Global Tourism

Trends and Changes in the Global Tourism Industry

You should be able to: 1. Explain the benefits tourism brings

to a country and its people2. Describe the changing nature of

global tourism3. Describe the trends of both domestic

and international tourism

By the end of this lesson

So why is tourism important?It is a major contributor to the global economy in terms of:

1. Generating income for countries (GDP)

2. Creating employment for the people

So why is tourism important?

Global GDP2012 US$6,526.9 bn (9.2% of GDP)

2022 (Est.)US$9,939.5 bn (9.8% of GDP)

Source: WTTC, 2012

So why is tourism important?Global

Employment2012 260 million jobs (8.7% of total employment)

2022 (Est.)327.9 million jobs (9.8% of total employment)

Source: WTTC, 2012

International Trends• Tourism has experienced continued expansion

and diversification in the last 60 years• It is one of the largest and fastest-growing

economic sectors in the world

Tower Bridge and Cannery Wharf, London, UK

International tourist arrivals have shown uninterrupted growth: 277 million in 1980 to 983 million in 2011, expected to break 1 billion in 2012

International tourism receipts for 2011 are estimated at US$ 1,030 billion worldwide, setting new records in most destinations despite global economic challenges

International Trends• Market share of emerging economies has

increased from 30% in 1980 to 47% in 2011• Arrivals to emerging economies are

expected to increase at double the pace (+4.4% a year) of those to advanced economies (+2.2% a year)

Tourism in Rajasthan, India

Source: UNTWO, 2012

Domestic Trends• Singapore has experienced continued growth

in international tourist arrivals and tourism receipts

• Although fluctuations are present, tourism is moving generally in a positive trend

The New Downtown, Singapore

Domestic Trends• Growth fuelled by launch of two integrated

resorts in 2010 and other attractions such as Universal Studios Singapore

• Events such as the F1 Singapore Night Race in 2010 which has attracted S$160 million in tourism receipts alone

Resorts World Sentosa, Singapore

International tourist arrivals to Singapore increased by 12.9 per cent from the previous year to a new record of 13.1 million in 2011

International Tourist Arrivals

International Tourist Arrivals 0

2

4

6

8

10

12

14

9.8mil 10.3 mil 10.1 mil 9.7 mil

11.6 mil13.1 mil

2006 2007 2008 2009 2010 2011Source: STB, 2011

Tourism receipts increased to a record high of S$18.9 billion, propelled by various factors such as the launch of the IRs and other events

Tourism Receipts 2006-2010

Source: STB, 2011

Changing Nature of Tourism

1. Evolution of mass tourism to niche tourism

2. From tour groups to independent travellers

3. Growth of long haul destinations

4. Development of package holidays and short haul destinations

Changing Nature of TourismEvolution of mass tourism to niche tourism• Mass tourism- act of visiting a destination

with large amounts of people at one time• Dominated by Tour Operators offering low

cost, standardised package tours

Changing Nature of TourismEvolution of mass tourism to niche tourism• Niche tourism targets a specific market

segment, usually with a well-defined product that can be tailored to meet the interests of the tourists

• What are some types of niche tourism you can think of?

Changing Nature of Tourism

Tomatina, Bunyol, Spain

Changing Nature of Tourism

Monkey Buffet, Lopburi, Thailand

Changing Nature of TourismFrom tour groups to independent travellers• Tourism moving towards independent travel

(e.g. backpacking) • Independent travel allows for more flexibility

in travel itinerary • Tourists are not bounded by restrictions laid

out by following tour groups

Changing Nature of TourismGrowth of long haul destinations • No standard definition of what is

considered long or short haul destinations• Some consider long haul destinations to

be more than 7 hours away by flight• Tourists moving away from regional

destinations to those which are further away (e.g. Singapore to Brazil/ USA)

Changing Nature of TourismDevelopment of package holidays and short haul destinations• Tour operators have noted the changing

nature of tourism as well• Tour packages moving towards adopting

niche tourism types (e.g. food and wine tourism)

• More long haul destinations included in packages

Chan Brother’s Premium Tours

• Flights by Singapore Airlines or Silkair Only

• Privileged access to Changi Airport Premier Club Lounges

• Authentic, unique and in depth experiences set apart from the rest

• Fine cuisine with diverse flavours• Group sizes with a few as 6 to depart

Changing Nature of Tourism

Development of package holidays and short haul destinations• Short haul destinations have also tried to

market themselves to niche markets• For Singapore, rise in ecotourism and

community-based tourism in short haul destinations

• E.g. Komodo national park, Orang Asli experience

Learning Points • The trend of global tourism is positive seen

from both rising tourist arrivals and tourism receipts

• Niche tourism types and independent travelling have become popular

• Package tours are adopting elements of niche tourism to attract the diverse market

• Tourism is the way to go because of the economic benefits it brings