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What is inbound tourism explained and why does it matter?

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Inbound tourism is an important type of tourism . Many countries rely heavily on the demand from inbound tourists to fuel the development and operations of their tourism economy.

But what does it actually mean to be an inbound tourist? In this article I will explain what is meant by the term inbound tourism, provide definitions of inbound tourism and I will discuss the advantages and disadvantages of inbound tourism. Lastly, I will provide examples of destinations which have significantly sized inbound tourism markets.

What is inbound tourism?

Inbound tourism definitions, the importance of inbound tourism, uk inbound tourism, advantages of inbound tourism, disadvantages of inbound tourism, inbound tourism: conclusion, further reading on inbound tourism.

Inbound tourism is the act of someone travelling to a country other than that of where they live for the purpose of tourism.

Many countries around the world rely on inbound tourism.

Inbound tourism is often seasonal, meaning that many destinations will have evident peak, shoulder and low seasons. This is often dependant on weather conditions (for example sun or snow ) and school and public holidays.

The most widely utilised definition of tourism , proposed by the World Trade Organisation (WTO) and United States (UN) Nations Statistics Division (1994), prescribes that in order to qualify as a tourist one must travel and remain in a place outside of their usual residential environment for not more than one consecutive year for leisure, business or other purposes.

When considering inbound tourism, it therefore makes sense to simply add in the prerequisite of travelling to another country…

Based on this commonly accepted definition (although this is not without its limits- see this post for more details ), therefore, inbound tourism can be defined as:

‘The act of travelling to another country for not more than one consecutive year for leisure, business or other purposes.’

Inbound tourism is incredibly important in many destinations.

This is largely because of the economic benefits of tourism . Tourism can bring in a lot of money to a country through foreign exchange. This is particularly beneficial in countries where the currency is weaker than the currency of the tourists ‘ home countries.

It is for this reason that many countries will target their advertising towards certain nationalities. China produces one of the largest outbound tourism markets in the world and Chinese tourists tend to spend more on their holidays than any other nationality. Therefore many countries want to attract Chinese inbound tourists due to the economic value of this market.

Click here to see some interesting statistics demonstrating the growth in the Chinese outbound tourism market.

However, over dependance on inbound tourism can be risky business for destinations. There are many destinations, such as the Maldives , Spain and Greece who rely heavily on people travelling from other countries to their country for tourism.

The problem occurs when the travel industry is disrupted. This has never been more true than during the 2020 pandemic, when the impacts of Coronavirus on tourism were devastating.

Inbound tourism can also be negatively effected as a result of other factors, such as political unrest, natural disasters or economic instability.

In order to ensure sustainable tourism principles are adopted, destinations ideally need to diversify their tourism product to appeal to both the domestic tourism market and the inbound tourism market.

inbound tourism description

In The United Kingdom, we have a sizeable inbound tourism industry.

Here, inbound tourism is worth £127 billion per year to the UK economy. Inbound tourism creates jobs and boosts the economic throughout the country.

According to the UK tourist board, Visit Britain , inbound visitors to the UK spent £24.5 billion in 2017, and £21 billion of that was spent in England.

Inbound tourism attracts tourists from all over the world including Europe, the USA, Australia , China and Japan.

Inbound tourism markets around the world

Inbound tourism is a significant part of the tourism industry in many countries around the world.

inbound tourism description

The OECD have some useful data, demonstrating the most recent figures for inbound tourism around the world.

To take a look at the most recent OECD inbound tourism figures click here.

Here are a few tourism markets that have a high number of inbound tourists each year-

According to Statistica , Spain ranked second on the World Tourism Organisation’s list of most visited countries in the world, with its number of international visitors amounting to nearly 89.4 million in 2018.

Most travellers to Spain come from Europe, with the largest amount of tourists being British.

Spain is popular for its beach holidays, package holiday market and city breaks to Barcelona, Madrid and Valencia, amongst others.

The Maldives has been host to a fast-growing tourism industry in recent years. The archipelago attracts visitors all-year round, especially in hubs like Male which is home to an increasing number of modern hotels. 

Statistica reported in February 2019 that there were sharp increases in economic activity in The Maldives resulting from tourism. Figures showed a 16.8% increase in inbound tourism from the same time the previous year.

In total, 168,583 inbound tourists were recorded in The Maldives in 2019. China accounted for 17.8% and European markets accounted for a further 55% of inbound tourism.

The Maldives is renowned for its luxurious beach holidays.

Inbound tourism is one of the biggest economic activities in Thailand .

The National Economic and Social Development Council (NESDC) stated that in February 2019 the tourism industry accounted for 18.4% of GDP. Chinese visitors make up almost one third of all inbound tourists travelling to Thailand , with 10.99 million visits recorded in 2019.

There are many types of tourism found in Thailand and Thailand attracts a range of types of tourists, from backpackers to luxury travellers to business tourists .

Bali is another destination that is reliant on inbound tourism as a key economic contributor.

In 2018, the number of foreign tourists travelling to Bali was over 5 million. This was an increase of approximately 3.5 million from 2008. Figures taken from Statistica .

The inbound tourism market in Bali is dominated largely by Chinese and Australian tourists.

Bali is well-known for its beach escapes and cultural tourism .

There are many advantages of inbound tourism.

One advantage is that inbound tourism is not reliant on weekends in the way that domestic tourism is because people tend to your their annual leave when they take holidays overseas.

Having an inbound tourism market that attracts tourists from a range of destinations can help to minimise risk and diversify income. This way, if for some reason one country does not send many tourists (for example due to political or economic problems) then the host country still has visitors arriving from other countries.

On average, inbound tourists spend more money than domestic tourists. This money then helps boost the economy of the host country.

When we travel overseas we typically book further in advance than if we booked a domestic trip. This allows tourism organisations more time to plan.

Foreign income can really help to boost the economy of a country. Therefore foreign tourists are often welcomed. This especially applies to tourists who come from destinations where the currency is strong (e.g. Britain, USA, Europe, Australia).

Other posts that you might be interested in: – What is tourism? A definition of tourism – The history of tourism – The structure of the tourism industry – Stakeholders in tourism – Dark tourism explained – What is ABTA and how does it work? – The economic impacts of tourism

There are also some disadvantages of inbound tourism.

The main disadvantage of inbound tourism is that the destination is at the mercy of the transport network.

There are many cases of tourism industries being decimated because an airline has stopped operating a particular route.

Inbound tourism can also lead to culture clashes.

For example, British tourists who travel to Dubai are often not aware of Muslim cultural practices. As such, it is common for the local population to be offended by the tourist’s behaviour. In Dubai there are many signs up in the malls, for instance, that requests tourists cover up and dress appropriately .

In conclusion, it can be seen that inbound tourism is a highly effective way for a country to make money from tourism. Whilst this does take some careful management and planning, there are many countries throughout the world who have successful and thriving inbound tourism industries.

  • An Introduction to Tourism : a comprehensive and authoritative introduction to all facets of tourism including: the history of tourism; factors influencing the tourism industry; tourism in developing countries; sustainable tourism; forecasting future trends.
  • The Business of Tourism Management : an introduction to key aspects of tourism, and to the practice of managing a tourism business.
  • Tourism Management: An Introduction : gives its reader a strong understanding of the dimensions of tourism, the industries of which it is comprised, the issues that affect its success, and the management of its impact on destination economies, environments and communities.

Understanding Inbound Tourism: A Comprehensive Guide

Welcome to the world of travel and tourism, where the concept of inbound tourism plays a crucial role in shaping the industry. In this comprehensive guide, we will delve deep into the definition, significance, trends, and impact of inbound tourism on destinations around the globe. Whether you are a seasoned travel professional or an enthusiastic traveler, understanding inbound tourism is essential to grasp the dynamics of the travel industry.

What is Inbound Tourism?

Inbound tourism refers to the act of traveling to a destination by individuals who are not residents of that destination. In simpler terms, it involves tourists visiting a country or region that is different from their place of origin. This form of tourism encompasses a wide range of activities, including sightseeing, cultural exploration, leisure travel, business trips, and more.

One of the key characteristics of inbound tourism is that it involves foreign visitors who contribute to the economy of the destination they are visiting. These visitors bring in revenue through various means such as accommodation, dining, transportation, shopping, and other tourism-related activities. Inbound tourism is a significant driver of economic growth and development for many countries, making it a vital component of the global tourism industry.

The Significance of Inbound Tourism

Inbound tourism plays a pivotal role in the economic, social, and cultural development of destinations worldwide. Here are some key reasons why inbound tourism is significant:

  • Economic Impact: Inbound tourism generates revenue for the host destination through spending on accommodations, food, transportation, and other services. This revenue contributes to the local economy, creates jobs, and supports small businesses.
  • Cultural Exchange: Inbound tourism promotes cultural exchange and understanding between different countries and cultures. Tourists have the opportunity to immerse themselves in the local customs, traditions, and way of life, fostering mutual respect and appreciation.
  • Infrastructure Development: The influx of foreign tourists often leads to improvements in infrastructure such as airports, roads, hotels, and attractions. These developments benefit both tourists and local residents, enhancing the overall quality of life in the destination.
  • Promotion of Heritage and Natural Resources: Inbound tourism can help raise awareness about the importance of preserving heritage sites, natural landscapes, and wildlife. Tourists often visit destinations to experience their unique cultural and natural attractions, creating incentives for conservation efforts.

Trends in Inbound Tourism

The landscape of inbound tourism is constantly evolving, influenced by changing consumer preferences, technological advancements, global events, and economic factors. Here are some notable trends shaping the world of inbound tourism:

  • Emerging Destinations: As travelers seek new and authentic experiences, emerging destinations are gaining popularity among tourists. These destinations offer unique attractions, cultural heritage, and natural beauty, attracting visitors looking for off-the-beaten-path experiences.
  • Digital Transformation: The rise of digital platforms and online booking systems has transformed the way travelers research, plan, and book their trips. Online travel agencies, review websites, and social media influencers play a significant role in shaping travelers' decisions and preferences.
  • Sustainable Tourism: There is a growing emphasis on sustainable tourism practices that minimize the environmental impact of travel and support local communities. Eco-friendly accommodations, responsible tour operators, and conservation initiatives are becoming increasingly important for travelers seeking ethical travel experiences.
  • Personalized Experiences: Travelers are increasingly looking for personalized and customized experiences that cater to their interests and preferences. From tailored itineraries to unique accommodations, the demand for personalized travel experiences is driving innovation in the tourism industry.

The Impact of Inbound Tourism

The impact of inbound tourism extends beyond economic benefits, influencing various aspects of destination development and community well-being. Here are some key areas where inbound tourism has a significant impact:

  • Employment Opportunities: Inbound tourism creates job opportunities in sectors such as hospitality, transportation, retail, and tour operations. These jobs provide income for local residents and contribute to the overall prosperity of the destination.
  • Cultural Preservation: Tourism can help preserve and promote the cultural heritage of a destination by showcasing traditional crafts, performing arts, cuisine, and festivals. Cultural tourism initiatives support local artisans, performers, and cultural institutions, preserving traditions for future generations.
  • Infrastructure Development: The demand from tourists drives investments in infrastructure projects such as airports, roads, public transportation, and tourist facilities. These developments benefit both tourists and local residents, improving accessibility and quality of life.
  • Environmental Conservation: Sustainable tourism practices promote the protection of natural resources, wildlife habitats, and ecosystems. Responsible tourism initiatives aim to minimize the environmental footprint of travel activities and raise awareness about conservation efforts.

Inbound tourism is a dynamic and multifaceted aspect of the global travel industry, influencing economies, cultures, and communities around the world. By understanding the definition, significance, trends, and impact of inbound tourism, stakeholders in the travel industry can make informed decisions and contribute to sustainable tourism development. As the world continues to evolve, inbound tourism will play a vital role in shaping the future of travel and creating memorable experiences for travelers worldwide.

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What is Inbound and Outbound Tourism?

by Hammad Ur Rehman | Oct 25, 2021 | Travel Guide | 6 comments

What is Inbound and Outbound Tourism

Don’t you just love traveling around the world and exploring different places? Staying or visiting different countries or states for the sake of fun-filled holidays or work-related visits, are termed tourism. Tourism can be of two types, Inbound tourism or Outbound Tourism. Now the question arises that what is inbound and outbound tourism?

Well, the difference between the two is just a matter of perspective, that is, from where and how you see it. In simple words, if we look from the USA tourism perspective, the outbound tourism would be Robert going to Pakistan, while inbound tourism would be, Ali coming to the USA. Similarly, if we look from a Pakistani tourism perspective, the outbound tourism would be Ali going to the USA, and the inbound tourism would be, Robert coming to Pakistan.

Let’s move on and further elaborate on these two types of tourism.

What is Inbound tourism?

Inbound tourism is economically significant for a country. The tourist countries economically rely on the inbound visitors to drive their maintenance, growth, and development.

What exactly is inbound tourism? In easy words, you can call it incoming tourism. Let’s move further to see the definitions, meanings, significance, drawbacks, and examples of inbound tourism.

Definition of inbound tourism

When someone travels to a country, other than their own country, for tourism, this is called inbound tourism.

Inbound tourism is frequently influenced by certain factors like:

  • Season or Weather
  • Public holidays
  • School’s summer or winter vacations

According to WTO (World Trade Organization) and UN (United States Nation), inbound tourism can be defined as follows:

“ The act of traveling to another country for not more than one consecutive year for leisure, business, or other purposes .”

Importance of inbound tourism

Through foreign exchange, tourism may bring a lot of wealth into a country. This is especially advantageous in places where the local exchange rate is cheaper as compared to visitors’ native currency. Therefore, inbound tourism has high significance in many countries mainly because of the benefits it provides economically.

Mostly, countries target specific nations for advertising and promoting their inbound tourism. For instance, in today’s era, Chinese people tend to spend more on traveling every year as compared to any other nation, plus, the greatest outbound tourism markets are also produced by China. Therefore, Chinese inbound tourists are highly in demand by many tourist countries.

Drawbacks of inbound tourism

Depending entirely on income from the inbound tourism may cause problems. There are many places like Maldives, Goa, Fairy meadows, Greece, etc., whose economies rely on tourists from other countries.

The primary drawback of inbound tourism is that the place is at the hands of the transportation network. Many tourism industries have been ravaged as a result of airlines ceasing to operate a specific route. Cultural conflicts can also take place due to inbound tourism.

Some other disadvantages of inbound tourism include:

  • Disposal, contamination, and emissions are all on the rise.
  • Environmental and aquatic habitats are being physically harmed on a daily basis.
  • Inappropriate buildings are being built next to historical places and monuments.
  • Plenty of resources are being used up.
  • Building infrastructure and utilization of land.

Inbound Tourism examples

Now that we have a basic understanding of inbound tourism, let’s look at some practical examples.

If a person from one country travels to another country for tourism, then it’s an inbound tourist. For example, Ali is having a summer break from his university and wants to go abroad. So, he decides to go for tourism to France and enjoys his summer break there. This is an example of inbound tourism because Ali is coming from Pakistan to France for his vacation, and it is a tourist activity for him.

Likewise, Robert is also having a summer break from his school and wants to visit another country. So, he decides to go for tourism to Pakistan and enjoys his summer break there. This is also an example of inbound tourism because Robert is coming from America to Pakistan for his vacation, and it’s a tourist activity for him.

Generally, some of the countries that are renowned for inbound tourism include Maldives, Goa, Greece, etc.

What is outbound tourism?

Leaving your homeland for the sake of gaining international tourism experience has wide importance for many countries.

Let’s jump into detail and find out what is outbound tourism, how do we define it, the importance of outbound tourism has it got any disadvantages, and a few examples of outbound tourism.

Definition of outbound tourism

When a tourist travels or visits outside his or her country for the sake of tourism, but not for more than a year. This type of tourism is called outbound tourism.

The WTO (World Trade Organization) and UN (United States Nation) define outbound tourism as follows, “The act of leaving your home country internationally for not more than one consecutive year for leisure, business or other purposes.”

Throughout the years, the market for outbound tourism has grown significantly. However, different regions of the world have different growth rates of the tourism market, but the factors leading to progress are similar.

Importance of outbound tourism

Outbound tourism also has a positive impact on the economy of the county. It provides economic improvements in a variety of industries such as education, healthcare, business, and retail, etc.

For example, the more people travel to foreign nations, the more their demands for products and services increase. Thus, it is a source of economic growth and prosperity for many countries.

This direction of tourism helps in increasing employment opportunities, foreign currency earnings, and trade balance. Thus, it is a source of economic growth and prosperity for many countries.

Within a very short period, China has become the largest source of outbound tourists. The increasing number of Chinese outbound tourists opens the gate of opportunities for tour group operating companies, hotels, national government ad retailers.

Drawbacks of outbound tourism

Apart from the advantages, there are a few disadvantages of outbound tourism as well. These drawbacks include the following:

  • Many outbound tourists spend a huge amount of money on international chains like KFC fast-food chains, which reduces the positive effects of tourism as the tourist is using money that has been taken out of his residence.
  • ·Sometimes, a country relies far too much on its outbound tourism market. For example, some Caribbean island nations depend on money from tourists to fund their entire economy and government, but this is a risky move as the tourism market is highly inconsistent, and a small incident can lead to a large drop in tourism.

Outbound tourism examples

Let’s go through an example of outbound tourism from the USA point of view:

John is a US citizen and has a passport to the USA. He wants to go for tourism so he can explore the international culture and experience new things. So, he goes for a tour to Spain with his family and friends. This is an example of outbound tourism because John has applied for a tourist visa and is traveling outside his country, USA.

Another example of outbound tourism from Spain’s perspective:

Robert is a tourist from Spain who wants to go for tourism in the USA, but he has no American visa. So, he goes for a tour to the UK with his family and friends. This is an example of outbound tourism because Robert has applied for a tourist visa and is traveling outside his country, Spain.

What is domestic tourism?

Until here, we discussed international inbound and outbound tourism. However, tourism can also be domestic. Now you would want to ask what is domestic tourism ?

Well, it’s very simple. In domestic tourism, the tourist visits different regions, cities, or towns of the same country where he/she resides. In easy words, domestic tourism is vacations spent within the same country you live in.

Let me give you an example of domestic tourism, Sarah lives in California, USA, and for her vacations, she visits Pennsylvania, USA.

Domestic tourism is used by the government to eradicate poverty, economic development, production of employments, infrastructure upgrades, reduce the load from overcrowding. For instance, If the government of California promotes domestic tourism within its state, then more people would come to visit various places in California, which are less popular, and it would boost the economy of California by providing employment opportunities to the people.

Also Learn: Domestic vs International Travel

Final Thoughts

In general, tourism contributes significantly to international trade and the provision of job opportunities in many nations. I hope this article has provided you with a clear picture of what are the types of tourism and why are they significant. All types of tourism are important for the economic growth of any nation.

Check our article on: What is FIT And GIT in The Tourism

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What is Inbound Tourism? And How Our API Solution Boosts It

Inbound tourism, a key driver of economic growth and job creation, has become essential for many countries worldwide. In this article, we will explore what is inbound tourism and how embracing an API platform like Travel Trade Ready can help tourism organisations boost their visitor numbers and revenue.

What is Inbound Tourism?

Inbound tourism involves the various pursuits and events experienced by tourists visiting a foreign country for leisure, work, or other reasons. This includes an array of travel adventures, such as cultural excursions, thrilling expeditions, high-end retreats, and professional gatherings. As a crucial aspect of the worldwide tourism sector, inbound tourism substantially impacts a nation’s economy, job market, and infrastructure growth.

As global tourism sees the number of international visitors return to form, understanding the answer to “ what is inbound tourism ?” and identifying creative methods to improve it has emerged as a primary objective for tourism agencies across the globe.

The Importance of Inbound Tourism

The definition of inbound tourism is international traffic entering a country – so, for example, any non-British citizen entering the UK for the specific purpose of tourism.

Inbound tourism is a significant driver of economic growth, offering multiple benefits to countries and local communities. The influx of international visitors creates employment opportunities, supports local businesses, and generates tax revenue for governments. Additionally, inbound tourism promotes cultural exchange and global understanding, fostering positive relationships between countries and their citizens.

As the global travel market continues to expand, understanding what is inbound tourism and how to increase it is critical for tourism organisations aiming to thrive in this competitive industry.

What is Inbound Tourism? – Travel Trade Ready

The importance of an api platform in inbound tourism.

An API (Application Programming Interface) platform is a game-changer in the travel industry. By embracing an API platform, such as the solution offered by Travel Trade Ready , tourism organisations can streamline their operations, increase data efficiency, and ultimately attract more inbound tourists. Some of the key benefits of using an API platform in inbound tourism include:

Real-Time Availability and Pricing

API platforms offer real-time availability and pricing information, enabling travellers to make informed decisions and tourism organisations to optimise their revenue management strategies.

Enhanced Customer Experience

Via the API methodology of integrating various travel services and offering personalised recommendations, an API platform can significantly enhance the overall customer experience, which is crucial for attracting more inbound tourists and fostering repeat business.

The Benefits of Travel Trade Ready API for Tourism Organisations

Travel Trade Ready is an innovative API platform designed specifically for the travel industry. It offers a wide range of features and benefits that can help tourism organisations increase their inbound tourism numbers. Some of the key advantages of using Travel Trade Ready API include:

Global Distribution

One of the key benefits of the Travel Trade Ready API is its ability to connect tourism organisations with travel trade partners worldwide. By establishing these connections, organisations can expand their global reach and promote their offerings to a larger audience. This increased visibility is crucial in driving inbound tourism growth, as international travellers are more likely to book trips when they have easy access to information and booking options.

Travel Trade Ready API enables tourism organisations to tap into a global network of travel agents, tour operators, and online travel agencies, increasing their visibility and reach to potential customers worldwide.

Advanced Booking Management

Another important aspect of what is inbound tourism and how to increase it involves streamlining the booking process for international travellers. The Travel Trade Ready API simplifies this process by allowing travel trade partners to access real-time availability, pricing, and product information. This enables them to offer seamless booking experiences for their customers, making it easier for travellers to plan and book trips to your destination.

With Travel Trade Ready API, tourism organisations can manage bookings, cancellations, and modifications in real-time, ensuring efficient operations and a smooth customer experience.

Enhancing Your Online Presence

In today’s digital age, having a strong online presence is essential for attracting inbound tourism. The Travel Trade Ready API helps organisations achieve this by providing high-quality, up-to-date content for their online platforms. This includes detailed product descriptions, images, and videos, ensuring that your offerings are presented in the best possible light to potential visitors.

Comprehensive Inventory

Travel Trade Ready API provides access to an extensive inventory of travel products and services, including accommodation, transportation, tours, and activities. This allows tourism organisations to offer a diverse range of options to their customers, catering to various preferences and budgets, at a far lower cost than traditional networking.

Customisable Solutions

Travel Trade Ready provides dedicated customer support to assist with any technical issues or queries, ensuring a seamless experience for both tourism organisations and their customers.

In conclusion, understanding what is inbound tourism and implementing an API platform like Travel Trade Ready can significantly boost a tourism organisation’s performance and competitiveness in the global market. By simplifying the booking process, providing real-time availability and pricing information, and offering a wide travel service range, Travel Trade Ready can help attract more inbound tourists and drive economic growth in the tourism sector. Don’t miss out on the opportunity to leverage this innovative solution to take your tourism organisation to new heights – check out our demo website section today.

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Chapter 1. History and Overview

1.1 What is Tourism?

Before engaging in a study of tourism , let’s have a closer look at what this term means.

Definition of Tourism

There are a number of ways tourism can be defined, and for this reason, the United Nations World Tourism Organization (UNWTO) embarked on a project from 2005 to 2007 to create a common glossary of terms for tourism. It defines tourism as follows:

Tourism is a social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes. These people are called visitors (which may be either tourists or excursionists; residents or non-residents) and tourism has to do with their activities, some of which imply tourism expenditure (United Nations World Tourism Organization, 2008).

Using this definition, we can see that tourism is not just the movement of people for a number of purposes (whether business or pleasure), but the overall agglomeration of activities, services, and involved sectors that make up the unique tourist experience.

Tourism, Travel, and Hospitality: What are the Differences?

It is common to confuse the terms tourism , travel , and hospitality or to define them as the same thing. While tourism is the all-encompassing umbrella term for the activities and industry that create the tourist experience, the UNWTO (2020) defines travel as the activity of moving between different locations often for any purpose but more so for leisure and recreation (Hall & Page, 2006). On the other hand, hospitality can be defined as “the business of helping people to feel welcome and relaxed and to enjoy themselves” (Discover Hospitality, 2015, p. 3). Simply put, the hospitality industry is the combination of the accommodation and food and beverage groupings, collectively making up the largest segment of the industry (Go2HR, 2020). You’ll learn more about accommodations and F & B in Chapter 3 and Chapter 4 , respectively.

Definition of Tourist and Excursionist

Building on the definition of tourism, a commonly accepted description of a tourist is “someone who travels at least 80 km from his or her home for at least 24 hours, for business or leisure or other reasons” (LinkBC, 2008, p.8). The United Nations World Tourism Organization (1995) helps us break down this definition further by stating tourists can be:

  • Domestic (residents of a given country travelling only within that country)
  • Inbound (non-residents travelling in a given country)
  • Outbound (residents of one country travelling in another country)

Excursionists  on the other hand are considered same-day visitors (UNWTO, 2020). Sometimes referred to as “day trippers.” Understandably, not every visitor stays in a destination overnight. It is common for travellers to spend a few hours or less to do sightseeing, visit attractions, dine at a local restaurant, then leave at the end of the day.

The scope of tourism, therefore, is broad and encompasses a number of activities and sectors.

Spotlight On: United Nations World Tourism Organization (UNWTO)

UNWTO is the United Nations agency responsible “for the promotion of responsible, sustainable and universally accessible tourism” (UNWTO, 2014b). Its membership includes 159 countries and over 500 affiliates such as private companies, research and educational institutions, and non-governmental organizations. It promotes tourism as a way of developing communities while encouraging ethical behaviour to mitigate negative impacts. For more information, visit the UNWTO website .

NAICS: The North American Industry Classification System

Given the sheer size of the tourism industry, it can be helpful to break it down into broad industry groups using a common classification system. The North American Industry Classification System (NAICS) was jointly created by the Canadian, US, and Mexican governments to ensure common analysis across all three countries (British Columbia Ministry of Jobs, Tourism and Skills Training, 2013a). The tourism-related groupings created using NAICS are (in alphabetical order):

  • Accommodation
  • Food and beverage services (commonly known as “F & B”)
  • Recreation and entertainment
  • Transportation
  • Travel services

These industry groups (also commonly known as sectors) are based on the similarity of the “labour processes and inputs” used for each (Government of Canada, 2013). For instance, the types of employees and resources required to run an accommodation business whether it be a hotel, motel, or even a campground are quite similar. All these businesses need staff to check in guests, provide housekeeping, employ maintenance workers, and provide a place for people to sleep. As such, they can be grouped together under the heading of accommodation. The same is true of the other four groupings, and the rest of this text explores these industry groups, and other aspects of tourism, in more detail.

Two female front desk employees speak to a male guest in a hotel lobby.

It is typical for the entire tourist experience to involve more than one sector. The combination of sectors that supply and distribute the needed tourism products, services, and activities within the tourism system is called the Tourism Supply Chain. Often, these chains of sectors and activities are dependent upon each other’s delivery of products and services. Let’s look at a simple example below that describes the involved and sometimes overlapping sectoral chains in the tourism experience:

Tourism supply chain. Long description available.

Before we seek to understand the five tourism sectors in more detail, it’s important to have an overview of the history and impacts of tourism to date.

Long Descriptions

Figure 1.2 long description: Diagram showing the tourism supply chain. This includes the phases of travel and the sectors and activities involved during each phase.

There are three travel phases: pre-departure, during travel, and post-departure.

Pre-departure, tourists use the travel services and transportation sectors.

During travel, tourists use the travel services, accommodations, food and beverage, recreation and entertainment, and transportation sectors.

Post-departure, tourists use the transportation sector.

[Return to Figure 1.2]

Media Attributions

  • Front Desk by Staying LEVEL is licensed under a CC BY-NC 4.0 Licence .

Tourism according the the UNWTO is a social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes.

UN agency responsible for promoting responsible, sustainable, and universally accessible tourism worldwide.

Moving between different locations for leisure and recreation.

The accommodations and food and beverage industry groupings.

someone who travels at least 80 km from his or her home for at least 24 hours, for business or leisure or other reasons

A same-day visitor to a destination. Their trip typically ends on the same day when they leave the destination.

A way to group tourism activities based on similarities in business practices, primarily used for statistical analysis.

Introduction to Tourism and Hospitality in BC - 2nd Edition Copyright © 2015, 2020, 2021 by Morgan Westcott and Wendy Anderson, Eds is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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inbound tourism description

Inbound tourism

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inbound tourism description

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UNWTO defines inbound tourism as all incoming nonresident arrivals to a targeted destination . Evidentially, the literature applies and reflects this interpretation in discourses pertaining to international tourists. The foremost choice of travel mode among inbound tourists is by air, closely followed by road, and, peripherally, by water and rail . While their primary purposes are leisure , recreation , and holidaying, secondary reasons include health, religion, and visiting friends and relatives. Business, conference, and profession-related arrivals account for a further one eighth of global inbound traffic (UNWTO 2013 ). To maximize their use of time and money, inbound tourists prefer all-inclusive packages to multiple destinations. The innumerable options and preferences lend to two forms of inbound tourism: institutionalized (group/individual mass, psychocentric) and noninstitutionalized (informal, drifter, allocentric).

The importance of inbound tourism is acknowledged in the world’s...

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Cortes-Jimenez, I., and M. Pulina 2010 Inbound Tourism and Long-run Economic Growth. Current Issues in Tourism 13:61-74.

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Dwyer, L., and P. Forsyth 1993 Assessing the Benefits and Costs of Inbound Tourism. Annals of Tourism Research 20:751-768.

Sahli, M., and J. Nowak 2007 Does Inbound Tourism Benefit Developing Countries? A Trade Theoretic Approach. Journal of Travel Research 45:426-434.

UNWTO 2013 Tourism Highlights. Madrid: World Tourism Organization.

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A compilation of data on inbound tourism by country, including data on international tourist arrivals, international tourism receipts and international tourism exports.

COUNTRY PROFILE – INBOUND TOURISM

In order to better understand inbound tourism, the World Tourism Organization (UNWTO) has launched a dashboard on country profiles with data on inbound tourism. The dashboard includes data on:

  • International tourist arrivals
  • International tourism receipts
  • International tourism exports
  • Comparison of destinations
  • Ranking of indicators on inbound tourism

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The latest trends on international inbound travel.

REPORT August 31, 2022

inbound tourism description

International inbound travel is crucial for the U.S. economy. It generated $239 billion in travel exports in 2019 and, after taking into account U.S. spending abroad, a trade surplus of $53 billion. After many months of near-stagnation from many of our key markets, inbound travel is finally on a solid, yet bumpy, path of return.

Inbound travel’s pace of return picked up this summer and reached a pre-pandemic high of ‘only’ 35% below 2019 levels in July 2022. This is a significant improvement from -41% in May and declines of more than 50% earlier in the year.

Despite the general improvement since the full reopening of our borders in November 2021, the recovery has been uneven and a full recovery remains many months away.

To help explain what this means and see how different regional inbound markets performed throughout the pandemic and through July 2022, U.S. Travel has released new “international market profile decks."

The decks analyze inbound travel’s overall recovery , as well as that of four key regions:

  • Asia Pacific
  • Latin America & Caribbean
  • Canada & Mexico

Member login is required for access to the regional decks.

Read our latest blog post about international inbound's recovery here .

Member Price:

Non-Member Price: Become a member to access.

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What Is Inbound and Outbound Tourism With Example?

By Robert Palmer

Inbound and outbound tourism are two terms that are commonly used in the travel industry. Both of these terms refer to the movement of people from one place to another for the purpose of tourism. In this article, we will take a closer look at what inbound and outbound tourism means, along with examples.

What is Inbound Tourism?

Inbound tourism refers to when tourists visit a country that is not their own. In other words, it refers to the arrival of visitors from overseas into a country.

This type of tourism is also known as international tourism. The visitors could be traveling for various reasons such as leisure, business or visiting friends and family.

Inbound tourism can have a significant impact on a country’s economy by generating revenue through spending on accommodation, food, transport, and other tourist activities. For example, when tourists visit India to see the Taj Mahal or Singapore to experience its unique culture, they contribute significantly towards the local economy.

Examples of Inbound Tourism

  • A family from Germany visiting Disneyland in California
  • A group of backpackers from Australia traveling across Southeast Asia
  • A businessman from Japan attending a conference in New York City

What is Outbound Tourism?

Outbound tourism refers to when tourists leave their home country to visit another country. It’s also known as domestic tourism when people travel within their own country for leisure or business purposes.

Outbound tourism can have an impact on both the traveler’s home country and the destination they are visiting. When people travel abroad from their home countries, they spend money on flights, accommodation and other tourist activities which can contribute significantly towards the local economy of the visited country.

Examples of Outbound Tourism

  • A family from Canada taking a vacation to Hawaii
  • A group of friends from the United States traveling to Europe for a backpacking trip
  • A couple from Australia taking a romantic getaway to Bali, Indonesia

Inbound and outbound tourism are two important aspects of the travel industry. While inbound tourism refers to tourists visiting a country that is not their own, outbound tourism refers to people leaving their home country for leisure or business purposes.

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Tourism – Definition, Types & Forms, History & Importance of Tourism

Tourism is one of the world’s fastest-growing industries and a major foreign exchange and employment generation for many countries. It is one of the most remarkable economic and social phenomena.

The word ‘tour’ is derived from the Latin word tornus, meaning ‘a tool for making a circle.’ Tourism may be defined as the movement of people from their usual place of residence to another place ( with the intention to return) for a minimum period of twenty-four hours to a maximum of six months for the sole purpose of leisure and pleasure.

According to WTO (1993), ” Tourism encompasses the activities of persons traveling and staying in places outside their usual environment for not more than one consecutive year for leisure, business, and other purposes.”

The Rome conference on tourism in 1963 defined tourism as ‘ a visit to a country other than one’s own or where one usually resides and works. This definition, however, did not take into account domestic tourism, which has become a vital money-spinner and job generator for the hospitality industry.

The UNWTO defines tourists as ‘ people who travel to and stay in place 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.

According to the Tourism Society of Britain ,” tourism is the temporary short-period movement of people to destination outside the places where they usually live, work; and activities during their stay at these destinations.” This definition includes the movement of people for all purposes.

The development of technology and transportation infrastructure, such as jumbos jets, low-cost airlines, and more accessible airports, have made tourism affordable and convenient. There have been changes in lifestyle – for example, now retiree-age people sustain tourism around the year. The sale of tourism products on the internet, besides the aggressive marketing of the tour operators and travel agencies , has also contributed to the growth of tourism.

27 September is celebrated as world tourism every year. This date was chosen as on that day in 1970, the Statutes of UNWTO were adopted. The purpose of this day is to raise awareness of the role of tourism within the international community.

History of Travel and Tourism

Inbound tourism, outbound tourism, domestic tourism, forms of tourism, classification of tourism, nature of tourism, importance of tourism, economic impacts, social impacts, cultural impacts, environmental impact, industries related to tourism, tourism products.

Travel is as old as mankind on earth. At the beginning of his existence, man roamed about the planet’s surface in search of food, shelter, security, and better habitat. However, with time, such movements were transformed into wanderlust.

About five thousand years ago, climate changes, dwindling food and shelter conditions hostile invaders made the people leave their homes to seek refuge elsewhere like the Aryans left their homes in Central Asia due to climate changes. Perhaps, this leads to the development of commerce, trade, and industry.

Religion, education, and cultural movement began during the Hindu and Chinese civilizations. Christian missionaries, Buddhist monks, and others traveled far and wide carrying religious messages and returned with fantastic images and opinions about alien people.

For centuries movement of people continued to grow due to the efficiency of transport and the assistance and safety with which the people could travel. By the end of the 15th century, Italy had become Europe’s intellectual and cultural center. It represented the classical heritage both for the intelligentsia and the aristocracy.

During the 16th century, travel came to be considered an essential part of the education of every young Englishman. Travel thus became a means of self-development and education in its broadest sense. The educational travel was known as the ‘ Grand Tour .’

The industrial revolution brought about significant changes in the pattern and structure of British society. Thus, the economy of Britain was greatly responsible for the beginning of modern tourism. It also created a large and prosperous middle class. Because of remarkable improvement in transportation systems in the latter half of the 18th century and the first quarter of the 19th century, an increasing number of people began to travel for pleasure.

Travel was inspired initially by the need for survival (food, shelter, and security), the desire to expand trade, and the quest to conquer. As the transportation system improved, the curiosity for transforming the vast and virgin world into a close neighborhood created a new industry, i.e., Travel and Tourism .

However, the developments of rails, roads, steamships, automobiles, and airplanes helped to spread technology across the globe. Earlier travel was a privilege only for wealthy people, but with the industrial revolution, the scenario altogether changed. Transportation, as well as accommodation, became affordable to middle and working-class citizens.

Essentially, with the development of jet travel, communication, new technology, tourism, and travel became the world’s largest and fastest-growing industry.

Travel and tourism have recently emerged as a dominant economic force on the global scene, accounting for more than 12% of total world trade and growing at 8 percent annually.

Types of Tourism

Tourism has two types and many forms based on the purpose of visit and alternative forms of tourism. Tourism can be categorized as international and domestic tourism .

Tourism has two types and various forms. Based on the movement of people, tourism is categorized into two kinds. These are the following:

International Tourism

When people visit a foreign country, it is referred to as International Tourism . To travel to a foreign country, one needs a valid passport, visa, health documents, foreign exchange, etc.

International tourism is divided into two types; Inbound Tourism & Outbound Tourism.

This refers to tourists of outside origin entering a particular country. Traveling outside their host/native country to another country is called inbound tourism for the country where they are traveling. For example, when a tourist of Indian origin travels to Japan, it is  Inbound tourism for Japan because foreign tourists come to Japan.

This refers to tourists traveling from the country of their origin to another country. When tourists travel to a foreign region, it is outbound tourism for their own country because they are going outside their country. For example, when a tourist from India travels to Japan, it is outbound tourism for India and Inbound tourism for Japan.

The tourism activity of the people within their own country is known as domestic tourism . Traveling within the same country is easier because it does not require formal travel documents and tedious formalities like compulsory health checks and foreign exchange. A traveler generally does not face many language problems or currency exchange issues in domestic tourism.

Tourism has various forms based on the purpose of the visit and alternative forms. These are further divided into many types according to their nature. Forms of tourism are the following:

Some most basic forms of tourism are the following:

  • Adventure Tourism
  • Atomic Tourism
  • Bicycle Tours
  • Beach Tourism
  • Cultural Tourism
  • Industrial Tourism
  • Medical Tourism
  • Religious Tourism
  • Rural Tourism
  • Sex Tourism
  • Space Tourism
  • Sports Tourism
  • Sustainable Tourism
  • Virtual Tourism
  • War Tourism
  • Wildlife Tourism

Tourism can be classified into six distinct categories according to the purpose of travel. These are the following:

1) Recreational : Recreational or leisure tourism takes a person away from the humdrum of everyday life. In this case, people spend their leisure time in the hills, sea beaches, etc.

2) Cultural tourism satisfies cultural and intellectual curiosity and involves visits to ancient monuments, places of historical or religious importance, etc.

3) Sports/Adventure : Trips taken by people with a view to playing golf, skiing and hiking, fall within this category.

4) Health : Under this category, people travel for medical, treatment or visit places where there are curative possibilities, for example, hot springs, spa yoga, etc.

5) Convention Tourism : It is becoming an increasingly important component of travel. People travel within a country or overseas to attend conventions relating to their business, profession, or interest.

6) Incentive Tourism : Holiday trips are offered as incentives by major companies to dealers and salesmen who achieve high targets in sales. This is a new and expanding phenomenon in tourism, These are in lieu of cash incentives or gifts, Today incentive tourism is a 3 billion dollar business in the USA alone.

Tourism as a socio-economic phenomenon comprises the activities and experiences of tourists and visitors away from their home environment and are serviced by the travel and tourism industry and host destination. The sum total of this activity experience and services can be seen as a tourism product.

The tourism system can be described in terms of supply and demand. Tourism planning should strive for a balance between demands and supply. This requires an understanding not only of market characteristics and trends but also of the planning process to meet the market needs.

Often tourists from core generating markets are identified as the demand side; the supply side includes all facilities, programs, attractions, and land uses designed and managed for the visitors. These supply-side factors may be under the control of private enterprises, non-profit organizations, and the government. New and innovative forms of partnerships are also evolving to ensure the sustainable development and management of tourism-related resources.

The supply and demand side can be seen to be linked by flows of resources such as capital, labor, goods, and tourist expenditures into the destination, and flows of marketing, promotion, tourist artifacts, and experiences from the destination back into the tourist generating region.

In addition, some tourist expenditures may leak back into the visitors generating areas through repatriation of profits of foreign tourism investors and payment for improved goods and services provided to tourists at the destination. Transportation provides an important linkage both to and from the destination.

For planning purposes, the major components that comprise the supply side are:

  • Various modes of transportation and other tourism-related infrastructure.
  • Tourist information.
  • Marketing and promotion.
  • The community of communities within the visitor’s destination area.
  • The political and institutional frameworks for enabling tourism.

The tourism system is both dynamic and complex due to many factors linked to it and because of the existence of many sectors contributing to its success. These factors and sectors are linked to the provision of the tourist experience and the generation of tourism revenue and markets .

The dynamic nature of the tourism system makes it imperative to scan the external and internal environment of the destinations on a regular basis so as to make changes when necessary to ensure a healthy and viable tourism industry.

Thus, it is now an accepted fact that tourism development can no longer work in isolation of the environment and the local communities, nor can it ignore the social and cultural consequences of tourism.

Tourism and hospitality , which are inextricably linked to each other, are among the major revenue-earning enterprises in the world. They happen to be among the top employers too. There has been an upmarket trend in tourism over the last few decades as travel has become quite common. People travel for business, vacation, pleasure, adventure, or even medical treatments.

Tourism constitutes an important industry today. It has opened up new vistas for the play of economic emancipation. It provides a very potent contribution by strengthening and developing the financial resources of a country. Moreover, it is a process in which mutual material and mental benefits occur. Furthermore,

  • Tourism fetches foreign exchange in the form of invisible exports, which results in the manifold progress of the nation.
  • Tourism generates jobs. These employments are the main contribution of tourism to generating national income. But one should remember that employment in the tourism industry is often seasonal.
  • Tourism often leads to the commercialization of art forms and especially handicrafts. Art items with cultural or religious meaning are sought by tourists as souvenirs. As more and more tourists visit a destination, souvenir production has increased, often leading to mass production. This production also generates income.

Importance of Tourism

With several business-related activities associated with tourism, the industry has a tremendous potential to generate employment as well as earn foreign exchange. Many countries, such as Mauritius, Malaysia, Singapore, Fiji, and the Caribbean, whose economies are primarily driven by tourism. Tourism can contribute to the economic growth of a country in the followings ways:

Employment Generation

It creates a large number of jobs among direct services providers (such as hotels , restaurants, travel agencies , tour operators , guide and tour escorts, etc.) and among indirect services providers (such as suppliers to the hotels and restaurants, supplementary accommodation, etc.)

Infrastructure Development

Tourism spurs infrastructure development. In order to become an important commercial or pleasure destination, any location would require all the necessary infrastructure, like good connectivity via rail, road, and air transport , adequate accommodation, restaurants, a well-developed telecommunication network, and, medical facilities, among others.

Foreign Exchange

The people who travel to other countries spend a large amount of money on accommodation, transportation, sightseeing, shopping, etc. Thus, an inbound tourist is an important source of foreign exchange for any country.

The World Travel and Tourism Council (WTTC) predict in 1997 that the twenty-first-century economy would be dominated by three industries: telecommunications, information technology, and tourism. The travel and tourism industry has grown by 500 percent in the last 25 years.

Now withstanding this bright outlook and prospects, the tourism and hospitality industries are very vulnerable to the fluctuations of national economies and happenings in the world, especially terrorist attacks that have at times dealt severe blows to business.

In recent years, there have been a few setbacks in tourism, such as the terrorist siege of the Taj and Oberoi in Mumbai, India (26 November 2008); the attack on the World Trade Centre in the United States of America (11 September 2001); bombing in a hotel on the Indonesian island of Bali (12 October 2002); tsunami in Southeast Asia and South Asia on 26 December 2004, in which thousands of the lives where lost and consequently tourism was hit. Nonetheless, the sector is now getting back to business.

Impacts of Tourism

Tourism is a multi-dimensional activity. The scope of tourism activities is so wide and varied that it cannot be restricted to any particular field of activity. Tourism has ramifications in almost all sectors and is influenced by the performance of each of these sectors directly or indirectly. Tourism in any country can be an apt reflection of the nation’s economic and social endowment apart from its natural wealth.

Tourism has vast potential to bring about changes in the country’s economic, environmental, societal, and cultural edifice. Tourism has two basics: the supply of facilities and the demand for participation. The twin market forces of supply and demand interact to produce tourism patterns. These patterns are associated with economic, social, cultural, environmental, and ecological impacts.

Impact of Tourism

Establishing or developing a tourism industry involves expenditure, gains, costs, and benefits. If these impacts are considered from the outset of planning, strengths and opportunities can be maximized while weaknesses and threats can be minimized.

Each destination will be different in terms of tourism characteristics . The cost and benefits of tourism will vary in each destination and can change over time, depending on tourism and other activities in a destination’s local and regional context.

Tourism activities impact the economy of the country as well as the local economy of the destination.

Economics Benefits

  • Tourism generates local employment, directly in the tourism sector and in the support and resource management sectors.
  • Tourism stimulates profitable domestic industries, hotels and other lodging facilities, restaurants and food services, transportation systems, handicrafts, and guide services.
  • Tourism generates foreign exchange for the country and injects capital and new money into the local economy.
  • Tourism helps to diversify the local economy.
  • Improved tourism infrastructure.
  • Increase tax revenues from tourism.

Economic Costs

  • Higher demand created by tourism activity may increase the price of land, housing, and a range of commodities necessary for daily life.
  • Demands for health services provision and police service increase during the tourist seasons at the expense of the local tax base.

Tourism also affects the society of the destination in good as well as bad ways. It benefits and costs the local communities.

Social Benefits

  • The quality of a community can be enhanced by economic diversification through tourism.
  • Recreational and cultural facilities created for tourism can be used by local communities as well as domestic/international visitors.
  • Public space may be developed and enhanced through tourism activity.
  • Tourism Enhances the local community’s esteem and provides an opportunity for greater understanding and communication among people of diverse backgrounds.

Social Costs

  • Rapid tourism growth can result in the inability of local amenities and institutions to meet service demands.
  • Without proper planning and management, litter, vandalism, and crime often accompany tourism development.
  • Tourism can bring overcrowding and traffic congestion.
  • Visitors bring with them material wealth and apparent freedom. The youths of the host community are particularly susceptible to the economic expectations these tourists bring which can result in complete disruption of traditional community ways of life.
  • The community structure may change, e.g. community bonds, demographics, and institutions.
  • The authenticity of the social and cultural environment can be changed to meet tourism demands.

Tourism activities also affect the culture of the host country. There are many positive and negative cultural impacts of tourism.

Cultural Benefits

  • Tourism can enhance local cultural awareness.
  • Tourism can generate revenue to help pay for the preservation of archaeological sites, historic buildings, and districts.
  • Despite criticism about the alteration of cultures to unacceptable levels, the sharing of cultural knowledge and experience can be beneficial for hosts and guests of tourism destinations and can result in the revival of local traditions and crafts.

Cultural Costs

  • Youth in the community begin to emulate the speech and attire of tourists.
  • Historic sites can be damaged through tourism development and pressures.
  • There can be long-term damage to cultural traditions and the erosion of cultural values, resulting in cultural change beyond a level acceptable to the host destination.

Tourism impacts the environment in positive as well as negative ways. These impacts are following below.

Environmental Benefits

  • Parks and nature preserves may be created and ecological preservation supported as a necessity for nature-based tourism.
  • Improved waste management can be achieved.
  • Increased awareness and concern for the environment can result from nature-based tourism activities and development.

Environmental Costs

  • A negative change in the physical integrity of the area.
  • Rapid development, over-development, and overcrowding can forever change the physical environment and ecosystems of an area.
  • Degradation of parks and preserves.

Over the years, tourism has become a popular global activity. Depending upon the nature and purpose of their travel, tourists, need and demand certain facilities and services. This has given rise to a wide range of commercial activities that have acquired industry proportions. Thus travel and tourism nowadays represent a broad range of related industries.

Hotels are a commercial establishment that provides accommodation, meals, and other guest services. In the travel and tourism industry, the hotel industry plays a very significant role, as all tourists need a place to stay at their destinations, and require many more services and facilities to suit their specific needs and tastes.

Restaurants

Restaurants are retail establishments that serve prepared food and beverages to customers. In the travel and tourism industry, restaurants and other food and beverage outlets are very important as tourists like to experiment with the local cuisines of the places they are visiting.

Retail and Shopping

The retail industry is very important as tourists shop for their day-to-day necessities as well as look for mementos and souvenirs. In recent years, some cities in the world have been promoted as shopping destinations to attract people with a penchant for shopping by offering various products, such as garments, electronic goods, jewelry, and antiques. New York, Paris, London, and Milan in Italy are famous as fashion havens of the world.

Transportation

It is the movement of people and goods from one place to another. A well-developed transport industry, as well as infrastructure, is integral to the success of any travel and tourism enterprise.

Travel Agencies

A travel agency is a retailing business that sells travel-related products and services, particularly package tours, to customers on the behalf of suppliers such as airlines, car rentals, cruise liners, hotels, railways, and sightseeing.

Travel agencies play a very important role as they plan out the itinerary of their clients and make the necessary arrangements for their travel, stay, and sightseeing, besides facilitating their passport, visa, etc.

Tour Operators

A tour operator assembles the various elements of a tour. It typically combines tour and travel components to create a holiday. Tour operators play an important role in the travel and tourism industry.

Tourist Destinations

A tourist attraction is a place of interest for tourists, typically for its inherent or exhibited cultural value, historical significance, nature or building beauty or amusement opportunities. These are the basic fundamentals of the tourism industry.

Cultural Industries

Cultural or creative industries are responsible for the creation, production, and distribution of goods and services that are cultural in nature and usually protected by intellectual property rights. As tourists like to visit places of cultural significance and soak in the culture of the area, the cultural industry is very important to travel and tourism.

Leisure, Recreation, and Sport

Leisure or free time is a period of time spent out of work and essential domestic activity. Recreation or fun is spending time in a manner designed for therapeutic refreshment of the body or mind. While leisure is more like a form of entertainment or rest, recreation requires active participation in a refreshing and diverting manner.

As people in the world’s wealthier regions lead an increasingly sedentary lifestyle, the need for recreation has increased. These play a significant role in the travel and tourism sector.

A tourism/tourist product can be defined as the sum of the physical and psychological satisfaction it provides to tourists, during their ‘traveling and sojourn’ en route at the destinations.

Since the travel and tourism industry is an agglomeration of too many sectors that promote travel-related services. These sectors are referred to as travel vendors and their services and goods are called ‘travel products’. A tourism product includes five main components such as physical plant, services, hospitality, freedom of choice, and a sense of involvement.

Thus, whatever the natural and man-made resources and services brought about the consumption of tourists are called tourism products .

Charecterstatics Of Tourism Products

By now, you must have understood what a tourism product is. Now let us look at some of its characteristics:-

1) Intangible : Tourism is an intangible product means tourism is such a kind of product that can not be touched or seen and there is no transfer of ownership, But the facilities are available for a specified time and for a specified use. For e.g. a room in the hotel is available for a specified time.

2) Psychological : The main motive to purchase a tourism products is to satisfy the psychological need after using the product, by getting an experience while interacting with a new environment. And experiences also motivate others to purchase that product.

3) Highly Perishable : Tourism product is highly perishable in nature means one can not store the product for a long time. Production and consumption take place while a tourist is available. If the product remains unused, the chances are lost i.e. if tourists do not purchase it.

A travel agent or tour operator who sells a tourism product cannot store it. Production can only take place if the customer is actually present. And once consumption begins, it cannot be stopped, interrupted, or modified. If the product remains unused, the chances are lost i.e. if tourists do not visit a particular place, the opportunity at that time is lost. It is due to tourism reason that heavy discount is offered by hotels and transport-generating organizations during the offseason.

4) Composite Product : Tourist product is a combination of different products. It has not a single entity in itself. In the experience of a visit to a particular place, various service providers contribute like transportation The tourist product cannot be provided by a single enterprise, unlike a manufactured product.

The tourist product covers the complete experience of a visit to a particular place. And many providers contribute to the tourism experience. For instance, the airline supplies seats, a hotel provides rooms and restaurants, travel agents make bookings for stay and sightseeing, etc.

5) Unstable Demand : Tourism demand is influenced by seasonal, economic political, and other factors. There are certain times of the year that see greater demand than others. At these times there is a greater strain on services like hotel bookings, employment, the transport system, etc.

Herrmann Global

5 Questions Destinations Should Answer to Attract Inbound International Tourism

inbound tourism description

Feb 22 2022 By Santiago Rodriguez, PhD

The challenge remains:, how to achieve and measure international market access success, year-over-year, in a sustainable way, 5 questions as a process to attract international inbound tourism.

Since this article is conceived as A GUIDE TO TOOLS AND EXAMPLES TO ENHANCE INTERNATIONAL MARKET ACCESS, the order of the questions suggest the order in which steps should be taken to attract the desired type of international inbound tourism.

However, the discussion for each question could be also read independently, as a stand alone post in itself, which in any case will provide you valuable knowledge to reach your destination’s objectives.

In the following sections we answer each question and we provide you with examples and tools to tackle all of the questions by yourself.

However, if you want to learn about an integrated solution to implement the whole process, check the Hermann Global Insights approach.

Let’s dive into the details.

When people, the media, or politicians talk about a destination trying to attract inbound international tourism, they usually think about the importance of building some sort of infrastructure as an attractor, or about the need for a budget to start with marketing campaigns right away.

This phenomenon in tourism is known as the  “Cargo cult” . It explains how destinations tend to imitate the most superficial aspects of other examples, that they deem as “successful”, ignoring the underlying process that actually led to such results.

And while attractions and marketing are part of the process, attracting the desired type of international inbound tourism starts with, and requires, other capabilities.

This is especially true for the case of attracting international visitors, for which it is necessary to involve different actors from the local to the global level. Whereas for potential visitors, who may not be familiar with the destination context, simply seeing an advertisement will not be enough to make them decide to visit a destination abroad.

Inbound international tourist on train

BARRIERS & PROMISES

​ Scientific research about  “Determinants for tourist destinations’ international markets access” , drawing upon 48 years of data and performed in source market and destination, shows that the 5 top biggest barriers have more to do with internal capacities of the destination, than with the availability of great attractions or marketing budget.

The top 5 biggest barriers for international tourism market access are the lack of capacity to:

Perform collective initiatives;

Define target markets;

Implement and sustain efficient processes;

Innovate for and adapt to the target market;

Have qualified personnel for internationalization.

In order to overcome these barriers, we must first keep in mind that a destination is not only a territory with attractions on it.

On the contrary, destinations are mostly characterized by the presence of different stakeholders that interact in that territory, typically: host communities, service providers, and governments. These stakeholders are the ones who imprint the tone or the quality of the experience on the visitors.

But overall, it is key to remember that such stakeholders aim at developing their destination not only for the sake of receiving tourists. The underlying expectation is the promise of tourism development to SERVE AS A MEANS to improve the host community’s living standards at the destination in a sustainable way.

The value of these expectations is globally recognized and formalized through the  United Nations Sustainable Development Goals , to which tourism has the potential to contribute greatly.

OPPORTUNITIES

At the other end of the destination-visitors relationship, we have the source markets, which have shown an unstoppable desire to travel abroad.

According to the  World Tourism Organization’s Global Tourism Dashboard , international arrivals continuously increased over 19 years, from 673 million in 2000 to 1.4 billion in 2019.

And even in the middle of the pandemic, 2020 reported 440 million international arrivals, with a promising recovery perspective in the near future, thanks to the roll out of different vaccines.

So, considering how the world is connected today, with all sorts of transportation and online communication means, it seems like there has always been and will still be, enough room for any destination to attract the desired type of international inbound tourism.

CHALLENGES ​

Despite the great opportunities for each destination, there are large discrepancies between some “dying of success” due to over-tourism, while, in most cases, other destinations have no idea how and what type of international tourism starts or stops arriving.

But, in any case, this lack of knowledge has negative repercussions in the host communities, since the positive economic impacts that tourism could bring, if any, are diminished in the mid-term by the negative social and environmental implications.

Thus, the main challenge remains: HOW TO ACHIEVE AND MEASURE INTERNATIONAL MARKET ACCESS SUCCESS, YEAR-OVER-YEAR, IN A SUSTAINABLE WAY?

Nowadays, we are not only facing the challenge of attracting the desired number of visitors. The current challenge is, overall, attracting the type of responsible tourism that resonates with the destinations’ needs to improve the host community’s living conditions in a sustainable way.

Therefore, we discuss the 5 QUESTIONS DESTINATIONS SHOULD ANSWER TO ATTRACT INTERNATIONAL INBOUND TOURISM.

Question 1. WHAT IS THE BEST INTERNATIONAL INBOUND MARKET FOR YOUR DESTINATION IN TERMS OF RESPONSIBLE TRAVEL? ↓

Brief answer:, the one that suits your local development goals..

As previously mentioned, destinations do not aim at attracting tourism just for the sake of receiving visitors. The underlying motivation is the promise of tourism to act as a means to improve the standard of living of host communities and its potential contribution to sustainable development.

Fortunately, given the high number of international travelers, there is plenty of room for everyone to get their share of the pie.

So, currently it is not a matter of “if” there will be enough market for a given destination. The current matter is “what market” a destination wants to attract.

In principle, a destination should target markets that value responsible travel and visitors who are respectful of local values, people and resources.

Therefore, instead of just saying “we want to receive visitors from the USA, Germany or the UK”, destinations should start by determining the profile of visitors they want to receive.

Sustainable travel sign for sustainable tourism

HOW TO PROFILE YOUR DESIRED TYPE OF VISITORS

For example, destinations could decide that the desired visitors should be:

Able to spend between 7 to 12 days available for their visit (based on the average days that the experiences offered at the destination can take);

An experienced traveler who values authenticity and diversity;

Looking for non-massive experiences in non-traditional destinations;

Interested in personalized and flexible tour packages;

Cognizant of context, sustainability, and social responsibility;

In an age range between 30 to 60 years old;

A traveler with a university or professional education;

Able to speak English or Spanish.

These characteristics are only examples, and they can change depending on the case.

The central notion here is that the described profile resonates with the type of tourism that the destination wants to develop locally and promote internationally.

Doing so is fundamental to perform efficient strategic marketing efforts, allowing the offer to reach the desired audience with the right message.

HOW TO LEARN WHAT YOUR DESIRED VISITORS THINK OF YOU ​

Once a destination knows the desired type of visitor to attract, the next step is to find out where they are, what communication channels they use, what type of things they talk about, and most importantly, how they feel about your destination.

One approach to discover all of that is by performing traditional market research. The problem, however, is that this method usually takes several months to present the data, and the results must be continuously updated, which costs a lot of money, not to mention the additional costs if you want to research in different countries of origin.

A better alternative is to use modern online social listening tools, which only need to be set up once, and they provide 24-hour, almost real-time data about your target markets’ level of awareness of your destination, their sentiment towards you, key topics, preferred information outlets, and much, much more.

Screenshot of market insights on Herrmann Global Insights dashboard

You can easily share these results online with anyone inside or outside your organization to respond and react in real time, or use them as fresh market intelligence for planning and coordinated product development or strategic marketing actions.

If you want to learn more, you can check  “ What is social listening & why is it important ?” , published by our recommended tool TalkWalker. However, there are several other options that you can easily find by performing a simple Google search with the words “social listening tools”.

On the other hand, if you want Social Listening capabilities already integrated into a complete solution to attract the desired type of international inbound tourism, learn how Hermann Global Insights does it with you.

Question 2. WHY WOULD VISITORS CHOOSE YOUR DESTINATION OVER OTHERS? ↓

Because they are aware that you provide a valuable experience for them..

Even if you have identified where your desired international visitors are, and even when they might be willing to experience what your destination offers, we currently live in a digital world where we have “too much” information and travel influence has become cluttered and often complex.

So, the challenge here is how to let your desired visitors know you are the perfect match for them. As the saying goes, “it is not only necessary to be good , it is also necessary to look good .”

In relation to “ being good ”, destinations need to work internally, integrating the required stakeholders to adjust their offer—to the greatest possible extent—to what the desired target visitor expects.

This process implies an effort of balance between what the destination envisions as the type of desired tourism to develop, and what the desired visitors expect in terms of activities at the destination.

On the other, in relation to “ looking good ”, here is when quality content and strategic marketing have to do their magic.

In that regard, it all comes down to communication using the right tone and message, via the right channels, to let your target markets know that you offer something relevant for them, while you also care about responsible tourism and its contribution to sustainable development.

If you want to learn more about how tourism and your destination can contribute to global sustainable development, while adding value to your offer and for your international target markets, check  “ Tourism for SDGs ”  (Sustainable Development Goals) .

Map with pins at tourism marketing agency

HOW TO REACH YOUR TARGET MARKETS WITH YOUR MESSAGE?

​ A destination does not necessarily have to go through any kind of certification process to stand out, although it is a plus, nor does it have to carry out complex and expensive marketing strategies.

It is simply a matter of being authentic through concrete and quality pieces of content, aiming at providing value and satisfying the need for information of your target international inbound visitors.

We refer to the creation of content pieces with different levels of depth, such as: social media posts, article-like blog posts about your key attractions or experiences, or multi-day itineraries with detailed and practical suggestions on how to visit your destination.

However, creating and amplifying quality content is a task that many destinations overlook. As a result, too often destinations run superficial marketing campaigns, probably with great graphic design, but without a specific target audience in mind, nor any deeper valuable content behind it.

HOW TO CREATE AND DISTRIBUTE RELEVANT CONTENT

​ To start creating, collecting, amplifying, and reusing your online content, we suggest the quality, free website tool Wix.com . This tool will let you build your own professional looking destination blog in a matter of minutes, with integrated social networking functionalities and other content distribution tools, without the need for any coding.

Another option is also to reach out to professional content creators or bloggers, with established travel related platforms. A great example of this is   Untraveled.com , a platform devoted to helping lesser-known destinations reach their international tourism audiences, while highlighting the importance of sustainable development through responsible tourism in uncrowded destinations. ​

Finally, if you are looking for the complete solution, check how Hermann Global Insights integrates your local development goals with online strategic content creation and global marketing strategies, to help your destination attract the desired type of international inbound tourism.

Question 3. HOW DO VISITORS PLAN AND BOOK TRIPS TO YOUR DESTINATION? ↓

Means to book services and activities in your destination have to be in place..

Knowing your audience (discussed in Question 1) and preparing great content (discussed in Question 2) are key previous steps.

However, if in the end no one is able to make a reservation to live the experience you have inspired in your audience, then it is like you have thrown your efforts into the void.

A common mistake by DMOs and tourism government organizations is to think that running marketing campaigns and doing brand positioning is the end of their role.

They take the attitude that “the private sector must do its job to attract customers,” or expect inbound tourists to arrive spontaneously after short-sighted “spray and pray” marketing approaches.

However, the current travel information and reservation landscape is so complex and diversified that leaving everything to chance is not a good idea. Especially if a destination wants to attract a specific type of international visitors and measure results.

Computer, phone, and coffee on table demonstrating search habits for destination marketing

WHAT IS THE DIFFERENCE BETWEEN “BEING AWARE” AND “BOOKING” A DESTINATION?

First, people become aware of a destination , for example, by reading blog posts, comments on social media, or on websites about attractions and activities, as discussed in the previous Question 2. This is still a more general information level.

While for  booking a destination  people need more  detailed  information, such as itineraries, or concrete conditions and prices offered by online reservation systems and physical travel agencies to book either specific services (at least a flight, hotel, car, etc.) and activities, or a complete tour.

Thus, before running online or printed marketing campaigns, or renting a spot in the next international top trade show, it is important to make sure the destination and its partners provide the means for the desired type of visitors to plan and book their trip.

And, to make effective use of global distribution channels and booking platforms, we need to understand how the type of visitors we want plan and book their trips. This is done by identifying what kind of language or “keywords” they type in when they search for services.

​ HOW TO UNDERSTAND BOOKING BEHAVIOR THROUGH KEYWORDS

There are several solutions online to perform keyword research. They even offer different types of add-ons that might be of interest to you, such as social media integration and more. If you want to learn more, just search for “compare keyword research tools” and you will find many options.

However, Google itself offers a couple of great free solutions. The first is   Google trends , which works better when you already have specific keywords in mind and you only want to know how trendy they are in specific source markets.

Google Keyword Planner (part of   Google Ads ) offers a most useful approach to start from scratch. Only by entering a couple of reference keywords related to your destination, for example “travel to Arizona”, Keyword Planner will provide you with a long list of contextually related keywords that are currently being used in the source market(s) of your choice, including their level of use per month. ​

HOW TO PROVIDE BOOKING MEANS

Once a destination has a better understanding of how its desired type of visitors look for services, it is time to make sure the destination is actually bookable. There are two steps involved at this stage.

First , based on the previous keyword research, the destination can create / improve its content creation, so it can be found when people look for information.

And second , wherever that content is published, either online or printed, it must include links or QR codes to distribution channels with booking capabilities containing the destination’s offer.

Or, if for some reason booking capabilities are not yet available for the destination offering, the published content should at least link to detailed itineraries that provide the potential visitor with enough certainty to visit the destination on their own.

Fortunately, nowadays there are many booking solutions for all sizes of companies and organizations offering tours and activities. Most likely, several tour operators and hotels in any destination already use some type of online booking solution.

If that is not the case, or if you just need to learn more about booking systems for your destination, perform a Google search using the terms “booking system for tours and activities” and you will find many options.

One great option is   Bokun.io . This company is part of Trip Advisor, which is already a great backup. The tool allows tour operators to structure and centralize the information of their products, like itineraries, prices, policies, etc., and distribute it among tens of Online Travel Agencies, including the biggest ones like Expedia, Viator, or Get your Guide from one only platform. Bokun also allows users to embed their offer into any website, and even take offline or phone reservations, among many other powerful features, with an easy-to-use interface and a great support service. ​

However, if you are looking for a complete solution to attract the desired type of international inbound tourism, check how Hermann Global Insights can help you integrate booking and distribution strategies that support your local development goals.

Question 4. WHAT MARKETING BUDGET SHOULD YOU ALLOCATE TO BE COMPETITIVE INTERNATIONALLY? ↓

Less than what you expect, but no budget will suffice without the right capabilities..

Fortunately, given the widely available communication technologies and the current global connectivity, it is not necessary anymore to have a large marketing budget to attract international inbound tourism.

However, DMOs and tourism-related government agencies usually complain about limited budgets for tourism marketing at an international level.

On the other hand, there is also the case of well-funded organizations who launch visually beautiful marketing campaigns, disconnected from the local reality, without a concrete offer behind, and with no booking options in place.

In any case, as mentioned in the introduction, research drawing upon 48 years of data, performed in source market and destination, has demonstrated that among  46 identified barriers for international tourism market access , those related to the lack of budget for promotion do not even make it to the top 10 most critical barriers, falling to positions 20 and 25.

Actually, the top three most critical barriers for international tourism market access refer to a lack of capacity to : 1. Perform collective initiatives, 2. Define target markets, and 3. Implement and sustain efficient processes.

Such scientific findings are also supported by experience. Anyone who has worked in the tourism sector has seen first hand that these three factors are fundamental to attract the desired type of international inbound tourism.

Therefore, the answer to the question “What marketing budget should you allocate to be competitive internationally?” is: no marketing budget will suffice when the required capabilities are not available at the destination.

Megaphone to demonstrate International market access

HOW TO ATTRACT INTERNATIONAL INBOUND MARKETS IN A BUDGET-EFFICIENT WAY

Here is when key players at the destination should make the difference. We refer to the so-called “Destination orchestrators,” a role usually performed by different forms in DMOs, government organizations, key enterprises, or even community initiatives.

Good orchestrators use their networks and their capacity to reach agreements in order to facilitate coordinated actions that attract the desired type of inbound international tourism.

When skilled enough, destination orchestrators can bring together the visions of the different stakeholders into a more strategic marketing approach. One that reflects the reality of the local offer and connects with booking means in a compelling form.

To understand how to improve a destination’s capacity for collective actions, you might read about the so-called  “ Social Capital at the tourism destination level ” . This theory explains how resources are mobilized for common purposes and the paper presents a structure to reflect about your destination’s specific case.

Another way to acquire these skills is to enlist the external support of specialized tourism marketing agencies. Look for agencies that place the emphasis on first understanding the reality of the destination, and only then conceiving and carrying out efficient international marketing campaigns.

One example is the  Multilingual Digital Marketing campaign performed by Park City, in Utah, USA, with the support of Herrmann Global . In this case study, with a very affordable budget, an increase of 400% international market reach, year over year, was achieved for the winter season.

Finally, if you need an integrated solution to design and perform affordable international marketing strategies that support your local development goals, check how Hermann Global Insights can help you attract the desired type of international inbound tourism.

Question 5. WHO ARRIVES AT YOUR DESTINATION AND WHAT IS YOUR ROI? ↓

Measuring impact is the missing piece for destinations to demonstrate value..

The idea is simple: If a destination can track how many visitors from a given target market arrive and how much they spend during the visit, it is easy to calculate its ROI (Return On Investment).

But, as easy as it sounds, given the complexity of the international tourism distribution landscape, making the connection between the efforts to attract international inbound tourism and results, in terms of ROI, has been a challenging endeavor for the global tourism community for decades.

Nevertheless, reporting such results is fundamental for destination managers (or “orchestrators”) to show decision makers, regulators, and host communities how tourism returns more than what was invested and why efforts must be sustained.

Currently, the typical type of results that destinations report, if any, is the number of people that potentially read a piece of promotional content, or the economic valuation of an article published in a determined information outlet thanks to public relationships efforts.

But destinations cannot yet track the variation of international visitors from a specific target market, how much they spent, nor attribute those variations to the corresponding marketing efforts.

Furthermore, to allow strategic adjustments on time, such data is required as soon as possible after visitation happens. Unfortunately, visitation data, if any, is usually delivered after a year or more, mostly as general statistics at the country level, and without reporting on spending.

Screen analyzing tourism insights

HOW TO MEASURE TOURISTS ARRIVAL AND SPENDING (ROI) IN A TIMELY MANNER

Achieving this does not only require a good methodology, but also the capacity to coordinate timely provision of data from multiple sources like ports of arrival, service providers, or even attractions.

For that, in terms of methodology, the United Nations and the World Tourism Organization developed a guide for implementing such measuring capabilities, called: “ Recommended Methodological Framework for Tourism Satellite Accounts ” .

However, in terms of practical implementation, many resources are required to assure the constant flow of information, at least to monitor the number of visitors.

Measuring spending is a much more complex task, as this would require service providers or financial institutions, like credit cards for example, to report on visitors’ spending during their stay. Not to mention that part of the expense could have been incurred prior to arrival to the destination, booking hotels or activities, for example, making it even harder to track spending.

This is why measuring a destination’s ROI, in a timely manner, still remains highly challenging.

To solve this issue, a potential alternative is the implementation of a so-called tourism observatory at the destination level. In that regard, the World Tourism Organization created the  “ International Network of Sustainable Tourism Observatories (INSTO) ” .

Although the INSTO initiative provides a framework and technical support to implement a tourism observatory, it is still up to the destination to assure the long-term resources for staff, research, outreach, stakeholder engagement, etc.

On the other hand, there is a more pragmatic, affordable and integrated solution developed by Hermann Global Insights to estimate a destination’s ROI in relation to the desired international inbound tourism, using a combination of geolocation and spending tracking technologies.

THE INTEGRATED APPROACH ↓

Tackling the challenge:.

As discussed, destination development is not anymore about increasing the number of visitors. It is mostly about  attracting the type of international visitors  who resonate with your destination development goals.

For that purpose, you can use the different recommended approaches and tools discussed in the previous questions.

It does not matter if you do not clearly know yet how to connect it all. It all comes to how much time you devote to walking the path. With enough consistency expertise will eventually emerge.

Nevertheless, there is a  faster and more efficient way  for a destination to obtain the capacities to answer either all, or one of the previously discussed questions:

Hermann Global Insights  is a  performance-oriented solution  for tourism brands and government organizations to take  data-driven action  for international market access.

The solution aligns online listening, search patterns, social media, tourism impact, and visitor spending through a performance score, along with strategy support to  transform the way you attract international travelers .

The special thing about the  Hermann Global Insights  solution is that the team does not only provide data, but “ walks the talk ” by supporting destinations to: draw insights, make strategic decision-making, implement product development, perform marketing campaigns, and  measure results on attracting international inbound tourism.

And all of this,  within the perspective of the destination’s objectives for sustainable development  through tourism.

Example of the international inbound tourism market intelligence available through Herrmann Global Insights

Book a Demo

If you want to know how to use data to attract visitors in a sustainable way and facilitate your stakeholders’ decision-making, click here.

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2 thoughts on “5 questions destinations should answer to attract inbound international tourism”.

I’m truly enjoying the design and layout of your blog. It’s a very easy on the eyes which makes it much more pleasant for me to come here and visit more often. Did you hire out a developer to create your theme? Great work!

Thank you very much for your comment. It really lights up our day! As a tourism intelligence and marketing agency, we have a team of professionals taking care of every detail, such as design, content creation, functionality, etc. That is how we serve our partner destinations! 🙂 If you want to read other interesting articles, check out here: https://herrmannglobal.com/2024/02/12/five-critical-challenges-to-sustainable-development/ the first piece of the series, “Achieving Sustainable Development and the Roles of Tourism & Technology.” It is part of a seven-article series that will gradually provide you with a strong understanding of the dynamics among all those interesting fields. On the other hand, if you are also interested, you can check out our traveler-oriented platforms: http://www.untraveled.com or http://www.visitusaparks.com . I hope you enjoy them as well!

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  • STAN 2012: Database for Structural Analysis (ISIC Rev.4 SNA93)
  • STAN 2005: Database for Structural Analysis
  • STAN Indicators 2012
  • STAN Indicators 2011 (ISIC3 SNA93)
  • Manufacturing share of employment 1970-2009
  • Manufacturing share of value-added 1970-2009
  • R&D intensity of manufacturing sectors 1995-2009
  • STAN Indicators 2009
  • STAN Indicators 2005
  • STAN I-O Intermediate Import Ratio, March 2012
  • STAN Input-Output Total, Domestic and Imports, March 2012
  • STAN I-O Imports content of Exports, March 2012
  • STAN I-O Inverse Matrix Coefficients (Domestic), March 2012
  • STAN I-O Inverse Matrix (Total), March 2012
  • ANBERD: business enterprise R&D by industry (ISIC Rev. 3)
  • ANBERD: business enterprise R&D by industry (ISIC Rev. 2)
  • Services Trade Restrictiveness Index by services sector
  • STRI Heterogeneity Indices
  • Digital Services Trade Restrictiveness Index
  • Digital STRI Heterogeneity Indices
  • Intra-EEA Services Trade Restrictiveness Index
  • Intra-EEA STRI Heterogeneity Indices
  • Steelmaking Capacity
  • Receipts and expenditure
  • Domestic tourism

Inbound tourism

  • Outbound tourism
  • Enterprises and employment in tourism
  • Internal tourism consumption
  • Key tourism indicators
  • TiVA 2021: Principal Indicators
  • Economic Outlook
  • Gross domestic product (annual)
  • Gross domestic product (quarterly)
  • Composite Leading Indicators
  • Consumer price indices - inflation
  • Health Status
  • Labour Market Statistics
  • Monthly Monetary and Financial Statistics (MEI)
  • Agricultural Outlook
  • Bilateral Trade by Industry and End-use (ISIC4)
  • Statistics from A to Z

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The differences between outbound and inbound tour operator agents

How to get more direct bookings

By Rezdy — 25 Mar 2018

distribution   inbound tour operator   inbound travel   outbound tour operator   outbound travel

Updated January 2023 – Are you a tour operator trying to find which option is best for you? Or alternatively, are you a tourism professional trying to set up your distribution system? Trying to make your mark and stand out in a highly competitive industry? Let’s start at the beginning to help you understand the types of travel agents available to partner with. 

The role of a tour operator is to brainstorm ideas and conduct research to design holiday packages for travelers. In essence, they curate and compile various travel elements into a package that people will find appealing — creating a tailored and individual experience based on the interests and needs of various travelers. Holiday packages usually combine accommodation, cuisine, sightseeing, and transport. 

Inbound vs. outbound travel

what are the types of tour operator agents

An inbound tourist is someone who visits a country but is not a resident of it. In outbound tourism, residents of a country visit another country. Does this sound like two sides of the same coin? That’s because it is.

Let’s look at an example:

Kevin, an Australian citizen, is traveling to Argentina for a holiday.

Kevin is an inbound tourist to Argentina. In contrast, Kevin is an outbound tourist from Australia. 

Depending on where Kevin chooses to organize his holiday packages will depend on if he makes use of inbound tourism or outbound tourism.

An inbound tour operator will sell to people soon to be arriving in their countries, whereas an outbound tour operator will sell to people before they arrive at their destination.

Inbound tour operator agents

An inbound tour operator, also known as a destination management company, is a locally-based business or individual that provides holiday planning. This includes itinerary planning and arrangement of payment for their overseas clients. 

Inbound tour operators deal with both individuals and groups of international travelers. They make arrangements that are specifically catered to international guests, ensuring their clients have a comfortable and enjoyable stay. 

An inbound operator can work with the convenience of being able to operate at the same location in which they are organizing the holiday packages. Compared to outbound tour operators, an inbound operator would better understand the local area and its culture. This is especially true when receiving any inquiries or questions about tour information from a potential client. Additionally, an inbound tour operator is usually encouraged to develop strategic partnerships with other local companies and tour and activity operators . Building these relationships is a lot easier due to geographical location. 

Inbound tour operators are locally based

2 main types of tour operator agents

The purpose of inbound tour operators is to promote the entire destination to potential visitors from their local viewpoint. The operational advantage of being locally based is having easy access to work with other companies to promote the location as a whole to interested overseas travelers. Additionally, inbound tour operators can offer a more personalized service to their customers by having direct contact with them in their chosen destinations.

Inbound tour operators often work with other travel agents and distribution partners

Tour packages are often created and promoted by inbound tour operators in partnership with other travel agent s and travel distribution channels . Inbound tour operators work under the assumption that travelers are often motivated by package deals and promotions, and take advantage of this when marketing their destination. This means it’s beneficial for inbound tour operators to create packages that include local tourism businesses such as hotels, transportation, and tours and activities. Following that, these same packages are promoted to segments of the target market that are most likely to visit the region in the near future.

Choose an inbound tour operator if:

Working with an inbound tour operator is a good idea if you want to increase your visibility in a chosen destination. This will be increasingly beneficial if your target market shows interest in package deals. 

Outbound tour operator agents

Outbound tour operator

A typical outbound tour operator works with international tourists. In contrast to inbound tour operators, outbound tour operators take travelers overseas from their home country. They offer a variety of tour packages that enable tourists across borders to travel abroad easily.

Outbound tour operators contribute significantly to the destination country’s economic growth. The majority of outbound tour operators choose to focus on a specific destination. This may be a destination that is currently popular or a destination in which they have special expertise and distribution partners. 

Most outbound tour operators cater to international travelers. 

Outbound tour operators offer travelers the convenience of visiting another country of their choice through tour packages. When travelers book a tour with an outbound tour operator, they can get everything they need under one roof — simplifying the travel experience. 

A particular region of the world is often their specialty

Outbound tour operators have the benefit of being experts in the destinations they serve. European destinations are a very popular choice with outbound tour operators; however other destinations, such as Southeast Asia and the Middle East, are growing in popularity. A successful outbound tour operator will often be very tuned-in to trends, one step ahead of the crowds, so they know which destinations to specialize in next. 

Choose an outbound tour operator if:

If your business strategy includes targeting international travelers, partnering with an outbound tour operator is likely to be a good fit. Additionally, an outbound tour operator will be a good fit if you understand overseas offerings and have the ability to promote them to domestic customers.

Advantages and Disadvantages

inbound tour operator definition

Just like running any form of travel company, there will always be some advantages and disadvantages. before working with either an inbound or outbound tour operator, here are a few pros and cons you should consider.

Inbound tour operators

As an inbound tour operator, you’ll have the advantage of convenience. This is due to being able to operate in the same location or home country as the tours you offer. This is extremely beneficial when receiving any inquiries or questions about the tours as you’d have a greater understanding of the local area and its culture compared to outbound tour operators. Furthermore, as an inbound tour operator, developing strategic partnerships and forming great relationships with other local companies and tour and activity operators will be a lot easier and is usually encouraged.

Another major advantage an inbound tour operator has is that most of the interactions with their customers will be direct. Meaning, it will allow them to offer a more personalized experience based on their customer’s needs.

Outbound tour operators

Just like the inbound operators, outbound tour operators deal with customers from their own countries. This makes designing and creating tour packages a whole lot simpler as they can customize the tours based on the customer’s interests. However, a disadvantage outbound tour operators have is not being based on the travel destination itself. This could create problems and can be more difficult to resolve any issues that may arise.

Fortunately, outbound tour operators have the flexibility to update their products and packages based on the latest travel trends and demands. As we all know, the travel industry is highly competitive and constantly evolving. Offering outbound tours gives you the freedom to adapt to changes in the travel and tourism market swiftly.

Which one should you choose?

The key difference between inbound and outbound tour operators comes down to whether they provide tours in their home country or abroad. You should consider both types of tour operator agents when developing your distribution strategy. Partnering with these two agents will maximize your reach to both international and domestic travelers.

Now, it’s time to think about ways to make your distribution and marketing channels more effective. You can identify your key partners via your research or by connecting with a tour wholesaler . By establishing partnerships with a large tour operator network , you can advance your business — both inbound and outbound. Read our previous blog if you are looking for tips and tricks for partnering with travel agencies or download our online distribution  ebook today.

In general, both types of tour operator agents play an important role in the overall success of your distribution strategy. By partnering with both of these agents, you’ll be able to maximize your reach to both international and domestic travelers.

When bookings start to come through, you’d want to ensure that you’re providing your customers with a simple booking journey. By utilizing an online booking software , you’re not only simplifying the customer’s booking journey, you’re streamlining your processes as well. This is due to advanced features that automate your processes that allow your customers to make a booking on the spot. These features include a real-time availability viewer, that allows your customers to book based on your exact availabilities. Payment gateway integrations that provide your customers with the convenience of secure online payments. And Automatic communication, which sends your customers confirmation and updates regarding their bookings.

To top this all off, you can easily manage your partnership with both outbound and inbound tour operators via an online tour operator marketplace like Rezdy Channel Manager . Rezdy’s marketplace broadens your reach to over 25,000 active resellers in the industry.

Using Rezdy Channel Manager is as simple as:

  • Naming your price
  • Setting your rates
  • Letting resellers sell and promote your products

On top of that, you don’t have to worry about collecting payments and paying commissions as Rezdy automatically organizes payments for both parties. This reduces the need to chase your agents for payments.

Ready to capture more inbound and outbound bookings with Rezdy? Start a FREE 21-day trial or book a free demo today.

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COMMENTS

  1. What is inbound tourism explained and why does it matter?

    Here are a few tourism markets that have a high number of inbound tourists each year-Spain . According to Statistica, Spain ranked second on the World Tourism Organisation's list of most visited countries in the world, with its number of international visitors amounting to nearly 89.4 million in 2018.. Most travellers to Spain come from Europe, with the largest amount of tourists being British.

  2. Understanding Inbound Tourism: A Comprehensive Guide

    Here are some key reasons why inbound tourism is significant: Economic Impact: Inbound tourism generates revenue for the host destination through spending on accommodations, food, transportation, and other services. This revenue contributes to the local economy, creates jobs, and supports small businesses. Cultural Exchange: Inbound tourism ...

  3. What is Inbound and Outbound Tourism?

    Well, the difference between the two is just a matter of perspective, that is, from where and how you see it. In simple words, if we look from the USA tourism perspective, the outbound tourism would be Robert going to Pakistan, while inbound tourism would be, Ali coming to the USA. Similarly, if we look from a Pakistani tourism perspective, the ...

  4. What is Inbound Tourism?

    Inbound tourism is a significant driver of economic growth, offering multiple benefits to countries and local communities. The influx of international visitors creates employment opportunities, supports local businesses, and generates tax revenue for governments. ... This includes detailed product descriptions, images, and videos, ensuring that ...

  5. PDF 3 Inbound tourism: The what, why, & how

    Inbound visitors to the UK spent £28.45 billion in 2019, and £24.78 billion of that was spent in England. For you, inbound tourism gives the opportunity to be part of this, to diversify your markets, and access new areas of business that may balance out regular domestic business patterns. Taking England to the World - an inbound tourism ...

  6. Glossary of tourism terms

    Inbound tourism: Inbound tourism comprises the activities of a non-resident visitor within the country of reference on an inbound tourism trip (IRTS 2008, 2.39). Inbound tourism consumption: Inbound tourism consumption is the tourism consumption of a non-resident visitor within the economy of reference (TSA:RMF 2008, figure 2.1).

  7. 1.1 What is Tourism?

    Inbound (non-residents travelling in a given country) Outbound (residents of one country travelling in another country) ... Figure 1.2 long description: Diagram showing the tourism supply chain. This includes the phases of travel and the sectors and activities involved during each phase. There are three travel phases: pre-departure, during ...

  8. What is the Inbound Tourism in Travel?

    Inbound Tourism. Inbound tourism refers to the act of traveling by individuals or groups into a particular country from their home country or any other foreign nation. It involves visitors who come into a country for various purposes, such as leisure, business, education, medical treatment, or other activities.

  9. Inbound Tourism

    UNWTO defines inbound tourism as all incoming nonresident arrivals to a targeted destination. Evidentially, this interpretation pertains to international tourists; as such, the foremost choice of travel mode among inbound tourists is by air, by road, and, peripherally, by water and rail. Long-haul nature of inbound travel can give rise to high ...

  10. Inbound tourism

    UNWTO defines inbound tourism as all incoming nonresident arrivals to a targeted destination.Evidentially, the literature applies and reflects this interpretation in discourses pertaining to international tourists. The foremost choice of travel mode among inbound tourists is by air, closely followed by road, and, peripherally, by water and rail.While their primary purposes are leisure ...

  11. Inbound Tourism Economics: The Dollars and Sense of Global Travel

    The tourism industry is labor-intensive and employs people from various sectors such as hospitality services, transportation services, tour operators/guides, etc. Inbound tourism creates direct ...

  12. Country profile

    In order to better understand inbound tourism, the World Tourism Organization (UNWTO) has launched a dashboard on country profiles with data on inbound tourism. The dashboard includes data on: International tourist arrivals. International tourism receipts. International tourism exports. Comparison of destinations. Ranking of indicators on ...

  13. The Latest Trends on International Inbound Travel

    REPORT August 31, 2022. International inbound travel is crucial for the U.S. economy. It generated $239 billion in travel exports in 2019 and, after taking into account U.S. spending abroad, a trade surplus of $53 billion. After many months of near-stagnation from many of our key markets, inbound travel is finally on a solid, yet bumpy, path of ...

  14. What Is Inbound and Outbound Tourism With Example?

    Inbound tourism refers to when tourists visit a country that is not their own. In other words, it refers to the arrival of visitors from overseas into a country. This type of tourism is also known as international tourism. The visitors could be traveling for various reasons such as leisure, business or visiting friends and family.

  15. Tourism

    Tourism is one of the world's fastest-growing industries and a major foreign exchange and employment generation for many countries. It is one of the most remarkable economic and social phenomena. The word 'tour' is derived from the Latin word tornus, meaning 'a tool for making a circle.'. Tourism may be defined as the movement of ...

  16. PDF Landscape of Inbound Tourism Report

    The travel and tourism data include overseas residents who are departing the UK and UK residents returning to the UK. As a result, a proportion of the sample forms the basis of inbound tourism statistics. The sample for inbound tourism in the last 10 years (2010-2019) was around 42,000 per annum.

  17. Tourism Export Council of New Zealand

    For product suppliers, working with Tourism Export Council Inbound Tour Operators provide: Access to international tourists - we deliver to your door. Repeat, volume, business. Extensive knowledge of international consumer needs. An extension of your marketing department - eliminating or reducing the need for overseas marketing.

  18. 5 Questions Destinations Should Answer to Attract Inbound International

    Context ↓. Question 1. WHAT IS THE BEST INTERNATIONAL INBOUND MARKET FOR YOUR DESTINATION IN TERMS OF RESPONSIBLE TRAVEL? ↓. Question 2. WHY WOULD VISITORS CHOOSE YOUR DESTINATION OVER OTHERS? ↓. Question 3. HOW DO VISITORS PLAN AND BOOK TRIPS TO YOUR DESTINATION? ↓. Question 4.

  19. Inbound tourism

    406 797. 62 400. 66 442. Nights in all types of accommodation. Hotels and similar establishments. 11 119 811. 10 336 598. 10 854 245. 11 436 408.

  20. The Economic Benefits of Inbound Tourism: Boosting Local Economie

    Description. Inbound tourism refers to the act of foreign travelers visiting a country for leisure or business purposes. It is a significant source of revenue for many countries, as well as a means of cultural exchange and international cooperation. In this commentary, we will explore the benefits and challenges of inbound tourism, as well as ...

  21. Inbound tourism travel by country, 2023

    The United States of America is the top country by inbound tourism travel in the world. As of 2020, inbound tourism travel in the United States of America was 72,812 million current US dollars that accounts for 14.41% of the world's inbound tourism travel. The top 5 countries (others are France, Australia, Germany, and Italy) account for 34.27% of it. The world's total inbound tourism travel ...

  22. Outbound vs Inbound Tour Operator Agents

    Outbound tour operator agents. A typical outbound tour operator works with international tourists. In contrast to inbound tour operators, outbound tour operators take travelers overseas from their home country. They offer a variety of tour packages that enable tourists across borders to travel abroad easily. Outbound tour operators contribute ...

  23. What is Inbound and Outbound Tourism

    Business tourism is the oldest form of tourism in human history. Business tourism is based on four types of activities i.e. meetings, incentives, conferences, and exhibitions (MICE). The inbound business tourism performs a significant role in the economic growth and development of any country. The objectives of this chapter are as follows.