CHAPTER 8

FUTURE WORLD TOURISM AND

HOSPITALITY ISSUES
OBJECTIVES

• importance of safety and security in tourism and

hospitality:
• describe the impact of the world's economy on tourism and
hospitality:
• explain the responsible management of sustainable tourism;
OBJECTIVES:

• discuss the significance of tourism policy and strategic

planning;
• describe the use of e-commerce tools in tourism and
hospitality:
• explain the importance of tourism and hospitality education
and training:
• describe the emerging tourism and hospitality markets;
OBJECTIVES

• get acquainted with the quality tourism and

hospitality products and services;
• explain the impact of partnerships and strategic
alliances on tourism and hospitality;
OBJECTIVES:

• discuss the impact of health issues on tourism and hospitality;

• explain the effects of natural disasters on tourism and
hospitality; and
• analyze the impact of climate change on tourism and
hospitality.
• This chapter introduces selected major tourism
and hospitality issues that are significant to the
future of a vibrant tourism and hospitality
industry.
• Looking toward the future requires imagination
and foresight.
• According to Mark Twain, the American
writer and humorist, "Prophecy is very
difficult especially with regards to the
future. The travel world of tomorrow will
be different from what we know today and
experienced yesterday."
SAFETY AND SECURITY IN TOURISM
AND HOSPITALITY
• The first issue of universal concern is the relationship of
tourism and hospitality to terrorism or, in the larger
context, to safety and security.
• Safety and security in tourism and hospitality will be the
greatest challenge for tourism policy and planning for
many years to come (Edgell, 2008).
• Much of the discussion on safety and security pertains
to terrorism.
• The terrorist attack in the United States on September
11, 2001 paved the way for the adoption of international
and national policies to counteract the impact of
terrorism.
• The result of this tragic event encouraged many
countries to act together to combat the devastating
effects of terrorism.
• Since the September 11, 2001 terrorist attack in
the United States, there has been an increased
awareness regarding the vulnerability of the
tourism and hospitality industry to the challenges
of world events.
• At present, there is an increase of terrorism that
specifically targets tourism destinations. Figure 4 shows
the terrorist attacks which targeted tourism from 1990-
2004.
• The peak of tourism activity occurred in the early 1990s.
In 1993, the US government and the private tourism and
hospitality sectors developed an action plan to help
travelers have a safer and more enjoyable travel
experience.
• Between 1990 2006, there have been 264 terrorist
attacks, which targeted tourism in 42 countries.
Egypt, Turkey, France, and Spain have the
highest number of terrorist attacks during the past
three decades.
• Figure 5 shows terrorist attacks targeting tourism
by country from 1970-2006.
• Crimes against tourists such as robbery,
murder, and kidnapping are also important
concerns for destination planners.
• In several places, statistics regarding a
victim’s status as resident visitor is not
regularly reported or collected by local
police agencies.
• However, when crimes against tourists are
featured in international media reports, the result
is often harmful to the overall image of the
destination in spite of he low level of risk and
number of actual offenses.
• In order to manage visitors' safety and security and
preserve the image of the destination, the South African
government has created a National Tourism Safety
Network composed of travel-related organizations.
• This group has organized a Tourism Safety
Communication Strategy, which distributes tourism
safety tips to visitors and handles crisis
communications and management when incidents
occur.
• The stakeholders realize that terrorism activities in
neighboring countries can have a negative impact
throughout the region or even throughout the
continent (Edgell, 2008).
• Travelers now demand security measures. Safety
and security must be included in the destination
development strategies especially in areas where
terror and danger exist.
THE FOLLOWING ARE IMPORTANT ITEMS TO BE INCLUDED IN A
DESTINATION'S SECURITY STRATEGY.
DR. PETER TARLOW, AN EXPERT ON TOURISM AND SECURITY ISSUES, PROPOSED THESE POINTS:

1. destinations and attractions must compete on

their readiness to keep visitors safe and secure;
2. destinations that provide sound security coupled
with customer service will prosper;
3. the lack of a comprehensive approach will create a false
sense of security. For example, only having gas masks
available for hotel guests may give false hopes if the hotel's
water supply is poisoned;
4. all members of the local tourism and hospitality system
should be included when developing a comprehensive
tourism and hospitality strategy;
5. media coverage of a local incident can spread the negative
public relations effects to the entire continent;
6. the safety development needs of the components of
the visitor experience, including transportation,
infrastructure, accommodations, highway rest areas,
and food sources should be assessed; and
7. establish a place for visitors to turn to, if a terrorist
attack were to occur, and openly communicate the
location and purpose of the center in advance in case of
any threats.
• International travel has increased in spite of the efforts of
terrorists and criminals to disrupt the tourist experience.
• Although terrorist attacks have threats to the Sustainability
of any destination, safety and security issues can also create
opportunities for destination planners
• Destinations that can counter-balance the force of terrorism
are those destinations where tourism and hospitality will
continue to prosper.
THE IMPACT OF THE WORLD'S ECONOMY ON
TOURISM AND HOSPITALITY

• The world economy has a major impact on the

future of international travel.
• If there is a greater distribution of a country's
wealth, more people will have the financial means
to travel.
• If there is a greater distribution of a country's wealth, more
people will have the financial means to travel.
• Related to the world economy is population growth.
• According to the US Census Bureau "World POP Clock
Projection," the present world population is more than 6.5
billion. China, India, the United States, Indonesia, and
Brazil are the five most populous countries. If the economies
of these five countries will improve, tourism and hospitality
will grow
• Research shows that tourism and hospitality is a
useful tool for economic development that can be
used to alleviate poverty.
• Developing countries recognize the important
contributions of the tourism and hospitality
industry particularly in the establishment of
small local industries; many of which employ
women.
• Table 2 shows that by 2020, the top three receiving
regions are Europe (717 million tourists), East Asia
and the Pacific (397 million), and the Americas (282
million), followed by Africa, the Middle East, and
South Asia. East Asia and the Pacific, South Asia, the
Middle East, and Africa are forecast to record growth
at over 5% a year, compared to the world average of
4.1%.
• The UNWTO strongly encouraged tourism growth to the
world's poorest countries to bring out economic well-being,
social development, and mutual understanding.
• If other regional organizations such as the Asia-Pacific
Economic Cooperation (APEC), the Organization for
Economic Cooperation and Development (OECD), and
others will place tourism and hospitality as a high priority,
the economies of many countries will be strengthened.
MANAGING SUSTAINABLE TOURISM IN
A RESPONSIBLE MANNER

• The third tourism issue is managing

sustainable tourism in a responsible
manner.
• Sustainable tourism is of utmost
importance at present and in the future.
• Measures to advocate tourism agencies, host communities,
and travelers about sustainable tourism must be continued as
the world population increases.
• Respect for our natural and built environments will be the
country's legacy for future generations.
• In the last three years, there have been more books written
about sustainable tourism than there were 25 years ago.
• These efforts will continue and we can expect new
approaches to planning and policy changes in the field of
sustainable tourism (Edgell, 2008).
TOURISM POLICY AND STRATEGIC
PLANNING
• is the fourth major world tourism and hospitality issue
• There will be greater efforts toward partnership of private
and public sectors to alleviate poverty, develop policies to
combat the negative impacts on tourism and hospitality, and
support the economic, sociocultural, and environmental
contributions of tourism and hospitality to the world.
Goeldner and Ritchie states that, "Good policy and sound
planning need to be conducted to ensure that a destination
will be both competitive and sustainable. While policies
show the big picture and plans contain the details, both deal
with the future development of tourism."
 TOURISM POLICY AND STRATEGIC PLANNING

TOURISM POLICY STRATEGIC PLANNING

• Tourism policy refers to the set of regulations, rules, • Strategic planning in tourism involves setting goals,
guidelines, and frameworks that govern the tourism identifying strategies to achieve those goals, and allocating
industry within a specific region or country. These resources to implement those strategies effectively. It
policies are designed to promote tourism, ensure the typically includes a comprehensive analysis of the tourism
sustainability of tourism activities, protect cultural and market, identification of target markets, development of
natural heritage, and maximize the economic benefits of marketing and promotional strategies, and planning for
tourism for local communities. Key aspects of tourism infrastructure and product development. Strategic planning
policy often include infrastructure development, is crucial for tourism destinations to remain competitive,
marketing and promotion, environmental protection, and attract visitors, and maximize the economic benefits of
regulations for tourism businesses. tourism while minimizing negative impacts on the
environment and local communities.
USING E-COMMERCE TOOLS IN TOURISM
AND HOSPITALITY
• The fifth world tourism and hospitality issue is the
use of e-commerce tools in tourism and hospitality.
• More than 50% of travelers in the United States use the
internet in planning their travel and vacations. This
occurrence is growing globally.
• As Internet access continues to increase in many countries,
online travel revenues will also increase.
• The number of Internet users around the world was
estimated to be 747 million in 2007, a 10% increase from
2006. The growth was due to the expanding economies of
India (33%), Russia (21%), and China (20%).
• Online travel revenues were expected to reach two billion
US dollars by 2010.
It is evident that the use of e-commerce tools for tourism
and hospitality will continue to grow in the future.
• Since tourism and hospitality is a combination of products
and services, the multimedia qualities of electronic commerce
can be applied effectively to tourism and hospitality in order
to increase the attractiveness of a destination.
TOURISM AND HOSPITALITY EDUCATION
AND TRAINING
• The sixth major tourism and hospitality issue is tourism
and hospitality education and training.
• Globalization and innovation will be the outstanding feature of
tourism and hospitality education and training in the future.
Several innovations are taking place in some universities.
• Globalization and innovation will be the outstanding
feature of tourism and hospitality education and training
in the future.
• The University of the Balearic Islands in Majorca, Spain
has a Master and PhD in Tourism and Environmental
Economics that is really unique with students coming
from several countries. It is a well-designed program
which offers several courses.
• New trends include the collaboration between tourism
agencies and educators of tourism colleges and
universities to address the changing needs of the tourism
and hospitality industry.
• A good example is the collaboration between the Business
Enterprises for Sustainable Travel (BEST) with the
Education Network (EN).
• These conferences enable the promotion and sharing of
the latest best thinking and best practices in tourism and
hospitality education in order to produce effective and
efficient tourism and hospitality
managers in the future.
• Other important current and future trends in tourism and
hospitality education and training are closely related to
globalization and political stability.
• Bremmer (2006)
states, "Openness enables change. Change is an essential
ingredient in growth and prosperity. Only the free exchange
of information, values, ideas and people can build a
sustainable global stability that enriches all who take part in
it.“
• Marriott, an undisputed world leader in quality hospitality
products and services, will invest millions of dollars in the
education and training of its newly recruited international
workforce to meet this global growth strategy.
• According to Chairman and CEO J. W. Marriott Jr.,
the lodging industry is a global business dominated
by four factors, namely, global wealth,
demographics, trade, and world-class quality
service workforce. The fourth factor, a, world-class
quality service workforce, requires a commitment to
outstanding international tourism and hospitality
education and training.
EMERGING TOURISM AND
HOSPITALITY MARKETS
• The seventh major tourism and hospitality issue
refers to emerging tourism and hospitality
markets.
• China and India are the two emerging tourism and
hospitality markets in the near future.
• These two countries account for about one-third of the
World's population.
• Each country's economy is exploding and a greater
segment of the population is anxious to travel.
• Both countries are emerging as important receiving
and generating countries for tourism and hospitality
(Edgell, 2008).
• Russia could also become a country
generating and receiving tourists in the future.
• In terms of arrivals and tourist receipts,
• Europe continues to account for one-half of
the world's tourism and hospitality market.
• Asia and the Pacific have been the fastest-
growing regional market, surpassing the
Americas (Edgell, 2008).
• The United Arab Emirates (UAE) will be an
emerging tourism and hospitality market in the
future. In the past, this small country has been
economically dependent on its petroleum
industry.
• UAE launched the first major indoor ski slope in
2001 in Dubai,
• intends to launch many new tourism and
hospitality products over the next years.
• Gabon in Africa is another emerging tourism and
hospitality market.
• Gabon is an oil-rich country turning to tourism and
hospitality.
• Their plan is that 11% of the country will become
national parks with emphasis on outdoor-related
tourism (Edgell, 2008).
• South America is a continent that could emerge as
a tourism and hospitality market in the future.
• It is still largely undeveloped and has many
opportunities for tourism and hospitality
development.
• If strong policies and plans are established for
sustainable tourism and hospitality development,
South America could emerge as an important
tourism and hospitality market (Edgell, 2008).
QUALITY TOURISM AND HOSPITALITY
PRODUCTS AND EXPERIENCES

• The eighth major tourism and hospitality issue is

quality tourism and hospitality products and
experiences.
• Tourists demand greater variety, flexibility, and quality
in their tourism and hospitality products (Edgell, 2008).
• Quality in tourism and hospitality experiences is usually
high on the tourist's list.
• Air travel remains a travel issue as far as quality is
concerned (Edgell, 2008).
• Air travel receives several complaints in terms of quality.
Air travelers experienced higher quality airline services in
the 1970s and 1980s.
• In general, they are not very happy with air travel
nowadays although air travel is less expensive at present
than it was in the 1970s and 1980s.
• In general, they are not very happy with air travel
nowadays although air travel is less expensive at present
than it was in the 1970s and 1980s.
• Tourists look for a clean environment, more nature-based
tourism, and cultural tourism.
• Thus, the future of tourism and hospitality will greatly
depend on the introduction of new quality tourism and
hospitality products and experiences.
• Destinations that offer high quality tourism and hospitality
products will receive the benefits.
• Space tourism, regarded as the century's newest tourism
product, will grow tremendously as soon as price
becomes more reasonable.
• At present, a space trip package costs $20 million.
Dennis Tito, a US businessman, became the first tourist
to reach outer space in 2001, traveling in a Russian space
shuttle to the International Space Station.
• The others were Mark Shuttleworth in 2002;
Gregory Olsen in 2005; Anousheh Ansari, the first
female space tourist in 2006; and Charles Simonyi
who paid $25 million for a two-week trip to the
International Space Station in 2007.
• In the very near future, Russia may begin to offer
trips around the moon for $100 million. So far,
Russia is the only country with an effective space
tourism policy.
• Undersea tourism is emerging as a tourism market
that will likely expand in the future. Exploring the
bottom of the ocean is not as expensive as space
tourism.
• Another new global tourism product that is
gaining popularity is volunteer vacations. In 2006,
6% of the world's population undertook a vacation
to help less fortunate people or to support a
humanitarian cause
PARTNERSHIPS AND STRATEGIC
ALLIANCES IN TOURISM AND
HOSPITALITY
• The ninth major issue is partnerships and strategic
alliances in tourism and hospitality.
• New partnerships are occurring such as the partnership between
the UNWTO and the Meeting industry on November 28, 2006 in
which the United Nations Tourism Satellite Account will measure
the global economic contribution of the meeting industry.
• A recognized form of coopetition is the rewarding of
frequent travelers with points which can be used
with car rental companies, hotels, airlines, and other
components of the tourism and hospitality industry.
• Two important words in partnerships are
responsibility and collaboration. It is through
connectivity that successful partnerships are formed.
• Through strategic alliances in tourism and hospitality, the
tourism and hospitality industry can maximize its use of
outsourcing particularly in the areas of cost effectiveness,
cost reduction, and brand loyalty.
• Outsourcing can provide information on flights, weather,
crisis management, or services that the traveler may
demand.
• Coopetition can encourage a competitive yet cooperative
relationship of new companies and well established
agencies to explore the growth and expansion of tourism
products and services.
THE IMPACTS OF HEALTH ISSUES ON
TOURISM AND HOSPITALITY
• The tenth major tourism and hospitality issue is
the impact of health issues on tourism and
hospitality.
• Most travelers avoid the areas that have high
health risks.
• Diseases spread more rapidly due to travel, particularly
through international aviation.
• Reports released by Harvard Researchers showed that the
flu virus spread more rapidly due to the international
tourism and hospitality, especially air travel.
• Fear of disease reduces travel demand.
• Other diseases that affect tourism and hospitality are
AlDS, SARS, and foot and mouth disease.
• SARS spread rapidly throughout Asia and Canada.
• Due to the SARS scare, the hotel occupancy rate in
Hong Kong went down from 82% to 5%.
• After the outbreak of SARS and the subsequent
travel advisories from the World Health
Organization (WHO), tourist arrivals in China,
Hong Kong, Vietnam, and Singapore decreased.
• The foot and mouth disease spread from the
United Kingdom to Continental Europe.
• After the outbreak of the foot and mouth
disease in Europe, the United Kingdom lost
between £2.7 and £3.2 billion due to
postponement and cancellation of trips.
• Policy makers now need to react to health crises in
their own countries. They should formulate
strategies to provide support to individual
countries and recommend restricted travel to
affected countries.
EFFECTS OF NATURAL DISASTERS ON
TOURISM AND HOSPITALITY
• The eleventh major tourism and hospitality issue is the
effects of natural disasters on tourism and hospitality.
• Natural disasters have devastating impacts on the tourism and
hospitality industry. People avoid travel to affected areas.
• Once this occurs, there is limited opportunity to use
tourism and hospitality to restart the economy or to obtain
new revenues to reinvest in the tourism and hospitality
industry and in the well-being of the local residents
(Edgell, 2008).
• Airline disruptions caused by storms result in delays and
cancellations in weather-affected locations.
• Two major storms such as Hurricane Katrina in New
Orleans, USA and the tsunami in Phuket, Thailand
caused mass disruptions in domestic and international
tourism.
• After the hurricane, the New Orleans tourism and
hospitality industry lost $5 million per day due to the
lack of tourist arrivals.
• The tsunami resulted in huge losses in tourism and
hospitality in Thailand. Tourist arrivals in Phuket went
down to 44.7% after the first four months.
• Other types of natural disasters also have lasting impacts.
Mudslides disrupt business enterprises, generate huge
cleanup costs, and destroy landscapes.
• Venezuela suffered severe mudslides in the 1990s. This
resulted in the decline of tourist arrivals by more than 25%
in 1999.
• Because of the negative impacts of natural disasters, new
public policy tools and best practices need to be developed
that respond to natural disasters.
• Travelers need transportation systems and alternative
accommodations, access to telephones and other
communication devices, and places to stay in case their
present lodging is destroyed or damaged.
CLIMATE CHANGE AND TOURISM AND
HOSPITALITY

• The twelfth major tourism and hospitality issue is

climate change and its impact on tourism and
hospitality.
• Global warming is a growing concern for travelers.
• The recently published research by the World Wildlife
Fund documents the ecological footprint of human
activities around the world, many of which are
embodied in international travel and tourism.
• Results show that the world's ecosystem is being
degraded by humans at an unsustainable rate that cause
irreversible damage to the planet as well as triggering
population declines at about 31% in land animals since
1970. freshwater creatures by 38%, and marine animals
by 27%.
• Consumption exceeds by about 25% of earth's capacity
to provide resources and absorb waste. Recent
projections by the Pew Research Center show that global
warming will cause major shifts in tourism and
hospitality with locations that have higher altitudes and
latitudes becoming the winners, while warming
countries experience declines by about 20%
(Washington Post News Service, 2006).
• Climate change can cause a ripple effect in tourism and
hospitality. Climate change will affect which certain
locations will tourists visit and at what times of the year.
This shift in travel patterns and travel periods can have an
impact on travel destinations which, in turn, affects the
environment, which in turn changes when visitors desire
to come.
• Tourism and hospitality managers need to look for
information proactively and take the lead in creating
responses to projected changes. Tourism and hospitality
industry sectors should adopt long-term policies to
protect their environments and their livelihoods. Local
tourism and hospitality managers must focus on
environmental issues to enhance the tourism and
hospitality industry.
THANK YOU!!