Lecture 01 - Intro to Tourism Industry (1) PDF

AN OVERVIEW & PERSPECTIVE OF THE TOURISM INDUSTRY (1) Official (Closed) and Non- Sensitive Learning Outcomes By the end of this lecture, you will be able to: ◦ Explain the concepts of tourism ◦ Explain the nature...

AN OVERVIEW & PERSPECTIVE OF THE TOURISM INDUSTRY (1) Official (Closed) and Non- Sensitive Learning Outcomes By the end of this lecture, you will be able to: ◦ Explain the concepts of tourism ◦ Explain the nature and demand for leisure tourism ◦ Identify the major stakeholders and forces shaping the tourism industry Official (Closed) and Non- Sensitive 3 Concepts of Tourism I. Movement of people II. A sector of the economy or industry III. A broad system of interacting relationships of people, their needs to travel outside their communities, and services that attempt to respond to these needs by supplying products. (similar to definition of Official (Closed) and Non- Sensitive Defining Tourism ◦ Used interchangeably with “travel” ◦ Definition: “Tourism comprises the activities of persons travelling to and staying in places outside their usual environment for not more than 1 consecutive year for leisure, business, and other purposes“ UN World Tourism Organization Official (Closed) and Non- Sensitive Defining Tourism ◦ Simply put, tourism is the activity of people taking trips away from home and the industry which has developed to cater to/support the needs of tourism ◦ Migrants ◦ Permanent residents ◦ Illegal immigrants Official (Closed) and Non- Sensitive 5 Characteristics of Tourism 1. An invisible export industry – an intangible product that consumers make a purchase without first seeing/experience it 2. Requires supporting goods and services – eg, expansion of infrastructure and services 3. Perishable – eg, if a hotel room is not booked one night, then the revenue is lost forever Not something you can put on the shelf and wait for someone to buy. Official (Closed) and Non- Sensitive 5 Characteristics of Tourism 4. Fragmented – consists of elements such as transport, accommodation, landscape & cultural resources… 5. Subject to external influences – ie, currency, politics, tourist motivation, tastes, climate Eg, Would you travel to a war-torn country now? Eg, During winter, some people travel to warmer climates for a holiday to get away from the cold Eg, Currency exchange rates can make a destination expensive/cheap Official (Closed) and Non- Sensitive Typical Reasons for Travel 1. Leisure/Pleasure (leisure, recreation, sightseeing, entertainment) 2. Business (meetings, conventions, etc) 3. VFR (visiting friends, family & relatives, social) 4. Other personal business (study, pilgrimages, religious, health) Official (Closed) and Non- Sensitive An Integrated Tourism Model External Environment Social / Tourism Service Economy Culture Suppliers Destinations Transportation Tourism Tour Promoters Operator Travel Agents Tourism Travelers Boards Meeting Planners F&B Attractions & Direct Entertainment Marketing Politics Accommodation Technology Environment Official (Closed) and Non- Sensitive An Integrated Tourism Model ◦Shows the dynamic and interrelated nature of tourism ◦The traveling public (tourists) are the focal point (heart) of the model ◦Tourism promoters link the traveling public with the suppliers of services ◦Tourism suppliers provide the services that tourists need when they travel ◦External forces affect all participants in tourism; tourists, promoters and suppliers Official (Closed) and Non- Sensitive External Environment Official (Closed) and Non- Sensitive External Environment THE TRAVELLER Official (Closed) and Non- Sensitive Tourist vs Excursionist Tourist: ◦Temporary visitors staying at least 24 hours in a destination outside their usual environment for leisure, business or other purposes. Excursionist: ◦Temporary visitors staying less than 24 hours in a destination outside their usual environment for leisure, business or other purposes (excluding travellers in Official (Closed) and Non- Sensitive Types of Travellers Three general types of travellers have been identified, according to the motivation and purpose or reason for the trip: ◦Leisure/Pleasure Travellers ◦Business Travellers ◦Personal Travellers Official (Closed) and Non- Sensitive Types of Travellers: Leisure/Pleasure Travellers ◦Travel for: ◦Leisure ◦Experience new cultures and environments ◦Recreation (including attending sporting and performance events) ◦Rest and relaxation ◦Sightseeing ◦Holidays ◦VFR Official (Closed) and Non- Sensitive Types of Travellers: Business Travellers ◦Travel for: ◦Business/work ◦Attend meetings, seminars, conferences, exhibitions, trade events ◦Incentive trips ◦ Reward for good performance, hitting the target, exceeding budgeted sales, etc ◦A lot of business travel is mixed with leisure…can’t be working 24/7! ◦ Business travellers may go sightseeing, shopping, gambling, etc while on business or when business is done Official (Closed) and Non- Sensitive Types of Travellers: Personal Travellers ◦ Travel for: ◦ Religious reasons (eg, pilgrimage) ◦ Medical treatment ◦ Study (overseas/foreign students) ◦ Personal challenge (eg, trekking across Tibet on foot) ◦ Others – eg, attend funeral, collect remains of dead loved-one, search for people, etc Official (Closed) and Non- Sensitive FIT vs Group Travellers ◦FIT = Fully/Free Independent Traveller ◦Not part of an organised group/tour group ◦Can be a leisure, business or personal traveller ◦Group Traveller ◦Travellers who are part of a larger, multiple-travellers booking ◦ Eg, package tour group, sports team, wedding party, etc Official (Closed) and Non- Sensitive 21st Century Travellers “New” tourism is characterised by: ◦More experienced and knowledgeable travellers = more demanding of value ◦Travellers who are more environmentally aware/concerned ◦Seeking: individualized (vs mass) products that are less predictable and full of surprises discovery and new experiences Official (Closed) and Non- Sensitive Tourism Demand: Push & Pull Motivations Push Factors: (due to personality, needs/wants) ◦ Desire for escape = from stress, noise, crowd, etc ◦ Rest and relaxation = peace and quiet ◦ Health/medical and fitness = medical treatment, spa, etc ◦ Adventure = bungee jumping, mountaineering, trekking, etc ◦ Prestige = eg, travelling on luxury cruise liner like QMII ◦ Social interaction = meet new people and new cultures ◦ Novelty-seeking = eg, visiting theme/amusement parks ◦ Exploration = due to interest/curiosity, scientific research ◦ Enhance relationships = honeymoon, family holiday, etc ◦ Learning new things = new things from new cultures/activities ◦ Desire for pampering/comfort = at luxury hotel/resort/spa ◦ Being entertained = attend concerts, theatre, sports, etc ◦ Hobbies = eg, motorcycling/driving group trip, etc Official (Closed) and Non- Sensitive Tourism Demand: Push & Pull Motivations Pull Factors: (by appealing attributes of destinations) Beaches Recreational facilities = skiing, scuba diving, snow boarding, etc Historical sites Budget = cheap! cheap! Cultural resources = ie, the fascinating culture of the place Undisturbed nature Ease of access Cosmopolitan environment = like NYC, London, Singapore, etc Opportunities to increase knowledge = eg, overseas Official (Closed) and Non- Sensitive Tourism Demand: The Motivation to Travel Official (Closed) and Non- Sensitive Factors Influencing Tourism Demand (from within Feeder Markets) 1. Economic a. Personal incomes b. Value of currency/exchange rates ◦ Affect decisions on: ◦ International vs domestic travel ◦ Increase/reduction in expenditure (leisure and business travellers) ◦ Increase/reduce in length of stay ◦ Method of travel Official (Closed) and Non- Sensitive Factors Influencing Tourism Demand (from within Feeder Markets) 2. Social a. Demographics (age, gender, occupation, religion, race, life-cycle stage, education, etc) affects motivation to travel (type of product/destination/etc) b. Leisure time ◦ Leave entitlements ◦ School holiday/vacation periods Official (Closed) and Non- Sensitive Factors Influencing Tourism Demand (from within Feeder Markets) 3. Political a. Taxation (eg, GST on imported shopping goods) b. Travel advisories/restrictions to certain destinations c. Other policies and restrictions Official (Closed) and Non- Sensitive Factors Influencing Tourism Demand (from within Destinations) 1. Economic ◦Price (expensive or cheap destination...) 2. Supply of Tourism Products/Services ◦Competition may lead to more value, choice, etc ◦Event or attraction at the destination 3. Political ◦Regulations on visitor quotas, visas, flights, currency, infrastructure, competition, etc 4. Promotional Efforts Official (Closed) and Non- Sensitive Factors Influencing Tourism Demand (from within Destinations) 5. Health, Safety & Security – terrorism, epidemics/ pandemics, war, social/political unrest... 6. Time & Cost – the faster visitors can access a destination, the more popular it will be (convenience and accessibility) 7. Seasonal Variations ◦ Escaping the heat/cold ◦ Experiencing different climates ◦ Volume of travel (demand) ◦ Holiday/vacation periods (school holidays, etc) ◦ Calendar related events Official (Closed) and Non- Sensitive Factors Influencing Change in Tourism Demand Factors that can’t be predicted: ◦ Economic impacts (stock market crash, exchange rates) ◦ Outbreak of war ◦ Terrorist attacks ◦ Disease (eg, COVID-19) ◦ Climate change (eg, tsunami, Hurricane Katrina) Official (Closed) and Non- Sensitive Factors Influencing Change in Tourism Demand Official (Closed) and Non- Sensitive Factors Influencing Change in Tourism Demand Factors that can be forecast: ◦ Social impacts (eg, aging population, LGBT market, rising incomes, knowledgeable travellers, etc) ◦ Technological impacts (eg, increased use of Internet for travel planning and purchases) ◦ Market changes (eg, budget airlines, A&P efforts, etc)