Tertiary Sector

Employment structuresComparing employment structures• The employment structure of a country shows how the labour

force is divided between the primary, secondary and tertiary sectors. Different countries have different employment structures. The employment structure of a given country can tell you quite a lot about its economy.

• In the richest countries, for example, there will usually be more people working in the tertiary/quaternary sector than in the primary and secondary sectors. In the poorest countries, there tend to be more people working in the primary sector than in either the secondary or tertiary sectors.

• Look at the diagram below. Based on the employment structure, which countries do you think are the richest and poorest?

Employment structures

In the richest country (USA), most people work in the tertiary sector. In the poorest country (Nepal), most people work in the primary sector. In Brazil, the labour force is more evenly distributed between the three sectors.Note that the quaternary sector has been included in the tertiary sector.

Tertiary and quaternary industry in the UKo The tertiary sector is also called the service

sector and involves the selling of services and skills. They can also involve selling goods and products from primary and secondary industries. Examples of tertiary employment include the health service, transportation, education, entertainment, tourism, finance, sales and retail.

o The biggest area of expansion in the tertiary sector in the UK has been in financial and business services. According to government statistics, 25 years ago one in ten people worked in this industry, now it is 1 in 5.

o The quaternary sector consists of those industries providing information services, such as computing, ICT (information and communication technologies), consultancy (offering advice to businesses) and R&D (research, particularly in scientific fields).

o The quaternary sector is sometimes included with the tertiary sector, as they are both service sectors. The tertiary and quaternary sectors make up the largest part of the UK economy, employing 76 per cent of the workforce.

Royal Victoria Hospital, Belfast

Changing employment structures over time

• In the UK in 1,800 most people would have been employed in the primary sector. Many people worked on the land, and made their living from agriculture and related products.

• During the industrial revolution, more people were needed to build ships, work in steel making and with textiles. All of these jobs are found in the secondary sector. By 1900 over half of the workers in the UK were employed in secondary industries.

• Since 1900 mechanisation meant that less people were required to work on the land and in industry, as machines could carry out most of the work that people previously did.

• Foreign industries also became more competitive and imports such as coal became more affordable. As the availability of coal declined in the UK, and also became more expensive to extract more coal was imported. This led to a further decline in primary sector employment in the UK.

…and now:• The demand for work increased in schools,

hospitals and retail industries. Many people left the rural areas in the search for jobs in the towns and cities. By the year 2000 over half of the UK workforce were employed in tertiary industries and only a small number were employed in primary industries. This has changed the work that people do, and also where they work. Quaternary industries are a relatively new concept, and it is only recently that they have been added to these figures. However it is becoming an important and growing sector in the UK as many firms want to carry out research and development for their products.

Line graph to show the UK employment structure from 1800 – 2000

TourismTourism is a rapidly growing industry and has far-reaching economic and environmental impact across the world.

• In 2010, 940 million people were recorded as arriving in a country from abroad because of tourism. This is worth $919 billion dollars, making tourism one of the world's largest industries. (Source: World Tourism Organization (UNWTO)

Growth in tourism measured by international arrivals

Economic growth• Tourism is also one of the world's fastest-growing

industries. In 2010, the Middle East and Asia had the greatest growth of tourists. Europe still has the greatest number of tourists - nearly 500 million in 2010.

1990 1995 2000 2005 2008 2009 2010Europe 261.5 304.1 385.6 439.4 485.2 461.5 476.6Asia and the Pacific 55.8 82.0 110.1 153.6 184.1 180.9 203.8Americas 92.8 109.0 128.2 133.3 147.8 140.6 149.8Africa 14.8 18.9 26.5 35.4 44.4 46.0 49.5Middle east 9.6 13.7 24.1 36.3 55.2 52.9 60.3

International Tourist Arrivals (in millions)

Market growth

% changeEurope 3.3%Asia and the Pacific 12.7%Americas 6.4%Africa 7.3%Middle east 14.1%

Tourism market growth in 2010 (compared to 2009)

The tourism industry therefore is very important to economic growth as well as the environment.Tourism can help a country's economy and infrastructure. In some developing countries it provides a large percentage of jobs, as happens in the Caribbean where tourism is their main source of income.

Tourism, a growing trend More affluence - since 1950 people have become more wealthy. There is more

disposable income. People also now have paid time off work for holidays.

Greater awareness - through advertising or television programmes people are more aware of how and where they can spend their free time.

More car ownership - more families own a car. This gives greater freedom to choose when and where to spend time.

Improvements in technology - travelling today is much quicker. Motorways and aircraft have helped reduce the time it takes to get to different countries. Travelling by air has become more accessible as you can book on line and choose more budget options.

More leisure time - people have paid holidays from work (on average three weeks per year are paid). Also people who are retired remain active for longer. There is also a trend to take more than one holiday in a year.

More choice - in the past seaside holidays and package holidays were the most popular. The industry is seeing more people look at ecotourism and more unusual holiday destinations.

Tourism in LEDCsLess Economically Developed Country

• Governments in LEDCs often see tourism as a vital source of income, which can be used for development, but tourism can create problems for host countries.

Where?• Countries rich in physical

resources - such as warm climates, beautiful beaches, rare ecosystems, and abundant plant and animal life - are often sought-after holiday destinations by people from MEDCs. Tour operators and developers invest in these locations in the hope that they will become as popular as European resorts.

Places such as Kenya in East Africa, where tourists go on safari, or Bali in Indonesia, visited for its beautiful beaches, all benefit financially from tourism. However, tourism in LEDCs needs to be carefully managed to prevent harm to the environment and disruption to local communities.

Advantages to LEDCsForeign currency spent by tourists can be invested in improving local education, health and other services.

Jobs for local people are created and people can learn new skills in tourism services.

Visitors get an insight into local customs and traditions.

Tourists see beautiful landscapes, wildlife and plants. They can also be educated about the dangers to fragile ecosystems in the modern world.

Construction creates jobs and develops skills for local people.

Local infrastructure is improved as water and sanitation facilities, roads, buses, taxis and airports are provided for tourists.

Disadvantages to LEDCsProfits go to foreign companies, such as tour operators and hotel chains, rather than to the local community.

House prices rise when foreign companies and investors buy property for hotels and holiday homes. This often makes houses too expensive for locals.

Foreign companies may bring foreign workers to do the skilled jobs; so local people only do low skilled, poorly paid work.

Important projects for local communities might be sidelined as infrastructure developments are focused on tourists.

If the aim of activities is to entertain, rather than educate tourists, this may belittle the local people.

Pollution and disruption to wildlife habitats could occur if tourism isn't sustainable.

Infrastructure is developed with the needs of tourism in mind for example: airports, toll paying roads, etc.

Who wins with international tourism?Advantages Disadvantages

Conservation & Environmental care

Employment

Tradition & cultural understanding

Inequality

Investment

Infrastructure

Others?

Ecotourism encourages visitors to a country to leave a small carbon footprint, to the benefit of local communities and environments. It has become an increasingly popular option for many people.

• Ecotourism is a type of sustainable development. The aim of ecotourism is to reduce the impact that tourism has on naturally beautiful environments.

• Any tourist destination can be harmed by increased levels of tourism. If areas are damaged or destroyed, they might not be available to future generations.

Spanish coastline – effects of unsustainable tourism

Approach

• Ensuring that tourism does not exploit the natural environment or local communities.

• Consultation with local communities on planned developments.

• Making sure that infrastructure improvements benefit local people and not just tourists.

Ecotourism now has the backing of the United Nations, which made 2002 the "International Year of Ecotourism".