REC 280 MIDTERM 1.docx

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Department
Recreation and Leisure Studies
Course
REC 280
Professor
Stephen Smith
Semester
Winter

Description
Chapter One – Understanding Tourism - UNWTO – World Tourism Organization - Tourism referred to as an industry or a sector that is a part or division of a national economy - Tourism products are integrally connected  one product does not flourish by itself but needs other, different components to help sell it - Buchanan Report (published in 1994) stated: o As an industry, tourism had the ability to create more jobs at a faster pace than any other industry in Canada o The dollars created by the industry benefited all levels of government with nearly 40% of revenues split between federal, provincial, and municipal organizations. o Tourism employed more females, more young adults, more visible minorities, more people re-entering the workforce, and more new immigrants than any other industry in Canada. o The quality of jobs created by the industry ranged from entry level to highly paid executive positions, many f them requiring a strong set of personal skills and a higher set of work skills than generally understood by the public. o The value of tourism was vastly underrated and misunderstood by all levels of the government as well as the Canadian public. - After the Buchanan Report was published, there was establishment of: o CTC – Canadian Tourism Commission;  Responsible for promoting all areas of the industry both at home and on a global basis o CTHRC – Canadian Tourism Human Resource Council  Responsible for identifying and developing training standards and programs for all areas and levels of the industry - Tourism sector was identified as being made up of 8 interlocking sub-sectors: o Transportation  Provides visitor with a way to get to a destination and to get around once the destination is reached (ex. Airlines, railroads, cruise lines, tour bus companies, and care rental companies)  Skills developed in one area of transportation are easily transferred to another (ex. reservation agent, customer service agent, purser, etc) o Accommodations  Provides travellers with a place to sleep and includes any type of lodging available to the travelling public (ex. Hotels)  Services required may differ based on situation o Food and beverage  is the largest component in the tourism sector and provides the creates opportunity for an entrepreneur  This industry includes all full-service restaurants (fine dining); all limited-service eating places (fast food); all drinking establishments (bars, pubs); food services contracted in lodging facilities; contract food service in airports and arenas; catering firms; and deli and gourmet shops o Attractions  Component entertains and educates the visitor  Attractions are permanent (can be visited at any time of the year) and may be natural or manufactured o Events  Also educated and entertain the traveller but are only available for a short period of time  Professionals in this industry need good organizational skills, strong people skills, and the ability to focus on details o Adventure tourism and outdoor recreation  Provides hands-on, physical activities for visitors  Much growth is based on the desire to stay fit and healthy through exercise (ex. Skiing, golf, fishing)  Ecotourism: travel that is intended to support the study of earth’s biodiversity o Travel services ~ travel agencies  Combine a love of travel, an interest in geography and other cultures to create a job where someone can travel and still work near home o Tourism services  Provides support services for the tourism sector  Major components: federal, provincial, and municipal governments; associations and organizations; research, marketing, consulting, and education professionals; the media; and manufacturers - Recently, the North American Industry Classification System has combined attractions, events and ATOR to be “entertainment” o Accommodations, food & beverage, recreation & entertainment, transportation, and travel services. o Many people are unaware they are part of the tourism sector since it is so large - Agricultural Tourism: gives visitor the change to enjoy the change to work on a family farm, learning more about the production of a specific product - Volunteer Tourism: desire to give back to the world community, to learn more about a culture, or just to change their daily life patterns for a short period of time, tourists are paying to volunteer (ex. Travel to Kenya to build a water system) - Spa Tourism: focuses on the overall health and well being of the traveller - Medical tourism: branch off spa tourism where travellers go to a destination to get specific medical practice unavailable at home - Extreme tourism: ex. Strom chasing, swimming with sharks, ice diving - Tourism has grown in the past 50 years for the following reasons: o The advancements made in our transportation system  Planes bigger and safer  Continued improvements will make travel less expensive and more accessible to tourists, adding to the growth of tourism o The advancements made in media coverage  Televised sporting (ex. Olympics and super bowl) allow people to experience the thrill of the event  Excitement generated on screen helps create a desire to experience the event in person o The introduction of computer systems o The internet and ecommerce  TIAC – Tourism Industry Association of Canada  Assist consumers who are looking for travel related internet services but also allows buyers and sellers of tourism products to connect more easily through the travel directory o Better educational systems  The more education people have, the more willing they are to travel o More disposable income  More money left over after bills are paid because of the rising numbers of two- income families o A more stressful lifestyle  Stress creates the physical and emotional need to get away o Declined cost of travel  Lower cost makes it more accessible to everyone o Better marketing and promotion o Common worldwide currency  Ex. Credit cards o Easing of government travel restrictions  Fewer regulations a country places on international travellers, the stronger the prospect for a sound international tourism market o Political stability - Trip: travel that takes a person over 80 km from place of residence (Except work, school, travel by ambulance or to hospital or clinic, or a trip longer than a year) - Foreign tourist/inbound tourist: people visiting a country for a period of at least 24 hours - Outbound tourists: people living in Canada travelling to other countries - Domestic tourist: people travelling in the country in which they reside - Excursionists/same day visitors: people who travel 80 km from their homes without staying overnight - Leakage: when community cannot support the influx of tourists and must import workers and goods in order to sustain the industry - Historical research suggests people seldom travelled for pleasure but to find new food sources, to adjust to climatic changes or escape other tribes o Those who did travel for pleasure or for business were linked by marriage and common ideals o Traders travelled to different lands to find goods to bring home o Sumerians and Phoencians were known as traders  They focused on industry to increase their wealth and established early trade routes in the African/southern European corridors - Ancient people travelled frequently to conduct trade, to complete government business, and for educational, religious, and social reasons - Roman Empire show conditions where tourism may flourish – peace and prosperity o Travel modes should be easily accessible and safe o Common currency, a common language, and well established legal system are essential - Between 1800 and 1939, more accessible modes of travel became available and tourism grew (invention of cars, improvements with steamships and steam trains) - After the outbreak of WWII, safe travel was difficult and people didn’t travel o After the war, there were many advances with bigger and faster planes and automobiles o Industrialized nations became prosperous and the prosperity had gave more discretionary income and time, which helped build toady’s tourism sector - After the World Trade Center incident, tourism has become a target for terrorists and from now on, tourists will choose destinations with greater concern for their personal safety - INTERNATIONAL ORGANIZATIONS o World Tourism Organization (UNWTO): official consultative organization to the UN on tourism  Aim is the promotion and development of tourism, with a view to contributing of economic development, international understanding, world peace, prosperity, and universal respect for and observance of human rights and fundamental freedoms for all  Provides international technical support, education, and training to member states o Canadian Tourism Commission (CTC): working partnership of tourism businesses and associations, provincial and territorial governments, and the government of Canada o Canadian Tourism Human Resource Council (CTHRC): provides national forum to facilitate human resource development activities that will support a globally competitive and sustainable Canadian tourism sector  Brings together the work of the provincial tourism education councils under a national framework o Tourism Industry Association of Canada (TIAC): founded to encourage tourism in Canada  Works with customs to improve reception of all travellers o Association of Canadian Travel Agents (ACTA): not-for-profit trade association for much of the travel sector in Canada o Canadian Tourism Research Institute (CTRI): integral part of Canada’s foremost research institute Lecture One - Tourism takes many forms o Activity based (ex. Ski tourism, spa tourism, business tourism, golf tourism, culinary tourism) o Resource-based (ex. Urban tourism, wildlife tourism, tea tourism) o Market-Based (ex. Senior tourism, Youth tourism) - Tourism is an export industry o Export brings in foreign currency (tourism is an export industry where the tourist is the thing that is being shipped – exports bring in currency from somewhere else) - Three forms of economic impact o Direct: revenues received by business from visitors o Indirect: revenues received by business when a tourism business buys new supplies  When tourism companies go buy new supplies, they will need to spend money from visitors so they can renew their supplies o Induced: revenues received by businesses from spending of employees of other businesses  Spending by employees for their own life - Multipliers: increase in wealth/jobs triggered by re-circulated visitor spending  Visitors will spend money and the money will go towards buying supplies (indirect) and paying bills (induced) o Several different ways of calculating 1. Phenomenon: real but many people abuse it by making up estimates o Size of multiplier a function of “leakages” (money is lost to the economy)  Lost through exports (more you export, the more leakage), savings, taxes o Multipliers tend to be larger in larger (more self-sustained) economies - Tourism balance of payments o Difference between money spent in Canada by international visitors and money spent out of Canada by Canadians travelling abroad  Negative balance since the expo in 1986  This is because we are up north and it’s cold in the winter  places with positive balances tend to be warmer countries  Confident citizens are interested in travel and are healthy and intelligent citizens (even negative payments have a positive side) - Tourism: the activities of persons travelling to and staying in places outside their usual environment for not more than one year for virtually any purpose other than the pursuit of remuneration from within the place visited o Tourism is NOT a service that a business or someone provides – it is the activity of people o Tourism involves travel so they have to leave their usual environment o You can travel for business as long as you aren’t going elsewhere to make money - Visitor: anyone who is engaged as a consumer in tourism - Tourist: a visitor who stays overnight - Same-day Visitor: a visitor who doesn’t stay over night (need to be overnight to be a tourist!) - Industry: a set of businesses characterized by the production of a relatively homogeneous product using a relatively standardized technology - Tourism industry: an industry that is characterized by the production of a tourism commodity o Tourism isn’t just a single industry. There are several business services that allow you to move around and will allow you to stay overnight somewhere – it isn’t a homogenous product - Tourism commodity: any good or service for which a significant portion of its demand comes from visitors - Tourism ratio: the portion of the supply of a tourism commodity purchased by individuals engaged in tourism - Tourism and non-tourism industries produce both tourism and non-tourism commodities - Visitors and non-visitors use tourism and non-tourism commodities - The challenge is to identify the potion (tourism ratio) of expenditures on tourism and other commodities that is really due to tourism o Canada has pioneered a method to do this o Tourism Satellite Accounting (TSA) Chapter Two – Tourism Guests and Hosts - Guests commonly grouped in 3 ways depending on the purpose and the study source o Motivators (business or pleasure) o Business  Fill nearly 35% of all airline seats and are usually members of one or more frequent customer programs  4 major types of travellers make up the business market 1. Frequent Business traveller: guests often stay repeatedly in the same hotel, which offers them specialized services 2. Luxury business traveller: desires the best travel experiences – not concerned with costs but consider service attitudes 3. Female business traveller: more concerned with safety issues and more likely to order room service than to venture outside for meals 4. International business traveller: travel in this segment is down due to high costs and weakening global economy. International companies use internet conferencing as alternative  Travellers tend to stay on the road a little longer to maximize accomplishments while minimizing cost o Pleasure  Discretionary time: time away from work and other obligations  Discretionary income: money people may spend as they please  Family life stage: helps determine when, where, and how a person takes a vacation  Depends on the discretionary income and time  People in young-single stages have more discretionary income and time than other stages o Demographics (age, occupation, education, income level, marital status)  Tourism business is aware of age, occupation, income, marital status, education, and gender to characterize the guest  Helps the business determine the type of facilities and services that best suit a guest’s needs o Psychographics (personality, behaviours, likes and dislikes)  Helps hosts to understand the activities, interests, opinions, personalities, and likes and dislikes of guests - Plog designed a scale to determine what type of person will do what o Allocentric: risk taker – Prefers to go to a place where no one has gone before and willing to go without normal conveniences of life to gain fuller experience o Psychocentrics: prefer to get travel experience watching television and specialty travel networks  Visiting friends and relatives is a common motivation for them  Make great repeat customers because once they have visited an area and enjoyed themselves, they will be comfortable in returning o Midcentrics: travel to obtain a break in their routine - Fiske and Maddi extended personality theory by adding two personality dimensions extroversion/introversion o Extrovert: an individual who is outgoing and uninhibited in interpersonal situations  Look to interact with the locals and go to their bars and restaurants to intermingle and make new friends o Introvert: more concerned with personal thoughts and feelings and is most likely to eat in a quiet, comfortable restaurant - Demographics and personality have great influence on where people travel and what activities they do when they get there o Motivator: a promoter of action – helps people decide what they want to do and when - Maslow’s Hierarchy of Needs o 5 levels of needs are specified from lowest to highest – must satisfy the lowest order before moving up o Few people satisfy their social and ego needs sufficiently to move to the 5 level need (self-actualization) so motivating forces in travel are social and ego needs - McIntosh and Goeldner separate into 4 basic categories 1. Physical Motivators: directly related to health (sports participation, relaxation, recreation) 2. Cultural Motivators: desire to learn more about the music, architecture, food, art o Stem from a curiosity to experience another way of life through travel rather than just through books and education 3. Interpersonal Motivators: strongest motivators and include visiting friends and relatives or escaping from family and friends 4. Status and Prestige Motivators: discussed as ego and self-esteem factors o Concern the need for recognition, attention, appreciation, and good reputation - Barriers to Travel o Cost: occupation and education may determine whether someone can afford the trip because these factors are often related to wage scale and time off the job o Lack of Time: travelling takes time so time limits the choice of destination and the mode of travel o Accessibility, Distance, Ease of Travel: distance and time are so closely related, they can stop travellers from picking their first choice destinations o Health and Disabilities o Travel Tastes and Experience: personality and age affect this barrier o Education: the more education you have, the greater your knowledge of the world and the more likely you are to seek out new experiences o Age: when young, travel is an exciting adventure but as we age, it is more difficult to handle change and travel stops altogether o Fear: fear of new places, fear of water, fear of flying, etc. - Tourism illiteracy: caused by lack of understanding of the benefits of tourism brings to a community - Benefits of Tourism o Economic Diversification: tourism sector provides a community with a wider variety of both full-time and part-time jobs than any other sector o Cultural preservation: chance to learn about other countries and ways of life o Better choices in entertainment, shopping, and food service o Enhanced Travel: roads, airports, ports, and public transportation are built or improved o Area beautification: tourists choose Canada as a destination because of its image as a clean, natural, and healthy environment o Tax Revenues: revenues that are generated pay for additional advertising for the area, bringing in more tourists without using local tax dollars o Foreign capital: when an international company invests in Canada, its foreign dollars help to build the Canadian product. Jobs are created and revenue is produced for Canadian tourism workers, with less investment needed from the region or municipalities o Recreational and educational facilities: many public universities and colleges would have financial difficulty were it not for government support, and most hospitality schools have had some form of government financing o Modernization: a strong tourism market means roadways must be maintained, new airports built, and other infrastructure regularly upgraded o A favourable world image: the value of hosting a large international even such as the Olympics cannot be underestimated - Barriers to Tourism Acceptance o Crime and unwanted behaviour: tourists come to a destination with money, credit cards, and other valuable belongings o Air, water, land, and noise pollution: adding a million additional people to a region during a short tourism season puts a strain on the ecosystem o Congestion of roadways, parks, shopping areas, recreational centers, attractions and restaurants: a feeling of ill will can be created when locals are forced to compete for a seat in their favourite restaurant or deal with the crowds and disruption of daily life brought about by a large event o Local Resentment: tension may develop when cultural or economic differences exist between guests and their hosts o Inflation: inflation increases when tourists come to town o Seasonal
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