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Growth of global tourism The year 2007 exceeded the expectations for international tourism with arrivals reaching new record figures close to 900 million .

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Growth of global tourism

The year 2007 exceeded the expectations for international tourism with arrivals reaching new record figures close to 900 million.

In 2005, world tourism receipts was $787 billion dollars, making tourism the world's number one export earner, ahead of automotive products, chemicals, petroleum and food.



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Growth of global tourism

Why so low?

Why so high?





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Growth of global tourism

What would cause tourist arrivals numbers to fluctuate?


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Growth of global tourism

  • Factors causing growth:

    • rising disposable income

    • Increasing leisure time

    • transportation improvements - speed, size andcosts

    • higher levels of education

    • growth/marketing of mass tourism by TNC

    • LEDCs promoting tourism as a means to harnesseconomic development

    • others????


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Growth of global tourism

  • Factors causing growth:

  • Increasing leisure time due to less work and less work because of ...


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  • Increasing leisure time due to less work and…

  • reduced number of farmers

  • strength of unions

  • increased efficiency in production

  • automation

  • doctor’s prescription for stress

  • time off instead of overtime due to taxation

  • paid vacations

  • job sharing

  • early retirement


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Growth of global tourism

Transportation improvements - speed, size and costs


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Growth of global tourism

Transportation improvements - speed, size and costs



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Recent changes in the tourist industry

  • Expansion of tourism:

  • exotic and remote destinations - Dani - Irian Jaya

  • eco-tourism

  • extreme tourism - Space travel!

  • Eco-tourism and Sustainable Development

  • Involves travel to natural destinations

  • Minimizes Impact

  • Builds environmental awareness

  • Provides direct financial benefits for conservation

  • Provides financial benefits and empowerment for local people

What are the causes for change?


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Recent changes in the tourist industry

Rising Education Level: the single most significant factor that influences cultural participation, environmental concern, affluence -- and travel.

  • Increasing Age:

  • Many baby-boomers are in their mid-forties.

  • This group also has more available time than they had previously

  • They are at the peaks of their careers and possess the highest earning power of their lives

  • In twenty-five years, 54 percent of the population of the United States will be over the age of fifty

From: http://www.lord.ca


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Recent changes in the tourist industry

  • Increasing Economic Role of Women:

  • More women are working, earning more money

  • Women typically make the decisions regarding the educational experiences of their children and set vacation plans -

    • Who makes the vacation decisions in your home?

  • Importance of Quality:

  • Increasingly sophisticated consumers want:

  • sophisticated tourism infrastructure: good roads, hotels, and other necessary amenities.

    • Such as what?


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Recent changes in the tourist industry

  • Changing Leisure Patterns:

  • With all of the publicity about exposure to ultra-violet radiation and ozone depletion, visitors may not want to spend all of their vacation on the beach or outdoors.

  • Activities are likely to include indoor pursuits, such as those afforded by historic homes and reconstructed sites.

  • Advances in Global Communications:

  • The age of information has brought about an increasing awareness of social issues.

  • Visitors will be better informed and more demanding of accountability.


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Recent changes in the tourist industry

  • Changing Leisure Patterns:

  • Proliferation of travel options: Competition will be keen for resort locations like Phuket to retain their tourist market. Caribbean basin countries and other ELDCs located in the “sunbelt” are establishing significant tourism programs capiitalizing on their natural and cultural attributes and are promoting them effectively.

  • Increasing importance of International tourism: the rise of international tourism represents a tremendous opportunity to access an affluent, educated, sophisticated consumer


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Money Lost through leakages

New Hotel Sets Up

Creates Jobs directly in the hotel

Local businesses supply services

Other companies are attracted to the area

When workers spend their wages, yet more jobs are created and then there are their taxes

Taxes spent on improving the infrastructure, image and tourist services

The area becomes a more popular tourist attraction

Tourism as a multiplier effect

The multiplier effect

More jobs are indirectly created


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  • Economic costs:

  • leakage of revenue abroad through involvement of TNCs,

  • the seasonal nature of employment

  • the development of wealthy tourist enclaves and neglected peripheries - Club Med!


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Aircon from Canada

Elevators from Japan

Curtains from France

Carpets from NZ

Inter-com from UK

Alarm system from Italy

Leakage of revenue

Computers from USA

A study of tourism 'leakage' in Thailand estimated that 70% of all money spent by tourists ended up leaving Thailand (via foreign-owned tour operators, airlines, hotels, imported drinks and food, etc.). Sustainable Living

Lighting from Holland

Automatic doors from Belgium

Whisky from Scotland

Food from Australia

Van from Germany

Vodka from Russia


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  • Social costs

    • the dilution or "McDonaldization" of culture

    • the breakdown in family values

    • the growth of crime, alcohol, drugs, prostitution and diseases including, AIDS


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  • Environmental costs

    • the destruction of local habitats:

      • land

      • air

      • water pollution


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Tourism as a multiplier effect

The multiplier effect