Forming the demand for international travel
Demand factors. What happened during the last quarter of the 20th century. dynamic development and increased diversity of international tourism were the result of the complex interaction of many socio-economic, demographic, environmental, technological and institutional factors that had a profound impact on all components of the travel industry. They changed the fundamentals of competitiveness and influenced the structure of spending on international travel. The main role is played by demand factors.
The formation of demand for international travel is due to a variety of reasons, reflecting the diverse features of people who for various reasons go abroad. People traveling for free time (holidaymakers) represent the largest group in both developed and developing countries. Therefore, the factors associated with this contingent play a dominant role. According to the data of the World Tourism Organization, in 2002 travelers-vacationers accounted for 68.1% of the total number of travelers around the world, and in 2011 - about 70%. Individuals who traveled and traveled for other purposes, including visits to relatives and friends, made up a much smaller, but still significant category - 16.5 and 15.1% respectively. However, between these categories it is sometimes difficult to draw a clear line, since people who go abroad often seek to combine different goals, for example business and entertainment, treatment goals, etc. The stimulus to the growth of international tourism flows was the globalization of business activities and the rapid increase in demand for tourist trips, mainly due to revenue growth, a reduction in the real cost of travel and an increase in the duration of free time. The easing of restrictions on travel abroad and support from government and private organizations also serve as an incentive for tourism development. The factor that stimulated the growth of flows of foreign tourists was the spread of inexpensive complex tours; influenced and other reasons, such as immigration and migration of workers, political turmoil, economic complications, etc.
How to ...
Tired of looking for a solution?Get Your ESSAY Now!
Among these demand-determining factors, the most important are the income level and the cost of travel. International tourism in the consumer basket is considered as a luxury item, so its volume varies depending on the level of income. This pattern (although not entirely confirmed, as international tourism is becoming a fairly regular form of leisure time for an increasing number of people) is reflected in the fact that the growth rate of tourism is much higher than the growth rate of GDP. The share of income spent on travel, as a rule, increases as the total revenue growth, until it reaches the level of saturation. The existence of such a positive relationship is also confirmed by the fact that cyclical changes in the level of incomes and demand for tourism occur mostly in parallel. However, the dependence of tourism indicators on income change cycles is largely asymmetric, since tourism responds more sensitively to upswings than to recessions (this is mainly due to structural factors, such as social benefits and the processes of globalization). Dependence on income is also reflected in the fact that the share of countries with high incomes prevails in world tourism expenditures.
Another important factor determining demand is tariffs for passenger transportation. In particular, a sharp decline in the cost of air travel has ensured the availability of travel for long distances and in recent decades has played a decisive role in the growth of international tourist flows. The cost of tourists (travel costs) is also affected by changes in exchange rates and inflation.
The increase in the duration of free time as a result of the reduction of the working week and the establishment of all new official holidays also contributed to a steady increase in the demand for foreign tourism. In developed countries, paid leave varies from two weeks in the United States to seven weeks in the Netherlands, and this difference has a significant effect on the length of travel. However, recently the attitude towards granting this privilege has changed, and in many developed countries paid leave has stopped lengthening. In a number of such countries, setting an upper limit on the duration of leave is becoming a deterrent to the growth in demand for overseas tourist trips.
Reduction in many countries of all kinds of restrictions for citizens wishing to travel abroad, and for tourists visiting the country also was an important reason contributing to the rapid growth of international tourist travel. In South Korea, for example, easing restrictions on travel abroad led in the second half of the 1980s. to a sharp increase in the flow of people leaving for rest - by 30% per year. The inclusion of countries with economies in transition in recent years in the world market system has also increased the number of citizens leaving these countries for other states, including South-East Asia and South Africa.
Ready to make your order?Get your great paper now
In regions of the world where regional integration is gaining momentum, the volume of intraregional travel is growing rapidly. Integration has facilitated, in particular, the movement within the region of people traveling for short periods to rest, migrant workers and persons traveling for business purposes. In Europe, the Schengen agreements nullified border control at the borders of the EU countries. Despite this progress, in many countries there are still various barriers to the movement of persons. The main ones are direct administrative control at the entrance and exit points, for example requirements for visas, availability of a foreign passport and permission to leave; indirect control, for example, a restriction on the import and export of foreign currency, other laws and regulations, which, although they relate mainly to immigration and migration of workers, also affect travelers. The removal of these barriers can lead to a sharp increase in demand for tourism, which has so far remained unrealized in an increasing number of developing countries and countries with economies in transition.
Changing consumer preferences, due to demographic changes and increasing attention to socio-cultural and environmental conditions, is increasingly affecting the nature of tourism demand in developed countries. In particular, the aging of the generation born after the end of the Second World War, and the high probability of a long life for these people in conditions of prosperity, led to an increase in the number of potential tourists-travelers. As a result, the center of gravity, especially in developed countries, is gradually shifting from standard mass tourism, based on traditional demand for sun, sea and sandy beaches, for more flexible and diverse forms of recreation, covering a wide range of interests, including cultural studies, historical heritage , the natural landscape, the entertainment industry, as well as sports, education, health promotion and other specific needs.
However, the spread of inexpensive mass tourism, based on economies of scale and standardization, is conducive to the broad development of international tourism, since it enables foreigners with lower incomes to travel abroad. Although in recent years in developed countries the growth rates of new forms of tourism have begun to outstrip the use of strictly regulated complex tours, ordinary mass tourism will remain the main form of recreation for some time, especially in developing countries and countries with transitional economies. Thus, each age group of tourists has its own niche in the world tourism industry.
Restrictions on trade and foreign investment indirectly have a deterrent effect on business travel. Recently, due to the globalization of business activity, the number of business trips has rapidly increased, including trips to trade fairs, exhibitions and seminars. This is usually a more complex and expensive type of international travel with a high level of service. Countries with wide foreign trade relations and large foreign investments usually send and receive a relatively large number of people traveling with business purposes. In Europe business trips are more often made to France, Italy and Great Britain. In the first decade of the XXI century. the number of business trips has also increased significantly in developing countries, where foreign trade and foreign investment are rapidly growing.
In countries with a recent colonial past, still retaining close business and cultural ties with metropolitan areas or facing large flows of migrant workers, immigrants and refugees, a significant proportion of travel from country to country involves visiting friends or relatives. An example is the flow of tourists traveling between France and its former colonies in Africa and Asia, between Germany, Turkey and Portugal, as well as between the US and Vietnam. Recently, large immigration flows and flows of foreign workers from some Asian countries to Australia, Canada, New Zealand and the Arab East have also led to an increase in the number of visits by their relatives to these routes.Problems associated with the pollution of water by solid and liquid wastes, damage to ecosystems, the introduction of alien elements into traditional culture, overpopulation, increased crime and the spread of diseases in places visited by a large number of visitors helped people to realize that there are social and environmental limits of growth in the scope of travel and tourism. This is reflected in the rapid development of ecotourism, cultural tourism and agro-tourism in an increasing number of countries. For example, Brazil and Costa Rica, which have a rich biodiversity and picturesque natural landscapes, successfully develop ecotourism to prevent further deterioration of the ecological situation and at the same time diversify their foreign exchange earnings. Similar trends are developing in an increasing number of countries, generating new forms of services and types of services in tourism business.
Proposal factors. The factors determining the offer in the field of international tourism are numerous and varied, since tourists-travelers need a variety of goods and services. Especially important are non-reproducible natural and cultural tourism resources, such as mountains, beaches, tropical rainforests, hot springs, favorable climatic conditions and cultural monuments; accommodation facilities and infrastructure, human resources and technical capabilities. These factors do not only determine the potential to meet demand, but also underpin the competitiveness and specialization of individual countries.
Traditional natural and cultural resources are the most important factors for attracting tourists. These resources are basically unchanged and give an advantage to those countries that are rich in them. They are the basis of the traditional attractiveness for mass tourism of European states, which have accumulated huge cultural potential for centuries of civilization. At the same time, a number of developing countries in the Caribbean, North Africa and parts of the Asia-Pacific region, which do not have an export alternative or are threatened by a decline in exports of basic commodities, are successfully developing a competitive tourism industry using the natural advantages of their countries and cheap labor. In Malaysia, Thailand and Indonesia over the past two decades, the promotion of international tourism has been promoted as one of the most reliable alternatives in terms of export diversification; in the first years of the 21st century, as noted above, the revenues from tourism exceeded revenues from traditional for these countries export items - palm oil and crude oil; in 2001-2011. this trend is even more entrenched.
The offer of tourism services primarily depends on the capacity and quality of accommodation facilities, infrastructure and other facilities for tourists. For international travel, transport opportunities are especially important. The development of all these factors requires large investments. Developed countries, as a rule, have well-developed infrastructure. Some of its elements, such as hotels and transport, are used not only for tourism. At the same time, a large demand for tourism in the domestic market stimulates the creation of funds and facilities designed exclusively for this purpose. Nevertheless, in many developed countries, especially in those where many travelers arrive, airports and road transport experience overload during the peak season, so additional efforts are needed to overcome such problems.
In most developing countries and the CIS, the growth of the tourism industry is hampered by inadequate accommodation conditions and infrastructure deficiencies. These countries do not have the funds necessary to invest in these industries. The lack of direct air communication with the main centers of demand for tourist trips also affects, and the unsatisfactory state of the road transport network adequately reflects the low level of social and economic development as a whole. In a number of Southeast Asian countries with a dynamic economy and, accordingly, with a more developed infrastructure, the rapid growth of travelers' flows, as well as in developed countries, exceeds its capabilities.
In many developing countries and countries with economies in transition, the income from one tourist is excessively low due to the unsatisfactory level of hotel services and the lack of opportunities to obtain more favorable conditions for themselves in negotiations with major foreign tour operators organizing complex tours. Low income per tourist adversely affects the ability of these countries to provide the financing necessary to improve the quality of services. However, in a number of developing countries, large transnational hotel chains play an important role in the development of tourism and its marketing. A higher level of organization, stable quality of services and a well-established global sales network allow them to support the influx of tourists at the proper level. By providing developing countries with financial and technical assistance, management expertise and know-how, they can also help these countries build their capacity to develop the tourism industry at the current level. This, however, is just a hypothesis, as the competition in this area is rather tough and companies well-known in this field are reluctant to transfer their knowledge to potential competitors if they do not see benefits for themselves.
The role of the state. Governments play an important role in the development of the tourism industry. In particular, many developing countries have made concerted efforts to develop the tourism industry as a strategically important sector for receiving foreign exchange and expanding the export base. To this end, they improve air communication with the countries from which the flow of tourists comes, develop new types of services, expand the liberalization of the exchange regime for foreign currencies, carry out the devaluation of their currency, establish competitive tariffs for the placement and privatization of the tourism sector. To overcome the shortage of investment capital, they introduce incentives to attract foreign investors and encourage the creation of joint ventures.
In the context of the intensification of regional integration efforts, governments are also seeking to lift restrictions on intraregional travel, regulate transport and harmonize their laws, regulations and overall strategy. They are increasingly developing cooperation with the aim of combining the resources of regional tourism, providing more attractive joint tourist services complexes, developing regional infrastructures, protecting the region's ecology and promoting their tourism services.
Globalization of the tourism industry. The rapidly developing processes of globalization and regional integration directly or indirectly contribute to the influx of tourist travelers. In terms of demand, the removal of restrictions on the movement of people and the revision of economic regulation contribute to the expansion of freedom of movement and thereby expand the travel market. In terms of supply, they contribute to increasing the profitability and competitiveness of the tourism industry through the admission of foreign competitors to the market, and also facilitate access to external resources such as foreign capital, information technology, modern airline networks, managerial experience and skilled labor. However, in different countries, the degree of impact of these factors will vary depending on the level of development of the country, the structure of its economy and the nature of state regulation. Due to the fact that the barriers in this sector are high, and the differences between countries are significant, the liberalization of international travel promises great potential benefits.
The more free movement of entrepreneurial activity from country to country and the intensification of competition as a result of globalization often lead to a concentration of control in the hands of a small number of large multinational hotel companies. There is a certain danger that these highly competitive large hotel chains will dominate local hotels, which tend to be small, organizationally weaker, and in a less favorable position in terms of capital, management experience and marketing. In countries such as France, Italy and the United Kingdom, where the tourism industry is represented mainly by numerous small enterprises, globalization can have a significant impact on it. In developing countries, most hotels owned by local entrepreneurs are in a similar situation. In order not to go bankrupt, small firms seek a strategic alliance with major hotel companies, mainly through franchise agreements and management contracts, or specialize in servicing market niches, meeting specific tourist needs. As a result, the market is crushed, a wide range of prices for services and levels of their quality, as well as a variety of tourist routes is created.The system of organizations regulating international tourism. International tourism is regulated by a large number of different organizations of different status and scope of regulation, and constituting the whole system. Currently, there are more than 200 international organizations that in one way or another regulate, coordinate or exert a certain direct or indirect influence on the world tourism industry. One of the main is the World Tourism Organization (WTO), established in the UN system; its statute entered into force on January 2, 1975
The WTO is the only specialized international organization in the field of tourism and unites more than 120 countries of the world. In accordance with the WTO charter, its main objective is to promote and develop tourism as a means of economic development and international understanding to ensure peace, prosperity, respect for and observance of human rights regardless of race, gender, language or religion, and respect for the interests of developing countries in the field of tourism. The WTO Charter states that its governing bodies are the General Assembly, the Executive Board and the Secretariat.
The General Assembly is the supreme body of this organization, consisting of delegates representing active members. The nature of the work of the General Assembly is sessional: the regular sessions are convened every two years, and extraordinary - when there is an urgent need for this. The General Assembly established six regional commissions: for Europe, Africa, America, South Asia, the Middle East, East Asia and the Pacific, and the International Higher Learning Center for Tourism (SIEEST) in Mexico. These commissions are responsible for the implementation of the technical recommendations of the Assembly in the respective regions. The WTO Executive Council consists of full members elected by the General Assembly. The term of office of the members of the council is four years. It is going to its regular sessions, usually twice a year. The Council works between sessions of the Assembly. The Council has established a number of subsidiary bodies: the Committee on Facilitation of Tourist Formalities, the Budget and Finance Committee, the Environment Committee, the Technical Committee for Program and Coordination. The WTO secretariat consists of the Secretary General and staff. The Secretary General is appointed by the General Assembly of the WTO for a period of four years. The Secretariat carries out important work publishing annually the official, recognized by the UN, international tourism statistics. The Articles of the Charter, which determine the financial activities of the WTO, states that the organization's budget is made up of contributions from actual, associate and affiliated members. The proportionality of contributions is determined on the basis of the level of economic development and the importance of tourism for each country. The headquarters of the WTO is in Madrid (Spain).
It should be noted that GATT had a significant impact on the development of the world tourism market, and since 1995 - the World Trade Organization. It regulates the tariff and trade policies of the WTO member countries on the principles of multilateral trade, the application of the general most-favored-nation treatment regime, the reduction of customs duties and elimination of other barriers to trade, reciprocity of concessions. The GATT-WTO rules apply to international tourism as a form of foreign trade activity. The accelerated liberalization of trade relations in tourism led to the signing of the General Agreement on Trade in Services (GATS), expanding access to markets for services, including tourism.
Some organizations are of a regional nature. Thus, the Arab Union for Tourism, established in 1954, unites the national tourist organizations of a number of Arab states. Individual international organizations have a professional orientation, such as the International Association of Scientific Experts on Tourism (AIEIST), founded in 1951, the World Association for Vocational Education in Tourism, founded in 1969 under the auspices of the WTO. Other international organizations have a clear commercial nature - the International Tourist Alliance, specializing in insurance when traveling abroad on cars, the International Association of Professional Congress Organizers. Quite close to the nature of its activities, international organizations are joined by several national organizations, such as the American Society of Travel Agencies (ASTA), which has a large number of foreign members, the Association of British Travel Agencies (ABTA), the Confederation of Latin American Tourism Organizations (KOTAL)
The World Federation of Travel Agencies Associations (FUAAV), which was established in 1966 as a result of the merger of the International Association of Tourist Agencies (FIAW), which existed since 1919, and the World Organization of Associations of Tourism Agencies (WTAAA ). FUAAV unites over 70 national and regional associations, in which over 20 thousand individual tourist agencies and firms are represented. The main purpose of this organization is to protect the professional interests of travel agencies and provide them with the necessary technical, professional and legal support. Youth tourism organizations are active. Among them you can name the International Bureau of Tourism and Youth Exchange (BITEZH), the Student Association for Air Transport (CATA), the Federation of International Youth Tourism Organizations (FIITO), etc.
At the initiative of the World Tourism Organization, it, together with UNCTAD, approved a long-term program "Sustainable Tourism - the Guarantee for the Eradication of Poverty (STEP)". Its main tasks are the following:
• Development of human potential. Paying special attention to the quality of tourism education, UNWTO is the initiator, leader and coordinator of work on improving the training of personnel for the tourism industry;
• the quality of tourism development. The program includes three main activities of the World Tourism Organization:
- assistance to member countries in the development and implementation of a balanced policy on trade in tourist services on the principles of liberalism and in accordance with the main provisions of the General Agreement on Trade in Services;
- ensuring the safety of tourists;
- introduction of unified international quality standards in tourism taking into account national specifics.
In 1969, according to the resolution of the UN General Assembly, the non-governmental International Union of Official Tourism Organizations (IUOTO) was transformed into an intergovernmental organization in the field of international tourism. Other important organizations in this field include: the World Organization of Tourist Agencies (WATA), the World Federation of Travel Agencies Associations (FWAAW), the International Hotel and Restaurant Association (IHRA), the International Automobile Federation (FIA), the International Association of Recreational Parks and entertainment (IAAPA), etc.
One of the world's most famous international tourism organizations of a sectoral nature - the International Air Transport Association (IATA) - was founded in 1945 as the assignee of the International Air Transport Association. Today its members are about 270 airlines in 140 countries (territories) of the world. They account for 94% of all international scheduled air services. IATA headquarters is in Montreal (Canada), the executive committee is in Geneva (Switzerland).
An active role is played by regional international tourism organizations of general profile, which represent associations of national tourist institutions. These include the European Tourism Commission (ETK), the Confederation of Tourism Organizations of Latin America (KOTAL), the Arab Tourism Organization (ATO), the African Tourist Association (ATA), etc. The Asian and Pacific Tourism Association PATA), which was established in 1952 on the principles of public-private partnership. By early 2012, this association included about 200 ministries, departments, tourist administrations of different levels, as well as more than 60 air carriers and cruise companies, 210 hotel chains, independent hotels and other accommodation facilities, hundreds of tour operators; travel agencies, entertainment facilities, consulting firms, educational institutions, etc. Thousands of professionals of the tourism industry - members of the association - form a network of regional cells (chapters). In order to strengthen the coordination links within and between them, four branches function in PATA: the Asian, Pacific, North American and European. The headquarters of PATA is in Bangkok (Thailand).
Regional international tourism organizations of a sectoral nature are associations of tourist service enterprises in the tourism industry sectors and regions of the world, are called upon to protect the collective interests of the members of the organization and provide them with the necessary technical, legal and other support. Regional organizations of a sectoral nature include the Association of European Airlines (AEA), the Association of European Tour Operators (ETOA), the Inter-American Bar Association (IABA), the Latin American Railway Association (ALAF), the Caribbean Hotel Association (ACA), the Asia Pacific Airlines Association (AARA) Organization of Arab Air Carriers (AACO), Association of African Airlines (AFRAA) and many others.
The Confederation of National Associations of Hotels, Restaurants, Cafes and Similar Establishments in the European Union and the European Economic Area (HOTREK) serves as a classic example of regional international tourism organizations of a sectoral nature. It was founded in 1981 and currently includes 36 professional associations of 22 European countries. Headquarters HOTREK is located in Brussels (Belgium). Practical activities of KHOTREK are aimed at strengthening cooperation between its members, protecting the interests of the hotel and restaurant industry in the institutions of the European Union, maintaining a dialogue with public organizations, primarily the European Federation of Trade Unions of Food, Agriculture and Tourism, interaction with representatives of other sectors of the European tourism industry , establishing and maintaining contacts with the world tourist industry.
A group of international organizations for various types of tourism (social, business, environmental, youth, etc.) belongs to specialized international tourist organizations. Among them, the International Association for Social Tourism (IAST), the Federation of International Youth Tourism Organizations (FIUITO), the International Association for Tourism with Business Purposes (IBTA), the International Federation of Equestrian Tourism (FITA), the International Union of Mountaineering Associations (IUIA) and many others.
Specialized tourist organizations include the International Bureau of Social Tourism (BITS), formed in 1963 and numbering today more than 140 members from 40 countries in Europe, America and Africa. These are governmental and non-governmental structures, international and national, commercial and non-profit organizations. Some of them deal directly with the issues of social tourism and youth affairs, others (associations of tourist, hotel and transport enterprises) represent the tourism industry. BITS has close links with UN agencies - UNESCO and the International Labor Organization. The headquarters of BITS is located in Brussels, Belgium.
The specific nature of the activities of a number of organizations that regulate different aspects of the tourism industry (research, marketing, training, etc.). This group of international organizations includes the International Academy of Tourism (ACIT), the International Association of Scientific Experts in Tourism (AIEST), the World Association for Vocational Training in Tourism (AMFORT), the International Club of Famous Travelers (AIGC), the International Association of Congress Translators ), The International Forum of Advocates for Tourism and Travel (IKTTA). The International Federation of Journalists and Writers on Tourism (FIJET) is a non-profit, non-political organization that represents the interests of journalists, writers, editors, publishers and photographers in the field of tourism-related activities.
Price Plan & Our Features
- Free Outline
- Free Formatting
- Free Title page
- Free Reference Page
- Free Revisions
- Free Submission by Chapters
- Free Plagiarism Report
- Free Customer Service
- 1 – page abstract
- VIP Support
- Expedited delivery
- Essay outline
Also We Can Offer!
- Argumentative essay
- Best college essays
- Buy custom essays online
- Buy essay online
- Cheap essay
- Cheap essay writing service
- Cheap writing service
- College essay
- College essay introduction
- College essay writing service
- Compare and contrast essay
- Custom essay
- Custom essay writing service
- Custom essays writing services
- Death penalty essay
- Do my essay
- Essay about love
- Essay about yourself
- Essay help
- Essay writing help
- Essay writing service reviews
- Essays online
- Fast food essay
- George orwell essays
- Human rights essay
- Narrative essay
- Pay to write essay
- Personal essay for college
- Personal narrative essay
- Persuasive writing
- Write my essay
- Write my essay for me cheap
- Writing a scholarship essay