TOURISM A.J. Peters Rachel Heacox Rebecca Ellis
Overview • Brief history of the tourism industry industry • Exploration of Industry focusing on: • Europe • Caribbean • Australia
History of industry • Idea of traveling for pleasure started with Europe’s upper class in the 18th century • The travel industry was growing at a steady pace, but was put to a halt with the World War I and II • After the end of World War II the economy began to improve and the travel industry flourished. Institute of Research, p. 3
Tourism Today • The tourism and travel industry has continued to grow and experienced its largest expansion in the 1990’s • Currently global tourism boasts over $4 trillion dollars in sales annually and employs 260 million people • In the U.S. tourism is the 3rd largest retail industry D&B/Industry Handbook, p. 274
Tourism in Europe • The countries to be discussed are France and Germany • For both countries tourism plays a major role in the economy
Tourism and the economy • Tourism is the world’s fastest growing industry, and Europe has been right in the center of this booming industry • The growth rate for tourism in Europe is 3.7% per year • This clearly indicates that tourism in Europe is a major role player to the success of many European economies
France • France is the world’s fourth largest economic power in terms of GDP • Has a surface area of 555,000 km2, making it the largest country in Western Europe (about the size of texas) • Borders: Belgium, Luxembourg, Germany, Switzerland, Italy, and Spain http://www.info-france-usa.org http://france.diplomatie.fr/france/gb/geo/pays01.html
Tourism in France • Its main industries are: (transport and telecommunications, luxury products, TOURISM, pharmaceutical industries, banking, insurance, and agri-foodstuff) • With 76.5 million foreign tourists, France has become the most visited country in the world. • Their income from tourism (30 billion Euros) is the third largest in the world after Italy and the US • Capital: Paris http://www.info-france-usa.org
How it effects economy • Tourism clearly brings a huge economic boost in terms of dollars • Their trade surplus in the tourism sector is over 15 billion Euros • It also provides about 2 million direct or spin-off jobs to France, which lowers the unemployment rate • The steady growth rate of tourism gives the country some stability and keeps the foreign money rolling in.
Why France? • France does well in tourism because: • 12,000 listed monuments • 1,200 museums • wide variety of landscapes • good public transportation • excellent service
Why France? • The French hot spots are the French Riviera, Paris, the Northern Alps, and the Loire Valley • All of these help France compete against the rest of the world.
Germany • Capital: Berlin • Currency is the Euro • Germany possesses the world’s third largest economy, after the US and Japan • Their GDP growth rate is around 3% www.1uptravel.com/international/europe/germany/ - 37k - Mar 1, 2003
Tourism and the economy • The importance of tourism in Germany cannot be questioned • No other single branch of the economy employs so many people (direct and indirect) • Roughly 2.8 million Germans work in the branch of tourism, more than any other branch in the economy http://www.german-embassy.org.uk/tourism_in_germany.html
Tourism and the Economy • That 2.8 million is equivalent to 8% of the entire German workforce • Tourism accounts for 8% of the total GDP • In 2001, the travel industry generated more than 155 billion Euros • Placing it third behind motor manufacturing, and mechanical engineering, but ahead of chemical and food industry http://www.germany-tourism.de/pdf/importance_of_tourism_2001.pdf
Tourism in Germany • Tourism has a major impact on the German economy because of its contribution to wealth, job creation, and importance to the economy • Helps bring foreign money in and unemployment down
Countries of the Caribbean http://www.cha-cast.com/tourism.html
Countries of the Caribbean • 24 countries • ABC Islands, Anguilla, Antigua & Barbuda, Bahamas, Barbados, Cayman Islands, Dominica, Dominican Republic, Grenada, Grenadines, Guadeloupe, Jamaica, Martinique, Puerto Rico, Saba & St. Eustatius, St. Barth, St. Kitts & Nevis, St. Lucia, St. Martin, St. Vincent, Trinidad & Tobago, Turks & Caicos, and the Virgin Islands
Why Visit the Caribbean • The Caribbean has pristine attractions such as coral reefs, exquisite beaches, tropical forests, five star resorts, rare exotic animals, warm climate, warm and friendly people and beautiful vegetation which draws in tourists from around the world.
The Importance of Tourism • In most Caribbean countries, the economy relies very heavily on tourism and in many, tourism is the main industry. • The Travel & Tourism Industry in the Caribbean region is vital to the Caribbean infrastructure, its people and its communities. Tourism growth and a profitable hotel industry is dependent on healthy and sustainable operating systems.
The Importance of Tourism • More than 500,000 people are employed in the tourism industry in the Caribbean, or one in every four jobs. • In 1995 the region earned $11.8 billion of foreign trade from overseas visitors. • Over the next decade an estimated 36% increase of tourist arrivals is anticipated.
The Importance of Tourism • In the Caribbean, Travel & Tourism has the potential of expanding 70% creating 2.2 million jobs by 2007. • Tourism accounts for roughly 25% of exported good and services which contributes 31% of the Gross Domestic Product; the largest relative producer of travel and tourism in the world.
Travel to the Caribbean • International tourist travel has grown steadily over the years, except for short periods of slow growth associated with the Oil Crisis during the early 1980s and the Gulf War in the early 1990s.
Travel to the Caribbean • Between 1980 and 1996, world international tourist arrivals increased by 108.8%, or by an average of 4.7% annually. Over this period, the receipts from international tourism grew by 311%, from US$103 billion to US$423 billion, or at an average growth rate of 9.2% annually.
Travel to the Caribbean • In 1996, Caribbean destinations received a total of 25.54 million visitors, comprising 14.84 million tourist arrivals and 10.7 million cruise passenger visits. Caribbean tourist arrivals increased by 2.4% in 1996 and the number of cruise passenger visits by 10.9%. Gross expenditure by all visitors (tourists, cruise passengers and other excursionists) to the Caribbean in 1996 reached an estimated US$13,340 million, an increase of 5.6% over 1995
Travel to the Caribbean • As can be expected, the United States remains the most important source of tourists to the region, despite the steady fall in its share of total tourists arrivals to the region in recent years. • The US share has declined from 61.8% of total arrivals in 1987, to 52.7% in 1992, and to 48.5% in 1996.
Competition • Since Europeans generally stay longer than visitors from the other major markets, they account for an even higher share of the total bed nights spent by tourists in the region than their numbers would suggest. • Tourists from Canada accounted for 5.8 % of all tourist arrivals in 1996, which was somewhat below its 7.4 % share in 1992. • Intra-Caribbean tourism is being targeted for future growth as well.
Australia - overview • Geography: smallest continent – 2,967,877 square miles • Government: federal parliamentary state • Capital: Canberra • Largest City: Sydney • Continental states in the nation: Queensland, New South Wales, Victoria, South Australia, Western Australia • There is no state religion, largest churches are the Anglican and the Roman Catholic Encyclopedia.com
Australia - economy • Mostly rich farm land • Industry: mining, food processing, the manufacture of industrial and transportation equipment, chemicals, and machinery • Exports: metals, minerals, coal, wool, beef, mutton, cereals and manufactured products • Rich in mineral resources and opals and diamonds • Self-sufficient in food production • GDP is $340 billion & per capita GDP is about $21,000 Encyclopedia.com
Australia - tourism • The Australian Tourism Commission, stated that tourism is the largest and fastest growing of the Australian service industries • The Australian service industries account for 70% of the countries $340 billion GDP • The number of visitors is expected to grow annually between .6 and 4.7 percent, which would be between 4.4 and 5.2 billion guests Worcester, p.66
Australia – tourism factors • One of the largest influences in the Australian tourism industry was the 2000 Olympic games • Historic neighborhoods • Exotic animals and beautiful beaches
Australia – 2000 Olympics • Won bid in 1993 to host the 2000 Games and the extra 3.6 million tourists that would arrive • In order to host the games Sydney expanded the ferry network, built a new rail link from the airport to the city, and revamped parks and the city itself – spending over $ 1 billion • Greenpeace and environmental groups headed all of the building projects to ensure environmental protection of the Homebush Bay wetlands, the biodiversity, ozone and ensure energy efficiency Sydney Organizing Committee
Australia – 2000 Olympics cont. • Not only did the Olympics bring about transportation and technological improvements but in order to host the games over 5,600 hotel rooms were added • It was estimated that the aftermath of the attention from games would boots tourism by 2.1 million visitors and generate an extra $4 million dollars • The Olympics also brought exposure and enhanced the profile of Australia and gave them a closer link with the world travel industry
Australia – The Rocks • The Rocks is the most historic neighborhood in Australia – it is located in the bluffs near the Sydney Harbor • The area is complete with unique shops, cobblestone streets, pubs, fine dining and high tea, and a historical luxury hotel – The Lord Nelson Brewery Hotel, complete with harbor views, Australian antiques, and a full service spa. Preet, p. 43
Australia - land • Australia is also home to the Great Barrier Reef, which is the world’s largest coral reef. • In addition is is also home to the kangaroo, koala, wallaby, and various other unique plants, birds, and animals.
Australia – barriers to tourism • The largest barrier to tourism is the distance • Total flight time can range from 18 to 35 hrs depending on your departure location and the number of connecting flights and they are also extremely expensive & start at about $1,400 • In addition, there is a 12 hour time difference • These factors make it very hard and extremely expensive to take a short trip – hence a majority of travelers to Australia stay 2 to 4 weeks or longer -- and a majority of vacationers do not have the time or the money to stay that long
Australia – marketing tourism • The Australian Tourist Commission is working on revamping its marketing campaign for 2003 • Main focus is ads on terrestrial and digital TV stations which encourage viewers to visit Australia.com, a hi-tech website that can design a sample itinerary that can be directly sent to travel agents • The ads will focus on the range of experiences and things Australia has to offer and will encourage 2 week trips/packages and intends to target travelers in France and Germany Dillabough, p. 12
Tourism • As you can see, tourism is crucial for several economies due to the amount of jobs and wealth it provides • With tourism and its importance competition within countries is fierce
The economy Technology Global population increases Time Values and lifestyles Continuous learning The environment Generation X Industries and Institutions Service The top 10 biggest trends for the industry include: D&B/Gale Industry Handbook, p.275-7