Nature of tourism
• The increased affluence of people from more developed countries and the rapid improvements in technology produced the phenomenon of mass tourism. Globalisation has also enabled an increase in tourism, particularly international tourism.
• 6th largest industry in the world 1 in 6 jobs are tourism related. Tourism also increases the use of technology, transport, Internet bookings and marketing in their sector.
• The global earnings from international tourism are expected to grow from US$453 billion (1999) to US$2 trillion (2020) – World Trade Organisation
• Tourism is a vital industry for the growth and maintenance of a country’s gross domestic product – the total value of goods produced and services provided in a country during one year.
• Foreign exchange rates for currency have large impacts on tourist movements, e.g. Australian dollar currently = 71 U.S. cents, not ideal for international travel.
• Social developments mean there are more people capable of various tourism forms, e.g. retirees/Baby Boomers/DINKS. There are however environmental concerns with the rise in tourism, e.g. rise in waste, water use, resources, energy use decrease in biodiversity.
• Tourism may be categorized as international or domestic:
◊ Domestic tourism – travel within the tourist’s country of residence
◊ International tourism – travel outside the tourist’s country of residence. International tourism to the balance of payments of the host nation.
• Forms of tourism include package tours, group tours, individual travel, cultural and environmental travel, rural tourism and business conferences, conventions and trade exhibitions
Spatial patterns of tourism
- WW2 brought about the most significant changes in the spatial distribution of tourism. Technological improvements and the increases in living standards after 1945 made tourism accessible to the masses.
- In the 1950s, 97% of all tourism was concentrated in fifteen countries – all of which were located in Western Europe and North America.
- By the 1960s, the development of the jet aeroplane, combined with the increasing affluence of more people, increased car ownership and improvements in international communications, opened up more diverse and further destinations for people to travel to.
- Globalisation has had an effect on the spatial distribution of the tourism industry. As barriers have broken down between countries, tourism has developed into an increasingly multinational (or global) activity.
- There are currently more than 70 countries receiving more than 1 million international visitors each year. More than 75% of tourism, however, is still concentrated in Europe and the Americas. In 2000, the top 5 tourism destinations were France, Spain, The USA, Italy, China
- Domestic tourism grows in Australia by 0.8% a year, with Australians mostly likely to travel to Malaysia, China, Fiji and Singapore. Sources of Australian tourists come from New Zealand, China and Europe, with China being the largest source country.
- East Asia and the Pacific are growing in tourism visits by 13%, with China likely to become top tourist destination by 2020. 70% of tourists come from developed countries, with less developed countries are now approaching 30%, up from 10%. Tourism has benefitted from and driven international tourism.
Future of tourism
• Over the long term, the tourism industry will continue to grow, retaining its position as the dominant global industry. The World Tourism Organisation’s estimates for 2020 confirm this prediction.
• In the short term however, there is some concern about the growth of tourism. This is due to economic downturns (2008 Global Financial Crisis) and terrorist attacks (9/11, Bali Bombings). An example was during 2001-2002, where international tourist numbers fell 10%. Some tourist accommodation operators had occupancy rates of only 60%, and investment within the tourist industry was at its lowest level.
• Future trends of tourism include:
◊ The spatial distribution of the global industry is changing as the faster economic growth rates of tourism continue in less developed countries.
◊ There will be an increase in intra-regional tourism - tourism within regions such as Asia and Africa, meaning that tourists from China will travel to destinations such as Vietnam, South Korea and Singapore.
◊ There is also speculation that as the Middle East begins to run out of oil, it will turn to tourism as a means of earning foreign exchange.
◊ The source of tourists will also continue to change as people from LDCs become more affluent. A growing middle class in India and China will help fuel this growth.
• Future predictions of tourism include:
◊ Tourism will continue to become increasingly accessible from the developing world (elimination of trade barrier, currency and visa restrictions)
◊ 1119 billion income for tourism by 2022 (Australia) – 7% increase
◊ Shorter and more frequent holidays as work constraints affect leisure time.
◊ The political stability of nations and regions will influence the future directions of tourism.
◊ Technology will play a pivotal role in the future distribution of tourism. Every aspect of the tourism experience is now available via the Internet.
◊ The future of the tourism industry is firmly tied to the process of globalisation.
(Factors) Biophysical
- Climate impacts the type of tourism activity that takes place. Different activities have different climatic conditions for favourable development.
- Climate can determine the length and profitability of holidays seasons in resorts. Natural features, unique biophysical characteristics, are also large tourist drawcards.
- The tourism industry is located according to the spatial distribution of attractions and access to the attractions. Access is largely a function of environmental factors.
- Environmental conditions can also place restraints on the types of tourism development (e.g. act as a deterrent to some activities). Destinations lacking climate, flora, fauna and feature are seldom developed by large operators.
- Natural hazards and disasters can also limit a destination’s potential tourism flows (e.g. the 2004 tsunami crippled tourism in the area, with estimate losses exceeding $120 million)
- Examples: alpine regions in Canada and Japan have suitable climate for skiing and other snow based tourism activities, Australia attracts many Nth Hemisphere tourists in summer due to our beaches, bushlands, deserts and landmarks.
Factors explaining the nature, spatial patterns and future directions of tourism (7)
Biophysical, Ecological, Economic, Sociocultural, Technological, Organisational, Political
(Factors) Ecological
- Mass tourism is not considered to be sustainable. Ecotourism has evolved in recognition of the negative impacts of mass tourism.
- Ecotourism is described as ecologically sustainable development with a primary focus on experiencing natural areas that fosters environmental and cultural understanding, appreciation and conservation.
- Both government and NGOs are interested in the future sustainability of ecotourism.
- Many adventure tourism activities have been established as ecotourism but the impacts on the natural environment still exist.
- Climate is now being seen as a looming reality with threats including droughts, sea level rises, forest fires, severe storms and instances of catastrophic ecological impact.
- The WWF has established a set of guidelines for community based ecotourism development with its primary focus on community-based ecotourism.
(Factors) Economic
- Economic growth of LDCs and the growing middle class of Asia
- Globalisation and the continuing decline of political and economic boundaries.
- Economically, tourism is for many countries the biggest source of foreign exchange, increasing balance of payments, increasing incomes, stimulation of infrastructure development and increasing tax base. It is a major source of employment both directly and indirectly.
- Tourism is now seen as an important instrument for facilitating economic growth particularly among developing countries.
- Economic development of a country impacts on tourism. As a society moves towards an increase in levels of development, the structure of employment changes with a shift away from agriculture towards secondary and tertiary sectors of the economy.
- The more developed countries of Western Europe and America have long been tourism capitals of the world. However, there is expected to be a shift and by 2020 China is expected to be the number one tourist destination worldwide.
- Currency and market fluctuations also impact the flows of tourism worldwide.
- Examples: Nepal has relied on tourism to foster its economic development. Tourism revenue accounts for around 4% of the GDP and more than 20% of its total foreign exchange.
(Factors) Sociocultural
- Participation in tourism is affected by the number of demographic and social factors such as age, family life, level of education, occupation, etc.
- Increased life expectancy and affluence means older people are demanding more tourist opportunities. The result will be the nature of tourism will change as the demand for easy access and luxury travel increases.
- Decreasing family size in developed and some developing countries contribute to the number and frequency of holidays. Higher levels of disposable income = more frequent holidays and increasing international tourism.
- Workplace changes have also impacted tourism opportunities. Longer working hours resulting in shorter, but more frequent holidays. Increasing business related travel with globalisation.
- The demand for cultural experiences continues to grow. Cultural icons like Rome, Paris and London are renowned for cultural experiences.
- Historical and cultural sites increase the number of religious pilgrimages and large-scale tourism operators.
- Indigenous tourism associated with cultural exchange and enrichment is also on the rise in many nations. Aboriginal cultural tours in Australia include arts, craft, traditional fishing, bush tucker and traditional ceremonies.
(Factors) Technological
- Improvements in transport since WW2 has had significant impacts in changing the nature and spatial distribution of tourism. Mass tourism in particular, has been the major benefactor of this development.
- Aircraft design has increased fuel efficiency, decreased travel and stopover times, and increase carry capacity. The result is a relative decrease in the real cost of travel.
- Introduction and expansion of fast rail networks in Japan and Europe again decrease the real cost of travel, as well as the growth of cruise liner operations through an increasing number of operators.
- Improvements in road and infrastructure increasing both domestic and international tourism.
- Information technology provides direct and instant access for airlines, accommodation, tour organisers and tourists. Virtual tourism experiences create demand for real tourism options. Examples of information technologies in tourism include airline and hotel reservations and information, production of e-tickets and e-documents, pricing information, marketing and customs.
(Factors) Organisational
• Ownership and decision making control and influence the nature and spatial pattern of tourism
• Globalisation, and the associated growth of TNCs have concentrated ownership of tourist operations. The decline or removal of trade barriers encourages this process further.
• Concentration of ownership provides mass tourism operators with advantages related to economies of scale. Decreasing costs enable increasing profits.
• The big three brands in Australia are Jetset, Flight Centre and Harvey World Travel. They are heavily franchised and have numerous outlets and online booking potentials.
• Direct and indirect employment, combined with the size of the industry, creates organisational opportunities for large companies.
• Niche tourism operators from local areas provide highly specialised tourism experiences and benefit from points of difference from the mass tourism experience.
• WWF, WTO and NGOs are also seen as organisations with a large impact of tourism. They have various environmental, political and social motivations but limited impact compared to many TNCs.
• Examples: QANTAS use vertical and horizontal integration to ensure access to more parts of the market;
◊ Horizontal integration involves tourist operators purchasing or taking control of another tourist operator in the same sector.
◊ Vertical integration occurs when a tourist operator buys into another sector of the industry, such as a hotel chain or travel agency.
(Factors) Political
- Quotas, tariffs, contracts and agreements between governments and business of inter-governmental alliances (e.g. AUSFTA)
- Governments influence and partly control the economic climate in which tourism operates.
- Govts. plan and deliver infrastructure that enable and promote tourism (e.g. the Great Ocean Road)
- Border restrictions, visas, passports and points of entry are all government controlled.
- Political stability promotes tourism. Political instability destroys tourism.
- NGOs promote tourism arrangements between governments to achieve fair and even tourism.
- The WTO established the General Agreement on Trade Services (GATS) for international and cross border travel.
- IMF (International Monetary Fund) assists less developed countries to build tourism services.
Environmental impacts
- Regard for the environment and for the need to manage it more effectively are having some impact on the way tourism operates, however there is still a long way to go.
- Air travel is the fastest growing source of greenhouse gas emissions, increasing the threat of global warming = pollution
- The Khumba region in Nepal has been affected by deforestation due to the demand for fuelwood along treks, trail degradation, the transformation of camp sites and trails into garbage dumps, the contamination of rivers and streams, and the pollution of soils and glaciers at high altitudes = resource depletion
Environmental positives negatives
Positive impacts
• Increased regard for the environment
• Income generated from tourism to the environment
• Policies formulated by government and non-government organisations to protect the environment from the impacts of tourism
Promotes awareness of environmental impacts through the education of tourists
Negative impacts
• Unsympathetic development of tourist facilities
• Pollution of tourist sites
• Deforestation, coastal, marine and mountain degradation by overuse
• Natural habitat destruction
• Exploitation of the concept of ecotourism
Exploitation of biodiversity
Social impacts
- The global tourism industry has positive and negative impacts on society. These include management of community-based tourist operations by indigenous groups, the loss of traditional cultural practices and the commercialization of cultural events.
- Many of the social interactions between tourists and locals revolve around the exchange of cash – there is very little cultural exchange or understanding = cultural integration
- An International Labour Organisation study has identified child labourers in the tourism areas of Jamaica = labour exploitation
Social positives negatives
Positive
• Allows for cross-cultural interaction
• Increases autonomy of local people managing their own tourist operation
Tourist revenue can be returned to community facilities such as schools and hospitals
Negative impacts
• Expropriation of indigenous land for tourism
• Loss of traditional livelihood
• Lack of cultural exchange due to monetary basis of relationship
• Child, forced labour
Commercialization of spiritual and ritual ceremonies
Economic impacts
- Economic benefits of the tourism industry include increased export earnings, employment and economic growth. In contrast, there are concerns about the effects of globalisation and the ‘profitless growth’ of tourism.
- The demand for land by tourist operators and the higher purchasing power of international tourists inflates property prices = provision of infrastructure
- The financial gains of tourism are unevenly distributed, with most of the income generated ending up in the hands of local or international hotel owners, package tours operators and airlines = transfer pricing
Economic positive negative
Positive
• Largest industry in the world
• Directly employs 3% of the global labour force = increase in job creation
• Multiplier effect
Promotes economic development
Negative
• Leakage • Dominance by TNCs • Over-dependence on a single-income generator • Jobs are often low-paid, low-skilled with poor working conditions • Creates land speculation • Causes inflation • Creates profitless growth Promotes globalisation
