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HTM 3484 Midterm: HTM-3484 - Midterm Review Pack


Department
Hospitality and Tourism Management
Course Code
HTM 3484
Professor
A Zatori
Study Guide
Midterm

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Midterm Review Pack HTM-3484
1
Lecture I: Tourism Defined
Setting the Stage
Tourism can be viewed as a business trip, study abroad program, extended service
projects, ecotourism, government travel, sports, conventions, etc. Even some
military actions can indirectly increase tourism to a given area (i.e. military R & R
from Iraq or Jordan).
Catalysts for
Modern Tourism
Things to Consider ~
Industrial Revolution aided the rise of the middle class and greater
movement of people.
Inexpensive transportation (automobiles, airplanes post World War II).
Growth of
Tourism
Tourism grew 4% from 1950 (25 million) to 2016 (1.235 billion) with an expected
1.8 billion tourists by 2030.
Tourism contributes an astounding 10% to the world’s GDP; also accounts for 1 in
10 jobs.
China spends the most in tourism, followed by the United States, Germany, the
United Kingdom, and France, respectively.
Arrivals refer to the amount of people entering a country (cannot see economic
impacts; however, the U.S., England, France, Germany, etc. are leading
nations for this figure).
UNWTO (the United Nations World Tourism Organization) measures the economic
impact of international tourism which constitutes 10% of global GDP (also
about 1 in 10 jobs).
Expenditures represent how much is being spent in other countries. China is the
leader followed by the U.S., Germany, the U.K., and France.
Virginia Tourism
1. Tourism in Virginia generates $24 billion in domestic visitor spending.
2. Tourism in Virginia supports 230,000 jobs.
3. Tourism in Virginia provides $1.7 billion in local taxes.
4. Tourists in Virginia (domestic travelers) spend $65 million per daya 3.3%
increase from 2015.
5. Tourism in Virginia is the 5th largest private employer.
6. Tourism in Virginia ranks 9th in domestic traveler spending among 50 states
and Washington, D.C.
7. Tourism in Virginia supported $5.7 billion in payroll (up 5.9% from 2015)
8. Tourism in Virginia increased by 6,175 jobs (up 2.8% from 2015).
Tourism Units
Tourism units include: domestic, inbound, outbound, internal (travel within an
international nation), international, and national travel.

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Midterm Review Pack HTM-3484
2
Tourism as a
System
Market
Supply
Tourism Paradigms
Tourism
Destinations
Things to Consider ~ A significant amount of planning and development does into
the creation of a tourism destination. The paradigm used in said processes can
drastically impact the destination and may hold great influence over the impacts
incurred upon the destination.
Pro-Growth
Paradigm
Emphasis on economic development through persistent expansion of the tourism
system. Examples include Disney World and LasVegas.
Positive consequences:
Mass tourismcan support large amounts of tourists.
Careful planning can ensure that local business owners have a chance for
economic gains.
Negative consequences:
Requires an abundance of resources.
Residents often bear the brunt of the outcomes.
Sustainability
Paradigm
The EUC Center for Sustainable Tourism defines the sustainability paradigm as
actions that contribute to a balanced and healthy economy by generating tourism-
related jobs, revenues, and taxes while protecting and enhancing the destination’s
socio-cultural, historical, natural, and built resources for the enjoyment of both
residents and visitors. Examples include Costa Rica and Whistler, British
Columbia.
Positive consequences:
Potential for enduring benefits of tourism development.
Greater support for tourism development from residents/locals.
Negative consequences:
Benefits may not be realized immediately.
Some argue that the proposed benefits are not realistic.
Population
(interests,
ability to travel)
Transportation
(volume/quality
of all modes)
Attractions (resource
development for
visitor satisfaction);
services (variety and
quality of food,
lodging, products)
Information
Promotion

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Midterm Review Pack HTM-3484
3
Community-Based
Paradigm
The Thailand Community Based Tourism Institute defines the community-based
paradigm as tourism that takes environmental, social, and cultural sustainability
into account. It is managed and owned by the community, for the community with
the purpose of enabling visitors to increase their awareness and learn about the
community and local ways of life. Examples include Promloke, Thailand and
Buhoma, Uganda.
Positive consequences:
Tourism funds may be directly used to benefit the community in its entirety.
Community empowerment.
Negative consequences:
Increases reliance on tourism’s economic success.
Potential for power issues to come into play.
Ecotourism
Paradigm
Responsible travel to natural areas that conserves the environment and sustains the
well-being of local people. Examples include Bonito, Brazil and Kaikoura, New
Zealand.
Positive consequences:
May attract “low impact” visitors.
Education opportunity for both tourists and residents.
Negative consequences:
Challenges with “greenwashing”—essentially fake news environmental PR.
Emphasis is only on the environment.
Global Drivers of
Tourism Change
Economic drivers:
Globalization results in an increase in global competition from destinations
and ease of travel. However, adverse consequences can arise with
downturns of essential economies (with spill-over effects) and international
economic disputes.
Improved macroeconomic policies will aid in augmented econonic
management.
Deregulation/liberalization allows for ease of movement.
Rising trade/investment will help the global economy.
Diffusion of IT will reep the benefits of globalization due to increased
efficiency.
Dynamic private sectors spurs economic growth and causes markets to be
more efficient with their resources.
Political drivers:
International power will remain with the United States, Europe, China, and
India; however, the relative power of the U.S. has eroded.
Security and the threat of terrorism can be a limiting factor for many
destinations. The rise of the Internet has made terrorism significantly more
decentralized, which may warrant stricter border controls (a deterrent to
tourism). Political instability, however, can be benefitical to “safe”
destinations.
Regional/ethnic conflicts are most common in Lesser Developed Countries.
Additionally, the Middle East can easily change fuel costs (hindering travel
costs)
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