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Tourism 3.2 (fluctuations (drop) in tourism (recession (recession is the…
Tourism 3.2
fluctuations (drop) in tourism
recession
recession is the slow down of economic activities where there's a loss of income and jobs.
this results in a cut down on spendings and less demand for good and services.
example: in the time frame of 2007-2008, there was a financial crisis that affected consumer spendings to be lowered due to the rising of unemployment (5.4 million of jobs lost in USA in 2008). as there is lesser disposable income that can be used to finance hoildays.
dieseases
when there is a outbreak of diseases, tourist would not want to risk getting infected with a contagious disease.
this may cause the MICE activities to be postpone or cancelled.
example: in 2003, hongkong had a SARS epidemic. tourist arrivals fell 63% (850,000) from march 2003 to april 2003.
terrorism (unfavourable political situations)
disagreement between different group of people that may pose dangers to tourist.
example: in 2008, thailand had a political crisis which causes violent clashes day-long leaving 2 dead and over 300 people injured. this causes the blockage of international airports, leaving thousands of tourist stranded and cutting off most of thailand's international air connection. serval explosion and clashes occurred in the following the incident.
disasters
disaster occurrence poses risk to the safety of tourist and disrupt tourist infrastructure.
the tourism industry would lose money from tourist unable to make it for the trip.
example: in 2010, iceland had a volcanic eruption. 107,000 fights were cancelled during the 8-day period, 48% of total air traffic (10 million passengers). airlines collective 130 million euros per day in lost revenues.
factors causing global tourism growth
technology
more routes and agreement
this makes the world more assessable. as the government removes the restrictions on commercial flights so they can decide on the routes, capacity and price (open skies agreement). the government also allow the fare to fluctuate due to the demand and competition (deregulation).
internet and mobile applications
with the use of internet and mobile applications, tourist can access the information with ease, with updated information such as online booking and research. this allows feedback and surveillance in safety.
better and affordable transport
safe and shorter travel time for flights, therefore, this allows people to travel more frequently and farther. with a lower travelling cost (budget airlines).
demand factors
leisure time
leisure time is the time that is spent outside the demands of work or duty. there is an increasing trend where people enjoy a minimum of three weeks of annual paid leave. increasing in leisure time allows people to travel more.
changing lifestyle
there is a changing lifestyle as people have
higher education
as they know more about the world, people also have
varied interest
this allows them to be attracted to the various tourist destination. some tourist also takes travelling as a
stress reliever
. people now also have a
longer life expectancy
thus they can travel after their retirement. there is also a increase affluence (money) thus this would allow more people to travel.
disposable income
disposable income is the amount left by an individual to spend. increase in disposable income allows people to spend more on goods and activities, which helps to improve their quality of life. this helps to account for the growth of tourism as people can afford to travel more frequently and to a more expensive destination.
destination factors
investment in infrastructure and services
a destination with more investment in infrastructure and services are likely to attract more tourists. infrastructure such as public systems, facilities, roads, electricity and hospitals. services such as medical facilities, transportation (plane) and entertainment facilities.
access to information
tourist more inclined to visit destinations that has more information available. as it is more easy for tourists to obtain formation of the destination. this could be in the form of internet or print sources.
attractions
the interesting qualities of natural or man-made attractions feature the place. it is promoted by the tourism industry it attracts tourists.
marketing
potential visitor gets access to information through the marketing of the destination by their respective countries. the use of mass media to advertise on certain marketable traits of destinations. a destination with good marketing will most likely attract more tourists to visit the country.