travel industry wiki

Tourism/Introduction

This topic will assist you in developing an understanding of the many aspects of the tourism industry, and an appreciation of its place in the global and local economies.

This topic is used in:

• International tourism
• 1 Learning support and certification
• 2 Introduction
• 3 What defines tourism
• 4.1 International Organisations
• 4.2 Regional International Organizations
• 4.3 National Organisations
• 4.4 Local Authorities
• 5.1.1 Water Transportation
• 5.1.3 Land Transportation
• 5.2.1 Grading Systems
• 5.3 Activities and Attractions
• 5.5.1 Food and Beverage
• 5.5.2 Shopping
• 5.5.3 Insurance
• 5.5.4 Foreign Transactions
• 5.5.5 Commission Charges
• 5.5.6 Currency Codes
• 5.5.7 Currency Exchange Rates
• 5.5.8 Tourist publications and information
• 5.5.9 Entertainment
• 5.6 Indirect Elements
• 6.1 Economic Impacts of Tourism
• 6.3 Multiplier Effect
• 6.4 Leakages
• 6.5 Balance of payments
• 6.6 Employment
• 6.7 Investment and development
• 6.8 Social and Environmental Impacts of Tourism
• 8 Review Questions
• 9 References

Learning support and certification

Formal learning support and certification services for this topic is offered by:

Introduction

Tourism is one of the world's fastest growing industries as well as the major source of foreign exchange earnings and employment for many developing countries.

World tourism demand continues to exceed expectations, showing resilience against extraneous factors. According to the UNWTO World Tourism Barometer, released (November 2006):

• In the first eight months of 2006 international tourist arrivals totaled 578 million worldwide (+4.5%), up from 553 million in the same period of 2005, a year which saw an all-time record of 806 million people traveling internationally.
• Growth is expected to continue in 2007 at a pace of around 4% worldwide.

Tourism is vital to the well being of many countries, because of the income generated by the consumption of goods and services by tourists, the taxes levied on businesses in the tourism industry and the opportunity for employment and economic advancement by working in the industry.

What defines tourism

The concept of tourism refers to the broad framework that identifies tourism’s essential characteristics and distinguishes tourism from similar, often related but different phenomena The two terms ‘travel’ and ‘tourism’ can be used in isolation or together to describe three concepts:

• The movement of the people
• A sector of the economy or an industry
• A broad system of interacting relationships of people, their needs to travel outside their communities and services that attempt to respond to these needs by supplying products
• International Tourism: Consists of inbound tourism, visits to a country by non-residents, and outbound tourism, residents of a country visiting another country
• Internal Tourism: Residents of a country visiting their own country
• Domestic Tourism: Internal tourism plus inbound tourism (the tourism market of accommodation facilities and attractions within a country)
• National Tourism: Internal tourism plus outbound tourism (the resident tourism market for travel agents and airlines)

According to the WTO tourists are people who: “travel to and stay in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited.”

Devised by WTO was endorsed by the UN Statistical Commission in 1993 following an International Government Conference held in Ottawa, Canada in 1991.

Before people can experience tourism they usually need at least:

• disposable income, ie. money to spend on non-essentials
• leisure time
• tourism infrastructure, such as transport and accommodation.
• Other factors such as health and motivation to travel are also important.

As a service industry, tourism has numerous tangible and intangible elements. Major tangible elements include transportation, accommodation, and other components of the hospitality industry. Major intangible elements relate to the purpose or motivation for becoming a tourist, such as rest, relaxation, the opportunity to meet new people and experience other cultures, or simply to do something different and have an adventure.

Following is a range of aspects to do with the tourism industry. Please feel free to expand the dot points with your own findings and research.

Structure and organization

The tourism industry is based on many different components and interrelated parts. For example, transport, accommodation, attractions, activities, marketing and government regulation. Many businesses span more than one sector and the impacts in one part of the tourism industry have significant implications for other sectors.

The tourism industry includes:

• those sectors which enable the tourist to travel to and from the destination (for example travel agents, airlines, bus companies, tour operators and rental car companies)
• those sectors which are part of the product at the destination (for example, accommodation, facilities and attractions)
• the human component of tourism (the labour force)
• public sector or government agencies, regional tourism organisations, professional associations and industry training organisations.

((Figure 4.1 P94 – Tourism,Principles,Practices, philosophies))

International Organisations

World Tourism Organisation (UNWTO) is the most widely recognised and the leading international organisation in travel and tourism today. It is a specialised agency of the United Nations. It serves as a global forum for tourism policy and a practical source of tourism know-how. With its headquarters in Madrid, Spain the World Tourism Organisation plays a central and decisive role in promoting development of responsible, sustainable and universally accessible tourism, with the aim of contributing to economic development, international understanding, peace prosperity and universal respect for and observance of human rights and fundamental freedoms.

Its membership includes 150 countries and territories and more than 450 affiliate members representing local governments, tourism associations, educational institutes and private sector companies including airlines, hotels and tour operators.

Other international organisations which have a specialised interest in tourism include the International Civil Aviation Organisation (ICAO) which is a specialised agency of the United Nations and is concerned with the development of international civil aviation, and the International Governmental Maritime Consultative Organisation (IMCO) which is an inter-governmental organisation concerned with co-operation in sea transport.

The International Air Transport Association (IATA) is an association of airlines concerned with the development and regulation of the air transportation industry. Members comprise of approximately 80% of the world’s international airlines.

Regional International Organizations

The Pacific Asia Travel Association (PATA) is a mix governmental and non-governmental bodies that work together to promote tourism industry professionalism in the Asia and Pacific area. http://www.pata.org

European Civil Aviation Conference (ECAC) this is a regional organisation with a specialised interest in tourism and concerned with co-operation and co-ordination of European airlines. www.ecac-ceac.org

European Travel Commission is a strategic alliance that provides for the collaboration between thirty-three European national tourism organisations. The commission’s goal is to attract customers from overseas markets to come to Europe through promotional campaigns and industry trade shows. www.visiteurope.com

National Organisations

Public (government) sector

The major reason for government involvement in tourism is concerned with the welfare of their citizens and the overall welfare of their country. This relates to areas such as economic stability, protection of natural resources, national security, public health and employment. Tourism activity can occur in all of these areas so governments are concerned that it is regulated and directed so as to ensure maximum benefit for the country and the negative factors are minimised.

The degree of control differs between each country. State organisations in the former Soviet Union had almost total control of tourism from the formation of policy to running the only travel agency Intourist, airline Aeroflot and over 40000 rooms.

The only remaining countries that still control tourism completely so that independent travel is impossible are North Korea and Turkmenistan.

In capitalist countries, the mix of private-sector and public-sector involvement in tourism varies considerably between each country.

The United Nations Conference on International Travel and Tourism in Rome in 1963 adopted the following resolution:

Virtually every country in the world has a national body responsible for tourism. It can be part of a ministry, a constituted part of a government department or an organisation with a separate legal status. Generally the role of a NTO will be to ensure appropriate development and promotion of a nation as a tourism destination. This can include the following functions:

• information and promotion within the country
• overseas promotional activities
• international relations
• development of tourist areas
• overall tourism policy and promotion
• in supporting key tourism interests in a time of financial crisis

A list of NTO’s worldwide is found at http://www.towd.com For example:

• Canadian Tourism Commission
• Tourism New Zealand
• Japan National Tourist Organisation

Local Authorities

Below the National Tourism Organisations, in most countries, there is often a complex web of organisations which complement the work of the NTO at the regional and local level. Their activities are often a scaled-down version of the NTO’s work at a regional level; they often implement national policy and pursue integrated activities with the NTO providing guidance.

((Presentation ‘Key elements of Tourism’ to be inserted here))

Direct elements of the Tourism Industry - Those areas of the tourism industry which come into direct contact with tourists

Accommodation

• Attractions

Ancillary Services

Indirect elements of the Tourism Industry - Often called support sectors. Those parts of the tourism industry which may not come into direct contact with tourists, but without the rest of the industry could not function.

• Infrastructure
• Communications
• Public Toilets
• Manufacturing
• Building Industry
• Electricity
• Water supply
• Sewerage and waste disposal

Tourism, for some countries, is of almost importance. Countries such as Grenada etc.

Direct Elements

Transportation, water transportation.

Transport by water can be an attraction in itself whether you are travelling on a cruise ship in the Mediterranean or on a ferry between Wellington and Picton. Travelling by water has been more popular as tourists seek to avoid the frustrations of air travel with its airport delays, congestion and the lack of comfort in the air (unless travelling first class!). Cruising has undergone a revival and all forms of recreational pursuits on the water including yachting and jet boating have expanded to fulfil this demand.

Advances in aviation technology has meant that travel by air is now relatively safe, economical, quick and reasonably comfortable. The development of the jet airliner after World War II to the first jumbo jet, the Boeing 747 in 1970 led to rapid falls in seat cost per passenger kilometre. The advances have continued with the Airbus ‘super jumbo’ A380 a double-decker aircraft seating between 550-800 passengers enters service in late 2007 with Singapore Airlines operating the aircraft on the London -Singapore – Sydney route.

A380 cabin cross section showing economy class seating

There are two basic type of air transport operation:

• Scheduled services
• Charter services

Scheduled services operate on defined routes, domestic or international, for which licences have been granted by the governments concerned. The airline must operate on the basis of their timetable regardless of the passenger loading.

Fully state owned carriers such as Singapore Airlines and the Emirates are known as the national flag-carriers. Even when the carrier has been privatised as in the case of British Airways the airline is still seen as the national flag carrier. Air New Zealand was privatised but after the 9/11 disaster 80 per cent of the carrier was returned into public ownership. Air transport is very important to the national economy of a country and a government will often assist in times of crisis.

Low Cost Airlines LCA’s or LCLF (low cost low fare) carriers has been a major development in scheduled services in the last decade. A total of 80 million people travelled on European no-frills carriers in 2004 up from 47 million in 2003. These airlines create a cost-competitive advantage by using some of the following means:

• operate from secondary airports which have lower landing fees and are less congested allowing quicker turnarounds and more flights
• operate on high density, short-haul routes with one class of seating
• charge passengers for food, drink and entertainment
• sell only via the Internet
• tickets are inflexible – generally non-refundable
• not operating frequent flying programmes and keeping airport passenger services to a minimum

Charter services do not operate according to a published timetable and so do not have to operate with uneconomical loadings. They are not advertised or promoted by the airlines themselves as they are usually charted by intermediaries – usually tour operators. Many charter flights are sold as part of a package holiday in which the price paid includes flights, accommodation and other services.. Such packages are frequently cheaper than regular schedule airline fares. Furthermore charter airlines frequently operate on routes, or to airports, where there is no scheduled service. Much of the traffic through small and medium sized airports in the United Kingdom consists of charter flights, and the survival of these airports often depends on the airline landing fees they get from the charter companies.

Although charter airlines typically carry passengers who have booked individually or as small groups to beach resorts, historic towns, or cities where a cruise ship is awaiting them, sometimes an aircraft will be chartered by a single group such as members of a company, a sports team, or to travel to a major event.

Many airlines operating regular scheduled services (i.e., for which tickets are sold directly to passengers) have set up charter divisions, though these have not always proved competitive with the specialist charter . In New Zealand, Freedom Air was established by the Mount Cook Group in response to the competition from the charter airline, Kiwi Air (went in to voluntary liquidation in 1996). Freedom Air now operates as a scheduled airline from smaller airports eg Dunedin and Hamilton. The economics of charter flights demand that the flights should operate on the basis of near 100% seat occupancy.

Land Transportation

Land transportation can be used for travelling from home to a host destination, within the destination and between the host destinations.

Tourists can use privately owned cars for independent and flexible holidays both domestic and international. They can take day excursions or longer trips. The explosion in private car ownership has changed the tourism industry by establishing a need for motels, bed and breakfasts, home stays, roadside cafes and car ferry services particularly in Europe.

The car rental business is divided into two categories, the large international companies e.g. Hertz, Avis, Budget and the small, locally based companies. The larger companies will have contracts with airports and railways maintaining a desk at the location for easier collection of vehicles, links with airlines and hotels, (some large hotel chains offering desk space in their reception area) and access to their business through a computer reservation system (CRS) and website.

Rail travel has declined in popularity because of the rise in ownership of private vehicles, the advent of jet aircraft and the failure of rail operators around the world to adapt to changing tourists needs. The Orient Express (www.orient-expresstrains.com), the Trans-Siberian Railway and the Tranz Alpine railway (www.tranzscenic.co.nz) are all well known for their sight seeing appeal and are attractions in their own right. Rail can provide efficient links between airports and city centres and can carry large numbers of passengers and luggage. E.g. London, Frankfurt, Paris and Rome. Trains often have an advantage over coach travel as they are a lot faster. Inter-city express services operate in Britain, Europe, U.S.A. and Japan. For rail travel within a city, tourists tend to travel by underground trains such as the ‘Tube’ in London, Le Metro in Paris and the ‘Bart’ in San Francisco, Hong Kong, Singapore, Rome and Prague also have their own underground rail systems. Tickets offering unlimited travel by train, marketed to inbound tourists and only sold prior to departure, have boosted sales of rail travel. These included Eurailpasses in Europe and Britrail pass in Britain.

These are becoming increasingly popular both in New Zealand and overseas especially in the USA where more than 25 million Americans make use of them each year. While not cheap to hire, they have the advantage of flexibility and independence providing both transportation and accommodation.

Coach operations can be categorised as follows:

• express coach services, domestic and international
• private hire services
• tour and excursion operations
• transfer services

Greyhound in the USA is one of the most famous inter city express coach operators but must compete with budget airlines and AMTRAK rail services for its customers. In New Zealand, the Intercity bus service operates between major cities. Coaches can be hired by groups to travel to special events e.g. Millbrook concerts or for educational purposes e.g. tourism students educational tours. Escorted package tours are the most visible use of coaches in the travel industry where there is a combination of accommodation, sightseeing by coach and transportation between cities. E.g. Trafalgar Tours, Contiki Tours. The majority of coaching holidays are booked by the over-45s. City sightseeing tours for half-day or full-day are usually undertaken by coaches or mini-buses. They can be specialised coaches such as London’s double-decker buses or open-decked used in Auckland.

Transfers from airports to hotels are often by provided coach transportation especially when the distance makes the cost of travelling by taxi prohibitive. Some accommodation providers will also provide complimentary transfers by mini-coach or they will be included in the cost of the package holiday.

The accommodation sector provides an enormous variety of accommodation types to suit a wide range of visitors. Accommodation ranges from luxury 5 star hotels which provide facilities and services such as 24 hour room service, gyms, swimming pools etc. to camping grounds where the visitor is provided with a patch of ground on which to pitch a tent. Classification of different types of accommodation is very difficult as they can mean something different in another country. In the USA, the meaning for an ‘inn’ is hotel or motel style accommodation usually operated by a chain e.g. Holiday Inns. In Britain, and ‘inn’ would describe pub-style accommodation offering bed and breakfast style accommodation.

Grading Systems

There are many grading systems recognised by visitors and the accommodation industry. Grading Systems are used to encourage and ensure a consistency of quality.

Systems may be administered by public organisations or privately by organisations such as accommodation chains and franchises. The most recognisable of these grading systems is the “star” system where individual accommodation is rated depending on its levels of service, cleanliness, décor and facilities. For instance most people recognise that a 5 star hotel will have excellent service, be exceptionally clean and tidy with housekeeping staff on call 24 hours, have up to date, luxurious décor and have a wide range of facilities on offer. A 3 star hotel on the other hand will have fewer facilities, less luxurious décor and more limited service, e.g. a limited 24 hour room service menu instead of the entire restaurant menu.

While this “star” system is recognised internationally it is not administered at an international level, but rather at a national or in some cases regional level. This leads to inconsistencies as to what the star grades actually mean. Many national tourism organisations are now actively developing standardised grading systems and encouraging accommodation providers to allow their accommodation to be graded.

The benefits of this are:

• Visitors can easily choose accommodation which will suit their needs and budget, while being assured of quality.
• Accommodation providers have a clear understanding as to what standards are expected of them.
• Accommodation providers can use their rating on their promotional material.
• As more accommodation businesses join the grading scheme the over all quality of a destinations accommodation improves.
• This gives visitors an overall impression of the destination as one of quality.

New Zealand uses the Qualmark model to grade its accommodation. This model is recognised internationally and uses a Qualmark star grading of 1 to 5. Accommodation is rated by type:

• Holiday home
• Holiday park
• Student accommodation
• Self contained & serviced

In the United Kingdom, accommodation is graded according to stars, diamonds or crowns. In the USA a 5 star hotel would be graded as ‘deluxe’ then to ‘first class’ to ‘superior’ and the minimum grading would be ‘tourist’ or ‘budget’.

Activities and Attractions

All destinations require features that will attract tourists to come and see and experience these activities and attractions. They can range from physical features; beauty of the mountains to the quality of a beach to activities such as jet boating down a river or shopping and entertainment.

Attractions can be categorised as either natural which includes mountains, geothermal areas, forests or constructed attractions which must be created and maintained. Examples of constructed attractions are amusement parks, museums and art galleries, wildlife parks, events, staged entertainment, cultural exhibitions, gardens and historical buildings.

Also known as the travel sector, sales involves the distribution of tourism products to the consumer through retail travel agents, tour operators and wholesalers. As already demonstrated the tourism product is diverse and includes transport, attractions/activities, accommodation and ancillary services. The sales sector is especially important in tourism because the customer and the service are geographically separated. For example, a customer in Brisbane may purchase the bulk of their Central Otago skiing holiday at home, before they leave, including: air tickets, transfers, hire car, hotel accommodation and ski passes.

The tourism product can be sold in a variety of ways:

1.The customer purchases directly from the supplier (principal) Many companies such as Air New Zealand are encouraging their customers to do this, especially for domestic flights. The growth in internet use and the ease of gaining information and booking via the web means more and more visitors are choosing to book tourism products themselves.

Advantages for the supplier are more profit as no commission has to be paid to intermediary, save time and reduce possibility of mistakes and supplier maintains control of sale e.g. a hotel could offer an upgrade to a suite to promote future business with customer. Disadvantages would be increased cost to supplier in establishing an office to promote their product and can antagonise intermediaries

2.The customer accesses the supplier through an intermediary Intermediaries include retail travel agents, conference planners and information offices (I-Site in New Zealand). Sometimes organisations usually considered to fall within the other sectors may also act as intermediaries e.g. a hotel booking guests into an activity and taking payment, or a tour company booking clients into accommodation. Intermediaries usually gain a commission of between 10 and 20% for making bookings.

An intermediary will provide a service that adds value for the traveller. For example, a travel agent may negotiate with an airline for special rates or conditions, or they may offer value in other ways such as providing specialised knowledge or a greater range of choices for itinerary planning. Travel agents may specialise in particular destinations, modes of travel or provide services for niche market segments.

3.The customer accesses the supplier through two intermediaries. Travel agents will often use wholesalers to book products for their clients. Wholesalers negotiate with suppliers and sell products such as all-inclusive tours. Many retail travel agencies have wholesaling arms e.g. the retail travel agency chain House of Travel has the wholesale arm Travel Plan.

Wholesale tour operators put together tours combining transport, accommodation, activities and in the case of fully inclusive tours ancillary services such as food etc. These tours are usually sold via a travel agent. Some tour operators do deal directly with the public i.e. Contiki.

The travel agents role is different to other retailers because they do not purchase a product for resale to their customers.

Travel agents and tour operators can earn their income from commission paid by the service provider they are representing, and not by the purchaser. Airlines are reducing the levels of commission they currently pay to agents making it necessary to sell more to make larger amounts of commission these days.

Examples of commission rates to travel agents include 5-9% on international air tickets, 10% for a tour package, cruise or accommodation (this can be more depending on the preferred status held with the supplier), and 33% for travel insurance.

With the current changes to the commission system such as a single capped fee, direct booking over the phone or internet and e-ticketing, agents are working harder to make their commission. The focus on selling domestic fares is lower as there is very little to be made on these bookings now days and more concentration is taking place on the add-ons to the international flights.

Some travel agencies also generate income from bureau de change or traveller’s cheque operations. Traditionally, this has been a significant source of income for some major travel chains such as Thomas Cook and American Express. However, with electronic banking, direct booking and the introduction of the Euro, their income is also decreasing. It represents a saving for the consumers who are benefiting by saving on commission.

ancillary services of tourism Ancillary Services are the 'Extras' of a holiday, such as; -Travel Insurance -Park/Event Tickets -Car Hire -Car insurance -Airport Parking -Money; Foreign Exchange -Luggage -Tour Guide -Chauffeur Service

These are the things you would need to complete your holiday, apart from booking your hotel and accommodation the ancillary's is what makes the holiday and are all the extra important pieces you would need to sort out. For example with travel insurance if your luggage is lost at the airport the travel insurance would cover that and help and secure you along the way of finding your luggage no matter what it took.

Car Hire/Insurance/Airport Parking all come under the same category, you would need to have a valid driver's license to drive over in a different country therefore if you was going somewhere, were you would need to travel to far distance places a car hire would be very reasonable and useful, then you would have to pay for the insurance on that car to use it abroad and pay for the parking at the airport.

Again if you are visiting different parks, in Florida maybe you would need to have a car to travel to all the different parks or events that might be happening on your holiday, therefore you would need to purchase your park/event tickets. Before you even go on holiday if it's an outbound holiday you would have to change your currency for example if you was going on holiday to Spain you would have to change pounds to euros or Florida; pounds to dollars. There are many different aspects to ancillary's which are very important and make up your holiday and make it secure and easier for you, if don't have many of these aspects covered especially if you know you need them to get through your holiday then you probably aren't going to get very far and if anything goes wrong.

Ancillary services refers to organisations that do not have a direct role in travel and tourism, but play a supporting role, perhaps offering related products and services. Example of a travel agency, the main products it sells are holidays and flights, but it will offer a wide range of ancillary services in order to provide a full service for its clients and earn extra revenue. Examples include insurance companies that offer travel insurance and car parks operators that provide parking facilities at airports as well as in other locations. Some other examples are:

• luggage • foreign exchange • car hire • luggage transportation • theatre and event tickets • tour guiding

The commission earned on the sale of these items is often higher than the travel agent receives for selling holidays and flights, so they are an important source of extra income. There are a growing number of companies that specialise in offering ancillary services to the travel trade and direct to the public. Selling extras is also an important source of income for tour operators.

Food and Beverage

One of the most important experiences while on holiday for a lot of travellers is the consumption of food and beverage, enhanced when the food and drink in question is exceptional and/or exotic which is often the case on holidays abroad.

Countries with well-established reputations for their food and drink have ensured that these attractions are promoted prominently in their tourism campaigns. Tours are now from New Zealand offering tuition in French cooking and the many food and wine festivals around the world attract both domestic and international tourists.

One of the most famous Festivals is Oktoberfest, held annually in Munich, Germany for 2 weeks. The Speights brewery tour in Dunedin is world renowned with tourists having to book in advance.

Research conducted by Tourism New Zealand has shown that ‘Interactive Travellers’ to New Zealand are especially interested in experiencing the country’s local food and wine.

The dominance in the UK and around the world of transnational corporations such as McDonalds, KFC and Burger King has changed the eating habits of travellers. The more unadventurous of tourists can now be comfortable eating food similar to the food at home. Research conducted by Tourism New Zealand has shown that ‘Interactive Travellers’ to New Zealand are especially interested in experiencing the country’s local food and wine.

Shopping has become the number one activity of tourists in the world. Designer brand outlets are very popular destinations throughout the United States attracting millions of visitors each year from countries such as China, Brazil, and UK. Top US destinations include Orlando Premium Outlets, Woodbury Commons Premium Outlets, Las Vegas Premium Outlets and Desert Hills Premium Outlets near Palm Springs.

Shopping can be both an attraction and a basic facility which tourists will expect at a destination. This can include souvenir shopping or purchasing basic necessities such as shampoo. Products which identify with a destination are always popular. In New Zealand, anything to do with the kiwi is sold in huge numbers in Hawaii its pineapples and macadamia nuts.

Insurance is a very important aspect of a tourist’s travel arrangements. Most policies will cover the following:

• medical care and hospitalisation
• personal accident
• cancellation/curtailment of holiday
• delayed departure
• baggage loss
• personal liability

The traveller must ensure that medical coverage is sufficient to meet their needs particular in countries where hospital care is very expensive. In the USA, costs in excess of $1 million are not uncommon for serious illnesses.

Foreign Transactions

The cost of an international trip can be substantial and often difficult to estimate in advance. Several factors can influence this with the key one being fluctuating exchange rates. Local taxes and tipping may be add-ons to prices that were not anticipated in advance. It is also important to consider the e cost of living between countries and how that contributes to the travellers perceptions of value.

An example of cost of living in countries would be those who want to travel to Scandinavia. The cost of living is very high especially when buying food. In somewhere like Bali the cost of living is not as high – food and souvenirs are much cheaper but it must also be remembered that tourists help to boost the economy. Hence, after the bombing in Bali in 2003 the economy took a dive until tourists deemed it safe to travel there again.

International travellers have an increasing number of ways they can pay for goods and services while in a foreign country. These include:

• Taking cash from home. However, this may lead to theft or loss, and some countries have restrictions on the import or export of their currencies.
• Taking traveller’s cheques. Used widely around the world, traveller’s cheques provide security with compensation for theft and loss. Standard premium charge of 1%.
• Arrange for the advance transfer of funds to a foreign bank.
• Use travel vouchers provided by travel intermediaries. Tour, transport, accommodation or meals may be purchased in advance.
• Use a credit card to purchase goods and services or for cash advances. Fees may apply and if there is a delay between purchase transaction and debit of the holder’s account, currency exchange fluctuations may alter the amount of the purchase.
• Use an eftpos card to access money/make purchases. The card needs to have the internationally recognised symbol on the back of it and then funds are accessed direct from bank account and are available from ATM machines 24 hours a day.

Commission Charges

The standard commission charged is 1.5% which can be a relatively small amount if the traveller is not purchasing much. Therefore, there is a minimum charge which is passed on to the client of $5.00 if the 1.5% commission is less than $5.00. This discourages people from only exchanging small amounts of traveller’s cheques over the counter.

Currency Codes

Currency codes are three letter standard abbreviations which identify the currency of the country. Eg. NZD = New Zealand Dollars, GBP = Great British Pounds The introduction of the EURO has reduced the number of foreign currencies now used in Europe and makes it easier for the traveller when carrying traveller’s cheques, for instance.

Currency Exchange Rates

International transactions require buyers and sellers to deal in foreign currencies. The price of one currency in terms of another is called the exchange rate. Currency exchange rates are usually floating and values fluctuate depending on supply and demand in the global marketplace. Fluctuation, either appreciation or depreciation, depends on a number of economic and political considerations. If a country, for example, suffers a war or terrorist attack then it becomes politically unstable and people will not go there. If it is not receiving large numbers of tourists anymore then the economy suffers and the value of the currency will drop.

Changes in exchange rates are usually small in the short term, but over a period of weeks or months, trends can result in substantial differences. Changes in some currencies can have knock-on effects for others too. For example, the value of the New Zealand dollar is linked to the US dollar and the Japanese Yen.

International travellers have an increasingly wide range of ways in which they can now pay for their goods and services abroad. These can include:

• Traveller’s cheques - which are still widely used as they are readily available and recognised throughout the world and offer the security of replacement if lost or stolen.
• Both credit card and cash card usage are increasing but it is recommended that travellers also take an assortment of notes and travellers cheques in case of card theft.

Tourist publications and information

Traditionally this information has been in the form of brochures, but the Internet is now an increasingly important source of information for tourists and for tourism operators. Availability of current information for tourists is vitally important e.g. weather, local transportation, attractions etc. Travel guides such as the Lonely Planet series are immensely popular and continue to be updated and extended each year. Some guidebooks are now taking the form of travel blogs and wikis, such as Wikivoyage and Wikitravel . Podcasts prove to be very useful as the audio information can be downloaded over the Internet to a computer, then transferred automatically to a portable audio player. Virgin Atlantic was one of the first companies to offer this service when they launched a guide to New York . The key benefit is that it is free, can be instantaneously updated and quick and easy to use while on the move.

i-SITE offices in New Zealand have a vital role in providing information on local and national visitor attractions and activities, accommodation and transport. They are operated and funded by local councils e.g. Dunedin City Council.

Entertainment

This category includes cinemas, theatres, nightclubs, bars, casinos and shows. Many tourists will look for entertainment and expect these facilities to be available especially in cities. If it is not available, this is reflected highly in visitor’s surveys as a reason for dissatisfaction.

Indirect Elements

Infrastructural needs

Infrastructure is critical to the success of the tourism product. Without suitable access to a destination whether by road or air, the tourist will not be able to visit. Airports must have certain facilities to gain status as in international airport e.g. Duty Free facilities.

Communications also play a vital role especially today when people expect cell phone coverage and internet access to keep in touch with family and friends or for business.

Access to clean public toilets can be very important to the satisfaction of a tourist’s holiday. Clear signage is vital for independent travellers both within the cities to show routes to attractions, on roads to point out the way to destinations and also within and outside tourist attractions providing information.

The manufacturing and building industry are vital to providing the superstructure tourists need – hotels, restaurants, shops and attractions.

Business of tourism

Economic impacts of tourism.

Tourism is considered by many to be the largest industry in the world and the fastest growing. Tourism can provide many benefits for host communities and countries but there are also negative effects. Impact studies are carried out with the aim of improving our understanding of the positive and negative impacts of tourism so that steps can be taken to lessen the negative effects and work at sustainable tourism development. In other words, sustainable tourism development is concerned with maximising the benefits while minimising the negative effects.

Tourism is seen by governments as a useful tool for economic development. The economic benefits tourism may offer include:

• Employment: tourism is a labour intensive industry,
• Entrepreneurial opportunities,
• Generate tax revenues,
• Development in rural regions,
• Foreign exchange generator,
• Tourism promotes other industries, particularly in services sectors of the economy.

Tourism contributes in four major areas of the national economy:

• Balance of Payments
• Regional economic development

Salaries, interest, rent and profits all contribute to income generation. In the tourism industry, which is labour intensive, the greatest proportion of income will be derived from salaries paid to the workers both directly serving tourists or from those benefiting indirectly from tourists’ spending.

Tourism is the main income generator for one-third of the developing nations but is also a major generator in the Western world. In New Zealand, tourism is of prime importance in areas where there is little other industry such as in Wanaka and the Bay of Islands. Interest, rent and profits can generate income from loans to companies building hotels or rental paid to the landowner for a tourism attraction.

Taxation also contributes to income in the form of G.S.T. in New Zealand and V.A.T. in the United Kingdom. In Fiji, there is an accommodation tax of 3% levied on hotel rooms. Departure taxes are now levied by most countries and some including the USA also have an arrival tax.

The sum on all incomes is called the national income and the importance to a country’s economy is measured by looking at the proportion of national income created by tourism. In New Zealand, for the year ended 2004, tourism contributed $6.2 billion or 4.9% of New Zealand’s total industry contribution the GDP.

Multiplier Effect

The tourist income multiplier or ‘ripple’ effect accounts for the indirect impact of tourist spending on the economy. The multiplier is expressed as a ratio between one dollar of tourist spending and the number of times it is re-spent. For example, a multiplier of 0.72 has been calculated for Fiji. This means that 72 % of each dollar of original visitor spending is re-spent in the Fijian economy.

Some major weaknesses have been identified in calculating economic multipliers. One particular problem is the difficulty involved in collecting accurate data of tourist expenditure. Tourism involves a large number of sectors in the economy and tourists spend their money on extremely diverse goods and services. Also, tourism comprises many small, owner-operated businesses. It is likely that a number of operators do business informally, though cash or barter transactions and some transactions are never recorded. Due to the difficulties in obtaining accurate data on how much money is spent by tourists and the numerous small and informal businesses in the industry, multiplier ratios can only be approximations.

Determining the economic impact of tourism is more complicated than simply calculating tourist expenditure. The value of tourist expenditure to the host country is reduced by the value of imported goods and services required to satisfy the needs of tourists. This is referred to as leakage. If the host country has constraints on its ability to supply goods and services to tourists, the grater the number of visitors the more imports will be required and the multiplier ratio will fall. Imports may include materials for construction, petrol, information technology and even food and water for some small island communities. Leakages explain why only a portion of the income generated is re-spent in the local economy.

Balance of payments

International tourists contribute to a receiving country’s balance of payments through money being spent credited to their balance of payments. A New Zealander spending money in Australia, places a debit on New Zealand’s and a credit on Australia’s balance of payments. The outflow of New Zealand money being spent abroad by New Zealanders is an import, while the inflow of foreign tourists’ money spent in New Zealand counts as an export.

The total value of receipts minus the total payments made during the year represents a country’s balance of payments of the tourism account.

International tourism is an ‘invisible’ export which helps to balance imports and thus improve the balance of payments.

The UNWTO has estimated that around 260 million people work in jobs directly related to tourism worldwide and will represent approximately 8.3% of total world employment.

In tourism dependant countries such as the Caribbean, as many as 25% of all jobs are associated with the tourism industry. An estimated 102,700 full-time employees (or 5.9% of total employment in New Zealand were actively engaged in producing goods and services for tourists in 1994.

Developments in technology are affecting labour opportunities in employment. Computer reservation systems are replacing manual systems and as a result fewer agents are working in airlines and hotel chains. The increasing use of the Internet for reservations has also reduced numbers of travel agencies are airline offices.

Call centres are replacing branches, often situated in low-wage countries like India. The success of the tourism industry relies on the supply of a skilled labour force to serve the needs of the tourists.

Investment and development

The level of investment in tourism can determine the success of a region. The investment can be private of public. Often there is a ‘chicken and egg’ situation where there is an unwillingness to invest until there is a flow of tourists but the tourists will not come to the region until there is facilities e.g. hotels, restaurants to attract them.

Often there is a flow on effect and other industries will be attracted to the area to provide services for both tourists and workers

Another consideration in calculating the economic effects of tourism involves the opportunity costs. Money and other resources, committed to tourism could have been used for different purposes, providing alternative benefits for the host community. Labour is a good example. If local workers are employed in tourism then other industries such as fruit picking or agriculture may suffer. If there is a shortage of skilled labour, workers may be imported from other countries, resulting in further leakages from the economy. Capital expenditure on developing tourism-related establishments precludes spending scarce resources on other types of development with alternative uses. Inflation can be caused by high levels of expenditure by foreign tourists which increase the prices of food, transportation, and clothing and as in the case of Queenstown, land values,

Social and Environmental Impacts of Tourism

A cost-benefit analysis for tourism developments should assess the social and environmental impacts as well as economic effects. Sustainable development means that tourism is designed to fit with the social and natural environment and not cause the destination to become less desirable for visitors and permanent residents. Social and environmental can also have the negative impact, for example, tourist that coloring the tree, destroy the pathway of the forest and so on

This Glossary is based on original wook done in wikibooks .

attraction - a place, event, building or area which tourists want to visit

biodiversity - a variety of wildlife in an area

business plan - an action plan that entrepreneurs draw up for the purpose of starting a business; a guide to running one's business

component - a constituent part

culture - people's customs, clothing, food, houses, language, dancing, music, drama, literature and religion

destination - the end point of a journey

diversity - variety; multiplicity; range; assortment

domestic - within one's own country. A domestic tourist is a person who engages in tourism in his/her own country; domestic flights are those within the airline's own country.

economy - wealth of resources of a community

ecosystem - an area where living and non-living things interact

eco-tourism - a combination of tourism and the environment (e.g. planning before development; sustainability of resources; economic viability of a tourism product; no negative impact on either the environment or local communities; responsibility for the environment from developers, the tourism industry and tourists; environmentally-friendly practices by all parties concerned and economic benefits flowing to local communities)

endangered species - in severe danger of becoming extinct in the near future unless immediate steps are taken to protect the species

environment - the diverse community activities and cultures of a country's inhabitants, as well as its scarce and sensitive natural resources

event - an occurrence of importance

excursionist - a temporary visitor, staying less than 24 hours, including cruise travellers but excluding travellers in transit

fauna - all the animals of a particular area

flora - all the plants of a particular area

gateway - the point of access to a country or region, usually an airport or seaport, although certain frontier points and railway stations can be given the designation

global - worldwide

Greenwich meridian - the meridian of longitude that passes through Greenwich (London) and from which all other meridians are numbered; also known as the prime meridian or the zero meridian

heritage - a very broad expression that describes anything that has a link with some past event or person (e.g. cultural heritage refers to past customs and traditions with the unspoken implication that these are worthwhile or creditable)

heritage site - a place that capitalises on its connection with heritage

human-made attraction - an attraction created by people

icon - a symbol representing something

inbound tourist - tourist coming into a country from another country

international tourist - tourist travelling to and between foreign countries

itinerary - the written details of a customer's travel arrangements in the form of dates, times and destinations

local - belonging to a particular place or region

macro business - a large, formal business that employs many people

micro business - a small, often informal, business that employs very few people

natural attraction - a tourist attraction that has not been made or created by people

natural disaster - a destructive force (e.g. earthquake, flood, volcanic eruption)

outbound tourist - a tourist departing to a destination beyond the borders of the country of residence

profitability - capacity to make profit

region - an area of land having more or less definable boundaries

sector - a part or branch of the whole industry that provides particular goods and/or services

service - work done for the benefit of another

service delivery - the manner in which customer needs are met

service provider - a person or company that supplies a particular service

short haul - 1-3 hour flight

souvenir - a product purchased by a tourist as a reminder of a holiday

sustainable - something which can be kept in the same or a better condition for the future

tourism - the all-embracing term for the movement of people to destinations away from their place of residence for any reason other than following an occupation, remunerated from within the country visited, for a period of 24 hours or more

tourism geography - the knowledge of countries, regions, major cities, gateways, famous icons, monuments, building structures, and geographical features such as rivers, seas, mountains, deserts and time zones

tourism industry - a group of businesses that provide services and facilities for consumption by tourists

tourism infrastructure - roads, railway lines, harbours, airport runways, water, electricity, other power supplies, sewerage disposal systems and other utilities to serve not only the local residents but also the tourist influx (suitable accommodation, restaurants and passenger transport terminals form the superstructure of the region)

tourism product - different things to the various members of the tourism industry. To the hotel it is `guest- nights'. To the airline it is the `seats flown' and the `passenger miles'. To the museum, art gallery or archaeological site, the product is measured in terms of the number of visitors. For the tourist the product is the complete experience resulting from the package tour or travel facility purchased, from the time they leave home until their return.

tourist - one who travels for a period of 24 hours or more in a place other than that in which he or she usually resides, whose purpose could be classified as leisure (whether for recreation, health, sport, holiday, study or religion), business, family, mission or meeting

tourist facility - a feature created for utilisation by tourists

tourist route - a route developed to attract tourists to an area to view or experience something unique to that area (e.g. wine route, whale route, heritage route, battlefield route)

tourist trend - a general tendency to visit a country, region or destination or to pursue a specific tourist activity

world heritage site - a site designated by UNESCO as being of special historical, cultural or natural importance

BB - Bed and Breakfast

Review Questions

• http://www.biodiv.org/programmes/socio-eco/tourism
• http://www.world-tourism.org/newsroom/Releases/2006/november
• Wikipedia:Tourism
• Page, Stephen J and Connell Joanne, (2006) Tourism a modern synthesis, second edition, Thomson Learning, London, UK.

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How does the travel industry actually work?

You may be new to the travel industry, investigating a career in travel or just trying to research a bit about the industry ahead of your next adventure. There’s a mass of information out there and it can be overwhelming to wrap your head around. Lucky for you, our team of travel experts have been hard at work to give you a bird’s eye view of the travel industry as a whole .

The travel industry has gone through many evolutions with a variety of external factors contributing to who has access to travel, where they are travelling to and what the travel industry looks like overall.

A few important travel industry statistics

Let’s start by setting the scene…the travel industry is HUGE and the numbers certainly prove it .

Source: Statista

A brief history of the travel industry

We are fortunate to live in a globalised world meaning that travel is reasonably accessible. At the press of a button, most people are able to book a flight and jet off to wherever our wallets will take us. 

But, it hasn’t always been so easy. To help you understand how the industry has developed to the point it has today and where it might head in the future, here is a travel industry timeline.

Before the mid 20th century, travel was reserved for the extremely wealthy. It was expensive and it was time-consuming (can you imagine having to travel on a boat for 3 weeks…. or 3 months!). The concept of a ‘travel industry’ had not yet formed; it was more a collection of hotels, restaurants and coachlines who all operated independently from one another.

1950 – 2000

After the Second World War, travel suddenly started to become accessible for many more people due to the development of commercial airlines. Although they were originally still very expensive,  costs started to reduce over the years and more people were able to invest in seeing the world.

The industry grew and grew, and many saw a gap in the market for people wanting to travel but not having the knowledge, or time to organise it themselves – travel agents and tour operators started to establish themselves!

2000 – 2019

The travel industry has undoubtedly boomed, and the way that people travel is almost unrecognisable from the early 20th century. With smartphones, we now have unlimited apps at our fingertips, specifically designed to make every aspect of travel easier. 

For travellers, there are websites and apps to help them plan their travel, help them while travelling and to give them inspiration for their next trip! For travel agents and tour operators, itinerary software has streamlined much of their processes, from itinerary planning to customer relationship management. Now all this technology is amazing, and helps our lives in many ways, but has also resulted in fragmentation of the travel industry with travellers choosing to plan and manage their trips themselves or online increasingly.

 2020 and the future of travel

Due to the pandemic and the pause in travel, both countries and travellers worldwide re-evaluated travel and how it should be conducted. Countries who experienced over-tourism considered ways to encourage more sustainable travel in their destinations . For travellers, Covid triggered them to start thinking about their bucket list destinations and working with travel designers to plan and book them. This resulted in tourism returning with a significant rise in 2022, although the industry is indicating it might be plateauing in 2023/2024 .

How does the industry actually work?

You may be thinking to yourselves, how does travel actually function as an industry . How does it all fit together? You are not alone, it’s a complex industry notorious for its jargon, terminology and abundance of acronyms!

As you can see there are a few key players to remember:

Tourism Boards and Government organisations: Usually run or overseen by local or national governments. These boards set in place regulations for the other players in the industry. They also market countries or cities as tourist destinations for potential travellers

Suppliers/Vendors: Suppliers (or Vendors) are the hotels, the restaurants and the activity providers that travellers eat, stay and partake in on their travels. Travellers may liaise with and purchase from suppliers directly if they are organising their own travels, or communications with suppliers may be managed entirely by a middle-man (AKA, the tour operator, travel agent, travel wholesaler or DMC).

Tour Operators: Tour Operators design itineraries, often tailor made, for their customers, liaising with suppliers to organise and book the travel itinerary (partially or start to finish)

Travel Agents: Travel agents liaise with tour operators to book packages and tours for their clients. As such, tour operators will often focus on a certain destination or market area, whereas travel agents can focus on selling the whole world – with a comprehensive list of suppliers in their books

Destination Management Companies (DMC’s) : Organisations that specialise in offering tours, logistics, and planning services for a particular destination. They often re-sell their services to tour operators

Ground Handlers : A ground handler takes care of some day to day operations and tour management such as picking customers up from the airport and arranging sightseeing tours

Associations and Memberships: These organisations exist to provide support, promotion, and opportunity to other players in the travel industry. All of them operate with a slightly different mission, whether it’s to promote sustainable business practices, celebrate the luxury travel market or to connect travellers with LGBTQ friendly travel businesses

Travellers: Arguably the most important cog in the wheel. Everyone in the tourism industry sets out to meet travellers’ needs – to ensure they keep coming back for more!

The beauty of the travel industry supply chain is how all of these key players work together creating one of the worlds biggest industries.   

 Interested to learn more?

The ultimate A-Z glossary for the Travel industry. Understand the different terms, jargon and acronyms.

For a taste of the luxury end of travel, explore our list of Exclusive luxury travel communities

To discover more about sustainable tourism, download our ebook focusing on how to elevate travel design with sustainability.

Travel designers- meet the influencers you should work with.

Understand the role travel influencers play in the industry and why tour operators should be following, interacting and collaborating with them. Explore eight global travel influencers who are inspiring travellers daily.

Tourism news websites you can trust

In the tourism industry it can be hard to differentiate the reliable travel news sources from the not-so-trustworthy ones. In this blog we summarise the top travel news websites that tour operators, travel agencies and DMC’s should pay attention to.

How to set your team up for success when introducing new software

Making changes happen is hard. Especially when it is something that will create a significant impact on the way you work, like new software. We discover what change management is and how it can assist you, your leaders and your team in creating new processes that will make you more successful in the long run. Is it time for a change?

How can tour operators contribute to sustainable tourism?

Sustainability is a key pillar of tourism, with a growing number of people interested in travelling responsibly and sustainably. We explore the easy ways in which your tour operator business can make a positive change. You can help to encourage economic growth and protect our environment whilst also watching your business flourish… could it get better?

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Travel accounted for $1.3 trillion in direct spending in 2023—which produced an economic footprint of $2.8 trillion .

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Introductory Tourism

Introduction.

Tourism is travel for pleasure; also the theory and practice of touring, the business of attracting, accommodating, and entertaining tourists, and the business of operating tours. Tourism may be international, or within the traveler's country. The World Tourism Organization defines tourism more generally, in terms which go "beyond the common perception of tourism as being limited to holiday activity only ", as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes". Tourism is the act of travel for predominantly recreational or leisure purposes, and also refers to the provision of services in support of this act. According to the World Tourism Organization, tourists are people who "travel and stay in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited".

Tourism, however long its incident duration, has become an extremely popular, global activity. In 2004, there were over 763 million international tourist arrivals.[1]

As a service industry, tourism has numerous tangible and intangible elements. Major tangible elements include transportation, accommodation, and other components of a hospitality industry. Major intangible elements relate to the purpose or motivation for becoming a tourist, such as rest, relaxation, the opportunity to meet new people and experience other cultures, or simply to do something different and have an adventure.

Tourism is vital for many countries, due to the income generated by the consumption of goods and services by tourists, the taxes levied on businesses in the tourism industry, and the opportunity for employment and economic advancement by working in the industry. For these reasons NGOs and government agencies may sometimes promote a specific region as a tourist destination, and support the development of a tourism industry in that area. The contemporary phenomenon of mass tourism may sometimes result in overdevelopment, however alternative forms of tourism such as ecotourism seek to avoid such outcomes by pursuing tourism in a sustainable way.

The terms tourism and travel are sometimes used interchangeably. In this context travel has a similar definition to tourism, but implies a more purposeful journey. The terms tourism and tourist are sometimes used pejoratively to imply a shallow interest in the cultures or locations visited by tourists.

One of the earliest definitions of tourism was provided by the Austrian economist Hermann Von Schullard in 1910, who defined it as, "sum total of operators, mainly of an economic nature, which directly relate to the entry, stay and movement of foreigners inside and outside a certain country, city or a region."

Hunziker and Krapf, in 1941, defined tourism as "the sum of the phenomena and relationships arising from the travel and stay of non-residents, in so far as they do not lead to permanent residence and are not connected with any earning activity."[2]

In 1976 Tourism Society of England defined it as "Tourism is the temporary, short-term movement of people to destination outside the places where they normally live and work and their activities during the stay at each destination. It includes movements for all purposes."

In 1981 International Association of Scientific Experts in Tourism defined Tourism in terms of particular activities selected by choice and undertaken outside the home environment.

United Nations definition

United Nations classified 3 forms of tourism in 1994 in its Recommendations on Tourism Statistics as follows:

• Domestic tourism, involving residents of the given country traveling only within this country;
• Inbound tourism, involving non-residents traveling in the given country;
• Outbound tourism, involving residents traveling in another country.

UN also derived different categories of tourism by combining the 3 basic forms of tourism:

• Internal tourism, which comprises domestic tourism and inbound tourism;
• National tourism, which comprises domestic tourism and outbound tourism;
• International tourism, which consists of inbound tourism and outbound tourism.

New definition

Intrabound tourism is a new academic terminology coined by the Korea Tourism Organization and widely accepted in Korea. Intrabound tourism differs from ‘domestic tourism’ in that the former is more concerned with making and implementation of national tourism policies in consideration of the tourism ecosystem consisting of inbound, outbound and intrabound tourism.

Entering into 21st century, the tourism industry has undergone a paradigm shift form the promotion of inbound tourism to the promotion of intrabound tourism since many countries are experiencing a tough competition for inbound tourists. Also realizing that it is impossible to advance the inbound tourism in the absence of active intrabound tourism, national policy makers have shifted their policy priority onto the promotion of intrabound tourism such as the promotion of local tourism to contribute to the local economy.

Examples of such policies are “See America,” “Getting Going Canada,” and “See Korea Campaign”. Taking a Korean case as an example, Korea Tourism Organization has recently launched a nation-wide campaign to promote intrabound tourism, named “Guseok Guseok, literally meaning corner to corner.

Prerequisites of tourism

Before people are able to experience tourism they usually need at least:

• disposable income, i.e. money to spend on non-essentials
• leisure time
• tourism infrastructure, such as transport and accommodation

Individually, sufficient health is also a condition, and of course the inclination to travel. Furthermore, in some countries there are legal restrictions on travelling, especially abroad. Certain states with strong governmental control over the lives of citizens (notably established Communist states) may restrict foreign travel only to trustworthy citizens. The United States prohibits its citizens from traveling to some countries, for example, Cuba. Tourism is travel for pleasure; also the theory and practice of touring, the business of attracting, accommodating, and entertaining tourists, and the business of operating tours. Tourism may be international, or within the traveler's country. The World Tourism Organization defines tourism more generally, in terms which go "beyond the common perception of tourism as being limited to holiday activity only ", as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes". Tourism is the act of travel for predominantly recreational or leisure purposes, and also refers to the provision of services in support of this act. According to the World Tourism Organization, tourists are people who "travel and stay in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited".

History of Tourism

The tourism business is at least 2,000 years old. It began when wealthy citizens of ancient Rome, deciding they would rather spend their summers away from the city, took trips to the countryside and the coast.

A tourist industry soon sprang up to cater for the Romans’ travel and accommodation needs, and for a while it thrived. But Roman tourism ended with its empire, and for hundreds of years the turbulent economic, social and military situation in Europe made frequent, safe travel out of the question.

During the medieval era, however, tourism again appeared thanks to a growing interest in pilgrimages. The organisers arranged the tourism basics of itineraries and places to eat and sleep. And from records such as Chaucer’s Canterbury Tales, it’s evident that many pilgrims were keen to relax and enjoy themselves as well as visit a holy shrine. In fact it’s from the Old English word hāligdæg (holy day) that “holiday” derives.

But it was two other factors hundreds of years later that encouraged the start of more widespread and regular tourism: health and culture. Those who could afford to do so began to visit the spa and seaside towns of eighteenth century Europe to benefit from the spring waters and fresh air. Others, most notably the English, took educational holidays to countries such as Italy with the intention of studying paintings, sculptures and architecture, and visiting historical sites.

Straightforward leisure tourism took hold when industrialisation across Europe gave rise to an affluent middle class with an increasing amount of free time. Entrepreneurs started to build tourist hotels with an infrastructure of roads, carriages and ferries. Tourism began to take shape as an international industry.

The industry was popular and steadily successful from the early nineteenth century. But for the most part, it was expensive and limited to a small number of locations. Then everything suddenly changed. In the 1960s, a growing number of people had disposable incomes, and with this extra money came a desire for a different lifestyle. At the same time, reasonably-priced commercial aircraft were able to carry passengers to and from any airport in the world.

Mass tourism had arrived, and with it there came an extraordinary growth in facilities. Fishing villages on the southern coast of Spain, for instance, became resorts that were household names. Elsewhere, business people capitalised on the demand for tourist attractions and constructed leisure and theme parks.

The driving force behind these rapid developments was cash. In 2006, the international tourism receipts for the three most popular destinations – France, Spain and the United States – totalled $179.7 billion. The number of visitors who contributed this sum was 188.7 million.

With figures such as these, many countries around the globe work hard to encourage travellers to visit them. The result in recent years is the boom in long haul flights to destinations that can supply tourists with sun almost every week of the year.

Unfortunately, it’s this scramble to grab a share of the tourist industry that is sometimes damaging environments unable to sustain large numbers of visitors. There are also concerns about the pollution generated by the ever-rising volume of tourist flights, cruise ships and road traffic. And on top of these problems are increasing fuel costs; the demise of established resorts that have over-expanded; fluctuating exchange rates for currencies; and the credit crunch.

The tourism industry will no doubt adapt to new demands and circumstances. But despite some optimistic predictions from tourism agencies for its continued growth, this business may well find that its most successful era, for the time being anyway, is past.

Health tourism & leisure travel

The history of European tourism can perhaps be said to originate with the medieval pilgrimage. Although undertaken primarily for religious reasons, the pilgrims in the Canterbury Tales quite clearly saw the experience as a kind of holiday (the term itself being derived from the 'holy day' leisure activities). Pilgrimages created a variety of tourist aspects that still exist - bringing back souvenirs, obtaining credit with foreign banks (in medieval times utilising international networks established by Jews and Lombards), and making use of space available on existing forms of transport (such as the use of medieval English wine ships bound for Vigo by pilgrims to Santiago De Compostela). Pilgrimages are still important in modern tourism - such as to Lourdes or Knock in Ireland. But there are modern equivalents - Graceland and the grave of Jim Morrison in Père Lachaise Cemetery.

During the seventeenth century, it became fashionable in England to undertake a Grand Tour. The sons of the nobility and gentry were sent upon an extended tour of Europe as an educational experience. The eighteenth century was the golden age of the Grand Tour, and many of the fashionable visitors were painted at Rome by Pompeo Batoni. A modern equivalent of the Grand Tour is the phenomenon of the backpacker, although cultural holidays, such as those offered by Swann-Hellenic, are also important.

Health tourism has always existed, but it was not until the eighteenth century that it became important. In England, it was associated with spas, places with supposedly health-giving mineral waters, treating diseases from gout to liver disorders and bronchitis. Bath was the most fashionable resort, but Buxton, Harrogate, and Tunbridge Wells, amongst others, also flourished. Of course, people visited these places for the balls and other entertainments, just as much as 'the waters'. Continental Spas such as Karlsbad attracted many fashionable travellers by the nineteenth century.

It could be argued that Britain was the home of the seaside holiday. In travelling to the coast, the population was following in the steps of Royalty. King George III made regular visits to Weymouth when in poor health. At the time, a number of doctors argued the benefits of bathing in sea water, and sea bathing as a widespread practice was popularised by the Prince Regent (later George IV), who frequented Brighton for this purpose.

Leisure travel was associated with the industrialization of United Kingdom – the first European country to promote leisure time to the increasing industrial population. Initially, this applied to the owners of the machinery of production, the economic oligarchy, the factory owners, and the traders. These comprised the new middle class. Cox & Kings were the first official travel company to be formed in 1758. Later, the working class could take advantage of leisure time.

The British origin of this new industry is reflected in many place names. At Nice, one of the first and best-established holiday resorts on the French Riviera, the long esplanade along the seafront is known to this day as the Promenade des Anglais; in many other historic resorts in continental Europe, old well-established palace hotels have names like the Hotel Bristol, the Hotel Carlton or the Hotel Majestic - reflecting the dominance of English customers.

Winter tourism

Winter sports were largely invented by the British leisured classes, initially at the Swiss village of Zermatt (Valais), and St Moritz in 1864. The first packaged winter sports holidays took place in 1902 at Adelboden, Switzerland. Winter sports were a natural answer for a leisured class looking for amusement during the coldest season.

Organized sport was well established in Britain before it reached other countries. The vocabulary of sport bears witness to this: rugby, football, and boxing all originated in Britain, and even tennis, originally a French sport, was formalized and codified by the British, who hosted the first national championship in the nineteenth century, at Wimbledon.

Mass travel

Mass travel could only develop with two crucial features:

• improvements in technology allowed the transport of large numbers of people in a short space of time to places of leisure interest, and
• greater numbers of people began to enjoy the benefits of leisure time.

The pioneer of modern mass tourism was Thomas Cook who, on 5 July 1841, organized the first package tour in history. He arranged for the rail company to charge one shilling per person for a group of 570 temperance campaigners from Leicester to a rally in Loughborough, eleven miles away. Cook was paid a share of the fares actually charged to the passengers, as the railway tickets, being legal contracts between company and passenger, could not have been issued at his own price. There had been railway excursions before, but this one included entrance to an entertainment held in private grounds, rail tickets and food for the train journey. Cook immediately saw the potential of a convenient 'off the peg' holiday product in which everything was included in one cost. He organised packages inclusive of accommodation for the Great Exhibition, and afterwards pioneered package holidays in both Britain (particularly in Scotland) and on the European continent (where Paris and the Alps were the most popular destinations).

He was soon followed by others (the Polytechnic Touring Association, Dean and Dawson etc.), with the result that the tourist industry developed rapidly in late Victorian Britain. Initially it was supported by the growing middle classes, who had time off from their work, and who could afford the luxury of travel and possibly even staying for periods of time in boarding houses.

The Bank Holidays Act 1871 introduced a statutory right for workers to take holidays, even if they were not paid at the time. By the last quarter of the nineteenth century, the tradition of the working class holiday had become firmly established in Britain. These were largely focussed upon the seaside resorts.

The spread of the railway network in the nineteenth century resulted in the growth of Britain's seaside towns by bringing them within easy distance of Britain's urban centres. Blackpool was created by the construction of a line to Fleetwood, and some resorts were promoted by the railway companies themselves - Morecambe by the Midland Railway and Cleethorpes by the Great Central Railway. Other resorts included Scarborough in Yorkshire, servicing Leeds and Bradford; Weston-super-Mare in Somerset, catering for the inhabitants of Bristol; and Skegness, patronised by the residents of the industrial East Midlands. The cockneys of London flocked to Southend-on-Sea, mainly by Thames Steamer, and the South Coast resorts such as Broadstairs, Brighton, and Eastbourne were only a train ride away, with others further afield such as Bournemouth, Bognor Regis and Weymouth.

For a century, domestic tourism was the norm, with foreign travel being reserved for the rich or the culturally curious. A number of inland destinations, such as the English Lake District, and Snowdonia appealed to those who liked the countryside and fine scenery. The holiday camp began to appear in the 1930s, but this phenomenon really expanded in the post-war period. Butlins and Pontins set this trend, but their popularity waned with the rise of overseas package tours and the increasing comforts to which visitors became accustomed at home. Towards the end of the 20th century this market has been revived by the upmarket inland resorts of Dutch company Center Parcs.

Cox & Co, the forebear of Cox & Kings were in existence from 1758 largely entwined with the travel arrangements for the British Army serving around the Empire. While acting as 'agents' for various regiments, they organised the payment, provision, clothing and travel arrangements for members of the armed forces. In the 19th century their network of offices contained a banking and also travel department. The company became heavily involved with affairs in India and its Shipping Agency had offices in France and the Middle East.

Other phenomena that helped develop the travel industry were paid holidays:

• 1.5 million manual workers in Britain had paid holidays by 1925
• 11 million by 1939 (30% of the population in families with paid holidays)

In the USA, the first great seaside resort, in the European style, was Atlantic City, New Jersey.

In continental Europe, early resorts included Ostend (for the people of Brussels), and Boulogne-sur-Mer (Pas-de-Calais) and Deauville (Calvados) (for Parisians).

International mass tourism

Increasing speed on railways meant that the tourist industry could develop internationally.

To this may be added the development of sea travel. By 1901, the number of people crossing the English Channel from England to France or Belgium had passed 0.5 million per year. Shipping companies were anxious to fill cabin space that was under utilised. For example, P&O found that the majority of their passengers for India and the Far East joined the ship at Marseilles. Consequently, they marketed holidays based upon sea trips from London to Lisbon and Gibraltar. Other companies diverted their older ships to operate cruises in the summer months.

However, the real age of international mass travel began with the growth of air travel after World War Two. In the immediate post-war period, there was a surplus of transport aircraft, such as the popular and reliable Douglas Dakota, and a number of ex military pilots ready to fly them. They were available for charter flights, and tour operators began to use them for European destinations, such as Paris and Ostend.

Vladimir Raitz pioneered modern package tourism when on 20 May 1950 his recently founded company, Horizon, provided arrangements for a two-week holiday in Corsica. For an all inclusive price of £32.10s.-, holiday makers could sleep under canvas, sample local wines and eat a meal containing meat twice a day - this was especially attractive due to the continuing austerity measures in post-war United Kingdom. Within ten years, his company had started mass tourism to Palma (1952), Lourdes (1953), Costa Brava (1954), Sardinia (1954), Minorca (1955), Porto (1956), Costa Blanca (1957) and Costa del Sol (1959).

However it was with cheap air travel in combination with the package tour that international mass tourism developed. The postwar introduction of an international system of airline regulation was another important factor. The bilateral agreements at the heart of the system fixed seat prices, and airlines could not fill blocks of empty seats on underused flights by discounting. But if they were purchased by a tour operator and hidden within the price of an inclusive holiday package, it would be difficult to prove that discounting had taken place - even though it was obvious that it had! This was the origin of the modern mass package tour.

These developments coincided with a significant increase in the standard of living in Britain. At the end of the 1950s, Harold Macmillan could say "you've never had it so good."

Another significant development also happened at the end of this decade. The devaluation of the Spanish peseta made Spain appear a particularly attractive destination. The cheapness of the cost of living attracted increasing numbers of visitors. Mass package tourism has at times been an exploitative process, in which tour operators in a country with a high standard of living make use of development opportunities and low operating costs in a country with a lower standard of living. However, as witness the development of many tourist areas in previously poor parts of the world, and the concomitant rise in standards of living, when there is equality of bargaining power, both parties can gain economic benefits from this arrangement.

Spain and the Balearic Islands became major tourist destinations, and development probably peaked in the 1980s. At the same time, British tour operators developed the Algarve in Portugal. The continuing search for new, cheaper, destinations spread mass tourism to the Greek Islands, Italy, Tunisia, Morocco, parts of the coast of Turkey, and more recently Croatia.

For the worker living in greater London, Venice today is almost as accessible as Brighton was 100 years ago. Consequently, the British seaside resort experienced a marked decline from the 1970s onwards. Some, such as New Brighton have disappeared. Others have reinvented themselves, and now cater to daytrippers and the weekend break market.

key components of the Travel and Tourism

Components of travel and tourism the definition of Travel. Travel is changing location using different types of transport. People can travel by Road, Air,Sea,Rail The definition of tourism. Tourism is the temporary short term movement of people to destination outside the place they normally live or work. For example young couple travel to New York visit friends. Types of tourism. Tourism can be divided into three categories: Domestic tourism This is when people take holidays, short breaks and day trips in they own country e.g. couple from Manchester goes to visit Birmingham for one week. Inbound tourism .This is when people enter the country from their own country of origin or another country which is not their home. e.g. students from Spain comes to London visit the city. Outbound tourism. This is when people travel away from the country where they normally live. e.g. family from New quay decide to give London a miss this year a take two weeks holiday in Italy The Components of Travel and Tourism Travel and tourism it’s made up of different components which work together to provide holidays and other travel products to clients. These are most important components in tourism industry

• Accommodation
• Attractions
• Travel agents
• Tour operators
• Ancillary services
• Trade association and regulatory bodies
• Tourism development and promotions Accommodation. Accommodation is one of the main sector in travel and tourism.

The components of travel and tourism can be broadly divided into six key areas.

A travel agent provides information to the people on various travel destinations, advises them of available holiday packages to suit their tastes and budget and chart their travel plan. He would generally sell the travel associated products like currency exchange, car rentals, insurance etc.

2. Tour Operators: Tour operators offer holiday packages which comprise of 1. Travel like by rail, road or air. 2. Accommodation like hotels, resorts, apartments, guesthouses 3. Travel services like airport pick and drop, sightseeing, excursions etc. These tour operators may be the wholesale operators who operate tours only through retail travel agencies or they may be direct sell operators who market their product directly to the public.

3. Accommodation (Lodging and Catering): This components consists of those who provide accommodation to the people in the form of hotels, resorts, apartments, camps, guest houses etc. The accommodation may be marketed individually or through the tour operators in the form of package. Direct marketing may require huge costs on advertisement and selling through a tour operator guarantees the occupancy rate throughout a holiday season. These service providers also take care of the catering needs of the people b providing them huge cafeterias, various fast food outlets in house or in the form of a Galleria.

4. Various Kinds of Transport: Transport providers are those operating any major form of transport. They could be airlines, cruise lines, car rentals, and rail companies. A tourist’s choice of transport would depend on the travel budget, destination, time, purpose of the tour, and convenience to the point of destination.

5, Information & Guiding: (Ancillary services) The tourist information and guidance providers include a number of service providers such as those offering insurance, recreational, communication, and banking services; government agencies; tour guides; industry associations; packaging agents; ticketing agents; and holiday sellers.

6. Tourist Attractions: The principle of attraction is to establish the need for the attraction in a particular location to invite more footfall. It may be a huge theme park, a museum, a gallery, a heritage building, an educational center etc. Many countries see the need to have one or more visitor attraction in the area to widen their appeal and attract huge potential tourist.

These bodies also making bridges between the traders and visitors (travellers). • Trade association and regulatory bodies • Tourism development and promotions Accommodation. Accommodation is one of the main sector in travel and tourism.

Those organisations interrelate to produce and promote travel products and services. Also some organisations are independent of other such as visitor attractions including local heritage Chain of Distribution Chain of distribution show the way, product such as for example holidays are distributed from producer to customers, often via wholesalers and retailers. PRINCIPALS that is Hotel, Airlines, and other Transport companies WHOLESALERS Tour Operators RETAILERS Travel Agencies CUSTOMERS Types of Integration. Integration in the travel and tourism industry occurs when one company owns or controls more than one part of distribution process. There are two types of integration. • Horizontal Integration • Vertical Integration Horizontal Integration is when the organisation owns two or more companies on the same level of the distribution chain. e.g. First Choice Holidays owns a number of tour operating brands like First Choice Holiday or Sovereign Vertical Integration is when the company integrate at the different levels of the distribution chain. E.g. tour operator work with airline such as First Choice as it is a tour operator which also has an airline named First Choice Airways. AIRLINE First Choice TOUR OPERATOR First Choice Holiday TRAVEL AGENCY First Choice Travel Shops Travel Infrastructure- travel infrastructure is the networks of the links between motorways, airports, sea ports and railway stations which transport the passengers to a destinations.

Types of Tourism

.Traveling is one effective way to see the world, experience new cultures and meet new people at the same time. For many tourists, however, traveling accomplishes many other purposes that don’t even have anything to do with the joy of visiting a new place. This is why there are many different types of tourism that explain why tourists choose a particular destination and the things that they expect to do when they are there.

Perhaps the most common type of tourism is what most people associate with traveling: Recreation tourism. This is when people go to a place that is very different from their regular day-to-day life to relax and have fun. Beaches, theme parks and camp grounds are often the most common places frequented by recreational tourists. If the objective of one’s visit to a particular place is to get to know its history and culture then this type of tourism is known as cultural tourism. Tourists may visit different landmarks of a particular country or they may simply opt to focus on just one area. They may also attend festivals and ceremonies in order to gain a better understanding of the people, their beliefs and their practices.

For tourists who want to see wildlife or bask in the joy of just being in the midst of nature, nature tourism is the answer. Ecotourism and nature treks are all part of this kind of tourism. Bird watching, for example, is one activity that nature tourists are fond of doing. What marks this kind of tourism is that it is environmentally responsible, has low impact and advantageous to the local community. Many people today are stressed out in the corporate rat race and in need of rejuvenation. Thus, they go on trips that refresh their souls and spirits. This is called pleasure tourism and usually includes yoga workshops and detox vacations, among others. Others, however, de-stress by engaging in a particular sport. Called sports tourism, travelers here target places which are known for a particular sporting facility. Skiing, for example, is a type of sports tourism. Also included in this category are those who go to a destination to experience a sports spectacle such as the Olympics, FIFA World Cup and others.

Religious tourism is another type of tourism where people go to a religious location or locations to follow the footsteps of their founder or to attend a religious ceremony. Catholics, for example, go on pilgrimages in the Holy Land to experience the paths where Jesus walked.

Medical or health tourism is a relatively new type of tourist activity where the main focus of the travel is improving one’s health, physical appearance or fitness. For instance, certain countries promote the expertise of their doctors and surgeons in the field of cosmetic surgery and invite foreigners to have their liposuction, facelift, nose lift and other forms of cosmetic procedures to be done there. Medical tourism also incorporates aspects of recreation tourism where the patient goes to a relaxing getaway to recover from the procedure.

Adventure tourism is another type of tourism that is catered for those who want to do more than just visit regular tourist sites. These kinds of trips involve challenging activities like rock climbing, mountain climbing and wild water rafting.

It should be noted that there are no strict delineations when tourists go on their trips. These kinds of tourism often overlap so it’s not unusual for travelers to experience more than one type of tourism in one vacation.

Recent developments

There has been a discernible upmarket trend in tourism over the last few decades, especially in Europe where international travel for short breaks is commonplace. Tourists have higher levels of disposable income and greater leisure time. They are also better educated and have more sophisticated tastes. There is now a demand for a better quality product in many quarters. This has resulted in the following trends:-

• The old 'sun, sea, and sand' mass market has fragmented. People want more specialised versions of it, such as 'Club 18 -30', quieter resorts with select hotels, self-catering, etc.
• People are taking second holidays in the form of short breaks/city breaks, ranging from British and European cities to country hotels.
• There has been a growth in niche markets catering for special interests or activities, including growth of destination hotels.

The developments in technology and transport infrastructure (particularly the advent of jumbo jets) have placed some types of holiday in the affordable mainstream:-

• The development of a mass cruise holiday market.
• The advent of affordable holidays to long-haul destinations such as Thailand or Kenya.
• The phenomenon of the low budget airline, utilising a new generation of small regional airports.

There have also been changes in lifestyle, which may call into question the current definitions of tourism. Some people (particularly the 45+ and retired) may be adopting a tourism lifestyle, living as a tourist all the year round - eating out several times a week, going to the theatre, daytripping, and indulging in short breaks several times a year.

Much of this results in impulse purchasing. This is facilitated by internet purchasing of tourism products. Some sites have now started to offer dynamic packaging, in which an inclusive price is quoted for a tailor- made package requested by the customer upon impulse.

There have been a few setbacks in tourism, such as the September 11, 2001 attacks and terrorist threats to tourist destinations such as Bali and European cities. Some of the tourist destinations, including the Costa del Sol, the Baleares and Cancún have lost popularity due to shifting tastes. In this context, the excessive building and environmental destruction often associated with traditional "sun and beach" tourism may contribute to a destination's saturation and subsequent decline. This appears to be the case with Spain's Costa Brava, a byword for this kind of tourism in the 1960s and 1970s. With only 11% of the Costa Brava now unblemished by low-quality development (Greenpeace Spain's figure), the destination now faces a crisis in its tourist industry.

Sustainable tourism is becoming more popular as people start to realize the devastating effects tourism can have on communities.

Receptive tourism is now growing at a very rapid rate in many developing countries, where it is often the most important economic activity in local GDP.

In recent years, second holidays or vacations have become more popular as people's discretionary income increases. Typical combinations are a package to the typical mass tourist resort, with a winter skiing holiday or weekend break to a city or national park.

On December 26, 2004 a tsunami, caused by the 2004 Indian Ocean earthquake hit Asian countries bordering the Indian Ocean, and also the Maldives. Tens of thousands of lives were lost, and many tourists died. This, together with the vast clean-up operation in place, has stopped or severely hampered tourism to the area.

Special forms of tourism

For the past few decades other forms of tourism, also known as niche tourism, have been becoming more popular, particularly:

• Adventure tourism: tourism involving travel in rugged regions, or adventurous sports such as mountaineering and hiking (tramping).
• Agritourism: farm based tourism, helping to support the local agricultural economy.
• Ancestry tourism: (also known as genealogy tourism) is the travel with the aim of tracing one's ancestry, visiting the birth places of these ancestors and sometimes getting to know distant family.
• Armchair tourism and virtual tourism: not travelling physically, but exploring the world through internet, books, TV, etc.
• Audio tourism: includes audio walking tours and other audio guided forms of tourism including museum audio guides and audio travel books.
• Bookstore Tourism is a grassroots effort to support independent bookstores by promoting them as a travel destination.
• Creative Tourism is a new form of tourism that allows visitors to develop their creative potential, and get closer to local people, through informal participation in hands-on workshops that draw on the culture of their holiday destinations.
• Cultural tourism: includes urban tourism, visiting historical or interesting cities, and experiencing their cultural heritages. This type of tourism may also include specialized cultural experiences, such as art museum tourism where the tourist visits many art museums during the tour, or opera tourism where the tourist sees many operas or concerts during the tour.
• Dark tourism: is the travel to sites associated with death and suffering. The first tourist agency to specialise in this kind of tourism started with trips to Lakehurst, New Jersey, the scene of the Hindenburg airship disaster.
• Disaster tourism: travelling to a disaster scene not primarily for helping, but because it is interesting to see. It can be a problem if it hinders rescue, relief and repair work.
• Drug tourism: travel to a country to obtain or consume drugs, either legally or illegally.
• Ecotourism: ecological tourism.
• Educational tourism: may involve travelling to an education institution, a wooded retreat or some other destination in order to take personal-interest classes, such as cooking classes with a famous chef or crafts classes.
• Extreme tourism: tourism associated with high risk.
• Free Independent Traveler: a sector of the market and philosophy of constructing a vacation by sourcing one's own components e.g. accommodation, transport.
• Gambling tourism, e.g. to Atlantic City, Las Vegas, Palm Springs, California, Macau or Monte Carlo for the purpose of gambling at the casinos there.
• Garden tourism visiting botanical gardens famous places in the history of gardening, such as Versailles and the Taj Mahal.
• Heritage tourism: visiting historical (Rome, Athens, Cracow) or industrial sites, such as old canals, railways, battlegrounds, etc.
• Health tourism: usually to escape from cities or relieve stress, perhaps for some 'fun in the sun', etc. Often to Sanatoriums or "health spas".
• Hobby tourism: tourism alone or with groups to participate in hobby interests, to meet others with similar interests, or to experience something pertinent to the hobby. Examples might be garden tours, amateur radio DX-peditions, or square dance cruises.
• Inclusive tourism: tourism marketed to those with functional limits or disabilities. Referred to as "Tourism for All" in some regions. Destinations often employ Universal Design and Universal Destination Development principles.
• for what is illegal in one's own country, such as abortion or euthanasia
• for advanced care that is not available in one's own country
• in the case that there are long waiting lists in one's own country
• Pop-culture tourism: tourism by those that visit a particular location after reading about it or seeing it in a film.
• Perpetual tourism: wealthy individuals always on vacation; some of them, for tax purposes, to avoid being resident in any country.
• Pilgrimage Tourism: pilgrimages to ancient holy places (Rome and Santiago de Compostela for Catholics, temples and stupas of Nepal for the Hindus and Buddhist, Mount Athos or Painted churches of northern Moldavia for the Orthodox), religious sites such as mosques, shrines, etc.
• Sex tourism: travelling solely for the purpose of sexual activity, usually with prostitutes
• Solo Travel: travelling alone
• Sport travel: skiing, golf and scuba diving are popular ways to spend a vacation. This could also include travelling to a major international sporting event such as the FIFA World Cup or following a tour such as the Ashes or British and Irish Lions.
• Space tourism: traveling in outer space or on spaceships.
• Vacilando is a special kind of wanderer for whom the process of travelling is more important than the destination.
• Wine tourism, the visiting of growing regions, vineyards, wineries, tasting rooms, wine festivals, and similar places or events for the purpose of consuming or purchasing wine.

The World Tourism Organization (UNWTO) forecasts that international tourism will continue growing at the average annual rate of 4 %.[3] By 2020 Europe will remain the most popular destination, but its share will drop from 60 % in 1995 to 46 %. Long-haul will grow slightly faster than intraregional travel and by 2020 its share will increase from 18 % in 1995 to 24 %.

With the advent of e-commerce, tourism products have become one of the most traded items on the internet. Tourism products and services have been made available through intermediaries, although tourism providers (hotels, airlines, etc.) can sell their services directly. This has put pressure on intermediaries from both on-line and traditional shops.

Space tourism is expected to "take off" in the first quarter of the 21st century, although compared with traditional destinations the number of tourists in orbit will remain low until technologies such as a space elevator make space travel cheap.

Technological improvement is likely to make possible air-ship hotels, based either on solar-powered airplanes or large dirigibles. Underwater hotels, such as Hydropolis, expected to open in Dubai in 2006, will be built. On the ocean tourists will be welcomed by ever larger cruise ships and perhaps floating cities.

Some futurists expect that movable hotel "pods" will be created that could be temporarily erected anywhere on the planet, where building a permanent resort would be unacceptable politically, economically or environmentally.

Sustainable tourism

There are many different definitions of sustainable tourism that have been developed over the last decade. Most tend to assume that all tourists are responsible for respecting and conserving a location's economic, environmental, and socio-cultural balances.

Global economists forecast continuing international tourism growth, ranging between three and six percent annually, depending on the location. As one of the world's largest and fastest growing industries, this continuous growth will place great stress on remaining biodiverse habitats, often used to support mass tourism. Sustainable tourists are aware of these dangers and seek to protect their favorite destinations, and to protect tourism as an industry. Sustainable tourists face many responsibilities to reduce tourism's impact on communities, including:

• informing themselves of the culture, politics, and economy of the communities being visited.
• anticipating and respecting local cultures' expectations and assumptions.
• contributing to intercultural understanding and tolerance.
• supporting the integrity of local cultures by favoring businesses which conserve cultural heritage
• supporting local economies by purchasing local goods and participating with small, local businesses.
• conserving resources by seeking out businesses that are environmentally conscious, and by using the least possible amount of non-renewable resources.

Green conventions, meetings and events

Large conventions, meetings and other major organized events drive the travel, tourism and hospitality industry. Cities and convention centers compete to attract such commerce, commerce which has heavy impacts on resource use and the environment. Major sporting events, such as the Olympic Games, present special problems regarding environmental burdens and degradation. But burdens imposed by the regular convention industry can be vastly more significant.

Green conventions and events are a new but growing sector and marketing point within the convention and hospitality industry. More environmentally aware organizations, corporations and government agencies are now seeking more sustainable event practices, greener hotels, restaurants and convention venues, and more energy efficient or climate neutral travel and ground transportation.

Additionally, some convention centers have begun to take direct action in reducing the impact of the conventions they host. One example is the Moscone Center in San Francisco, California, which has a very aggressive recycling program, a large solar power system, and other programs aimed at reducing impact and increasing efficiency.

With the advent of the internet, some traditional conventions are being replaced with virtual conventions, where the attendees remain in their home physical location and "attend" the convention by use of a web-based interface programmed for the task. This sort of "virtual" meeting eliminates all of the impacts associated with travel, accommodation, food wastage, and other necessary impacts of traditional, physical conventions.

Sustainable travel

Travel over long distances requires a large amount of either time or energy. Generally this involves burning fossil fuels, a largely unsustainable practice and one that contributes to climate change, via CO2 emissions.

Air travel is perhaps the worst offender in this regard, contributing to between 2 and 3% of global carbon emissions [1]. Given a business-as-usual approach, this could be expected to rise to 5% by 2015 and 10% by 2050. Car travel is the next worst offender.

Mass transport is the most climate friendly method of travel, and generally the rule is "the bigger the better" - compared to cars, buses are relatively more sustainable, and trains and ships are even more so. Human energy and renewable energy are the most efficient, and hence, sustainable. Travel by bicycle, solar powered car, or sailing boat produces no carbon emissions (although the embodied energy in these vehicles generally comes at the expense of carbon emission).

Ecotourism, or ecological tourism, is a movement to make Tourism more ecological. When successful, it contributes actively to the conservation of natural and cultural heritage, includes local and indigenous communities in its planning, development and operation, reduces poverty and enhances intercultural & environmental understanding.

Travel planning

If you were to plan tourism you can use various online sources that allow for efficient and relatively low cost bookings of both flights and accommodations.

If you were going to start a business as a travel agent you could read books that cover this (although this one eventually should) or else you could study the topic at a local university or at Wikiversity (which should eventually cover the topic).

Tourism management

Hospitality and Tourism Management (HTM) is a major in a Bachelors of Science in Business Administration.

Graduate students graduate with a Masters of Business Administration, a Masters or Science, or a Doctorate of Philosophy in Hospitality and Tourism Management.

It is a focus that is studied by individuals that are intending to work in the Hospitality Industry, examples of which are; Hotels, Resorts, Casinos, and Restaurants.

Within the HTM concentration there is generally:

• Food Management and Operations (Examples: Food Science, Food Selection and Preparation, Food and Beverage Operations)
• Lodging Operations (Examples: Hotel Operations, Lodging Management, Financial Management and Cost Control for Hospitality Organizations)
• Global Tourism (Examples: Travel and Tourism Management, Tourism Analysis, Hospitality and Research Methods)
• Event Management (Examples: Hospitality Sales, Catering Management, Hospitality Marketing Management)

Several large corporations such as Marriot, Hyatt (go to www.Hyatt.com for current openings), Wyndham and Hilton Hotels have summer internships/manager in training programs for students majoring in Hospitality and Tourism Management, to help students get valuable work experience...

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Towards resilience and sustainability: Travel and tourism development recovery

The travel and tourism sector is slowly beginning to recover. Image:  Unsplash/Eva Darron

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• The World Economic Forum has published its inaugural Travel and Tourism Development Index .
• It focuses on the growing role of sustainability and resilience in travel and tourism growth.
• Recovery for the sector is uneven and tourist arrivals in January 2022 were still 67% below 2019 levels, according to the World Tourism Organization.
• Here are some key findings from the index on how the sector can build back better.

In 2018, international tourism grew for the ninth consecutive year. Tourist arrivals reached 1.4 billion and generated $1.7 trillion in export earnings, according to the World Tourism Organization (UNWTO).

Travel and tourism: post-pandemic

The picture looked very different two years later, as COVID-19 lockdowns hit the travel and tourism (T&T) sector hard. In 2020 alone, it faced losses of $4.5 trillion and 62 million jobs , impacting the living standards and well-being of communities across the globe.

While the roll-out of COVID-19 vaccines and easing of restrictions means a recovery has now started, it’s proving gradual and uneven largely due to variations in vaccine distribution, and because of Omicron and its BA.2 subvariant. And customers are not only being more cautious when it comes to health, but also around the impact of travel on the environment and local communities.

International tourist arrivals rose by 18 million in January 2022 compared with a year earlier. This equals the increase for the whole of 2021 from 2020, but January’s numbers were still 67% below the same month in 2019, according to the UNWTO.

The war in Ukraine has added to instability and economic disruption for the sector. Against this backdrop, the World Economic Forum’s inaugural Travel and Tourism Development Index reflects the growing role of sustainability and resilience in T&T growth, as well as the sector’s role in economic and social development more broadly.

The TTDI benchmarks and measures “the set of factors and policies that enable the sustainable and resilient development of the T&T sector, which in turn contributes to the development of a country”. The TTDI is a direct evolution of the long-running Travel and Tourism Competitiveness Index (TTCI), with the change reflecting the index’s increased coverage of T&T development concepts, including sustainability and resilience impact on T&T growth and is designed to highlight the sector’s role in broader economic and social development as well as the need for T&T stakeholder collaboration to mitigate the impact of the pandemic, bolster the recovery and deal with future challenges and risks. Some of the most notable framework and methodology differences between the TTCI and TTDI include the additions of new pillars, including Non-Leisure Resources, Socioeconomic Resilience and Conditions, and T&T Demand Pressure and Impact. Please see the Technical notes and methodology. section to learn more about the index and the differences between the TTCI and TTDI.

The Travel and Tourism Development Index 2021

The index covers 117 economies, which accounted for around 96% of the world’s direct T&T GDP in 2020. It measures the factors and policies that will enable sustainable and resilient development of the sector.

These include everything from business, safety and health conditions, to infrastructure and natural resources, environmental, socioeconomic and demand pressures.

“As the sector slowly recovers, it will be crucial that lessons are learned from recent and current crises and that steps are taken to embed long-term inclusivity, sustainability and resilience into the travel and tourism sector as it faces evolving challenges and risks,” says the publication, a collaboration between many of the sector’s stakeholders.

The index consists of five subindexes, 17 pillars and 112 individual indicators, distributed among the different pillars, as shown below.

On average, scores increased by just 0.1% between 2019 and 2021, reflecting the difficult situation facing the sector. Only 39 out of 117 economies covered by the index improved by more than 1.0%, while 27 declined by over 1.0%.

Nine of the top 10 scoring countries are high-income economies in Europe or Asia-Pacific. Japan tops the ranking, with the United States in second, followed by Spain, France, Germany, Switzerland, Australia, the United Kingdom and Singapore. Italy completes the top 10, moving up from 12th in 2019.

Viet Nam experienced the greatest improvement in score, with a rise of 4.7% lifting it from 60th to 52nd on the overall index. Indonesia achieved the greatest improvement in rank, increasing its score by 3.4% to climb from 44th to 32nd, while Saudi Arabia achieved the second greatest improvement in rank, moving up to 33rd from 43rd as its score rose by 2.3%.

Rebuilding travel and tourism for a sustainable and resilient future

Here are some of the key findings from the publication:

1. The need for travel and tourism development has never been greater

The sector is a major driver of economic development, global connectivity and the livelihood of some of the populations and businesses most vulnerable to, and hard hit by, the pandemic. In 2019, T&T’s direct, indirect and induced GDP accounted for about 10% of global GDP . For many emerging economies, T&T is a major source of export revenue, foreign exchange earnings and investment. Research has shown that T&T growth can support social progress and create opportunities and well-being for communities, so supporting travel and tourism development and recovery will be critical.

2. Shifting demand dynamics have created opportunities and a need for adaptation

In the shorter term, challenges such as reduced capacity, geopolitical tensions and labour shortages are slowing recovery. However, opportunities have been created in markets such as domestic and nature-based tourism, the rise of digital nomads and “bleisure” travel – the addition of leisure activities to business travel. Many countries have provided incentives to boost domestic tourism. For example, Singapore, South Korea, Japan and Hong Kong SAR, China, have rolled out programmes that provide discounts, coupons and subsidies for domestic travel. The trends towards more rural and nature-based tourism offer an opportunity for less-developed economies to harness the benefits of travel and tourism given that the distribution and quality of natural assets are less tied to performance in economic development, with natural resources being one of the few pillars where non-high income economies typically outperform high-income countries. The travel and tourism sector stakeholders’ ability to adapt under these conditions highlights its capacity for adaptation and flexibility.

3. Development strategies can be employed to help the sector build back better

Amid the current challenges, shifting demand dynamics and future opportunities and risks, a more inclusive, sustainable and resilient travel and tourism sector can be – and needs to be – built, says the publication. But this calls for thoughtful and effective consideration. It also requires leveraging development drivers and strategies. This can be done by: restoring and accelerating international openness and consumer confidence through, for example, improved health and security; building favourable and inclusive labour, business and socioeconomic conditions; focusing more on environmental sustainability; strengthening the management of tourism demand and impact; and investing in digital technology.

A note on the methodology

Most of the dataset for the Travel & Tourism Development Index (TTDI) is statistical data from international organizations, with the remainder based on survey data from the World Economic Forum’s annual Executive Opinion Survey, which is used to measure concepts that are qualitative in nature or for which internationally comparable statistics are not available for enough countries. The index is an update of the Travel & Tourism Competitiveness Index (TTCI), but due to the altered methodology, framework and other differences, the 2021 TTDI should not be compared to the 2019 TTCI. To help address this, the 2019 results were recalculated using the new framework, methodology and indicators of the TTDI. Therefore, all comparisons in score and rank throughout this report are between the 2019 results and the 2021 results of the TTDI. Data for the TTDI 2021 was collected before the war in Ukraine.

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Now boarding: Faces, places, and trends shaping tourism in 2024

After falling by 75 percent in 2020, travel is on its way to a full recovery by the end of 2024. Domestic travel is expected to grow 3 percent annually and reach 19 billion lodging nights per year by 2030. 1 Unless otherwise noted, the source for all data and projections is Oxford Economics. Over the same time frame, international travel should likewise ramp up to its historical average of nine billion nights. Spending on travel is expected to follow a similar trajectory, with an estimated $8.6 trillion in traveler outlays in 2024, representing roughly 9 percent of this year’s global GDP.

About the authors

This article is a collaborative effort by Caroline Tufft , Margaux Constantin , Matteo Pacca , and Ryan Mann , with Ivan Gladstone and Jasperina de Vries, representing views from McKinsey’s Travel, Logistics & Infrastructure Practice.

There’s no doubt people still love to travel and will continue to seek new experiences in new places. But where will travelers come from, and where will they go? We developed a snapshot of current traveler flows, along with estimates for growth through 2030. For the purposes of this report, we have divided the world into four regions—the Americas, Asia, Europe, and the Middle East and Africa.

Our analysis identifies three major themes for industry stakeholders to consider:

• The bulk of travel spending is close to home. Stakeholders should ensure they capture the full potential of domestic travel before shifting their focus to international travelers. And they should start with international travelers who visit nearby countries—as intraregional trips represent the largest travel segment after domestic trips.
• Source markets are shifting. Although established source markets continue to anchor global travel, Eastern Europe, India, and Southeast Asia are all becoming fast-growing sources of outbound tourism.
• The destinations of the future may not be the ones you imagine. Alongside enduring favorites, places that weren’t on many tourists’ maps are finding clever ways to lure international travelers and establish themselves as desirable destinations.

The bulk of travel spending is close to home

International travel might feel more glamorous, but tourism players should not forget that domestic travel still represents the bulk of the market, accounting for 75 percent of global travel spending (Exhibit 1). Domestic travel recovered from the COVID-19 pandemic faster than international travel, as is typical coming out of downturns. And although there has been a recent boom in “revenge travel,” with travelers prioritizing international trips that were delayed by the pandemic, a return to prepandemic norms, in which domestic travel represents 70 percent of spending, is expected by 2030.

The United States is the world’s largest domestic travel market at $1 trillion in annual spending. Sixty-eight percent of all trips that start in the United States remain within its borders. Domestic demand has softened slightly, as American travelers return abroad. 2 Dawit Habtemariam, “Domestic U.S. tourism growth levels off as Americans head overseas,” Skift, August 18, 2023. But tourism players with the right offerings are still thriving: five national parks broke attendance records in 2023 (including Joshua Tree National Park, which capitalized on growing interest from stargazers indulging in “dark sky” tourism 3 Scott McConkey, “5 national parks set attendance records in 2023, and the reasons may surprise you,” Wealth of Geeks, April 16, 2024. ).

China’s $744 billion domestic travel market is currently the world’s second largest. Chinese travelers spent the pandemic learning to appreciate the diversity of experiences on offer within their own country. Even as borders open back up, Chinese travelers are staying close to home. And domestic destinations are benefiting: for example, Changchun (home to the Changchun Ice and Snow Festival) realized 160 percent year-on-year growth in visitors in 2023. 4 Shi Xiaoji, “Why don’t Chinese people like to travel abroad anymore? The global tourism industry has lost 900 billion yuan. What is the situation?,” NetEase, February 12, 2024. In 2024, domestic travel during Lunar New Year exceeded prepandemic levels by 19 percent.

China’s domestic travel market is expected to grow 12 percent annually and overtake the United States’ to become the world’s largest by 2030. Hotel construction reflects this expectation: 30 percent of the global hotel construction pipeline is currently concentrated in China. The pipeline is heavily skewed toward luxury properties, with more than twice as many luxury hotels under construction in China as in the United States.

India, currently the world’s sixth-largest domestic travel market by spending, is another thriving area for domestic travel. With the subcontinent’s growing middle class powering travel spending growth of roughly 9 percent per year, India’s domestic market could overtake Japan’s and Mexico’s to become the world’s fourth largest by 2030. Domestic air passenger traffic in India is projected to double by 2030, 5 Murali Krishnan, “Can India’s airports cope with rapid passenger growth?,” Deutsche Welle, February 7, 2024. boosted in part by a state-subsidized initiative that aims to connect underserved domestic airports. 6 “India is seeing a massive aviation boom,” Economist , November 23, 2023.

When travelers do go abroad, they often stay close to home (Exhibit 2).

Europe and Asia, in particular, demonstrate strong and growing intraregional travel markets.

Recognizing this general trend, stakeholders have been funneling investment toward regional tourism destinations. An Emirati wealth fund, for instance, has announced its intent to invest roughly $35 billion into established hospitality properties and development opportunities in Egypt. 7 Michael Gunn and Mirette Magdy, “UAE’s $35 billion Egypt deal marks Gulf powers’ buying spree,” Bloomberg, April 27, 2024.

Europe has long played host to a high share of intraregional travel. Seventy percent of its travelers’ international trips stay within the region. Europe’s most popular destinations for intraregional travelers are perennial warm-weather favorites—Spain (18 percent), Italy (10 percent), and France (8 percent)—with limited change to these preferences expected between now and 2030.

Despite longer travel distances between Asian countries, Asia’s intraregional travel market is beginning to resemble Europe’s. Intraregional travel currently accounts for about 60 percent of international trips in Asia—a share expected to climb to 64 percent by 2030. As in Europe in past decades, Asian intraregional travel is benefiting from diminishing visa barriers and the development of a low-cost, regional flight network.

Thailand is projected to enjoy continued, growing popularity with Asian travelers. Thailand waived visa requirements for Chinese tourists in 2023 and plans to do the same for Indian tourists starting in 2024. It has aggressively targeted the fast-growing Indian traveler segment, launching more than 50 marketing campaigns directed at Indians over the past decade. The investment may be paying off: Bangkok recently overtook Dubai as the most popular city destination for Indian tourists. 8 “Bangkok overtakes Dubai as top destination for Indians post visa relaxation, reveals Agoda,” PR Newswire, January 18, 2024.

A McKinsey ConsumerWise survey on consumer sentiment, conducted in February 2024, suggests that Chinese travelers are also exhibiting high interest in international travel, with 36 percent of survey respondents indicating that they intend to spend more on international travel in the next three months. 9 Daniel Zipser, “ China brief: Consumers are spending again (outside of China) ,” McKinsey, April 8, 2024. Much of this interest is directed toward regional destinations such as Southeast Asia and Japan, with interest in travel to Europe down from previous years. 10 Guang Chen, Zi Chen, Steve Saxon, and Jackey Yu, “ Outlook for China tourism 2023: Light at the end of the tunnel ,” McKinsey, May 9, 2023.

Given travelers’ preference for proximity, how can tourism stakeholders further capitalize on domestic and intraregional travel demand? Here are a few strategies:

• Craft offerings that encourage domestic tourists to rediscover local gems. Destinations, hotels, and transportation providers can encourage domestic tourists to integrate lesser-known cultural landmarks into their trips to visit friends and relatives. In France, the upscale hotel chain Relais & Châteaux markets historic properties that lie far from classic tourist sights—such as Château Saint-Jean in rural Auvergne—as a welcome escape from the bustle of Paris. In Mexico, the Pueblos Mágicos program has successfully boosted domestic tourist visits to a set of “magical towns” that showcase Mexican heritage.
• Fold one-off domestic destinations into fuller itineraries. Route 66 in the United States is a classic road trip pathway, which spurs visits to attractions all along the highway’s length. Tourism stakeholders can collaborate to create similar types of domestic itineraries around the world. For instance, Mexico has expanded on its Pueblos Mágicos concept by branding coordinated visits to multiple villages as “magical routes.” In France, local tourism boards and vineyards have collaborated to promote bucket list “wine routes” around the country.
• Make crossing borders into neighboring countries seamless. Removing logistical barriers to travel can nudge tourists to upgrade a one-off trip to a single attraction into a bucket list journey across multiple, less-trodden destinations. In Africa, for example, Ethiopian Airlines is facilitating cross-border travel to major regional tourist sites through improved air connectivity. In Asia, Thailand has announced its intent to create a joint visa easing travel among Cambodia, Laos, Malaysia, Myanmar, Thailand, and Vietnam.

Source markets are shifting

The United States, Germany, the United Kingdom, China, and France remain the world’s five largest sources of travelers, in that order. These countries collectively accounted for 38 percent of international travel spending in 2023 and are expected to remain the top five source markets through 2030. But interest in travel is blossoming in other parts of the world—causing a shift in the balance of outbound travel flows (Exhibit 3).

North Americans’ travel spending is projected to hold steady at roughly 3 percent annual growth. US consumers voice growing concerns about inflation, and the most cost-constrained traveler segments are reducing travel, which is affecting ultra-low-cost airlines and budget hotels. Most travelers, however, plan to continue traveling: McKinsey research suggests that American consumers rank international and domestic travel as their highest-priority areas for discretionary spending. Instead of canceling their trips, these consumers are adapting their behavior by traveling during off-peak periods or booking travel further in advance. Travel spending by Europeans paints a slightly rosier picture, with roughly 5 percent projected annual growth. Meanwhile, the projected 12 percent annual growth in Chinese travelers’ spending should anchor substantial increases in travel spending across Northeast Asia.

Alongside these enduring traveler segments, new groups of travelers are emerging. Eastern Europe, India, and Southeast Asia are still comparatively small source markets, but they are developing fast-growing pools of first-time tourists (Exhibit 4).

India’s breakneck GDP growth of 6 percent year over year is bolstering a new generation of travelers, 11 Benjamin Laker, “India will grow to become the world’s third-largest economy by 2027,” Forbes , February 23, 2024. resulting in a projected annual growth in travel spending of 9 percent between now and 2030. Indian air carriers and lodging companies are making substantial investments to meet projected demand. Budget airline IndiGo placed the largest aircraft order in commercial aviation history in 2023, when it pledged to buy 500 Airbus A320 planes 12 Anna Cooban, “Biggest plane deal in history: Airbus clinches massive order from India’s IndiGo,” CNN, June 19, 2023. ; that same week, Air India nearly equaled IndiGo’s order size with purchase agreements for 250 Airbus and 220 Boeing jets. IndiGo later added an order for 30 additional Airbus A350 planes, well suited to serving both domestic and international routes. 13 “Airbus confirms IndiGo's A350 aircraft order,” Economic Times , May 6, 2024. The Indian Hotels Company Limited is ramping up its hotel pipeline, aiming to open two new hotels per month in the near future. International players are not sitting on the sidelines: seven hotel chains are launching new brands in India in 2024, 14 Peden Doma Bhutia, “Indian Hotels expansion plans: 2 new brands launching, 2 hotels opening every month,” Skift, February 2, 2024. including Marriott’s first Moxy- and Tribute-branded hotels in India and entrants from Hilton’s Curio and Tapestry brands. 15 Forum Gandhi, “Check-in frenzy: International hotel giants unleash fresh brands in India’s booming hospitality landscape,” Hindu Businessline , February 13, 2024. Development focus has shifted away from major metropolises such as Mumbai and Delhi and toward fast-developing, smaller cities such as Chandigarh and Hyderabad.

Southeast Asian travel spending is projected to grow at roughly 7 percent per year. Pockets of particularly high growth exist in Cambodia, Malaysia, and the Philippines. To capitalize on this blossoming source market, neighboring countries are rolling out attractive visa arrangements: for example, China has agreed to reciprocal visa waivers for short-term travelers from Malaysia, Singapore, and Thailand. 16 Julienna Law, “China launches ‘visa-free era’ with Southeast Asia. Will travel retail boom?,” Jing Daily , January 30, 2024.

Travel spending by Eastern Europeans is expected to grow at 7 percent per year until 2030—two percentage points higher than spending by Western Europeans. Areas of especially high growth include the Czech Republic, Hungary, and Poland, where middle-class travelers are increasingly venturing farther afield. Major tourism players, including the TUI Group, have tapped into these new source markets by offering charter flights to warm-weather destinations such as Egypt. 17 Hildbrandt von Klaus, “TUI develops Czech Republic as a new source market,” FVW, December 22, 2023.

Although the number of travelers from these new source markets is growing, their purchasing power remains relatively limited. Compared with Western European travelers (who average $159 per night in total travel spending), South Asians spend 20 percent less, Eastern Europeans spend 40 percent less, and Southeast Asians spend 55 percent less. Only 3 percent of the current Asian hotel construction pipeline caters to economy travelers, suggesting a potential supply gap of rooms that could appeal to budget-constrained tourists.

While acknowledging that historical source markets will continue to constitute the bulk of travel spending, tourism players can consider actions such as these to capitalize on growing travel demand from newer markets:

• Reduce obstacles to travel. Countries can look for ways to strategically invest in simplifying travel for visitors from growing source markets. In 2017, for example, Azerbaijan introduced express processing of electronic visas for Indian visitors; annual arrivals from India increased fivefold in two years. Requirements regarding passport photocopies or in-person check-ins can similarly be assessed with an eye toward reducing red tape for travelers.
• Use culturally relevant marketing channels to reach new demographics. Unique, thoughtful marketing strategies can help destinations place themselves on first-time travelers’ bucket lists. For example, after the release of Zindagi Na Milegi Dobara , a popular Bollywood movie shot in Spain with support from the Spanish Ministry of Tourism, Indian tourism to Spain increased by 65 percent. 18 “ Zindagi Na Milegi Dobara part of syllabus in Spain colleges,” India Today , June 6, 2004.
• Give new travelers the tech they expect. Travelers from newer source markets often have access to tech-forward travel offerings. For example, Indian travelers can travel anywhere within their country without physical identification, thanks to the Digi Yatra app. The Southeast Asian rideshare app Grab has several helpful travel features that competitors lack, such as automated menu translation and currency conversion. Tourism stakeholders should consider how to adapt to the tech expectations of newer travelers, integrating relevant offerings that ease journeys.
• Create vibrant experiences tailored to different price points. Crafting lower-budget offerings for more cost-constrained travelers doesn’t need to result in giving them a subpar experience. Capsule hotels, in which guests sleep in small cubbies, began as a response to the high cost of accommodations in Japan, but they have become an attraction in their own right—appearing on many must-do lists. 19 Philip Tang, “24 of the best experiences in Japan,” Lonely Planet, March 23, 2024.

The places you’ll go: The destinations of the future may not be the ones you imagine

The world’s top ten destination countries (the United States, Spain, China, France, Saudi Arabia, Türkiye, Italy, Thailand, Japan, and India, in that order) currently receive 45 percent of all travel spending, including for domestic travel. But some new locales are gaining traction (Exhibit 5).

A significant number of travelers are expanding their horizons, booking journeys to less visited countries that are near to old standbys. For instance, Laos and Malaysia, which both border Thailand—an established destination that is home to Bangkok, the world’s most visited city 20 Katherine LaGrave, “This is the world’s most visited city,” AFAR , January 31, 2024. —are up a respective 20 percent and 17 percent, respectively, in year-over-year international travel spending.

The world’s top ten destination countries currently receive 45 percent of all travel spending, including domestic-travel spending. But some new locales are gaining traction.

Several other countries that have crafted thoughtful tourism demand generation strategies—such as Peru, the Philippines, Rwanda, and Vietnam—are also expected to reap benefits in the coming years. Vietnam logged a remarkable 40 percent increase in tourism spending in the five years before the pandemic. Postpandemic, it has rebounded in part by waiving visa requirements for European travelers (while indicating intent to offer similar exemptions in the future for Chinese and Indian travelers). 21 Ashvita Singh, “Vietnam looks to offer visa-free entry to Indians: India report,” Skift, November 20, 2023. The Philippines has made a concerted effort to shift its sun-and-beach branding toward a more well-rounded image, replacing its long-standing “It’s more fun in the Philippines” tourism slogan with “Love the Philippines.” Peru is highlighting less visited archeological sites while also marketing itself as a top-notch culinary destination through the promotion of Peruvian restaurants abroad. Rwanda is investing in infrastructure to become a major African transit hub, facilitated by Qatar Airways’ purchase of a 60 percent stake in the country’s major airport. 22 Dylan Cresswell, “Rwanda plots ambitious tourism recovery,” African Business , July 28, 2022. Rwanda has also successfully capitalized on sustainable tourism: by charging $1,500 per gorilla trekking permit, for instance, it has maximized revenue while reducing environmental impact.

Tourism players might consider taking some of these actions to lure tourists to less familiar destinations:

• Collaborate across the tourism ecosystem. Promotion is not solely the domain of destination marketing organizations. Accommodation, transportation, and experience providers can also play important roles. In Singapore, for instance, the luxury resort Marina Bay Sands partners extensively with Singapore Airlines and the Singapore Tourism Board to offer compelling tourism offerings. Past collaborations have included flight and stay packages built around culinary festivals. 23 “Singapore Tourism Board, Marina Bay Sands & UOB partner to enliven Marina Bay precinct,” Singapore Tourism Board news release, January 25, 2024.
• Use infrastructure linkage to promote new destinations. By extending route options, transportation providers can encourage visitors to create itineraries that combine familiar destinations with new attractions. In Asia, Thailand’s tourism authority has attempted to nudge visitors away from the most heavily trafficked parts of the country, such as Bangkok and Phuket, and toward less popular destinations.
• Deploy social media to reach different demographics. Innovative social media campaigns can help put a destination on the map. Australia launched its “Ruby the kangaroo” campaign in China to coincide with the return of postpandemic air capacity between the two places. A video adapted for Chinese context (with appropriate gestures and a hashtag in Mandarin) garnered more than 20 million views in a single day on one of China’s largest social media platforms. 24 Nicole Gong, “Can Ruby the kangaroo bring Chinese tourists hopping back to Australia?,” SBS, June 5, 2023.
• Embrace unknown status. “Off the beaten path” messaging can appeal to widely traveled tourists seeking fresh experiences. Saudi Arabia’s “#WhereInTheWorld” campaign promoted the country’s tourist spots by acknowledging that they are less familiar to travelers, using a series of images that compared these spots with better-known destinations.

As tourism stakeholders look to the future, they can take steps to ensure that they continue to delight existing travelers while also embracing new ones. Domestic and intraregional tourism remain major opportunities—catering to local tourists’ preferences while building infrastructure that makes travel more seamless within a region could help capture them. Creative collaboration among tourism stakeholders can help put lesser-known destinations on the map. Travel tides are shifting. Expertly navigating these currents could yield rich rewards.

Caroline Tufft is a senior partner in McKinsey’s London office, Margaux Constantin is a partner in the Dubai office, Matteo Pacca is a senior partner in the Paris office, Ryan Mann is a partner in the Chicago office, Ivan Gladstone is an associate partner in the Riyadh office, and Jasperina de Vries is an associate partner in the Amsterdam office.

The authors wish to thank Abdulhadi Alghamdi, Alessandra Powell, Alex Dichter, Cedric Tsai, Diane Vu, Elisa Wallwitz, Lily Miller, Maggie Coffey, Nadya Snezhkova, Nick Meronyk, Paulina Baum, Peimin Suo, Rebecca Stone, Sarah Fellay, Sarah Sahel, Steffen Fuchs, Steffen Köpke, Steve Saxon, Sophia Wang, and Urs Binggeli for their contributions to this article.

This article was edited by Seth Stevenson, a senior editor in the New York office.

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Travel & Tourism Industry

International travel plays a critical role in the US economy. Prior to the COVID-19 pandemic, in 2019, international visitors spent $233.5 billion experiencing the United States; injecting nearly $640 million a day into the U.S. economy. The U.S. travel and tourism industry generated $1.9 trillion in economic output; supporting 9.5 million American jobs and accounted for 2.9% of U.S. GDP. At 14.5% of international travel spending globally, international travelers spend more in the United States than any other country. As recovery efforts continue, the International Trade Administration actively supports the industry via the twin pillars of the National Travel and Tourism Office (NTTO) and the U.S. Commercial Service . Working together, we provide a range of data and related products to support the international outreach and promotion efforts of U.S. destinations and attractions. With over 100 offices throughout the United States and in 75 countries around the world, we are where you are and where you want to be.

What We Do For You:

• Promote U.S. policies that encourage the competitiveness of the U.S. travel industry
• Provide business counseling, match-making and promotional support services to help U.S. destinations and attractions penetrate new markets and increase market share
• Seek to ensure that U.S. regulations and other programs do not adversely impact U.S. industry competitiveness
• Provide information, trade data, and market analysis to the U.S. travel industry, partners and policy makers
• Maintain close relationships with the U.S. travel industry to focus and construct programs that enhance the industry’s competitiveness and overseas profile

Featured Events & Resources

How Can We Help You Attract International Visitors?

Travel and Tourism Market Intelligence

Ireland and the United States Establish New Direct Routes, Linking More Cities Than Ever Before

The U.S.-Japan Tourism Year 2024 provides opportunities for the U.S. travel industry to promote American destinations and services in Japan.

As the Singapore government expands tourism industry support, the sector eagerly seeks new technologies and innovations to support its green transitioning. 

Fraudulent Email Alert

We are aware of an individual fraudulently claiming to represent ITA in order to solicit personal information. Individuals have reported receiving emails and phone calls “regarding a possible recent scam involving your vacation property.” The recipient is then instructed to complete a complaint form with personal information to receive support from ITA.

This is a scam and was not sent by ITA or any of its employees. If you receive such a communication, please do not respond or provide any personal information. 

If you believe that you have been a target to such a scam, please notify the Department of Commerce, Office of Inspector General, immediately and file a report. 

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Our history

Milestones in our journey as an industry leader

2010 - 2019

2000 - 2009, 1900 - 1999, 1872 - 1899, appointments, 2020 - now  .

• November CWT significantly strengthens financial position through balance sheet recapitalization.
• June CWT forms strategic partnership with Spotnana to provide next generation global travel solution to customers.
• May CWT partners with Booking.com for Business to provide expanded content and 24/7 servicing.
• April CWT Meetings & Events launches carbon calculator to help reduce customers’ carbon footprint.
• February CWT announces its 2023 product investment focus and issues $90m of equity to help scale strategic value-enhancing opportunities. CWT publishes tenth annual sustainability report now organized under Environmental, Social and Governance framework, previously known as Responsible Business.
• October CWT adds new trip planning, management and collaboration functionalities to its myCWT platform.
• July CWT included in America’s Best Employers for Women. CWT signs PACT's (formerly ECPAT) Code of Conduct for the Protection of Children in Travel and Tourism.
• June CWT launches 24/7 English-Mandarin bilingual hub service.
• March CWT launches Real-Time Carbon Footprint Indicators to help customers make more sustainable choices.
• February CWT unveils initial focus of $100m technology, innovation, and product investment plans.
• January CWT commences celebrations of 150 years in travel. A heritage that traces back to 1872 when Belgian engineer and industrialist, George Nagelmackers, sold the American concept of sleeping cars to European rail operators.
• November CWT to invest $100m in technology and innovative products as recapitalization plan is approved. CWT exceeds 2021 messaging integration targets with 1,000th customer adoption.
• June Commitment to significantly reduce CWT's environmental footprint by signing the Science Based Targets Call to Action Standard Commitment Letter.
• October CWT Meetings & Events launches CWT easy meetings, a direct-booking platform for small meetings. The platform gives meeting organizers access to over 250,000 meeting rooms in hotels (both independent and chain) as well as unique venues & event spaces in more than 90 countries . 8th annual Responsible Business Report published, showing continued momentum, including being awarded the newly established EcoVadis Platinum sustainability rating and maintaining the United Nations (UN) Global Compact Advanced Level.
• September CWT Solutions Group creates a new responsible travel consulting framework.
• April CWT is awarded Platinum status for responsible business by EcoVadis – top rating for the fourth successive year.
• February CWT partners with Timeshifter to offer jet lag solution for traveling employees
• January CWT launches the first open API-based global travel management platform for China. CWTSatoTravel partners with US Defense Department’s Military Spouse Employment Partnership (MSEP). CWT Energy, Resources & Marine (ERM) have signed a preferred global agreement with The Visa Team, a specialist in visa-handling services for the oil and gas, mining, and marine industries. Business Travel On the Fly podcast is launched.

2010 - 2019  

• December CWT Meetings & Events is named to CMI 25 List for 10th year in a row.
• October First successful live NDC booking through Amadeus Selling Platform Connect. CWT and the Carlson Family Foundation host the Minnesota Hackathon to fight online child trafficking in partnership with Thorn.
• September CWT Meetings & Events is named to CMI 25 List for 10th year in a row.
• August RoomIt by CWT™ announces its first global campaign in support of the World Childhood Foundation, which is celebrating its 20th anniversary this year.
• June CWT publishes its 2019 Annual Responsible Business Report and reached its third consecutive annual EcoVadis Gold rating and the United Nations Global Compact Advanced Level rating for its annual Responsible Business Report.
• May CWT Meetings & Events signs an agreement with Kaplan Higher Education Academy (KHEA), part of Kaplan in Singapore, a leading private education institution, to enhance employment opportunities for students in the hospitality & MICE (Meetings, Incentives, Conferences and Events) industries.
• April CWT secures a UK Cyber Essentials certification. This UK Government-backed scheme is designed to protect organizations and their data against a wide range of cyberattacks.
• March CWT reported strong growth in 2018. CWT is awarded 3rd successive EcoVadis Gold status in recognition of responsible business practices.
• February CWT rebrand and updated customer value proposition is launched.
• November CWT launched AI-powered travel reporting tool, CWT AnswerIQ
• April CWT reported strong 2017 performance.
• March Diana Nelson, Kurt Ekert and the ELT signed the UN Women’s Empowerment Principles .
• December CWT passes the one-millionth registered user milestone for the mobile app myCWT, (formerly called CWT To Go™) and began trialing air booking capabilities.
• November CWT delivers a new travel technology platform, myCWT, to drive digital products.
• July CWT becomes the first TMC to build and launch its own hotel distribution business, RoomIt by CWT.
• September CWT launches CWT 3.0 growth strategy and vision to be the leading digital TMC.
• November CWT announces its Corporate Innovation team , dedicated to further driving and developing a company-wide culture of innovation.
• June Carlson enters into a definitive agreement with JP MorganChase to acquire full ownership of CWT, heralding an exciting new chapter for the company.
• April CWT Meetings & Events announces its entry into China's rapidly growing meetings and events market.
• September CWT wins the GBTA Project ICARUS Europe travel supplier outstanding achievement award 2013 – intermediary, for the  CWT Travel Stress Index.
• January CWT celebrates 10 years in China and renews its joint venture relationship with China Air Services for a further 10 years.
• October CWT Acquires WorldMate, leader in mobile travel technology, and also wins "Best Corporate Travel Agency 2012" at the TTG Travel Awards.
• July CWT To Go  TM , our mobile app, wins the 2012 Global Business Travel Association (GBTA) award for innovation of the year in the category of "Outstanding apps" – voted for by business travelers.
• November CWT expands its presence in Latin America with two acquisitions: Centenial Group, its partner in Costa Rica since 2004, in October, and Net Tour Viagens E Turismo LTDA (Net Tours) in Brazil.
• May CWT starts its mobile services offering with the launch of CWT To Go , a free mobile services application that allows travelers to access their travel itineraries directly from their mobile devices while on their trips. 
• February CWT acquires Kaleva Travel Ltd., its partner since 1995, with operations in Finland, Estonia, Latvia, Lithuania and Romania.

2000 - 2009  

• February CWT received a 2009 Business Travel Innovation Award for its compliance-enhancing solution  CWT Policy Messenger  at the  Business Travel Show  held in London. This marks the second consecutive innovation award for CWT in the competition's Travel Management Services Category.
• October CWT CWT signed a global agreement with The CarbonNeutral Company, the leading carbon offset and climate consulting firm, to provide emissions management services to CWT clients and enhance its CWT Sustainable Solutions offering.
• July CWT and American Express Global Commercial Card signed a multi-year, preferred supplier agreement by which CWT will promote and distribute three American Express payment solutions to its clients and prospects in 21 countries.
• July CWT announces the addition of ground transportation (which includes rental car, black car/limo and rail) to its repertoire of program optimization services. CWT gains majority control of Indian joint venture. The transaction underscores CWT's commitment to India's corporate travel market.
• August CWT finalizes acquisition of Navigant International, doubling its size in North America and reinforcing its presence in Asia Pacific. A change in CWT's shareholding structure also occurs in August: Carlson and One Equity Partners (OEP) acquire Accor's 50 percent stake in CWT. Carlson becomes majority shareholder with 55 percent of CWT shares, while OEP holds the remaining 45 percent.
• The  CWT Solutions Group , the company's consulting division, becomes global 
• March CWT acquires Maritz Corporate Travel in the United States in March, and Onboard in Germany in October, demonstrating its continuous commitment to playing a leading role in the consolidation of the travel management industry.
• CWT opens its first eCenter in Warsaw, Poland. This new service configuration is designed to handle multinational clients with business travelers in several European cities from a single business travel center.
• CWT and China Air Service establish a joint venture operation, CWT China, headquartered in Beijing.CWT celebrates 10 years in China and renews its joint venture relationship with China Air Services for a further 10 years.
• CWT and Japan Travel Bureau create a joint venture, JTB/CWT Business Travel Solutions. 
• CWT creates the CWT Solutions Group, whose experts provide consulting services to clients, notably in the selection and deployment of new technologies and in strategic air and hotel sourcing.
• Carlson Travel Network in the United States and Wagonlit Travel in Europe merge to form the Carlson Wagonlit Travel network for business travel. The new company is the first truly global travel services company with international management.
• CWT acquires Dodwell Travel from Inchcape Group and establishes CWT Hong Kong.
• Carlson Companies, Inc. of Minneapolis and the Paris-based Accor Group combine the business travel interests of their respective companies, Carlson Travel Network and Wagonlit Travel, under the name Carlson Wagonlit Travel.
• Wagons-Lits Travel changes its name to Wagonlit Travel and consolidates its network, products and services for multinational companies.
• Accor acquires La Compagnie des Wagons-Lits.
• Ask Mr. Foster changes its name to Carlson Travel Network, to capitalize on the professionalism, strength, and synergy of the Carlson Companies.
• Carlson Companies acquires P. Lawson Travel.
• Wagons-Lits Travel is the first business travel agency in Europe to create implants or on-site locations in the offices of clients. The company also introduces the widespread use of computer reservation systems and offers global reporting to European business travel customers. It expands quickly through major acquisitions in Denmark, Spain, Germany, the United Kingdom and Eastern Europe.
• The "Compagnie des Wagons-Lits" expands its mission of serving travelers to become Wagons-Lits Travel, Europe's largest travel management company.
• Ask Mr. Foster changes hands when two shareholders, Donald Fischer and Thomas Orr, pay US$157,000 for controlling interest in the company, which had seen hard times during and in the wake of World War II.
• Full-service Wagons-Lits agencies spring up in rail ticket offices throughout Europe.

1899 - 1872

• The Ask Mr. Foster travel agency is founded in St. Augustine, Florida, making it one of the oldest travel agencies in the United States. Its unusual name is the result of one local resident, Ward G. Foster, who is the unofficial keeper of the train timetables. When tourists inquire about the time of train arrivals or departures, they are told to "Ask Mr. Foster."
• Belgian innovator Georges Nagelmackers begins a new enterprise with the sole purpose of serving the traveler. Adding sleeping compartments to trains serving the European continent, he founded the company, Wagons-Lits, which literally means "sleeping cars." Nagelmackers goes on to create the Orient Express.