HTM110-Chapter9.pdf

383

C h a p t e r 9

tourism

L E A r N i N G o B J E C T i V E S

after reading and studying this chapter, you should be able to:

• Summarize the historical impact of transportation on tourism.

• Define tourism and describe the important international
tourism organizations.

• Describe the benefits and prospects of tourism.

• Describe the economic impact of tourism.

• Identify the promoters of tourism.

• Summarize the sociocultural impact of tourism.

• Describe ecotourism.

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384 Part iii tourism, recreation, attractions, Clubs, and Gaming

highlights of tourism
It is difficult to determine when tourism began because, centuries ago, very
few people traveled for pleasure or business as they do today. We can trace
some travel destinations since ancient times as follows:

• In the fourth century b.c. (before Christ), work started on the Great Wall
of China and continued for centuries until the 1600s. although not a
tourist destination (or attraction) back then, it certainly is today.

• In 776 b.c., athletic games were held on the plain of Olympia in Greece
(the modern Olympic Games were inspired by these games), and pre-
sumably people traveled there to participate or to watch.

• the romans liked to visit the Bay of Naples, so they built a road there from
rome in 312 a.D. (anno Domini, after Christ). the road was 100 miles
long and took four days by litter to get there (in which a nobleperson sat
on a platform and was carried by some unfortunate servants).

• religious pilgrimages to rome and the holy Land (now Israel) began in
the 1200s, so inns sprang up to feed and accommodate the pilgrims.

• Marco polo became the first noted european business traveler as he pio-
neered trade routes from europe to China from 1275 to 1292, staying at
primitive inns called khans along the way.

• In the 1600s, during the age of horse-drawn coach travel in england,
posthouses were set up to feed and shelter travelers and change the
teams of horses every few miles. the journey from London to Bristol
took three days—it now takes less than two hours by rail.

• In 1841, thomas Cook organized a group tour for 570 people to a reli-
gious meeting in england.

• Cruising began in the 1840s with the Cunard Line crossing the atlantic
between england and North america.

• In the 1840s, the peninsular and Oriental Steam Navigation Company
(p&O) cruised the Mediterranean.

• In the 1850s, Monaco (a principality in the south of France) decided to
cure its economic woes by becoming a winter haven for the rich as a
health resort and a casino.

• During the age of the grand tour, from the 1880s through the 1930s,
wealthy europeans toured europe as a part of their education.

• rail travel began in the 1800s.
• auto and air travel began in the 1900s.
• american airlines introduced its first transcontinental flight between

New York and Los angeles in 1959.

• In 1970, the Boeing 747 began flying 450 passengers at a time across
the atlantic and pacific Oceans.

• In the 1970s, ecotourism and sustainable tourism became important
topics.

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chapter 9 tourism 385

• In the 1980s, cruising became popular.
• In 1986, the United States established the Visa Waiver program to

eliminate unnecessary barriers to travel to the United States. Currently,
38 countries are part of the program.

• In the 2000s, international tourism temporarily declined as a result of
the September 11 attacks, severe acute respiratory syndrome (SarS),
bird flu, and war. however, tourism is projected to grow at a rate of
between 3.0 and 3.5 percent a year, according to the World travel &
tourism Council.1

• In 2008, there were over 922 million international tourist arrivals, but
as a result of the 2007–2010 recession, tourism was down 4 percent in
2009. however, it was expected to and did rise since then.2

• International tourism arrivals grew by almost 5 percent in the first half
of 2011, consolidating the nearly 7-percent growth rate from 2010.3

• China’s expenditure on travel abroad reached US $102 billion in 2012,
making it the first tourism source market in the world.

• In 2012, international tourism produced $1.3 trillion in export earnings
for the United States, while international tourist arrivals increased by
4 percent. this number is expected to increase an additional 4.3 percent
in 2014.4

transportation: Its historical
Impact on tourism
the historical development of tourism has been divided into five distinct
ages (or periods),5 four of which paralleled the advent of a new means of
transportation:

pre–Industrial revolution (prior to 1840)

the railway age

the automobile age

the jet aircraft age

the cruise ship age

Pre–industrial revolution
as early as 5,000 years ago, some ancient egyptians sailed up and down the
Nile river to construct and visit the pyramids. probably the first journey ever
made for the purposes of peace and tourism was made by Queen hatshepsut
to the Land of punt (believed to be on the east coast of africa) in 1480 b.c.
Descriptions of this tour have been recorded on the walls of the temple of
Deir el-Bahari at Luxor.6 these texts and bas-reliefs are among the world’s

LearNING OBjeCtIVe 1
Summarize the historical
impact of transportation
on tourism.

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386 Part iii tourism, recreation, attractions, Clubs, and Gaming

rarest artworks and are universally admired for their wondrous beauty and
artistic qualities. the Colossi of Memnon at thebes have on their pedestals
the names of Greek tourists of the fifth century b.c.7 the phoenicians were
among the early travelers. they traveled in both the Mediterranean and the
Orient (now called Southeast asia), and travel was motivated by trade. Later,
the roman empire provided safe passage for travelers via a vast road system
that stretched from egypt to Britain. Wealthy romans traveled to egypt and
Greece to baths, shrines, and seaside resorts.8 the romans were as curious
as are today’s tourists. they visited the attractions of their time, trekking to
Greek temples and places where alexander the Great slept, Socrates lived,
ajax committed suicide, and achilles was buried, and to the pyramids, the
Sphinx, and the Valley of the Kings—just as today’s tourists do.9 the exca-
vated ruins of the roman town pompeii, which was buried by the volcanic
eruption of Mount Vesuvius, revealed some 20-plus restaurants, taverns, and
inns that tourists visit even today.

the earliest Olympic Games for which we still have written records were
held in 776 b.c. (though it is generally believed that the games had been
going on for many years before that).10 thus, sports have been a motivation

for tourism for a long time.
travel via land and sea in the Middle ages was

mostly for religious or trade reasons. people made
pilgrimages to various shrines: Muslims to Mecca
and Christians to jerusalem and rome. the Crusades
(which began in 1095 and lasted for the next 200
years) stimulated a cultural exchange that was in part
responsible for the renaissance.

Marco polo (1254–1324) traveled the Silk road,
which was anything but a road, as we know it, from
Venice to Beijing, China. he was the first european
to journey all the way across asia to Beijing, and his
journey, which lasted 24 years, and the tales from
it became the most well known travelogue in the
Western world.11

Marco polo’s father and uncle had traveled exten-
sively in asia before Marco joined them. the journey
was both difficult and dangerous (excerpts of Marco’s
account can be read at several Marco polo web sites).
One time, to make sure the polo brothers would be
given every assistance on their travels, Kublai Khan
presented them with a golden tablet (or paiza, in
Chinese; gerege, in Mongolian) a foot long and three
inches wide and inscribed with the words “By the
strength of the eternal heaven, holy be the Khan’s
name. Let him that pays him not reverence be killed.”
the golden tablet was a special VIp passport, autho-
rizing the travelers to receive throughout the Great
Khan’s dominions such horses, lodging, food, and
guides, as they required.12 this was an early form of
passport.

The Hall of Supreme Harmony in Beijing’s
Forbidden City.

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chapter 9 tourism 387

Coach, rail, and automobile travel
Changes in the technology of travel have had widespread implications for
society. In the United States, travel was principally by horse and wagon or
stagecoach until the advent of rail travel, which greatly advanced opening
up the West. along with the growth of towns and cities, came hotels near rail
depots to accommodate travelers. Likewise, auto travel produced the motel
and a network of highways, and the commercial jet created destination
resorts in formerly remote and exotic locations, made the rental car business
a necessity, and changed the way we look at geography. although long-
distance travel has always been fairly comfortable for the wealthy, it was not
until the development of the railroad in the 1830s that travel became com-
fortable and cheap enough to be within reach of the masses.

traveling by train
Coast to coast, the United States has a lot of land with a fair share of moun-
tains, canyons, forests, deserts, rivers, and other natural barriers to travel.
One of the main factors that led to the development of railroads in the
United States was the need to move goods and people from one region of
the country to another. Farmed goods needed to be transported to indus-
trial areas, and people wanted a quicker route to the West, especially after
the discovery of gold in California. those who already lived at the frontier
wanted the same conveniences as their neighbors in the east, such as effi-
cient postal service.

the train made mass travel possible for everyone. Long-distance travel
became both cheaper and faster, making the horse and ship seem like over-
priced snails. the vast rail networks across North america, asia, australia,
and europe made the train station a central part of nearly every commu-
nity. Naturally, entrepreneurs soon built hotels conveniently close to train
stations.

although hugely important and popular for many years, the popularity
of rail travel started to decline as early as the 1920s. Why did people stop
using the train? For two main reasons: the bus and the car. In addition,
the Great Depression of the 1930s certainly deterred travelers. although
World War II brought a new surge in passenger numbers, people were
seldom traveling for pleasure, and at the close of the war, the decline con-
tinued. automobiles were again available, and people had the money to
them. By 1960, airplanes, which made faster travel possible, had taken
over much of the long-distance travel market, further reducing the impor-
tance of the train.

Facing a possible collapse of passenger rail services, the U.S. Congress
passed the rail passenger Service act in 1970 (amended in 2001). Shortly
after, the National railroad passenger Corporation began operation as a
semipublic corporation established to operate intercity passenger trains, a
move in the direction of seminationalization of U.S. railroads. the corpora-
tion is known today as amtrak.

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388 Part iii tourism, recreation, attractions, Clubs, and Gaming

rail travel abroad
While the United States tries to
rejuvenate rail travel under the
direction of amtrak, rail ser-
vice in other parts of the indus-
trialized world is far ahead
in progress. taking the train
makes good sense in densely
populated areas such as those
in Western europe and parts
of asia, and high-speed net-
works are already well devel-
oped, often drawing most of
the traffic that formerly went
by air. One good example is the
eurostar, connecting the United
Kingdom with mainland europe
via the 31-mile-long underwater
Channel tunnel. France’s tGV
(train à Grande Vitesse) trains
are perhaps the best known of
them all, serving more than 150

cities in France and europe, and traveling at about 201 mph (although they
have the capacity of running at 250 mph). the tGV’s most spectacular fea-
ture is the smoothness of the ride: It is like sitting in your armchair at home.
Because of their importance, all trains—high speed or not—run frequently
and on time. Fares are generally reasonable, and service levels are high.

japan’s Shinkansen, the bullet train system, makes the 550-mile run
between tokyo and Osaka in 3 hours and 10 minutes, down from the former
rail time of 18 hours. In addition, it provides a ride so smooth that a pas-
senger can rest a coffee cup on the windowsill and not a drop will spill, just
like on the tGV.

Do you dream of exploring europe? as a student, you have probably
heard of the famous eurail pass. Several european nations have banded
together to offer non-european visitors unlimited first-class rail service for
a reduced lump sum. however, if you want to use the eurail pass, be sure
to purchase a pass before you leave home because not all types of passes
are available in europe and the ones that are cost on average 20 percent
more when bought in europe. When visiting europe, you can choose to
travel in one country, in a few selected ones, or in all with eurail pass; it’s
up to you to choose between the different passes available. In other parts
of the world, australia offers the austrail pass, India the Indrail pass, and
Canada the Canrailpass. the new rail line in China linking Beijing to Nepal
is of interest because it is one of the longest and highest rail lines in the
world, and, according to some, it is going to dilute the tibetan culture.
this is one of the dilemmas of tourism: travel and tourism can bring an
economic and social development; yet it can also damage local cultures
and environments.

An Amtrak train at its station.

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chapter 9 tourism 389

traveling by car
the internal combustion engine auto-
mobile was invented in Germany, but it
quickly became america’s obsession. In
1895, there were about 300 horseless
carriages of one kind or another in the
United States, including gasoline buggies,
electric cars, and steam cars. In 1914,
henry Ford began making the Model t
on the first modern assembly line, making
the car available to many more americans
because of its low cost. even during the
Great Depression, almost two-thirds
of american families had automobiles.
henry Ford’s development of the assem-
bly line and the gradual construction of
good, solid roads helped make the auto-
mobile the symbol of american life that it
is today.

the auto changed the american way of life, especially in the leisure area,
creating and satisfying people’s urge to travel. the automobile remains the
most convenient and rapid form of transportation for short and medium
distances. Without question, it has made americans the most mobile peo-
ple in history and has given them options not otherwise possible. Whereas
many europeans ride their bikes or use the bus or train to get to school or
work, americans cannot seem to function without their cars. In fact, it is not
uncommon for an american to drive 20,000 miles a year.

road trips are a must for most americans—college students, families,
and retirees alike. travel by car is by far the largest of all segments in the
ground transportation sector of the travel and tourism industry. It is no won-
der, then, that the highways and byways of the United States and Canada
play such important roles in tourism. the advantages of car travel are that a
car can take you to places that are otherwise inaccessible. Mountain resorts,
ski destinations, dude ranches, and remote beaches are just a few examples.
this kind of travel generates millions of dollars, and in certain places the
local economy depends on the car tourist.

rental cars
Some 5,000 rental car companies operate in the United States. Waiting at
nearly every sizable airport in the world are several highly competitive rental
car agencies, a significant segment of the travel/tourism business. about
75 percent of their sales take place at airport counters that are leased from
the airport, the cost of which is passed on to the customer. the larger compa-
nies do 50 percent or more of their business with large corporate accounts,
accounts that receive sizable discounts under contract. the hurried business
traveler is likely to rent a car, speed out of the airport, do his or her business

Rental cars offer business and leisure travelers the
convenience of fly–drive or drive-only to facilitate tourists’
needs.

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390 Part iii tourism, recreation, attractions, Clubs, and Gaming

in a day or two, return to the airport, and hop on a plane to return home.
the pleasure traveler, however, is more likely to rent a small car for a week
or more. this group constitutes about 30 percent of the rental car market.
Some of the top rental car companies in the United States are hertz, avis,
enterprise, National, and Budget. the agencies maintain between 300,000
and 900,000 rental cars that are usually new and are sold after six months to
reduce maintenance costs and help avoid breakdowns.

traveling by bus
although scheduled bus routes aren’t as competitive as scheduled service for
airlines, buses still play an important role in the travel and tourism industry,
especially with regard to charter and tour services. Some bus companies
even offer services such as destination management, incentive programs, and
planning of meetings, events, and conferences. Some companies to check out
are Gray Line Worldwide, Contiki tours, and Canadian tours International.

the major reasons for selecting the bus over other modes of travel are
convenience and economy. Many passengers are adventurous college stu-
dents from the United States and abroad or senior citizens, both with lim-
ited funds but plenty of time on their hands. Most people don’t choose bus
travel for long trips, however, because a flight is much quicker and often
just as economical. however, in places such as the heavily populated north-
east corridor, regular bus service between most sizable communities in New
england and New York often makes it easier and safer for travelers to ride
the bus than to drive their cars into the city. anyone who has experienced
New York City traffic will probably agree.

another reason why buses are popular is because they allow the leisure
traveler to sit back, relax, and enjoy the scenery. In addition, they are hassle
free and provide an opportunity to make new friends and stop along the
way. Long-distance buses offer a variety of amenities similar to an airplane,
with an extra benefit of almost door-to-door service! Buses travel to small
and large communities, bringing with them tourist dollars and thus a boost
to the local economy.

types of bus service
In addition to routes between towns and cities, bus travel includes local route
service, charter service, tour service, special services, commuter service, air-
port service, and urban and rapid transit service. the largest and most recog-
nized of all of the specialized travel services is Gray Line. Founded in 1910,
Gray Line is a franchise operation based in Colorado. the company assem-
bles package tours and customized tours, arranges rail and air transfers, and
even provides meeting and convention services. Its major service, however, is
sightseeing trips by bus. When a traveler arrives at a destination and wishes
to see the town and the major tourist attractions, Gray Line is usually ready
to serve. the 150-member organization carries about 28  million passengers
a year at more than 200 destinations. their trips are widely diversified, such
as “around-the-town” in paris and “around-the-country” in thailand. In the

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chapter 9 tourism 391

United States, Gray Line’s biggest market is Los angeles, followed by San
Francisco and then Manhattan.

▶ check Your Knowledge

1. In what locations does rail travel make the most sense?

2. What is the future of rail travel?

3. Who are the major users of buses?

travel by air and Sea
air travel has made it possible to build great resorts on remote islands, it
has fostered multinational enterprises, and it has broadened the horizons of
hundreds of millions of people. Without the airplane, most resort destina-
tions would have been virtually impossible to build. the number of interna-
tional travelers would be far fewer because of the time, money, and difficulty
involved in travel. the airplane makes travel easier and more convenient
because even the most remote location is just a few hours away by plane,
and reasonable airfares make it possible for more people to travel by air.

air transport has become an integral factor in the travel and tourism
industry. hotels, car rental agencies, and even cruise lines depend heavily on
airplanes for profits. For instance, lower airfares result in more passengers
and hence a higher occupancy at hotels. Whole towns and cities can and do
benefit from this concept by receiving more taxes from tourists, which leads
to better public facilities, better schools, and even lower local and property
taxes.

In the United States, there are, at any one time, about 5,500 airplanes
in the skies.13 In recent years, the airline has become the preferred means
of travel for the long haul. the jet aircraft has made previously inaccessible
places such as Bali, Boracay, and Bangkok easily accessible, for a reason-
able price. today millions of americans travel within the United States and
abroad, and millions more visit the United States because of air travel.

Over the past few years—with the exception of Southwest, airtran, and
jetBlue—major U.S. airlines have lost billions of dollars. One reason is com-
petition from low-cost domestic and international airlines.

Since the economic recession, business travelers continue to spend less,
and airlines’ pension, fuel, and security costs have risen. the major airlines
have laid off employees, delayed delivery of new jets, and closed some hubs,
reservations, and maintenance centers in an effort to reduce costs. Several
of the major U.S. airlines have been and are in financial trouble, so they are
charging an additional fuel surcharge on tickets and charging for checked
bags, food, beverages, and selected seats just so that they can stay in the air.

For example, in efforts to promote passenger loyalty and operating
effectiveness, the major U.S. airlines have formed strategic alliances with

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392 Part iii tourism, recreation, attractions, Clubs, and Gaming

partner airlines to provide
passengers with easier ticket
purchases and transportation
to destinations in countries
not served by U.S. airlines.
Many of the world’s major air-
lines are grouped with Star
alliance, Skyteam, or one-
world. the Skyteam alliance
network includes Delta from
the United States, aeroflot
from russia, aeroMexico, air
europa, air France, alitalia
from Italy, China airlines,
China Southern, KLM from
the Netherlands, Korean air,
and others. alliances of this
nature will allow airlines
access to each other’s feeder
markets and to resources that
will enable them to compete
in what will ultimately be a
worldwide deregulation. a
feeder market is a market that
provides the source—in this

case, passengers for the particular destination. Ultimately, any major european
airline without a strategic alliance in the United States will only limit its own
horizons and lose market share. airlines have merged or taken over others to
increase their scope of operations and reduce costs in an effort to stay com-
petitive. Delta acquired Northwest airlines and Continental was acquired by
United.

another example is Southwest airlines. Southwest operates more effi-
ciently than the competition does despite the fact that its workforce is union-
ized. Southwest gets more flight time from its pilots than does american
airlines—672 hours a year versus 371—and racks up 60 percent more pas-
senger miles per flight attendant. these efficiencies have resulted in annual
profits for 30 consecutive years as a result of Southwest’s dedication to a
low-cost, high-customer-satisfaction strategy.

Carriers such as Southwest, airtran, and jetBlue have lower operating
costs because they use only one type of aircraft, fly point to point, and
offer a no-frills service. their lower fares have forced many larger airlines to
retreat. In 2012, the industry’s fuel bill had risen to 33 percent of operating
costs—a huge factor to consider when airlines decide to put older, less fuel-
efficient aircrafts into storage.

to reduce losses brought about by deregulation and high labor, pension
plan, and fuel costs, major carriers have eliminated unprofitable routes, often
those serving smaller cities. New airlines began operating shuttle services
between the smaller cities and the nearest larger or hub city. this created the
hub-and-spoke system (see Figure 9–1).

American Airlines and its 15 oneworld® alliance partner airlines go
just about anywhere. The oneworld partners include British Airways,
Cathay Pacific, and Japan Airlines.

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chapter 9 tourism 393

the Hub-and-spoke system
to remain efficient and cost effective, major U.S. airlines have adopted a hub-
and-spoke system, which enables passengers to travel from one smaller city
to another smaller city via a hub or even two hubs. Similarly, passengers may
originate their travel from a small city and use the hub to reach connecting
flights to destinations throughout the world.

the hub-and-spoke system has two main benefits: (1) airlines can ser-
vice more cities at a lower cost and (2) airlines can maximize passenger loads
from small cities, thereby saving fuel. the airlines have also used deregula-
tion to their advantage to save money whenever possible, for instance, by
cutting nonprofitable routes from some smaller cities.

new airplanes
B o e i n g ’s f i r s t n ew a i r p l a n e
model in several years, the 787
Dreamliner, takes advantage of
huge advances made in aviation
technology in the past decade
and is capable of flying long-haul
routes using up to 20 percent less
fuel than today’s similar-sized air-
planes. Up to 50 percent of the
primary structure of the plane,
including the fuselage and wing,
is made of components such as
carbon fiber, which reduces the
weight of the plane.14

able to fly up to 9,400 miles
without refueling, the Boeing 787
Dreamliner could easily manage

Wichita Falls

Lubbock

College Station/Bryan
Waco

Tyler

Huntsville, AL

Knoxville

Nashville

Dallas

Figure 9–1 • The Hub-and-Spoke System.

The Boeing 787 Dreamliner is able to fly up to 9,400 miles without
refueling.

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394 Part iii tourism, recreation, attractions, Clubs, and Gaming

a flight between New York and Moscow, Manila, or Sao paulo or between
Boston and athens. richard aboulafia, Vice president of analysis with teal
Group, comments, “If you look at it from an airline standpoint: you don’t
have a choice. If you don’t have a 787-class aircraft and your competitor
does, he can under price you and out-profit you.”15

Boeing’s competitor, airbus, makes the airbus a380. the giant double-
decker airbus a380 can carry up to 525 passengers for a distance of up to
8,000 miles. Singapore airlines flew the first commercial flight of this aircraft
in October 2007 between Singapore and Sydney, australia.

components of airline Profit and Loss
have you ever wondered why air travel is so expensive? You might find
some answers in this section, where we look at the different costs included
when you an air ticket. airlines have both fixed and variable costs. Fixed
costs are constant and do not change regardless of the amount of business.
examples are the lease of airplanes, the maintenance of airline-owned or
leased terminals, interest on borrowed money, insurance, and pensions.
Variable costs tend to rise and fall with the volume of sales or the number
of flights. they include wages and salaries, advertising and promotion, fuel
costs, passenger food and drink, and landing fees.

the biggest single cost for airline operations is labor, which is typi-
cally 30–45 percent of total operating costs. Senior pilots for airlines such
as United and Delta can receive as much as $150,000 or more a year.16 the
median salary for a flight attendant is $67,000 or more a year, plus benefits.17
additionally, landing and takeoff charges charged to airlines by airports can
add up to thousands of dollars per plane, depending on the airport and time
of day. …

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