Russ S Flashcards
Final Exam Prep - MGHM Dr. Kim
- Please explain why tourism matters
Tourism Matters for the following reasons, Cultural preservation, Environmental Protection, peace and security, create jobs, economic growth, development, represent 70% of world exports and 10% of world GDP.
- Please describe international tourism from 2017 to 2019. Your points will be highly evaluated if you can address both international tourist arrivals, international tourism receipts, top spenders, positive drivers of international tourism along with downside risks.
To encourage increased international visitors to the US. And to grow America share of the global travel market. In doing so, Brand USA aims to bring millions of new international visitors who spend billions of dollars in USA.
- Please explain US travel industry based on US tourism highlights 2018 ppt.
79.6 million total visitors to the US – half from Canada and Mexico. The 3rd greatest number of visitors come from the UK. Visitors are mainly coming for the purpose of leisure. The second greatest purpose of travel is for business. Food services (25%) and lodging (20%) are the top two spending categories by domestic and international travelers.
- Please address why International travel in US is important to the economy.
In 2018, $1.1 trillion in traveler spending generated a total of $2.5 trillion in economic output and supported a total of 15.7 million American jobs. Majority of spending was through direct leisure travel (spending of $761.7 billion) and rest was through direct business travel (spending of $327.3 billion). The greatest sources of spending were food service, lodging and public transportation. Also, without the tax revenue generated by travel and tourism, each household would pay $1340 more in taxes.
- Please explain why Brand USA was necessary and what Brand USA is.
Firstly, because the US was the only global leader that did not have an international travel and tourism marketing plan. Attracting tourism was depend on individual businesses in the industry. To encourage increased international visitors to the US. And to grow America share of the global travel market. In doing so, Brand USA aims to bring millions of new international visitors who spend billions of dollars in USA.
- Please explain how Brand USA is funded
Brand USA doesn’t use a single dime of federal taxpayer found; visitors pay $14 fee out of this $14, $4 of this fee goes to CBP to COVER PROGRAM FEES+$10 OF THIS FEE GOES TO THE Travel promotion fund.com) for every $1 raised from private industry Brand USA receive a $1 match from the travel promotion fund.
- Please describe how Brand USA works.
Brand USA actively work with globally to communicate regarding U.S. visa and entry policies. Brand USA’s primary mission is to encourage increased international visitation to the U.S. which allow the U.S. to grow its share of the global travel market. With billions of dollars spent on international visitors, it will create tens of thousands of new American Jobs. More specifically, since 2013 Brand UAS has added $47.7 billion in economic output, created 52,000 American jobs and generated $6.2 billion in Federal, State, Local taxes. Besides, its economic and cultural impacts reached not only for big cities but also smaller U.S destinations. Lastly, Brand USA has been playing a vital role to drive down the federal debt. In this year, $60 million is expected to go toward driving down the debt.
- What is ACVB and how it is funded.
Atlanta Convention & visitors Bureau; was created to sell and market metro Atlanta and Georgia globally as the premier conventions, meetings and tourism destination in the regional, national and international marketplace and favorably impact the Atlanta economy through conventions and tourism.
- Please list top 5 international destination cities: 1) numbers and 2) receipts
NUMBERS 1 Bangkok 2 London 3 Paris 4 Dubai 5 Singapore
RECEIPTS: 1 Dubai 2 New York 3 London 4 Singapore 5 Bangkok
- What are drivers for luxury travel demand?
Luxury travel benefits as consumers trade up Luxury categories benefiting from consumers trading up from mid-market to luxury.
- Please address economic growth for Aviation industry and discuss challenges for aviation industry that we had discussed in our class lecture.
Air transport is a major contributor to global economic prosperity.
Transports over 4B passengers annually with 8T in revenue kilometers (2017) , facilitates world trade by increasing access to international markets, nearly 62M tons of freight were transported by air in 2017, total value of goods carried by air = $6T, representing 35% of all int’l trade, 57% of international tourists travel by air globally
Globally, each aviation job generates $108,200 gross value. Aviation’s global impact is estimated at $2.7T, equivalent to 3.6% of the world’s GDP. The airport sector accounts for 6.12M jobs.
Challenges: shortage in pilots, the high cost of the infrastructure, economic regulation, World Health Organization restriction on Tobacco products and liquor, and fuel cost
Opportunities: growth in economy and travel numbers
- What is commercial casino in US and its economic impacts?
Commercial casinos are owned and operated by large and small companies. They are heavily regulated by state governments choosing the limits and locations of permitted casinos. There are three categories of commercial casinos: land-based, riverboat and casinos. Commercial casinos are legal in 26 states with the most in Nevada (217). Total consumer spending at commercial casinos in 2018 was $41.7 trillion. Direct gaming tax revenue was $9.7 trillion. The total jobs employed by commercial casinos was 737,450 and the wages, benefits and tips associated with those jobs were $34.3 trillion. The top commercial casino markets in the U.S. are Las Vegas Strip, Atlantic City, Chicagoland, Baltimore-Washington D.C. and New York City.
- Why Hong Kong, MACAO, and Singapore are recognized as MICE destinations?
These countries are MICE destinations because of their large gaming/casino industries.
HONG KONG: Highly developed infrastructure (World class physical & communication infrastructure and Hong Kong International Airport), union-free work force, many tourist attractions, corruption-free government, and Asia’s trading hub (world’s 11th largest trading economy, English & Chinese both as official languages, Visa free access for over 178 countries, Low & simple tax regime (almost no import tax, no sales tax), Mature banking & financial industry)
MACAU: very similar to Hong Kong; challenges include their heavy reliance on mainland Chinese visitors, poor transportation infrastructure, labor shortages
SINGAPORE: low crime rate, strong legal system, stable political environment, established financial industry, well-developed infrastructure, airport serves as a major hub connecting Australia-Europe Africa-Europe and southeast Asia, legalized casino, and a growing number of visitors (Ex. Marino Bay project)
- The Turkey has been considered as one of top destinations in the world. Please provide rationales.
- Istanbul is a popular cultural city-break destination, with numerous regional and global transport connections.
- Many of the top global hotel chains already have a strong presence in the country and numerous popular brands are represented.
- A range of markets are catered for, from budget holidays through to high-end travel and luxury resorts.
- Turkey is well situated geographically to attract arrivals from Western and Eastern Europe, the Middle East and Asia.
- Turkey has a wide range of tourism source markets, protecting it from asymmetrical shocks. Turkey is becoming increasingly popular with visitors from the Middle East, as religion begins to take a prominent place in the country’s culture and politics.
- Revitalised diplomatic ties with Russia present opportunities to rebuild arrivals from this once-significant source market.
- Medical tourism is also expected to develop, attracting visitors from Europe and the Middle East. The government’s plans to increase winter travel would decrease seasonality.
- Government support for the sector should help secure the industry against difficult headwinds.
Turkey boasts a wide range of historical, cultural and natural attractions, including 16 UNESCO World Heritage Sites, such as the Archaeological Site of Troy, City of Safranbolu, Diyarbakır Fortress and Hevsel Gardens Cultural Landscape. There are currently renovations taking place for the Soumela Monastery which hopes to be listed as another UNESCO World Heritage Site by 2020 and could offer further opportunities for tourism.
Turkey has developed an extensive cultural tourism offering through a range of folk and cultural festivals held throughout the year that are well marketed to tourists. Efforts are also being made to promote activity holidays in Turkey in the spring and autumn in order to combat the market’s tendency towards seasonality. There is also a growing winter sports market, with Turkey aiming to rival established ski-holiday destinations in Europe, such as Bulgaria and Austria. The Turkish Tourism Investors Association has recently noted its ambition to create a year-round tourism industry, expanding the core tourism season which is currently between 150 and 180 days over the peak summer months.
Istanbul is one of the most important destinations in the country and is the starting point for many visitors to Turkey. The city offers a broad array of attractions, including Aya Sofya, Topkapi Palace, the Blue Mosque and the Grand Bazaar, as well as numerous museums, galleries, shopping districts and a vibrant restaurant and café culture.
- Please address how political unrest in Hong Kong has affected hospitality industry.
AIRPORTS/AIR TRAVEL
Hong Kong is the world’s second busiest airport (after Dubai) and the World’s Busiest Air Cargo Hub
20.2% fall in flight bookings in HK
200+ flight cancellations
TOURISM
U.S, UK, Australia, Ireland, Singapore & Japan issued travel advisories
4.8% decrease in arrivals
Retailers suffering the most with 11.4% decrease in sales
HOTELS
STR reports:
OR 29.8%
ADR down 21%
REVPAr down 44.%
