Interdependency between various segments of the hospitality industry means

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O B J E C T I V E S

After reading and studying this chapter, you should be able to:

• Define tourism.

• Outline the important international and domestic tourism organizations.

• Describe the economic impact of tourism.

• Identify promoters of tourism.

• List reasons why people travel.

• Describe the sociocultural impact of tourism.

• Describe ecotourism.

C H A P T E R 2

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36 Part I The Hospitality Industry and Tourism

Highlights of Tourism It is difficult to determine when tourism be star because, centuries ago, very few people traveled for pleasure or business as they do today. We do know that:

• In the fourth century B.C. (before Christ), work started on the Great Wall of China and it continued for centuries until the1600s. Although not exactly a tourist destination or attraction back then, it certainly is today.

• In 776 B.C., athletic games were held on the plain of Olympia in Greece (now the Olympic Games), and presumably people traveled there to participate or to watch.

• The Romans liked to visit the Bay of Naples, so they built a road from Rome in A.D. 312 (after Christ). The road was 100 miles long and took four days by litter to get there (in which a nobleperson sat on a platform and was carried by some unfortunate servants).

• Religious pilgrimages to Rome and the Holy Land (now Israel) began in the 1200s, so inns sprang up to feed and accommodate the pilgrims.

• Marco Polo became the first noted business traveler as he pioneered trade routes from Europe to China, staying at primitive inns called khans along the way, from 1275 to 1292.

• In the 1600s, during the age of horse-drawn coach travel in England, posthouses were set up to feed and shelter travelers and change the teams of horses every few miles. The journey from London to Bristol took three days—it now takes less than three hours by rail.

• In 1841, Thomas Cook organized a group tour for 570 people to a religious meeting in England.

• In the 1850s, Monaco (a principality in the south of France) decided to cure its economic woes by becoming a winter haven for the rich as a health resort and a casino.

• Cruising began in the 1840s with the Cunard Lines crossing the Atlantic between England and North America.

• In the 1840s, the Peninsula and Oriental Steam Navigation Company (P&O) cruised the Mediterranean.

• During the age of the grand tour from 1880 through the 1930s, wealthy Europeans toured Europe as a part of their education.

• Rail travel began in the 1800s.

• Auto travel began in the 1900s.

• Air travel began in the 1900s.

• American Airlines’ first transcontinental flight between New York and Los Angeles was introduced in 1959.

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Chapter 2 Tourism 37

• In 1970, the Boeing 747 began flying 450 passengers at a time across the Atlantic and Pacific Oceans.

• In the 1970s, ecotourism and sustainable tourism became important topics.

• In the 1980s, cruising became popular

• In 1986, the United States established the Visa Waiver Program to eliminate unnecessary barriers to travel to the United States. Currently, twenty-seven countries are part of the program.

• In the 2000s, tourism temporarily declined as a result of the September 11 attacks, severe acute respiratory syndrome (SARS), bird flu, and war. However, tourism is now increasing at a rate of about 4.6 percent a year, according to the World Travel and Tourism Council.

What Is Tourism? Tourism is a dynamic, evolving, consumer-driven force and is the world’s largest industry, or collection of industries, when all its interrelated components are placed under one umbrella: tourism, travel; lodging; conventions, expositions, meetings, events; restaurants, managed services; assembly, destination and event management; and recreation. Tourism plays a foundational role in framing the various services that hospitability companies perform.

The leading international organization in the field of travel and tourism, the World Tourism Organization (WTO), is vested by the United Nations with a central and decisive role in promoting the development of responsible, sus- tainable, and universally accessible tourism, with the aim of contributing to economic development, international understanding, peace, prosperity, and universal respect for and observance of human rights and fundamental free- doms. In pursuing this aim, the organization pays particular attention to the interests of the developing countries in the field of tourism. The World Tourism Organization’s definition of tourism is “Tourism comprises the activ- ities of persons traveling to and staying in places outside their usual environ- ment for not more than one consecutive year for leisure, business, and other purposes.”1

The WTO plays a catalytic role in promoting technology transfers and inter- national cooperation, stimulating and developing public–private sector partner- ships, and encouraging the implementation of the Global Code of Ethics for Tourism. The WTO is dedicated to ensuring that member countries, tourist des- tinations, and businesses maximize the positive economic, social, and cultural effects of tourism and fully reap its benefits, while minimizing its negative social and environmental impacts. Francesco Frangialli, secretary-general of the World Tourism Organization writes:

The Global Code of Ethics for Tourism sets a frame of reference for the responsible and sustainable development of world tourism. It draws inspira- tion from many similar declarations and industry codes that have come before

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38 Part I The Hospitality Industry and Tourism

and it adds new thinking that reflects our changing society at the beginning of the 21st century.

With international tourism forecast to nearly triple in volume over the next 20 years, members of the World Tourism Organization believe that the Global Code of Ethics for Tourism is needed to help minimize the negative impacts of tourism on the environment and on cultural heritage while maximizing the benefits for residents of tourism destinations.

The Global Code of Ethics for Tourism is intended to be a living document. Read it. Circulate it widely. Participate in its implementation. Only with your cooperation can we safeguard the future of the tourism industry and expand the sector’s contribution to economic prosperity, peace and understanding among all the nations of the world.2

Through tourism, the WTO aims at stimulating economic growth and job cre- ation, providing incentives for protecting the environment and cultural heritage, and promoting peace, prosperity, and respect for human rights. Membership includes 143 countries, 7 territories, and some 350 affiliate members representing the private sector, educational institutions, tourism associations, and local tourism authorities. Unfortunately, the United States is not a member, but it may soon be.

The World Tourism Organization and the World Travel and Tourism Council (WTTC) declare the travel and tourism industry to have the following characteristics:3

• A 24-hour-a-day, 7-day-week, 52-week-a-year economic driver

• Responsible for 10.2 percent of world gross domestic product (GDP)

• Employer of 214 million people, or 7.8 percent of the global workforce

• Creation of more than 5.5 million travel and tourism jobs per year during the 2000s

• Spending on tourism in the United States is $72.3 billion

• Leading producer of tax revenues

• Forecasted 4.6 percent growth between 2006 and 2015.

Given the declining manufacturing and agricultural industries, and in many countries the consequent rise in unemployment, world leaders should turn to the service industries for real strategic employment gains. For many developing nations, tourism represents a large percentage

Waikiki Beach is a popular tourist destination

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Chapter 2 Tourism 39

of gross national product and a way of gaining a positive balance of trade with other nations.

� Check Your Knowledge

1. What role does the WTO play in the tourism industry?

2. Describe the characteristics of tourism.

3. How is tourism sometimes categorized?

Benefits of Tourism Tourism is firmly established as the number one industry in many countries and the fastest-growing economic sector in terms of foreign exchange earnings and job creation. International tourism is the world’s largest export earner and an important factor in the balance of payments of most nations.

Tourism has become one of the world’s most important sources of employment. It stimulates enormous investment in infrastructure, most of which helps to improve the living conditions of residents as well as tourists. It provides governments with substantial tax revenues. Most new tourism jobs and businesses are created in the developing countries, helping to equalize economic opportunities and keep rural residents from moving to overcrowded cities. Intercultural awareness and personal friendships fostered through tourism are powerful forces for improving interna- tional understanding and contributing to peace among all the nations of the world.

The World Tourism Organization encourages governments, in partnership with the private sector, local authorities, and nongovernmental organizations, to play a vital role in tourism. The WTO helps countries throughout the world to maximize the positive impacts of tourism, while minimizing its possible negative consequences on the environment and societies. Tourism is a collection of industries, or segments, that when combined, form the world’s largest industry. Tourism offers the greatest global employment prospects. This trend is caused by the following factors:

1. The opening of borders: Despite security concerns, we can travel to more countries now than ten years ago. The United States has a visa waiver program with twenty-eight European countries, meaning citizens of these countries with machine-readable passports do not require a visa to visit the United States.

2. An increase in disposable income and vacation taking.

3. Reasonably affordable airfares.

4. An increase in the number of people with more time and money to travel.

5. More people with the urge to travel.

According to the World Travel and Tourism Council—the industry’s business leaders’ forum—tourism and travel generate, directly and indirectly, 10.2 percent

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40 Part I The Hospitality Industry and Tourism

of global gross domestic product (GDP), investment, and employment. The industry is forecast to grow strongly in real terms during the next ten years. This means growth in jobs in the United States and abroad.

Long-Term Prospects: Tourism 2020 Vision Despite the terrorism attacks and a weak economic recovery, the long-term prospects for tourism appear to be good. Tourism 2020 Vision is the World Tourism Organization’s long-term forecast and assessment of the development of tourism for the first twenty years of the new millennium. An essential outcome of the Tourism 2020 Vision is quantitative forecasts covering a twenty-five-year period, with 1995 as the base year and forecasts for 2000, 2010, and 2020 (Figure 2–1).

WTO’s Tourism 2020 Vision forecasts that international arrivals are expected to reach more than 1.56 billion by the year 2020. Of these, 1.2 billion will be intraregional and 0.4 billion will be long-haul travelers.

The total tourist arrivals by region show that by 2020 the top three receiv- ing regions will be Europe (717 million tourists), East Asia and the Pacific (397 million), and the Americas (282 million), followed by Africa, the Middle East, and South Asia.

The fact that tourism is expected to grow rapidly presents both tremendous opportunities and challenges. The good news is the variety of exciting career prospects for today’s hospitality and tourism graduates. Tourism, although a mature industry, is a young profession. Careful management of tourism and travel will be necessary to avoid repercussions and negativism toward the “pesky” tourist, which is already happening to some extent in Europe, where the sheer number of tourists overwhelms attractions and facilities.

There is an interdependency between the various segments of tourism, travel, lodging, foodservice, and recreation. Hotel guests need to travel to reach the

1,600

1,400

1,200

1,000

800

600

400

200

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1950 1960 1970 1980 1990 2000 2010 2020

South Asia

Middle East

Africa

East Asia and the Pacific

Americas

Europe

ForecastsActual

703 mn

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1.6 bn

Figure 2–1 • Actual and Forecast Tourism Arrivals 1950–2020. (Source: World Tourism Organization.)

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Chapter 2 Tourism 41

hotel. They eat in nearby restaurants and visit attractions. Each segment is, to an extent, dependent on another for business.

The Five Ages of Tourism The historical development of tourism has been divided into five distinct ages (or periods),5 four of which paralled the advent of a new means of transportation.

Pre–Industrial Revolution (prior to 1840)

The railway age

The automobile age

The jet aircraft age

The cruise ship age

Pre-Industrial Revolution As early as 5,000 years ago, some ancient Egyptians sailed up and down the Nile River to visit and construct the pyramids. Probably the first journey ever made for the purposes of peace and tourism was made by Queen Hatshepsut to the Land of Punt (believed to be on the east coast of Africa) in 1480 B.C. Descrip- tions of this tour have been recorded on the walls of the temple of Deir el-Bahri at Luxor.6 These texts and bas-reliefs are among the world’s rarest artworks and are universally admired for their wondrous beauty and artistic qualities. The Colossi of Memnon at Thebes have on their pedestals the names of Greek tourists of the fifth century B.C.7 The Phoenicians were among the first real trav- elers in any modern sense. In both the Mediterranean and the Orient (now called Southeast Asia), travel was motivated by trade. Later, the Roman Empire pro- vided safe passage for travelers via a vast road system that stretched from Egypt to Britain. Wealthy Romans traveled to Egypt and Greece, to baths, shrines, and seaside resorts.8 The Romans were as curious as are today’s tourists. They visited the attractions of their time, trekking to Greek temples and places where Alexander the Great slept, Socrates lived, Ajax committed suicide, and Achilles was buried; the pyramids; the Sphinx; and the Valley of the Kings—just as today’s tourists do.9 The excavated ruins of the Roman town Pompeii, which was buried by the volcanic eruption of Mount Vesuvius, revealed some twenty-plus restaurants, taverns, and inns that tourists visit even today.

The first Olympic Games for which we still have written records were held in 776 B.C. (though it is generally believed that the games had been going on for many years already).10 Thus, sports has been a motivation for tourism for a long time.

Medieval travel was mostly for religious or trade reasons. People made pilgrimages to various shrines: Moslems to Mecca and Christians to Jerusalem and Rome. The Crusades (which began in 1195 and lasted for the next two hundred years) stimulated a cultural exchange that was in part responsible for the Renaissance.

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Marco Polo (1254–1324) traveled the Silk Road, which was anything but a road as we know it, from Venice to Beijing. He was the first European to jour- ney all the way across Asia to Beijing, China, and his journey, which lasted twenty-four years, and the tales from it became the greatest travelogue.11

The journey was both difficult and dangerous (excerpts can be read at the several Marco Polo web sites). One time, to make sure the Polo brothers would be given every assistance on their travels, Kublai Khan presented them with a golden tablet (or paiza, in Chinese, gerege, in Mongolian) a foot long and three inches wide inscribed with the words “By the strength of the eternal Heaven, holy be the Khan’s name. Let him that pays him not reverence be killed.” The golden tablet was a special VIP passport, authorizing the travelers to receive throughout the Great Khan’s dominions such horses, lodging, food, and guides as they required.12 This was an early form of passport.

� Check Your Knowledge

1. Describe the benefits of tourism

2. How many arrivals are forecast for 2010?

3. What are the five ages of tourism?

The Hall of Supreme Harmony in Beijing’s Forbidden City

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Rail, Automobile, and Coach Travel Changes in the technology of travel have had widespread implications for soci- ety. In the United States, rail travel influenced the building of towns and cities, caused hotels to be built near rail depots, and opened up the West, among other things. Likewise, auto travel produced the motel and a network of highways, and the commercial jet created destination resorts in formerly remote and exotic locations, made the rental car business a necessity, and changed the way we look at geography. Although long-distance travel has always been fairly comfortable for the wealthy, it was not until the development of the railroad in the 1830s that travel became comfortable and cheap enough to be within reach of the masses.

Traveling by Train Coast to coast, the United States has a lot of land with a fair share of mountains, canyons, forests, deserts, rivers, and other natural barriers to travel. One of the main factors that led to the development of railroads in the United States was the need to move goods and people from one region of the country to another. Farmed goods needed to be transported to industrial areas, and people wanted a quicker route to the West, especially after the discovery of gold in California. Those who already lived at the frontier wanted the same conveniences as their neighbors in the East, such as efficient postal service.

The train made mass travel possible for everyone. Long-distance travel became both cheaper and faster, making the horse and ship seem like “over- priced snails.” The vast rail networks across North America, Asia, Australia, and Europe made the train sta- tion a central part of nearly every community. Naturally, entrepre- neurs soon built hotels conve- niently close to train stations.

Although hugely important and popular for many years, the popularity of rail travel started to decline as early as the 1920s. Why did people stop using the train? For two main reasons: the bus and the car. In addition, the Great Depression of the 1930s certainly deterred travelers. Although World War II brought a new surge in pas- senger numbers, people were sel- dom traveling for pleasure, and at the close of the war, the decline continued. Automobiles were again available, and people had

The Aerodynamic Amtrak ACELA train speeding along between Washington, D.C., and New York City reaches its destination in 2 hours 45 minutes

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the money to buy them. By 1960, airplanes had taken over much of the long- distance travel market, further reducing the importance of the train.

Facing a possible collapse of passenger rail services, Congress passed the Rail Passenger Service Act in 1970 (amended in 2001). Shortly after, the National Railroad Passenger Corporation began operation as a semipublic corporation established to operate intercity passenger trains, a move in the direction of semi- nationalization of U.S. railroads. The corporation is known today as Amtrak.

Rail Travel Abroad While the United States tries to rejuvenate rail travel under the direction of Amtrak, rail service in other parts of the industrialized world is far ahead in progress. Taking the train makes good sense in densely populated areas such as those in western Europe and parts of Asia, and high-speed networks are already well developed, often drawing most of the traffic that formerly went by air. One good example is the Eurostar, connecting the United Kingdom with mainland Europe via the 31-mile-long underwater Channel Tunnel. France’s TGV (Trains à Grande Vitesse) trains are perhaps the best known of them all, serving more than 150 cities in France and Europe, and traveling at about 186 mph (although they have the capacity of running at 250 mph). The TGV’s most spectacular feature is the smoothness of the ride: It is like sitting in your armchair at home. Because of their importance, all trains—high speed or not—run frequently and on time. Fares are generally reasonable, and service levels are high.

Japan’s Shinkansen, the bullet train system, makes the 550-mile run between Tokyo and Osaka in 3 hours and 10 minutes, down from the former rail time of 18 hours. In addition, it provides a ride so smooth that a passenger can rest a cof- fee cup on the windowsill and not a drop will spill, just like the TGV.

Do you dream of exploring Europe? As a student, you have probably heard of the famous Eurail Pass. Several European nations have banded together to offer visitors unlimited first-class rail service for a reduced lump sum. However, if you want to use Eurail, be sure to purchase a pass before you leave home because the pass is sold only outside of Europe. When visiting Europe, you can choose to travel in one country, in a few selected ones, or in all with Eurail; it’s up to you to choose between the different passes available. In other parts of the world, Australia offers the Austrailpass, India the Indrail Pass, Canada the Canrail Pass, and Canada and the United States the North American Rail Pass. The new rail line in China linking Beijing to Nepal is interesting not only because it is one of the longest and one of the highest rail lines in the world, but also it is, according to some, going to dilute the Tibetan culture. This is one of the dilemmas of tourism: Some see this as economic and social development, and others want to leave things as they are.

Does the Train Have a Future? For long trips, flying is obviously a lot faster than taking the train is. Therefore, long-distance train service is generally used only by those afraid to fly, or those who enjoy train travel as an experience in itself. But, as we explored in the case

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of Amtrak, rail travel may make a comeback in the United States. As airports and roads become more congested, as road travel becomes more time-consuming, and parking a rare luxury, a train ride becomes more appealing. With the neces- sary improvements and the development of high-speed links, trains may become more time-efficient.

The Maglevs are also coming. Not aliens from outer space, but superfast trains suspended in the air and propelled by magnetic force. Maglevs can travel at speeds of more than 300 miles per hour, lifted off the ground on a cushion formed by magnetic forces and pulled forward by magnets. They run more qui- etly and smoothly and can climb steeper grades than the conventional train can. Magleus are more energy efficient, have lower maintenance costs, and require fewer staff than does comparable transportation; however, given the high cost of construction, the concept may not prove viable. China, on the other hand, does not seem to worry about the steep cost of the Maglev. The city of Shanghai has chosen Transrapid as its partner to build a twenty-mile Maglev link connecting the new airport to the Shanghai business district. If successful, an 800-mile link will be installed from Shanghai to Beijing. So, is the Maglev really feasible? Opponents of the idea claim that the Maglev is far too expensive to be worth the investment, considering that current high-speed trains can travel at speeds exceeding 200 mph if given the right conditions.

Traveling by Car The internal combustion engine automobile was invented in Germany but quickly became America’s obsession. In 1895, there were about 300 “horseless carriages” of one kind or another in the United States, including gasoline bug- gies, electric cars, and steam cars. Even during the Great Depression, almost two- thirds of American families had automobiles. Henry Ford’s development of the assembly line and construction of good, solid roads helped make the automo- bile the symbol of American life that it is today.

The auto changed the American way of life, especially in the leisure area, creating and satisfying people’s urge to travel. The automobile remains the most convenient and rapid form of transportation for short and medium dis- tances. Without question, it has made Americans the most mobile people in his- tory and has given them options not other- wise possible. Whereas many Europeans ride their bikes or use the bus or train to get to school or work, Americans cannot

Rental cars offer business and leisure travelers the convenience of fly–drive or drive-only to facilitate tourists’ needs

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seem to function without their cars. In fact, it is not uncommon for an American to drive 20,000 miles a year.

Road trips are a must for most Americans—college students, families, and retirees alike. Travel by car is by far the largest of all segments in the ground trans- portation sector of the travel and tourism industry. So, it is no wonder that the highways and byways of the United States and Canada play such important roles in tourism. The advantages of car travel are that the car brings you to places that are otherwise inaccessible. Mountain resorts, ski destinations, dude ranches, and remote beaches are just a few examples. This travel generates millions of dollars, and in certain places the local economy depends on the car tourist.