The Tourism Industry

• Many nations depend on tourism to be one of their biggest revenue generators

• Tourism represents approximately 33% of the world’s exports (revenue generation)

• For small countries it can represent almost 3/4ths of their yearly national income

• In 2007, 898 million people travelled internationally• In 2006, tourists spent $733 billion into the

countries they visited

Passports

• Recently, Western Hemisphere Travel Initiative (WHTI) required Canadians and Americans to carry valid passports when crossing the border

• Aimed to stop terrorists from getting into the States by crossing the Canadian border

• Has created significantly longer border waits

Why is tourism referred to as a sector?

• Sector: part or division of national economy• Essentially, tourism is a “product” that we sell and

the money we get from this product is used to help balance the budget and reduce national debt

• Tourism products are integrally connected, meaning one product does not flourish by itself but needs other, different components to help sell it

• Government appointed a committee to look at the tourism sector and the impact it has on Canadian society…..

“The Buchanan Report” stated…

1. Tourism created more jobs at a faster pace than any other industry in Canada

2. The money it made benefitted all levels of government (federal, provincial, municipal) by nearly 40%

3. Tourism created jobs for more women, more young adults, more visible minorities, more people re-entering the workforce and more immigrants than any other industry in Canada

4. Jobs ranged from entry-level to highly paid executive positions.

5. Value of tourism was vastly underrated and misunderstood by the government and the public

What on earth did that mean?

• We like money, we want more money steps were taken to ensure that the tourism sector continued to grow

Eight Components of Tourism Sector

1. Transportation2. Accommodation3. Food and Beverage4. Attractions5. Events6. Adventure Tourism and Outdoor Recreation7. Travel Services8. Tourism Services

Transportation

• How to get to destination and also how to get around once at destination

• Airlines, railroads, cruises, tour busses, rental cars

Creates jobs for: Pilots, reservation agents, cruise director, car rental agent, customer services agent, purser on train/ship/plane, captain of charter boat

Accommodations

• Travelers need a place to sleep• Hotels, bed and breakfasts,

cabins, cottages, hostels, couch surfing

Creates jobs for: front-desk clerk, hostel manager, health-club manager, valet, camp counselor, night auditor, groundskeeper, concierge, housekeeper

Food and Beverage

• Largest in the tourism sector, greatest opportunity for entrepreneur

• Full-service restaurants (fine dining, family style, specialty, theme), limited-service (fast food), drinking establishments (bars, pubs, taverns), food in hotels, food in airports, delis or gourmet shops, etc!!!

Creates jobs for: wine steward, banquet chef, baker, bartender, nightclub manager, food service director, catering manager, food/beverage server

Attractions• Entertain and educate the visitors• Can be permanent or

manufactured• Historical sites, museums,

theaters, casino, waterparks, gardens, zoos

Creates jobs for: travel guide, casino dealer, heritage interpreter, attraction facility guide, amusement park supervisor, sales manager, public relations manager

Events

• Calgary Stampede, Canmore Highland Games• Festivals, sporting events, conventions, meetings

Creates jobs for: destination services rep, program specialist, registration supervisor, catering coordinator, special event manager, trade show operator, meeting planner, exhibit designer, convention center manager

Adventure Tourism and Outdoor Recreation (ATOR)

• Provides hands-on physical activities for visitors (tennis, golf, hiking, skiing, fishing, etc)

• Driven by desire to stay fit and healthy through exercise

• $5 billion in revenue each year!!• Ecotourism: travel intended to support study of

earth’s biodiversityCreates jobs for: local tour guide, ski lift operator,

park warden, avalanche control trainee, lifeguard, tennis pro, recreation director, marina manager

Travel Services• Hotel reservations, flight

packages• 4500 travel agencies in

Canada

• Creates jobs for: reservation agents, tour guide, sales rep, incentive travel specialists, tour planner, package tour coordinator, destination development specialist, tour operator, travel agency owner

Tourism Services• Support services for the tourism sector• Research, marketing, consulting, education,

media coverage• Information centers, gift shops, travel

insurance, duty-free shops

North American Standard Industrial Classification (NAICS)

• Wanted all countries to have equivalent statistics• Merged the 8 components into 5 sub-sectors:1. Accommodations2. Food and beverage3. Recreation and entertainment4. Transportation5. Travel Services• AKA they combined attractions, events and ATOR

as “entertainment”

Many jobs are unaware that they are part of tourism industry

• For example, if you ask a bartender if he/she works in tourism, he/she will probably say no

• However, food and beverage falls under tourism umbrella

Different Types of Tourism

• Tourism: “the activities of persons travelling to and staying in places outside their environment for not more than one consecutive year for leisure, business and other purposes” (as defined by the World Tourism Organization)

Group Work• Create a slide for the type of tourism you were

assigned. Explain what it is and give an example:1. Agricultural Tourism2. Ecotourism3. Culinary Tourism4. Volunteer Tourism5. Spa Tourism6. Medical Tourism7. Extreme Tourism

Why has the tourism industry grown?

Reason for Tourism growth

1. Advancements made in how we transport people (trains, cruises, planes)

2. Better marketing, promotions, and media coverage3. Computers and Internet4. Better educational systems5. More disposable income6. More stressful lifestyle7. Declining cost of travel8. Common currencies9. Political Stability10.Easing of government restrictions