Introduction of Tourism as an International Business

7/29/2019 Introduction of Tourism as an International Business

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INTRODUCTION OFTOURISM AS AN

INTERNATIONALBUSINESS


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What is Tourism?

Tourism is travel for recreational, leisure or business

purposes.

The World Tourism Organization defines tourists as people

who "travel to and stay in places outside their usual

environment for more than twenty-four (24) hours and 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."


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Pre-requisites of Tourism

Motivation

Destination

Free Time

Extra Money

Transportation

Accommodation


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In search of Food, Shelter and Protection

Trade, Health, Wars and Religion

In search of knowledge and studies

Use of Animals, Crude Transportations and Waterways

The Egyptians traveled for trade & leisure

Assyrians & Persians traveled by chariots, horses, and donkeys.

Aryans used horses for long distance travels through Asia &Europe.

Indus Valley people used boats and ships to travel up and down

the Indus River and Arabian Sea for trade, religion and military

expeditions.

Historical Perspective of Tourism


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Greeks & Romans traveled for military expeditions, trade, leisureand religion with more developed means of transport.

Europeans started travel for pilgrimage in around 5th Century withconcept ofHolyDays.

The Renaissance period (16th Century) brought establishment ofInns and Sarais along famous pilgrimage routes from Europe to

Jerusalem and the Great Silk Routes for trade between Central Asiaand the rest of the World.

With the advent of Islam, Hajj, Umrah, compilation of Hadith andIslamic Studies brought a new dimension to religious and studytours.

A few of great travellers Christopher Columbus, Ibn-e-Batuta,Hseun Tsang, Fa Hsien, Abu Rehan Alberooni, Marco Polo, Vascu DeGama etc.

During 19th Century, Rail travel increased, spas and sea resortswere developed.

Historical Perspective of Tourism


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Tourism Today

Means of Transportation: Aero-planes, Ships, Boats, Ferries, Trains, Buses,

Coaches, Cars etc.

Accommodation: Inns, Motels, Hotels, Resorts, Youth Hostels, Guest

Houses, Rest Houses

Purpose: Leisure, Recreation, Study, Religion, History,

Archaeology, Adventure, Culture & Nature, Visiting

Friends & Relatives etc.


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International tourism a key to

development, prosperity and well-being

Over time, an ever increasing number of destinations haveopened up and invested in tourism development, turning moderntourism into a key driver of socio-economic progress throughexport revenues, the creation of jobs and enterprises, andinfrastructure development.

As an internationally traded service, inbound tourism has becomeone of the worlds major trade categories. The overall exportincome generated by inbound tourism, including passengertransport, exceeded US$ 1.2 trillion in 2011, or US$ 3.4 billion aday on average. Tourism exports account for as much as 30% ofthe worlds exports of commercial services and 6% of overallexports of goods and services. Globally, as an export category,tourism ranks fourth after fuels, chemicals and food. For manydeveloping countries it is one of the main sources of foreignexchange income and the number one export category, creatingmuch needed employment and opportunities for development.


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International tourism a key to

development, prosperity and well-being

Tourisms direct contribution to GDP in 2011 was US$2trillion and the industry generated 98 million jobs.

Taking account of its direct, indirect and induced impacts,

Travel &Tourisms total contribution in 2011 was US$6.3trillion in GDP, 255 million jobs, US$743 billion ininvestment and US$1.2 trillion in exports. This contributionrepresented 9% of GDP, 1 in 12 jobs, 5% of investmentand 5% of exports.

Long-term prospects are even more positive with annualgrowth forecast to be 4% per annum over the ten years to2022.


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Long-term Trends

Over the past six decades, tourism has experienced continued

expansion and diversification, becoming one of the largest andfastest-growing economic sectors in the world. Many newdestinations have emerged, challenging the traditional ones ofEurope and North America.

Despite occasional shocks, international tourist arrivals haveshown virtually uninterrupted growth from 277 million in 1980to 528 million in 1995, and 983 million in 2011.

According to Tourism Towards 2030, UNWTOs recently updated,long-term outlook and assessment of future tourism trends, the

number of international tourist arrivals worldwide is expected toincrease by 3.3% a year on average from 2010 to 2030. Thisrepresents some 43 million more international tourist arrivalsevery year, reaching a total of 1.8 billion arrivals by 2030.


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Key Trends - 2012

In 2011, international tourism receipts reached a record US$1,030 billion, up from 927 billion in 2010. This represents a 3.9%

growth in real terms.

International tourist arrivals grew by 4% in 2012 to reach 1.035billion, according to the latest UNWTO World Tourism Barometer.Emerging economies (+4.1%) regained the lead over advanced

economies (+3.6%), with Asia and the Pacific showing thestrongest results. Growth is expected to continue in 2013 onlyslightly below the 2012 level (+3% to +4%) and in line withUNWTO long term forecast.

With an additional 39 million international tourists, up from 996

million in 2011, international tourist arrivals surpassed 1 billion(1.035 billion) for the first time in history in 2012. Demand heldwell throughout the year, with a stronger than expected fourthquarter.


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Key Trends - 2012

By region, Asia and the Pacific (+7%) was the bestperformer, while by sub-region South-East Asia, NorthAfrica (both at +9%) and Central and Eastern Europe(+8%) topped the ranking.

Europe holds the largest share of international tourismreceipts (45% share), reaching US$ 463 billion (euro 333bn) in 2011, followed by Asia and the Pacific (28% share orUS$ 289 billion, and the Americas (19% share or US$ 199billion. The Middle East (4% share) earned US$ 46 billion

and Africa (3% share) US$ 33 billion.


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Forecast for 2013

UNWTO forecasts international tourist arrivals to increaseby 3% to 4% in 2013, much in line with its long termforecast for 2030: +3.8% a year on average between 2010and 2020. This outlook is confirmed by the UNWTOConfidence Index. Compiled among over 300 expertsworldwide, the Index shows that prospects for 2013 aresimilar to the evaluation of last year (124 points for 2013against 122 for 2012).

By region, prospects for 2013 are stronger for Asia and thePacific (+5% to +6%), followed by Africa (+4% to +6%),the Americas (+3% to +4%), Europe (+2% to +3%) and

the Middle East (0% to +5%).


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Most travel by air and for the purpose

of leisure

In 2011, travel for leisure, recreation and holidays accounted forjust over half of all international tourist arrivals (51% or 505million arrivals). Some 15% of international tourists reportedtravelling for business and professional purposes and another27% travelled for other purposes, such as visiting friends and

relatives (VFR), religious reasons and pilgrimages, healthtreatment, etc. The purpose of visit for the remaining 7% ofarrivals was not specified.

Slightly over half of travellers arrived at their destination by airtransport (51%) in 2011, while the remainder travelled over the

surface (49%) whether by road (41%), rail (2%), or over water(6%). Over time, the trend has been for air transport to grow at asomewhat faster pace than surface transport, so the share of airtransport is gradually increasing.


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Most tourists travel in their own region

The large majority of international travel takes place within thetravellers own region, with about four out of five worldwidearrivals originating from the same region.

Traditionally source markets for international tourism have beenlargely concentrated in the advanced economies of Europe, the

Americas and Asia and the Pacific. However, with rising levels ofdisposable income, many emerging economies have shown fastgrowth over recent years, especially in a number of markets inAsia, Central and Eastern Europe, the Middle East, Southern Africaand South America.

Europe is currently still the worlds largest source region,generating just over half of international arrivals worldwide,followed by Asia and the Pacific (22%), the Americas (16%), theMiddle East (4%) and Africa (3%).


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Worlds Top Ten Tourism Destinations

(Tourist Arrivals)

2011Rank Country

Arrivals (millions)

Percentchange

2010/2009

Percentchange

2011/20102010 2011

1. France 77.1 79.5 0.5 3.0

2. USA 59.8 62.3 8.8 4.2

3. China 55.7 57.6 9.4 3.4

4. Spain 52.7 56.7 1.0 7.6

5. Italy 43.6 46.1 0.9 5.7

6. Turkey 27.0 29.3 5.9 8.7

7. UK 28.3 29.2 0.4 3.2

8. Germany 26.9 28.4 10.9 5.5

9. Malaysia 24.6 24.7 3.9 0.6

10. Mexico 23.3 23.4 4.2 0.5

:

Source: UNWTO


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Worlds Top Ten Tourism Destinations

(Tourism Receipts)

2011Rank Country

US$ in billion Change %

2010 2011 10/09 11/10

1. USA 103.5 116.3 9.9 12.3

2. Spain 52.2 59.9 -1.2 14.0

3. France 46.6 53.8 -6.0 15.6

4. China 45.8 48.5 15.5 5.8

5. Italy 38.8 43.0 -3.6 10.9

6. Germany 34.7 38.8 0.1 12.0

7. UK 32.4 35.9 7.5 10.9

8. Australia 29.8 31.4 17.4 5.5

9. Macao (China) 27.8 N/A 53.2 N/A

10. Hong Kong (China) 22.2 27.7 35.3 24.7


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Asia and the Pacific

In 2012, growth was stronger in emerging economies(+4.1%) as compared to advanced economies (+3.6%), atrend which has marked the sector for many years now.

Asia and the Pacific (+7%) was up by 15 million arrivalsin 2012, reaching a total 233 million international tourists.South-East Asia (+9%) was the best performing sub-regionmuch due to the implementation of policies that fosterintraregional cooperation and coordination in tourism.

Growth was also strong in North-East Asia (+6%), asJapanese inbound and outbound tourism recovered, while itwas comparatively weaker in South Asia (+4%) and inOceania (+4%).


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Asia and the Pacific growth driven

by South-East Asian destinations

Asia and the Pacific (+6%) recorded an increase of 13 milliontourist arrivals in 2011, reaching a total of 217 million. Growthslowed down compared to 2010 (+13%), largely due to theimpact of the Thoku earthquake and tsunami in Japan affectingboth inbound tourism to and outbound tourism from the country.

The Asia and the Pacific region earned US$ 289 billion in tourismreceipts, up US$ 34 billion from 2010, or a 4% increase in realterms. By sub-regions, South-East Asia experienced the highestgrowth in international arrivals (+10%), benefiting from strongintraregional demand. A large number of destinations reporteddouble-digit figures, with Myanmar (+26%), Cambodia, Thailand(both +20%) and Vietnam (+19%) posting the highest growth inarrivals. In absolute terms, Thailand recorded the largestincrease, with over 3 million more tourist arrivals, followed bySingapore (+1 million).


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Tourism Growth in South Asia 2011

In South Asia, Bhutan (+39%), Sri Lanka (+31%) and Nepal(+22%) boasted the highest growth in South Asia (+8%),followed by Maldives (+18%). India, the largest destination in thesub-region, recorded a 9% increase. Pakistan kept its slow growthby only 2.8%.

Growth was comparatively lower in North-East Asia (+4%) owingto the drop in arrivals in Japan (-28%) and the temporarydisruption of Japanese outbound travel, with expenditure oninternational tourism down by 11% in 2011. In contrast, both the

Republic of Korea and Hong Kong (China) posted an 11% increasein arrivals, while China saw more modest growth (+3%).


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THANK YOU

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Introduction of Tourism as an International Business