Tourism

Recent Trends and New Development in Tourism Industry

Recent Trends in Tourism Industry

dataTrekkSoft AG is a company which provides a Software as a Service solution for booking and selling tours and activities online. They have interviewed a total of 145 companies asking them what customer behaviours they have observed from visitors in order to understand the recent trend in tourism and foresee the new development of tourism to meet customers’ desires better.

Continued Strength of Chinese Market

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The Chinese market for tour and activity companies is the fastest-growing tourism source in the last ten years, having spent a whopping $498 billion in 2014 on outbound travel. Most of the Chinese tourist are interested in famous brand names and prestige, alongside an online mobile-optimised booking experience. So many countries are using different methods to attract Chinese customer travel to their countries. As we can see, due to the boom in Chinese visiting in South Korean, at around 3.8 million, it is not difficult to find a salesperson who can speak Mandarin and able to cater to them through their selling skills.

Discovering untouched and unique places

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Tourists are looking for the opportunity to explore lesser-known destinations, especially those that are one-off panoramas and unique surroundings such as Costa Rica, Bhutan and Myanmar. Tourists visit there will do joins city tours or activities that they cannot get anywhere to create unforgettable memories in their bucket list. Frequently, they will choose to play most of the adventure activities such as paragliding in the Pyrenees, scuba diving in Bali, or trekking in Nepal so as to step out their comfort zones and transcend limits, they must undergo the once-in-a-lifetime experience that they have always wanted to do.

Growth of Millennial Travellers

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Millennial refers to the generation of people born between the early 1980s and the early 2000s. They have just starting to enter their prime travelling years. It is important to align your yours and activities to fit the needs of the young travellers, 20% of the world tourist. By 2020, this market will be taking 47% more international trips than in 2013. In Hong Kong, we can acknowledge that many of University student will also travel to foreign countries in semester break. The habits of millennial are also kind of factor leading to the new trends in tourism. According to the survey conducted by travel data platform Adara together with research partner Db5, they are looking for cultural immersion through cuisine and local hotspots as well as engaging more to the assortment of amenities packages. Also, they prefer to stay in a house or an apartment rental through Airbnb instead of booking the hotel rooms in term of the lodging preferences. Almost 38% of them use digital resources such as review websites and user-generated content on social media in their research process. Therefore, the growth of Millennials tends the tourism industry to be more tech-centric and offer more exclusive and new services.

Growth of Solo Travel

More and more people are interested in travelling alone- most of the people going solo are millennials. An MMGY Global Survey of American adults found that 37% of millennial respondents planned to travel by themselves in July 2015, an increase of 5% from 2014. Also, according to Jennifer Halboth, director of channel marketing for the Globus Family of Brands, she predicted that solo travellers would be quite a force over the next five to ten years. It is interesting to note that among the population of single travellers, around 70% are female and even half of them aged 55-69 years old. They look forward to travelling to exotic destinations and looking for historical and cultural experiences. The reason behind in solo travel is mainly due to the flexibility of travelling independently.

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Growth of Responsible and sustainable tourism

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Taleb Rifai, the United Nations Educational, Scientific, and Cultural Organization (UNESCO) foresees 2017 will be the “International Year of Sustainable Tourism”. According to the data revealed by the International Ecosystem Society, around 50% respondents mentioned that travel would help them inspire from the awareness of environmental diversity and the importance of protecting endangered species and natures. Also, 37% of them said that they would act on their environmental concerns while they are travelling. The above statistics imply that travellers will be more interested in the environmental, social and cultural impact they have on the destination they visit.

Growth of Volunteer Vocation

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There is an upward trend in the volunteer vacation. Travellers tend to participate in voluntourism programmes that provide material benefits for the host community. For example, Conde Nast Readers conducted the survey in 2012 revealed that 47% of respondents said that they are interested in volunteer vacations and almost 100% of them are satisfied with their experience. A significant number of universities offer summer volunteering programmes for undergraduate students to enrich their life experience, and there are several renowned volunteer organisations set you off on the right foot as a volunteer abroad such as Volunteer Solutions, International Volunteer HQ and Volunteers for Peace.

Travel photography

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Since the invention of cameras, smartphones and photo editing apps for travellers, most travellers will capture their experiences through mobile photography. Afterwards, they will share their fantastic landscapes in Instagrams and Facebook to their circles. Moreover, with the new feature of Facebook, travellers can post a Live video to share your travelling experience right now, which seems that the audiences are also travelling with you and understanding your feelings as well. Besides, taking mobile photography is a convenient way to document your travel memories, and you can view pictures in anywhere and anytime. Tourism has continued to go hand-in-hand with photography.

New Development of Tourism Industry

Development of Smart Travel

tripadvisor-logo螢幕快照 2017-02-07 下午9.21.45.pngThe advent of wearable tech is ushering in a new era of travel and tourism, according to some industry reports. While apps have provided some customization and reviews from individual travellers have offered tourists more and more information about the best places to see, eat and sleep, apps like TripAdvisor for the Apple Watch can send push notifications to users, with information about nearby attractions, highly rated restaurants in the user’s vicinity and more. Google Now also offers suggestions, using geolocalization to keep its ideas relevant to the user, while also taking note of the user’s past behaviour. The result will be an increase in customization that makes travel suited to your individual preferences—which, in theory, should make your trips all the more enjoyable.

Heading to Private Islands

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Different types of tourists will appeal to the Private Islands – usually found in far-flung and exotic destinations within European countries. Chic travellers are going to head to Italy’s Pantelleria. Culinary tourists will favour in Naxos in Greece where there are many types of home-grown cheeses, and since the new hotel Le Domaine Misincu, located in Corsica in France will be opened soon, which is nicknamed ‘the island on the island’, they can have a chance to pick many cherries there.

Development of the Edible Resort

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The upward trend of the “edible” resort like farm-to-table, ocean-to-plate, beehives on roofs, rambling kitchen gardens will be continued expanded due to the increased awareness of the food provenance. Nowadays, most of the hotels tend to redesign the hotel landscapes that are ornamental gardens. They try to create enduring and delicious experiences for hotel guests in a hotel which similar to vineyards.  For example, the Bellevue Hotel in Cikat, Croatia, the flat roof of the hotel has been transformed into fragrant herb gardens, and you can see the staff pick this herb for use in the restaurant like as an ingredient for salad.

More Affordable in Sailing Adventures

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The sailing trip may be no longer only afforded by the noble people. There are many companies tend to offer a series of new sailing trips in a more affordable way to see special destinations. For example, the seven nights Zanzibar Spice Islands Sailing Adventure, the costs just over £1,000 and travels through rainforests to explore and fishing villages to visit. Visitors can have a hike through the Ngezi Rainforest or have a BBQ or cultural experience in the local fishing villages.

Development of Polar Travel

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According to the Worldwide Director of the Innovation Group, Lucie Greene, has cited Polar Travel is the main attraction to the explorers. Because of the global warming issues, lots of travellers are likely to visit the most remote and cold places on the Earth, that’s polar regions. They want to see those areas before they disappear forever. For example, the summer ice in Arctic reaches the historic lows in the coming years, so more ships are interested in developing more Polar travel to meet travellers’ expectation.

Multiplier effect of spending in tourism

Three economic impacts of tourism

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Tourism will create a lot of economic benefits for countries. According to economists, there are three types of economic effects result from tourism, including direct, indirect and induced economic effects. For direct effects (or primary effect), they refer to the immediate economic benefits regarding the change in production as a result of tourists’ spending in tourism industries, such as lodging, catering and retail. For example, when a customer decides to stay in a hotel, the hotel will have an immediate sales increase and the salaries and job offered in hotels will also experience the benefits following the sales growth. All these take place within the hotel sector or directly serve tourists’ need are called direct effects.

Regarding secondary effects, they are composed of indirect and induced effects. Indirect effects are influences derived from the spending by hotel sectors on hotel supplies. For example, the catering food supply from food industry supporting hotels will gain larger sales if there is a rise in the number of tourists as the need of food from hotels will also climb.

As for induced effects, the income and wages of employees and families in the about two ways, directly and indirectly, will be used in future for their own living, like housing, transportation and food. Therefore, there will be additional sales and income and jobs attracted by the household spending. And benefits generated by those spending are induced effects.  

Tourism Multiplier Effects

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The three different kinds of effects reveal that tourists spending will have various degree of influences to many industries and sectors, instead of solely the tertiary hotel sector. For the tourism multiplier effects, it put the emphasis on the impacts of spending on secondary effects, which is the extra expenditure in the economy caused by the first tourist spending. The tourism multiplier effect implies that when visitors spend a certain amount in tourism, the dollars will be multiplied to create a greater economic impact in different sectors in a country as a whole, composed of direct, indirect and induced economic effect. The multiplier effects show that tourists’ expenditure has substantial impacts on the benefits not only in the tourism, but also other business sectors in a larger scale and many times as the initial amount spent.  

Examples:

According to the Tourism Report published by China in 2016, it illustrates the fact that tourism and other industries are interdependent. The bright future of Chinese tourism market will lead to future growth of sales in other sectors within a region. As mentioned, the dollar tourists spent will circulate in the market and thus bring a significant income in different business, benefiting other industries indirectly. Reported regarding hundred million RMB, in 2005, China attained the achievement of 49888.73 indirect effects of the tourism sector while 21230.95 in indirect effects, half of the amount in the direct effects. It proves the impacts are enormous in cross-sectors. Furthermore, In 2005 tertiary industry, excluding tourism, obtained the highest proportion of the total indirect income,21230.951, nearly 55% of it. The second was the secondary industry, and the third was the primary industry, with about 40% and 5% respectively. For the industries related to tourism, compared with 2012, tourism contributed most in lodging and transportation by 80% increased in 2015 regarding both primary and secondary economic effect. Then, catering experienced the third large rise in value derived from travelling industry, growing by 60%. Impacts of tourism could also be found in retail, housing estate, and social development with different degree. The data proves that economic effects are so huge and tourism and other sectors have interrelationship, under multiplier effect, bringing various benefits to society, namely employment opportunities, income, and tax revenue.

Ways to enhance the multiplier effect

1. Diversifying business and industries

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Multiplier effect in tourism will be weakened if the economy structure in a country is narrow, that means the industries are not diverse enough since they cannot satisfy tourists’ different needs when they are travelling in the countries. In these countries with limited types of industries, they are not able to self-satisfied, so they need to import goods or services from other nations. As a result, there will be leakage of dollars caused by the spending from tourists under multiplier effect. Benefits will go to the exporting countries. Its implication is that government should spend resources, like providing subsidies or technological assistance to business units, to promote innovation and diversification, so they are able to set up different types of industries to provide various products and services to capture the profits and opportunities of tourism to maximize the efficiency of multiplier effects.

2. Support local industries and historical monuments

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Apart from developing new and diverse business as mentioned above, preserving local culture and historical sites is another way to attract more visitors and gain greater multiplier effects in tourism. Countries should protect their uniqueness like the natural spots and historical sites. The government should spare no effort to maintain the environment regularly. Besides, Government should also protect the local culture and assist companies to better the quality of their service and products. For example, the government can execute stricter control of food quality and help to do promotion of traditional food in Hong Kong by promoting local snacks, such as egg tarts, wonton noodles and fish balls in Food Trucks. In the long term, countries can attract more tourists and enjoy consistent economic benefits since tourists feel confident and satisfied with the place and goods and services.

3. Better policy to encourage visitors

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The government can provide an incentive to appeal more tourists. Simplifying the process of entry and exit will lower the cost and provide convenience for their visit. On top of that, well-developed transportation system will ease the accessibility of countries and stimulate consumption. As a consequence, the government should strive to improve urban planning by using more resources on public transport and better the land uses and route planning.

Reflection

For lecture two, we have had the big picture in the general concepts behind the hospitality industry and tourism. Both are the largest and fastest-growing industries in the world. Also, we have further understood one of the concepts we have learnt in the operation management course, five characteristics of services, what are their managerial implication towards the hospitality industry. Among them, one of the essential difference between the hospitability industry and other businesses is that in hospitability they are selling an intangible and perishable product.

If we have studied Hospitality Management, we must remember one of the critical theory: The Pineapple Tradition which acts as a symbol of welcome, friendship, and hospitality. Our group look forward to visiting Disneyland to see the big pineapple there. Since services have a highly intangible characteristic, so what must happen to achieve success in service? The key success happens when you recognize lots of guest-related situations and act to relieve them or avoid them. Simply to say, do you handle guest encounters, called as “moment of truth” effectively and keep guests happy?

Finally, we have learnt general ideas of tourism. It is interesting for us to learn the concept of multiple effects which indicates that tourism is a collection of industries. It affects other industry sectors, such as public transportation, food service, lodging, entertainment and recreation. Tourism produces secondary impacts on businesses that are affected indirectly as well. Since we just connect the idea in the economic aspect, so in order to understand how does it relate to the hospitality situation, we have picked this topic for our first wiki assignment.

Hospitality and Tourism Industry will never be perishable; in other words, they keep going to popular in the recent years.

References

Bricker, K. (n.d.) Trends and issues for ecotourism & sustainable tourism. Retrieved 7 February 2017, from http://goo.gl/OSqssl

Burkhard, S. (2016). 7 travel trends for 2017 that will drive the global tourism industry. Trekksoft.com. Retrieved 7 February 2017, from https://www.trekksoft.com/en/blog/7-travel-trends-for-2017-that-will-drive-the-global-tourism-industry

Burkhard, S., Kow, N., & Fuggle, L. (2016). Travel Trend Report 2017. Retrieved 7 February 2017, from http://goo.gl/v3xcEN

Hancock, T. (2017). Chinese tourism to South Korea booms despite missile shield spat. Retrieved 7 February 2017, from https://www.ft.com/content/4238e354-d3dc-11e6-9341-7393bb2e1b51

How government can boost the local economic impacts of tourism.(n.d.). Tourismplanningprofessionals.com. Retrieved 7 February 2017, from http://tourismplanningprofessionals.com/?p=393

Kaushambi,. (2012). 5 things Government needs do to promote the Tourism Industry in India. Trak.in. Retrieved 7 February 2017, from http://trak.in/tags/business/2012/02/21/tourism-industry-promotion-in-india/

Kmet, M. (2014). Going it Alone: Solo Travel is Growing. Travelmarketreport.com. Retrieved 7 February 2017, from http://www.travelmarketreport.com/articles/Going-it-Alone-Solo-Travel-is-Growing

Stynes, D. (n.d.). Economic Impacts of Tourism. Retrieved 7 February 2017, from https://msu.edu/course/prr/840/econimpact/pdf/ecimpvol1.pdf

Tourism Multiplier Effect. (n.d.). Geographyfieldwork.com. Retrieved 7 February 2017, from http://geographyfieldwork.com/TouristMultiplier.htm

旅游乘數. (n.d.). Wiki.mbalib.com. Retrieved 7 February 2017, from http://wiki.mbalib.com/zh-tw/%E6%97%85%E6%B8%B8%E4%B9%98%E6%95%B0

旅遊業「乘數效應」待激活. (2016). Kknews.cc. Retrieved 7 February 2017, from https://kknews.cc/zh-hk/agriculture/xqgxnq.html

 

 

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