Tourism Demand Research & Analysis
International Tourism Demand Estimation
Demand Theory
Switzerland
Tourism Attraction Sales
Cambodia
Tourism Attraction Sales
Tourism & Employment
Suggestions
Tourism Demand
Tourism may be defined as, "The sum of the phenomena and relationships arising from the interaction of tourists, business suppliers, host governments and host communities in the process of attracting and hosting these tourists and other visitors," (McIntosh and Goeldner, 1990, p. 4).
From the above definition, it can be seen that the development of tourism in any area involves multiple players. In addition, tourism is made of up numerous activities, services, and industries that contribute to the tourists' experience. These include the provision of transportation and accommodation; eating and drinking establishments; entertainment facilities; and shops, among others (McIntosh and Goeldner, 1990). Edgell (1990, p. 12) adds that,
"The full scope of international travel and tourism, therefore, encompasses the output of segments of many industries. The travel 'industry' consumes the output of and creates a far-reaching base of wealth for feeder industries such as agriculture, fishing, food processing, brewing, construction, airports, automobiles, and furniture. In addition, tourist activities make use of the services of other industries such as insurance, credit cards, advertising, and data processing."
The tourism industry is therefore not a 'stand-alone' industry, but has relations that cut across industry, product and service lines. This is a fact that has significance when considering the impacts of tourism on a host country.
In much of the current literature, tourism development is usually linked to the activities of developing countries. However, Roche (1992, p. 566), made the observation that while the development of tourism has been viewed as a symbol of 'westernization' and progress, particularly in what are known as developing countries, its "role as both a symbol and vehicle of economic and socio-cultural change and 'modernization' is potentially just as significant for the advanced industrial countries."
2. Tourism Demand
The key challenge in measuring tourism impacts on an economy is that tourism is part of many different industries, but comprises 100% of no one industry (Global Insights, 2003). Conventionally, tourism has been measured from the demand side, reflecting the amount of expenditures made by visitors to local areas. Other economic sectors have traditionally been measured from the supply side, looking at production inputs and outputs to determine their effect on the overall economy. This has made comparison difficult.
There have been a number of attempts to bring tourism in line with other industry measurements internationally. The most common form of economic impact measurement is the input/output model (I/O), which only looks at the products and services produced by the tourist sectors and how this production impacts the regional economy. It does not take into account tourism spending patterns, only the production of commodities by industries assigned to tourism sectors. The next step was the development of the tourism satellite account (TSA), which incorporates demand in the form of tourism expenditures when assessing impacts. The final impact model approach is computable general equilibrium modeling (CGE), including tourism policy and forecasting models. Each model is a step closer in the comprehensive measurement of assessing the true impacts of tourism on local economies, and each model is based on adjustments to previous models.
Edgell reports that in 1989, there were 403 million international tourist arrivals worldwide, and that the international tourist receipts exceeded U.S. $208 billion. According to the World Tourism Organization's (WTO) Tourism Highlights 2006 Edition, the total number of worldwide international tourist arrivals in 2005 was 806 million. With the number of wars, natural disasters, terrorist activities that occurred between 1989 and 2005, this doubling of the scale of tourism is no doubt significant. The total international tourist receipts in 2005 tripled to U.S. $680 billion.
Looking at the international tourist arrivals by region in 2005, Europe took the lead with 441.5 million, followed by Asia and the Pacific, the Americas, the Middle East and Africa with 155.4 million, 133.5 million, 39.1 million, and 36.7 million respectively. The ranking of the international tourist receipts was similar to that of the arrivals with Europe receiving more than half (U.S.$348.2 billion), and Africa bringing up the rear with U.S.$21.5 billion. While these figures do not specifically detail the totals for individual countries in arrivals or revenue, it can be seen that the distribution of both is skewed among global regions.
Tourism is a very complex phenomenon which has been viewed from various perspectives and studies by disciplines, such as economics, psychology, sociology, marketing, geography, and political science (Lundberg, Krishnamoorthy, & Stavenga, 1995; Przeclawski, 1993). Consequently, each discipline has provided a partial rather than...
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