Chapter 4

 

CHAPTER 4

 

ECONOMICS OF TOURISM

 

REASONS WHY TOURISM IS MADE AN ALTERNATIVE TO ECONOMIC DEVELOPMENT 1. There’s a continuous demand for international travel travel in developed countries. 2. As income income incre increase ases, s, the demand demand for to touri urism sm also increases. 3. Dev Develo eloping ping count countrie riess need need for foreig eign n ex exchange change to aid their economic development.

 

TOURISM OURISM MULTIPL MULTIPLIER IER •

It describes the total eff effect ect of tourism to the economy. TOUR OPERATOR

SPEND Increased Personal Income

SEED SAVE

HANDICRAFTS

FERTILIZER Purchase of Supplies

TOURIST

Raw Material IMPORTS WAGES

HOTELIER RENT Wages

FOOD SAVINGS

SERVICES

 

DIRECT AND INDIRECT EFFECTS •

Direct  –

Income is received directly by tourism establishment.

•

Indirect/Secondary  –

Money paid by tourist to businesses are in turn used to pay for supplies, wages and other items to supply direct services.

 

SOCIOLOGY OF TOURISM

 

SOCIOECONOMIC VARIABLES AND THEIR EFFECT ON TRAVEL •

•

•

•

Age Income and Social Status Education Life Stages of the Family

 

AGE •

•

Younger people tend to select more active recreational activities than older people. Elderly (those in the late 60’ 60’ss and upward) prefer more passive forms of recreation:  –

 –

VFR

 –

Fishing Sight-seing

 –

Playing golf 

 

INCOME AND SOCIAL STATUS RI RICH CH PE PER RSO SONS NS (HIGHER SOCIAL

LOW OWER ER IN INC COM OME E (LOWER SOCIAL

STATUS) Travel more

STATUS) Travel less

Stay longer

Spend minimal days

Spend more

Spend less

 

EDUCATION •

•

•

The better educated members of the population have a greater desire to travel. Researcher have found that the more educated the travelers are, they tend to be more sophisticated in their tastes. They prefer activities, which require the development of interpretative and expressive skills:  –

 –

Attending plays, concerts, art museums Reading books, playing golf tennis, skiing

 

LIFE STAGES OF THE FAMILY •

•

The presence of children in the family limits travel tra vel and more leisure time is spent at home. As children grow and leave home, married couples renew interest in travel.

 

THE RISE OF NEW TRAVEL PATTERN •

Travel Clubs

•

Airline Group and Arrangements

•

Special Speci al Interests I nterests Tours Tours

 

Travel Clubs •

A club member mem ber enjoys trav travel el opportunities and vacation destination facilities at a much cheaper price than paid by a non-member. Ex. Club Mediterranee

 

AIRLINE GROUP AND ARRANGEMENTS •

Different types of tour fares promoted by airlines:

a. gr group oupss of 15 or m mor ore e are are g give iven n rredu educed ced fa fare res; s; b. cha chart rter er group ser servic vice etours is is g giv iven en by are som some ea airl irline inessfor tto o those affinity which intended affiliated to a legitimate group for a period of 6 months or longer; c. pu publ blic ic cha chart rter er in in whic which h an e ent ntir ire e airp airpla lane ne iiss made available to a group; and d. ince incent ntiv ive e tour tourss tha thatt are are g giv iven en by fi firm rmss tto o employees as a reward.

 

SPECIAL INTEREST INTEREST TOUR TOURS S •

It is becoming more popular at the present.

•

These are tours arranged for those who are interested in a particular activity.

 

PREFERENCES OF THE INTERNATIONAL TOURISTS •

Relaxation Relax ation vs. Activity

•

Familiarity vs. Novelty

•

•

Dependence vs. Autonomy Order vs. Disorder

 

RELAXATION VS. ACTIVITY •

Before:  –

The workweek for most people was long and exhausting that’s why they demanded holidays that offered relaxation and rest.

•

Present:  –

Workweek has been shortened, has become less tiresome, and people have become used to greater leisure. leisure. The demand for activity-oriented travel has greatly increased.

 

FAMIL AMILIARIT IARITY Y VS. NOVEL NOVELTY TY •

Before: On their first trip abroad, they tend to seek see k for something that will remind them of home.  –

 –

•

As soon as they find a place where they feel at home, these tourists will go back to the same place for a number of times.

Present:  –

 –

There is an increasing positive attitude for change. People accept innovations in industry and tourists move away from traditional resorts to new tourist

destinations  

DEPENDENCE VS. AUTONOMY •

Before:  –

•

Tourists joined package tours in which everything were fixed in advanced by the tour agency.

Present:  –

 –

 –

There is the emergence of a group tourists who would like to acquire sense of personal autonomy regarding theiraleisure time. They would like to travel on their own and not with a group. They would like to feel independent.

 

ORDER VS. DISORDER •

Before:  –

Tourists sought holidays which enforced the traditional concept of conformity: •

•

•

•

Set meals at fixed times Using guide books Going to resorts where their fellow tourists were tidy, well-behaved, and properly dressed.

Present:  –

 –

Tourists are not very much concerned about what to wear and how to behave when on holiday. Greater tolerance toward the differences informality in behavior, and freedom fromof others,

institutionalized regulations  

TYPES OF TOURIST ROLES INSTITUTIONALIZED TOURIST ROLES

NONINSTITUTIONALIZED TOURIST ROLES

Organized Mass Tourist

The Explorer

Individual Mass Tourist

The Drifter

 

INSTITUTIONALIZED MASS TOURISTS •

They are dealt within a routine way by the tourist establishment, such as travel agencies, hotel chains, which wh ich cater to the tourist trade.

 

NON-INSTITUTIONALIZED TOURIST ROLES •

They are loosely attached to the tourist establishments.

 

TYPES OF TOURIST ROLES A. Or Org ganiz anized M Mass ass T Tour ouris istt -

Least adventurous

-

Buys Buys pa pack ckag age e ttou ourrs iin nw whi hich ch it itin iner erar ary yo off h his is trip trip is fixed in advance and his stops are well-prepared and guided.

-

Seldom makes decisions

-

Pref Prefer erss fam amil ilia iarr en envi virron onme men nt rrat athe herr th than an ne new w environment

 

TYPES OF TOURIST ROLES B. Individual Mass Tourists - Has a certain certain degree degree of co contr ntrol ol over over his time and itinerary and is not bound to a group. - All major arra arrangemen ngements ts of his tour tour are sstill till made through a travel agency. - the desire desire ffor or nov novelty elty is great greater er for for the individual mass tourists.

 

TYPES OF TOURIST ROLES C. The Explorer - arranges arranges his his trip by himself himself and looks looks for for comfortable comf ortable accommodations and a nd reliable means of transportation - tries to to associat associate e with the the people people he visits visits and to speak their language. - dares dares to leave leave his his country country but goes back back to it when the experience becomes too rough. - does not adopt ccomplet ompletely ely the lif lifesty estyle le of the host country.

 

TYPES OF TOURIST ROLES D. The Drifter - Goes farthes farthestt away away from the the accustome accustomed d ways of life of his own country. - Total otally ly immersed immersed in his host culture. culture. - Tries to live live the way way the people he visits visits live. - Does not have have a fix fixed ed itinerary itinerary.. - Novelty Novelty is at its highest; highest; familia familiarity rity disappears almost completely.

 

SOCIAL TOURISM •

It is a subsidized system of trav travel el through the intervention of the government, employer, or labor union to achieve social goals and purposes.