Why is tourism important?

Tourism is an important part of the __________ of many richer countries,

especially those in Western Europe and North America. Today it is increasingly
seen by __________ countries as one of the best ways to earn ________ income,
provide jobs and improve _______ of living. Countries want to take advantage of
the _________ numbers of tourists and the money they have to _________.

developing standards spend growing foreign economies

 What is Tourism
and How has it
Grown?
 What is tourism?
 Where do people go on holiday?
 What factors affect tourism growth?
 How important is tourism in different
countries?
What is Tourism?

TOURISM IS…

TRAVELLING FOR
LEISURE
Where Do People Go on Holiday?

6 71
1 0
3 2 5 9
4
8

TOP TEN TOURIST DESTINATIONS

1. FRANCE 2. SPAIN 3. USA 4. CHINA 5. ITALY
6. UK 7. GERMANY 8. MEXICO 9. TURKEY 10. AUSTRIA
What Factors Affect Tourism Growth?
Growth in Tourism

• The world’s largest industry $500bn

• Leisure accounts for 75% of
international travel
• 900m tourists 2007
• Est 1.6bn by 2020

FACTORS AFFECTING GROWTH

1. Social/Economic Factors
Wealth has grown since 1950. Ave wage 2006
£23k in UK. Fewer children per family. More
leisure time with holiday entitlement now 5-6 wks
2. Technology Improvements
Travel is quicker and easier due to motorways,
airport expansion and jet aircraft advances.
Booking is easier with internet .
3. Expansion of Choice
1950s-60s coastal resorts in UK and National
Parks popular. 1970s package holidays in Europe
became popular. Worldwide destinations now open
How Important is Tourism in Different Countries?

USA FRANCE

USA EARNS APPROX MOST POPULAR TOURST

$66.5BN DESTINATION IN THE
FROM TOURISM PER YEAR WORLD. IN 2007 IT EARNED
MORE THAN ANY OTHER
COUNTRY FROM TOURISM

JAMAICA CHINA

AVERAGE TOURIST SPEND IN CHINA IS BECOMING A MORE

JAMAICA IS $900 PER PERSON POPULAR WITH 42M VISITORS
IN 2005
 Question Time!

Name 3 factors that have affected the growth of

tourism(3)

Using examples describe how important tourism

can be to a country (4)
 ON TO NEXT
Answers BACK TO
SECTION QUESTIONS

Name 3 factors that have affected the growth of tourism (3)

Mark Scheme
Point marked. Advances in technology (1) for example faster jet aircraft (1), social and
economic changes (1) like more leisure time (1) higher wages (1), wider choice of
destinations (1)

Using examples describe how important tourism can be to a country (4)

(6) Mark Scheme
Answers should focus on a range of countries. Examples could be USA has the highest income from
tourism with about $66.5 billion. France is most visited country with over 76 million visitors. Jamaica’s
GDP is 50% from tourism

Level 1: (1-2) Basic answer, no development of points, possibly only one country used. e.g.
poor countries get money, lots of people visit countries

Level 2: (3-4) Clear answer, more than one country used e.g. Tourism in Jamaica makes up
50% of GDP and tourists spend on average $900 per person.
 The Growth of Tourism

2010/
1950s/
1990s/
1970s/
Pre War
onwards
2000s
60s
80s

Pre War 50/60s 70/80s 90/00s 10s

Tourism in UK Domestic UK seaside Cheap air travel Long haul and
mostly domestic tourism grows holidays peak in becomes the extended hols to
based. Only rapidly as UK mid 70s(40m) norm and city ‘exotic’ location
wealthy and economy booms. visitor. Package breaks boom. increase.
privileged go Annual holidays holidays abroad Long haul
abroad become common become popular holidays boom.
External Factors Affecting UK Tourism

Terrorism

The destruction of the Twin

Towers during the 9/11
attacks had huge impacts on
travel. Fear of flying
produced an immediate 30%
drop in flight demand. Long
term impacts have seen Banking Crisis
security checks increased.
The 7/7 Underground The crash of world bans had a
bombings caused visitor devastating effect on tourism.
numbers to drop sharply in the The cost of travel has rose
immediate aftermath significantly forcing people to
take ‘stay-cations’. The
Euro’s value has risen against
the pound making Eurozone
countries more expensive.
Use the images to help you
create a list of factors that
could influence travel and
tourism…
What factors can influence global
travel and tourism??

• Economic Factors
• Political Factors
• Social Factors
• Technological Factors
• Ecological Factors
• https://youtu.be/7163X9YEmGE
 Economic Factors Influencing
Travel & Tourism

Learning Objective: To be able to understand how different

economic factors can influence global travel and tourism.
 Economic Factors…

• Changes to National economy & GDP

• Levels of disposable Income
• Changes in distribution of wealth
• Levels of employment
• Infrastructure development & Improvement
• Fluctuations in currency exchange rates
What does the work ‘GDP, GNP ’
mean?

GNP and GDP both reflect the national

output and income of an economy.

GNP (Gross National Product) takes into

account net income receipts , value of
all goods and services produced by
nationals – whether in the country or
not. from abroad.

GDP (Gross Domestic Product) is a

measure of (national income = national What does the work ‘Per capita
output = national expenditure) Income ’ mean?
produced in a particular country.
Per capita income or average income
measures the average income earned
GNP = GDP + net property income from
per person in a given area in a
abroad. This net income from abroad
specified year.
includes dividends, interest and profit.
W.W. Rostow and the Stages of Economic Growth 1960 pg 17
The model asserted that all countries exist somewhere on this linear spectrum, and
climb upward through each stage in the development process:
 Traditional Society: This stage is characterized by a subsistent, agricultural
based economy, with intensive labor and low levels of trading, GDP and per capita
income and limited technology
 Preconditions to Take-off: this is when the country has better levels of
technology and transport system. This encourages trade and GDP and per capita
income
 Take-off: industrialization grows rapidly along with better infrastructure-
airports, roads, railways. GDP and per capita income rises quickly. E.g.- present
LEDC countries
 Drive to Maturity: Growth in standards of living, the use of technology,
complex transport systems, and manufacturing helps to sustain GDP and rising
per capita income levels . The national economy grows and diversifies.- Tiger &
BRIC countries
 Age of High Mass Consumption: Rapid expansion of tertiary industries and a
decline in manufacturing. E.g.- MEDC countries where GDP is high but growth is
slow. Per capita income being high, large sections of people have high disposable
income, which increases a person’s interest to travel or buy a variety of goods and
services
 Disposable income
What does the work ‘Disposable Income ’ mean?

Refer to Pg 18
Table 1.6
Change in distribution of wealth
Rapid income growth within emerging economies is creating
new markets and new sources of competition.
Economists suggest that BRIC countries hold the key to
economic growth for the future.

By 2050- China and India- worlds dominant suppliers of

manufactured goods and services
Brazil and Russia- Dominant as suppliers of raw materials.

Due to lower labour, many companies consider BRIC as a

source of foreign expansion opportunities
 Employment Levels…
Refer to Pg 19 Table 1.7

Due to advances in technology, traditional jobs have

become automated. More people are employed in tertiary
or service industries ( Tourism)

Levels of employment affect the levels of disposable income

that people have to spend on holidays, travel costs and
living costs within a destination.
 Task Two
Use the graph below to describe how employment levels
may have influences global travel and tourism between
2008- 2014.
 Changing Cost of Fuel

Think, Pair, Share…

How would the change in cost of fuel affect global travel

and tourism…
 Currency Exchange Rates…
Task: Google currency exchange rate…

Where in the world has the best currency exchange rate?

Have currency exchange rates changed much in recent years?

Currency Exchange Rates…

Curre.ncy rates are influenced by

economic factors like difference in interest rates, economic

performance, supply and demand of currencies

The strength of the dollar against major other currencies tell whether
tourists will gain value for their money while travelling overseas

While travelling to foreign countries, they have to convert funds to that

particular country's currency to send money.
When travelling to a country whose currency rate is lower than your
own country's., you ___________________ WHY??
Exam Practice
Infrastructure development &
Improvement
Private sector- privately owned, not a part of the government
Public sector- Owned and operated by government. – National, federal, provincial,
state or municipal governments.

Tourism infrastructure is the basis of tourism development and utilization of existing

destination resources. Tourism infrastructure includes
a large number of services, accommodation, restaurants, tours and transport
necessary to meet the needs of tourists and increase satisfaction during their stay at
the destination.

Private investors will invest in tourism facilities only if there are good airports, roads,
services like water, sewage electricity, health facilities and telecommunications
which is the job of the public sector.

Today many governments around the world are investing in infrastructure

development as a stimulus to achieve more economic growth and more tourist
visitors