FUTURE WORLD TOURISM AND HOSPITALITY ISSUES

Learning Outcomes:

1. discuss the importance of safety and security in tourism and hospitality;

2. describe the impact of the world's economy on tourism and hospitality;

3. explain the responsible management of sustainable tourism;

4. discuss the significance of tourism policy and strategic planning;

5. describe the use of e-commerce tools in tourism and hospitality

6. explain the importance of tourism and hospitality education and training;

7. describe the emerging tourism and hospitality markets;

8. get acquainted with the quality tourism and hospitality products and services;

9. explain the impact of partnerships and hospitality;

10. discuss the impact of health issues on tourism and hospitality;

11. explain the effects of natural disasters on tourism and hospitality; and

12. analyze the impact of climate change on tourism and hospitality.

1. 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 (Edge", 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.

Safety and security, particularly from crime and terrorism, have been very important

issues in the tourism and hospitality industry for many decades. 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 in 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 U.S. 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 to 2006, there have been 264

terrorists' attacks, which targeted tourism and 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 to 2006.

Crimes against tourists such as robbery, murder, and kidnapping are also important

concerns for destination planners. In several Places, statistics regarding a 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 the 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

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. These opportunities are the implementing strategies which increase the safety of

the area. Destinations that 'can counter-balance the force terrorism are those destinations
where tourism and hospitality will continue to prosper.

2.The Impact or the World's Economy on Tourism and Hospitality

The world economy has a major impact on the future of international travel. With a

flourishing world economy, more people will 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

bring out economic well-being, social development, and mutual understanding. If other

regional organization such as the Asia-Pacific and Development Economic(APEC), the

Organizations for Economic Cooperation Cooperation and others (OECD), and others

will place tourism and hospitality as a high priority, the economies of many countries

will be strengthened.

3. 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. Sustainable tourism

has been a major concern for destination planning as well as regional and national

policy-making in the last decade. In the last three years, there have been more books

written about sustainable tourism than there were 25 years ago. There are several

conferences on Sustainable tourism held across the globe every year. These efforts will

continue and we can expect new approaches to planning and policy changes in the d of

sustainable tourism (Edgell, 2008).

4. Tourism Policy and Strategic Planning

Tourism policy and strategic planning is the, fourth major world tourism and

hospitality issue. The sustainable benefits of tourism and hospitality for local munities

will continue to grow in importance. 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 re development of tourism."

Developing new tourism and hospitality projects, maintaining present

destinations, and improving travel-related facilities and services require comprehensive

policies and detailed plans that combine local needs, market competitiveness, and

tourism and hospitality sustainability. Destinations, sites, and countries that formulate

policies and implement detailed strategic plans will be able to sustain their tourism and

hospitality products in the future. When the policies land plans include all aspects of

tourism and hospitality and promote the concept of cooperation and competition, the

opportunities for future success are greatly intensified.

5. 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, destination

does not have a good website, it will miss tourism and hospitality traffic. A positive effect

in developing destination websites is that developers can find good websites that are

similar to their destinations and copy the best features.

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. Several e-commerce tools equip tourism and hospitality

for a high-tech 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.

Since a large part of tourism and hospitality is marketing, tourism and hospitality

promoters who are technically knowledgeable about interactive marketing will have

competitive advantage over less-skilled competitors. The emerging e-commerce tools are

web blogs, podcasts, and internet marketing.

6. 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. 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. More than 50 visiting professors from different countries teach in the program.

Many initiatives and changes are already taking place (Edgell, 2008) in tourism

and hospitality education and training. 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). The group holds annual international tourism and hospitality

research conferences in various locations worldwide. In these conferences. sustainable

tourism topics are discussed; and curriculum modules are developed to be used in

tourism courses and programs around the world. 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." This can only happen with the

continuous reduction of barriers to the flow of international tourism and hospitality

education and training. Today's international students Will be leaders of their countries

tomorrow. All Will leave their host countries having contributed to and gained

intercultural understanding and appreciation (WTTC, 1994).

At present, there are 234 million international jobs created through the provision

of travel and tourism products and services. Hence, a highly educated workforce is

needed due to the continued growth and success of the global tourism and hospitality

industry. Marriott International recently announced a major expansion in the global

marketplace with the addition of 30,000 new hotel rooms in India and China, together

with tens of thousands of rooms added through acquisitions the US and Canada portfolio.

China was expected to lead the world in tourism and hospitality growth through 2016.

Marriott International has currently 30 hotels in China. 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.

7. 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 fastestgrowing

regional market, surpassing the Americas (Edge", 2008). The Americas Will Still

be strong, insofar as international tourist receipts are concerned, largely due to the

combined influences of the, United States, Canada, and Mexico. In terms of major

generating and receiving countries, the United States and much of Europe will duce

millions of tourists every year (Edgell, 2008).

The United Arab Emirates (UAE) will be an emerging t6urism and hospitality

market in the future. In the past, this small country has been economically dependent on

its petroleum industry, The UAE launched the first major indoor ski slope in 2001 in

Dubai. This made UAE a global tourism destination. The UAE 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. Gabon's leaders realized that their

economic future cannot depend solely on oil. So, they have made a policy decision to

develop ecotourism as an alternative to the petroleum industry their plan is that of the

country will become national parks with emphasis on outdoor-related tourism (Edge",

2008).

Market South in the America future. is a South continent America that has could

tremendously emerge as potential a tourism for and tourism hospitality and hospitality

development. 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).

8. 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. This situation is shown in travelers more frequently driving to

destinations they formerly flew to visit (Edgell, 2008).

In the future, the number and variety of tourism and hospitality products Will

change. Adventure travel (jungle tours, safaris, trekking, underwater exploration) to

space travel is being experienced by adventure travelers. There will be no shortage of

activities for the active travelers (Edge", 2008). India, for example, realized that

healthcare is the growing global industry. Hence, it has developed hotel-style healthcare

centers in which the family of the patient is able to stay in beautiful surroundings and

encouraged to take part in tourism and hospitality-related activities.

Tourists look for a clean environment, more nature-based tourism, and cultural

tourism. Tomorrow's travelers will be better informed than today's travelers with regard

to tourism destinations because e-commerce tools are used more effectively in the planning of

travel. 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 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.

IIPT Credo of peaceful Traveler ©

Grateful for the opportunity to travel and experience the world because peace begins

with the individual, I affirm my personal responsibility and commitment to:

Journey with an open mind and a gentle heart;

Accept with grace and gratitude the diversity I encounter; Revere and protect the

natural environment which sustains all life',

Appreciate all cultures I discover;

Respect and thank my hosts for their welcome;

Offer my hand in friendship to everyone I meet;

Support travel services that share these views and act upon then; and

By my' spirit, words, and actions, encourage others to travel the world in peace.

Source: International Institute for Peace Through Tourism

Figure 6. The IIPT Credo of the peaceful Traveler

Source: Edgell, David, Maria Allen, Ginger smith, and Jason Swanson. Tourism

policy and

Planning. Amsterdam: Butterworth-Heinemann, 2008.

9. Partnerships and Strategic Alliances in Tourism and Hospitality

The ninth major issue is partnerships and strategic alliances in tourism 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. Other

partnerships are introducing coopetition, the use of cooperation and competition in which

the available opportunities are unlimited.

A recognized form of coopetition is the rewarding of frequent travelers with points

7. which can be used with car rental companies, hotels, airlines, and other components of

the tourism and hospitality industry. Hotels that have strategic alliances with certain

airlines will give the visitors points for room nights spent at a hotel which accumulate and

are redeemable for free airline tickets or upgrades or for use in booking future hotel

rooms.

Tourism and hospitality partnerships are a form of cooperation to facilitate

competitive, and at the same time, mutual interests. They occur in the local, regional,

national, and international levels and can be a combination of private and public sectors

establishments. Two important words in partnerships are responsibility and collaboration.

It is through connectivity that successful partnerships are formed.

Tourism strategic alliances are formed when the different sectors of the tourism

and hospitality industry are connected by a common bond such as a market opportunity

or threat to market stability like war or a terrorism event, and when they recognize the

need for joining the alliance for their mutual benefit. Strategic alliances, just like tourism

and hospitality partnerships, can occur on many levels.

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. In short,
partnerships and alliances in the tourism and hospitality industry can help in the

establishment of alternative companies and service providers. 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.

10. 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 AIDS, SARS, and foot and mouth disease. AIDS was originally brought to

the United States and Canada by a flight attendant Who contracted the disease in Africa.

SARS spread rapidly throughout Asia and Canada. The foot and mouth disease spread

from the United Kingdom to continental Europe. Due to the SARS scare, the hotel

occupancy rate in Hong Kong went down from 82% to 5%. After outbreak of and the

subsequent travel advisories from the World Health organization (WHO), tourist arrivals

in China, Hong Kong, Vietnam, and Singapore decreased. 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. Tourism and hospitality organizations must take
leading roles in the development and support of tourism and hospitality health.

11. 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 weatheraffected

locations. In addition, delays and groundings cause airplanes to be misallocated

for the start of the next round of flights.

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. New Orleans and Phuket slowly recovered from the disaster they

have experienced. 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. Safety concerns include clean drinking water and the physical safety of

tourists. Tourist organizations need to review contingency plans for workers. Policy

formulation needs to address the following: provide the immediate needs of the industry

and guests; long-term recovery and rebuilding: and lastly, prevention and impact

reduction.

12. 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. Environmental impacts will emerge—from fossil fuel power and oil generation that
support various forms of transportation—from accompanying greenhouse gas production

(Edgell, 2008).

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.