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Chapter 13

Tourism: Front and Center

WHAT IS TOURISM?
According to Theobald, tourism is defined as

The activities of visitors, persons travelling to and staying in places outside their usual environment for up to 12 months for leisure, business, pilgrimage, etc. A visitor (or tourist) is someone travelling outside of their usual environment. Sometimes the definition requires that the tourist spend one night away from home.

TRAVEL AND TOURISM


Travel (and tourism) has always been and is still an

important activity in North American society It is important to individuals and is important to local, state, regional and national economies The hospitality and tourism industries are strongly linked and it can be hard to separate them sometimes Broadly, T&T are the businesses and services that serve travelers away from home What are some examples?

TRAVEL AND TOURISM


The Travel and Tourism Industry includes the following: Restaurants Lodging/Resorts Airlines Rental Cars Travel Agents State and National Parks State Departments of Tourism Leisure activities

DIMENSIONS OF TOURISM
The following are dimensions that tourism and government organizations are often interested in tracking: Purpose of the trip Distance traveled Duration of the trip Residence of the traveler Mode of transportation Spending

FACTORS AFFECTING TRAVEL AND TOURISM


Travel can be affected by income, time

available, cost of gas, recession, amount of leisure time available, demographic shifts, travel advisories, border restrictions, etc.

TYPES OF TRAVEL
Not all travel is leisure (or pleasure) related

Travel can be for purposes of Business or

Pleasure 77 % of all domestic travel is for pleasure purposes People are traveling for pleasure when they want to experience new things, experience a change of pace, improve their health, visit friends and relatives, etc.

TYPES OF TRAVEL
Business travel is also a very important

component and can represent greater expenditures (hotels, air, restaurants) Business travel accounts for about 12% of all domestic travel Business travel can include persons attending meetings and conventions

THE U.S. AS AN INTERNATIONAL DESTINATION


The US leads the world in (inbound)

international tourism spending (over $70 billion) Much of the international travel here is made up of travelers from Canada and Mexico and is largely dependent upon exchange rates Also, even though the US does not have Approved Destination Status in China, more Chinese tourists are travelling here

THE U.S. AS AN INTERNATIONAL DESTINATION


Reasons people travel to the US Made attractions (Disney) Natural attractions (Grand Canyon, Niagara Falls) Cities (San Francisco, Washington DC, New York) Gaming (Las Vegas) Friends and relatives

FACTORS AFFECTING TRAVEL AND TOURISM


Like the hospitality industry, the travel and

tourism industry had a couple of difficult years but is currently healthy and growing Domestic travel is growing (US residents travelling in the US) Leisure time is increasing (again) Travel patterns are changing (shorter vacations)

MODES OF TRAVEL
Automobiles are still the most widely used

mode of transportation for travel (representing 90% of all trips taken). Airlines (a function of cost and distance) Ships/boats/ferries Trains Fly/drive Other (bicycles, motorcycles)

PASSENGER TRANSPORTATION
Only the rich (and daring) flew in the 1920s Air travel increased through the 1970s Deregulation (1978) brought more carriers,

increased competition and lower fares Air travel is increasing despite the recent problems that carriers have experienced Airlines had a very difficult 5 years but 2006 has been positive Airlines have attempted to cut costs by raising fares and partnering with other carriers

PASSENGER TRANSPORTATION
Airlines have challenges associated with high

capital costs, high labor costs, high fuel costs (25%), maintenance costs and high levels of uncertainty Five of the major airline companies were in bankruptcy during 2005/2006 Only three airlines made a profit in 2005 High fares are essential to making profits but airlines can find themselves in a Catch 22

LARGEST U.S. AIRLINES


1. American 6. Southwest

2. United
3. Delta 4. Continental 5. Northwest

7. US Air
8. America West 9. Jet Blue 10. Alaska Air

RESERVATIONS NETWORKS
Airlines long relied on Travel Agents to book

flights on their behalf Airlines have started to rely on them less and less because of the Internet and an attempt to save $$ (from commissions) Travel agencies are declining now but still book about 50% of all airline travel Travel Agents use Central reservation Systems such as Sabre and Amadeus

ECONOMIC SIGNIFICANCE OF TOURISM


Tourism is one of the largest industries in the

country and the world It provides more jobs than every industry but health care It has an even greater impact when the Travel Multiplier is considered (employee payroll, employee spending, taxes, etc.) States depend on tourism as well

STATE TRAVEL BUDGETS


1. Hawaii: $70.7 million

2. Pennsylvania: $64.7 million


3. Illinois: $49 million 4. Texas: $29.1 million 5. Florida: $24.7 million

ECONOMIC SIGNIFICANCE OF TOURISM


1. California $53 billion

2. Florida $52 Billion


3. New York $35.5 Billion 4. Texas $ 33 Billion 5. Hawaii $23 Billion

NONECONOMIC EFFECTS OF TOURISM


Crowding

Congestion
Impact on local quality of life Cost of living Pollution Degradation of the environment Loss of authenticity