SECTION 2
THE BUSINESS OF TOURISM
World Tourism Overview
Globally an ever increasing opening up of destination and investment in tourism development has turned modern tourism into a key driver for socio economic progress through the creation of jobs and enterprises, infrastructure development and export earnings.
Globally as an export category, tourism ranks fourth after fuel, chemicals and automotive products. For many developing countries tourism is one of the main sources of foreign exchange income and is the number one export category, creating much needed employment and opportunities for development.
Over the past six decades, tourism has experienced continued expansion and diversification to become one the world’s fastest growing economic sectors. By 2020 international arrivals are expected to reach 1.8 billion.
Source: UNWTO tourism highlights 2010 edition.
Recent
International tourist arrivals (overnight visitors) grew by 4% in 2012, topping the 1 billion mark globally for the first time in history. Despite continued economic volatility around the globe, demand for international tourism held up well throughout 2012.
Canadian Tourism Industry Overview
Role of Government in Tourism
Tourism is a shared responsibility between three levels of government. Key government of Canada roles include: Policy development, international marketing, research, industry development, national parks, national historic sites, access and transportation.
Canadian Tourism Commission (federal crown corporation) markets Canada internationally, conducts market research, and carries out product and industry development activities.
Highlights
- Tourism is an important economic driver in every region of Canada
- Over 169,000 tourism businesses in Canada (87% are SMEs – less than 20 employees) 2007 figure.
- Total tourism spending of $74.7 billion in 2008, up 1.9% from 2007. Total spending has been climbing and has been driven by domestic tourism growth.
- Generated $ 20.8 billion in government revenues in 2008, an increase of 5.6% from 2007.
- In 2007/2008, the government of Canada invested $540 million in projects, programs, and activities that benefit the tourism sector.
- Canadians accounted for 79% of total tourism spending in Canada in 2008 (59.1 billion out of 74.7 billion)
The business of tourism falls within the service sector. The services provided by outfitters may consist of one or more of the following categories:
| Accommodations: resorts, lodges, cabins, campgrounds |
Food and Beverage: restaurants, bars, lounges, American plan |
| Transportation: rental water craft, fly-in service rental ATV’s, shuttle services hiking, golf, camping etc. |
Adventure Tourism and Recreation: the activities which drive our industry: hunting and fishing, canoeing, kayaking, cutural, heritage and other experiential activities |
| Attractions: parks, interpretive centres, Native tourism, museums |
Tourism Services: trade associations (NOTO), advertising, travel information centres |
To be successful in the tourism business, whether you operate Disney World or a remote wilderness lodge, you must put the needs of the tourist first. Do what you do best, and leave positive memories with your customers.
What does a Customer Want?
Everything begins with the customer. Meeting the customer’s needs will ensure that your operation remains viable. So what does a customer want?
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A quality experience
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A Northern experience based on the natural and cultural assets of Ontario
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Outdoor and wilderness opportunities
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A customer-focused experience (trained staff)
In return for providing for the needs of the customer you receive:
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Satisfied customers
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Repeat customers
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Word of mouth marketing
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The obvious – a decent way of life!
The community in which you live must also provide a welcoming experience. Tourism supports the economy of many communities in Ontario but it is not recognized for its important economic, social and cultural contributions.
Related Content
Nature and Outdoor Tourism - An Industry Vision for the Future
References:
Ministry of Tourism
http://www.mtc.gov.on.ca
