Unit-1 Global Tourist Traffic Trends and Receipts Patterns Over the Years
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International Tourism BTTM-203 UNIT-1 GLOBAL TOURIST TRAFFIC TRENDS AND RECEIPTS PATTERNS OVER THE YEARS Structure: 1.1 Objectives. 1.2 Introduction. 1.3 Tourist traffic trends over the years 1.3.1 Present Scenario 1.3.2 Regional Highlights 1.4 Tourism receipts over the years. 1.4.1 Present Scenario 1.5 Let Us Sum Up 1.6 Clues to Answers 1.7 References 1.1 OBJECTIVES: After reading this Unit you will be able to: • To understand the tourist arrivals patterns in past few years, • To know about the trends of tourist receipts in international tourism, • To understand the pattern of tourist arrivals all over the world • To know about the most visited countries. • To know about the top tourism receipts earners. 1.2 INTRODUCTION: Tourism has become a popular global leisure activity. In 2010, there were over 940 million international tourist arrivals, with a growth of 6.6% as compared to 2009. International tourism receipts grew to US$ 919 billion (euro 693 billion) in 2010, corresponding to an increase in real terms of 4.7% .The massive movement of tourists world over and the economic transformation that is taking place because of tourism are known features of tourism. However, the unimaginable growth of international tourism has also brought about rapid changes in terms of economic growth as well as decline. 1 International Tourism BTTM-203 In this Unit, we attempt to give an overview of the issues involved in tourism at a global level and the economic impacts that have been generated or felt as a result of it. The Unit starts with explaining some of the global characteristics regarding the size and scope of tourism & trends of tourism at the global level. It further discusses the tourist arrivals, tourism receipts and tourist expenditure at the global level. The Unit also deals with the present scenario of tourism receipt and tourist arrivals all over the world. 1.3 TOURIST TRAFFIC TRENDS OVER THE YEARS: The phenomenon of tourism since 1950 has been remarkable in terms of growth, spread and diversification. The international tourist arrivals since then have grown from mere 25 million to reach 940 million in 2010. The fast growth and spread not only resulted the globalization of people’s movements as never before but also contributed in creating a vibrant industry and opportunities for millions of people. In 2003, international tourism lived through another considerably difficult year in which three negative factors came together: the Iraq conflict, SARS and a persistently weak economy. The Iraq conflict and the preceding high level of uncertainty depressed worldwide travel in the first quarter of the year. The unexpected outbreak of SARS brought the steady growth of Asia and the Pacific temporarily to an abrupt halt, causing many destinations in the region to welcome less than half of their usual number of arrivals in the months of April and May. Even though tourists quickly started to return after the virus was contained, it proved impossible to compensate the losses fully in the remainder of the year. With the long- awaited economic recovery only starting to become visible in the fourth quarter, the state of the economy did not help much either to stimulate tourism demand. Although conditions improved notably throughout the year, and positive figures generally started to return in the second half of 2003, recovery has not been sufficient to save the year for all destinations. Preliminary estimates of full year results show that worldwide the volume of international tourism as measured in international tourist arrivals slid back by a bit more than 1% to 694 million, corresponding to a contraction by some 8.6 million arrivals on the 2002 volume of 703 million. This result is closely linked to the unexpected drop by 12 million arrivals (-9%) suffered by Asia and the Pacific due by the SARS panic. Furthermore, the Americans also recorded a decrease (-2%), while Europe just consolidated its 2002 figure (0%). Finally, the Middle East and Africa have recovered quickly during the year and have in the end not notably been affected by last year’s adverse conditions. They actually recorded the best results of all regions, with estimated increases of 10% and 5% respectively. 2 International Tourism BTTM-203 Table 1.3.1 International Tourist Arrivals Year Total in Million % Change over previous year 1950 25.282 - 1960 69.296 174.09 1961 75.281 8.64 1962 81.329 8.03 1963 89.999 10.66 1964 104.506 16.12 1965 112.729 7.87 1966 124.876 6.27 1967 129.529 8.12 1968 130.899 1.06 1969 143.140 9.35 1970 159.690 11.56 1971 172.239 7.86 1972 181.851 5.58 1973 190.622 4.82 1974 197.117 3.41 1975 214.357 8.75 1976 220.719 2.97 1977 239.122 8.34 1978 257.366 7.63 1979 273.999 6.46 1980 284.841 3.96 1981 288.848 1.41 1982 286.780 -0.72 1983 284.433 -0.82 1984 311.167 9.10 1985 325.725 4.68 3 International Tourism BTTM-203 1986 332.924 2.21 1987 358.659 7.73 1988 390.000 8.74 1989 405.000 3.85 1990 415.000 2.47 1996 595.000 - 1997 612.835 2.99 1998 625.236 2.02 2000 687.300 6.8 2001 684.100 -0.5 2002 702.600 2.7 2003 694.000 -1.2 2009 880 --- 2010 940 6 2011 980 9.5 Source: UNWTO The flow of tourists to various destinations around the world has changed drastically in recent years and data compiled over the past decade corroborates certain trends. New outbound markets occupy the top spots and the ranking of destinations has been turned upside down. Emerging economies are profoundly altering the global tourism market, which is now shared amongst a much greater number of countries than before. According to World Tourism Organization (WTO) estimates, the number of international tourist arrivals reached 940 million in 2010, or a 39% increase over 2000. Seen over the longer term, growth has been exponential; only 25 million tourists travelled in 1950. From 25 million in 1950 to 664 million in 1999, the average annual growth rate of tourism, as per WTO has been 7 per cent. Though the concentration of tourists continued, in terms of arrivals, in Europe, Americas and East Asia/ Pacific regions a diversification has been taking place with destinations of Asia, North Africa, Latin America and Caribbean islands joining in the race. More than 70 countries have received more than one million international tourists in 1999. World tourism industry has proven its resilience. The global tourism sector has grown somewhere 5% in 2010, according to IPK’s World Travel Monitor. International travel spending has grown slightly faster by 7% to €781 billion while the much larger domestic travel market has also grown well by some 4%, the latest World Travel Monitor trends for January September 2010 show. 4 International Tourism BTTM-203 In the year 2010, the recovery was powered by emerging markets such as Asia, South America and the Middle East which all have double-digit growth rates. The large mature markets of Europe and North America, in contrast, have shown only moderate growth in year 2010. Table 1.3.2 World tourist Distribution Region 2009 2010 World -4% +5.6 % Europe -6% +1.3 % Asia Pacific -2% +9.11 % N. America -6% 0.2 % S. America -3% +11.13 % M. East -5% +10.12 % Source: UNWTO Since the 1970s where tourism became increasingly affordable for developed economies, the number of international tourists has more than doubled. The expansion of international tourism has a large impact on the discipline of transport geography. As of 2010, 877 million international tourist receipts were accounted for, representing more than 10% of the global population. Tourism dominantly takes place in Europe and North America. Traveling has always been an important feature of society. First the explorers traveled the world to learn more about geographical regions, potential markets and to exploit resources. As time moved on an as transportation became more reliable, traveling became a mundane activity taking place in an organized environment; tourism. In the modern world, traveling is more centered on the annual holidays and can be fairly well predicted. Tourism, as an economic activity, is characterized by a high level of elasticity. As transport costs are significant for international transportation, demand is strongly influenced by cost fluctuations. Therefore, transport is the key element in the tourism industry. The demand in international and even national transport infrastructures implies a very large number of people who wants to move in an efficient, fast and inexpensive manner. It requires heavy investments and complex organization. Well organized terminals and intelligently planned schedules are essential in promoting effective transportation facilities for tourists, notably since the industry is growing at a fast rate. Transport is the cause and the effect of the growth of tourism. To start with, the improved facilities have stimulated tourism, and the expansion of tourism has stimulated transport. Accessibility is the main function behind the basics of tourism transport. In order to access the areas that are mainly aimed, tourists will use any transportation mode. However, air transport is the main mode for international tourism, which normally entails travel over long distances. Growth rates of international air traffic are pegged with growth rates of international tourism. Transport policies and decisions of governments can make 5 International Tourism BTTM-203 a big difference in the destinations available to tourists.