Singredrod Merged
Singredrod Merged
Singredrod Merged
PART
1
Public and Tourism
Promoters
Chapters
1 Introducing the World’s Largest Industry, Tourism
EXTERNAL
ENVIRONMENT
Society/Culture Economy
TOURISM SERVICE
SUPPLIERS
TOURISM
PROMOTERS Accommo-
dations
Destinations
Travel
Tour agents
operators
TRAVELERS
Incentive
and
Tourist Meeting
boards planners
Attractions & Food &
entertainment Direct beverages
marketing
Transportation
Environment Politics
Technology
Learning Objectives
After you have read this chapter, you should be able to:
1. Understand and explain the basic definition of 5. Explain why tourism should be studied from mar-
tourism. keting, management, and financial perspectives.
2. Identify the major participants and forces shaping 6. Identify future challenges and opportunities fac-
the tourism industry. ing the tourism industry.
3. Explain historical factors that encouraged the 7. Discuss career prospects in the tourism industry.
development of tourism activities.
4. Explain the impact of physical, human, and
regional geography on tourism activities.
Chapter Outline
Could a Career in Tourism Be in Your Future? Maps
Introduction Reading Maps
Indexes and Locators
Services and Tourism Scales
What Is Tourism? Legends
A Tourism Model Physical Geography
Landforms and Vegetation
The History of Travel and Tourism Water
The Empire Era Climate and Seasons
The Middle Ages and the Renaissance Era Human Geography
The Grand Tour Era Regional Geography
The Mobility Era
The Modern Era Studying Tourism from Business Perspectives
Marketing
Bringing Tourism into Focus Management
Geography Describes the Traveler’s World Finance
Lori purchased a central reservations business, which books lodging, destination activities,
and vacation packages for individuals and groups traveling to the southwest Colorado
region. Achieving success in this multimillion-dollar tourism operation hasn’t happened
by accident. Intensive employee training focused on the highest quality customer service
and constant technology investments (over $100,000 in just one year) keep Gateway Res-
ervations (http://www.gatewayreservations.com) on the cutting edge of service delivery.
As you approach the study of tourism, let your imagination soar, learning all you can
to prepare yourself to grow as your career advances. Like Bruce, who earned two degrees in
hospitality/tourism management and continues to maintain his Certified Hotel Administra-
tor (CHA) designation, never stop learning. The opportunities that await you are endless.
Introduction
Welcome to the study of a dynamic group of industries that have developed to serve
the needs of travelers worldwide—tourism! Tourism is the business of hospitality and
travel. Whether we are travelers or we are serving travelers’ needs, this exciting and
demanding group of visitor services industries touches all of our lives. In this book,
you will explore the many and varied segments of this multifaceted industry. As you
learn more about tourism, begin thinking about the future challenges and opportuni-
ties that lie ahead for all of these industries and how they may influence your life.
What Is Tourism?
As tourism-related activities have grown and changed, many different definitions and
ways of classifying the industry have emerged. Use of the term tourism has evolved
as attempts have been made to place a title on a difficult-to-define group of naturally
related service activities and participants. As we embark on our study of tourism, it is
helpful to begin with a common definition that has been accepted for decades: “the
temporary movement of people to destinations outside their normal places of work
and residence, the activities undertaken during their stay in those destinations, and the
facilities created to cater to their needs.”5
As our definition shows, tourism includes a wide array of people, activities, and
facilities, and most people would agree that it is a unique grouping of industries that
are tied together by a common denominator—the traveling public.
Can you describe tourism in your own words? Take a moment to think about this
question. You might find it easy to answer this question in general terms, but more diffi-
cult to answer if you were asked to provide specific details. In fact, you might find yourself
facing a task similar to the one depicted in Figure 1.1. Tourism is much like the elephant:
diverse and sometimes hard to describe, but, just like the elephant, too big to be ignored.
Specific segments of tourism, such as air transportation, theme parks, eating
and drinking establishments, lodging and accommodations, and museums, have
their own industrial classification codes in every industrialized country. However,
the overall grouping of related activities and organizations that come together to
create the more comprehensive tourism industry does not have its own distinctive
industry code. To address this concern organizations such as the WTTC and the
United Nations World Tourism Organization (UNWTO) have spearheaded efforts
to highlight the breadth and economic impact of tourism. Even though tourism
may not be classified as a distinct industry, it is generally agreed that “ ‘[t]ourism’
appears to be becoming an acceptable term to singularly describe the activity of
people taking trips away from home and the industry which has developed in
response to this activity.”6
FIGURE 1.1
The blind men and tourism.
Destinations
Transportation
Accommodations
Attractions and
Travel agencies
entertainment
Based on: International Recommendation for Tourism Statistics 2008, UNWTO, 42.
Both the WTTC and UNWTO track and report tourism statistics to highlight the
size, scope, and impact of tourism-related businesses. Comparable data from around the
world is made possible through the use of a common definition of tourists or visitors.
As defined by UNWTO, tourism is a social, cultural, and economic phenomenon, which
entails the movement of people to countries and places outside their usual environment
for personal or business/professional purposes. These people are called visitors . . . and
tourism has to do with their activities, some of which involve tourism expenditure.7 The
U.S. Travel Association has taken the commonly agreed upon definition of tourism and
restricted its scope by defining these activities as trips away from home of 50 miles or
more, one way, or trips that include an overnight stay in paid accommodations.8
By using a common umbrella definition, data can be collected and analyzed for
each of the industry subgroupings shown in Table 1.1 in Tourism Satellite Accounts.
Even as the debate continues for a common definition, it has been suggested that
the definition be expanded to include the concept of displacement. This inclusion would
expand the definition to capture, “the decision of tourists to leave the familiar behind in
order to participate in something new” (p. 122).9 Because definitions conjure up different
meanings and can be used for different purposes, some critics have suggested using a term
other than tourism to describe the industry. One of these suggestions has been to use a
more inclusive and descriptive term such as “visitor-service industry.”10 For convenience
and ease of understanding, however, we will refer to tourism as an industry in this book.
A Tourism Model
In an attempt to overcome some of the problems encountered in describing tourism,
the model presented in Figure 1.2 was developed to highlight important participants
and forces that shape the tourism industry. The model, like a photograph, provides a
picture that begins to capture the dynamic and interrelated nature of tourism activities.
This model can be used as a reference throughout the entire text. Although many of
the terms in our tourism model may not be familiar at this time, you will be learning
more about each one and its importance in later chapters.
As you study our tourism model, notice its open nature and how each of the seg-
ments is related to the others. Let’s begin our study of tourism by looking at travelers
(tourists), who serve as the focal point for all tourism activities and form the center
of our model. Radiating from this focal point are three large bands containing several
interdependent groups of tourism participants and organizations.
Individual tourists may deal directly with any of these tourism service suppliers,
but they often rely on the professional services provided by tourism promoters shown
in the first band of our model. Tourism promoters, such as travel agencies and tourist
FIGURE 1.2
An integrated model of tourism. EXTERNAL
ENVIRONMENT
Society/Culture Economy
TOURISM SERVICE
SUPPLIERS
TOURISM
PROMOTERS Accommo-
dations
Destinations
Travel
Tour agents
operators
TRAVELERS
Incentive
and
Tourist Meeting
boards planners
Attractions & Food &
entertainment Direct beverages
marketing
Transportation
Environment Politics
Technology
boards, provide information and other marketing services. Moving to the next band
of our model, we see key tourism suppliers who provide transportation, accommoda-
tions, and other services required by travelers.
Tourism suppliers may provide these services independently; they may compete
with each other; and, at times, they may work together. For example, airline, bus, rail-
road, cruise ship, and car rental companies may compete individually for a traveler’s
business. However, they may also team up to provide cooperative packages such as
fly–ride, fly–cruise, and fly–drive alternatives. Or, as airlines have discovered, they
must establish strategic alliances with many other carriers to provide seamless travel
across states, nations, and continents. Hotels and resorts may also compete against
each other for the same traveler’s patronage yet cooperate with transportation provid-
ers to attract tourists to a specific location. Service providers representing all segments
of the tourism industry may often work together to develop promotional packages
designed to attract tourists to destinations.
How closely these individuals and organizations work together is ultimately influ-
enced by the forces shaping the face of tourism activities. As our model shows, the tour-
ism industry does not operate in a vacuum. All of the participants, either individually
or as a group, are constantly responding to a variety of social/cultural, political, envi-
ronmental, economic, and technological forces. These forces may range from subtle
changes, which are noticeable only after many years, to more dramatic changes, which
have immediate and visible impacts. Examples of these forces can be found all around us.
Gradual changes may be noticed in destinations that were once fashionable but
eventually faded in popularity, such as Niagara Falls on the Canadian/U.S. border and
Brighton in England. Similar shifts can also be seen in transportation. Steamship pas-
sage across the North Atlantic was eclipsed by the faster and more efficient airplane,
which opened new horizons for travelers. Immediate impacts can be seen in sudden
shifts brought about by currency devaluations, wars, fuel shortages, natural disasters,
and economic conditions.11 Rapid adoption of new technologies such as the Internet
can have immediate and far-reaching impacts on tourism activities and service provid-
ers. A country that was once avoided may suddenly become a popular tourism destina-
tion because it is more affordable or accessible. Conversely, a once-popular destination
may be avoided because of a recent natural disaster or political upheaval.
The number of travelers from and to nations also varies dramatically due to political
and economic changes. Through the year 2020, Europe will continue to see the largest
number of tourist arrivals followed by East Asia and the Pacific and then the Americas.
At the country level, China will be the largest tourist receiving country by 2020, surpass-
ing France, and the United States.12 Now that China has developed a sizable middle class
due to its economic growth, it has become the biggest Asian nation in terms of outbound
travelers and a domestic market that is growing 15% to 20% a year.6,13
Let’s look at how our model might work. Suppose you (a tourist) want to visit a
sunny beach or a snow-covered mountain. You might begin planning your trip by brows-
ing the websites of different airlines, condominiums, hotels, and/or resorts (tourism
service suppliers) searching for possible flight schedules and accommodation options.
You could simply call a travel agent (tourism promoter) who would search out the best
alternatives to meet your needs, rather than spending time and money contacting each
supplier. Another option would be taking a “virtual trip” to your desired destination by
browsing offerings on the Internet. Finally, you could contact your preferred destinations’
local chambers of commerce or visitors’ bureaus to learn more about their offerings.
As you progress through this book, we will focus our attention on specific features
of our model, learning more about each component and how it interacts with other
components of the tourism industry. We will begin our journey into the study of tour-
ism by looking back in time to discover the origins of these activities and the founda-
tions they laid for tourism as we know it today.
Empire Era, which stretched from the time of the Egyptians to the Greeks and finally
came to an end with the fall of the Roman Empire. During this time, people began
traveling in large numbers for governmental, commercial, educational, and religious
purposes out of both necessity and pleasure. The Egyptian Kingdoms (4850–715 b.c.)
were the first known civilization to have consolidated governmental functions at cen-
tralized locations. Travel to these locations by boat was particularly easy because trav-
elers could use the Nile River, which flowed northward but was constantly brushed by
southward breezes. Because oars were not needed, travel in either direction was rela-
tively effortless. Boats could go north with the current or south with sails.
As travel became commonplace, basic necessities such as food and lodging had
to be provided. Several factors combined to encourage travel during the height of the
Egyptian, Greek, and Roman Empires. Large numbers of travelers began to seek out
enjoyable experiences in new locations. The most notable group of these travelers,
because of their numbers, was the Greeks.
The Greek Empire (900–200 b.c.) promoted the use of a common language
throughout much of the Mediterranean region, and the money of some Greek city-
states became accepted as a common currency of exchange. As centers of governmen-
tal activities, these city-states became attractions in themselves. They offered visitors a
wide variety of opportunities to enjoy themselves while away from home. Shopping,
eating, drinking, gaming, and watching spectator sports and theatrical performances
are just a few of the many activities that grew out of travel and evolved into the more
encompassing aspects of tourism.
The growth of the Roman Empire (500 b.c.–a.d. 300) fostered expanded tourism
opportunities for both middle-class and wealthy citizens. Good roads (many of which
were built to connect the city of Rome to outlying areas in case of revolt) and water
routes made travel easy. As these roads were developed, so were inns, which were
located approximately 30 miles apart, making for a day’s journey. Fresh horses could
be hired at the inns and at more frequent relay stations. With effort, people could
travel 125 miles a day on horseback, knowing they would have a place to eat and sleep
at the end of the day. These roads, which connected Rome with such places as Gaul,
Britain, Spain, and Greece, eventually extended into a 50,000-mile system. The most
famous road was the Appian Way, joining Rome with the “heel” of Italy.
Many of the hassles of travel to distant places were removed because Roman cur-
rency was universally accepted and Greek and Latin were common languages. In addi-
tion, a common legal system provided protection and peace of mind, allowing people
to travel farther away from home for commerce, adventure, and pleasure. Just like the
Greek city-states, cities in the Roman Empire became destination attractions or way-
side stops along the way to a traveler’s final destination.
Has this brief glimpse into ancient history taught us anything of use today? The
answer is yes. Even today, tourism activities continue to flourish where individuals have
free time; travel is easy and safe; there are easily exchangeable currencies; common lan-
guages are spoken; and established legal systems create a perception of personal safety.
The absence of any of these factors can dampen people’s desire to travel and enjoy
tourism-related activities, as can be seen in the demise of travel during the Middle Ages.
FIGURE 1.3
Venice
Marco Polo’s travel route
from his home in Venice, Constantinople Taitu
Italy, to China during the (Beijing)
13th century. Black Sea A S I A
Caspian
Sea
Acre
PERSIA
C H I N A
Hormuz
EAS
Persian INDIA BURMA
CHINA S
Gulf Bay
of
Arabian Bengal
AFRICA Sea
CEYLON
Indian Ocean SUMATRA
As the Roman Catholic Church gained power and influence, people began to talk
of Crusades to retake the Holy Land. There were nine of these Crusades (a.d. 1096–
1291), but each failed. In 1291, Acre, the last Christian stronghold, was retaken by the
Muslims, bringing the Crusades to an end. Although conquest and war were the driv-
ing forces behind the Crusades, the eventual result was the desire of people to venture
away from their homes to see new places and experience different civilizations.
After the Crusades, merchants such as Marco Polo traveled to places well beyond the
territories visited by the Crusaders (see Figure 1.3). Reports of Polo’s travels and adven-
tures (1275–1295) across the Middle East and into China continued to heighten interest in
travel and trade. The rebirth in travel emerged slowly during the Renaissance (14th–16th
centuries). Merchants began to venture farther from their villages as the Church and kings
and queens brought larger geographic areas under their control. Trade routes slowly began
to reopen as commercial activities grew and merchants ventured into new territories.
The idea of traveling for the sake of experiences and learning can probably be attributed
to the first recorded “tourist,” Cyriacus of Ancona. His journeys took him around the
Mediterranean Sea in a quest to learn more about and experience Greek and Roman His-
tory.14 The desire to learn from and experience other cultures heightened awareness of the
educational benefits to be gained from travel and led to the Grand Tour Era.
Although the desire to participate in the Grand Tour continued, the Industrial Rev-
olution, which began c. 1750, forever changed economic and social structures. Whole
nations moved from an agricultural and commercial focus to modern industrialism.
People became tied to the regimented structures and demands of factory life and the
management of business enterprises. Economic growth and technological advances led
to more efficient forms of transportation, the integration of markets across geographic
and international boundaries, and higher personal incomes for larger numbers of peo-
ple. Travel became a business necessity as well as a leisure activity, and tourism sup-
pliers rapidly developed to serve the growing needs of travelers. The days of leisurely
travel over extended periods of time to gain cultural experiences faded away as fewer
and fewer people were able to take advantage of these time-consuming opportunities.
Sources: Based on All work and no holidays (2002). Management Services, 46(2), 5; Bellows, K. (2003). Too little play time. National
Geographic Traveler, 20(8), 18; Allegretto, S., and Bivens J. (2006, July–August). Foreign Policy, 26–27. Dickey, J. Save our vacation,
(June 1, 2015) Time 180(20). Save our vacation, 44–49.
forced many people who had never traveled before to do so, and they were eager to
share their positive experiences with family and friends when they returned home.
Following the end of World War II, several additional factors helped encourage the
growth of tourism. Cars were again being produced in large numbers; gas was no lon-
ger rationed; and prosperity began to return to industrialized countries. As American
families travelled around the country in cars, the motel business began to boom. Also
in the 1950s, hotels and motels expanded quickly through the newly adopted franchis-
ing development model. The introduction of jet travel in the 1950s and its growing
popularity in the 1960s further accelerated growth in both domestic and international
travel. To grease the gears of the tourism industry even further, in 1950, the credit
card was born in the form of the Diners Club card. Credit cards provided travelers
with purchasing power anywhere in the world without the risk of carrying cash and
the hassle of currency exchange. In fact, credit cards are now the preferred form of
international buying power because travelers can charge their purchases in the local
currency. Time, money, safety, and the desire to travel combined to usher in an unpar-
alleled period of tourism growth that continues today.
The 20th-century phenomenon that came to be known as mass tourism now
includes two different groups of travelers.15 These groups are classified as organization
mass tourists who buy packaged tours and follow an itinerary prepared and organized
by tour operators. The second group is classified as individual mass tourists. These
travelers visit popular attractions independently but use tourism services that are pro-
moted through the mass media. In addition, many travelers are now seeking more than
just going to a destination to be able to say “been there, done that.” They have a desire
to become truly immersed in all the destination has to offer and when able to, give
back through educational and volunteer programs.
Well into the 21st century, the tourism industry has proven to be full of opportunities
and challenges. Widespread Internet access, opening of previously closed international bor-
ders, and increased wealth and mobility of citizens in increasingly industrialized countries
such as China and India are opening new venues for travelers and providing millions more
potential tourists. Even countries such as Vietnam and Cuba that were once off limits to
U.S. travelers are experiencing explosive tourism growth. However, the future is not com-
pletely rosy for tourism. Terrorism, political and economic instability, and health scares
have discouraged travel. Increased security efforts have also meant increased hassles and
time constraints for travelers at airports, borders, and attractions. Only time will tell what
the future holds for us, as tourism industry members and as consumers of tourism services.
This has been just a brief journey through some of the changes that have led to the
growth of tourism. In later chapters, we will explore more of the historical details and
importance of each of these changes as well as some of the more recent factors that
have shaped the tourism industry.
FIGURE 1.4
Typical reasons for travel. The percentages of
trips in each category may vary from year-to-
year, but they are relatively constant over time.
Business or professional: 20%; Visit friends or Visit friends
Vacation or leisure,
relatives: 40%; Vacation or leisure: 37%; Others: or relatives,
3%. Source: Travel Facts and Statistics. U.S. Travel 37%
40%
Association (2010).
Others,
3%
Business or
professional,
20%
Each of these perspectives provides important insights into tourism activities and
raises a variety of questions. Some of the more commonly asked questions that could
help us understand travel, tourism, and tourists include:
• Who are these visitors?
• Why do they travel?
• Where do they travel?
• What are their concerns when they travel?
• What are their needs when they travel?
• What forms of transportation do they use?
• Where do they stay?
• What do they do when they travel?
• Who provides the services they need?
• What impact do they have on the locations they visit?
• What types of career opportunities are available in this industry?
These and many other questions point to the need to study tourism.
Casual or commonsense approaches to answering these questions will not prepare
us to meet the needs of tomorrow’s visitors. Rather than studying tourism from only
one perspective, throughout this book you will have the opportunity to learn from
multiple perspectives. You will learn more about tourism in general, the segments of
the tourism industry, and the key issues facing tourism.
Technology continues to have an unprecedented effect on the tourism industry.
For example, the Internet has inexorably changed the way tourism services are sold
and automation is being adapted for new uses. Throughout the chapters of this text,
we will highlight how technology is affecting the service landscape. Technology plays
such an important role in the tourism industry that we will take a more in-depth look
at these impacts in Chapter 5.
Maps
What better place to start studying geography than with maps? For centuries, maps
have played a role in traveler’s plans and adventures. But, what are maps?
“Since classical Greek times, curiosity about the geographical landscape has
steadily grown, and ways to represent it have become more and more specialized.
Today there are many kinds of mapmaking, ….”17 Globes, photo maps, trail maps,
topographical maps, satellite image maps, and street guides should come to mind
when you think of maps and how to read them understanding basic cartography nota-
tions. However, these are only a few examples; other types of maps are also commonly
encountered. Mall diagrams, airport layouts, and even stadium and concert seating
diagrams are all forms of maps. “Like a model automobile or ship, a map is a scale
model of the real world, made small enough to work with on a desk or computer.”18
No matter how large or small, maps show you where you are and how to get to
where you want to be. Today, maps serve a variety of tourism purposes, as they are
created to depict scale models of reality and convey important information to users.
For smaller locations such as airports, theme parks, and historic districts, mapmaking
(technically plans) is fairly simple. However, for expansive areas such as continents or
countries, mapmaking is not quite as simple.
The Earth is a sphere, so the most accurate map of the world is a globe; but car-
rying around a sphere that is big enough to provide any level of detail is a physical
impossibility. So, although these spheres make attractive conversation pieces and let
608
458
308
158
Equator 08
158
308
458
FIGURE 1.5
Mercator projection. Source: Semer-Purzycki, Jeanne, Travel Vision: A Practical Guide for the Travel, Tour-
ism and Hospitality Industry, 1st Ed., © 2009, p. 47. Reprinted and Electronically reproduced by permission of
Pearson Education, Inc., Upper Saddle River, NJ.
us visualize the complexity of our world, they are not very practical travel compan-
ions. For practical purposes, maps must be flat, which results in distortion, meaning
features don’t appear exactly as they are when large areas are involved no matter how
they are drawn. The most common of these representations is the Mercator projection
(see Figure 1.5), and like most early maps, it was developed for navigation purposes.
In addition to the Mercator projection, two other representations of the world are
used. One is the Robinson projection (see Figure 1.6) and the other is Goode’s homolosine
projection (see Figure 1.7). No matter what approach is taken to represent the Earth in a
two-dimensional format, some distortion will occur. The Mercator projection distorts the
Arctic and Antarctic regions, making them appear larger than they really are. For example,
Greenland appears to dwarf Australia, when in fact Greenland is only about one-fourth
the size of Australia, having a landmass of 2,175,600 square kilometers compared with
Australia’s landmass of 7,617,931 square kilometers. The Robinson projection provides
a more accurate view of the world, but it, too, results in some distortion, especially at
the poles, which appear to be larger than they really are. Goode’s homolosine projection,
which resembles a flattened orange peel, creates the most accurate view of the Earth and
creates the least amount of distortion. Because the world is round, whichever projection is
used, the shortest distance between two points is not a straight line, but a curved one.
Current information technologies allow travelers access to maps in a num-
ber of different formats, including the traditional two-dimensional drawings,
three-dimensional drawings, satellite images, and actual video images of the locations
shot from the street. These can be accessed from computers or a number of mobile
devices. The three-dimensional drawings simulate real view of the locations and reduce
the two-dimensional challenge of distortion.
Reading Maps
As the previous representations of the world show, not all maps are created alike.
However, once you master the basic language of mapmaking, cartography, you can
FIGURE 1.6
Robinson projection. Source: Semer-Purzycki, Jeanne, Travel Vision: A Practical Guide for the Travel, Tour-
ism and Hospitality Industry, 1st Ed., © 2009, p. 47. Reprinted and Electronically reproduced by permission of
Pearson Education, Inc., Upper Saddle River, NJ.
FIGURE 1.7
Goode’s homolosine projection.
Source: Semer-Purzycki, Jeanne. Travel
Vision: A Practical Guide for the Travel,
Tourism and Hospitality Industry, 1st
Ed., © 2009, p. 47. Reprinted and Elec-
tronically reproduced by permission of
Pearson Education, Inc., Upper Saddle
River, NJ.
interpret any map. Unlocking this information requires understanding of basic carto-
graphic notations, that is, geographic grids (longitude and latitude), legends (symbols
and colors), and indexes (location guides).
“Twenty-first-century maps are more than just maps—they are analytical tools
referred to as geographic information systems (GIS) and are part of a larger field of
study called geographic information science (GIScience).”19 Every map has several
things in common. They all will serve as a means of location. The most common
means of determining location is via latitude and longitude. Every place on Earth can
be located by knowing these two pieces of information.
Finding a location’s latitude and longitude relies on two imaginary lines that divide
the Earth. One is the equator located halfway between the North and South Poles.
Distances moving north or south from this line are measured in degrees of latitude.
The other imaginary line is the prime meridian, running north and south through
Greenwich, England, and connecting the two poles. Distances moving east and west
from this line are measured in degrees of longitude. These lines intersect at right angles,
forming a grid (see Figures 1.5–1.7). So, you could locate Christchurch, New Zealand,
on a map by knowing the coordinates, 43°32¿S and 172°38¿E; or if you were given the
coordinates 44°57¿ N and 93°16¿ W, you would find Minneapolis, USA.
On the opposite side of the Earth from the prime meridian is the International
Date Line separating east from west. This line is not a straight longitudinal line, but
it corresponds fairly closely to 180° longitude, and just like the prime meridian, it
extends from the North to the South Pole. This line has been set by international agree-
ment and separates one calendar day from the next. Areas to the west of the Interna-
tional Date Line are always one day ahead of areas to the east. Therefore, Pacific Rim
and Asian countries are one day ahead of the United States and Canada, and several
hours ahead of European countries.
Scales
Maps are replicas of reality, so they must be smaller than the area depicted. Therefore,
everything shown on a map must be proportional, which requires a map scale. The
scale will be indicated on the map. Examples of scales may include notations such as
1– equals one mile or 1– equals ten miles. Scales may also be shown as graphic or bar
scales. Figure 1.8 provides several examples of how scales may be used on maps.
Legends
Symbols or icons are often used on maps to indicate points of interest, services, and
attractions. These legends save space, locating and drawing attention to everything
from capital cities, roads, airports, marinas, and waterways to restaurants, museums,
roadside parks, points of interest, and campgrounds. When searching for the legend,
also take a look at the date the map was produced. The more recent the date, the more
accurate the map should be. Finally, you may find several maps using similar notations
grouped together in atlases.
Maps are important tools in geography, but there is more to geography than spin-
ning a globe and placing your finger on Tibet or locating the home of the Taj Mahal.
For tourism professionals, geography includes knowledge of the physical and human
characteristics that influence travel activities.
Information provided through three broad categories of geography—physical,
human (cultural), and regional—will enable you to learn more about locations around
the world and to provide others with that information without ever having to visit
those locations. Let’s look at how you might use some of these basic geographical con-
cepts in a variety of settings.
Lake 10 Jacksonville
N.E. 3RD
17
98 St Augustine COURT CNB
AVE.
75
HOUSE BANK BURDINES
FT. MATANZAS N.M.
Ocala E. FLAGLER ST.
41 95
OCALA
N.F. Daytona Beach
GUSMAN
4 FEDERAL Metromover PHILHARMONIC
CAPE CANAVERAL HALL
Orlando BUILDING
19 S.E. 1ST ST.
4
ROYALTON
275 192 Melbourne
HOTEL
FLOR
Tampa S.E. 2ND ST.
St.
Petersburg 27
IDA’S
98 Metromover
Sarasota
FLORIDA S.E. 3RD ST.
HOLIDAY INN
T UR
75 98
Lake
NPI KE
Okeechobee Ft. Pierce
Metrorail
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1:1,000,000 1:100,000
FIGURE 1.8
Map scale. The four maps show Florida (upper left), south Florida (lower left), Miami (lower right), and
downtown Miami (upper right). The map of Florida (upper left) has a fractional scale of 1:10,000,000.
Expressed as a written statement, 1 inch on the map represents 10 million inches (about 158 miles)
on the ground. The bar line below the map displays the scale in a graphic form. Look what happens to
the scale on the other three maps. As the area covered gets smaller, the maps get more detailed, and
1 inch on the map represents smaller distances. Source: Rubenstein, James M. Cultural Landscapes:
An Introduction to Human Geography, 8th Ed., © 2005. Electronically reproduced by permission of Pearson
Education, Inc., Upper Saddle River, NJ.
Physical Geography
Knowledge of physical geography provides the means to identify and describe natural
features of the Earth, including landforms, water, vegetation, and climate. When these
natural features are combined, they create an environment that can either encourage
or discourage tourism activities. For example, during winter months in the Northern
Hemisphere, visitors might be attracted to snow-covered mountains for skiing or to
warm sun and sandy beaches for a break from the harsh realities of winter. As the
seasons change, these same physical attributes could deter tourism. As the snow melts
and mud appears, the mountains may lose their appeal. The same can be said for the
once-sunny beaches as the rainy season arrives.
Water
Most of the world (over 70%) is covered by water, and most of this water is saltwater;
so it should come as no surprise that tourism professionals should know something
about oceans, seas, gulfs, lakes, and rivers. These bodies of water are the playgrounds
for today’s cruise lines and river barges, but they were once the primary corridors
of transportation. Because water transportation was the first means of moving large
numbers of people and cargoes, it is easy to see how cities formed as people congre-
gated around and along major bodies of water.
Even today, water, and especially water currents, can have dramatic impacts on
land temperatures and the amount of moisture that falls. Ocean currents rotate clock-
wise in the Northern Hemisphere but counterclockwise in the Southern Hemisphere.
Thus, the warm Atlantic currents of the Gulf Stream and the North Atlantic Drift keep
Ireland and England green almost year-round even though both are located far north of
the equator. Likewise, the cold waters of the Indian Ocean are still cool as they move
north up the west coast of Australia (the West Australia Current). Even large inland
bodies of water can significantly affect weather patterns. For example, the warmer tem-
peratures of the Great Lakes produce large amounts of snow in the winter as warmer
moisture from the lakes collides with the cold landmass. In addition to bodies of water,
levels of precipitation (see Figure 1.9) affect population densities and tourism activities.
M01B_COOK4488_06_SE_C01.indd 22
80°
ARCTIC OCEAN
ARCTIC OCEAN
70° 70°
Arctic Circle
ATLANTIC PACIFIC
OCEAN
10° 10° 10°
140° 130° 120° 110° 100° 90° Equator 40° 10° 0° 50° 60° 70° 80° 90° Equator 140°
0° 0°
INDIAN OCEAN
10° 10° 10° 10° 10°
ATLANTIC 120° 140° 150° 160° 170°
CORAL SEA
Inches Centimeters OCEAN
20° 20° 20° 20° 20° 20° 20°
Over 80 Over 200 Tropic of Capricorn Tropic of Capricorn
60–80 150–200
30° 30° 30° 30° 30° 30° 30°
40–60 100–150
20–40 50–100
Under 10 Under 25
110° 120° 130° 140° 150° 160° 180°
50° 50° 50° 50° 50°
0 1,000 2,000 3,000 MILES
FIGURE 1.9
World mean annual precipitation. Precipitation varies greatly from one part of the world to another. Moreover, there is considerable variability in precipitation from one year to the next.
Variability is usually greatest in areas of limited precipitation. Source: Clawson, David L., Fisher, James, Aryeetey-Attoh, Samuel A., Theide, Roger, Williams, Jack F., Johnson, Merrill L., Johnson,
Douglas L., Airriess, Christopher A., Jordan-Bychkov, Terry G., and Jordan, Bell. World Regional Geography: A Development Approach, 8th Ed., © 2004, pp. 36–37. Reprinted and Electronically repro-
duced by permission of Pearson Education, Inc., Upper Saddle River, NJ.
06/03/17 8:46 PM
Chapter 1 ▸ Introducing the World’s Largest Industry, Tourism 23
The geography of the Greek Island, Santorini—caldera, calm Mediterranean water, and
mild weather—makes it a popular vacation destination. Photo by Cathy Hsu
regions extend to the Tropic of Cancer to the north and the Tropic of Capricorn to the
south. The north temperate climate extends from the Tropic of Cancer to the Arctic Cir-
cle, and the south temperate climate extends from the Tropic of Capricorn to the Antarc-
tic Circle. Above and below these lines are the North and South Polar zones.
In tropical zones, temperatures are mild, with little variation throughout the year.
In contrast, the temperate zones are noted for their four-season temperatures. Polar
zones are the exact opposite of the tropical zones, staying below 0°F most of the year.
In addition to the natural features, location and accessibility are key factors that
will influence the level of tourism activity. But geography is more than just landforms,
water, vegetation, and climate. It also includes people.
Human Geography
The exhilaration of experiencing other cultures is enjoyed by many through languages,
foods, beverages, products, arts, and crafts that are typical to particular locations.
Simply being in a different location and participating in daily activities can be an
adventure in itself. An understanding of human (cultural) geography provides specific
types of information that can enhance any tourism experience.
Human geography, which includes people and economic activities, creates the rest
of the picture that can be captured and explained through maps. Culture, as expressed
through language, religion, dress, foods and beverages, and other customs, plays a
critical role in the popularity of many tourism destinations. Other factors such as pol-
itics and economic conditions can also play an important role in the ease of travel,
especially across international boundaries. Governments can encourage or discourage
tourism through passport and visa requirements as well as through policies relating to
taxation or the ease of currency exchange.
For example, English is the most commonly spoken language in the industrialized
world, but it may not be spoken in some locations. In other locations, Chinese, French,
Spanish, Russian, Japanese, or a host of other languages may be common. Although
this might create a language barrier for some, it can create opportunities for others
who provide interpretation or tour services.
Human geography allows travelers to become aware of cultural norms and reli-
gious expectations so they do not commit social blunders. In some countries, it is com-
mon practice for businesses to close on certain days and times because of accepted
cultural norms or for religious reasons. For example, all commercial activity ceases in
many Middle Eastern countries during designated prayer times.
Regional Geography
The level of tourism interest and activity in a specific area often depends on a combination
of both physical and human geography that comes together, making certain locations more
attractive than others. It may be curiosity or a combination of natural as well as developed
features and attractions that meet visitor wants, needs, and expectations. Regional geog-
raphy is a useful framework for studying the physical and human geography of a specific
area or location, providing a convenient way to organize a wide variety of facts.
For example, locations near large population centers combined with access to
well-developed transportation systems generally create high levels of tourism activity.
Climate also influences the level and type of tourism activity. Factors such as time of year,
geographic location, and proximity to major bodies of water all contribute to demand.
This may explain why the most popular tourist destinations in Europe can be found
along the Mediterranean Sea and in Asia around the South China Sea. We can see a sim-
ilar pattern in the United States, as six of the top ten locations for domestic travelers are
located near major bodies of water: Arizona, Arkansas, California, Colorado, Florida,
Hawaii, Nevada, New York, Texas, and Washington, D.C. Similar patterns can be seen
all along the shores of Costa Del Sol in Spain and the Sunshine Coast in Australia.
Regions also play an important role in the development and promotion of tour-
ism activities. The Gold Coast in Australia, the Pearl River Delta in China, the Alps in
Europe, and the Rocky Mountains in North America form natural regions of tourism
activities that cross political boundaries. Smaller regions such as the wine-growing regions
of California, Washington, New York, France, Germany, Italy, and Spain also attract
a great deal of tourism activity and have become popular destinations. Other regions
Tourism in Action
Geographic Information Systems (GIS)
An enormous challenge to any business in the tourism industry is managing information. Who are the many
different guests of the business? Where do they come from? What do they have in common and how do their
needs differ? What time of year do they come and how long do they stay? What qualities and services do we have
or need to develop to fit visitor lifestyles? The questions are endless and so is the amount of data generated by
the answers. As introduced in this chapter, the ability to segment markets and serve them profitably is a critical
component to competing successfully in the global tourism industry. So how do you put all the data into clear,
easy-to-use information and put it into the hands of people to use it? One answer is to use a GIS for presentation
and spatial data analysis (information linked to geographic location).
A GIS is a set of computerized tools, including both hardware and software. GISs are used for collecting, stor-
ing, retrieving, transforming, and displaying spatial data. An easier way to think of GIS is as a marriage between
computerized mapping and database management systems. In other words, anything that can appear on a map
can be fed into a computer and then compared to anything on any other map, and everything on any map can have
layers of data and information attached. GIS is a powerful technology and its potential uses are endless. GISs are
now being used to locate park and recreational facilities, to generate site specific economic and environmental
impact information on tourism activities, and to track tourist movement so as to evaluate and optimize tourist flow
and refine tourism product offerings.
may be defined by specific boundaries such as the Valley of the Kings in Egypt, the Lake
District in England, Canada’s Capital Region, Chicagoland, and the French Riviera.
Geography provides a foundation to help us understand why people visit or fail
to visit certain areas, but we also need to learn how to meet their needs efficiently
and effectively as they travel. The three primary interrelated business functions—
marketing, management, and finance—add the structure to our foundation, providing
many of the tools necessary to plan and meet current and future needs of travelers.
Let’s look at how these business functions work together in the tourism industry.
Marketing
Studying tourism from the marketing approach provides valuable insight into the
process by which tourism organizations create and individual visitors obtain desired
goods and services. Everyone who has either worked in or used tourism-related ser-
vices knows that customers (visitors and guests) can be very demanding. The more
you know about these travelers and how to meet their needs, the more successful you
will be as a hospitality and tourism professional. In fact, individuals and organiza-
tions who attempt to understand and meet the needs of these visitors successfully are
practicing what is called the marketing concept, an organizational philosophy centered
around understanding and meeting the needs of customers.
Marketing theorists have coined a variety of phrases to describe the philosophy of
an organization.20 The “production orientation” organization views its mission to pro-
duce its product most efficiently and customers will simply arrive to purchase whatever
is produced. In a noncompetitive, high-demand environment, this orientation works.
Consider the gasoline industry. A second philosophy is the “sales orientation.” Under
this philosophy, an enterprise produces its product but it needs an effective (even pushy)
sales force to encourage customers to buy all of the organization’s production. This phi-
losophy is frequently exhibited at large city hotels. The hotels have an inventory they
need to “move,” and it is the role of their sales staff to fill those beds each night and
bring in those conventions and wedding receptions to fill those ballrooms!
Notice that neither of these orientations focuses on the needs or wants of the cus-
tomer: The focus is on the “need” of the organization to produce and sell. A third
philosophy, the heart of marketing, places the customer at the core of a firm’s pro-
duction or service delivery purchase. This newer philosophy is called the “consumer
orientation” and requires that organizations determine what customers really want
and need in a product or service so that a firm’s offerings closely fit what is wanted by
consumers, and therefore selling the firm’s offerings becomes much easier.
Meeting visitor needs relies on a complex set of tools and techniques that is
referred to as the marketing mix. The marketing mix consists of four variables that
are often called the four Ps of marketing: product, price, place, and promotion. Prod-
uct refers to the good or service that is being offered. Price is the value of the good or
service. This value is the amount of money that will be paid as well as the time “given
up” to obtain the good or service. Place includes the location and the activities that are
required to make the good or service available to the visitor. Finally, promotion refers
Communications with tourists can take various creative means. Photo by Cathy Hsu
to all of the activities that are undertaken to communicate the availability and benefits
of a particular good or service. Just think about yourself or someone else who is travel-
ing to another city to attend a concert. How can each of the variables in the marketing
mix come together to make that trip a memorable experience?
Although tourists, as a whole, are a very diverse group, they can be divided
into subgroups or market segments. Market segmentation allows an organization to
develop the most appropriate marketing mix to meet the needs of specifically targeted
visitor segments effectively and efficiently. For example, would a young college student
want the same types of experiences at Disney World as a family would want?
Each market segment contains individuals who share many of the same characteristics
and common needs. For example, businesspeople may need to get to their destinations as
quickly as possible, whereas the summer vacationers may want to take the most leisurely
and scenic route. Young college students may need to locate inexpensive accommodations
at their destinations, whereas conventioneers may need to stay at the hotel that is hosting
the convention, regardless of price. Some visitors may be seeking a variety of entertaining
outdoor activities, whereas other visitors are interested in shows and shopping. This list of
examples could go on, but the point should be clear: As organizations plan to meet these
differing needs, they can no longer afford to try to serve the needs of all visitors. They sim-
ply do not have the resources to reach everyone and meet their diverse needs successfully.
You will learn more about the importance of marketing and its role in meeting tour-
ists’ needs in the following chapters. As we explore the many facets of the tourism indus-
try, think about yourself as well as other specific groups of visitors who are being served
and how these targeted individuals shape marketing as well as management decisions.
Management
Management furnishes additional tools and techniques to serve visitor needs suc-
cessfully. Management, just like marketing, is essential to the continued success of
all organizations, both public and private. The study of management provides a uni-
fied approach to planning, organizing, directing, and controlling present and future
actions to accomplish organizational goals. As our model depicts, economic, political,
environmental, sociocultural, and technological forces affect all tourism organizations
and play a key role in the development of strategic plans.21 Managers need to under-
stand each of these forces and how they will impact decisions as they plan for the future.
Basically, management is the common thread that holds any organization or activ-
ity together and keeps everyone moving in the same direction. For example, managers
working for the Forest Service must decide how many people can comfortably use a
campsite and when and where new campsites should be built. Government planners
and administrators must make decisions about the desirability and necessity of new
or expanded highways, airports, and shopping facilities. Restaurant managers must
decide how many employees are needed to provide high-quality service and, at the
same time, make a fair profit. Resort managers must decide whether or not to expand
and what level of service to offer. Think back to that trip you were asked to plan ear-
lier in the chapter, and you will begin to see how all of the management functions must
fit together to have a successful experience.
The process might go something like this. After you mentioned the possibility of
renting a cottage at the beach to enjoy some sun, surf, and sand, several of your friends
asked if they could go with you. The first management function used in putting this
trip together is planning: where to go, how to get there, and how many will go. Once
these decisions are made, the next function used is organizing. You are using the orga-
nizing function when you assign someone to search the Web for more information and
decide who will make reservations, who will buy food and refreshments, and who will
call everyone to make sure each person shows up on time on the day of departure.
The next logical step you would use in putting together your trip would be the
directing function. You are directing as you answer questions and coordinate all of
your planned activities. Finally, you will use the controlling function. You are con-
trolling as you check maps, directions, itineraries, and reservations to ensure the
success of your trip. Although the activities may be more complex, managers in all
tourism-related activities are constantly going through the same types of processes.
Finance
Studying tourism from a financial approach provides a basic understanding of how
organizations manage revenues and expenses. To continue operating and providing
services, tourism organizations must strive to generate revenues in excess of expenses
or effectively and efficiently use the financial resources they have been allocated. Even
nonprofit and government organizations are being called on to generate more of their
own funding and to gain better control of their expenses.
By definition, a business is an organization operated with the objective of making
a profit from the sale of goods and services. Profits are revenues in excess of expenses.
They are used as a common yardstick to represent financial performance and are the
ultimate measure of financial success. However, some tourism organizations such as
governmental agencies, museums, visitors and convention bureaus, and hotels asso-
ciations may be classified as nonprofit. Even though they may not technically operate
with a profit motive, most still strive to generate revenues in excess of expenses. For
simplicity, we will use the generic term business in our discussion of financial concepts.
To use and communicate financial information, a common language must be spo-
ken. That language is known as accounting, which is often called the “language of
business.” Accounting is an activity designed to accumulate, measure, and commu-
nicate financial information to various decision makers, such as investors, creditors,
managers, and front-line employees. One of the purposes of accounting information
is to provide data needed to make informed decisions. There are two main categories
of financial reports: internal and external. Internal financial reports are used by those
who direct the day-to-day operations of a business. External financial reports are used
by individuals and organizations that have an economic interest in the business but are
not part of its management.
Three basic building blocks are used to measure financial success:
1. Margin (the amount of each sales dollar remaining after operating expenses
have been deducted)
2. Turnover (the number of times each dollar of operating assets has been used
to produce a dollar of sales)
3. Leverage (the extent to which borrowed funds are being used)
When these three components are multiplied together, they equal return on invest-
ment (ROI), which measures profit. The ability to operate profitably is critical to tour-
ism organizations because they are typically faced with low margins, high turnover, and
the need to use leverage (other people’s money). As can be seen in Figure 1.10, man-
aging these three components is a delicate balancing act, and tourism is an industry in
which every nickel counts and profits depend on recognizing the importance of pennies.
Since margins are so low for most tourism service providers, many segments of
the industry are adding convenience charges on to their service offerings to improve
profitability—for example, airlines charge for food, entertainment, and specific seat
reservations; hotels charge for early check-outs on reservations, spa and gym access;
cruise lines charge for specialty restaurants on-board; car rental companies charge for
GPS navigation systems; and restaurants charge for premium seating locations. As
tourism service providers search for profitability, these lists will only continue to grow.
Let’s look at some practical examples of how these building blocks for financial success
might work in specific segments of the tourism industry. In its simplest form, margin (50¢
or 5¢ for each dollar in revenue) for a food-service operator serving a hamburger and fries
would be the sales price ($10.00) minus the cost of preparation, ingredients, and service
($9.50). Keep in mind that out of that 50¢ margin, businesses must still pay taxes to local
and national governments. Airlines would measure turnover by the number of times a seat
Seats
High Low
margin Room margin
Passenger
nights
s
miles
or
sit
Vi
Leverage:
"other people's money"
FYI Hospitality
Legend has it that New England sea gates in front of their homes to let it pineapple has since been known as a
captains, after returning from a voy- be known that all were welcome. The symbol of hospitality!
age, speared a pineapple on the iron
was sold during a 24-hour period. Leverage is an indication of how much money has been
borrowed or invested in a business. For example, a ski resort wanting to add a new gondola
might go to a bank or investor to get the money needed for this expansion. We will explore
the importance of finance in later chapters as we examine specific industry segments.
Remember the analogy of the elephant? Financial information is much like the
elephant’s nervous system. Just as the elephant’s nervous system allows it to respond
to its environment, an organization’s financial information system allows it to read its
environment and move in the direction of profitable operations.
Basic knowledge of geography, marketing, management, and finance concepts
will provide many of the tools needed for your future success in the tourism industry.
However, the importance and practice of hospitality must be added to these basic con-
cepts. To make a profit, managers must use their marketing and management skills to
extend hospitality and high-quality service that meet guests’ needs. We will explore the
importance of providing hospitality and delivering service quality in Chapter 3.
• Will the expansion of the use of technology by tourism suppliers lead to a “low-
touch” service that is less appealing to guests?
• As tourism service activities continue to grow, will an adequate workforce with
the necessary skills be available?
• Will tourism change the social structure of countries and communities when they
experience increased tourism activities?
• Will the threat of terrorism continue and spread around the globe, decreasing
potential travelers’ sense of security and thus decreasing the level of international
travel?
These are only a few of the questions that may arise as plans are made to respond
to the demands of tourism growth. Information presented throughout this book will
provide you with the fundamental knowledge necessary to begin forming your own
opinions and possible answers to many of the questions and issues that you will face as
decision makers of tomorrow.
As you search for answers to the future of tourism, let your thoughts and actions
be guided by ethical principles. Although most people can easily distinguish between
right and wrong based on their own personal experiences, they are often faced with
decisions where it is difficult to make these clear distinctions. In an effort to promote
ethical behavior, organizations often publish codes of ethics to help guide individuals
in their daily activities and decisions.
Even without the help of a code of ethics, there are some very simple questions
you can ask yourself about any situation or problem to identify ethical and unethical
behavior:
• Will someone be hurt in this situation?
• Is anyone being coerced, manipulated, or deceived?
• Is there anything illegal about the situation?
• Does the situation feel wrong to you?
Tourism in Action
World Tourism Organization
The World Tourism Organization (UNWTO), an agency of the United Nations, serves the world as a global source
of tourism information and skill development. Headquartered in Madrid, Spain, the UNWTO boasts 144 member
countries and over 300 affiliate members from the private sector and other tourism organizations. Begun in 1925,
the UNWTO, through its various programs and committees, aids countries in developing tourism and its benefits.
For example, the UNWTO was instrumental in the Silk Road Project aimed at revitalizing the ancient highway
through Asia. The UNWTO’s Business Council works hand-in-hand with private-sector members to strengthen
public–private sustainable tourism efforts. The UNWTO also is a major publisher of important tourism resources,
offering more than 250 titles in four official languages.
A critically important role of the UNWTO is its collection of global tourism statistics. Its international standards
for tourism measurement and reporting provide a common language that allows destinations to compare tourism
revenues and other data with those of competitors. The UNWTO is recognized as the world’s most comprehensive
source of tourism statistics and forecasts. In 2000, the United Nations approved the UNWTO’s Tourism Satellite
Account methodology. This method helps ensure the measurement of the tourism industry’s true economic con-
tribution in terms of gross domestic product, employment, and capital investment.
To learn more about the UNWTO and its structure and activities, visit its website at http://www.unwto.org.
of each major section give you an opportunity to apply your knowledge to real-
world situations.
Questions and exercises at the end of each chapter will allow you to check your
knowledge and apply the concepts you have learned. You will also have an opportu-
nity to think about some of the challenges and ethical issues facing participants in the
tourism industry. We sincerely hope that you enjoy the journey as you study all this
multifaceted industry has to offer!
Summary
The study of tourism will introduce you to one of the larg- development and interdependence of the participants and
est and fastest-growing industries in the world. As shown forces shaping the tourism industry. Based on this foun-
in our model, tourism is a multifaceted service industry dation, and recognizing the importance of geography to
that has a rich history and exciting future marked by many travel and tourism, we will explore all of the components
challenging opportunities. The career opportunities created of the industry on an individual basis and in an economic,
from serving the needs of travelers are almost limitless. political, environmental, and social context.
Our journey into the study of tourism began with a As you learn the concepts and terminology of tour-
brief look back in history. History provides many import- ism, you will gain an appreciation for how the industry
ant lessons that help explain the growth and significance of has developed and you will be equipped to gain more from
travel in world economies. In fact, the lessons to be learned your travel experiences or understand and meet the needs
from history can still be used to help plan for and serve the of others as they travel. Finally, if you decide to become a
needs of travelers today and in the future. Travel continues member of this industry, by practicing the art of hospitality,
to be influenced by factors such as time, money, mobility, you can use all of your knowledge and skills to meet and
and a relative sense of safety. exceed visitor expectations. As you explore the world of
A business focus centered on marketing, management, tourism throughout this book, you will be introduced to the
and finance will be used as a foundation for examining the concepts and issues facing tourism today and in the future.
You Decide
The idea of traveling for education and experience reached benefits from travel, but their travel impacts are very
its pinnacle in the Grand Tour Era. During that time, different. Whereas Grand Tour participants traveled to
travel to locations such as Paris, Rome, and Venice was cities to study, explore, and experience the arts, today’s
considered to be the ultimate travel experience. Today’s adventure travelers visit remote areas and cultures, seeking
equivalent of the Grand Tour participants, the adventure new experiences while generating new income sources
travelers, may not have the time or money for extended for the native population. As they popularize these dif-
trips but still seeks the same educational experiences. ferent locations, roads, utilities, buildings, and other
Although the adventure travelers may travel to some of environment-altering activities follow.
the same destinations that were popular on the Grand Tour, Think for a moment about the impacts Grand Tour
these destinations are not new or exotic. Today’s adventure participants had on the areas they visited while traveling
travelers seeking new and exotic destinations may be found throughout Europe. Are the impacts adventure travelers
trekking through Nepal, viewing wildlife on the Galápagos have on today’s destinations the same? From an ethical
Islands, or braving the elements in Antarctica. perspective, should tourism activities be encouraged every-
The original Grand Tour participants and today’s where?
adventure travelers may have been seeking the same
Net Tour
To get you started exploring the world of tourism, enter www.mapquest.com
the terms tourism and travel, history of travel and tour- travel.state.gov
ism, and/or travel and tourism geography into your favor- google.com/earth
ite search engine, or use the specific links provided here to
www.pata.org
learn more.
en.cnta.gov.cn
www.wttc.travel
www.destinationmarketing.org
www.unwto.org
www.ustravel.org
Discussion Questions
1. Why should we study tourism? 5. Why should we study travel and tourism from a mar-
2. History has taught us that people travel and engage keting approach?
in tourism activities in increasing numbers when sev- 6. Why should we study travel and tourism from a man-
eral basic conditions can be met. Identify and describe agement approach?
these conditions and why they help facilitate travel and 7. Why should we study travel and tourism from a finan-
tourism activities. cial approach?
3. What is geography? 8. What are some of the future opportunities and chal-
4. How do physical, human (cultural), and regional geog- lenges facing the tourism industry?
raphy influence tourism activities?
Glossary
Accounting A service activity of business designed to resources to achieve organizational objectives efficiently
accumulate, measure, and communicate financial infor- and effectively.
mation to various decision makers. Marketing concept An overall organizational philosophy
Business An organization operated with the objective of that is focused on understanding and meeting the needs
making a profit from the sale of goods and services. of customers.
Cartography The science or art of making maps and Marketing mix Those things that an organization can do
interpreting mapped patterns of physical and human to influence the demand for its goods or services. It con-
geography. sists of four variables, often called the four Ps of mar-
Convenience charges Additional charges added to basic keting: product, price, place, and promotion.
services that are designed to increase profitability. Mass tourism Twentieth-century phenomenon whereby
Feudal system A system of political organization, prevail- the working and middle classes began traveling in large
ing in Europe from the 9th to about the 15th century, in numbers for leisure purposes.
which ownership of all land was vested in kings or queens. Model A simple representation showing how important
Host community A town or a city that welcome visitors features of a system fit together.
and provide them with desired services. Physical geography The natural features of our planet,
Human (cultural) geography The human activities that including such things as climate, land masses, bodies of
shape the face of a location and shared experiences, water, and resources.
including the cultural aspects of language, religion, and Professional travel Travel by individuals to attend meet-
political and social structures. ings and conventions.
Leisure travel Travel for personal interest and enjoyment. Profits Revenues in excess of expenses representing the
Management The distinct processes of planning, orga- financial performance and the ultimate measure of the
nizing, directing, and controlling people and other financial success of a business.
Regional geography The components of geography that Tourism The temporary movement of people to destina-
focus on regional landscapes, cultures, economies, and tions outside their normal places of work and residence,
political and social systems. the activities undertaken during their stay in those desti-
Return on investment (ROI) A measure of management’s nations, and the facilities created to cater to their needs.
efficiency, showing the return on all of an organiza- Tourism Satellite Accounts Methodological framework
tion’s assets. that uses common classifications and definitions to mea-
Services The performance of actions or efforts on behalf sure economic impacts of tourism on a national basis.
of another. VFR Visits to friends and relatives.
References
1. Wilkerson, C. (2003). Travel and tourism: An over- 14. Belozerskaya, M. (2010, March). The first tourist.
looked industry in the U.S. and Tenth District. Eco- History Today, 60(3), 26–32.
nomic Review, Third Quarter. Federal Reserve Bank 15. Cohen, E. (1972). Towards a sociology of interna-
of Kansas City. Available at: http://www.kc.frb.org. tional tourism. Social Research, 39(1), 164–182.
2. Economic Impact of Tourism (2015). World Travel 16. D’Amore, L. (1988, Summer). Tourism—The
and Tourism Council, 1–2. world’s peace industry. Journal of Travel Research,
3. Smeral, E. (2010, February). Impact of the world 27(1), 35–40.
recession and economic crisis on tourism: Forecasts 17. Robinson, A. H., Morrison, J. L., Muehrcke, P. C.,
and potential risks. Journal of Travel Research, Kimerling, A. J., and Guptill, S. C. (1995). Elements
49(1), 31–38. of Cartography (6th ed.). Hoboken, NJ: Wiley
4. Tourism Highlights, (2015). UNWTO, p. 2. Publishing.
5. Hunt, J. D., and Layne, D. (1991, Spring). Evolution 18. Rubenstein, J. M. (2005). The Cultural Landscape
of travel and tourism terminology and definitions. (8th ed.). Upper Saddle River, NJ: Pearson
Journal of Travel Research, 29(4), 7–11. Education.
6. Waters, S. (1990, February). The U.S. travel industry: 19. Clawson, D. L., and Johnson, M. L., eds. (2004).
Where we’re going. Cornell Hotel & Restaurant World Regional Geography: A Development
Administration Quarterly, 30(4), 26–33. Approach (8th ed., pp. 36–37). Upper Saddle River,
7. Glossary of Tourism Terms (February 2014). NJ: Pearson Education.
UNWTO, 1. 20. Burns, A. C., and Bush, R. F. (2010). Marketing
8. U.S. Travel Association. (2015). U.S. travel answer Research (6th ed.). Upper Saddle River, NJ: Pearson/
sheet. Retrieved https://www.ustravel.org/answer- Prentice Hall.
sheet. 21. Hsu, C. H. C., Killion, L., Brown, G., Gross, M.
9. Baranowski, S. (2007, March). Common ground: J., and Huang, S. (2008). Tourism Marketing: An
Linking transport and tourism history. Journal of Asia-Pacific Perspective. Milton, Australia: John
Transport History, 28(1), 120–243. Wiley & Sons Australia.
10. Outbound tourism market becomes spotlight of 22. Miller, G., Rathouse, K., Scarles, C., Holmes,
industry. (Retrieved 2004, July 20). Xinhua (China). K., and Tribe, J. (2010), Public understanding of
Available at: http://www.xinhua.org. sustainable tourism. Annals of Tourism Research,
11. O’Brien, A. (2012). Wasting a good crisis develop- 37(3), 627–645.
mental failure and Irish tourism since 2008. Annals 23. (1992). Code of ethics: Hospitality service and
of Tourism Research, 39(2), 1138–1155. tourism industry. In Stephen S. J. Hall, ed., Ethics
12. Tourism 2020 vision. (2008). Available at: http:// in Hospitality Management. East Lansing, MI:
www.unwto.org/facts/eng/vision.htm. Education Institute of the American Hotel and
Motel Association.
13. Ward, S. (October 10, 2011). The virtues of travel-
ing light. Barrons, XCI(41), 25, 27.
Career Award
A catalogue record for this book is available from the British Library
● explain the nature and structure of the travel and tourism industry
● describe the social, cultural, economic and environmental impacts
of tourism
● identify the role of governments in forming tourism policies
and promoting tourism
● describe the patterns of demand for international tourism
What is travel and tourism? To use the example of the World Tourism
Organisation (WTO) – affiliated to the United Nations and recognised as
the leading international body on global tourism – tourism is:
3
Part 1: The Core Module
‘Travel and tourism’ does not necessarily involve travelling abroad. Much
tourism takes place within people’s home country, on visits to attractions,
city breaks, trips to business meetings, sports events or concerts, and visits
to friends and relatives (abbreviated as VFR).
Domestic tourism
This is when people take holidays, short breaks and day trips in their
own country. Examples would be:
● a couple taking a weekend break in their own country;
● the supporters of a football team going to an away game featuring
their local team;
● a family visiting relations in another part of the country, even if they
live only a few miles away.
If we take figures from the British Tourist Authority for 2000, we find
that British people made a total of 174.5 million trips within the UK,
broken down as follows:
● 106 million were on holidays;
● 23.7 million were on business;
● 40.6 million were visiting friends or relatives;
● 5.1 million were for other miscellaneous reasons.
Incoming/inbound tourism
This describes people entering the country in question from their home
country, so it is a type of international tourism. Examples could be:
● a party of Japanese visitors coming to Europe on a trip;
● teams from different countries entering a country for an international
event, such as the Olympic Games;
● families from Pakistan entering England to visit relations.
For the UK, the British Tourist Authority statistics show that 25.2 million
overseas visitors came in 2000, spending £12.6 billion in the UK.
4
The travel and tourism industry
Outbound tourism
This term applies when people travel away from their home country to
visit other international countries for leisure or business. Examples of this
could be:
● a family from Belgium going on holiday to Austria;
● business people from the UK travelling to America to visit a major
exhibition;
● a day tripper from southern Malaysia visiting Singapore.
Using BTA figures for 1999, UK residents took 50.9 million visits abroad,
of which 42.8 million were for leisure and 8 million were for business.
The following table summarises the range of reasons for travelling: Reasons for travel
Activity
Contact your national tourist board to obtain the figures for
domestic tourism, inbound/incoming tourism and outbound tourism
over the past few years. Using these figures, discuss the reasons for
any possible changes and consider the effects on the economy of
your country if tourism is increasing.
5
Part 1: The Core Module
Figure 1
Components of travel
and tourism
To do this they also provide the additional services that are outlined in
Chapter 2: ‘Features of worldwide destinations’. They sell their products
in the same way as other high street shops, so they advertise their
products and special offers to supply customers with what they want.
They act as agents for the suppliers of industry products or ‘principals’
such as airlines, rail companies, hotels, ferry and cruise companies, car
hire companies, tour operators, and foreign currency suppliers. They earn
their income from the commission paid by these principals. They supply
brochures to potential customers for them to browse through and then
take bookings along with any deposits or payments. They will use
computer reservations systems or viewdata systems to investigate
availability and the costs of any planned journey or holiday and advise
on the suitability of the accommodation or transport to meet the
customers’ needs.
6
The travel and tourism industry
There are two types of tour operator: the wholesale operators, who put
together and operate tours only through retail travel agencies; and the
direct sell operators, who market their products direct to the public (in
other words they do not use travel agencies to promote their products).
The tour operator will cost the package to include travel and
accommodation and also produce brochures, employ and train staff
(such as holiday representatives or tour directors). They undertake
market research on not only the type of holiday in demand but which
principals to use, and maintain their central reservations systems and
customer support.
7
Part 1: The Core Module
8
The travel and tourism industry
Accommodation principals are those who build and staff hotels, villas,
apartment resorts or holiday cottages which are available to any traveller.
Some of these are major international chains such as Marriott Hotels,
Holiday Inn, Comfort Inns and Hotels; others are smaller providers who
may only own one or a small chain of hotels. The accommodation may
be marketed individually by the provider or rooms purchased by a tour
operator in order to make up a package holiday often at a special rate.
The benefit to the accommodation provider of selling through a tour
operator is that they have a more guaranteed occupancy rate throughout
a holiday season. Otherwise they may have to spend large amounts of
money on advertising in order to attract sufficient individual customers to
make a profit.
Within the tour operator’s brochure, there will usually be some statement
as to the accommodation and catering included in the cost. This will help
the tourist to budget for the package holiday, knowing what is included
and what must be paid for separately.
9
Part 1: The Core Module
10
The travel and tourism industry
Major resort areas and hotels provide a wider choice of catering facilities,
ranging from fast food outlets (such as Macdonalds, Wimpy, Pizza Hut
and other international chains) to restaurants providing various meals
from different ethnic regions (such as Indian, Chinese, French and Italian
food). There could also be cafeterias where snacks and meals can be
purchased plus bars and coffee shops. Even large shopping malls and
sporting venues provide catering outlets for the convenience of
participants and spectators.
The principals who provide attractions for the visitor will need to have
undertaken market research to establish the need for the attraction in
that particular location and its potential audience. Attractions may be
purpose built, such as Disney theme parks in California, Florida or Paris,
or they may be part of a nation’s cultural heritage, such as the Louvre
Gallery in Paris, or Sydney Opera House in Australia. They may also be
created for a purpose, for example zoos, rare animal parks and sea-life
centres set up to conserve and display animals and birds. Other
attractions may relate to the industrial heritage or scientific development
of a country. Some large companies allow visitors to tour their factories
or manufacturing plants. An example of this is Cadbury World in the UK,
the manufacturing base of Cadbury’s chocolates, where visitors can see
chocolate being made as well as be entertained with rides and purchase
goods in the factory shop. Another example is the Corning Museum of
Glass, outside New York in the USA, where visitors can watch glass-
blowing demonstrations, see and touch examples explaining the history
of glass and visit a café and factory shop.
Many newly developing countries and resorts see the need to have one
or more visitor attraction in the area in order to widen their appeal and
attract a larger number of tourists. Even those resorts which have
previously relied on tourists who want a beach holiday, are now
11
Part 1: The Core Module
Activities
● Using one or two copies of your national newspaper, locate
advertisements placed by as many principals in the travel and
tourism industry as you can. Consider whether these
advertisements are targeted at the individual or group traveller.
● Identify the main attractions in your country or area and
investigate the number of visitors each has received over the past
10 years. If any of you have visited any of these attractions,
present a report to your group on the type of experience you had
and the most and least enjoyable aspects of your visit. Suggest
any attractions or catering outlets which you consider would
benefit your local area.
These data can then be analysed to identify trends within the industry
that will affect not only the marketing by the principals and tour
operators, but also the economy of the country. This will be looked at in
more detail later in this chapter.
12
The travel and tourism industry
In the UK, the NTO is the British Tourist Authority, and its mission is to
build the value of inbound tourism to Britain, generating additional
revenue throughout Britain, throughout the year. It operates in 27
overseas markets, working in partnership with the national tourism
boards of England, Scotland, Wales and Northern Ireland, and gathers
essential market intelligence for the tourism industry. It is funded by
grant aid from the government’s Department for Culture, Media and
Sport, and has partnership support from airlines, hotels, local authorities
and others to increase the marketing resources. It helps the tourism
businesses reach overseas customers cost-effectively.
13
Part 1: The Core Module
North West
Tourist Board
(One of 10 regional tourist boards)
Members include:
Lancashire County Council (regional authority)
Blackpool Borough Council (local authority)
Blackpool Pleasure Beach (attraction provider)
Blackpool Hotels Association (accommodation providers)
14
The travel and tourism industry
You will find more information on TICs in Chapter 6 (see pp. 149–50).
You could also visit your local TIC to find out what services and
information it provides to visitors.
15
Part 1: The Core Module
16
The travel and tourism industry
Spending on
Spending by visitors from overseas £ billion tourism in 2000
Visits to the UK 12.8
Fares to UK carriers 3.5
17
Part 1: The Core Module
Activity
Look at the pie chart below, showing the domestic and overseas
tourist spending breakdown for the UK in 1999. Obtain similar
statistics for your own area and compare the percentages in each of
the principal areas.
1% 14.7%
Others £297mn Travel within UK
£4,225mn
Figure 5 34%
UK tourist spending Accommodation £9,782mn
breakdown, 1999
Source: www.staruk.org.uk, sponsored by the National Tourist Boards and the Department
for Culture, Media and Sport
18
The travel and tourism industry
If we use the figures for the UK we can see how the tourism balance of
payments has changed over a period of time:
Spending on
1975 1987 1996 1997 1998 tourism 1975–98, in
Money spent in UK 1,218 6,260 12,290 12,244 12,671 £ millions
by overseas residents
Using these figures, it is evident that the tourism balance of payments for
the UK is in deficit (i.e. more money is going out of the country than
coming in) and obviously the BTA has the target to improve this balance
and reduce the deficit. One of the problems for the UK is that most
regional tourism tends to be seasonal. In other words it is affected by
weather patterns, with the bulk of tourism occurring in the summer
months, though London and other larger cities may attract visitors
throughout the year. Other countries may also be affected by weather
patterns, such as monsoon or hurricane seasons, or some may attract
particular types of visitors in specific seasons, such as ski and winter
sports resorts.
19
Part 1: The Core Module
example, stay overnight, they will have to pay the hotel for the
accommodation. The hotel uses this income to pay its staff and suppliers.
Those staff will spend some of their wages in local shops and the
suppliers will pay their own staff. So the money is circulating in the
area and thus creating more wealth in that area for other businesses.
However, a portion of the visitor’s payment to the hotel is lost to the
area, through taxation paid by the hotel to the government, or to
suppliers outside the local area. This is known as ‘leakage’ from the
local economy.
20
The travel and tourism industry
21
Part 1: The Core Module
Tourism itself will affect the environment in both positive and negative
ways. The following lists summarise these effects:
22