The state of tourism
The World Tourism Organisation has argued that the decline in tourism last year was as much a statistical product, as a reaction to 11 September.
A report produced by WTO looks back to 2000, when international tourism grew by 45 million arrivals. It argues that this was a hard act to follow, and the 0.6% drop in tourism during 2001 was inevitable, not just because of 11 September and the emerging economic downturn in western countries.
It said: “The results of 2001 would have been in line with the trend observed over the past decade had it not been for the magnitude of the increase in tourist arrivals in 2000, which was much larger than the figures obtained in previous years”.
WTO went on to summarise the characteristics of current demand, to which it said suppliers must adapt. It spells gloom for conventional destinations and two-week package holidays:
- Shorter holidays
- Customized holidays
- Demand for conventional non-hotel accommodation
- Holidays as "an experience", providing new knowledge
- More senior tourists
- Importance of sustainable development and fair trade principles
- Advent of emerging destinations
The report said that the travel industry will have to wait to feel the positive economic effects of increased tourism because people are booking cheaper, last minute holidays.
"The recovery in terms of number of trips has not been associated with a proportionate increase in revenues. Prices are playing a key role in purchase decisions. The market has maintained certain characteristics that were already observed in tourist behaviour since late last year, particularly delays in bookings and last-minute purchases".
However, the WTO concludes that in the medium-term expectations for the industry are positive. The strategies it outlines, which it observes are already underway, are alliances, mergers and acquisitions, which serve to reduce costs.
"There have been changes in business integration strategies and in management priorities, the configuration of the airline industry as well as advances and changes in its distribution systems". It also points out that GDSs are playing an increasingly important role.
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