INTRODUCTION OF TOURISM AS AN INTERNATIONAL BUSINESS

What is Tourism?

Tourism is travel for recreational, leisure or business purposes. The World Tourism Organization defines tourists as people who "travel to and stay in places outside their usual environment for more than twenty-four (24) hours and not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited."

Pre-requisites of Tourism
Motivation

Destination
Free Time

Extra Money
Transportation

Accommodation

Historical Perspective of Tourism

In search of Food, Shelter and Protection Trade, Health, Wars and Religion

In search of knowledge and studies

Use of Animals, Crude Transportations and Waterways The Egyptians traveled for trade & leisure Assyrians & Persians traveled by chariots, horses, and donkeys. Aryans used horses for long distance travels through Asia & Europe. Indus Valley people used boats and ships to travel up and down the Indus River and Arabian Sea for trade, religion and military expeditions.

Historical Perspective of Tourism

Greeks & Romans traveled for military expeditions, trade, leisure and religion with more developed means of transport. Europeans started travel for pilgrimage in around 5th Century with concept of Holy Days. The Renaissance period (16th Century) brought establishment of Inns and Sarais along famous pilgrimage routes from Europe to Jerusalem and the Great Silk Routes for trade between Central Asia and the rest of the World. With the advent of Islam, Hajj, Umrah, compilation of Hadith and Islamic Studies brought a new dimension to religious and study tours.

A few of great travellers Christopher Columbus, Ibn-e-Batuta, Hseun Tsang, Fa Hsien, Abu Rehan Alberooni, Marco Polo, Vascu De Gama etc.
During 19th Century, Rail travel increased, spas and sea resorts were developed.

Tourism Today

Means of Transportation:
Aero-planes, Ships, Coaches, Cars etc. Boats, Ferries, Trains, Buses,

Accommodation:
Inns, Motels, Hotels, Resorts, Youth Hostels, Guest Houses, Rest Houses

Purpose:
Leisure, Recreation, Study, Religion, History, Archaeology, Adventure, Culture & Nature, Visiting Friends & Relatives etc.

International tourism a key to development, prosperity and well-being

Over time, an ever increasing number of destinations have opened up and invested in tourism development, turning modern tourism into a key driver of socio-economic progress through export revenues, the creation of jobs and enterprises, and infrastructure development. As an internationally traded service, inbound tourism has become one of the worlds major trade categories. The overall export income generated by inbound tourism, including passenger transport, exceeded US$ 1.2 trillion in 2011, or US$ 3.4 billion a day on average. Tourism exports account for as much as 30% of the worlds exports of commercial services and 6% of overall exports of goods and services. Globally, as an export category, tourism ranks fourth after fuels, chemicals and food. For many developing countries it is one of the main sources of foreign exchange income and the number one export category, creating much needed employment and opportunities for development.

International tourism a key to development, prosperity and well-being

Tourisms direct contribution to GDP in 2011 was US$2 trillion and the industry generated 98 million jobs. Taking account of its direct, indirect and induced impacts, Travel & Tourisms total contribution in 2011 was US$6.3 trillion in GDP, 255 million jobs, US$743 billion in investment and US$1.2 trillion in exports. This contribution represented 9% of GDP, 1 in 12 jobs, 5% of investment and 5% of exports.

Long-term prospects are even more positive with annual growth forecast to be 4% per annum over the ten years to 2022.

Long-term Trends

Over the past six decades, tourism has experienced continued expansion and diversification, becoming one of the largest and fastest-growing economic sectors in the world. Many new destinations have emerged, challenging the traditional ones of Europe and North America. Despite occasional shocks, international tourist arrivals have shown virtually uninterrupted growth from 277 million in 1980 to 528 million in 1995, and 983 million in 2011. According to Tourism Towards 2030, UNWTOs recently updated, long-term outlook and assessment of future tourism trends, the number of international tourist arrivals worldwide is expected to increase by 3.3% a year on average from 2010 to 2030. This represents some 43 million more international tourist arrivals every year, reaching a total of 1.8 billion arrivals by 2030.

Key Trends - 2012

In 2011, international tourism receipts reached a record US$ 1,030 billion, up from 927 billion in 2010. This represents a 3.9% growth in real terms.

International tourist arrivals grew by 4% in 2012 to reach 1.035 billion, according to the latest UNWTO World Tourism Barometer. Emerging economies (+4.1%) regained the lead over advanced economies (+3.6%), with Asia and the Pacific showing the strongest results. Growth is expected to continue in 2013 only slightly below the 2012 level (+3% to +4%) and in line with UNWTO long term forecast.
With an additional 39 million international tourists, up from 996 million in 2011, international tourist arrivals surpassed 1 billion (1.035 billion) for the first time in history in 2012. Demand held well throughout the year, with a stronger than expected fourth quarter.

Key Trends - 2012

By region, Asia and the Pacific (+7%) was the best performer, while by sub-region South-East Asia, North Africa (both at +9%) and Central and Eastern Europe (+8%) topped the ranking. Europe holds the largest share of international tourism receipts (45% share), reaching US$ 463 billion (euro 333 bn) in 2011, followed by Asia and the Pacific (28% share or US$ 289 billion, and the Americas (19% share or US$ 199 billion. The Middle East (4% share) earned US$ 46 billion and Africa (3% share) US$ 33 billion.

Forecast for 2013

UNWTO forecasts international tourist arrivals to increase by 3% to 4% in 2013, much in line with its long term forecast for 2030: +3.8% a year on average between 2010 and 2020. This outlook is confirmed by the UNWTO Confidence Index. Compiled among over 300 experts worldwide, the Index shows that prospects for 2013 are similar to the evaluation of last year (124 points for 2013 against 122 for 2012). By region, prospects for 2013 are stronger for Asia and the Pacific (+5% to +6%), followed by Africa (+4% to +6%), the Americas (+3% to +4%), Europe (+2% to +3%) and the Middle East (0% to +5%).

Most travel by air and for the purpose of leisure

In 2011, travel for leisure, recreation and holidays accounted for just over half of all international tourist arrivals (51% or 505 million arrivals). Some 15% of international tourists reported travelling for business and professional purposes and another 27% travelled for other purposes, such as visiting friends and relatives (VFR), religious reasons and pilgrimages, health treatment, etc. The purpose of visit for the remaining 7% of arrivals was not specified. Slightly over half of travellers arrived at their destination by air transport (51%) in 2011, while the remainder travelled over the surface (49%) whether by road (41%), rail (2%), or over water (6%). Over time, the trend has been for air transport to grow at a somewhat faster pace than surface transport, so the share of air transport is gradually increasing.

Most tourists travel in their own region

The large majority of international travel takes place within the travellers own region, with about four out of five worldwide arrivals originating from the same region. Traditionally source markets for international tourism have been largely concentrated in the advanced economies of Europe, the Americas and Asia and the Pacific. However, with rising levels of disposable income, many emerging economies have shown fast growth over recent years, especially in a number of markets in Asia, Central and Eastern Europe, the Middle East, Southern Africa and South America. Europe is currently still the worlds largest source region, generating just over half of international arrivals worldwide, followed by Asia and the Pacific (22%), the Americas (16%), the Middle East (4%) and Africa (3%).

Worlds Top Ten Tourism Destinations (Tourist Arrivals)

Arrivals (millions) 2011 Rank 1. 2.

Country
France USA

2010
77.1 59.8

Percent Percent change change 2011 2010/2009 2011/2010 79.5 62.3 0.5 8.8 3.0 4.2

3.
4. 5.

China
Spain Italy

55.7
52.7 43.6

57.6
56.7 46.1

9.4
1.0 0.9

3.4
7.6 5.7

6.
7.

Turkey
UK

27.0
28.3

29.3
29.2

5.9
0.4

8.7
3.2

8.
9. 10.

Germany
Malaysia Mexico

26.9
24.6 23.3

28.4
24.7 23.4

10.9
3.9 4.2

5.5
0.6 0.5

Source: UNWTO

Worlds Top Ten Tourism Destinations (Tourism Receipts)

US$ in billion Country USA Spain France China 2010 103.5 52.2 46.6 45.8 116.3 59.9 53.8 48.5 Change % 2011 10/09 11/10 9.9 -1.2 -6.0 15.5 12.3 14.0 15.6 5.8

2011 Rank 1. 2. 3. 4.

5.
6. 7. 8. 9. 10.

Italy
Germany UK Australia Macao (China) Hong Kong (China)

38.8
34.7 32.4 29.8 27.8 22.2

43.0
38.8 35.9 31.4 N/A 27.7

-3.6
0.1 7.5 17.4 53.2 35.3

10.9
12.0 10.9 5.5 N/A 24.7

Asia and the Pacific

In 2012, growth was stronger in emerging economies (+4.1%) as compared to advanced economies (+3.6%), a trend which has marked the sector for many years now.

Asia and the Pacific (+7%) was up by 15 million arrivals in 2012, reaching a total 233 million international tourists. South-East Asia (+9%) was the best performing sub-region much due to the implementation of policies that foster intraregional cooperation and coordination in tourism. Growth was also strong in North-East Asia (+6%), as Japanese inbound and outbound tourism recovered, while it was comparatively weaker in South Asia (+4%) and in Oceania (+4%).

Asia and the Pacific growth driven by South-East Asian destinations

Asia and the Pacific (+6%) recorded an increase of 13 million tourist arrivals in 2011, reaching a total of 217 million. Growth slowed down compared to 2010 (+13%), largely due to the impact of the Thoku earthquake and tsunami in Japan affecting both inbound tourism to and outbound tourism from the country. The Asia and the Pacific region earned US$ 289 billion in tourism receipts, up US$ 34 billion from 2010, or a 4% increase in real terms. By sub-regions, South-East Asia experienced the highest growth in international arrivals (+10%), benefiting from strong intraregional demand. A large number of destinations reported double-digit figures, with Myanmar (+26%), Cambodia, Thailand (both +20%) and Vietnam (+19%) posting the highest growth in arrivals. In absolute terms, Thailand recorded the largest increase, with over 3 million more tourist arrivals, followed by Singapore (+1 million).

Tourism Growth in South Asia 2011

In South Asia, Bhutan (+39%), Sri Lanka (+31%) and Nepal (+22%) boasted the highest growth in South Asia (+8%), followed by Maldives (+18%). India, the largest destination in the sub-region, recorded a 9% increase. Pakistan kept its slow growth by only 2.8%.

Growth was comparatively lower in North-East Asia (+4%) owing to the drop in arrivals in Japan (-28%) and the temporary disruption of Japanese outbound travel, with expenditure on international tourism down by 11% in 2011. In contrast, both the Republic of Korea and Hong Kong (China) posted an 11% increase in arrivals, while China saw more modest growth (+3%).

THANK YOU