Tourism Tourism EconomicsEconomics

Chapter 1Chapter 1TRM 490

PROF. ZHOU

Chapter 1: Intro to TourismChapter 1: Intro to Tourism

Two important organizations for Information on world tourism◦World Tourism Organization (WTO)—An UN

Agency◦The World Travel and Tourism Council (WTTC)

---A Private Organization

Chapter 1: Intro to Tourism Chapter 1: Intro to Tourism (2)(2)

Estimates of tourism’s economic impact vary widely according to the definition of tourism used◦Tourism, an umbrella concept (The world

except US)◦A traveler is variously defined as someone

making a trip for a specified distance (25m, 50m or 100mi) and for some specified purpose (leisure, business, for example) away from home

Chapter 1: Intro to Tourism Chapter 1: Intro to Tourism (3)(3)

Tourism Economics measures the amount of travel and its economic consequences, direct, indirect, and induced.◦The measurement of economic impact varies

according to various methods of collecting and defining travel information

Tourism has other dimensions, too◦Psychological, sociological, ecological and

political impacts

Chapter 1: Intro to TourismChapter 1: Intro to Tourism (4)(4)Tourism rubric: see Figure 1-1, p4Perspectives on tourism:

◦As an activity: in which people are engaged in travel away from home for various purposes

◦As a business providing goods and services to the travelers

◦As an industry comprised of hundreds of component businesses

◦As an economic development tool◦As an institution with a history, body of

knowledge and social aspect◦As an economic activity with billions of dollars

exchanged each month---tourism economics

Chapter 1: Intro to TourismChapter 1: Intro to Tourism (5)(5)

Various definition of traveler/tourist:◦US Government: both mean the same---anyone

who stays more than 24 hours, or make an overnight stay, away from home. (Exceptions: military travel, resident students, resident student immigrants, diplomats, and people working away from home).

◦The US Census Bureau: travel at least 100 miles away from home and returns (overnight stay is not a requirement in the definition)

◦Statistics Canada: a tourist is one who travel away from home for a distance of at least 50 miles beyond the boundary of the home community.

Chapter 1: Intro to Tourism Chapter 1: Intro to Tourism (6)(6)

WTO’s view on inbound tourism/tourst/traveler/visitor: ◦ In most circumstances, the precision of the definitions is not a special concern, and all sorts of travelers might be included in the statistics of visitors. This also concerns their expenditure. Nationals residing outside the country are unevenly treated (some exclude them from their statistics of inbound visitors) and many countries are mostly worried by foreigners residing outside the country (confusion between the concept of nationality and of residence).◦ Same-day visitors are usually excluded from the theoretical definition (although their expenditure might be included), and it is also the case of transit visitors (specifically excluded in previous international definitions).◦ Business travels were always considered of special interest, and in many cases were identified separately. Some countries also identified separately other purposes of the visit.

Chapter 1: Intro to Tourism Chapter 1: Intro to Tourism (7)(7)

Issues in studing tourism economics◦Definition of tourism will continue to be

imprecise because so mnay busineses, governments and the researchers are involved

◦The reliability and validity of the numbers developed by primary research (various definition and sampling techniques)

◦Tourism statistics should be taken with a grain of salt since so many sectors of industry and so many people are involved.

Chapter 1: Intro to Tourism Chapter 1: Intro to Tourism (8)(8)

The Scope and Magnitude of Tourism Economics◦US: the third largest retail industry, following

food and automobile industries◦US: the largest private employer◦US: the largest export industry◦US: the largest recipient of tourist travel

income◦US: Spend the most tourist dollars abroad (see

Figure 1-6, p13)

Chapter 1: Intro to Tourism Chapter 1: Intro to Tourism (9)(9)

Tourism income and impact studies◦Child & Waters study: trips to places more than

20 miles away from home, including foreign visitor spending. See figure 1-7

◦US Data Center: trips 100 miles away from home, but includes indirect spending (impact)

◦Every US state conducts its own tourism impact study. See figure 1-8

Chapter 1: Intro to Tourism Chapter 1: Intro to Tourism (10)(10)

Examples of Spending Categories◦Retail shopping◦Restaurants◦Lodging◦Recreation◦Ground transport◦Food stores◦Air transport◦Travel arrangement

Chapter 1: Intro to Tourism Chapter 1: Intro to Tourism (11)(11)

New Tourism Markets◦China and Southeast Asia◦India