Global Tourism

Accounting for Growth of the Global Tourism Industry

You should be able to: 1. Account for the growth of global

tourism 2. Explain with authentic examples how

demand and destination factors can affect tourism at a specific place

By the end of this lesson

• What is the general trend of global tourism?

• Why do you think tourism has followed such a trend for the past 50 years?

Recap

Factors Causing Global Tourism Growth

Demand Factors Destination Factors

1. Increase in

Disposable

Income

2. Increase in

leisure time

3. Changing

Lifestyles

1. Attractions

2. Investment in

Infrastructure and

Services

3. Access to Information/

Marketing

4. Political Stability

Technology

Demand Factors

Demand Factors• Refers to factors that influence people’s

desire and capability to travel and purchase tourism related goods and services

Demand Factors

Disposable Income• Refers to the amount

of money left for an individual to spend, or to be set aside as savings, after taxes

Demand FactorsDescribe the trend of per capita disposable income. [4]

Source: IBISWorld, 2012

Demand FactorsGlobal Disposable Incomes have:• been generally increasing from 1981

to 2012• seen from the figure where

percentage change has remained positive

• However, two instances where disposable income has decreased (1991 and 2009)

• seen from the figure where percentage change is negative

Demand Factors

Disposable Income• Increase in disposable income enables

people to spend more on goods and activities which would improve their quality of life

• Accounts for growth in tourism as people can afford to travel more frequently and to more expensive destinations

Demand FactorsLeisure Time• Refers to time available outside of the

demands of work or duty• Increasing trend where people enjoy a

minimum of three weeks of paid annual leave

• Increase in leisure time allows people to travel more

Demand FactorsLeisure Time

Demand Factors

Changing Lifestyles• Refers to the way a person lives which

includes patterns of social relations, consumption and entertainment

• Higher education levels propels people to travel to know more about the world

• Education has also developed varied interests in people resulting in people attracted to various tourist destinations (e.g. nature lovers to ecotourism)

Demand FactorsChanging Lifestyles• Travelling also acts as a stress-reliever

for people who want respite from urban/ working life

• Longer life expectancy and increasing affluence results in more people travelling the world after retirement

Destination Factors

Destination Factors • Related to the infrastructure and services

offered in tourism destinations that allow for more convenient and comfortable stay for tourists

Burj Al Arab , Dubai, UAE

Destination Factors

Attractions• Refers to the range of attractions in a

tourist location• Presence of attractions which are varied in

type would encourage tourists to visit the destination

• Has Singapore been successful in this area?

Destination Factors

Attractions

Destination Factors

Investment in Infrastructure and Services• Refers to the presence of a range of large-

scale public systems, services, and facilities

• Includes tourist accommodation, medical facilities, transport infrastructure, recreational and entertainment facilities

• Destination with more investments in infrastructure and services likely to attract more tourists

Destination Factors

Investment in Infrastructure and Services

Destination Factors

Investment in Infrastructure and Services

Destination Factors

Access to Information• Refers to the ease in which tourists are

able to obtain information of the destination

• This could be in the form of internet or print sources (e.g. Lonely Planet Guidebooks)

• Tourists more inclined to visit destinations that has more information available

Destination Factors

Access to Information

Destination Factors

Marketing• Refers to the advertising or promotion of a

good or service

Destination Factors

Marketing• Potential visitors get access to information

through the marketing of the destination by their respective countries

• Prevalent use of the mass media to advertise on certain marketable traits of destinations

• Destination more likely to attract visitors if marketing is done well

Destination Factors

Marketing- New Zealand Tourism TVC• Which aspect of NZ are they trying to

market?

Destination Factors

Marketing Campaigns

Destination Factors

Marketing Campaigns

Destination FactorsPolitical Stability• Countries which are in the midst of

conflicts or wars are deemed to be unsafe for tourists

• E.g. Syria and Iraq are not visited currently despite having attractions

Ruins of Palmyra, Syria Great Ziggurat of Ur, Iraq

Technology• The advent of technology and various Web

2.0 tools makes travelling to another country much easier

• Can you think of technology available now which aids in increasing tourism that was not available in the past?

TechnologyHotel Reviews and Bookings

TechnologyTravel Blogs and Online Itineraries

Learning Points • The growth of tourism is due to a

combination of demand and destination factors

• The growth of tourism is also propelled by the rise of technology which allows tourists to access information, plan their travel itinerary and book for accommodation and transport