Hospitality and Tourism - Download as PowerPoint by wuyunyi

VIEWS: 126 PAGES: 39

									Economics and
the Impact of
Tourism




Back to Table of Contents
Chapter 2        Economics and the Impact of Tourism
Economics and the
Impact of Tourism


            The Impact of Hospitality
            & Tourism

            Why Do People Travel?




                                                   2
               Economics and the Impact of Tourism

               Chapter Objectives

Explain the economic multiplier.
Define sustainable tourism.
Identify the different areas impacted by tourism.
Explain the cyclical nature of travel.
Describe business and pleasure travel.
Explain the different motives for travel.



                                                    3
                         Economics and the Impact of Tourism

                         Effects of Hospitality &
                         Tourism
   Travel, tourism, and hospitality have numerous
   effects on the world.



                           Social and
              Economic                    Environmental
                            Cultural




Section 2.1                                                4
                    Economics and the Impact of Tourism

                    Economic Impact

    The development of             infrastructure the
    infrastructure that supports   physical components of
                                   a destination, such as
    the needs of travelers helps   hotels, restaurants,
    to create jobs.                roadways, and
                                   transportation, that
                                   support tourism




Section 2.1                                                 5
 Economic Impact

              $   Tourist Dollars   $                   $
                                            Infrastructure       Business
                                                                  Growth


                                                                            $
                                        $
                                              Tax
                                            Revenue                 Jobs


                                                             $
Section 2.1                                                                     6
                     Economics and the Impact of Tourism

                     Economic Impact

    The economic multiplier        economic multiplier
    depends on how much            the process of how
                                   money filters through a
    money tourists spend per       local economy and is
    year and how much              spent and re-spent,
    leakage there is offshore.     creating income for other
                                   businesses

                                   leakage tourists dollars
                                   spent on imported goods
                                   so that revenue ends up
                                   in foreign economies

Section 2.1                                                    7
 Economic Impact
 Economic Impact of Travel in the United States


                  Travel expenditures     $545.5 billion

              Travel-generated payroll    $157.0 billion

    Travel-generated tax revenue            $93.2 billion

                        Travel surplus       $5.5 billion



    Travel-generated employment          7.2 million jobs


Section 2.1                                                 8
                     Economics and the Impact of Tourism

                     Globalization and Tourism

    In the past 50 years, the      globalization the
    world has experienced          increasing integration of
                                   the world economy
    globalization.

    Continued growth in
    hospitality and tourism
    depends on responsibly
    protecting and maintaining
    human and natural
    resources.
Section 2.1                                                    9
                   Economics and the Impact of Tourism

                   Globalization and Tourism

    Businesses and               sustainable tourism
    governments must create      tourism that allows a
                                 destination to support both
    sustainable tourism.         local residents and tourists
                                 without compromising
                                 future generations




Section 2.1                                                 10
                     Economics and the Impact of Tourism

                     Social and Cultural Impact

    Failure to protect unique cultures and established
    social customs can destroy the appeal of a
    destination.




Section 2.1                                              11
                     Economics and the Impact of Tourism

                     Social and Cultural Impact

    Tourists help cultures by trading cultural influences
    and creating interest in exploring cultures.

    Tourists can harm a culture by inadvertently
    creating unrealistic expectations of wealth.




Section 2.1                                             12
                     Economics and the Impact of Tourism

                     Environmental Impact

    Negative impacts from tourism occur when visitors’
    use of a resource is greater than the destination’s
    ability to handle that usage.




Section 2.1                                           13
 Environmental Impact


                  Water           Land
                Resources       Resources


               Visual                  Waste
              Pollution               Disposal

                           Noise
                          Pollution

Section 2.1                                      14
                    Economics and the Impact of Tourism

                    Environmental Impact

    Tourism development can       aesthetic pollution the
    cause aesthetic pollution.    spoiling or contamination
                                  of the natural beauty and
                                  features of an environment
                                  due to poor planning and
                                  design of tourism projects




Section 2.1                                                15
                     Economics and the Impact of Tourism

                     Environmental Impact

    Tourism can also affect an environment positively.

    Revenues generated from park entrance fees and
    similar sources can help pay for the protection and
    management of sensitive environments.




Section 2.1                                               16
 Cyclical Nature of Travel



                Introduction    Growth


              Sometimes
               Renewal              Maturation


                          Decline

Section 2.1                                      17
                     Economics and the Impact of Tourism

                     Cyclical Nature of Travel

    During the introduction         venturers travelers who
    stage of the destination life   tend to be the first to
                                    discover a new, unspoiled
    cycle, tourists begin to        destination
    discover a new destination
    and word quickly spreads
    among the venturers of the
    world.



Section 2.1                                                 18
                     Economics and the Impact of Tourism

                     Cyclical Nature of Travel

    A destination in the mature    dependables travelers
    stage of the life cycle is     who prefer familiarity and
                                   creature comforts and
    visited by dependables.        seldom try anything new
                                   or different




Section 2.1                                                     19
                      Economics and the Impact of Tourism

                      Continuing Hospitality &
                      Tourism Influences
    Renewal and reinvestment can help prolong and
    continue the positive or negative effects of travel,
    tourism, and hospitality on destinations.




Section 2.1                                                20
                         Economics and the Impact of Tourism




2.1


      1.      What is the economic multiplier?

      2.      Why is sustainable tourism important?

      3.      What is one positive and one negative
              impact of tourism?


Section 2.1                                               21
                          Economics and the Impact of Tourism

                          The Reasons for Travel

    The most common reasons for travel are:

              Business commitments
              Family occasions
              Leisure

    Hospitality and tourism professionals study these
    reasons in order to adapt products and services to
    their customers’ needs.
Section 2.2                                                22
                    Economics and the Impact of Tourism

                    Business Travel

    Business travel usually       business travel travel
    occurs during the week, not   for the sole purpose of
                                  conducting an individual’s
    on the weekend, and can       or company's business
    involve multiple
    destinations and methods
    of travel.




Section 2.2                                                    23
                        Economics and the Impact of Tourism

                        Business Travel

   Challenges of business travel include:

          Stress
          Time changes
          Long absences from home
          Language or cultural barriers




Section 2.2                                              24
                         Economics and the Impact of Tourism

                         Business Travel

   Incentives for business travel include:

          Frequent-flyer miles
          Travel in business or first class on airlines
          Favored treatment at car rental companies
          and hotels




Section 2.2                                               25
                    Economics and the Impact of Tourism

                     Business Travel

    A branch of business travel   meeting and incentive
    is meeting and incentive      travel business travel by
                                  employees to attend a
    travel.                       business meeting or as a
                                  reward for having met or
                                  exceeded company goals




Section 2.2                                               26
                         Economics and the Impact of Tourism

                         Business Travel

    A meeting planner has a            meeting planner a
    variety of responsibilities:       person who organizes
                                       and plans a meeting
          Find a site for a meeting
          Make travel arrangements
          Coordinate meeting space,
          hotel rooms, and meals
          Schedule speakers and
          multimedia services
          Handle registration

Section 2.2                                                   27
                    Economics and the Impact of Tourism

                     Pleasure Travel

    When traveling for pleasure,   VFR travel travel for
    some people engage in          the purpose of visiting
                                   friends or relatives
    VFR travel.

    The needs of people who        leisure travel travel for
    engage in leisure travel       the sole purpose of
                                   enjoyment
    can be more complex.



Section 2.2                                                    28
                    Economics and the Impact of Tourism

                    Travel Motive Theories

    Maslow’s hierarchy of         Maslow’s hierarchy of
    needs and Plog’s              needs a theory that
                                  explains what motivates
    psychographic analysis are    people to act in certain
    two theories that can help    ways or make certain
    explain traveler behavior.    decisions




Section 2.2                                                  29
 Travel Motive Theories
                                 Maslow’s Hierarchy
                       Self-
                   actualization
                                          of Needs

                   Self-esteem


                   Recognition


                Safety and security


                Physiological needs

Section 2.2                                           30
                             Economics and the Impact of Tourism

                             Travel Motive Theories

   Stanley Plog developed Plog’s psychographic
   analysis to describe two types of travelers:

              Venturers
              – Seek out unspoiled destinations and explore
                without using tourist services
              Dependables
              – Prefer creature comforts and seldom try anything
                new or foreign


Section 2.2                                                        31
                           Economics and the Impact of Tourism

                           Travel Motive Theories

   When asked by a team of Plog researchers why
   they traveled, most Americans gave the
   following answers:
              To get rid of stress
              To enrich perspective on life
              To bring family closer together
              To do what they wanted, when they wanted
              To feel alive and energetic

Section 2.2                                                 32
                          Economics and the Impact of Tourism


                             Travel Online
   Operating an changed the way people fly, rent, make
The Internet hase-tail business on an electronic channel—the
   Web—can be costly,
reservations, and relax. due to design, delivery, returns, and
   operating expenses.
In 2002, researchers found that 59 million people in the United
   Though Many larger dot-com companies crashed in the
States made online travel purchases. With so many online
   1990’s, small stores like Harris Cyclery of West Newton,
travel options, user friendliness and low rates keep travel Web
   Massachusetts,
sites competitive. actually increase sales using a basic Web
   site. Today, a third of Harris’s bicycle business rides in on
   the Web to get hard-to-find parts and personal service.

    Describe an e-business’s home page to your class after
    viewing one through marketingseries.glencoe.com.
For more information, go to marketingseries.glencoe.com.
Section 2.2                                                    33
                     Economics and the Impact of Tourism




2.2


      1. What are three needs of the business
         traveler?

      2. What are a venturer and a dependable?

      3. What are some of the motivations for travel?


Section 2.2                                             34
                 Economics and the Impact of Tourism

                 Checking Concepts

1. Explain two factors that      3. Sustainable tourism
                                 4. Tourism impacts
                                 1. The economic the
                                 2. Globalization is
                                    is tourism that allows
                                    increasing
                                    many aspects of
                                    multiplier is the a
   determine the amount of          a destinationwhich
                                    integration to
                                    process by of the
                                    destination,
   the economic multiplier.         supportmoney filters
                                    world both local
                                    touristeconomy.
                                    including
                                    residents and
2. Define globalization.            economic, social
                                    through a local
                                    tourists without
                                    and cultural, and
                                    economy and is
                                    compromising future
3. Explain the importance           spent and re-spent,
                                    environmental
                                    generations. It is
   of sustainable tourism.          creating income for
                                    conditions.
                                    important because it
                                    other businesses.of
                                    protects the future
4. Identify aspects                 the industry in that
   impacted by tourism.             area.

                     continued                             35
                 Economics and the Impact of Tourism

                 Checking Concepts

5. Describe the first two        6. Plog’s psychographic
                                 7. Business phases
                                 5. The first twotravel isof
                                    a tourist destination’s
   phases of a destination’s        analysis helps to
                                    done for the sole
                                    determine people’s
                                    life cycle are (1)
   life cycle.                      purpose of during It
                                    travel preferences.
                                    introduction,
                                    conducting a onto
                                    places individuals
                                    which tourists begin a
6. Explain the difference           continuum or
                                    person’s ranging from
                                    discover the location,
   between travel for               company’s
                                    and (2) growth, during
                                    venturer to
                                    business. based
                                    which development,on
                                    dependable,Travel for
   business and for pleasure.       such answers to a of
                                    their as the building
                                    pleasure is done to
                                    new facilities, occurs to
                                    series of questions
7. Define Plog’s                    visit friends beliefs,
                                    attractvalues, and
                                    about more tourists.
   psychographic analysis.          and lifestyles. for
                                    relatives or
                                    enjoyment.
                     continued                              36
                 Economics and the Impact of Tourism

                 Checking Concepts

Critical Thinking              8. The reasons for
                                  travel identified by
8. Explain at least three         Plog researchers
   reasons for travel             include reducing
   provided by Plog               stress; enriching
   researchers.                   perspectives on
                                  life; bringing family
                                  closer together;
                                  doing what you
                                  want when you
                                  want; and feeling
                                  alive and energetic.
                                                      37
End of


Economics and
the Impact of
Tourism




Back to Table of Contents
Economics and the Impact of Tourism




                                 39

								
To top