What is Tourism?

The tourism industry is often cited as the largest industry in the world, contributing 10 percent of the world’s GDP. According to the United Nations World Tourism Organization (UNWTO), international tourism in 2023 reached 88% of pre-pandemic levels, with an estimated 1.3 billion international arrivals.^[1]  Tourism is also considered an export and is unique in that the consumers come to the product where it is consumed on-site.

Tourism is travel with a purpose.  There are a number of ways tourism can be defined. The United Nations World Tourism Organization (UNWTO) embarked on a project from 2005 to 2007 to create a common glossary of terms for tourism. It defines tourism as follows:

A social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes. These people are called visitors (which may be either tourists or excursionists; residents or non-residents) and tourism has to do with their activities, some of which imply tourism expenditure. ^[2]

In other words, tourism is the movement of people for a number of purposes (whether business or pleasure). Later in this chapter, we’ll look at different forms of tourism, including cultural and country-specific tourism, culinary tourism, adventure tourism, eco-tourism, among others.

It is important to understand the various groups and constituencies involved in tourism. Of course it includes the tourist, but also the vast array of businesses providing goods and services for the tourist, the government and political structure of a destination, and the local residents of the destination community itself. Each of these components are necessary parts of a successful tourism destination and operate within private and public sectors, the built environment, and the natural environment. All these come together to create the processes, activities, and outcomes of tourism.

If it all seems a little overwhelming, it might be helpful to break tourism down into broad industry groups, many of which will be covered in more detail throughout this book:

• Food and Beverage Services
• Convention & Event Management
• Recreation and Entertainment
• Gaming Entertainment
• Cruising
• Managed Services
• Travel Services
• Private Clubs
• Transportation

Tourism, Travel, and Hospitality: What are the Differences?

It is common to confuse the terms tourism, travel, and hospitality or to define them as the same thing. While tourism is the all-encompassing umbrella term for the activities and industry that create the tourist experience, the UNWTO defines travel as the activity of moving between different geographic locations for any purpose – getting from one place to another. People typically travel for business, leisure, and recreation.

On the other hand, hospitality refers to the friendly and generous reception and entertainment of guests, visitors, or strangers. It involves creating a welcoming and comfortable environment, often characterized by acts of kindness, service, and support. It is a fundamental aspect of social interaction and community building, emphasizing the importance of treating others with warmth and respect.

In the context of the hospitality and tourism industry, hospitality refers to the comprehensive service and experience provided to guests and customers within sectors such as lodging, food and beverage, event planning, travel, and tourism. It encompasses a wide range of businesses including hotels, restaurants, resorts, and cruise lines, where the primary focus is on delivering excellent customer service, ensuring guest satisfaction, and creating a welcoming and enjoyable environment. The hospitality and tourism industry aims to meet and exceed the needs and expectations of guests, often through personalized service, high-quality amenities, and attention to detail, to foster positive and memorable experiences.

A few more definitions: Tourist, Excursionist, Traveler, and Visitor

Tourist:  A tourist is a person who travels to and stays in places outside their usual environment for leisure, business, or other purposes for more than 24 hours but usually less than a year. Tourists often engage in activities such as sightseeing, visiting attractions, and experiencing the local culture for the purpose of enjoyment or exploration. We can breakdown the definition of tourist even further by noting that tourists can be:

1. Domestic: residents of a given country traveling only within that country. For example, a New York resident visiting Disney World in Orlando, FL is a domestic tourist.
2. Inbound: non-residents traveling in a given country. German tourists visiting New York’s Hudson Valley are considered inbound tourists to the US.
3. Outbound: residents of one country traveling in another country. US citizens vacationing in Paris are outbound tourists.

Excursionist: An excursionist, on the other hand, is someone who travels to a destination and returns to their point of origin on the same day.  They are also known as a day-trippers and typically engage in short-term activities such as visiting a park, attending a concert, or going on a day tour. If you’ve ever taken a Caribbean cruise, you probably signed for an excursion while the ship was docked at one of the ports on the cruise itinerary. You might also be familiar with excursionists who come up to the Hudson Valley from New York City, Long Island and the surrounding areas to experience our beautiful fall foliage, apple orchards, and wineries during the fall.

Traveler: A traveler is a broad term encompassing anyone who moves from one place to another, regardless of the duration, purpose, or distance of the trip. This can include tourists, excursionists, business travelers, and individuals traveling for other reasons such as education or migration. The term does not imply any specific type of travel activity or duration.

Visitor: A visitor is another broad term for tourists, excursionists, and travelers.

Benefits and Costs of Tourism

Tourism has many benefits, but its impacts can be grouped into three main categories: economic, social, and environmental. These impacts are analyzed using data gathered by businesses, governments, and industry organizations. Some impacts gain more attention than others. It is also important to recognize that different groups and constituencies are impacted differently.

Economic Impact

Tourism is one of the world’s leading industries, making it a significant driver of economic growth and development. According to the World Travel & Tourism Council, travel & tourism accounted for 10.5% of all jobs (334 million) in 2019.^[3] Here in the US, the travel and tourism industry directly employs 8 million Americans and supports more than 15 million jobs – nearly a quarter of all US jobs!^[4]

In addition to jobs, the tourism industry benefits local economies through a concept called the multiplier effect. The multiplier effect in tourism refers to the way that spending by tourists circulates through the local economy and generates additional economic activity. When tourists spend money, that expenditure creates a ripple effect, leading to increased income and further spending within the community.

Here are some examples of the multiplier effect and the economic impact of tourism:

1. Job Creation: Tourism generates employment opportunities in various sectors such as hotels, restaurants, transportation services, tour companies, and attractions. This includes both direct jobs (e.g., hotel staff, tour guides) and indirect jobs (e.g., suppliers, maintenance services).
2. Income Generation: Tourism brings income to local businesses and communities. Tourists spend money on accommodations, dining, entertainment, and souvenirs, which boosts the local economy. This spending supports businesses and contributes to the income of residents.
3. Infrastructure Development: The need to accommodate tourists often leads to improvements in infrastructure such as roads, airports, public transportation, and recreational facilities. These improvements can benefit both tourists and local residents.
4. Foreign Exchange Earnings: For many countries, especially developing ones, tourism is a major source of foreign exchange earnings. International tourists bring foreign currency into the country, which helps balance the national economy and can be used to import goods and services.
5. Cultural Exchange and Preservation: Tourism promotes cultural exchange and understanding. It also incentivizes the preservation of cultural heritage and natural sites, as these become attractions that draw visitors.

Here is a short video demonstrating the multiplier effect and the positive economic impact of tourism:

However, there are also negative impacts. Property values may increase to the point of unaffordability for local residents, and the tourism industry’s seasonality may create a feast-or-famine economy. As with any economy, if too many resources are focused on just one industry, communities may be vulnerable to any unexpected economic, social, or environmental changes. One example is the New Jersey shore after the devastation of Hurricane Sandy in 2012. The tourism industry was severely impacted, leaving no economic fallback for local residents.

Social Impacts of Tourism

In addition to the economic benefits of tourism development, positive social impacts include an increase in amenities (e.g., parks, recreation facilities), investment in arts, culture, heritage and tradition, celebration of indigenous communities, and community pride. Tourism also has the potential to break down language, socio-cultural, religious, and political barriers. When developed conscientiously, tourism can, and does, contribute to a positive quality of life for residents and promotes a positive image of the destination.

However, as identified by the United Nations Environment Programme, negative social impacts of tourism can include: change or loss of indigenous identity and values; culture clashes; changes in family structure; conflict within the community for the tourism dollar; and ethical issues, including an increase in sex tourism, crime, gambling, and/or the exploitation of child workers.^[5]

Environmental Impacts of Tourism

Tourism relies on and greatly impacts the natural environment in which it operates. In some destinations, there is a great appreciation of the environmental resources as the source of the tourism industry, and as such, there are environmental protection policies and plans in place. Tourism has helped to save many delicate ecosystems and their flora and fauna. Preservation of these important resources benefits not only tourists but also the local residents.

Even though many areas of the world are conserved in the form of parks and protected areas, tourism development can still have severe negative economic impacts. According to The United Nations Environment Programme, these can include the depletion of natural resources (water, forests, etc.), pollution (air pollution, noise, sewage, waste, and littering), and physical impacts (construction activities, marina development, trampling, loss of biodiversity, and spread of disease).^[6]

The environmental impacts of tourism can reach beyond local areas and have an effect on the global ecosystem. One example is increased air travel, which is often identified as a major contributor to climate change.

Whether positive or negative, tourism is a force for change around the world, and the industry is transforming at a staggering rate. Before discussing the major tourism sectors, let’s first examine tourism’s history and evolution.

Origins of Tourism

The tourism industry, from its beginnings to the present, owes its development to individuals’ ability to travel safely and their desire for different experiences. The industry’s dependence on these two factors has created its growth and development in certain periods of time and led to its stagnation and decline.

The origins of the tourism industry are difficult to determine.  Most often, we look to ancient Greece and Rome as the first recording of travel but it is more likely that travel in the ancient world was more common than our assumptions.

The inns established during Roman times were located along Roman roads between 16 and 19 miles apart or a day’s journey.  Generally, there would be an inn or Mansiones for individuals in the ruling class and on official business.  More common folk would stay in a Cauponae,  a type of inn and tavern that offered beds, hot meals, wine, and sometimes gambling.

With the extensive network of roads in the Roman Empire, travel was commonplace.  These roads were well-designed and could accommodate carriages and horses.  However, travel was more for the purpose of trade, military, or official duties. Travel for leisure and recreation has little reference for us to study.

After the fall of the Roman Empire, travel became limited.  A period known as the Dark Ages would see history enter into a period of regional development of city-states that were relatively isolated.  Unless an individual wanted to take a religious pilgrimage, there was no need to travel beyond one’s immediate home and region.

The Renaissance would spark the human experience in dramatic ways impacting art, science, and business enterprises.  In turn, travel would become more common throughout Europe and would lead to a resurgence of human interest to travel away from their home.

Tourism’s Modern Era

The Modern Era would begin in the mid-seventeenth century when young nobility and the wealthy would go on a tour through Europe.  Generally, these sojourns, known as Grand Tours, provided wealthy travelers with an educational experience of the roots of Western Civilization.

The Grand Tour fell out of fashion, as the known world at that time expanded with European colonies being established around the world.  As new and distant worlds were being discovered the development of rail and steam systems of transportation came into common use opening travel to a mass market.

The purpose of travel during these times was not generally for the leisure activities we equate with today’s industry but for relocation away from tyrannical systems of governments and religious persecution to more open societies.

As people became more comfortable with travel, the concept of travel for leisure and recreation became more attractive.  At first, the leisure experiences were generally located at hot springs where visitors could refresh in the warm waters of a natural spring.

Eventually, people became comfortable visiting distant relatives and enjoying other natural vistas and pristine waters. These traveling experiences were the forerunners of today’s modern tourism industry.

Major Tourism Sectors

Given the sheer size of the tourism industry, it can be helpful to break it down into broad industry groups or sectors:

1. Lodging
2. Cruise Lines
3. Gaming Entertainment
4. Food and Beverage Services
5. Meetings & Events
6. Attractions, Recreation and Entertainment
7. Travel Services
8. Transportation

It is typical for the entire tourist experience to involve more than one sector.  Consider three general travel phases: pre-departure, during travel, and post-departure. During pre-departure, tourists use the travel services and transportation sectors. During travel, tourists use the travel services, accommodations, food and beverage, recreation and entertainment, and transportation sectors.  Finally, in the post-departure phase, tourists use the transportation sector.

Lodging

The lodging industry encompasses businesses that provide overnight accommodation to travelers and tourists. This sector includes a variety of establishments such as hotels, motels, resorts, bed and breakfasts (B&Bs), hostels, and vacation rentals. In addition to providing travelers with a comfortable place to stay, lodging often provides many services and amenities. These can include guest services such as housekeeping, room service, concierge, shuttle busses, dining options, meeting and event spaces, and leisure/recreation spaces such as fitness centers, pools, and spas.

We’ll cover lodging more in-depth in Chapter 3; but for now, here is an overview of some common types of lodging:

Cruise Lines

One of the most expansive tourism segments is the Cruising industry.  From inland riverboat cruises in Europe and North America to the island-hopping offerings in the Mediterranean and Caribbean, the cruise industry has become a mega-tourism offering.

Tourists who want to travel comfortably, visit a variety of locations, and not have to change sleeping accommodations have fueled the exponential growth of the cruise industry.  The industry has expanded its market segments beyond individuals with higher incomes to provide cruises that attract the mass-market segment.

The rapid expansion of cruise line offerings is the result of ships operating under foreign jurisdictions to avoid taxation, restrictions on casino gaming, and compliance with labor laws required by ships flagged in the United States.  Consequently, the majority of cruise ship employees are recruited from developing countries.

Gaming Entertainment

Gaming is a tourism option with casino gambling being offered as the core or center experience surrounded by a variety of ancillary or supporting products—food, beverage, shopping, and other amusements.

This sector is unique in the hospitality and tourism industry because individual properties often offers guests a total experience within their facility – much like an all-inclusive resort or destination resort. Gaming is legal in all but two US states, but the two most popular destinations are Las Vegas, NV and Atlantic City, NJ.

Food and Beverage Services

The food and beverage industry includes all businesses that prepare, serve, and sell food and drinks to customers. This sector is a critical component of the hospitality and tourism industry, providing quality food and drinks to enhance tourists’ overall travel experience and satisfaction.

Meetings & Events

Meetings and events are also a significant driver of tourism and include a wide range of gatherings such as conferences, conventions, trade shows, corporate meetings, exhibitions, and social events like weddings and festivals. A key feature of the sector is its reliance on meticulous planning and coordination. Event planners and managers work closely with venues, caterers, audiovisual providers, and other vendors to ensure the seamless execution of events. This involves everything from booking venues and arranging accommodations to coordinating transportation and managing on-site logistics. The goal is to create memorable and successful events that meet the specific needs of their clients, whether they are businesses, organizations, or individuals.

As a result, meetings and events drive significant economic activity, attracting large numbers of visitors who require accommodations, dining, and other services, thereby benefiting local economies.

Attractions, Recreation and Entertainment

At the beginning of this chapter, we defined tourism as the movement of people to countries or places outside their usual environment for personal or business/professional purposes. Most non-business tourism involves people engaging in activities such as sightseeing, visiting natural, cultural, historical, and recreational attractions, sporting and entertainment venues, participating in leisure activities, and experiencing the local culture.  These activities connect us with the past, introduce us to diverse cultures, and deepen our understanding of the world we inhabit.

Travel Services

Travel services are another important element of the tourism industry because they support industry development and the delivery of guest experiences. This area comprises various suppliers, tourism products, destination marketing organizations, tour operators, and travel agents, among many others.

Before the internet, planning a trip, reserving a hotel, or booking a flight required a phone call or an in-person visit to a travel agent or reservations agent. While those options still exist, the majority of us are going online. According to 2022 data, 68% of all travel and tourism sales were online, which is expected to grow to 73% by 2026.^[7]

In addition to booking directly with a hotel or airline, online travel agents have emerged and have revolutionized the travel industry by making it easier, more convenient, and more cost-effective for travelers to plan and book their trips. Online Travel Agents (OTAs) are web-based platforms that provide various travel services, including booking flights, hotels, car rentals, vacation packages, and other travel-related activities. Examples of well-known OTAs include Expedia, Booking.com, Airbnb, and TripAdvisor. OTAs have significantly transformed how travelers plan, book, and experience their trips.

Transportation

Transportation is vital to the success of the hospitality and tourism industry. Simply put, if we cannot move people from place to place, we do not have an industry.  Effective and efficient transportation systems enhance the overall travel experience and can significantly influence tourists’ decisions and satisfaction. Air transportation is essential for long-distance and international travel, trains offer comfort and scenic journeys, autos provide flexibility and independence, and buses offer affordable and widespread connectivity. Understanding the strengths and challenges of each mode helps in planning efficient and enjoyable travel experiences.

Transportation evolution is by no means slowing down. The rapid expansion of the airline industry provides access to many destinations in developing countries, and the competition of low-fare airlines has opened up tourism attractions to individuals who live only within an hour or two of a destination.  These travel expansions are not without consequences and have impacted the infrastructure of transportation hubs such as airports and rail stations, creating congested freeways and straining related service providers, such as taxis and bus lines.

Key Tourism Organizations

There are many organizations that promote tourism on the local, regional, national and international levels.

The premier international agency for tourism is the United Nations World Tourism Organization (UNWTO).  The mission of this organization is to promote tourism as a driver of economic growth and environmental sustainability. UNWTO includes 158 countries and over 500 affiliate organizations that seek to grow tourism products throughout the world.  Tourism is seen as a prime vehicle for the peoples of the world to interact in a positive and productive manner that promotes world peace.

The United States Travel and Tourism Office advocates for tourism throughout the United States. They promote programs, lobby Congress, and serve as a repository of facts and information on the industry.

Regional promoters for tourism are generally funded by local governments that collect the hotel or occupancy tax levied on hotel guests.  This hotel tax, sometimes referred to as a bed tax, is apportioned with the majority of the funds going into the local general fund and a smaller portion being used to support tourism programs such as convention and visitor bureaus.

In addition to organizations that promote tourism, there are also number of industry associations such as the American Hotel & Lodging Association, International Air Transport Association, Cruise Lines International Association, United States Tour Operators Association, the International Council on Hotel, Restaurant and Institutional Education…and MANY more! Together these associations work together by pooling resources, sharing knowledge, and coordinating marketing efforts to develop and implement strategies that highlight destinations, improve tourism infrastructure and workforce development opportunities, and enhance visitor experiences.

SPOTLIGHT ON:  Dutchess Tourism

Dutchess Tourism, Inc. (DTI) is the officially designated destination marketing organization of Dutchess County, New York. It works to bring tourism dollars to area businesses and our community by marketing and promoting the assets of Dutchess to the nation and the world. DTI’s mission is to drive visitation to Dutchess County to generate the maximum impact through hotel stays and visitor spending for the benefit of our community.

Thanks to the great work of the DTI team, tourism in Dutchess County generates $706 million in visitor spending and contributes more than $88 million in local and state taxes. ^[8]

Visit the Dutchess Tourism website to learn more about their work and the exciting things to do in our county.

Conclusion

As you can now see, the hospitality and tourism industry is a multifaceted one encompassing lodging, food and beverage, transportation, attractions, leisure, and entertainment. Each component plays a crucial role in enhancing the overall travel experience, from providing comfortable accommodations and diverse dining options to ensuring efficient transportation and offering engaging activities. Additionally, tourism is a major economic driver of economic growth and cultural exchange. Together, these elements create a dynamic and interconnected industry that continues to evolve and adapt to the changing needs and preferences of travelers worldwide.