. The apparent decline masked an increase in the number of full
time employees working more than 50 hours a week. The report analysed the factors that
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led employers to prefer having full time employees work longer hours rather than hiring
new workers. The main factors were as follows:
the costs associated with new personnel such as recruitment, training and benefit costs.
The report noted that benefit costs can add up to some one third of payroll costs in
some enterprises. Paid leave was found to be the largest benefit cost followed by
pension and similar benefits, and social security costs. Most of these costs do not
materially increase if an employee works longer hours;

the wish to use capital equipment more efficiently;

supplementary hours worked by many salaried workers were not paid for by the
employer.
Between 1990 and 1995, average real incomes in Canada fell by as much as 6%. The
losses fell entirely on men reflecting the loss of well paid primary resource and
manufacturing jobs.
3.2.2.3 Normal Hours of Work
Statutory hours of work are controlled on a daily and/or weekly basis. They are 8 hours a
day and 40 hours a week at the federal level and in several provinces. However, some
provinces have a 44 hour week and Prince Edward Island has a 48 hour week.
3.2.2.4 Paid Annual Leave
Paid annual leave is a right of every employee in Canada in all jurisdictions. In all
jurisdictions, except Saskatchewan, employees are entitled to two weeks paid annual
leave after each completed year of employment. In Saskatchewan, employees are entitled
to three weeks paid leave after one year, and four weeks after ten years, employment. In
other jurisdictions, increased annual leave is also provided for legally after a certain
number of years service, typically to three weeks after five years.
The employer determines when an employee can take paid annual leave, within limits laid
down by the law. Employers cannot break down below one week the periods over which
leave can be taken.
3.2.2.5 Public Holidays
The number of public holidays varies among the jurisdictions. The federal jurisdiction
provides 11 public holidays.
1 January New Year's Day August 1 Day
Good Friday September* Labour Day
May* Victoria Day October* Thanksgiving Day
June Discovery Day 11 November Remembrance Day
1 July Canada Day 25 & 26 December Christmas
NB * Always on Monday
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3.2.2.6 School Holidays
December / January 2 weeks
February 1 week
Easter 1 week
Summer: late June to August 8 weeks
3.2.3 Retirement
Overview: basic social security benefits are provided through the Old Age Security Plan
(OAS). Earnings related benefits derive from the Canada Pension Plan (CPP) or the
Quebec Pension Plan (QPP). The CPP system is being reformed to switch in part from a
pay as you go system to one with larger reserves. Changes are also being made to
contribution rates and benefits. Typically, at normal retirement age, pension income will
replace 53% of previous income.
Normal Retirement Age: the normal retirement age is 65.
Early Retirement: early retirement is not available under OAS. It is available under
CPP and QPP, subject to reductions in benefit.
Social Security Pension: benefits under the plan are modest.
Private Pensions: employer sponsored supplementary pension schemes are widespread.
Rising concern about the adequacy of their future public pensions is encouraging
increasing numbers of Canadians to put more savings into private schemes.
3.2.4 Tourism Profile
3.2.4.1 Outbound Tourism
Outbound tourism from Canada increased from 15 million trips in 1985 to 20 million trips
in 1997. However, this was below the peak of almost 23 million in 1991. The average
spend per trip was over US$550 and the average length of stay was 10.4 days. Business
related markets accounted for 16% of outbound trips, VFR 18% and leisure markets 57%.
The USA was the dominant destination and the Americas region attracted 83% of trips.
Demand for European destinations (11% of trips) was relatively stable and demand for
Africa, East Asia/Pacific and South Asia grew overall. Canadian travellers to intra-
regional destinations (83% of total trips) increased by 42% between 1985 and 1997,
compared to 6% for inter-regional destinations. The leading ten destinations for outbound
Canadian tourists in 1996 are summarised in the following table:
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Country Arrivals 000s Country Arrivals 000s
USA 15,301 Cuba 163
UK 598 Spain 153
France 476 Germany 132
Mexico 269 Dominican Republic 128
Italy 243 Jamaica 102
Source: WTO
3.2.4.2 Domestic Tourism
Limited domestic tourism data was available. The number of trips fell from 80 million in
1994 to 72 million in 1996, average spend fell from US$203 to US$183 and average
length of stay per trip fell from 3.2 to 3.1 days. Domestic tourism market mix for Canada
remained relatively stable from 1994 to 1996, with VFR (43%) and leisure related (38%)
the major sectors.
3.2.4.3 Employment in Tourism
Total tourism employment increased slightly between 1990 and 1996. In 1996 tourism
was reported to support 492,000 jobs.
3.2.5 Leisure Time and Tourism: Industry View to 2005
The views of the Association of Canadian Travel Agents are summarised below.
3.2.5.1 Socio Economic Factors
total working hours may increase, particularly after 2000, and so may willingness to
take full holiday entitlement;
a stronger rise in expenditure on additional holidays than main holidays is expected
throughout the period to 2005.
3.2.5.2 Travel, Length and Type of Holiday and Accommodation
some increase in short haul rather than long haul or domestic travel is expected;

main holidays are expected to decrease in length over the period with the principle
increase in extended weekends;
tailored and independently organised holidays are expected to grow;

some growth in house exchange is expected in the accommodation sector.
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3.2.5.3 Leisure Products
the young, young couples and families are expected to be increasingly attracted to
activity, cultural and special interest holidays;

the retired will share these preferences, with particular interest in learning and health
breaks, and a stronger interest than other segments in beach holidays and cruises;
special interest, cultural, learning and eco-tourism are all expected to become more
important as the retired population increases, remains healthy much longer than earlier
generations and looks for ways to spend time.
3.2.6 Leisure Time and Tourism Conclusions
Canadians enjoy rather more paid leave entitlements than their neighbours to the south in
the USA. Nevertheless, the same tendency towards more frequent but shorter breaks has
been noted by the travel industry. The strongest markets are among the retired, who have
the time and the means to travel in order to enjoy a wide range of activities and cultural
pursuits.
3.3 UNITED STATES OF AMERICA
3.3.1 Key Facts
1997 2010 Projection
Population millions 268 294
% of Population over 60 *16 19
Labour Force millions **136 150
GDP per head US$ ppp 30,200 n/a
* 1996
** includes unemployed
Statutory Leave Nil in practice most commonly 10 days
Public Holidays 9 days
Retirement Age 65
1994 1995 1996 1997
Unemployment % 6.1 5.6 5.4 4.9
1980 to 1990 1990 to 1996 1997
Consumer Prices % Increase pa 4.2 3.0 2.0
1980 1996
Service Imports US$ millions 40,970 152,774
Travel as % of Total Service Imports 25.4 32.7
Value of Travel Imports US$ millions 10,406 49,957
Working Week 40 hours per week
Sources: World Bank, ILO, Sedgwick Noble Lowndes
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3.3.2 Working and Leisure Time
3.3.2.1 Overview
The USA is a federal system, with federal and state governments exercising concurrent
jurisdiction over most aspects of working time. At the federal level the Fair Labor
Standards Act establishes the principle of a 40 hour week, after which overtime must be
paid at a rate of 150% of regular pay.
3.3.2.2 Trends
American employees work relatively long hours compared to those in other developed,
industrialised countries. For full time workers, the trend in the 1980s and 1990s has been
towards slightly longer weekly hours of work. Paid annual leave and other forms of leave
are relatively modest by international standards. American productivity growth has
almost tripled since the Second World War. However, in the view of Professor Juliet
Schor, a leading authority on leisure time in America, instead of taking some of the
benefits of that increase in free time, Americans have opted for increased consumption.
Several other commentators have also remarked that increased working hours have led to
a decrease in leisure time during the 1980s and 1990s, and warned of the negative
consequences of this development. Professor Schor shows that over a 20 year period,
there has been a reduction in leisure time of 140 hours per year for the average American
employee. It has been argued that workers accepted to work longer hours, to have
increased overtime pay, because real wages declined during this period. It is estimated
that, in 1998, the average American family regained the real income level it achieved in
1989.
In The Overworked American (1990) Professor Schor wrote We have paid a price for
our prosperity. Capitalism has brought a dramatically increased standard of living, but at
the cost of a much more demanding work life. We take vacations, but we work so hard
throughout the year that they become indispensable to our sanity...
A number of surveys in the 1990s have indicated that American workers, particularly
those with higher incomes, have not been satisfied with working such long hours and
would be willing to receive less income if they could have more leisure time. However,
this is not easily done because of rigidities in job structure and time requirements. For
employers this minimises employee numbers and therefore employee related costs,
including employee benefits and social security.
Another important factor may be that, in many areas, trades unions have been weak in the
USA and the reduction of working hours has not been a priority for them since the 1930s.
So there has been no countervailing institutional pressure to the employer preference for
longer hours. Whilst, in recent years, full time workers have been increasing their
working hours, there has also been a growth in part time and other non standard work.
Enterprises have been proponents of this form of flexibility to increase competitiveness.
In discussion of working time issues in the USA, unlike in Europe, there has been
comparatively little consideration of the possibility of reducing working time in favour of
the creation of additional employment. This may reflect the lower level of unemployment
in the USA than in Europe in recent years. In the 1980s recession employees were more
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inclined to accept reduced wages as the price of job preservation than to negotiate
reductions in working time.
The recent strength of the employment market has made employers more concerned with
recruitment and retention. So that those with scarce skills may be able to negotiate more
holiday time. The shortage of IT skills has even led some companies to offer golden
handcuffs in the form of sabbatical leave, but only after three years employment. This
market driven approach contrasts with European legislation of holiday rights.
3.3.2.3 Normal Hours of Work
Normal hours of work, both at federal and very frequently at state level, are 40 hours over
a five day week, although the law has many exceptions.
3.3.2.4 Paid Annual Leave
Law: there are no generally applicable provisions at the federal or state level.
Practice: typical service conditions are one week paid leave for one year of service, two
weeks for two years, three weeks for eight years, four weeks for 15 years and five weeks
for 20 years.
3.3.2.5 Public Holidays
Each state establishes its own public holidays. In most cases there is considerable overlap
with federal public holidays, but most states have one or two public holidays of their own.
Many states have between 10 and 13 public holidays in total per year. There are nine
federal public holidays.
1 January New Years Day September Labor Day
15 January Martin Luther King Day 11 November Veteran's Day
February President's Day November Thanksgiving
May Memorial Day 25 December Christmas Day
4 July Independence Day
3.3.2.6 School Holidays
Spring: April 1 week
Summer: June to mid August 10 weeks
Christmas: December to January 1 to 2 weeks
Some new approaches to school holidays are being introduced. These eliminate the long
summer vacation and are based on eight week terms alternating with two week breaks. If
this approach becomes established it will have major implications for family holidays.
Theme parks are among those already affected by a changing pattern of visits.
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3.3.3 Retirement
Overview: social security, although relatively substantial, is supplemented by
widespread private retirement plans.
Normal Retirement Age: the full social security pension is payable from age 65. The
age for full pension is being raised for those born after 1937, and will become 67 from
2027. A debate is underway on how to fund the steadily increasing cost of social security
pensions. The bi-partisan National Commission on Retirement Policy has recommended
changes, which include rebating a proportion of current contributions so that individuals
can invest this sum directly, thus introducing an element of pre-funding, and raising the
retirement age to 70 by 2029. The hope is that these changes will encourage more private
saving towards retirement. The administration believes that people are ill informed about
the need to plan and save for retirement.
Early Retirement: a reduced pension may be claimed from age 62.
Social Security Pension: the formula for calculating the social security pension is
weighted in favour of the low paid and typically produces a pension in the range of 25%
to 60% of final assessable earnings.
Private Pensions: the majority of employees participate in employer sponsored
retirement plans. A typical plan will provide a pension which, with social security,
replaces between 60% and 80% of pre-retirement income.
3.3.4 Tourism Profile
3.3.4.1 Outbound Tourism
Outbound trips from the USA have increased from 54 million in 1985 to approximately 64
million in 1997. Intra-regional demand for the Americas (64% of trips) dominates USA
outbound travel. Demand for European destinations (26%) is rising but remains below
1985 levels. The average expenditure per trip was estimated to be approximately US$800.
The leading ten destinations for American tourists in 1996 are summarised in the following
table.
Country Arrivals 000s Country Arrivals 000s
Mexico 20,314 Puerto Rico 2,211
Canada 12,909 Germany 1,598
UK 3,089 Bahamas 1,341
Italy 2,884 Spain 913
France 2,603 Jamaica 774
Source: WTO
3.3.4.2 Domestic Tourism
Domestic travel by US residents increased by 8% during 1997 and totalled 1.3 billion
trips. The main market sectors for domestic demand were VFR (36%), leisure (35%) and
business related (23%). Travel expenditure by residents within the USA was US$408
billion, a 74% increase over 1987 figures.
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3.3.5 Leisure Time and Tourism Conclusions
The 1996 report of the Washington Economic Policy Institute notes continuing job
insecurity among American employees and suggests there are "general deregulatory,
laisser faire shifts in the economy" which have "weakened the bargaining power of
workers, both union and non union, both blue and white collar". In these circumstances
increasing leisure time is unlikely to have high priority in employment negotiations.
For companies, the increase in hours worked in America means higher output, lower
overheads and larger profits. For employees it may be that low rates of marginal tax, by
international standards, encourage Americans to choose extra money rather than extra free
time. In contrast a more heavily taxed European might choose extra leisure. The
penalties for not working hard may be greater in America. To take a full two week
holiday may indicate an insufficient level of commitment. Many of the changes in
management in recent years, especially down sizing, have required extra effort from
employees and some companies practice "stretch management", which means setting
goals just beyond the employees previous limits. An additional factor is that in the case
of management staff overtime may cost the employer practically nothing.
Against this background, evidence is emerging of employee dissatisfaction. A study for
Robert Half, the recruitment consultancy, found that two-thirds of Americans would like
shorter working hours for corresponding lower pay. The average cut they would be
prepared to take rose from 13% in 1989 to 21% in 1996. The Merk Family Fund think
tank found in 1995 that 28% of Americans had, in the past five years, sacrificed at least
some working hours for more free time.
Employers are introducing some new approaches. These include "alternative work
schedules", which enable employees by working extra hours to build up an additional
leave day. These days are invariably used to make up a three day weekend. Some
companies are creating "time off" banks, which group together all potential time off;
vacation days, sick days and sometimes public holidays. Employees then diminish their
entitlement whenever they are away, regardless of the reason. Some enlightened firms
have introduced job sharing for professional employees, albeit on a very limited scale.
Another development, which illustrates the latent demand for more leisure time, is the
emergence of the "downshifter", the senior executive who opts for a less demanding
lifestyle with more time for himself.
Demographically, the fact that far more women now work in America is also changing
attitudes. In the dual income household family responsibilities make women more
resistant than men to long and, especially unpredictable, hours. In addition, dual income
couples find it more difficult to plan time off together for holidays. Divorce, leading to
complex responsibilities for children, also complicates holiday planning.
A further major demographic factor is the baby boomer generation, born between 1946 and
1964. Baby boomers have been much worse at saving than earlier generations. They have
counted heavily on the recent strength of the stock market to boost their future incomes
and now often find themselves the "sandwich" generation, struggling to meet continuing
education costs of their children and the rising bill for the health care of ageing parents. It
was once thought that this generation would retire early but recent polls suggest that most
expect to work on beyond 65. For the present, most boomers are still in the work force.
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Many work very long hours and stay healthy by jogging or going to the gym. So a
vacation trip with an activity component is very appealing. More easily accessible outdoor
activity products are being offered than ever before. As to their future travel preferences,
they are a very heterogeneous group, difficult to predict. These boomers, growing older,
more prosperous and more stressed, are increasingly aware that they have a surfeit of
"stuff" and not enough of the biggest luxury of all, free time. In a 1997 poll by Kurt
Salmon Associates 44% said that given the choice they would rather have more free time
than more money. Consumer analysis shows that boomers will spend an increasing
proportion of income on recreation and leisure, rather than on goods. Adjusting for
inflation, consumers' annual outlays for recreational services have risen 6% in each of the
past five years.
Retailers are responding by mixing goods and services to enhance the shopping
experience; bookshops with cafes and live music are a current example.
Cruise ship companies are promoting multi-generational experiences, which enable
extended families to enjoy quality time together, along with opportunities to enjoy
individual pursuits. An attractive offer for quick getaways, mixing self-improvement,
relaxation and entertainment.
Theme parks, conveniently located, also offer quick domestic breaks for families and new
developments, for example, Disneys Animal Kingdom safari park in Florida, provides to
some extent an alternative to overseas travel.
Special interests can motivate travel, but are more likely to impact frequency than trip
length. Most Americans have hobbies and/or belong to organisations or clubs: (bridge,
quilting, gardening etc).
The USA was ranked 1
st
in the world with 13.6% of global outbound tourism expenditure
in 1997. However, this understates the importance of American tourism because of the
strength of domestic tourism, which reflects the range of attractions and, comparatively
limited leisure time for lengthy trips.
In present economic circumstances there is unlikely in the short term to be any increase in
paid holiday entitlements and tourism growth among the employed is likely to be
particularly strong for short weekend and public holiday related breaks. This is likely to
favour domestic and other nearby destinations, rather than long haul travel. There has
been a move to shorter, more frequent breaks throughout the year, a rise in three day
weekends and a decline in long vacations, which may particularly affect long haul
destinations. The market will be increasingly looking for value for money and for short
vacations designed to make highly efficient use of limited leisure time.
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SECTION 4
ASIA PACIFIC REGION
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SECTION 4 ASIA PACIFIC REGION
4.1 AUSTRALIA
4.1.1 Key Facts
1997 2010 Projection
Population millions 18 20
% of Population over 60 *16 19
Labour Force millions 9 10
GDP per head US$ ppp 21,400 n/a
* 1996
Statutory Leave 20 days
Public Holidays 8 days
Retirement Age 65 Men 61 Women
1994 1995 1996 1997
Unemployment % 9.0 8.2 8.5 8.4
1980 to 1990 1990 to 1996 1997
Consumer Prices % Increase pa 7.9 2.4 1.0
1980 1996
Service Imports US$ millions 6,532 18,495
Travel as % of Total Service Imports 28.1 31.3
Value of Travel Imports US$ millions 1,835 5,789
Working Week 38 hours per week
Sources: World Bank, ILO, and Australian Bureau of Statistics
4.1.2 Working and Leisure Time
4.1.2.1 Overview
Australia is a federal state with jurisdiction for working time issues shared between the
federal and state levels of government. In recent years enterprise level negotiation of
employment terms has been encouraged so that agreements are tailored to suit the
particular work place. The intention has been to improve productivity and
competitiveness.
4.1.2.2 Trends
The general principle of a 38 hour week was established in 1983. Recent years have seen
some decrease in annual working hours due to increases in leave entitlements. More
flexibility of working hours has developed so that more efficient use is made of capital
equipment but at the same time employees can accumulate additional leave days, for
example, by working long shifts over periods of peak demand. There has also been a
trend towards part time work.
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4.1.2.3 Normal Hours of Work
Law: there is no general federal law on normal working hours, but 38 hours is
established as the norm. Working hours are determined by statute, collective agreements
and individual contracts.
Practice: the 38 hour, five day normal work week is widely established. Average hours
usually worked, including full and part time, for 1994, 1995 and 1996 were 34 hours per
week.
4.1.2.4 Paid Annual Leave
Law: the minimum national standard for most workers is four weeks paid leave after a
year of employment.
Practice: the generally accepted practice is four weeks annual leave. Private sector
workers in remote locations may have five weeks leave. In addition there is long leave.
The standard private sector entitlement for long leave is 13 weeks after 15 years. The
public sector offers broadly similar provisions.
4.1.2.5 Public Holidays
There are eight national public holidays. In addition there are up to three holidays at State
level.
1 January New Years Day 25 April ANZAC Day
26 January Australia Day 8 June Queens Birthday
Good Friday 25 December Christmas Day
Easter Monday 26 December Boxing Day
4.1.2.6 School Holidays
School holidays, which are settled at state level, are broadly as follows:
April 2 weeks September/October 2 weeks
July 2 weeks December/January 6 weeks
4.1.3 Retirement
4.1.3.1 Overview
Australias retirement income system consists of a means tested public pension scheme,
and a compulsory and voluntary occupational superannuation scheme. The aim is to
provide an adequate public safety net for those unable to support themselves in
retirement and at the same time encourage people who are able to save for their retirement
to do so. Assets in the current Australian superannuation system are reported to be
growing strongly and the system is far from maturity. Therefore, new retirees in 2005 are
expected to receive larger payouts than those currently retiring.
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4.1.3.2 Normal Retirement Age
The current statutory retirement age is 65 years for men and 61 years for women. The
actual retirement ages are 61 years and 56 years respectively. Policy measures include a
gradual increase in the pension age for women.
4.1.3.3 Early Retirement
Early retirement is being discouraged through incentives for those retiring later, including
the recently introduced pensioner bonus scheme, which gives a cash bonus for those
working beyond the official retirement age and deferring receipt of their pension.
4.1.3.4 Social Security Pension
The basic pension is a non-contributory scheme funded by Australian federal government
general revenues. The payment structure consists of a basic rate which varies with marital
status, to which a range of additional benefit payments may be added depending upon the
circumstances of the recipient. Over the last ten years, the government has placed greater
emphasis upon self-provision in retirement through occupational superannuation pension
schemes. In November 1995, 87% of full time workers, and 62% of part time workers,
were covered by superannuation schemes. The two forms of compulsory superannuation
contribution are those required under industrial agreements and those made as part of the
governments superannuation guarantee arrangements. Under voluntary superannuation
arrangements, employers, particularly large companies and a majority of public sector
employers, provide support over the guaranteed superannuation level. At present,
superannuation schemes supplement rather than replace the basic pension.
4.1.3.5 Private Pensions
Individuals are also able to contribute, via personal remittance or salary deduction, to a
personal superannuation fund with a financial institution, life insurance company or a
Retirement Savings Account. These contributions can often be made to the same fund as
compulsory superannuation contributions.
4.1.4 Employer and Trade Union Views on Leisure Time Trends
The Business Council of Australia advises that, since the early 1990s, labour law reforms
have facilitated a move away from traditional leave arrangements and towards agreements
at enterprise level. Therefore it is now open to employers and employees at collective or
individual level to alter the basis and the time when leave is taken, especially annual leave.
There are examples of leave being taken to correlate with family needs rather than simply
employer convenience. There are also examples of increased annual leave entitlements
arising from increases in hours worked or in spans of working hours.
There is also evidence of a growing use of opportunities to trade-off paid overtime for
leave-off-in-lieu, which may benefit domestic travel by increasing opportunities to take
long weekends. In this way an increase in overtime does not necessarily reduce aggregate
leisure time or the resources ultimately allocated to leisure or tourism.
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4.1.5 Tourism Profile
4.1.5.1 Outbound Tourism
Outbound tourism from Australia increased from 3.5 million trips in 1985 to 5.1 million in
1997, when the average expenditure per trip was in excess of US$1,100. It is estimated
that 46% of trips were leisure related, 25% VFR and 18% business related. Although the
East Asia / Pacific region attract the most tourists (49% of total trips), Europe (31% of
trips) and, to a lesser extent, the Americas (15% of trips) are of particular significance to
the Australian outbound market. 51% of trips were inter-regional, although there was
greater growth in intra-regional trips from 1985 to 1997. The leading ten destinations for
Australian tourists in 1996 are summarised in the table below.
Country Arrivals 000s Country Arrivals 000s
UK 655 Indonesia 380
France 463 Singapore 352
USA 461 Hong Kong 311
New Zealand 436 Thailand 215
Italy 417 Malaysia 150
Source: WTO
4.1.5.2 Domestic Tourism
Domestic tourism increased from 49 million trips in 1980 to 63 million trips in 1996. 36%
of trips were leisure related, 30% VFR and 17% business related. The average duration of
trips was 4 nights.
4.1.5.3 Employment in Tourism
Tourism was estimated to support over 1 million jobs, accounting for 12% of the work
force.
4.1.6 Leisure Time and Tourism: Industry View to 2005
Views of the Australian Federation of Travel Agents are as follows:
4.1.6.1 Socio Economic Factors
weekly and annual working hours are likely to increase as a result of longer working
days;

no change in the number of paid holidays, the number of public holidays or the
willingness to take full holiday entitlement;
no change in retirement age and income;

increased unemployment;

no change school holiday length, scheduling or the length of the school week;

rise in main holiday expenditure.
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4.1.6.2 Travel
increase in long haul, short haul and domestic trips to 2000, followed by stagnation;

increase in length of trips after 2000;

increase in package and all inclusive holidays up to 2000, but no increase in tailored and
independently organised holidays;
4.1.6.3 Accommodation
no significant change in accommodation preferences is expected.
4.1.6.4 Leisure Products
cruising and short break holidays are expected to be key growth markets.
4.1.7 Leisure Time and Tourism Conclusions
The continuing growth of short break additional holidays is likely to benefit the most
easily accessible domestic and short haul international destinations. As a particular
instance of this trend, the airlines have worked to develop domestic city short breaks. The
rise of dual income couples, together with increasing work pressures, longer working
hours and concerns about job security, are expected to result in shorter holidays.
The collapse in some inbound tourism markets from Asia led airlines to reduce or
eliminate services. This initially hindered outbound tourism, as did the weakening of the
currency.
4.2 CHINA
4.2.1 Key Facts
1997 2010 Projection
Population millions 1,227 1,349
% of Population over 60 *10 12
Labour Force *718 804
GDP per head US$ ppp 3,460 n/a
1996

Statutory Leave 10 days
Public Holidays 7 days
Retirement Age Men 60 Women 50
1997
Unemployment Estimate % 8 to 10
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1990 to 1996 1997
Consumer Prices % Increase pa 13.5 2.8
1980 1996
Service Imports US$ millions 2,024 25,585
Travel as % of Total Service Imports 3.3 19.8
Value of Travel Imports US$ millions 67 5,066
Working Week 40 hours per week
Sources: World Bank, ILO, China National Tourism Administration
4.2.2 Working and Leisure Time
4.2.2.1 Overview
Working hours, which are determined by statute, have steadily reduced in recent years.
4.2.2.2 Trends
Over the past three years the working week has reduced from six to five days and daily
working hours from 48 to 40.
4.2.2.3 Normal Working Hours
Since 1996 the normal working week has been eight hours a day and 40 hours a week.
4.2.2.4 Paid Annual Leave
Holiday entitlements are determined by statute. The average number of days paid holiday
is 10.
4.2.2.5 Public Holidays
There are seven national public holidays. There are no plans to change public holidays.
1 January New Years Day
January/February Spring Festival 3 days
1 May Labour Day
1 and 2 October National Days
4.2.2.6 School Holidays
No changes in school holidays are planned. School holidays are as follows:
January / February 15 days
July /September 60 days
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4.4.2.3 Retirement
4.2.3.1 Overview
There are moves to reduce the public expenditure cost of retirement provision by
encouraging private provision of support in old age. The old pension system, under which
employees relied on their employers for pension coverage, is giving way to a three party
arrangement where responsibility for pensions is shared between the state, employers and
individuals. Chinas demographics, reflecting the one child policy, make pension reform
a priority. The proportion of the population over 60 will increase to 22% by 2030.
4.2.3.2 Normal Retirement Age
The official retirement age is 60 for men and 50 for women. These are also the average
ages of actual retirement and no changes are planned.
4.2.3.3 Early Retirement
Early retirement is being encouraged.
4.2.3.4 Social Security Pension
It is expected that this will increase over the years to 2005.
4.2.3.5 Private Pensions
The new system being developed is expected to include provisions for private pensions.
4.2.4 Tourism Profile
4.2.4.1 Outbound Tourism
Outbound tourist trips from China increased from 0.5 million in 1985 to 5.9 million in
1997. China ranks 10th in the world, measured by outbound international tourism
expenditure, up from 40th in 1990. Outbound international tourism is dominated by intra-
regional trips to the East Asia and Pacific region (81% in 1997). This is followed by
Europe (12% of trips). The leading ten destinations for outbound Chinese tourists in 1996
are summarised in the following table.
Country Arrivals 000s Country Arrivals 000s
Hong Kong SAR 2,311 Japan 242
Macau 540 Singapore 227
Thailand 457 Korean Republic 200
Vietnam 378 Malaysia 136
Russian Federation 349 Germany 133
Source: WTO
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4.2.4.2 Domestic Tourism
Chinas domestic tourism increased from 0.4 billion trips in 1993 to 0.6 billion in 1996,
when the average expenditure per trip was US$64. Since the Asian economic crisis, which
resulted in a decline in regional visitors to China, the domestic market has been able to
take advantage of low occupancy in accommodation and other facilities planned for the
inbound market.
4.2.4.3 Employment in Tourism
International tourism to China is estimated to directly employ 1.2 million, with indirect
employment estimated at 6 million.
4.2.5 Leisure Time and Tourism Conclusions
The development of Chinese outbound tourism is still at an early stage, but the growth
potential is very great. At present Chinese nationals must nominate the country of
destination when applying for a passport, which is valid for one use only. The system
works more speedily for countries granted approved tourist destination status. At present
this status is enjoyed by six Asia Pacific countries. Among developed nations, Australia
has taken a lead in trying to capture an increased share of the Chinese market and has
three visa issuing offices in China. Some European countries have established a presence
to gather market intelligence and contacts with the trade.
China has strong economic growth potential. It also has the largest population in the
world and this is set to grow by 134 million or 11% to 1,349 million by 2010. Given
continuing moves to facilitate outward travel, the development of outbound tourism can
be expected to continue strongly. Domestic tourism is also expected to grow
significantly. However, in the short term there is concern about the impact of the
financial crisis in Asia.
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4.3 JAPAN
4.3.1 Key Facts
1997 2010 Projection
Population millions 126 127
% of Population over 60 *21 30
Labour Force millions 67 66
GDP per head US$ ppp 24,500 n/a
* 1996
Statutory Leave 10 to 20 days
Public Holidays 14 days
Retirement Age 65
1994 1995 1996 1997
Unemployment % 2.9 3.1 3.3 3.4
1980 to 1990 1990 to 1996 1997
Consumer Prices % Increase pa 1.7 1.1 1.7
1980 1996
Service Imports US$ millions 32,360 129,962
Travel as % of Total Service Imports 14.2 28.5
Value of Travel Imports US$ 4,595 37,039
Working Week 40 hours per week
Sources: World Bank, ILO, JNTO, and Sedgwick Noble Lowndes
4.3.2 Working and Leisure Time
4.3.2.1 Overview and Trends
The Japanese Government has made significant efforts to lower annual working hours. In
1986, with a six day, 48 hour week, extensive overtime and short leave entitlements
which were not fully utilised, actual annual working time averaged 2,104 hours, which by
far surpassed levels in all other industrialised countries. In 1987, the goal was set of
reducing annual hours worked to 1,800, through the gradual introduction of the 40 hour
week. The purpose of this shorter hours policy was not to reduce working hours in order
to resolve an unemployment problem, but rather to stimulate leisure related consumption
during the expanded non work hours and bring Japanese working time more into line with
Europe and North America.
By 1995, the 40 hour week had been achieved at 95% of establishments with 300 or more
employees. The difficulty is with smaller businesses, which have a continuing exemption
permitting a 46 hour working week. The Government has also promoted the introduction
of the five day working week to replace the six day week. By 1994 some 50% of all
employees enjoyed a regular five day week and some 90% a periodic five day week.
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4.3.2.2 Normal Hours of Work
Since 1987 the normal working week has been eight hours a day and 40 hours a week.
However, the weekly working time for large numbers of employees in smaller businesses
is still 44 hours, due to the exemptions mentioned previously.
4.3.2.3 Paid Annual Leave
Law: after one year of employment employees are entitled to 10 days paid leave. The
entitlement increases by one day each year, up to a maximum of a further 10 days.
Average paid holiday entitlement is 17.2 days.
Practice: up to 40% of paid leave is not taken. In order to pursue the official
government policy to reduce hours, companies tend to offer extra paid annual leave rather
than cut working hours. The average number of days of paid leave, which is actually
taken, is 9.5.
4.3.2.4 Public Holidays
There are 14 national public holidays. If one of these days falls on a Sunday, the
following Monday is a holiday.
1 January New Year's Day 5 May Children's Day
15 January Adults Day 15 September Aged Peoples Day
11 February Foundation Day September Autumnal Equinox Day
March Spring Equinox Day 10 October Sports Day
29 April Green's Day 3 November Culture Day
3 May Constitutional Memorial Day 23 November Labour Day
4 May Golden Week Holiday 23 December Emperors Birthday
4.3.2.5 School Holidays
At present the second and fourth Saturdays of each month are holidays. It is planned to
move fully to a five day school week. School holidays are generally as follows:
Easter: March / April 12 days
Summer: July to August 43 days
Christmas: December / January 14 days
4.3.3 Retirement
4.3.3.1 Overview
Social security pensions are normally supplemented by a lump sum at the end of lifetime
employment or on earlier termination of employment. The rapid ageing of the population
(at a higher rate than in any other developed country) presents Japan with a challenge at a
time of little or no economic growth. The finances of the social security system are being
strengthened through a gradual decrease in benefits and an increase in contributions. Low
economic growth has produced deficits in some of the countries pension funds.
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4.3.3.2 Normal Retirement Age
Both the national (flat rate) and the employee (earnings related) pensions are payable in
full from age 65.
4.3.3.3 Early Retirement
The national pension, for those employees not covered by employee pension insurance, is
payable from age 60 subject to an actuarial reduction. For employees covered by
employee pension insurance, a pension equal to the national pension may be payable from
age 60, but this provision is being phased out between 2003 and 2013.
4.3.3.4 Social Security Pension
In addition to a monthly national pension, there may also be entitlement to earnings
related benefit.
4.3.3.5 Private Pensions
Technically there is no such thing as normal retirement age in Japan for the corporate
employee. Teinen, which translates as "age limit", is widely used in employment
contracts and is set at 60 to avoid difficulty in discharging employees. But it signifies the
end of job security rather than retirement. Employees may remain on a short term basis or
take a job elsewhere.
Given the expectation of serious labour shortages in the medium term, and the rapidly
ageing population, the government wants to encourage later retirement. Reductions in
social security benefits, if they are taken before 65, have already been introduced.
Nevertheless, private corporations are encouraging earlier retirement as an aspect of
rationalisation. There is no retirement benefit (apart from social security) in the literal
sense. Instead there are "benefits at termination of employment". These are usually lump
sums, which are preferred to pensions or annuities and are paid at teinen.
4.3.4 Tourism Profile
4.3.4.1 Outbound Tourism
Outbound international tourism from Japan increased from 8.5 million trips in 1985 to 27.5
million trips in 1997. 83% of trips were leisure related and the average length of trips
remained constant at 8 days. Inter-regional trips (57% of the total) exceeded intra-regional
trips. 25% of trips were to Europe and 29% to the Americas. The leading ten destinations
for Japanese outbound tourists in 1996 are summarised in the table below.
Country Arrivals 000s Country Arrivals 000s
USA 5,183 Singapore 1,172
Hong Kong 2,383 Guam 1,029
Italy 2,174 Germany 801
China 1,549 Canada 650
Korean Republic 1,527 UK 595
Source: WTO
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4.3.4.2 Domestic Tourism
From 1990 to 1995, domestic tourism fluctuated from a high of 215 million trips (1991) to
a low of 187 million trips (1995 and 1996).
4.3.5 Leisure Time and Tourism: Industry Views to 2005
Views of the Japan Association of Travel Agents are as follows:
4.3.5.1 Socio Economic Factors
annual and weekly working hours may decrease, but no change is expected in paid
holidays;

a decrease is expected in the willingness to take full holiday entitlements;
in the short term, there may be an increase in unemployment and looking further ahead
retirement incomes may decrease;
no change in expenditure on main holidays until 2000, with a small increase in
additional holidays continuing through to 2005.
4.3.5.2 Travel, Length and Type of Holiday, and Accommodation
modest increases in long and short haul outbound travel up to 2000, with strong
increases thereafter;

some increase in domestic travel;
no change in the number of holidays, except for some growth in short breaks and quite
strong growth in extended weekends;
strong growth in independently organised holidays and some growth in tailored
holidays, but a decrease in all-inclusive holidays.
4.3.5.3 Leisure Products to 2000
among young people, growth in activity holidays, especially diving which is also
expected to grow in popularity with young couples and families;
the retired market is expected to show strong growth in special interest, wild life, eco-
tourism, cultural, learning and health tourism, with some growth in demand for golf,
walking and coach touring holidays;
no growth in gaming.
4.3.5.4 Leisure Products to 2005
beyond 2000 stronger growth among the young for skiing, particularly snow boarding,
learning, event related, multi-city tours, health and theme park holidays;
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steep decline in coach touring by the young, young couples and families, with some
increase among the retired;
increase by families in winter sun, beach, and self driving touring holidays, together
with a strong increase in walking and trekking, particularly by family members taking
holidays independently;
among the retired, strong growth in cruising and special interest holidays, with
significant growth also expected in golf, learning, cultural, wild life and other
ecological and health tourism.
4.3.6 Leisure Time and Tourism Conclusions
4.3.6.1 Leisure Time and the Economy
The Japan National Tourist Organisation's (JNTO) Report on Tourism in Japan 1996/7
addresses the question of leisure time and working hours. The report notes that achieving
a richer, more meaningful life for the Japanese people, by reducing working hours and
enhancing leisure time, is among the most important issues being addressed by the
government. It recalls the 1995 annual opinion poll on the people's lives, conducted by the
Prime Minister's Office. "Leisure" (at 35%) was the aspect of their lives that the Japanese
most desired to enrich in the future. This has been the case for 13 consecutive years.
However, studies by the Leisure Development Centre show a slight rise between 1996 and
1997 in the relative importance attributed to work rather than leisure.
JNTO recognises that tourism will be a key sector of the national economy in the next
century. Among many consequential recommendations to government, it includes the
need for action to spread holiday taking through the year to reduce peak period pressures
and make it easier for family members to take comparatively long holidays together. A
specific proposal is to combine public holidays with weekends to create three or four day
breaks. In 1998, on this basis, the government created two Happy Mondays, three day
weekends to stimulate travel and leisure related spending.
However, in May 1998, a Tokyo court ruled that Japanese workers must take holidays
when it suits their employers. The consequence is that many Japanese never take time off
outside the three peak holiday periods of the new year, Golden Week and the o-bon season
in August, when families return to their ancestral villages to tend graves. Companies often
close for these periods, so that employees take their annual leave when prices are highest
and resorts most congested
JNTO also recognises that, by encouraging outbound tourism, it is possible to reduce
unfavourable trade balances between some countries and Japan and suggests that special
consideration should be given to stimulating tourism to these countries.
It is widely anticipated that, to meet internationalisation and global competition, Japanese
corporations will restructure, rationalise and press for a more flexible labour market. The
Japanese Federation of Employers Associations has estimated that deregulation could
result in the loss of 10% of jobs in the leading sectors of the economy, reduced job
security and a significant rise in the rate of unemployment. If these developments take
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place they may add new life to the debate on how to achieve a better balance between
working life and leisure.
Professor Munehiko Harada, of Osaka University of Health and Sports Science, a leading
expert on leisure issues in Japan, has commented that the word "leisure" in Japanese
means "left over spare time". For many in Japan, this is regarded as time to recover from
the exhaustion of work and not yet as an opportunity for self-realisation and self-
expression. Professor Harada believes that a new leisure orientated class has emerged of
young people, homemakers and elderly people. These groups, with financial resources
and time to spare, have been setting the pace for trends in leisure. However, in the short
term, given the limited reductions in working time achieved over recent years, it seems
unlikely that there will be significant increases in leisure time. So for salary men,
opportunities for long haul leisure travel will continue to be severely restricted and shorter
domestic and intra-regional trips, often around weekends and public holidays, will remain
strong. In a more cost conscious Japanese market, the recent East Asian devaluations will
also strengthen the appeal of regional destinations. Nevertheless, the increasing numbers
of retired in a rapidly ageing society, and the increasingly adventurous young and the
office ladies, comparatively free from time constraints will continue to present marketing
opportunities for both intra-regional and long haul travel.
4.3.6.2 Tourism Prospects
The 1998 Japan Travel Bureau (JTB) report on Japanese overseas travel overseas noted
that 1997, characterised by poor economic performance and a weak yen, was not a
favourable year for the outbound travel industry. The JTB anticipated a further decline in
1998, with fewer tourists going abroad for the first time in eighteen years. Domestic travel
in summer 1998, showed slight growth both for low cost travel and at the luxury end of the
market. In the longer term JTB remains confident that, as the Japanese and Asian
economic problems are resolved, tourism in the region will recover fully early in the
coming century. The report notes that among reasons for not travelling abroad the most
important, cited by over 40% of people was "security concerns", followed by language
concerns at just under 40%. Despite an environment of diminishing travel costs, "costs too
much" was the third most important reason given for not travelling. Over 40% of middle
aged men claimed they were unable to take time off for travelling.
Protracted economic recession has lead to an intensifying mood of gloom, arising from
falling incomes, rising job insecurity and concern about pension funding, with some
company pension schemes significantly under funded. The national mood has been
characterised by a reluctance to travel overseas. Travel industry efforts to stimulate
demand by reducing package tour prices have had limited success. The sluggishness in the
Japanese outbound market is likely to continue in the short term. A positive factor for the
future is that those who have once travel overseas are inclined to continue to do so as they
get older. Given Japan's ageing society this should make for rising departure ratios in the
older age groups. Liberalisation of air travel between Japan and the USA is also expected
to result in cheaper air travel and stimulate outbound travel in the medium to long term.
JTB identify a number of preconditions for outbound growth:
economic recovery;
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development of packages and destinations which are attractive to the elderly market, the
future growth segment;
extension of Narita and Kansai international airports, which both reach saturation at
peak times;

development of more travel packages with a free time component;
expansion of lower cost air travel;

guaranteeing the safety and security of those travelling abroad;

countering the mistrust of travel agents.
JTB emphasise the importance of the travel industry catering for increasingly diverse
travel preferences which allow closer contact with the local lifestyle, culture and customs
and more contact with local people. In the case of packages substantial free time, mobile
phone rental, enhanced booking services and other features should be available. Internet
and convenience store terminals, to facilitate selection and booking, are expected to boost
sales, especially as more experienced and cost conscious travellers increasingly plan and
book their own travel and holiday arrangements.
Japanese guilt about being away from work is likely to be strengthened in the short term by
the economic difficulties. Work is a virtue and when growth resumes for those of working
age holidays are likely to continue to be focused on two to four day breaks, which fit well
when weekends and public holidays are combined. Leave of over four days is considered
long and more than half of overseas trips are under five days. Within the tourism industry
there are suggestions that, in the face of continuing Japanese reluctance to take holiday
entitlements, there should be some stronger requirement for people to take their holiday, as
one means of stimulating economic demand and encouraging renewed economic growth.
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4.4 KOREAN REPUBLIC
4.4.1 Key Facts
1997 2010 Projection
Population millions 46 50
% of Population over 60 *9 14
Labour Force millions 22 26
GDP per head US$ ppp 13,700 n/a
* 1996
Statutory Leave 22 days
Public Holidays 18 days
Retirement Age 60
1994 1995 1996
Unemployment % 2.4 2.0 2.0
1980 to 1990 1990 to 1995 1996
Consumer Prices % Increase pa 4.9 5.8 5.0
1980 1996
Service Imports US$ millions 4,089 32,154
Travel as % of Total Service Imports 8.6 23.3
Value of Travel Imports US$ millions 352 7,492
Working Week 44 hours per week
Sources: World Bank, ILO, and Korean Ministry of Culture and Sports
4.4.2 Working and Leisure Time
4.4.2.1 Overview
In the Republic of Korea working time is determined by collective bargaining and by
statute, The Labour Standards Law, which establishes hours of work, public holiday
arrangements and paid annual leave. In 1989, weekly hours of work were reduced from
48 to 44. In some sectors hours actually worked are frequently higher than 44 because of
overtime. In practice Korean workers normally take only a relatively small proportion of
their legal entitlement to paid leave. In some sectors collective bargaining has reduced
the working week to 42 hours and in some other sectors a five day week has been
introduced, although the normal working week has been five and a half days.
4.4.2.2 Trends
Actual hours of work are still relatively high in comparison with developed industrialised
countries. Following the financial crisis, and acceptance of the IMF austerity programme,
the Government amended the Labour Law to reduce job security and introduce more
flexibility for the arrangement of working hours.
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4.4.2.3 Normal Hours of Work
Law: the Labour Standards Law provides that normal hours of work shall not exceed
eight hours per day and 44 hours per week.
Practice: the normal working week is five and a half days. Some manufacturing firms
have adopted alternate five day and six day working weeks.
4.4.2.4 Paid Annual Leave
In Korea there are two types of paid leave, which together are the equivalent of paid
annual leave in other countries:
Paid Annual Leave: ten days paid annual leave is granted after one year of service.
Employers are then required to grant an additional day of paid annual leave for each year
of service, to a maximum of 20 days.
Paid Monthly Leave: the law also entitles an employee to one day of paid leave per
month, which must be accumulated.
Combining annual and monthly leave, employees are legally entitled to a minimum of 22
days of paid annual leave per year, rising to 32 days after ten years service.
Practice: a sample survey of 360 enterprises in 1989 showed that employees actually
used an average of three days of their combined paid annual and monthly leave
entitlement. The reason is that many employees are paid premium wages when they work
on days on which they are entitled to paid leave, and prefer higher wages to free time. In
most establishments, three to six days special summer leave are granted in addition to
paid leave. According to the same survey, four days of paid summer leave are taken on
average. Paid holiday entitlement is expected to increase in future years.
4.4.2.5 Public Holidays
There are 18 public holidays in Korea. There are no plans to change the public holidays.
It is still relatively common for employees in smaller businesses to work on public
holidays and receive premium pay.
1 & 2 January New Year 6 June Memorial Day
Lunar New Year 3 days 17 July Constitution Day
1 March Independence Day 15 August Liberation Day
5 April Arbor Day September Thanksgiving Day 3 days
1 May Labour Day 3 October National Foundation Day
5 May Childrens Day 25 December Christmas Day
May Buddha's Birthday
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4.4.2.6 School Holidays
Spring: February 7 to 10 days
Summer: July/August 40 to 50 days
Winter: Dec/ Jan 40 to 50 days
There are no plans to change school holiday arrangements.
4.4.3 Retirement
Overview: the national pension scheme provides for a statutory scheme covering most
employees, based on employer and employee contributions.
Normal Retirement Age: the official retirement age for men and women is 60 but it is
expected to rise before 2000;
Early Retirement: there are moves to discourage early retirement;
Private Pensions: there are no moves to reduce the public expenditure cost of retirement
by encouraging private pension provision.
4.4.4 Tourism Profile
4.4.4.1 Outbound Tourism
Outbound tourism from Korea increased from 0.5 million trips in 1985 to 5.6 million trips
in 1997. 73% of tourist trips were to intra-regional destinations. The major inter-regional
destinations were the Americas (19% of all trips) and Europe (7% of all trips). The
average spend per trip was estimated to be approximately US$1,100. It is estimated that
51% of outbound trips are leisure related, 22% business related and 11% VFR. The
leading ten destinations for Korean tourists in 1996 are summarised in the table below.
Country Arrivals 000s Country Arrivals 000s
Japan 994 Singapore 385
USA 796 Indonesia 250
China 694 Australia 228
Thailand 489 Guam 195
Hong Kong 397 N Mariana Islands 188
Source: WTO
4.4.4.2 Domestic Tourism
In 1996, the average length of domestic tourist trips was three days and the average
expenditure per trip was US$314.
4.4.4.3 Employment in Tourism
It is estimated that, in 1994, tourism supported 2.2 million jobs.
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4.4.5 Leisure Time and Tourism: Industry View to 2005
The views of the Korean Association of Travel Agents are as follows:
4.4.5.1 Socio Economic
hours worked per year will decrease substantially through the period to 2005 with
some increase in paid holiday;
there will be no change in public holidays;
willingness to take full holiday entitlement will increase;
the retirement age will rise;
retirement income will increase;
school holidays will increase moderately in length and there will be more staggering of
these holidays;
real expenditure on holidays will increase, particularly on additional holidays.
4.4.5.2 Travel
long and short haul and domestic travel will increase;
main and additional holidays and extended weekends will increase;
the frequency of holidays will increase;
package, tailored and all-inclusive holidays will increase. Independently organised
holidays will increase substantially.
4.4.5.3 Accommodation
self-catering, hotels and apartotels demand will increase and second home based
holidays will increase substantially.
4.4.5.4 Leisure Products
growth is forecast for beach holidays, activity holidays, cultural trips, touring and
health holidays over the period to 2005. Young people, young couples, families and
independent family members are expected to be particularly interested in theme parks.
Young people are also expected to have a strong interest in learning holidays and city
touring.
the retired are expected to be enthusiastic about walking, trekking, golf, cruises and
health breaks.
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4.4.6 Leisure Time and Tourism Conclusions
Information collection was completed before the seriousness of the Asian economic
difficulties became evident. However, in 1993 the President warned about the weakening
work ethic and the danger of resulting national economic decline. The longer term impact
of the economic difficulties is unclear. However, the devaluation and the conditions
attached to the negotiated IMF loan are likely to inhibit any moves towards increased
leisure time for the immediate future and to reduce consumer confidence. The short term
economic prospects are likely to depress outbound travel. A January 1998 economic
austerity programme included discouragement of the promotion of overseas travel and a
campaign to encourage Koreans to stay at home for their holidays.
Korean GDP contracted significantly 1998 and a further shrinkage is widely forecast for
1999. The national motto is "export or die", but half of Korea's exports go to Asia, so
recovery is likely to be slow. Despite the effort put into export led growth OECD
predicted a rise in unemployment and a decline in domestic demand. Unemployment
benefits remain meagre.
With many companies cutting salaries of managers and professionals, some workers
working without pay and realisation that the old social contract of lifetime employment is
ended, the economic crisis has created social trauma, which will have lasting effects on
this deeply conservative society. Recovery of the outbound market is likely to be slow and
hesitant.
4.5 MALAYSIA
4.5.1 Key Facts
1997 2010 Projection
Population millions 20 26
% of Population over 60 *6 8
Labour Force millions 8 12
GDP per head US$ ppp 11,100 N/a
* 1996
Statutory Leave 8 days increasing to 16 days
Public Holidays 13 days
Retirement Age Men 55 Women 50 (Government Employees)
1996
Unemployment % 2.6
1980 to 1990 1990 to 1996 1996
Consumer Prices % Increase pa 2.6 4.2 36.0
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1980 1996
Service Imports US$ millions 2,957 14,442
Travel as % of Total Service Imports 24.5 16.0
Value of Travel Imports US$ millions 724 2,311
Working Week 44 hours per week
Sources: World Bank, ILO, and Malaysian Ministry of Culture, Arts and Tourism
4.5.2 Working and Leisure Time
4.5.2.1 Overview
Working hours are determined for the public sector by statute and for the private sector by
collective agreement or individual contract.
4.5.2.2 Normal Hours of Work
The Ministry advises that the hours of work have remained constant through 1995/1997 at
44 hours over a 5.5 day week. Some reduction in hours of work is expected in the longer
term, beyond 2000.
4.5.2.3 Paid Annual Leave
The Employment Act 1955 provides 8 days initially and 12 days after 2 - 5 years.
Thereafter up to a maximum of 16 days. The average paid holiday entitlement is 8 to 16
days and it is normally taken in full. In the longer term, beyond 2000, some increase in
holiday entitlement is expected.
4.5.2.4 Public Holidays
There are 13 public holidays. There are no plans for any increase in public holidays.
1 January New Years Day 6 June Pertuan Agongs Birthday
Chinese New Year 2 days 5 July Prophet Mohamads Birthday
Hari Raya Puasa 2 days 31 August National Day
April Awal Muharram October Deepavali
1 May Labour Day 25 December Christmas Day
May Wesak Day
4.5.2.5 School Holidays
January/February 1 week
May 1 week
September 3 weeks
November/January 7 weeks
There are no plans to change school holidays.
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4.5.3 Retirement
4.5.3.1 Overview
There are only retirement age provisions for government employees. These are contained
in the Employment Act 1955.
4.5.3.2 Normal Retirement Age
The official and actual ages for retirement of government employees are 55 for men and
50 for women. The pension is 50% of final salary.
4.5.3.3 Early Retirement
Early retirement is discouraged.
4.5.3.4 Private Pensions
There are moves to reduce the public expenditure cost of retirement provision by
encouraging private provision of support in old age.
4.5.4 Tourism Profile
4.5.4.1 Outbound Tourism
Outbound tourism from Malaysia increased from 1.4 million trips in 1985 to 3.6 million
trips in 1997. 90% was intra-regional travel within East Asia and the Pacific. Inter-
regional trips grew at a faster rate over the decade and the major destination regions were
Europe, followed by the Americas then South Asia. The leading ten destinations for
Malaysian tourists in 1996 are summarised in the table below.
Country Arrivals 000s Country Arrivals 000s
Thailand 1,056 Hong Kong 264
Brunei 720 Australia 134
Singapore 701 UK 131
Indonesia 393 USA 79
China 298 Taiwan 56
Source: WTO
4.5.4.2 Employment in Tourism
Direct employment in the tourism sector was estimated to be 135,000 in 1996.
4.5.5 Leisure Time and Tourism: Industry View to 2005
The views of the Malaysian Association of Tours and Travel Agents are set out below.
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4.5.5.1 Socio Economic
there may be an increase in working hours throughout the period;
there may be an increase in public holidays;
willingness to take full holiday entitlement may increase;
no increase in paid holiday is likely;
retirement age and income are not expected to change;
no change is expected in school holidays;
there may be some increase in expenditure on main holidays, especially later in the
longer term.
4.5.5.2 Accommodation
there may be some increase in demand for self catering and aparthotels, no change in
hotel demand, and a decrease in second home demand;
4.5.5.4 Leisure Products
earlier in the period there may be some increase in demand among the young for
learning, trekking, and theme parks. Increased demand for health related holidays is
expected from families, the young, those holidaying independently and the retired;
later in the period growth is expected among the young for self drive touring, cultural,
city touring and special interest holidays; among families for trekking, cultural holidays
and theme parks; among those holidaying independently for walking, learning and city
touring holidays. City touring is also expected to attract strong demand from the
retired, together with walking;
some decline in demand is expected among families for self drive touring, city touring,
beaches and cruises; among the retired a decline is expected in demand for cruises, golf,
learning, special interest and self drive touring.
4.5.6 Leisure Time and Tourism Conclusions
The regional economic crisis, and in particular Malaysias devaluation and policy of
imposing currency controls, is the most important factor shaping Malaysian tourism and
leisure. The controls impose tight restrictions on the amount of money travellers can take
out of the country.
In recent years the Malaysian outbound tourism market grew strongly, whilst domestic
holiday opportunities were neglected. The government has sought a stronger domestic
holiday market, less peaked to the traditional holidays and the present economic
difficulties may facilitate this. Against this background the recovery of outbound travel is
likely to be slow and hesitant.
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4.6 SINGAPORE
4.6.1 Key Facts
1997 2010 Projection
Population millions 3 3
% of Population over 60 *10 15
Labour Force millions 2 2
GDP per head US$ ppp 24,600 n/a
* 1996
Statutory Leave 7 days plus 1 day per year of service up to 14 days
Public Holidays 11 days
Retirement Age 62
1994 1995 1996 1997
Unemployment % 2.0 2.0 2.0 3.0
1980 to 1990 1990 to 1996 1997
Consumer Prices % Increase pa 1.6 2.4 1.8
1980 1996
Service Imports US$ millions 2,912 18,730
Travel as % of Total Service Imports 11.4 32.5
Value of Travel Imports US$ millions 332 6,087
Working Week 44 hours per week
Sources: World Bank, ILO, Singapore Tourism Promotion Board
4.6.2 Working and Leisure Time
4.6.2.1 Overview
Working hours are determined by collective agreements and individual contracts within
limits established by law.
4.6.2.2 Trends
The Singapore Tourism Board expects the number of days worked per week to decrease
over the period to 2005.
4.6.2.3 Normal Hours of Work
Law: 44 hours per week.
Practice: 47 hours per week was usually worked between 1994 and 1996.
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4.6.2.4 Paid Annual Leave
Law: seven days plus one per year of service up to 14 days.
Practice: typically fourteen days or less, with no change expected before 2005.
4.6.2.5 Public Holidays
There are 11 public holidays per year.
1 January New Year's Day 1 May Labour Day
Chinese New Year 2 days Vesak Day
Hari Raya Puasa 9 August National Day
Good Friday Deepavali
Hari Raya Haji 25 December Christmas Day
4.6.2.6 School Holidays
School holidays are outlined in the following table. In addition there are four one day
holidays.
March 5 days
June 20 days
September 5 days
December 25 days
4.6.3 Retirement
4.6.3.1 Overview
The Central Provident Fund is an individual compulsory savings scheme which
employees can draw on after the age of 55.
4.6.3.2 Normal Retirement Age
The official and actual age for retirement is 62 and is expected to rise over the years to
2005.
4.6.3.3 Early Retirement
There are no provisions for early retirement
4.6.3.6 Employer and Trade Union Views on Leisure Time Trends
The views of the National Trades Union Congress were as follows:
Although 35% of employees work a five day week, over 40% work 5 and a half or six
days per week. Annual leave of at least 15 days is enjoyed by 32% of the population,
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reflecting the shift of employment towards more highly skilled jobs. However, the
intensity of regional economic competition makes it likely that working hours will
increase;
the number of outbound departures by Singapore residents more than doubled between
1991 and 1996. This trend was expected to continue subject to the strength of the
economy and the strength of the Singapore dollar against other currencies in the region.
in response to a rapidly rising population, the retirement age has been raised from 60 to
62. The long term aim is to achieve a retirement age of 67. Although this might result
in less leisure travel, it may fuel more tourism among the retired by increasing income
levels.
4.6.4 Tourism Profile
Outbound tourism from Singapore has increased from 2.9 million trips in 1985 to 7.2
million trips in 1997. 95% were intra-regional trips to destinations within the East Asia
and Pacific region, although inter-regional trips increased at more than two and a half
times the rate of intra-regional between 1985 and 1997. The Americas (2.4% of trips) and
Europe (1.8%) were the major inter-regional destination regions. The leading ten
destinations for Singaporean tourists in 1996 are summarised in the following table.
Country Arrivals 000s Country Arrivals 000s
Malaysia 4,158 Australia 223
Indonesia 1,300 USA 113
Thailand 437 Taiwan 78
Hong Kong 350 Japan 51
China 286 Philippines 44
Source: WTO
4.6.5 Leisure Time and Tourism: Industry View to 2005
The National Association of Singapore Travel Agents views are summarised in the
following subsection.
4.6.5.1 Socio Economic Factors
weekly working hours may increase;
the age of retirement is expected to rise, with a possible fall in retirement income;
the length of the school week may increase;
real expenditure on main holidays may rise particularly later in the period to 2005.
4.6.5.2 Travel, Length and Type of Holiday, and Accommodation
short haul travel is expected to increase throughout the period with a lesser increase in
long haul travel;
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main holidays and, especially, short breaks are expected to grow, particularly towards
the end of the period, with some increase in the frequency of holidays;
package holidays are expected to decline, particularly towards the end of the period,
with corresponding growth of independently organised travel;
accommodation demand is expected to grow for hotels, particularly for apartotels.
There will be some growth in second homes.
4.6.5.3 Leisure Products
In the period to 2000:
demand from young people will be strong for beach, winter sun, skiing, diving and
trekking holidays and for self drive touring. Multi-city touring is expected to decline;
the pattern will be similar for young couples and for families. In addition, young
couples and families will favour cruising, with families also favouring theme parks;
independent family members will be particularly interested in winter sun, activity and
culturally based holidays;
the retired will be particularly interested in cruises, pilgrimages and golf.
In the period to 2005:
the pattern will be similar, with the strongest growth among the young and young
couples in activity holidays and continued decline in city touring;
the family market for activity holidays will also grow strongly, with similar growth for
theme parks;
beach, cruise, golf, city touring and theme park holidays will have the strongest appeal
for the retired.
4.6.5.4 Other Trends
travel by women will be a strong market segment;
travel by those with special needs will grow strongly;
opportunities for virtual reality experiences will further increase travel demand;
the key to travel growth in the future will be the easing of visa restrictions, especially by
China;
terrorism will have a negative effect on tourism;
service quality and value for money will be more important;
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training of staff will be a key requirement;
information technology will guide the fate of distribution and travel agents will have a
different profile in the future.
4.6.6 Leisure Time and Tourism Conclusions
Information collection was completed before the seriousness of the Asian economic
difficulties became evident. The majority of Singaporeans continue to work a five and a
half day week and the Trade Union Congress and National Association of Travel Agents
believe that working hours may increase. Statutory paid holiday is from seven to 14 days,
depending on length of service. The retirement age of 62 is set to rise to 67 in the long
term.
Singapore is a small island state, which provides many regional hub services, including
travel and tourism links. Singapore has suffered a sharp slowdown in economic growth
and increasing unemployment as a result of the Asian crisis. Response to the regional
difficulties has included efforts to encourage businesses to raise productivity and cut costs.
Singapore Airlines has steeply reduced many fares and reduced frequency and capacity on
many routes. Economic developments in Indonesia and Malaysia will be particularly
important for Singapore. No early economic upswing is expected and there is likely to be
a significant weakening in outbound tourism, perhaps relieved slightly by the comparative
strength within the region of the Singaporean dollar. The strong growth in outbound travel
of recent years was driven by economic growth. Future growth is expected towards the
end of the period to 2005 and principally in short breaks.
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SECTION 5
EUROPE, AFRICA AND THE MIDDLE EAST
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SECTION 5 EUROPE
5.1 AUSTRIA
5.1.1 Key Facts
1997 2010 Projection
Population millions 8 8
% of Population over 60 *19 23
Labour Force millions *4 4
GDP per head US$ ppp 21,400 n/a
* 1996
Statutory Leave 30 days
Public Holidays 13 days
Retirement Age Men 65 Women 60
1994 1995 1996 1997
Unemployment % 3.9 3.8 4.1 4.4
1980 to 1990 1990 to 1996 1997
Consumer Prices % Increase pa 3.2 3.1 1.3
1980 1996
Service Imports US$ millions 6,204 22,455
Travel as % of Total Service Imports 50.6 48.9
Value of Travel Imports US$ millions 3,139 10,980
Working Week 40 hours per week
Sources: World Bank, ILO, Austrian Federal Ministry of Economic Affairs, Sedgwick
Noble Lowndes
5.1.2 Working and Leisure Time
5.1.2.1 Overview
Hours of work are regulated by law, to protect employees against excessive working
hours and to ensure adequate leisure time. Within the legal framework, hours of work are
determined by collective agreement and individual contract.
5.1.2.2 Normal Hours of Work
Law: the working day is eight hours and the working week is 40 hours, but there are
provisions for flexibility in applying these requirements.
Practice: between 1994 and 1996 the average hours worked per week were 34. Between
2000 and 2005 a decrease in working hours is expected.
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5.1.2.3 Paid Annual Leave
Statutory paid annual leave is five weeks, rising to six weeks after 25 years service.
Holiday taking is arranged by agreement between employer and employees. Collective
agreements usually provide for one extra months holiday pay. There is no right to sell
unused holiday for pay.
5.1.2.4 Public Holidays
There are 13 public holidays and no plans for change.
1 January New Year's Day 15 August Assumption Day
6 January Epiphany 26 October National Holiday
Easter Monday 1 November All Saint's Day
1 May National Holiday 8 December Immaculate
Conception
Ascension Day 25 December Christmas Day
Whit Monday 26 December Boxing Day
Corpus Christi
5.1.2.5 School Holidays
Christmas: December / January 2 weeks
Easter 1 week
Whitsun 1 week
Summer Holiday: June to early September 10 weeks
All Saints holiday - 1 and 2 November 2 days
School summer holidays are staggered by week by Austrian provincial governments. No
changes are anticipated in the pattern of school holidays.
5.1.3 Retirement
5.1.3.1 Overview
A comprehensive social security system, built on centralised collective agreements
provides good pension benefits. In 1998, qualification for early retirement was made
more difficult and the retirement age is to be gradually equalised to the higher age for men
by 2034. No increase is expected in the real disposable income of pensioners by 2000 but
an increase is expected by 2005.
5.1.3.2 Normal Retirement Age
The social security pension is payable from age 65 for men and 60 for women. The
average actual retirement ages are 58 for men and 56 for women.
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5.1.3.3 Early Retirement
Early retirement is being discouraged. The minimum contribution period has been
increased to 37.5 years.
5.1.3.4 Social Security Pension
The normal pension is payable subject to 15 years contributions. Based on national
average earnings, net pensioner income is 85% of net earnings.
5.1.3.5 Private Pensions
Only 10% of employees are members of employer's voluntary retirement plans. These are
mainly higher paid employees and the pension target of plans, inclusive of social security,
is 60% to 75 % of final earnings for a full career.
5.1.4 Trade Union Views on Leisure Time Trends
The views of the Osterreichischer Gewerkschaftsbund are as follows:
most collective agreements now provide for a 37.5 or 38 hour working week.
Reducing this is no longer an objective, especially with the increase in part-time work
which provides lower incomes;
employers are tending to employ people for shorter hours, in some cases on a basis
which falls outside the national insurance requirements;
some of the problems of under employment have been shifted to the social security
pension system;
trade unions recognise that falling numbers of jobs, and reduced working time, lead to
social problems and have therefore reduced their activity on work time reduction.
However, employers are seen to be anxious to reduce their labour costs as far as
possible and there is a danger of increasing numbers of part time workers and
unemployed who do not have the means to use their free time. A shortage of jobs for
the young also contributes to the growth of free time. This has been happening at a
time of worsening economic circumstances for many people.
5.1.5 Tourism Profile
5.1.5.1 Outbound Tourism
Outbound tourism from Austria increased from 4.8 million trips in 1985 to 12.8 million
trips in 1997. Intra-regional trips within Europe accounted for 94% of all trips, despite
this, inter-regional trips having increased at a faster rate. Major inter-regional destinations
were the Americas (2.4% of trips), East Asia and the Pacific (1.6%) and Africa (1.5%).
The average spend per trip in 1997 was US$790. It estimated that over 75% of outbound
tourist trips are leisure related. The leading ten destinations for Austrian tourists in 1996
are summarised in the table below.
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Country Arrivals 000s Country Arrivals 000s
Czech Rep 4,998 France 438
Hungary 2,291 Poland 389
Italy 1,618 Greece 360
Germany 632 Croatia 342
Spain 438 UK 262
Source: WTO
5.1.5.2 Domestic Tourism
Austrian domestic tourism demand has increased from 5.3 million trips in 1980 to 7
million trips in 1996 and is predicted to grow to 8.1 million trips by 2005. Average spend
per trip has fluctuated, with an overall increase from US$250 in 1980 to US$423 in 1996,
and a peak of US$448 in 1995. It is expected to rise to US$550 by 2005. Average length
of stay per trip has declined from 5.4 days in 1980 to 4.1 days in 1996. A marginal
decline to 4 days per trip is expected by 2005.
5.1.5.3 Employment in Tourism
Tourism was estimated to support 250,000 jobs, of which 184,000 were direct
employment, in 1996.
5.1.6 Leisure Time and Tourism: Industry Views to 2005
The views of the Association of Austrian Travel Agents and Tour Operators are as
follows:
5.1.6.1 Socio Economic Factors
no change in working time or in paid holiday is expected in the next few years but
some reduction in retirement income is expected, together with a rise in the age of
retirement;
no increase in expenditure on holidays is expected before 2000. After that there may
be some fall in expenditure on additional holidays.
5.1.6.2 Travel, Length of Holiday, and Accommodation
long haul and domestic travel are expected to remain at present levels, with a decrease
in short haul travel. No change is expected in main holidays, but some reduction in
short breaks and additional holidays is expected;
all inclusive holidays are expected to grow;
an increase in self-catering is expected.
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5.1.6.3 Leisure Products
demand by young people for beach, winter sun, diving, trekking and special interest
breaks is expected to increase. Young couples will increase demand for beach, winter
sun, touring and cultural holidays, with less interest in cruising and golf;
family interest in beach, self drive touring and theme parks will grow. Family
members taking holidays independently will increase demand for particular sporting
and cultural holidays;
among the retired, there will be increased demand for cruises, walking, coach touring,
cultural and health breaks.
5.1.7 Leisure Time and Tourism Conclusions
No increase in leisure time is expected in terms of shorter working hours, except among
the under employed or unemployed. The trade unions are not pressing for shorter
working hours or longer paid holiday. Their concern is more with maintaining good
quality, full time jobs.
Austrians have generous holiday entitlements and no trend towards shorter, more frequent
holidays is expected by the travel trade. Conversely, some decrease in additional holidays
and in short breaks is anticipated. A clear trend towards more active and culturally
oriented holidays is evident.
A 1997 government initiative to reduce pension benefits was strongly resisted by the trade
unions and agreement was reached on a basis that yields significantly lower savings than
the government wished.
5.2 FRANCE
5.2.1 Key Facts
1997 2010 Projection
Population millions 59 60
% of Population over 60 *20 23
Labour Force millions 26 27
GDP per head US$ ppp 22,700 n/a
1996
Statutory Leave 25 days
Public Holidays 11 days
Retirement Age 60
1994 1995 1996 1997
Unemployment % 12.3 11.6 12.3 12.4
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1980 to 1990 1990 to 1996 1997
Consumer Prices % Increase pa 5.8 2.1 1.1
1980 1996
Service Imports US$ millions 32,148 72,087
Travel as % of Total Service Imports 18.7 24.3
Value of Travel Imports US$ millions 6,012 17,517
Working Week 39 hours per week
Sources: World Bank, ILO, and Sedgwick Noble Lowndes
5.2.2 Working and Leisure Time
5.2.2.1 Overview
Working time is extensively regulated by the provisions of the consolidated Labour Code.
5.2.2.2 Trends
In 1982, the Government introduced a statutory 39 hour working week and increased
statutory paid annual leave from four to five weeks. These policies were designed to save
or create jobs by reducing working time during a recession, although the impact of the
measures on the unemployment figures proved difficult to establish.
In recent years measures have been introduced to allow new flexibilities in arranging
working time, particularly to cope with peak periods of demand by scheduling less than
normal working hours during periods of slack demand.
The Government has encouraged the reduction of working time as a means of sharing
work between those employed and the unemployed. Examples include reducing social
security contributions where firms reduce the working week and take on more workers,
providing financial incentives for taking on part time employees and reducing working
time in the public sector in order to maintain or increase employment. Financial
incentives are provided for early retirement of workers without significant loss of benefit.
During the 1990s a significant number of private enterprises have reduced working time
in order to reduce job losses, sometimes with linked salary reductions.
In February 1998, the National Assembly adopted a controversial law to reduce the
working week to 35 hours, without reduction in wages, from the year 2000. The intention
is to create a more humane working environment and increase employment. Employers
will benefit from a sliding scale of social security charge reductions depending how many
jobs are created. The new law has been strongly opposed by French employers, who
believe it is more likely to increase costs and reduce employment. Detailed provisions,
such as averaging hours over the year, flexibility and overtime pay, were left uncertain
pending further legislation. However, there are indications that one effect of the new
provisions may be to increase the flexibility of the work force.
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In July 1998 a Louis Harris poll showed that given the choice between working more and
earning more, or working less and earning less, 45% of French respondents prefer to work
less and earn less, compared with 38% who want to work more for more pay.
5.2.2.3 Normal Hours of Work
Law: the statutory working week is 39 hours per week and cannot exceed ten hours per
day. However, averaging schemes over eight to twelve weeks allow normal hours to
exceed 39 without payment of overtime if they are balanced by shorter hours in other
weeks. Previously the law gave financial incentives to encourage employers to reduce
working hours to 34 per week, to create employment.
Practice: normal hours of work vary between 35 to 39 hours per week.
5.2.2.4 Paid Annual Leave
Law: by law there is a minimum of five weeks of paid annual leave, with an additional
day if at least one week is taken outside the summer period (1 May to 31 October). The
periods for using paid annual leave are normally fixed by collective agreement and must
include the summer period.
Practice: paid annual leave varies between five and six weeks. Paid annual leave may be
increased over the statutory minimum of five weeks because of seniority, age or by
negotiation. Some collective agreements provide for a holiday pay bonus.
5.2.2.5 Public Holidays
There are 11 public holidays per year. It is customary if a public holiday falls two days
before or after a weekend to award the bridging day as a holiday, or if the holiday falls at
the weekend to award an extra day in lieu.
1 January New Year's Day 14 July Bastille Day
Easter Monday 15 August Assumption Day
1 May Labour Day 1 November All Saints Day
8 May Victory Day 1945 11 November Armistice Day 1918
Ascension 25 December Christmas Day
Whit Monday
5.2.2.6 School Holidays
Christmas: December to January 2 weeks
February 1 week
Easter 2 weeks
Summer: July to August 8 weeks
Autumn 1 week
School holidays are staggered by dividing the country into three zones, with varying dates
for the winter and spring holidays, designed to reduce travel congestion.
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5.2.3 Retirement
5.2.3.1 Overview
A generous social security system is based upon compulsory, collectively agreed
retirement plans. Recently high levels of unemployment, together with demographic
pressures, have forced the government to cut back social security retirement benefits and
increase contributions. Compulsory supplementary retirement plans have also been
introduced to increase contributions and reduce benefits.
5.2.3.2 Normal Retirement Age
The full social security pension is payable from age 60 at the earliest, subject to 38.5 years
contributions. This is to be increased to 40 years contributions by 2003. Otherwise a
modified pension is payable, depending on age at retirement.
5.2.3.3 Early Retirement
Early retirement is possible from age 60, subject to reduction for any shortfall in
contributions. Other provisions cover cases where the employer agrees to hire a
replacement.
5.2.3.4 Value of Social Security Pension
The full pension is equal to 50% of assessable earnings. There are compulsory
arrangements whereby all businesses operating in France are required to participate in an
industry pension plan, to which employers and employees contribute.
5.2.3.5 Private Pensions
Recent cutbacks in the prospective social security pension and the financial pressure on
the compulsory industry systems have gradually eroded pension expectations. Projections
indicate that the average aggregate pension, inclusive of the social security pension, for a
forty year working career will be 40% to 45 % of final earnings for management level
staff. Some years ago the expectation might have been of an aggregate pension in the
region of 70%. A 1997 law on private pension funds encourages the establishment of
retirement funds by employers for their employees.
5.2.4 Trade Union Views on Leisure Time Trends
The Confederation Francaise Democratique du Travail advises that the available statistics,
which cover stays exceeding four nights and do not distinguish business-related travel
from travel for other purposes, do not give a clear picture. In the absence of information
on the reasons why people do not take holidays, the CFDT find it impossible to formulate
a leisure time policy.
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5.2.5 Tourism Profile
5.2.5.1 Outbound Tourism
Outbound tourism from France increased from 14.3 million trips in 1985 to 22.3 million
trips in 1997. 72% of outbound trips were within Europe. The other leading destination
regions were the Americas (11% of trips) and Africa (9% of trips). Inter-regional trips
increased at over three times the rate of intra-regional trips from 1985 to 1997, when they
accounted for 28% of all trips. The leading ten destinations for French outbound tourists
in 1996 are summarised in the table below.
Country Arrivals 000s Country Arrivals 000s
UK 3,705 Belgium 760
Spain 3,357 Tunisia 542
Italy 2,296 Morocco 500
USA 987 Canada 461
Germany 787 Martinique 380
Source: WTO
5.2.6 Leisure Time and Tourism: Industry Views to 2005
The Syndicat National des Agents de Voyages is not aware of any study having been
undertaken to analyse changes in leisure time and their effects on the tourism market. The
Syndicats overall view is that French outbound tourism is growing and that French policy
is to increase leisure time. To its knowledge, no analysis is available of the relationship
between these factors.
5.2.5 Leisure Time and Tourism Conclusions
France and was ranked 6th in the world with 4.4% of global outbound tourism expenditure
in 1997. However, this understates the importance of France as a tourism generator
because of the strength of domestic tourism.
Government initiatives have encouraged the reduction of working time through the sharing
of work between the employed and unemployed, increasing the numbers of people retiring
early and reducing the length of the working week.
The French have generous holiday entitlements and implementation of the 35 hour
working week in 2000 may increase the amount of leisure time available for holidays.
However, continuing anxiety about the level of unemployment, and changes in pension
provision, suggest that any growth in holiday taking will be modest.
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5.3 GERMANY
5.3.1 Key Facts
1997 2010 Projection
Population millions 82 81
% of Population over 60 *21 25
Labour Force millions 39 40
GDP per head US$ ppp 20,800 n/a
* 1996
Statutory Leave 24 days
Public Holidays 9 to 13 days
Retirement Age 65
1994 1995 1996 1997
Unemployment % 8.4 8.2 9.0 12.0
1980 to 1990 1990 to 1996 1997
Consumer Prices % Increase pa 2.2 3.3 1.8
1980 1996
Service Imports US$ millions 42,378 128,060
Travel as % of Total Service Imports 41.2 39.7
Value of Travel Imports US$ millions 17,460 50,840
Working Week 40 hours per week
Sources: World Bank, ILO, German National Tourist Board, and Sedgwick Noble
Lowndes
*GDP in 1996 adjusted for PPP
5.3.2 Working and Leisure Time
5.3.2.1 Overview
Traditionally harmonious industrial relations have been built on a sophisticated system of
collective bargaining and strong co-determination through board representation and works
councils. Working hours, holidays and other conditions of employment are settled in
collective agreements which, once signed, have the force of law.
5.3.2.2 Trends
Unemployment has risen to record levels and the social security budget is under severe
cost pressures. This has stimulated debate over aspects of the German social-market
model, including social welfare costs.
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5.3.2.3 Normal Hours of Work
Law: the statutory maximum working week is 40 hours
Practice: the average working week is 37 hours in the western Lander and 39 hours in
the eastern Lander.
5.3.2.4 Paid Annual Leave
Law: the statutory entitlement is 24 working days.
Practice: the average annual paid leave is six weeks, with at least five weeks being
almost universal. Collective or works agreements detail the timing of holidays. Most
employees are entitled to some form of additional holiday pay. Any right to cash in
holidays for pay depends on collective agreement.
5.3.2.5 Public Holidays
There are 9 to 13 public holidays depending on the region
1 January New Year Whit Monday
6 January Epiphany 23 June Corpus Christi
Good Friday 3 October German Unity Day
Easter Monday 1 November All Saints
1 May May Holiday 16 November Repentance Day
Ascension Day 24 & 25 December Christmas
5.3.2.6 School Holidays
School holidays are the responsibility of the 16 federal states of Germany and vary in
each state. To avoid traffic jams, especially in the summer holiday season, but also for
some other school holidays, there is a rotation system among the states governing the
beginning and end of school holidays. School holidays are broadly as follows:
December and January 10 days
February 10 days
Easter 15 days
Whitsun 5 days
Summer 30 days
5.3.3 Retirement
5.3.3.1 Overview
Employees are covered by a comprehensive and generous social security system which is
frequently supplemented by employer sponsored plans. Contribution rates for retirement
pensions have recently been increased and a new formula for pension calculation may
result in lower pensions. The social security system remains under severe cost pressure.
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5.3.3.2 Normal Retirement Age
The social security pension is payable from age 65.
5.3.3.3 Early Retirement
Subject to 35 years insurance contributions, early retirement is available from age 62,
subject to proportionate reduction. Previously early retirement had been available from
age 63 without reduction.
5.3.3.4 Social Security Pension
The full pension is normally between 40% and 45% of final earnings.
5.3.3.5 Private Pensions
Until recently, a customary level of retirement pension including private plans suitably
integrated with a social security pension, was in the range 60% to 70% of final average
earnings. Most private pension plans were wholly financed by employers. More recently,
in the midst of rising labour costs, employers have sought to trim their pension plans and
to encourage employees to share the cost through deferred salary arrangements.
5.3.3.6 Employer and Trade Union Views on Leisure Time Trends
Many German employers have long been concerned at the high level of non-wage
employment costs. Industrialist Josef Gerstner commented in July 1998 that "Markets are
moving away from Germany, away from Europe. And Germany has problems, high
salaries, long vacation times, which means companies like mine that want to grow go to
other countries". .A chemical industry study in 1996 showed that non-wage employment
costs, including holidays and pensions, were an additional 98% of actual wage costs.
Former Chancellor, Helmut Kohl, also expressed anxiety at high labour costs in Germany.
The views of the trade union confederation, DGB Bundesvorstand, are as follows:
it fully supports shortening working hours as a means of achieving the three goals it
strives for: creating jobs, making work more humane and adapting work to society;

the old standards for employment designed for full time male employment are breaking
down. Standards of social protection are now needed to meet the needs of combining
family and job. Flexibility in working hours is needed so that individuals can vary
working times according to circumstances. Work schedules should be designed more
flexibly, so that individual needs can be met;

more time, shorter working hours and adequate annual leave, is needed for genuine
leisure. Too little free time makes people ill. Work must be adapted to the wishes of
the family, not the reverse. The steady increase in productivity ought to lead to
improvements in working and living conditions for the people.
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5.3.4 Tourism Profile
5.3.4.1 Outbound Tourism
Outbound tourism from Germany increased from 44 million trips in 1985 to 68 million
trips in 1997, with declines in the early 1990s and 1997. Inter-regional trips increased at
four times the rate of intra-regional trips, but 89% of all trips were to European
destinations in 1997. The other major destination regions were the Americas (5.1% of
trips), Africa (2.4%), and East Asia and the Pacific (2.4% of trips). It is estimated that
leisure related demand accounted for 86% of trips, compared with 9% business related
and 4% VFR. The leading ten destinations for German tourists in 1996 are summarised in
the table below.
Country Arrivals 000s Country Arrivals 000s
France 13,378 USA 1,997
Spain 10,028 Tunisia 808
Austria 9,877 Canada 454
Italy 8,463 Egypt 437
Poland 6,660 Thailand 354
Source: WTO
5.3.4.2 Domestic Tourism
German domestic tourism has fluctuated in the 1990s, ranging from 90 million trips in
1990 and 1996 to a peak of 118 million trips in 1991. It is estimated that 51% of domestic
trips were leisure related, 24% business related and 24% VFR.
5.3.4.3 Employment in Tourism
Tourism was estimated to support a total workforce of 2.4 million in 1994.
5.3.5 Leisure Time and Tourism: Industry Views to 2005
The views of Deutscher Reisebro Verband are as follows:
5.3.5.1 Socio Economic factors
there may be some reduction in working hours over the period, but any increase in
holidays would only be towards 2005;
willingness to take full holiday entitlement may decrease, particularly in the short term;
the retirement age may rise after 2000 and a fall in retirement income is possible;

real expenditure on holidays is expected to decrease, particularly on additional
holidays.

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5.3.5.2 Travel, Length and Type of Holiday, and Accommodation

any increase in travel is likely to be long haul, with a possible fall in domestic tourism;

main holidays are not expected to change, but additional holidays may decrease.

some decrease in frequency of holidays may result in the short term;

tailored and all inclusive holidays are expected to increase;

there may be an increase in self-catering, rather than hotel, accommodation demand in
the short term.
5.3.5.3 Leisure Products
among the young, winter sun and a wide variety of activity, cultural, special interest
and ecological breaks are expected to grow, together with trips to theme parks. There
may be a decrease in walking, skiing and coach touring holidays;

a similar pattern is expected among young couples and families;

independent family members are expected to increase demand for sport, event related,
special interest and theme park trips;

among the retired, growth is expected in event and health related trips;

beach holiday demand is expected to remain static or decline, particularly among the
young and the retired.
5.3.6 Leisure Time and Tourism Conclusions
The Germans enjoy generous holiday entitlements but no increase in holidays is expected
by the travel trade, which envisages a possible fall in additional holidays and in the
willingness to take full holiday entitlements in the short term. There may also be a fall in
incomes in the important pensioner market. Nevertheless, the trade unions wish leisure
time to continue to grow and be adapted to family needs, so that increasing productivity
contributes to improving the quality of life of employees.
The continuing debate in Germany on the need for change in the welfare system, as
contributions to the under funded pension scheme rose in 1998 to 21% of labour costs, is
likely to reduce confidence in retirement incomes. The need for a more flexible working
week has also been raised by employers. In September 1997, Jurgen Weber, chairman of
Lufthansa, said "It can't be that an employee in Germany has an average eight weeks
holidays and works less than forty hours a week. That exists nowhere else in the world".
In response, the airline union called for an alliance for jobs and compromise on pay and
working conditions in exchange for job guarantees. The need for wide ranging change,
including cuts in the state pension was urged in the 1997 OECD annual report on
Germany.
A further factor, consolidation within the German outbound holiday industry, may also
play its part in moulding future holiday patterns. The German holiday market is the
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biggest in Europe and consolidation towards a small number of giant, integrated holiday
companies, breaking down the divide between airline, tour operator, travel agent and
hotel, should yield economies of scale and generate increased sophistication of product
design to respond to changing market demand.
In these circumstances, although leisure time provision is good in Germany, it is unlikely
to increase for the employed, who may find increasing work pressures and may respond to
these by changing their approach to holidays. Equally, the retired may become more
cautious about leisure spending.
5.4 ITALY
5.4.1 Key Facts
1997 2010 Projection
Population millions 57 55
% of Population over 60 *22 26
Labour Force millions 23 24
GDP per head US$ ppp 21,500 n/a
* 1996
Statutory Leave 15 days; 20 from November 1999
Public Holidays 12 days
Retirement Age Men 65 Women 60
1994 1995 1996 1997
Unemployment % 11.4 11.9 12.0 12.2
1980 to 1990 1990 to 1996 1997
Consumer Prices % 9.1 4.8 1.9
1980 1996
Service Imports US$ millions 16,249 67,445
Travel as % of Total Service Imports 11.8 23.4
Value of Travel Imports US$ millions 1,917 15,782
Working Week 48 hours per week
Sources: World Bank, ILO, Italian State Tourist Board, and Sedgwick Noble Lowndes
5.4.2 Working and Leisure Time
5.4.2.1 Overview
A highly regulated labour market is underpinned by comprehensive social security
provision. Collective agreements play an important part in defining entitlements
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5.4.2.2 Trends
An agreement between the Government and trade unions will reduce working time to 35
hours per week. Although the government is committed to this step the employers'
organisation, Confindustria, has lobbied against it on the basis that it will exacerbate
inflexibility in the labour market and will not increase employment. Free time is expected
to increase as a result of this reduction and because of increasing flexibility in working
hours.
5.4.2.3 Normal Hours of Work
Law: 48 hours per week.
Practice: the average number of hours usually worked per week is 36.
5.4.2.4 Paid Annual Leave
Law: implementation of the European Union Working Time Directive has established
legal entitlements.
Practice: 30 days, specified in collective agreements or agreed contractually. The
entitlement may increase with seniority. Larger employers must consult with employees
on an annual leave plan. All leave is normally taken. Some collective agreements give a
holiday bonus. Unused leave may not be cashed in and taken as pay.
5.4.2.5 Public Holidays
There are twelve public holidays per year and no changes are expected.
1 January New Years Day 15 August Assumption
6 January Epiphany 1 November All Saints
Easter Sunday 8 December Immaculate Conception
Easter Monday 25 & 26 December Christmas
25 April Liberation day Local Saints Days
1 May Labour Day
5.4.2.6 School Holidays
Christmas: December and January 2 weeks
Easter 1 week
Summer: June to August 11 weeks
There are moves to end Saturday school and proportionately reduce the summer holiday.
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5.4.3 Retirement
5.4.3.1 Overview
Changes to the social security system have been lowering pension expectations and
progressively delaying the retirement age and increasing contributions.
5.4.3.2 Normal Retirement Age
Pensions are normally payable to men from age 65 and to women from age 60. The
average actual retirement age for men and women is now 57.
5.4.3.3 Early Retirement
A full pension may be paid at age 57 to someone not in employment. Under
supplementary provisions applying to managers, early retirement is possible at age 47 (to
be increased gradually), subject to reduced benefit.
5.4.3.4 Social Security Pension
The pension is calculated on the basis of assessable earnings, subject to a specified
contribution period.
5.4.3.5 Private Pensions
Changes in the social security pension are creating interest in more private provision.
5.4.4 Employer Views On Leisure Time Trends
Confindustria, the representative body of Italian employers, consulted its member
Federation of Tourism, and commented as follows:
action to reduce unemployment has high priority and the government is legislating to
reduce the working week from 40 to 35 hours. Italian holidays are closely linked to
school holidays. The dates are set by the regions, which are being given more
autonomy to decide the organisation of school hours and holidays;
family holidays are taken between June and August and so are very seasonally peaked.
Other holidays are two weeks at Christmas and one week at Easter. There is also white
week, mountain holidays at the end of winter, which take place in the school year;
the summer peaking of holidays is aggravated by manufacturing industry closing
factories in August;
pension changes are raising the age at which people can retire, and increasing pension
contributions;
there is a trend to short but more frequent holidays, with growth in weekend city,
cultural, cycling, riding and health trips.
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5.4.5 Tourism Profile
5.4.5.1 Outbound Tourism
Outbound tourism from Italy increased from 9.2 million trips in 1985 to 15.4 million trips
in 1997. 79% of trips were to destinations within Europe, followed by the Americas
(9.6%), Africa (4.3%) and East Asia and the Pacific (3.3%). Inter-regional trips have
increased at almost four times the rate of intra-regional destinations since 1985. The
leading ten destinations for Italian tourists in 1996 are summarised in the table below.
Country Arrivals 000s Country Arrivals 000s
France 5,299 USA 525
Spain 2,166 Egypt 366
UK 932 Tunisia 270
Austria 856 Cuba 192
Germany 829 Brazil 119
Source: WTO
The average spend per trip was estimated to be over US$1,000 in 1996 and the average
length of stay 5 days, up from an average of 3.8 days in 1980. 54% of trips were leisure
related, 23% business related and 11% VFR. The number of outbound trips is expected to
decline to 15.5 million by 2005 and the average length of stay increase to 5.7 days.
5.4.4.2 Domestic Tourism
Domestic tourism increased from 30 million trips in 1980 to 40 million trips in 1996. The
average length of stay was 4.3 days. 48% of trips were leisure related, 32% business
related and 10% VFR. Domestic tourism trips are expected to increase to 44 million by
2005, with a further small decrease in the average length of stay to 4.2 days.
5.4.4.3 Employment in Tourism
Tourism is estimated to have supported 1.76 million jobs in 1996, of which 61% was
direct employment. Total tourism employment is expected to increase to 1.82 million by
2005.
5.4.5 Leisure Time and Tourism: Industry Views
The views of the Association of Italian Tour Operators were as follows:
5.4.5.1 Socio Economic Factors
by 2000 the retirement age is expected to have risen and there may be a decrease in
retirement income;
there may be an increase in expenditure on main holidays and a decrease in working
hours per week;
by 2005 there is a stronger expectation that the retirement age will have risen and
retirement income decreased;
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it is also expected that the working week will be shorter and that expenditure on main
and additional holidays will rise.
5.4.5.2 Travel, Length and Type of Holiday, and Accommodation
whilst there may be increases in all forms of travel by 2000 there is greater confidence
in a rise after that date, especially to short haul destinations;
any increase in holidays in the short term is expected to be in extended weekends, with
more confidence in an increase in additional holidays and short breaks as well as
extended weekends from 2000;
an increase in all-inclusive holidays is expected in the years to 2000, with a possible
fall in tailored holidays. Both package and all inclusive holidays are expected to grow
more strongly after 2000;
the fastest growth of accommodation demand is expected to continue to be for
bungalow resorts, with more modest growth in hotel demand.
5.4.5.3 Leisure Products
to 2000 demand from young people and young couples is expected to grow most
strongly for beach holidays, with skiing also strong among the young. Other activity
based holidays will also do well with these groups;
growth in family demand is expected for beach, cruise, winter sun and skiing;
growth in demand for beach, cruise, winter sun, health and diving holidays is expected
from family members on holiday independently;
demand from retired people will rise for cruise, winter sun and health based holidays;
between 2000 and 2005, stronger growth in demand is expected, continuing on the
same lines but with some rise in ecological holidays and theme parks.
5.4.6 Leisure Time and Tourism Conclusions
Italians enjoy a high level of paid and public holidays, even by European standards.
Following enactment into Italian law of the European Community Working Time
Directive, minimum paid holiday entitlements have a statutory basis.
The Italian Tourist Board advises that by 2005 there may be some decrease in paid holiday
entitlements and therefore in the number of days holiday taken.
The Association of Italian Tour Operators, while cautious about the prospects to 2000,
expects the market to strengthen in the years to 2005. Throughout the period growth is
mainly expected in additional holidays, short breaks and extended weekends.
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5.5 NETHERLANDS
5.5.1 Key facts
1997 2010 Projection
Population millions 16 16
% of Population over 60 *18 22
Labour Force millions 7 7
GDP per head US$ 22,000 N/a
* 1996
Statutory Leave 20 days
Public Holidays 8 days
Retirement Age 65
1994 1995 1996 1997
Unemployment % 7.1 7.0 6.6 6.9
1980 to 1990 1990 to 1996 1997
Consumer Prices % Increase pa 2.0 2.6 2.0
1980 1996
Service Imports US$ millions 18,148 45,736
Travel as % of Total Service Imports 26.6 25.2
Value of Travel Imports US$ millions 4,827 11,525
Working Week 48 hours per week
Sources: World Bank, ILO, Dutch Tourist Board, and Sedgwick Noble Lowndes
5.5.2 Working and Leisure Time
5.5.2.1 Overview
Working hours are determined by statute and collective agreements.
5.5.2.2 Trends
There is a strong trend towards dual income households with a large increase in part time
work by women.
5.5.2.3 Normal Working Hours
Law: statutory hours of work are 48 per week.
Practice: the average number of hours usually worked per week over the years 1993 to
1995 was 38.
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5.5.2.4 Paid Annual Leave
Law: the legal entitlement is 20 days. A statutory minimum holiday bonus of 8% of
annual pay is payable. Employees have a right to two consecutive weeks between May
and October.
Practice: the actual average number of days of paid annual leave is 25, of which an
average of 24.5 are taken. Holiday arrangements are settled by collective agreement or by
the employer in consultation. Some employers allow senior staff to cash in entitlements
for pay. Employees cannot be forced to cash in untaken holiday entitlement. The trade
unions want the right to cash in the five days holiday, in excess of the statutory
entitlement in most collective agreements.
5.5.2.5 Public Holidays
There are eight public holidays -
1 January New Year's Day Easter Monday
Good Friday Whit Monday
End of April Queens Birthday 25 & 26 December Christmas
Ascension Day
5.5.2.6 School Holidays
Spring Holidays: February / March 5 days
May Holiday: April / May 5 days
Summer Holidays: July & August 30 days
Autumn Holiday: October 5 days
Christmas Holiday: December / January 10 days
5.5.3 Retirement
5.5.3.1 Overview
Conditions of employment are set by collective agreements. Social security provides only
relatively modest flat rate retirement pensions but industry wide or company pensions
adequately supplement these.
5.5.3.2 Normal Retirement Age
The social security pension has a normal retirement age of 65. Most employees are
covered also by company provisions integrated with the social security pension.
5.5.3.3 Early Retirement
The average age of retirement for men is 62.5 and for women 61. An increase in the
actual retirement age is expected by 2000 and early retirement is being discouraged.
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5.5.3.4 Social Security Pension
Net pension income, based on national average earnings, is 70% of net earnings. No
change in the comparative real disposable income of pensioners is foreseen.
5.5.4 Tourism Profile
5.5.4.1 Outbound Tourism
Outbound tourism from the Netherlands increased from 13 million trips in 1985 to 16
million trips in 1997, significantly below the 22 million trips in 1996. Despite inter-
regional travel increasing at more than ten times the rate of intra-regional trips, over 88%
of trips were to destinations in Europe in 1997. Europe was followed by the Americas
(6.3% of trips), East Asia and the Pacific (3.2%) and Africa (1.4%). The leading ten
destinations for Dutch tourists in 1996 are summarised in the table below.
Country Arrivals 000s Country Arrivals 000s
France 8,115 USA 440
Spain 2,340 Indonesia 122
Germany 2,332 Canada 117
UK 1,541 Venezuela 81
Belgium 1,423 Tunisia 72
Source: WTO
In 1996, the average duration of trip was 11.8 days, down from 12.7 days in 1990.
Leisure related tourism trips are expected to increase to 13.5 million by 2005, with a
further decline in the average length of stay to 11.5 days.
5.5.4.2 Domestic Tourism
Dutch domestic leisure tourism has increased from 14.6 million trips in 1990 to 17.0
million trips in 1996. The average length of stay reduced from 6.9 days to 6.6 days over
the same period. The number of trips is expected to increase to 18.5 million by 2005.
5.5.4.3 Employment in Tourism
Tourism was estimated to support 213,000 jobs, of which 75% was direct employment, in
1995. Total tourism related employment is projected to increase to 239,000 by 2005.
5.5.5 Leisure Time and Tourism: Industry Views to 2005
The views of the Netherlands Association of Tour Operators were as follows:
some reduction in working hours is foreseen, at least by 2005, together with an
increase in paid holidays;

the retirement age is expected to rise, but with no rise in retirement income before
2005;

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no significant rise in holiday expenditure is likely in the short term, but there is more
confidence of increased spending on additional than on main holidays;

long haul travel is expected to increase more rapidly than short haul or domestic travel;

the length of main holidays is expected to decrease;

the frequency of holidays is expected to increase throughout the period;

some growth is expected in package holidays and more in tailored holidays towards the
end of the period;

demand for self-catering, apartotel and second home accommodation is expected to
grow rather than hotels, which may perform better later in the period.
5.5.6 Leisure Time and Tourism Conclusions
The Dutch have generous holiday provisions, but there are indications that only 30% of
holiday entitlements are actually spent on taking holidays away from home. Increases in
self-employment and more flexible work regimes may be among the factors which are
leading to shorter holidays and also to discussion in the Netherlands on whether they have
too much holiday. The trade unions support the right for employees to cash in the five
days holiday over the legal minimum of 20 days. Against this background there is
unlikely to be any increase in paid holiday leave in the Netherlands in the near future.
5.6 SWEDEN
5.6.1 Key Facts
1997 2010 Projection
Population millions 9 9
% of Population over 60 *22 26
Labour Force millions 5 5
GDP per head US$ 19,700 n/a
* 1996
Statutory Leave 25 days
Public Holidays 11 days
Retirement Age 65 for men; 62 for women
1994 1995 1996 1997
Unemployment % 9.8 9.2 10.0 6.6
1980 to 1990 1990 to 1996 1997
Consumer Prices % Increase pa 7.0 3.4 2.0
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1980 1996
Service Imports US$ millions 7,018 18,755
Travel as % of Total Service Imports 31.6 33.3
Value of Travel Imports US$ millions 2,218 6,245
Working Week 40 hours per week
Sources: World Bank, ILO, Swedish Tourist Authority, and Sedgwick Noble Lowndes
5.6.2 Working and Leisure Time
5.6.2.1 Overview
Sweden has a 40 hour working week. The Hours of Work Act 1983 governs working
time issues, and can be modified by collective agreements. Collective agreements in the
major sectors provide for a five day working week.
5.6.2.2 Trends
Flexibility, in terms of individual choice of working time, is especially pronounced.
Traditionally paid annual leave was scheduled for July but now trade union resistance to
keeping production lines running for at least two weeks in July has reduced. There has
been concern in Sweden that actual hours of work have been significantly lower than in
many European countries due to various forms of special leave and absenteeism. As a
result there has been an effort to increase actual annual working hours. The extension of
different forms of leave has stopped and in some cases leave has been reduced and sick
leave provisions tightened.
5.6.2.3 Normal Working Hours
Law: normal weekly working hours are 40, after which overtime must be paid.
Practice: normal weekly working time, pursuant to collective agreements, varies
between 35 and 40 hours.
5.6.2.4 Paid Annual Leave
Law: statutory annual leave is a minimum of 25 days and employees are entitled to
holiday pay equal to about 13% of the previous years earnings. All paid annual leave in
excess of 20 days can be carried forward over a maximum of five years in order to allow
the employee the chance to take a longer period of paid annual leave at a later time.
Employees are entitled to four consecutive weeks leave over June to August, unless
otherwise agreed. Employers must consult with employees over holiday arrangements.
Leave may not be cashed in for pay.
Practice: paid annual leave tends to be between 25 and 30 days per year.
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5.6.2.5 Public Holidays
There is no law regulating public holidays. Swedish employees typically receive 11 paid
public holidays given in the following table. Many employees are allowed to "bridge"
public holidays falling on a weekday, such as Tuesday or Thursday, with the working day,
which falls on the Monday or Friday, to create a four day weekend. Arrangements are
made to add extra working time each day over a certain period to compensate for the time
off on the "bridged" weekend.
1 January New Years Day Ascension Day
6 January Twelfth Day Whit Monday
Good Friday 21 June Mid Summer Eve
Easter Monday 1 November All Saints Day
1 May Labour Day 25 & 26 December Christmas
5.6.2.6 School Holidays
Summer: June to August 8 weeks
Christmas: December / January 2 weeks
Sport Vacation Week: February 1 week
Easter: March / April 1 week
Autumn: October 1 week
5.6.3 Retirement
5.6.3.1 Overview
A comprehensive system of state benefits, supplemented by universal collectively agreed
employee benefit plans, is proving expensive in the changed circumstances of the
Swedish economy. Employees, who until recently made no contributions, are now
contributing up to 5% of earnings to social security provision. The state pension scheme
is to be overhauled to make it more affordable.
5.6.3.2 Normal Retirement Age
Retirement pension is payable from retirement age.
5.6.3.3 Early Retirement
Available from age 60, subject to a proportionately reduced payment.
5.6.3.4 Social Security Pension
The social security pension is equivalent to approximately 65% of national average
earnings. Employers must provide benefits on a non-contributory basis for all employees.
These are closely integrated with the social security pension. The maximum level is
attained after 30 years.
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5.6.3.5 Private Pensions
Voluntary pension plans are limited to smaller employers not covered by collective
agreements.
5.6.3.6 Trade Union Views on Leisure Time Trends
Swedish Trade Union Confederations views were as follows:
Sweden has continuing problems of unemployment and of people working part time
who would like to work a full 40 hour week. For some people there is heavy overtime
due to staff reductions and reluctance to take on new employees;
for reasons of health and equality of men and women in relation to domestic
responsibilities, shorter working hours are looked for in the longer term;
there is interest in more flexible working hours, including a possible "free time bank"
enabling workers to take accumulated free time when and how they wish, even using
paid vacation time to shorten the working day for a period;
pensioners have survived the recession without great losses. They are strong
consumers in the leisure sector. The Swedish population is ageing, following a high
birth rate in the 1940s and a low one in the 1960s. This makes pensions an important
issue in all employment negotiations. It also means pensioners will continue to be
important leisure consumers even in the long term. However, early retirement,
although pressed on some people, has become more difficult because of the level of
pensions available;
in negotiations with employers, leisure time is an aspect of the flexibility of the work
force. Employers want complete flexibility, while the unions want co-determination
and a better quality of life for their members;
looking to the future, some groups in Sweden want more leisure and family time and
would like to see economic growth enable reductions in working hours, and greater and
better distributed free time. Others, as the recession comes to an end, want full time
jobs and more overtime to regain income levels lost in the recession.
Swedish Confederation of Professional Employees views were as follows:
the Confederation urged that the legislation to implement the EU Working Time
Directive in Sweden should provide increased flexibility in the organisation of working
hours, so as to meet the needs of customers more effectively whilst reducing total
working hours.
the Confederation argues that shorter working hours lead to greater equality between
men and women, and provide more time for family and social life. Greater flexibility
in structuring working hours would reduce costs by reducing the need to pay over time
premiums, because working hours would reflect peaks and troughs in activity.
Together with reduced working hours, this should lead to an increase in employment.
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5.6.4 Tourism Profile
5.6.4.1 Outbound Tourism
Outbound tourism from Sweden increased from 4.3 million in 1985 to 6.2 million in
1997. However, this was below the peak of 7.3 million tourist trips in 1992. In 1997,
87% of trips were to destinations in Europe. This was followed by the Americas (6.4% of
trips), East Asia and the Pacific (4.6% of trips) and Africa (1.4%). Inter-regional
destinations have increased by over four times the rate of intra-regional trips since 1985.
It is estimated that approximately 60% of all outbound trips from Sweden are leisure
related, over 20% business related and over 15% VFR. The average length of stay per trip
has fluctuated and is estimated to have increased from 5.9 days in 1990 to 6.9 days in
1996. The leading ten destinations for Swedish tourists in 1995 are summarised in the
following table.
Country Arrivals 000s Country Arrivals 000s
France 876 Denmark 356
UK 560 Norway 322
Spain 737 Italy 260
Germany 588 USA 219
Greece 459 Poland 198
Source: WTO
5.6.4.2 Domestic Tourism
Swedish domestic tourism trips fluctuated between 1990 and 1996, peaking at 75.4
million trips in 1990 and declining to 66.3 million trips in 1996. The motivation for
domestic trips is similar to that for international trips, with approximately 70% leisure
related.
5.6.4.3 Employment in Tourism
In 1995, tourism was estimated to support a total of over 139,000 jobs.
5.6.5 Leisure Time and Tourism Conclusions
There is unlikely, in the short term, to be any increase in the generous Swedish paid leave
provisions. These include arrangements to enable leave to be accumulated, so that more
lengthy holidays can be taken, and to enable public holidays to be linked to weekends for
longer breaks. The main trade union interest is in establishing more flexible working
hours arrangements which, as well as improving industrial efficiency, also respond to
family and social needs by giving individuals an element of control over their entitlements
to leisure time. There is interest in establishing free time banks in which individuals
can accumulate leave and then use it as required; for example, using holiday leave to
shorten the working week for a period. These priorities suggest that there is more interest
in greater leisure time in the working week and for family arrangements than for more
holidays.
At the political level Sweden continues to try to reconcile its welfare traditions with the
burden of an ageing population, the fiscal constraints of EU membership and the
competitive demands of the global economy.
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5.7 SWITZERLAND
5.7.1 Key Facts
1997 2010 Projection
Population millions 7 7
% of Population over 60 *19 24
Labour Force millions 4 4
GDP per head US$ ppp 23,800 n/a
* 1996
Statutory Leave 20 days
Public Holidays 8 days
Retirement Age Men 65 Women 62
1994 1995 1996 1997
Unemployment % 3.6 3.3 3.7 5.0
1980 to 1990 1990 to 1996 1997
Consumer Prices % Increase pa 2.9 2.6 (0.1)
1980 1996
Service Imports US$ millions 4,885 15,387
Travel as % of Total Service Imports 48.8 49.0
Value of Travel Imports US$ millions 2,384 7,540
Working Week 45 hours per week
Sources: World Bank, ILO, and Sedgwick Noble Lowndes
5.7.2 Working and Leisure Time
5.7.2.1 Overview
Working hours are determined by statute and by collective agreements.
5.7.2.2 Normal Hours of Work
Law: provides for a maximum working week of 45 hours.
Practice: the average working week is between 40 and 41 hours.
5.7.2.3 Paid Annual Leave
Law: the minimum statutory annual leave is four weeks.
Practice: actual leave is frequently five or six weeks.
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5.7.2.4 Public Holidays
There are eight public holidays per year.
1 January New Year Whit Monday
Good Friday 1 August Bundesfeier
Easter Monday 25 & 26 December Christmas
Ascension Day
5.7.2.5 School Holidays
Spring April 15 days
Summer July and August 25 days
Autumn September to October 14 days
Christmas December to January 10 days
Winter Sport February to March 10 Days
5.7.3 Retirement
5.7.3.1 Overview
Improvements in the relatively high standard of living, and of social security, have
traditionally been achieved mainly through harmonious bi-partite industrial relations.
Retirement pensions are made up of the social security pension plus employer arranged
private pension plan coverage. The overall objective is that the full retirement pension
will, for a whole career, amount to 60% of earnings up to the social security earnings
ceiling. Impending social security deficits are expected to be funded by tax increases.
5.7.3.2 Normal Retirement Age
The social security pension is payable from age 65 for men and 62 for women. The
retirement age for women will rise to 63 in 2001 and 64 in 2005.
5.7.3.3 Early Retirement
Since January 1997, men have been able to retire up to one year before normal retirement
age, subject to an actuarial reduction. From 2001, they will be able to retire from age 63,
subject to the same actuarial reduction. Similar early retirement provisions will be
introduced for women in 2001, after the increase in the normal age of retirement to 63.
5.7.3.4 Social Security Pension
The statutory retirement pension is made up of a basic amount together with a
supplement, calculated by reference to revalued average earnings of both husband and
wife.
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5.7.3.5 Private Pensions
The majority of employers operate private plans. Most multinationals provide defined
pensions in the range 60% to 70 % of final salary, inclusive of social security.
5.7.4 Employer and Trade Union Views on Leisure Time Trends
The views of the Confederation of Swiss Employers were as follows-
in recent years the number of full time jobs in Switzerland has declined and the
number of part time jobs has risen substantially. In many cases this means that
personal leisure time has increased, but income is lower. In these circumstances there
is a tendency for people to focus on non commercial leisure activities;
Swiss trade unions are campaigning for a substantial reduction in working time. This
approach to trying to share work is opposed by the Confederation, which believes it
would be an agent of job destruction;
there is a strong tendency towards agreeing working hours on an annual rather than
weekly basis, which provides valuable flexibility;
work pressures, including the increase in dual income couples, are tending towards
shorter holiday breaks and also encourage more intensive leisure spending;
increasing paid holiday entitlements is not on the current industrial relations agenda.
5.7.4 Tourism Profile
Outbound tourism from Switzerland increased from 8.4 million trips in 1985 to 9.2
million trips in 1997, down from 11.7 million trips in 1996. Despite intra-regional trips
having decreased, 83% of trips were to destinations within Europe. This was followed by
the Americas region (7.6% of trips), East Asia and Pacific (4.5%) and Africa (2.7%). The
leading ten destinations for Swiss tourists in 1996 are summarised in the table below.
Country Arrivals 000s Country Arrivals 000s
France 3,737 UK 584
Spain 1,598 USA 417
Italy 1,342 Greece 256
Germany 848 Hungary 133
Austria 746 Netherlands 120
Source: WTO
5.7.5 Leisure Time and Tourism: Industry View to 2005
The Swiss Federation of Travel Agents views were as follows:
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5.7.5.1 Socio Economic Factors
little change is expected in working time or holiday entitlement. In the longer term it is
thought the retirement age may reduce but also that there may be some fall in
retirement income;
increased staggering of school holidays is expected;
expenditure on main and additional holidays is expected to increase.
5.7.5.2 Travel, Length and Type of Holiday, and Accommodation
a strong increase in long haul travel is expected;
demand for extended weekends, short breaks and additional holidays is expected to
grow;
some increase is likely in package holiday demand;
accommodation demand is expected to rise for hotels, self-catering and apartotels.
5.7.5.3 Leisure Products
demand by young couples and families for beach holidays is expected to increase;
strong demand is expected from young people, couples and family members taking
holidays independently for golf, diving and walking holidays;
coach touring and event related demand is expected to grow among young couples,
independent family members and the retired. Strong growth in demand by the retired
for health breaks is also expected.
5.7.6 Leisure Time and Tourism Conclusions
As the response from the Employers Confederation indicates, although Switzerland is still
one of the richest countries in the world it is not without difficulties. In recent years
economic growth has been disappointing and jobs difficult to find. A 1997 poll showed
that 72% of Swiss worried about unemployment and 39 % worried about their pensions.
This is the background to Swiss leisure spending and activities.
Nevertheless the industry anticipates growth in main and additional holidays, especially
long haul; increased demand for packages and a trend towards activity and health related
trips.
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5.8 UNITED KINGDOM
5.8.1 Key facts
1997 2010 Projection
Population millions 59 59
% of Population over 60 *21 23
Labour Force millions 28 29
GDP per head US$ ppp 21,200 n/a
* 1996
Statutory Leave 15 days, 20 from November 1999.
Public holidays 8 days
Retirement Age Men 65 Women 60
1994 1995 1996 1997
Unemployment % 9.6 8.8 8.2 5.5
1980 to 1990 1990 to 1996 1997
Consumer Prices % Increase pa 5.8 3.0 3.1
1980 1996
Service Imports US$ millions 27,933 68,153
Travel as % of Total Service Imports 22.9 38.2
Value of Travel Imports US$ millions 6,397 26,034
Working Week 48 hours per week
Sources: World Bank, ILO, BTA, and Sedgwick Noble Lowndes
5.8.2 Working and Leisure Time
5.8.2.1 Overview
Historically, the UK has had a highly deregulated approach to working time issues.
Unlike many European countries, prior to implementation of the EU Working Time
Directive it had no general statutory law specifying hours of work or legally required
minimum paid leave.
5.8.2.2 Trends
In the 1980s, and the 1990s to 1997, there was a concerted effort by government to reduce
the influence of the trade unions and to substantially deregulate working time. The
previous government opted out of the European Union Social Chapter but the current
government has opted in to this provision. The adoption by the UK of the European
Council Directive on working time, has significant implications for working time
regulation and practice and has now been enacted into law.
A Henley Centre survey shows that in the UK the number of non-working hours in a week
dropped from 67.3 hours in 1992 to 65.2 hours in 1996. A further survey, in 1998,
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showed that 25% of the respondents did not take their full holiday entitlement. The most
important reason given was pressure of work.
In the UK, 57% of employees reported that they sometimes or always work on Saturdays
and 37% said the same for Sundays.
A 1998 report on the quality of working life suggested that the tide may be turning against
the culture of long hours, but British managers still work longer hours than many of their
counterparts in other countries, with a third working over 50 hours each week.
A study entitled The Great Work/Life Debate published in June 1998 showed managers
finding it increasingly hard to balance their personal and work commitments. Their top
priority for change was to work fewer hours. This came before earning more, retiring or
reducing stress.
5.8.2.3 Normal Hours of Work
Law: to implement the European Union Working Time Directive, a 48 hour maximum
working week, averaged over 17 weeks, was introduced in 1998 but employees are free to
agree to work longer hours.
Practice: normal hours of work are 35 to 40 hours per week, with most workers working
37 to 39 hours.
5.8.2.4 Public Holidays
There are eight public holidays. When public holidays fall on a Saturday or Sunday, a
substitute day, normally the following Monday, is designated in lieu.
1 January: New Year's Day Last Monday in May
Good Friday Last Monday in August
Easter Monday 25 & 26 December: Christmas
First Monday in May
5.8.2.5 Paid Annual Leave
Law: implementation of the European Union Working Time Directive has established
legal entitlement to a minimum of 20 days from November 1999.
Practice: the general practice is 20 to 25 days paid annual leave, with additional days
awarded for long service. There is no fixed procedure for agreeing annual leave. There is
usually no holiday bonus.
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5.8.2.6 School Holidays
December to January 2 weeks
February to March 1 week
Easter 2 weeks
May / June 1 week
July to September 5 to 6 weeks
Some education authorities are considering changing the school year from three to five
terms of eight weeks each, with four weeks summer holiday and two weeks holiday
between the other terms. A decision is expected in mid 1999.
5.8.3 Retirement
5.8.3.1 Overview
Modest social security pensions are supplemented for many by voluntary, but regulated,
additional pension provision.
5.8.3.2 Normal Retirement Age
The social security pension is payable from age 65 for men and age 60 for women. From
2010 the retirement age for women will gradually rise to 65 by 2020.
5.8.3.3 Early Retirement
There is no provision for early retirement in the social security pension scheme.
5.8.3.4 Social Security Pension
The value of the basic pension is currently approximately 24% of average earnings.
There is also optional provision for an additional earnings related supplement.
5.8.3.5 Private Pensions
Private pension plans are widespread and usually provide pensions in the range 50% to
70% of final earnings, with an element of indexation. They usually include provision for
early retirement, subject to reduced pension for reduced years of service.
5.8.3.6 Employer and Trade Union Views on Leisure Time Trends
Confederation of British Industry views were as follows:
the CBI has not considered leisure time as an issue, although it is always a factor in
consideration of working hours. It does not accept that a general reduction in working
hours is a means of increasing jobs;
in recent years any increases in leisure time, through negotiated changes in working
hours or increases in paid holiday, have been justified by improvements in
productivity.
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Views of Trades Union Congress were as follows:
the key development affecting leisure time is the Government's implementation of the
EU Working Time Directive. The TUC is pleased that the Government has
acknowledged the importance of making the work regime more family, and
particularly child, friendly. This concern reflects the recognition that children need
their parents time, rather than a wish to increase leisure time;
TUC research suggests that ideally most men would like to work between 35 and 40
hours per week. Women would prefer 18 to 20 hours a week;
more importantly for tourism, implementation of the Directive has made holidays a
legal entitlement in the UK for the first time;
although for many the new legal minimum will be less than their current entitlement, a
significant number will have increased leisure time and an enlarged opportunity to take
holidays;
maintaining employment and earnings have been the TUCs main objectives in
negotiations with employers and any discussion of reducing the working week has
taken second place, it being recognised that any reduction will increase costs and
reduce the competitiveness of the employer;
the TUC would like to see restoration of the link between the social security pension
and earnings, better access for all employees to occupational pensions and moves
towards a flexible decade of retirement, with opportunities to move by stages to full
retirement;
looking to the future, the TUC believes that some leisure time will be applied to life
long learning in the form of study leave and sabbaticals.
5.8.4 Tourism Profile
5.8.4.1 Outbound Tourism
Outbound tourism from the UK increased from 25.2 million trips in 1985 to 33.3 million
trips in 1997, down from 44 million in 1996. Although inter-regional trips have increased
at a dramatically higher rate than intra-regional trips, destinations in Europe still accounted
for 69% of all trips. The Americas region (17% of trips), East Asia and the Pacific (8%)
and Africa (3%) were the most important other destination regions. Data shows outbound
tourists taking more overseas trips, staying for shorter periods but spending more when
they are abroad. The length of stay has reduced from 13 days in 1980 to 11 days in 1995,
reflecting the growth in short breaks and improved efficiency of travel modes. The
outbound market mix remained relatively stable between 1985 and 1995, over two thirds
of trips being for leisure purposes, 15% business related and 12% VFR. The leading ten
destinations for British tourists in 1996 are summarised in the table below.
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Country Arrivals 000s Country Arrivals 000s
France 9,807 Italy 1,687
Spain 8,692 Germany 1,425
USA 3,246 Portugal 1,405
Ireland 3,190 Netherlands 954
Greece 1,688 Belgium 808
Source: WTO
5.8.4.2 Domestic Tourism
Domestic tourism has increased from 94 million trips in 1991 to 121 million trips in 1995.
The average length of stay has reduced from 4.2 days per trip to 3.7 days. 55% of trips
were leisure related, 29% VFR and 12% business related.
5.8.4.3 Employment in Tourism
Tourism was estimated to support over 2.3 million jobs, of which 67% was direct
employment. More than half of those employed in tourism related industries work part
time, that is less than 30 hours per week. According to the Office of National Statistics, in
1996 approximately 200,000 of those working in tourism related industries were self-
employed.
5.8.5 Leisure Time and Tourism: Industry Views to 2005
The views of the Association of British Travel Agents were as follows:
5.8.5.1 Socio Economic Factors
some decrease in hours of work is expected, and possibly an increase in the number of
public holidays;

there may be a reduction in the retirement age, especially towards the end of the period,
and some increase in retirement income;
expenditure on all holidays, and especially additional holidays, is expected to increase
throughout the period.
5.8.5.2 Travel, Length and Type of Holiday, and Accommodation
short haul and, particularly, long haul travel are expected to increase throughout the
period but only a small increase is expected in domestic travel;

a decrease in main holidays is expected, with some increase in additional holidays, short
breaks and, especially, extended weekends;

the frequency of holiday taking is expected to increase throughout the period;

all inclusive and independently organised holidays are expected to grow strongly, with
little increase in package but slightly more in tailored holidays;
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an increase in self-catering and apartotel accommodation demand is expected
throughout the period and hotel demand later in the period.
5.8.5.3 Leisure Products
demand among young people is expected to grow strongly for cruises, but less for
beach, diving and other sport and related trips;

cruise demand is expected to grow most strongly among young couples, who will also
demand more sports based, wild life, city touring and health based holidays;

family demand is expected to grow most strongly for theme parks, cruises, sports based
and self drive touring breaks;

demand from family members on holiday independently, and the retired, is expected to
increase strongly for cruises, with increased demand for winter sun, golf, walking, event
related, learning, self drive touring, cultural, wildlife and other ecological and health
based holidays;
5.8.5.4 Other
BAA, which owns and operates major British airports, views are as follows:
the forecasting model used by BAA, does not at present include a factor for trends in
holiday entitlements;
cheaper real air fares, rising consumer incomes and changes in exchange rates are
considered the major determinants of demand. However, BAA recognise that there is
no increase in the length of holidays;
the biggest growth is in weekend city breaks and among the retired. This growth is
outside the peak season and has flexible timing of holidays, which is a particular
characteristic of the retired. This helps to even the pressure on airport facilities;

winter traffic is growing faster than summer traffic, partly because of the increase in
travel to the Southern Hemisphere in the November to March period. This also evens
the pressure on airport facilities;

the overall market continues to expand and BAA recognise that any deterioration in the
airport experience will turn airlines and customers away. The overall quality of the
airport depends on good ground transport connections as well as the airports own
facilities.
5.8.6 Leisure Time and Tourism Conclusions
There is no expectation of significant changes in paid holiday entitlements or public
holidays, although changes in the school holidays are being considered in some localities.
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The working time pressure on many employees seems likely to continue and the self-
employed are constrained by the demands of time-limited contracts and uncertainty about
future work.
Those who retire, often earlier and fitter than previous generations, and who have good
supplementary pension provision continue to be an important market. The proportion of
the retired with supplementary pensions will continue to increase. Nevertheless,
continuing government efforts to contain public expenditure, and encourage more
personal provision of pensions and support generally in old age, may in the longer term
reduce the discretionary income available to many older people, who at present spend
significantly on tourism and are free of time constraints.
It is likely that time pressures, particularly on managerial and professional employees,
will encourage short recuperative breaks which enable people not to be away from their
work or home too long. The need for flexibility will lead people to booking trips closer to
departure. The importance of IT in enhancing the sophistication of the cancellation and
last minute bookings market will grow.
Increased flexibility of working hours and the trend towards long haul, southern
hemisphere destinations will lead to holidays being spread more evenly through the year,
especially as the third age segment is not tied to the summer or other traditional seasons.
In addition a proportion of pensioners are likely to continue to take long out of season
trips to sun destinations.
Expenditure on holidays is expected to grow, with a continuing propensity to holiday
abroad and a distinct shift towards more physically and culturally oriented activities. The
growth of spending on holidays has been strong in recent years. Spending on foreign
holidays grew faster than expenditure on any other leisure activity in 1997, rising by 10%,
due to several special factors, including windfall financial gains and the strong pound.
There has also been substantial investment in leisure facilities close to home, particularly
the grouping of several facilities together, so that people can have the maximum amount of
fun with the minimum of effort in terms of travel and without wasting any time. Town
centre renewal with a strong leisure orientation, leisure shopping developments, health and
fitness clubs, multi-screen cinemas and an ever expanding range of restaurants, bars and
cafe bars are all competing for leisure spend close to home. Much of this investment
already reflects the growing retired market who are often time as well as cash rich. The
Mintel report on British Lifestyles, January 1998 foresees spending on life assurance and
pensions rising at over 30% annually in the period to 2002, a doubling of the recent rate of
increase but holiday expenditure is also expected to rise strongly.
The General Household Survey, 1997 shows a steady rise continuing in the number of
economically inactive men in the age range 50 to 59. This suggests there will be an
increasing number of active, relatively young (50s rather than 60s) early retirees as we
enter the new millennium. This group will become increasingly important. The sectors
most likely to benefit are holidays, both home and overseas, and active sport, in particular
walking and golf.
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5.9 SOUTH AFRICA
5.9.1 Key Facts
1997 2010 Projection
Population millions 43 46
% of Population over 60 *7 7
Labour Force millions 14 19
GDP per head US$ ppp 6,200 n/a
* 1996
Statutory Leave 14 days
Public Holidays 12 days
Retirement Age 55
1994 1995 1997
Unemployment % 33 29 30
1980 to 1990 1990 to 1996 1997
Consumer Prices % Increase pa 14.8 10.4 9.7
1980 1996
Service Imports US$ millions 3,805 5,689
Travel as % of Total Service Imports 20.3 27.5
Value of Travel Imports US$ millions 772 1,564
Working Week 46 hours per week
Sources: World Bank, ILO, and Central Statistical Services
5.9.2 Working and Leisure Time
5.9.2.1 Overview
Terms and conditions of employment in South Africa have, both before and after the
transition to a multiracial democracy, been determined between employers organisations
and trade unions centrally, with the Basic Conditions of Employment Act of 1983, as
amended, providing minimum standards, including working time issues. The Labour
Relations Act of 1995 also provides for worker consultation on matters including working
time issues.
5.9.2.2 Normal Hours of Work
Law: the weekly legal limit for most employees is 46 hours.
Practice: many collective agreements provide for shorter working hours than the
statutory limit and the average working week may be 43 hours, but with significant
variations between industries.
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Reduction of working hours is the subject of current legislation. The long term purpose is
to bring working hours down to 40 hours per week in line with international practice, but
to do so on a basis that is compatible with employment creation and does not lead to job
losses. The first step will be a reduction to 45 hours. Measures are also to be introduced
increasing the flexibility of working time. Annual leave entitlement will be increased in
due course from two to three weeks.
5.9.2.3 Paid Annual Leave
Law: most employees are entitled to 14 consecutive days of paid annual leave for a
period of 12 months service. Public officials are entitled to between 30 and 36 days leave.
Practice: larger employers usually grant around four weeks paid leave on average.
5.9.2.4 Public Holidays
There are 12 public holidays. If a public holiday falls on a Sunday the following Monday
is deemed to be the holiday.
1 January New Year's Day 16 June Youth Day
21 March Human Rights Day 9 August National Women's Day
Good Friday 24 September Heritage Day
Monday after Easter Family Day 16 December Day of Reconciliation
27 April Freedom Day 25 December Christmas Day
1 May Workers' Day 26 December Day of Goodwill
5.9.2.5 School Holidays
December / January 6 weeks
April 2 weeks
June / July 3 weeks
September / October 2 weeks
No change is expected in school holidays.
5.9.3 Retirement
5.9.3.1 Overview
The real disposable income of pensioners is expected to decrease.
5.9.3.2Normal Retirement Age
The official retirement age for men and women is 55, but the actual retirement age for
both is 60. No change is expected in the retirement age.
5.9.3.3 Early Retirement
Early retirement is being encouraged.
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5.9.3.4 Pensions
There are moves to reduce the public expenditure cost of retirement provision and to
encourage private provision for support in old age.
5.9.4 Tourism Profile
5.9.4.1 Outbound Tourism
Outbound tourism from South Africa increased from 1.0 million trips in 1985 to 1.7
million trips in 1997, marginally lower than 1996. 49% of trips were to destinations
within Africa, 30% to Europe, 10% to East Asia and the Pacific, and 8% to the Americas
region. Inter-regional trips have increased at more than four times the rate of intra-
regional trips. The leading ten destinations for outbound South African tourists in 1996
are summarised in the table below.
Country Arrivals 000s Country Arrivals 000s
Zimbabwe 512 Mauritius 50
UK 243 Germany 49
Swaziland 207 Singapore 45
Botswana 200 Australia 43
USA 95 Italy 39
Source: WTO
5.9.4.2 Domestic Tourism
Domestic tourism increased from 12.1 million trips in 1994 to 22.6 million trips in 1996.
The average length of stay decreased from 7.1 days to 6.2 days. 53% of trips were VFR
and 37% leisure related in 1996.
5.9.4.3 Employment in Tourism
Tourism is estimated to have supported a total of 580,000 jobs in 1995.
5.9.5 Leisure Time and Tourism - Conclusions
South Africa has been seriously affected by the global financial crisis. Currency
uncertainties have resulted in devaluation and exceptionally high interest rates deferring
any hope of economic growth and raising the possibility of renewed recession.
Uncertainty and high mortgage interest rates are inhibiting consumer spending. Recovery
in the outbound market is likely to be slow and hesitant.
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SECTION 6
OVERVIEW OF TRENDS AND IMPLICATIONS FOR TOURISM
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SECTION 6 OVERVIEW OF TRENDS AND IMPLICATIONS FOR TOURISM
6.1 Population, Demography and Incomes
6.1.1 Introduction
The 18 selected countries vary widely in population, demographics and stage of economic
development.
6.1.2 Population
Population projections, published by the World Bank, for 2010 are shown in the Key Facts
tables for each country (Sections 3, 4 and 5). The population growth projections from
1996 to 2010 vary dramatically ranging from growth of over 20% in South Africa and
Malaysia, to declines in Italy and Germany. The growth projections have to be considered
in the context of the size of the population. The largest numerical increases are projected
in China (134 million), USA (29 million) and Brazil (29 million). The following table
shows the projected increase in the population of each country from 1996 to 2010.
Projected Increase in Population 1996 to 2010
Population Increase 1996 to 2010 Country
Millions %
Population 2010
millions
China 134 11 1,349
USA 29 11 294
Brazil 29 18 190
South Africa 8 21 46
Malaysia 5 24 26
Korean Republic 4 9 50
Canada 3 10 33
France 2 3 60
Australia 2 11 20
Japan 1 1 127
UK 0 0 59
Netherlands 0 0 16
Sweden 0 0 9
Austria 0 0 8
Switzerland 0 0 7
Singapore 0 0 3
Germany (1) (1) 81
Italy (2) (4) 55
Among current major tourism generating countries the USA and Canada have reasonably
high rates of population growth but Japan and the European countries will have little or no
growth in the period to 2010. On the other hand, China at 11% has the same growth rate as
the USA but from a far higher base population. Brazil, Malaysia and South Africa are
forecast to have some 20% growth. Given reasonable economic performance in the
developing countries these disparities in population growth will begin to tilt the global
balance of generating countries away from Europe and North America.
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6.1.3 Demography
Projections show a significant ageing of the population in each of the 18 selected countries.
The percentage increase in the population over the age of 60 ranges from 14% in Italy to
62% in the Korean Republic and Malaysia. The largest numerical increase is over 41
million in China, followed by the USA (12 million) and Japan (11 million). The following
table shows the projected increase in the number of people over the age of 60 in each of
the countries from 1996 to 2010.
Increase in Aged (60 and over) Population 1996 to 2010
Aged Population Increase 1996 to 2010 Country
Millions %
Aged Population 2010
millions
China 41.4 35 161
USA 11.8 27 55
Japan 11.3 43 38
Brazil 5.5 47 17
Germany 3.1 18 20
Korean Republic 2.6 62 7
Italy 1.8 14 14
France 1.8 15 14
Canada 1.8 37 7
UK 1.5 12 14
Australia 1.1 39 4
South Africa 0.9 36 3
Malaysia 0.8 62 2
Netherlands 0.7 24 4
Switzerland 0.3 21 2
Sweden 0.3 15 2
Austria 0.3 19 2
Singapore 0.1 33 1
Both established and future leading tourism generating countries have ageing populations.
Hence the continued good prospects for the retired market, particularly in those countries
with good levels of post retirement income and in which people are remaining fitter later
into life.
6.1.4 Income Levels
6.1.4.1 National Income
The following table ranks the selected countries in bands based on GDP per head,
adjusted for purchasing power parity, in 1997.
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1997 GDP per Head Adjusted for Purchasing Power Parity
GDP per head ppp Countries
Over US$25,000 USA
US$20,000 to US$25,000 Singapore, Japan, Switzerland, France, Canada,
Austria, Australia, Italy, UK, Germany, Netherlands,
US$15,000 to US$20,000 Sweden
US$10,000 to US$15,000 Korean Rep, Malaysia
US$5,000 to US$10,000 Brazil, South Africa
Less than US$5,000 China
6.1.4.2 Income in Retirement
The retired market is increasing in importance in all of the selected countries. Time is not
generally a constraint on tourism activity by the retired, therefore their financial resources
are critical. Analysis from Sedgwick Noble Lowndes Guide to Employee Benefits and
Labour Law in Europe 1997/1998, details the level of income typically available in
retirement in the selected European countries, Japan and the USA.
The following table shows mandatory and voluntary retirement pensions as a percentage of
gross and net earnings, for workers on average salaries, by country in 1997. The range was
from 70% of net average earnings in Japan to 95% in Italy.
Net Pension as % of Net
Average Earnings
Gross Pension as % of
Gross Average Earnings
Italy 95 81
Germany 94 69
USA 88 68
Austria 82 72
Netherlands 82 62
Sweden 81 81
UK 77 63
France 77 62
Japan 70 61
The following table shows mandatory and voluntary retirement pensions as a percentage of
gross and net earnings, for workers on double the average salary, by country in 1997. The
range was from 55% of net average earnings in Japan to 99% in Italy.
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Net Pension as % of Net
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Gross Pension as % of
Gross Average Earnings
Italy 99 80
Netherlands 86 59
Germany 77 56
UK 76 65
France 72 58
Sweden 71 70
Austria 70 59
USA 70 54
Japan 55 46
In all these countries there are moves to increase individual contributions, reduce the level
of pension payments and/or raise the retirement age and to encourage more private
provision towards retirement income. Anxiety about post retirement income will make
many of the retired increasingly cost conscious in their tourism purchases. But some will
find themselves unconstrained by either time or money and will be open to many tourism
purchases.
6.2 Working Time and Leisure Background
Historically, reducing working hours and increasing leisure time has been a social
objective in many countries, the purpose being to improve the quality of life and general
well-being of employees and their families. Hours of work have decreased considerably
this century. The working week has become shorter, the number of public holidays has
risen and paid annual leave has increased. In addition there has been a trend towards
earlier retirement. Whilst reductions in working time in the developed countries have
slowed considerably in the 1980s and 1990s, the ILO judges that the broad trend towards
further working time reductions is likely to continue, subject to some important
qualifications:
the massive entry of women into the work force has changed the situation
considerably and women entering the work force will probably work more hours in
their lifetime than previous generations of women. This development greatly reduces
the leisure time available to the family unit;
although working time reductions may continue at the aggregate level, the working
hours of individuals and sectors are becoming increasingly varied. The length of
average weekly hours of work is not comparable between countries because of
methodological differences in measurement. However, in general, the data are
consistent within each country and indicate trends in working time in that country.
Comparing the trends it is clear that, in most countries, average weekly hours of work
including overtime changed very little over the eight years to 1994 (the latest ILO data
which was available). Only in countries where the average hours worked were
relatively long is there a marked decrease. This is particularly the case for Japan and
the Republic of Korea. The following table includes data for 10 of the selected
countries.
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Hours Actually Worked Per Week in Non Agricultural Activities
1987 1993 1994
Australia 33.1 33.0 33.2
Canada* 31.9 30.6 n/a
France 39.0 39.0 38.9
Germany* 40.2 38.0 38.3
Japan 40.6 36.8 n/a
Korean Rep. 51.9 47.5 n/a
Netherlands* 40.2 40.1 n/a
Sweden 36.3 35.4 35.8
UK 43.7 43.5 n/a
USA* 34.8 34.5 34.7
Source ILO * paid hours
Average weekly hours worked in manufacturing in 13 of the selected countries shows a
more varied picture. Whilst in the majority of countries the trend is towards stability in
hours worked, in some the average has gone up. This is particularly the case for Australia,
Singapore and the United States.
In Europe, according to Eurostat, actual hours of work in France, Germany, Italy and the
United Kingdom were broadly stable in the period 1983 to 1993 for full time and part
time employees together. However, for full time employees there were increases in hours
of work in France and the United Kingdom. From 1993 to 1997, working hours for full
time employees increased in Austria, Germany, Sweden and the UK and remained static
in other European Union countries.
Working time arrangements are becoming more complex in many countries and are
increasingly designed to meet the needs of particular enterprises or segments of the
economy. Sustained job creation, which governments seek in order to reduce
unemployment, will only come from economic growth with increases in productivity and
output. So flexible working time practices that enhance competitiveness are likely to be
pursued widely. This will affect leisure time in many ways.
6.3 Overview of Regulation of Working Time and Holidays
6.3.1 Introduction
In most of the 18 countries selected for this study, normal weekly hours of work are
regulated by law. However, there is often a significant difference between law and
practice, as detailed in the country sections (Sections 3, 4 and 5). Statutory regulation
also applies widely to paid annual leave and, largely, to public holidays.
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6.3.2 Hours of Work
normal weekly hours of work (legally agreed hours without overtime) range from 48
hours in Italy, the Netherlands, Malaysia and the UK to 46 hours in South Africa, 45
hours in Switzerland and 44 hours in Brazil, Korea and Singapore;
the 40 hour week is the regulatory norm in seven of the countries: Canada, USA,
China, Japan, Austria, Germany and Sweden;
only two countries have regulated working hours below 40 hours: France has a
normal working week of 39 hours and Australia of 38 hours.
The tradition in many countries of regulating working hours by the week is now giving
way to more flexible arrangements. For example, the 48 hour working week recently
introduced in the European Union can be averaged over several weeks. Moves in many
countries towards the 24 hour day, seven day week society entail many employees working
at night or at weekends. Many fixed term contract staff simply take time off for holidays
between contracts. These changes in the employment market are reducing the traditional
weekend and seasonal peaks of tourism demand.
An equally flexible response is required from the industry, to take advantage of
opportunities to sell appropriate products more evenly through the year. Many of those
working flexible hours will not wish to commit far ahead and will be looking for late
purchases. Some will be much more short of time than money and will look for products
tailored to their requirements, others will be pressed for both time and money, looking for
good value, affordable products.
Pressure of work and job insecurity mean that in this more flexible environment many
individuals will not wish to be away from the work place for long holidays but rather for a
series of short breaks. Our consultation with the travel trade shows that this is already clear
in the market place.
6.3.3 Paid Leave
most national systems of paid annual leave are statutory and provide for a number of
days or weeks of paid leave to accrue to employees after a qualifying period, which is
usually one year of service;
Brazil has an original system designed to discourage absenteeism by reducing holiday
from a maximum of thirty days depending upon the number of non legitimate
absences;
in several countries the basic entitlement increases with length of service. This is
either by increasing the leave by one day each year up to a maximum, or granting
three, four or five days after a certain number of years service also up to a maximum.
Paid annual leave is vital to the tourism industry. In 17 of the countries it is a legal
entitlement, but in the USA there is no general statutory provision and paid leave is
essentially a matter of individual contract. Even where there is a legal entitlement paid
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leave may not in fact be taken because, for example, of individual or team work pressures,
especially in countries with a long working hours culture.
Over recent years, particularly in the USA and increasingly in Europe, there has been a
move towards more flexibility in the range of employment benefits offered. Individuals
may have the opportunity to choose, for example, more holiday or more pay, or an extra
pension contribution, or child care vouchers. This development is designed to control
overall benefit costs while enabling individuals to choose according to their preferences. It
is an important development for tourism and should be closely monitored. Traditionally
some employment arrangements have allowed employees to receive pay instead of taking
holiday; others have not. In the Netherlands there is a trade union view that all employees
should have the right to pay instead of any holiday above the statutory minimum.
Any tendency for holiday entitlements above a statutory minimum to become negotiable
would have serious implications for tourism.
6.3.4 Public Holidays
In most countries public holidays are regulated by law, alternatively such days are granted
on the basis of custom. Korea has the most generous provision, and China has the lowest
provision.
Country Annual Public Holidays
Korea 18
Japan 14
Austria, and Malaysia 13
Italy and South Africa 12
Canada, France, Germany, Sweden and Singapore 11
Brazil 10
USA 9
Australia, Netherlands, Switzerland, UK 8
China 7
public holidays remain the focus of leisure travel in Japan and are very important in
Asia as a whole;
in the USA public holidays are also important, especially for creating three day
weekends;
in many European countries public holidays are an opportunity, when they fall mid
week, to "bridge" to the weekend and create a short break.
The comparative provision of paid leave and of public holidays in the eighteen countries is
shown in the following chart.
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In the case of Japan and Korea the chart shows entitlement and an indication of holiday
actually taken. Japanese and American employees have only about two thirds of the
number of holidays that are available to Europeans. In terms of paid annual leave, as
distinct from public holidays, they have only about half of the time available to
Europeans. Thus opportunities for Americans and Japanese in the working population to
take overseas trips of several days duration are significantly restricted. As reported in the
USA and Japan sections of this report (Sections 3.3 and 4.3 respectively) there is evidence
in both countries of a demand for more leisure.
6.4 Overview of Findings on Leisure Time
6.4.1 Introduction
Our analysis of leisure time shows that national economic policies are focused on
increasing competitiveness and that leisure time has little priority. Whilst recognising that
tourism is a growth sector for jobs, governments look principally to inbound visitor
growth, relying on leisure time in generator countries. Yet, in many of those countries
individuals, especially more senior, full time employees, who are a vital tourism market,
find that their leisure time is squeezed.
6.4.2 Consultation with the Travel Industry
Our consultation with the travel industry shows that, overall:
there is no expectation of increase in paid holiday or in public holidays in the short term;
few countries expect any significant reduction in working hours except in the medium to
long term;
the retirement age is expected to rise in many countries with a possible fall in retirement
income;
the frequency of holiday taking is thought likely to increase, with growth in short breaks
and, especially, in extended weekends;
Paid Leave and Public Holidays
0
5
10
15
20
25
30
35
40
45
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within a general trend towards activity based holidays, those which offer time efficient,
intensive breaks are expected to do particularly well.
6.4.3 Trade Union Views
In many countries trades unions, which in the past pressed for increased holiday, are now
more concerned to maintain employment and urge that increasingly flexible working hours
should be "family friendly", take account of family commitments and enable people to
plan their leisure time.
In Europe some trade unions believe that future negotiations for more free time should take
account of "life long learning" and employees' need to have sufficient time to update their
skills. This presents opportunities for the industry and illustrates how work interests and
skill requirements can link with personal leisure activities and travel interests. Many
holiday products already provide opportunities for learning, for example, languages and
computer skills.
6.4.4 Life Cycle
Industry views were invited on the growth prospects, in the short term, for particular
tourism products in the following markets:
Young people and young couples: the young are less affected by leisure time pressures
than older people. Many take the opportunity to travel widely before embarking on their
careers. The increased flexibility of employment and reduced emphasis on lifetime careers
encourages many to continue to take further breaks between periods of work after joining
the active working population. These experienced travellers will be an important future
market.
Families: family holidays are fashioned by the time constraints on parents, which can be a
particularly difficult problem in the case of dual income couples A number of holiday
products are meeting the needs of this market, especially theme parks and cruises.
Independent Family members: one response to the time pressures on families and to the
increasingly diverse holiday interests of individuals within the family group is to holiday
independently. A range of products is particularly suited to this market, including event
related and special interest holidays.
The retired: the needs of the retired are met by products, many of which reflect their
increased leisure time, for example, winter sun and cruises.
6.5 Leisure Time and Tourism by Region
6.5.1 Introduction
The following sections consider in more detail the impact of leisure time on tourism, set
out findings in relation to the countries studied by region and highlight tourism products
that meet the needs of increasingly segmented markets.
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6.5.2 Americas Region
6.5.2.1 Brazil
Statutory leave is generous - up to 30 days - and there are 10 public holidays. The speed
of recovery from the 1999 economic crisis rather than lack of leisure time will be the
principle determinant of tourism in the short term. The outbound market, which is the
largest origin market in South America, will be inhibited by the devaluation, austerity and
continuing economic reforms but this may strengthen the domestic market.
Changes in leisure time: working hours may increase, with a possible reduction in public
holidays. Willingness to take full holiday entitlement may fall, with a decrease in
expenditure, especially on additional holidays.
Travel: there may be some increase in short haul and, particularly, domestic travel.
Types of holiday: any growth will be mainly in extended weekends. There may be some
increase in package and all- inclusive and, particularly, in tailored holidays reflecting the
important high spending element in Brazil's outbound market.
Tourism products: as the market recovers growing demand is anticipated from :
young people and young couples for activity holidays especially diving and trekking,
theme parks and cruises;
families for activity holidays including diving and fishing, coach touring, theme parks
and cruises;
independent family members for winter sun, trekking, coach touring;
retired people for beach, winter sun, walking, coach touring, pilgrimage.
6.5.2.2 Canada
Statutory leave is some 10 rising to 15 days, and more generous than in the USA. There
are 11 public holidays.
Changes in leisure time: there may be an increase in working hours, but also in
willingness to take full holiday entitlement and in holiday expenditure, especially on
additional holidays. No change is expected in paid or public holidays.
Travel : there may be an increase in short haul travel.
Length and types of holiday: main holidays are expected to decrease and an increase is
expected in short breaks, especially extended weekends, with rising frequency of holidays.
Growth is most likely in tailored and independently organised holidays.
Tourism products: growing demand is anticipated from:
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young people and young couples for activity holidays, particularly diving, trekking,
sports and event related tourism, cruises;
families for walking, event related tourism, city touring, theme parks, trekking;
independent family members for coach touring, learning, cultural, special interest,
multi-city tours;
retired people for beach holidays, cruises, golf, walking, trekking, cultural, health,
multi-city tours, learning, special interest.
6.5.2.3 USA
Paid holidays, which are not statutory, are most commonly 10 days, perhaps rising to 15
days after 8 years There are 9 public holidays. Paid holidays are not expected to increase
but will continue to reflect employment market conditions. In the present tight
employment market those with scarce professional or technical skills may be able to
negotiate more leisure time. Equally, some employers will respond to the demand for
more leisure with schemes which enable extra days of leave to be earned. The trend
towards more flexible employment benefits will enable individuals to choose between time
off and other benefits.
Changes in leisure time: no general change is likely in working hours, paid or public
holidays. Increasing expenditure on vacations is likely, especially on short breaks.
Travel: an increase is probable in domestic, intra regional and long haul travel.
Length and types of holiday: growth is likely mainly in short breaks, especially extended
weekends, with increased frequency of holidays.
Tourism products: growing demand is expected from:
young people and young couples for activity holidays, theme parks, cruises;
families for touring holidays, theme parks, cruises;
independent family members for special interest, cultural, sport and event related
breaks;
retired people for cultural, special interest, activity holidays, health, cruises.
Limited paid holiday, work pressures, the increase in two earner households and family
complications arising from divorce all encourage the growth of short breaks, especially
around weekends and public holidays. This favours continued expansion of domestic and
other destinations which offer short travel times and optimal value for limited leisure time.
The domestic industry has the advantage that it can offer almost every type of holiday
experience and a wide climate range. The success of theme parks and cruises illustrates
the opportunities for intensive breaks offering multi-generational experiences which enable
families to enjoy leisure time together, along with facilities to pursue individual interests.
In some states a new pattern of school holidays, more education driven, is being adopted,
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based on eight week terms alternating with two week breaks. This is changing the pattern
of family holidays and will have an important effect on the industry if it is taken up more
widely.
6.5.2.4 Regional Overview
In North America, especially the USA, limited leisure will continue to favour time
efficient, intensive short breaks, with growth opportunities for longer vacations and
outbound travel, other than to Mexico and Canada, chiefly among the retired, who have the
time and the means to travel and to enjoy many activities and cultural pursuits.
The evidence of pent up demand for more leisure in the USA and the way in which
employers are responding with more flexible benefit packages suggests that it may be
timely for the industry to press the case for paid holidays as an investment in good health,
employee productivity, stress management and fitness, not merely a business cost to be
minimised. This consideration is well recognised in the thriving incentive travel market.
One challenge to the travel industry is to offer products which consumers find as
compelling in terms of satisfaction and status as the purchase of consumer goods.
Consumers may then insist more strongly on leisure time rather than taking income
instead.
Looking to the future, continued industrial restructuring is likely to maintain a level of
uncertainty among employees which will continue to inhibit increases in paid holiday.
6.5.3 Asia Pacific Region
6.5.3.1 Australia
Statutory leave is 20 days with some 8 public holidays. There is a growing trend for
employees to exchange paid overtime for leave, increasing the opportunity to take long
weekends.
Changes in leisure time: there may be an increase in working time. No change is
expected in paid or public holidays. Some increase is possible in expenditure on holidays.
Travel: there may be some increase, especially in short and medium haul and possibly in
domestic travel.
Length and types of holiday: most growth is expected in short breaks of seven days or
less and in package, all inclusive and lower cost products, with a tendency to more
frequent trips.
Tourism Products: growth is most likely in short breaks to the more affordable Asian
destinations, in city breaks and in sea cruises.
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6.5.3.2 China
Statutory leave is 10 days and there are 7 public holidays.
In the long term, given successful economic progress, the market has enormous potential
but, at present, outbound tourism is at an early stage of development and strongest within
the region. Developments in government policy on outbound tourism are likely to be more
important than changes in leisure time in determining the future rate of growth. Economic
difficulties are likely to inhibit growth in the short term. These difficulties have weakened
the inbound market and the consequent availability of capacity may stimulate the domestic
market.
In the short term outbound growth is likely to be largely in intra regional travel.
6.5.3.3Japan
Statutory leave is 10 rising to 20 days but only some 9 days are taken. The 14 public
holidays continue to be a main focus of leisure travel.
Changes in leisure time: some future reduction in working hours is possible, but with
reduced willingness to take holiday entitlement.
Travel: with economic recovery increases are expected in long and short haul travel.
Length and type of holiday: any growth is most likely to be in short breaks, especially
extended weekends. There may be a decrease in all inclusive holidays, with future growth
in tailored and, especially, independently organised holidays.
Tourism products: growing demand is expected from:
young people and young couples for trekking, sports related breaks and, especially,
diving.
families for skiing, diving, self drive touring and, in the longer term, cruises and beach
holidays.
independent family members for diving, golf, coach touring, special interest, health.
retired people for cruises, especially in the longer term, golf, walking, coach touring,
learning, special interest, wild life, and health.
Growth will depend on improved economic performance. There is little prospect of
increased willingness, on the part of the working population, to take paid holiday for travel
until the economy improves. One aspect of that improvement may be a rise in
unemployment and decline in job security, which may further strengthen the traditional
work ethic. So it is likely that Japanese executives will continue to have little opportunity
for long haul leisure travel and holidays will continue to focus around weekends and public
holidays.
The more leisure orientated young, especially the office ladies, and the retired, in the
world's most rapidly ageing society, will present the best growth prospects for outbound
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tourism. However, reduced consumer confidence and a weaker yen have made consumers
more cost conscious, increasing the competitiveness of domestic and intra regional
destinations, especially those where the yen is strongest.
The government has acted to strengthen consumer demand by increasing the number of
long weekends; certain national holidays will in future always fall on Mondays. The
industry hopes this may trigger a small rise in leisure travel.
In the longer term, as a means of boosting demand for leisure products and services and
stimulating the economy the government may act to encourage employees to take more of
their holiday entitlements. The industry is encouraging this but recognises that other action
is also needed both by government and the industry to re-establish tourism growth in
Japan. The measures required include reducing the seasonal peaking of holiday taking,
and consequent congestion; international airport expansion; lower air travel costs and more
flexible outbound packages allowing more free time.
6.5.3.4 The Korean Republic
Statutory leave is generous at some 22 days but in practice only a small proportion of this
is taken. There are 18 public holidays. Before the recent economic difficulties a
substantial outbound market had developed, although restrictions on outbound travel were
only abandoned in 1989. The economic recovery programme will subdue consumer
spending and rising unemployment makes it unlikely that more leave will be taken.
Meanwhile the campaign for holidays at home should strengthen the domestic industry.
Consultation with the industry, which pre-dated the economic crisis, suggested how the
market may develop once economic recovery is achieved
Changes in leisure time: a decrease in working hours with some increase in paid holiday
was anticipated with more willingness to take holiday entitlement and increased
expenditure on holidays
Travel: some increase was envisaged in long and short haul and domestic travel.
Length and type of holiday: increases in main and additional holidays, holiday
frequency, package and tailored holidays and, particularly, in independently organised
holidays were envisaged.
Tourism products: growing demand was anticipated from:
young people and young couples for beach, cruise, diving, activity holidays, learning,
self drive touring and, particularly, theme parks;
families for theme parks, cruises, diving, activity holidays, self drive touring;
independent family members for golf, cruises, walking, coach touring, theme parks;
retired people for cruises, golf, health and activity holidays.
Given the severity of the economic crisis and the traditionally strong work ethic leisure is
likely to have low priority for some time. As the economy strengthens the industry will
wish to ensure that the importance of leisure time and of the freedom to travel is fully
recognised. The years of swift growth of outbound travel before the crisis illustrate the
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high value which Koreans place on international travel. Nevertheless the recovery of the
outbound market is likely to be slow and hesitant in the wake of economic recovery.
6.5.3.5 Malaysia
Statutory leave is 8 rising to 16 days and there are 13 public holidays. The measures
taken to recover from the recent economic crisis and, in particular, the currency controls,
are the key factors now shaping tourism. As the economy recovers consultation with the
industry has suggested how the market may develop.
Changes in leisure time: there may be an increase in working hours. No increase is
expected in paid holidays but willingness to take holiday entitlement may increase.
Travel: short haul and domestic may increase.
Length and types of holiday: no change is expected in main or additional holidays but
extended weekends may decrease.
Tourism products: growing demand is anticipated from:
young people and young couples for learning, cultural, city touring, theme park and
self drive holidays;
families for trekking, health, self drive touring, theme parks;
independent family members for walking, health, self drive touring, learning, city
touring;
retired people for health, city touring, walking.
Prior to the crisis outbound tourism was growing strongly. Now the government seeks a
stronger domestic market and the focus of policy is on building inbound tourism. Against
this background of economic reconstruction leisure time is likely to have low priority, with
outbound tourism recovering only slowly
6.5.3.6 Singapore
Statutory leave is 7 rising to 14 days and there are 11 public holidays. The economy has
been less affected than others in the region by financial difficulties. Weakening in the
outbound market may be relieved by the strength within the region of the Singaporean
currency.
Consultation with the industry, which pre-dated the regional crisis, suggested how the
market may develop.
Changes in leisure time: working hours may increase with an increase in expenditure on
holidays.
Travel: short haul is likely to increase with some increase also in long haul.
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Length and types of holiday: increases are expected in main and, especially, in short
holidays and in holiday frequency. Package holidays are expected to decline with an
increase in independently organised holidays.
Tourism products: growing demand is anticipated from:
young people and young couples for beach holidays, skiing, winter sun, trekking and
diving holidays, self drive touring, cruises;
families for beach, cruises, winter sun, skiing, diving, self drive touring, theme parks;
independent family members for winter sun, cruises, trekking, self drive touring,
cultural, special interest, city tours;
retired people for cruises, golf, pilgrimage.
6.5.3.7 Regional Overview
Australia has been comparatively unscathed by the economic difficulties which have
severely weakened Japanese tourism and hit the Korean Republic, Malaysia and Singapore
hard. Australian leisure time and leisure culture are closer to the European tradition.
Holidays have long been an important area of discretionary spending. The industry is now
responding to trends towards shorter, more frequent holidays.
The Asian countries have less well established traditions of leisure time and holiday
taking. In addition a strong work ethic makes many people reluctant to take holiday
entitlements. Whilst the Korean, Malaysian and Singaporean economies recover the
tourism policy priority for governments will be to encourage domestic markets and build
inbound markets. Leisure time is unlikely to increase and for many work pressures may
rise. In all three countries the working week is normally five and a half days. Once the
economies are re-established the industry may wish to press for a five day week and
greatly expand the weekend market.
Japan is the one country to have successfully encouraged outbound tourism as a means of
stimulating consumer demand and redressing international payments surpluses. This was
the achievement of the 10 Million Programme which ran in the late 1980s. The industry,
which has suffered severely from the downturn in travel, is urging the government to do
more now to encourage people to take holidays as a means of fostering consumer spending
and economic recovery. But the task is difficult, given the continuing low level of
consumer confidence, despite discounting by tour operators and the emergence of low cost
carriers. Hence the importance of the range of measures identified by the industry as
prerequisites of outbound tourism recovery and designed to rekindle enthusiasm for travel
as consumer confidence recovers.
The Japanese government has also made efforts to reduce working hours but still only
some 50% of employees enjoy a regular five day week. There is scope here for substantial
further development of the weekend market if a persuasive case is made for further action
to implement five day working.
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In Japan and in the Korean Republic, Malaysia and Singapore there are indications that
economic recovery will be accompanied by a trend towards more independently organised
travel and away from packages, reflecting the growing experience of overseas travel in
these countries. This means that a broader range of holiday experiences can be offered,
with opportunities to engage more closely with the destination and the host community.
The anticipated growth in self drive tours is one example. New products may be very
important in restimulating markets which have been traumatised by the sharp economic
downturn. The products most likely to foster recovery and willingness to use leisure time
for tourism are likely, initially, to be high value, affordable and short, taking advantage of
the traditional focus of holiday taking around weekends and public holidays. In the longer
term it will be important for the industry to research consumer holiday motivation and
encourage individuals to see the importance of leisure as an opportunity for self realisation
and development; not merely as time to recover from work.
6.5.4 Europe, Africa and the Middle East
6.5.4.1 Austria
Statutory leave is 25 rising to 30 days and there are 13 public holidays.
Changes in leisure time: no significant changes are expected in working hours or paid or
public holidays or in expenditure on holidays.
Travel: no change is expected, except a possible fall in short haul travel.
Length and types of holiday: there may be a decrease in additional holidays and short
breaks, except extended weekends, which, like holiday frequency, are not expected to
change. All inclusive and tailored holidays are expected to increase, with a tendency to
more independently organised holidays.
Tourism products: growing demand is expected from
young people and young couples for beach, winter sun, diving , trekking, event related,
special interest, self drive touring, cultural and city touring;
families for beach, walking, learning, self drive touring, theme parks;
independent family members for golf, diving, trekking, cultural, special interest, city
touring, health;
retired people for cruises, walking, coach touring, cultural, special interest, wildlife,
city touring, health, pilgrimage.
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6.5.4.2 France
Statutory leave is 25 days and there are 11 public holidays. France is more active than any
other country in seeking to reduce unemployment by reducing working time, increasing
leisure and sharing work more widely.
Changes in leisure time: introduction of the 35 hour week will reduce working hours but
no change is expected in paid or public holidays. Any increase in holiday expenditure is
expected to be on additional holidays.
Travel: there may be an increase in long haul travel.
Length and types of holiday: any increase is expected to be in short breaks and extended
weekends, with a possible decline in main holidays and increase in the frequency of
holidays. Growth is most likely in package and tailored holidays, with a decline in all
inclusive and independently organised holidays.
Tourism Products: growing demand is anticipated from:
young people and young couples for winter sun, skiing, diving, trekking, other sports,
learning, special interest, cruises;
families for cruises, walking, other sport;
independent family members for walking, trekking, other sport, special interest, health;
retired people for cruises, golf, trekking, learning, cultural, special interest, health,
beach plus cultural or environmental interest.
6.5.4.3 Germany
Statutory leave is 24 days. There are between 9 and 13 public holidays, varying across
the regions.
Changes in leisure time: there is some possibility of a decrease in working hours and
also of a decrease in willingness to take full holiday entitlement.
Travel: there may be some increase in long haul and decline in domestic travel.
Length and types of holiday: a decrease in additional holidays is possible but with an
increase in short breaks and extended weekends. Demand for packages may decrease with
some increase in all inclusive and tailored holidays.
Tourism products: growing demand is anticipated from:
young people and young couples for winter sun, diving, trekking, self drive touring
cultural, special interest, wildlife, multi-city tours, city touring and theme parks;
families for winter sun, trekking, other sport, self drive touring, wild life, multi-city
tours, theme parks;
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independent family members for winter sun, diving, walking ,sport and event related,
special interest, wild life, multi-city tours, city touring, theme parks;
retired people for winter sun, trekking, event related, learning, self drive touring,
cultural, special interest, wild life, health.
6.5.4.4 Italy
Statutory leave is 15 days but in practice 30 days is typical. There are 12 public holidays.
Changes in leisure time: introduction of the 35 hour week will reduce statutory working
hours. No change is expected in paid or public holidays. There may be some increase in
expenditure on holidays.
Travel: there may be some increase in long and short haul and domestic travel.
Length and types of holiday: growth is most likely in short breaks, especially extended
weekends; also in all inclusive and independently organised holidays.
Tourism products: growing demand is anticipated from:
young people and young couples for beach, winter sun, skiing, diving, walking,
trekking, self drive touring, multi-city tours, city touring, theme parks;
families for beach, cruises, winter sun, skiing, theme parks;
independent family members for cruises, winter sun, diving, health;
retired people for cruises, winter sun, golf, trekking, special interest, health.
6.5.4.5 Netherlands
Statutory leave is 20 days and a statutory holiday bonus of at least 8% is payable. There
are 8 public holidays. Employees have the right to two consecutive weeks holiday
between May and October.
Changes in leisure time: some reduction in working hours is possible, at least in the
longer term, together with some increase in paid holidays. No significant rise in holiday
expenditure is expected in the short term, with more confidence in increased spending on
additional than on main holidays.
Travel: long haul travel is likely to increase more rapidly than short haul or domestic
travel.
Length and types of holiday: the length of holidays is expected to decrease, with an
increase in frequency of holiday taking. Growth is expected mainly in package holidays.
Tourism products: growing demand is anticipated from :
young people and young couples for beach, activities, skiing, winter sun;
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families for beach, winter sun, activities, city touring;
independent family members for event related, special interest, culture, multi-city
tours;
retired people for winter sun, special interest, golf, cultural and health related holidays;
cruises.
6.5.4.6 Sweden
Statutory leave is 25 days, and a holiday bonus of some 13% is payable. There are 11
public holidays. Paid leave in excess of 20 days can be accumulated for up to 5 years to
allow for a longer holiday and employees are entitled to 4 consecutive weeks between June
and August. There is interest in establishing "free time banks" with freedom to use the
accumulated leave entirely as individuals wish - perhaps reducing the working day for a
period rather than going away on holiday.
No overview is available from the national industry association but indications are that
tourism may develop on the following lines.
Changes in leisure time: no changes expected.
Travel: there may be an increase in short and long haul travel.
Length and types of holiday: growth is likely in short and longer trips.
Tourism products: growing demand is probable from:
young people and young couples for beach, activities, winter sports., city breaks;
families for beach, winter sports, cruises;
independent family members for special interest, culture, event related, multi-city
tours;
retired people for winter sun, cruises, special interest, and culture holidays.
6.5.4.7 Switzerland
Statutory leave is 20 days but in practice 25 to 30 days is quite usual. There are 8 public
holidays. Working hours are increasingly negotiated on an annual rather than weekly
basis, increasing the flexibility of leisure time through the year.
Changes in leisure time: some decrease in working hours is possible together with an
increase in willingness to take full holiday entitlement and in expenditure on additional
holidays.
Travel: there may be some increase in short haul travel.
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Length and types of holiday: there may be an increase in extended weekends. Tailored
and independently organised holidays are the products most likely to increase in demand
but there may also be an increase in all inclusive holidays.
Tourism products: growing demand is expected from:
young people and young couples for cruises, winter sun, skiing, diving, trekking, sports
related, learning, self driving tours, wild life, theme parks, beach, event related, self
driving touring, cultural, special interest;
families for cruises, diving, self drive touring, city touring, health, theme parks;
independent family members for cruises, skiing, golf, trekking, sport related, coach
touring, event related, learning, cultural, wild life, city touring, health, theme parks;
retired people for cruises, golf, walking, coach touring, event related and cultural
holidays.
6.5.4.8 United Kingdom
Statutory leave is 15 days but the general practice is some 20 to 25 days. There are 8
public holidays.
Changes in leisure time: no change is likely in working hours or in willingness to take
full holiday entitlement. An increase in expenditure on holidays, especially additional
holidays, is possible.
Travel: some increase is likely in short haul and, especially, in long haul travel.
Length and types of holiday: the length of main holidays is likely to decrease with an
increase most likely in extended weekends, all inclusive, tailored and independently
organised holidays.
Tourism products: growing demand is anticipated from:
young people and young couples for beach, cruises, diving, sport and event related,
theme parks;
families for cruises, sport related, wild life, theme parks, self drive touring, city
touring;
independent family members for walking, cultural, special interest, multi-city tours,
city touring, health, cruises, golf;
retired people for cruises, winter sun, golf, walking, trekking, coach touring, event
related, cultural, special interest, wild life, multi-city tours, city touring, health, self
drive touring.
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6.5.4.9 South Africa
Statutory leave is 14 days and there are 12 public holidays. South Africa has been
seriously affected by the recent financial crises. This has resulted in devaluation and high
interest rates and fears of recession.
No overview is available from the national industry association but outbound tourism
growth is expected to be slow in the short to medium term. This may strengthen the
domestic market.
In the longer term the potential market for outbound tourism will benefit from proposals to
reduce working hours but in the short term the emphasis in tourism policy will be on
stimulating the inbound market.
6.5.4.10 Regional Overview
All the countries of the European Union now share the same minimum statutory holiday
entitlement. However, at 15 days annually, it is below the entitlements of most employees
and will have limited importance for tourism. Those who do benefit from an increase in
holiday as a result of the new statutory minimum are likely to be mainly interested in less
expensive products, whether domestic or outbound.
In France and Italy the working week is being reduced to 35 hours. The objective is to
reduce unemployment rather than to increase leisure time but it will offer some
opportunities to the industry. In many cases negotiations on this change are also
introducing more flexible working hours. So the outcome may be to spread some increase
in demand widely through the year.
Generally it seems that Europeans have sufficient leisure time to take holidays. However
there are indications that work pressure prevents some taking their full entitlements and in
the Netherlands one reason for interest in a right to pay instead of holiday above the
statutory minimum is a view that some employees are simply too busy to be able to take
their holiday. This situation is reflected in the response from the industry which reports a
continuing trend to more frequent but shorter holidays, especially extended weekends,
which enable people to avoid being away from the workplace too long but provide a
refreshing break.
In Europe holidays now play an important part in the lives of most people. In several
countries a holiday premium is paid. There may also be opportunities to bridge from
weekends to public holidays, to accumulate leave in order to take long holidays and to take
holiday during the best months of the year. This suggests a culture that gives holidays
greater importance than they have in North America or Asia. Yet, whilst present holiday
provision is not being challenged, it remains to convince European industry and most
governments that increased leisure is the way forward to improved economic performance
and high employment in an ever more competitive world economy.
In view of the trend among employers to offer flexible employment benefits, with holiday
as one option among others, and the recent implementation of the Working Time Directive,
establishing minimum holiday rights it would be timely for European Union governments
to monitor changes in holiday entitlement. Monitoring would cover the amount of holiday
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taken and how much is used for holidays away from home. This would provide the basis
for further research into the extent to which work and other demands are eroding the time
available for holidays.
The major consolidations taking place in the European holiday industry should yield
economies of scale, more integration of holiday components - travel, accommodation and
related services - and generate increasingly sophisticated products designed to appeal to a
European market of experienced but time pressed consumers.
6.6 Summary Findings on Leisure Time and Tourism
6.6.1 Leisure Time and Changing Work Patterns
In none of the eighteen countries is leisure time expected to increase significantly in terms
of paid or public holidays, in the short term.
The EU Working Time Directive provides a statutory basis for paid holiday but this
already existed in most member states and the level set will only increase holiday
entitlements for a comparatively small proportion of employees
The 35 hour week being introduced in France and Italy is designed to reduce
unemployment rather than increase leisure and the effect on holidaying is likely to be
marginal.
The new Japanese Happy Mondays result from moving existing public holidays, not
creating new ones.
the more flexible working patterns developing in many countries, together with
restructuring and delayering, are likely to lead to more individualised working patterns,
with longer, less predictable working hours for many. This will accelerate the trend
towards late booking and increase the importance of easy and efficient services for
holiday selection and purchase;
increased flexibility of work through the week and through the year, together with the
growth of long haul travel, will spread holiday taking more evenly through the year.
6.6.2 Competition for Leisure Time
The amount of leisure time available varies widely among the countries included in the
study. The proportion of that time which is spent on tourism will depend upon the
attractiveness of the products which the industry offers. As standards of living rise so the
range of leisure time options broadens. People lead fuller lives and have more hobbies and
interests. Many of these are focused in or near the home, which is increasingly a
relaxation and entertainment centre. Towns and cities around the world invest heavily to
become more pleasant places to invest in and to live in. So shopping, cultural, restaurant,
leisure and pleasure facilities proliferate, often on single sites so that people on tight
schedules can save time yet spend on a variety of activities and attractions.
At the same time, for many people, changes in the employment market are making time as
precious as money. In addition increasingly knowledgeable and experienced consumers
seek more value and individuality from their purchases, whether of goods or services.
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6.6.3 Successful Tourism Products
To meet contemporary holiday needs tourism products must compete with the pressures on
consumers' leisure time and the widening range of leisure opportunities near to home , as
well as with second homes and timeshare. There are also those attractions which offer
alternatives to overseas travel, for example Centre Parcs, which provide weather proof
centres for family water recreation holidays in northern Europe and Disney's Animal
Kingdom, which recreates Serengeti in Florida. Many theme parks offer day trips and
short breaks close to major conurbations.
A fundamental competitive advantage of leisure investments of this kind is that they offer
easy, convenient access. This must add to the vital interest of the tourism industry in
pressing governments to ensure the quality of transport services. Congestion, delay and
unreliable transport deter travel.
The overview of consumer product preferences at section 6.4 of this report illustrates the
diversity of holidays sought by an increasingly segmented market. Many of the products
show that consumers wish to pursue more intensely while on holiday particular
enthusiasms which they enjoy at home, perhaps a cultural or activity interest. In addition
to marketing through the travel trade there are many other opportunities to market to these
consumers, through, for example, affinity groups as well as specialist media. The holiday
offer can build on an existing enthusiasm for which the consumer will be particularly
determined to find time.
There is also a strong demand for escape and refreshment. In this case getting away from
home and work for a period is an intrinsic requirement which the holiday offer can satisfy.
The success of theme parks and cruises illustrates consumer enthusiasm for products
offering a range of activities and entertainment designed to appeal to all the family. Some
are to be enjoyed by the family together, others appeal to particular age groups and
interests. All are available together to be enjoyed intensively, often for a few days only.
Resorts which offer beaches and a range of activities also meet the need to pack relaxation,
and activity into limited holiday time.
Like other industries tourism now competes in a market place in which consumers have a
wide choice when they make spending decisions. But the tourism industry must persuade
purchasers to devote time as well as money to the product.
One means of doing this is to get closer to consumers and their holiday motivations by
developing relationship marketing and building up holiday biographies of clients. Taking
account of previous purchases, products can be selected and offered which are likely to be
particularly attractive and promise a satisfaction for which time must be found.
The variety of holiday products now available goes far beyond "sun, sea and sand", the
staple once offered by so many destinations. But continuing market research is needed to
establish what satisfactions consumers want from holidays, identify and remedy
weaknesses in current products and develop new ones. Increasingly these are likely to be
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modular packages which enable consumers to mix and match components, including trip
length, to meet their personal requirements.
Analysis of the views of the industry on growth prospects suggests that already a range of
products is well adapted to the changing market:
beach and other resorts which provide a range of activities and attractions in a good
environment, are easy to reach, pleasant to be in and have good communications to
home and office;
cities with good transport links, user friendly airports and an attractive environment
offering culture, entertainment and good shopping, which can be enjoyed during a
short break;
get away from it all" destinations, offering an excellent environment, whether for total
relaxation and tranquillity or for the pursuit of cultural , physical or environmental
interests; also with excellent communications with home and office;
theme parks, which are conveniently located, with good transport links and offer a full
range of entertainment and activities to be enjoyed by all the family over a short break;
cruises, many of which are getting shorter and more affordable and which, like floating
resorts, offer a full range of entertainment and leisure options to satisfy the whole
family.
These products, as well as meeting the holiday needs of those in the working population
and their families, also appeal widely to the young, to family members who may holiday
independently and to the retired but the industry also identified products with particular
appeal to these markets.
Products with distinctive appeal to the young include activity holidays, particularly diving,
skiing, trekking and soft adventure. These interests provide an indication of the probable
holiday preferences of this market as it grows older and comes under greater time
pressures.
Holidays with particular appeal to those taking holidays independently include special
interest holidays, coach touring, event related tourism and cultural and health related
holidays. These products are suited to individuals holidaying independently, whether to
avoid the difficulties of synchronising holiday taking with other family members or, in an
increasingly differentiated market, simply using their leisure time to pursue individual
interests.
Holidays with particular appeal to the retired include, winter sun, cruises, special interest,
cultural, coach touring, walking, and health related products.
6.6.4 Time and Money
The broadening of income differentials which has accompanied the pressure on leisure
time in many countries means that increasingly income is inversely related to available
time. So those in the working population who are best able to afford holidays have the
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greatest difficulty in finding time to get away, especially for more than a short break. The
challenge for the industry is to create compellingly attractive products that can be enjoyed
within the purchasers time constraints.
Reflecting this the response from the industry , in addition to the general expectation that
the greatest growth will be in short breaks, also shows that there is an expectation of
increased demand for tailored holidays. There are opportunities here for luxury and exotic
breaks but also for high quality domestic or same region or time zone products which
minimise travelling time as a proportion of the break and avoid jet lag.
Those with more time but with lower incomes will be concerned with affordability. This
may be reflected in the growth anticipated by the industry in fully inclusive holidays,
which make it easier for people to budget for their holiday before leaving home.
For all those affected by the increased flexibility of employment and greater work pressure
opportunities to select and book holidays at the last minute are important. This may
stimulate direct bookings and use of the internet but is also an opportunity for travel agents
who can provide fast, efficient service.
Income differentials are also widening among the retired and the gap between highly
priced and cheaper products aimed at this market is likely to increase. The retired who are
financially secure, with relatively high incomes, form the core of outbound tourism growth
in many countries and have the greatest potential for more frequent travel. A wide range
of products attract this market, but it is discerning, increasingly seeks tailored products and
has plenty of non travel related interests, which make many reluctant to be away from
home too often or too long.
The retired with less substantial incomes are likely to become even more cost and value
conscious, particularly in countries facing significant changes in pension arrangements, but
are an important market, especially for destinations where living costs compare favourably
with those at home and where long winter sun holidays are affordable.
In view of the importance of the retired market more research on their travel interests
would be helpful, focusing particularly on willingness to take extended holidays and to
travel in the shoulder months and out of season.
The older retired greatly appreciate ease of travel arrangements, not having to handle
baggage and having medical services at hand. Cruises meet these requirements well, offer
security and largely eliminate the effort that would otherwise be involved in visiting
several cities or other attractions within a short period.
Generally, however, as the retired grow older the propensity to travel gets lower. The
challenge to tourism marketing is to change, or at least defer, this.
Since populations are growing only slowly or stagnating in many of the established major
tourism markets, particularly Japan and most of the European countries, the retired market
is an increasingly important opportunity for growth and merits continuing close attention.
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6.6.5 Leisure Time and Economic Change
The future of leisure time will be shaped by the wider economic context, particularly the
current revolutions in production and information technology. The global economy is
heading towards an automated future that will provide more production with less human
labour.
A likely consequence is more free time. Will that free time take the form of
unemployment or leisure? This question is addressed by the American economist, Jeremy
Rifkin, in "The End of Work - the Decline of the Global Labor Force and the Dawn of the
Post-Market Era", published in 1995. Rifkin notes that the dramatic productivity gains of
the nineteenth century industrial revolution and of the electricity and oil based economies
which developed earlier this century led to a shortening of the working week in America to
around forty hours. Some observers have suggested the inevitability of a thirty or even
twenty hour week to bring labour requirements in line with the new productive capacity of
capital.
Yet, as Professor Juliet Schor has pointed out Americans have taken recent rises in
productivity as pay rather than leisure time. Rifkin argues that the explanation of this is
that the productivity revolution has affected the amount of time worked in two ways.
Technology has allowed companies to reduce the number of their employees substantially.
Employees are then obliged to work longer hours as companies find that a smaller work
force working longer hours saves employee related benefit costs and taxation.
In 1993, in response to continuing unemployment a Bill was introduced into the United
States Congress to reduce the working week to thirty hours as a means of spreading
employment among more workers and reducing unemployment and welfare costs. This
was successfully resisted by business on the grounds that higher labour costs would reduce
international competitiveness. Since then strong economic growth has reduced
unemployment to very low levels. Nevertheless debate continues in America over the
work-life balance. The premise is that long working hours are counterproductive,
demotivating for employees and do not encourage the fresh minded creativity which will
be vital to success in the knowledge-led economy of the 21st century.
In Europe, where there is still concern about high unemployment, the working hours
debate also continues. In 1996 the European Parliament called for a reduction of working
time, as a means of reducing unemployment and called on the European Commission to
consult all interests on the issues involved and encourage agreement on working hours
reduction. The Parliament suggested that this would stimulate strong demand for leisure
and an increase in employment in leisure related industries.
In 1997 the European Commission issued a Green Paper, "Partnership on a New
Organisation of Work", about the scope for improving employment and competitiveness
through better organisation of work. The purpose of the Green Paper was to stimulate
debate on new forms of work organisation. The possibility that reducing working time can
help reduce unemployment was among the issues addressed. The Green Paper suggested
that in certain circumstances this may be so but highlighted the need for a range of
conditions to be met and noted that successful working time reductions have usually been
incorporated into long term bargaining packages which include wage moderation. These
make it possible to use productivity increases to reduce working time over a period of
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several years, whilst at the same time reducing the wage increases needed to offset the
reduction in working time.
European employers and many economists remain sceptical that reduced working time can
reduce unemployment. The shorter working hours being introduced in France and Italy
will shed new light on this issue.
In Japan there has been some decline in the working week over recent years - in part to
improve the quality of life and in part to stimulate demand for leisure related goods and
services. If, as is widely forecast, the Japanese and other economies in the Asian region
experience industrial restructuring and rising unemployment a shorter working week and
increased holiday may come to be seen as a means of countering unemployment as well as
stimulating demand.
Governments throughout the world wish to reduce unemployment and recognise that in
future most new jobs will come in the service sector. So the tourism industry should
continue to highlight the fact that tourism is among the fastest growing and most labour
intensive of the service industries and has the potential to create many more jobs as leisure
increases.
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APPENDIX
LEISURE AND VALUE FOR TIME
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Changes in Leisure Time: The Impact on Tourism 145


The Henley Centre
2956:0698:TR
Leisure and value for time
16th November 1998
Paul Edwards
The Henley Centre
2956:0698:TR
The leisure society, what leisure society?
Number of hours of non-working time in a week
Source: The Henley Centre, Leisure Tracking Surveys
60
61
62
63
64
65
66
67
68
1992 1993 1994 1995 1996
67.3
66.9
66.8
66.1
65.2
Hours
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The Henley Centre
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Taking of full holiday entitlement
75
25
27
22 22
5
0
10
20
30
40
50
60
70
80
Yes Pressure of
work
Could not afford
to go away
%
Whether took full holiday entitlement Reasons for not taking full holiday entitlement
No Self
employed
Employer does
not encourage
it
Source: PSC 98
The Henley Centre
2956:0698:TR
The end of the weekend as we once knew it
% of employees sometimes or always working at weekends
0
10
20
30
40
50
60
70
80
90
100
UK Italy France Netherlands Spain Germany
57
56
36
34 34
31
37
18 18
20
14
16
Saturdays Sundays %
Source: Eurostat
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Changes in Leisure Time: The Impact on Tourism 147


The Henley Centre
2956:0698:TR
A society running out of time
Time
Declining
household size
1
12
2
3
4
5
6
7
8
9
10
11
Intrusiveness
of mobile phone,
fax, pagers etc
Variety of leisure
activities/possessions
Anxieties about
crime lead to car
use
Need for continuous
education
Out-of-town
work and
shopping Rising work
pressures and
insecurity
Growing care
for relatives
Flexible (un-social)
working hours
Growth of
self-employment
Traffic
congestion
The Henley Centre
2956:0698:TR
A society running out of time
Time
Declining
household size
1
12
2
3
4
5
6
7
8
9
10
11
Intrusiveness
of mobile phone,
fax, pagers etc
Variety of leisure
activities/possessions
Anxieties about
crime lead to car
use
Need for continuous
education
Out-of-town
work and
shopping Rising work
pressures and
insecurity
Growing care
for relatives
Flexible (un-social)
working hours
Growth of
self-employment
Traffic
congestion
Rising number
of women in work
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The Henley Centre
2956:0698:TR
Who feels time pressure?
% I never seem to have enough time to get things done
Time
famine
Time
panic
Time
rich
Time
poor
Source: The Henley Centre, Planning for Social Change 1996/97
0
10
20
30
40
50
60
70
80
90
100
1993 1994 1995 1996 Unem-
ployed
House-
wife
Male
full-time
Female
part-time
Female
full-time
53
56
57
61
48
64
66
72
80
%
The Henley Centre
2956:0698:TR
Value for time as important as value for
money
n Time pressure
n Time as currency
- spend time
- save time
- invest time
- waste time
n Time deepening
- eg Sport
n 33% would spend money to save time
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The Henley Centre
2956:0698:TR
Families are changing
n Less couples with dependent children
n More single person households
n More divorce
n Odd shaped families
The Henley Centre
2956:0698:TR
Quality Time becomes Precious Time
n The vision of family life put out by the media, and loved by
everyone is increasingly difficult to achieve:
- more working parents
- parents relationship under strain
- children becoming more independent
The time we spend with our Families has to be perfect
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The Henley Centre
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The blurring of leisure boundaries
Leisure options continue to proliferate
Eating and
drinking out
New
media
Sport &
fitness
Entertainment
Retail
Travel &
holidays
Source: The Henley Centre, Planning for Local Change 1998
The Henley Centre
2956:0698:TR
Competitors for time
n Disney
n Shopping
n Cinema
n Health and Sport
n Leisure Complex
n Television
n Computers and On-line
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The Henley Centre
2956:0698:TR
Teletext and holidays
n Almost 10% of holidays are booked using Teletext;
n 7 million people use Teletext every week to look at holiday
selection
n Internet for selection and booking
n Reverse marketing
Source: Teletext Holiday Booking Study; NOP Page Traffic Study
The Henley Centre
2956:0698:TR
Segmenting the holiday
Applying the dynamics of time and money
Money
Time
Upmarket packages
Exotic city break
Health farm
Long haul travel
Luxury world cruise
Homes abroad
Day out
UK camping
Weekend break by
the seaside
Long-term winter
breaks
Explore bus tour
Backpacking
Source: The Henley Centre
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