Global Tourism and Real Estate - Case Study Example

The Global Tourism Industry Introduction Tourism is often described as one of the key phenomena of the current period, an allegation that reflects its outstanding growth in both scale and scope from the mid-1900s. Specifically, it is the spectacular and apparently unalterable growth of global tourism, as opposed to domestic tourism, which stands out as a crucial feature, although it is significant to note that internationally, domestic tourism is considerably greater in terms of both volume and value. Globally, an approximated 85% of all tourism activity is domestic and accordingly, the economic, social and ecological impacts of tourism have the same, if not greater, significance in the domestic rather than global affairs. However, it is debatably the speedy and long-term growth and spread of global tourism, mainly since the 1950s, that has been the most an important factor in driving the surfacing of sustainable tourism as a move toward tourism development (Sharpley, 3). Ever since the early 1900s when tourism was mostly limited the privileged, the prospect to partake in tourism has become progressively extensive. There is also the assertion that tourism has gradually become more democratized. Furthermore, it currently accounts for the single major nonviolent movement of individuals across cultural boundaries in the world history. Consequently, this increased worldwide movement of people amounted to over 662 million arrivals in 1999. This movement across cultural boundaries yielded the interaction and integration of diverse cultures of the world (Hotelmule.com, 1). The collection of global travellers is growing in terms of the quantity of tourists and the gaining of revenues and it has included visitors from a broader range of countries due to the mounting prosperity in rising economies. Growing cross-cultural interactions and greater access to information about tourism attractions in previously lesser-known regions of the world, increasing attraction with the rising and developing economies, new types of tourism activity, and growing investment in infrastructure further widen the destinations of tourists. Simultaneously, due to the shifting business setting and developing technological and logistical changes, the tourism industry is experiencing major structural transformations (Bardhan, et al, 1). Leksakundilok cites World Trade Organization’s estimates that the number of global tourists was 650.4 million in 1999 and by the year 2000, it had reached 698.8 million. Further, from 1995, the global tourism increased at an average of 4.5% per year. The major tourist-receiving continent was Europe accounting for 57.7% of worldwide tourists in 2000. On the other hand, the Pacific and East Asia share 16.0% with a yearly growth rate of 14.7% (8). Considering this spectacular growth in the level of input, tourism’s gratification periphery has extended extremely. Not only are more remote and alien places attracting numerous global tourists, but also smaller countries have become key tourist destinations (Hotelmule.com, 1). Throughout the Industrial Revolution era, international tourism and travel features’ changed. Tourists travelled longer distances and went farther due to the changing means of transport after the creation of the locomotive: trains, ships and aeroplanes. More importantly, the 1950 jet aircraft’s initiation majorly boosted global mass tourism and made it an industry of foremost importance. For instance, tourists from England expanded their destinations from northern Europe to the southern shores of the Mediterranean, thereby increasing their tourist’s base and these destinations received many tourists and developed rapidly. Moreover, Westerners had an opportunity of touring world’s lesser-known regions, predominantly developing countries like Thailand, which made the travellers to open up links with the developing countries particularly in investment. Since Cooks Tours started functioning in the 1860s, the provision of better tourism services has significantly flourished. Additionally, when the notion that everybody who worked should have paid holidays was lastly practiced after the Second World War, chances for travel augmented (Leksakundilok, 7). Park tourism is another area that has developed enormously. For instance, from 1900 to 1996, the area of land enclosed by the world’s parks and secluded areas augmented significantly. By 1996, the global system of numerous parks occupied 13,245,527 sq km, representing 8.84% of the entire land area of the world. Moreover, secluded areas have been formed in 225 countries and dependant regions. The extensive acceptance of the environmental, ethic and hostile political action has caused the inspiring development of the world’s park system. It emerges that the tourism that was taking place at these sites generated a self-enabling phenomenon of travelling, education and yearning for more education, visitation and parks (Eagles, 3). Apparently, tourism is a big business meaning that it has become an influential global economic force. For instance, estimates indicate that global tourism generated more than 453 billion US dollars in 1998. In addition, as said by the World Travel and Tourism Council, international tourism is a 3.5 US dollars trillion industry and this accounts for 11% of global Gross Domestic Product and a parallel percentage of worldwide employment. Certainly, tourism industry has gained economic importance globally (Hotelmule.com, 1). Leksakundilok agrees that the growth of tourism impacts and boosts other related sections and the entire economy. He indicates that in the year 2002, the world’s travel and tourism industry openly or indirectly created 198 million jobs, approximately 7.8% of whole employment. This is a positive consequence for the host countries since it augments their economies. Additionally, employment related to tourism assumes a vital part of the Gross Domestic Product in several nations. Leading in employment in the tourism sector are Asian economies, with China being the largest tourism employment nation in the world at about 48.8 million jobs in 1999. Ccompared to other industries and developed nations, income from tourism in developing countries is seemingly more efficient in creating employment and revenue (9). Bokhonok further states that the industry gives continuous chances for vigorous individuals to initiate their own successful businesses as well as creating several jobs for indigenous occupants thereby considerably contributing to the growth of the nations. Due to the modern increase in international tourism, numerous nations must centre on strengthening their skills and they need scores of human resources (1). Tourism, as Leksakundilok asserts, has several benefits for developing nations. First, the destination nation has a greater degree of power in setting prices for tourist supplies and services compared to other export commodities. Secondly, it aids in stabilizing its foreign exchange earnings through addition of variety to the export base. Thirdly, in order to counteract shortfalls created by increasing demands of importing, limited raw materials and manufactured goods, there is the probability of developing foreign exchange (10). Growth in tourism affects the traveller as well. During the last few years, socio-demographic variations, particularly the increase in the quantity of grown-up travellers displaying adjusted travel behaviour, have drawn wider attention in the tourism industry. Analogously, in tourism research, the current generation has become a centre of concentration, particularly due to their eagerness for travelling and increased aptitude of travellers. Travel behaviour stops to transform or transforms only very gradually or trivially after attaining a certain age. Only when selecting a means of transport is the occasion that a steady propensity towards higher levels of calmness and service eminence has been observed. Hence, the stress-free and relaxed use of a transport system is more vital than plain cost and time efficiency. More importantly, grown-up travellers put high demands on eminence and security when selecting a means of transport (Boksberger, et al., 3). Leksakundilok indicates some negative consequences of the growth of tourism. He states that tourism is a susceptible industry suffering recurring variations and vulnerable to the alterations of the marketplace and that tourism growth is linked to the utilization of natural resources, time and space. This may in turn cause overexploitation of resources and ensuing environmental degradation. It also has a connection with other development sections and has a link to cultural heritage (9). According to Chaiwat and Luis, despite the remarkable growth in global tourism since 1900, the industry has been affected by the continuing worldwide economic crisis. The World Travel and Tourism Council disclosed the outcome of its Travel and Tourism Competitiveness Report of the year 2009, describing that tourism growth will come across a more testing time than ever before owing to the effects from an economic improbability. The report also forecasts a slump of global tourism predominantly in rising markets. This means that destinations that mainly depend on the tourism sector as a major economic activity will be deprived of their economic base (2). Global economic crisis in 2009 led to poor performance of travel arrivals to Europe as they reduced in 2008 and 2009. Reduction in visitors mainly resulted from increased competition from rising tourism destinations, particularly in the Middle East and Africa region. Furthermore, it drastically affected the amount of global trips worldwide. The brutal economic crisis caused most countries in Europe to record depressing Growth Domestic Product, with intra-European influx from Spain and the UK, which were badly hit by the crisis recording the greatest reductions (Rossini, 1). Other than, the global recession, other causes of the decline in the tourism industry include inexperienced and restricted connections to the market, terrorist activity, political unsteadiness, security problems and natural calamities. In addition, the apparent infringement of human rights and imbalanced or uneven development also affect the growth of tourism (Leksakundilok, 11). Conclusion The remarkable growth of global tourism industry since 1900 has had several impacts on travellers, their destinations and the industry itself. Many countries have recorded a boost in their economy for making tourism a core development activity. The growth of the industry has also created millions of jobs globally. The travellers have had an opportunity to integrate and interact with peoples of diverse cultures of the world. Although the industry was affected by the global recession and consequently reduced most nations’ economy, it still stands as a major source of economic and social development globally. Works Cited Bardhan, Ashok. et al. Global tourism and real estate. (2008). Web. Bokhonok, Nickolay. Rise in global tourism. (2010). Web. Boksberger, Philipp, et al. Between past, present and future: Implicationsof socio-demographic changes in tourism. 2010. Web. Chaiwat, Baimai. & Luis, Daniel. “Market potential estimation for tourism in emerging markets.” Redalyc Journal, 7.3 (2009): 515-524. Print. Eagles, Paul. “International trends in park tourism: The emerging role of finance.” The George Wright Forum, 20.1(2003): 1-33. Print. Hotelmule.com. Tourism and development: A vehicle for development. (2008). Web. Leksakundilok, A. Global tourism and the Thai experience. (2006). Web. Rossini, Angelo. Is the European tourism industry in an irreversible decline? (2010). Web. Sharpley, Richard. The myth of sustainable tourism. (2009). Web. Read More