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UNIT 1: THE TRAVEL AND TOURISM SECTOR
PART 1: EXPLORING UK TRAVEL AND TOURISM:
Travel is the movement of people betweenrelatively distant geographical locations, and can involve
travel by foot, bicycle, automobile,train, boat, airplane, or other means, with or without luggage,
and can be one way or round trip. Travel can also include relatively short stays betweensuccessive
movements.
o P1:
Tourism has become a popular global leisure activity. Tourism can be domestic or international,
and international tourism has both incoming and outgoing implications on a country's balance of
payments. Today, tourism is a major source of income for many countries, and affects the economy
of both the source and host countries, in some cases being of vital importance.
 DIFFERENT TYPES OF TOURISM:
Tourists can be divided into different categories. This can be on the basis of which types of places
they like to visit or the type of activitiesthey like to be involved in.
 INBOUND TOURISM IN UK:
The record 32.8 million overseasvisitors who came to the UK in 2013 spent a record £21.0 billion.
These figures represent a 5.6% increase in volume and 12.7% (nominal) increase in value compared
with 2012.
In 2012 the UK ranked eighth in the UNWTO international tourist arrivals league behind France,
USA, China, Spain, Italy, Turkey and Germany (down two places from sixth which the UK held in
the years to 2010, with Turkey in 2010 and Germany in 2011 over-taking the UK). The UK
accounted for 2.8% of global arrivals (down slightly from 3.0% in 2011).
In 2012 the UK retained eighthplace in the international tourism earningsleague (in recent years
the UK's highest rank was fifth in 2005 and 2006) behind the USA, Spain, France, China, Italy,
Macao and Germany according to UNWTO figures.
The UK accounted for 3.4% of international tourism receipts in 2012 (little change from 3.5% in
2011, 3.3% in 2010).
In 2013 France,Germany and the USA were the top three markets in terms of number of visits to
the UK accounting for nearly one-in-three visits. The top three markets measured in terms of
visitor spend were USA, Germany and France, accounting for one-quarter of visitor spend.
London accounts for 54% of all inbound visitor spend, the rest of England 34%, Scotland 8% and
Wales 2%.
GB DOMESTIC OVERNIGHT TOURISM:
In 2012 GB residentstook:
- 57.7 million holidays of one night or more spending £13.8 billion
- 18.9 million overnight business trips spending £4.5 billion
- 45.1 million overnight trips to friends and relatives spending£5.1 billion
Overall the number of domestic overnight trips taken in 2012 was 1% lower than in 2011, while
total spending increased by 6% in nominal terms.
 ACCOMMODATION:
In 2012, average room occupancy for all serviced accommodation throughout the UK was 66%
(up 2 percentage points from 2011) according to the UK Occupancy Survey. Average bedspace
occupancy was 50% (an increase of 2 percentage points on 2011).
According to Eurostat the number of bed spaces (that is the total number of persons who can stay)
in UK 'hotels and similar establishments' was 1,411,000 in 2011.
Furthermore, Eurostat estimate that the number of bed spaces in 'other collective accommodation
establishments' (including holiday dwellings and tourist campsites) in the UK was 1,861,000 in
2011.
In total therefore the UK has a tourist accommodation 'bed space' stock capable of sleeping around
3.272 million people.
Figures from TRI Hospitality Consulting confirm that one of the biggest changes in the UK
accommodation stock in the past two decades has been the increasing number of branded budget
hotel rooms. In 1993 there were 10,555 such rooms whereas at the end of 2010 there were
114,974.
 ATTRACTIONS:
The table to the above shows the top five attractions in terms of visitor admissions in 2012 based
on figures from the Association of Leading Visitor Attractions.
In 2009 the number of inbound visitors who visited a museum was 7.7 million, with 4.2 million
visiting an art gallery. Visiting heritage attractions is also a very popular activity for inbound
visitors with 5.8 million visiting a castle, 5 million visiting historic houses and 6.4 million visiting
religious buildings or monuments.
• TOP 10 INBOUND MARKETSIN UK:
The top ten inbound markets for the UK in terms of number of visits during 2013 accounted for two
in three visits (66%). It is noteworthy that only two long-haul markets, the USA and Australia,
appear in the top ten. Looking at spending by inbound visitors, the top ten markets account for
52% of all spending, with the USA worth over £1 billion more than the next most valuable
market, Germany. All of the top ten markets measured in terms of value are 'developed' rather
than 'emerging' source markets for international tourism.
 THE FASTEST GROWING AND DECLINING MARKETS:
The top 3 markets which have recently shown the highest absolute growth in value (on average
during the last five years) are all long haul to the UK, namely China, USA and Australia. It is
notable that the value of both the China and USA markets has grown on average by around £94m
per year 2009-13. Whilst both the USA has shown growth in recent years in terms of visits it
remains considerably smaller than in the 1990s. The 'relative' growth in value on average over the
last five years shows the rapid rise in importance of the emerging markets from Mexico and China.
The markets whichhave declined most on average across the last five years in terms of absolute
reduction and ‘relative’ decline in spending are topped by the Republic of Ireland market. The
'relative' decline figuresshow that the value of visits from Austria and Bulgaria have decreased by
5% each on average each year across the last five years.
 JOURNEY PURPOSE AND SEASONAL SPREAD:
In 2013 nearly two-in-five inbound visits to the UK were for a holiday (39%), while almost a quarter
(24%) was for business. Looking at the share of visitor nights by journey purpose it is clear that
trips to visit friendsor relatives (VFR) account for the largest share (38%), thanks to the fact that
these trips involve a longer than average length of stay.
By contrast VFR trips account for a lower share of inbound visitor spend (22%) than they do of
visits (28%), while holiday and business spending (40% and 24% respectively) are in line with their
respective share of visits (39% and 24%).
Almost four in every six holiday visits were during the traditional holiday period in 2013 (29% April
to June, 35% July to September) whilst only around one-in-six (16%) were in the first threemonths
of the year. By contrast business visits show a more even seasonal spread (23%-27%), while VFR
trips are more likely to take place in the last two quartersof the year (29%, 26%) than the January
to March (21%) period.
 MODE OF TRAVEL:
The UK enjoys excellent global connectivity, with well over 100 countries having direct air
connections to the UK in 2013. It can be seen from the pie chart that in 2013 almost three
quarters of inbound visitors reached the UK by air.
As visitors who travel by air tend to spend more per visit than those using other means of transport
the share of visitor spend accounted for by visitors who fly to the UK stood at 84% in 2013.
Visitors who do not travel by air are almost evenly split betweenthose who travel by ferry (14%) or
use the Channel Tunnel (13%).
 DISTRIBUTION BY AREA:
London is a key destination for inbound visitors to the UK. In 2013 16.8 million visitors spent time
in the capital, spending just over £11bn. This represents 54% of all inbound visitor spending.
The rest of England attracted 13.6 million inbound visitors who spent an estimated £7.1bn,
representing 34% of all inbound visitor spend. Scotland attracted 2.4 million visitors and 8% of all
visitor spending, with the equivalent figures for Wales being 0.9 million visits and 2% of visitor
spend. The 'other' category includes visits to the Channel Islands and Isle of Man, along with those
visitors whose nights in the UK were spent travelling.
 INBOUND VISITOR STATISTICS:
The latest available data from the International Passenger Survey is available below. This shows the
volume and value of visits to the UK by overseas residents for the most recent month, quarter and
year.
The survey is run by the Office for National Statistics (ONS), for publication dates and more
information please see 'About the Survey'. To learnmore about how to use pivot tables download a
brief overview.
• Nominal spending by overseasvisitors to the UK was down 19% in February 2015 against a
record £1.19 billion set in February last year. Off the back of a strong 2014, over the last
twelve months up to and including February 2015 overseas visitors spent £21.36 billion in
the UK just setting a new 12 month to February record and broadly in line with spending
levels of the previous twelve months.
• The UK welcomed 2.08 million visits in February 2015, 5% fewer than in February 2014.
With particularly solid results in 2014, over the rolling twelve months to February 2015
overseasvisits to the UK were tracking 4% higher than in the same period a year ago with
34.64 million visits and a new rolling twelve month to February record.
• Over the three months from December 2014 holiday and VFR visits posted decreases of 6%
and 5% respectively, while business visits rose 7%. All of these journey purposes, posted
positive results over the twelve months to February 2015, compared to the previous rolling
twelve months.
• Exchange rates play an important part in international tourism. Visit Britain tracks and
makes available current historical exchange rate data on our website. In recent months
sterling has strengthened against the Euro – making the UK a relatively more expensive
destinationfor visitors from euro countries, while sterling has weakened against the dollar,
resulting in the UK becoming a comparatively cheaper destination for US visitors than
previously.
• During February 2015 overseas visits to the UK from EU15 countries declined 12%
compared to February last year. On the flipside, visits from North America increased 13%
during February this year. Over the longer term all world regions included in this report
registered positive year on year growth in the twelve months to February 2015.
• Visits from other EU countries, (countries joining the EU from January 2004 onwards)
increased 19% during February 2015, setting new February and three month to February
records. Likewise, the Rest of World countries visits increase d by 7% in February 2015
compared to February last year to set a new three month to February record of 1.02 million
visits.
• The International Passenger Survey data in this report is not designed to report accurately at
a monthly level so resultsshould be treated with caution. With Februarytraditionally one of
the quieter months of the year for inbound tourism to the UK (contributing around 6% of
annual overseas UK visits) we recommend data for at least three months of the year is
needed before a picture of UK inbound tourism for 2015 will begin to emerge.
LATEST SHORT TERM DATA – FEBRUARY AND LAST THREE MONTHS
• Holiday visits were down 9% during February against the record set in February last year.
After a strong December 2014, 2.03 million holiday visits to the UK were registered in the
three months to February 2015 – 6% fewer than the same period last year.
• VFR visits to the UK in February 2015 increased 3% compared with February a year ago.
After a particularly weak December 2014 and slower January 2015, VFR visits in the 3
months to February 2015 were 5% lower compared to the three months to February 2014.
• Business visits dropped 8% compared to the record set in February 2014. Taking a longer
term view of the three months to February 2015, overseas business visits to the UK were
tracking 7% higher than in the same three months of last year, evidence of a continuing
recovery for business visits since the global financial crisis.
• EU15 visits declined 12% during February, perhaps indicative of the strong pound making
the UK relatively more expensive than it has been. In the three months since December 2014
there were 324,000 fewer overseasvisits from these countries to the UK, a decrease of 8%
compared to last year.
There was notable growth in visits to the UK from Other EU countries in February – a 19% jump on
February 2014 and not surprisingly setting a new February record. After three consecutive months
of strong double digit monthly growth Other EU visits were tracking 16% higher in the three
months to February 2015, compared to the same period last year.
• Rest of Europe visits to the UK dropped 16% compared to the record February 2014. Over
the three months December 2014 to February 2015, visits were just 3% below the same
period a year ago.
• North American visits rose 13% in February 2015, returning to 2013 levels after a dip in
2014. Over the three months to February 2015 there were 560,000 visits to the UK from
North America, 3% more than in the 3 months to February 2014.
• ‘Rest of World’ markets (outside Europe / North America) rose 7% in February 2015,
compared to February 2014. Over the rolling three month period to February 2015, visits
were 3% higher than during the three months to February a year ago.
MEDIUM TERM – LAST 12 MONTHS
• Holiday Visits: by overseas visitorsto the UK in the twelve months to February 2015 were
5% higher compared to the twelve months to February 2014. After a particularly strong
2014, there was a record setting 13.57 million holiday visits to the UK in the rolling twelve
months to February 2015.
• VFR Visits: overseasvisitors to the UK made 3% more visits to friends and relatives in the
twelve months to February 2015, than they did in the same period last year. From March
2014 there were 9.81 million visits, 3% more than the previous 12 months and just 1%
below the VFR record set in the twelve months to February 2008.
• Business Visits: increased 6% to reach 8.48 million visits in the twelve month period to
February 2015 – posting the fifth consecutive rolling 12 months to February increase.
• EU15 countries are an important inbound region to the UK including countries like France,
Germany and Republic of Ireland. In the twelve months between March 2014 and February
2015 visits from these high volume markets reached a record 19.5 million, accounting for
56% of all inbound visits to the UK during this time. Visits from other EU countries also
achieved a new rolling twelve month to February record – up 6% compared to the same time
last year.
• Rest of Europe Visits: There were 2.47 million visits to the UK from European countries
outside the EU in the twelve months to February 2015. Visitswere 9% higher than in the 12
months to February 2014 and enough to clinch a new rolling twelve month to February
record.
• North America Visits: in the twelve months to February 2015 were 5% higher compared to
the same time a year ago and the best twelve months to February since 2009. In the twelve
months since March 2014 there were 3.69 million visits to the UK from the North American
countries (USA and Canada).
• Rest of World Visits: With 5.33 million visits registered during the twelve months to
February 2015, a new rolling twelve month visit record to February was set for visits from
these markets including Asia, Middle East and Africa, up 3% compared to the previous
twelve months.
THE INTERNATIONAL PICTURE
• Many of the UK’s main competitors also reported increased visits during periods of 2014,
compared to 2013.
• UK growth for 2014 was in line with that of Spain, the USA and Turkey.
• The Netherlandsis at the top of the leader board and the only country to report double digit
percentage growth for 2014, followed by Australia and Republic of Ireland.
• Germany,Canada, Switzerland,Italy and France all reported weaker figures than the UK.
Figures relate to various periods so comparisons should be treated with caution.
INDIVIDUAL MARKET LEVEL
Using the latest available market level data, the following three chartsshow the percentage change
in visits to the UK from a number of markets over the rolling twelve months to September 2014
compared to the previous rolling twelve months to September 2013.
LONGER TERM TRENDS IN VISITS, SPEND, AND SPEND PER VISIT SINCE 2000
This chart shows the year-on-year change in headline IPS resultsbased on a ‘rolling twelve month’
basis. Presenting the data in this way enables us to spot emerging trends and helps to ‘smooth out’
erratic results for any single month.
The chart clearly illustrates the dip in inbound tourism seen post 9/11 in 2002, and subsequent
recovery in the mid-2000s. The impact of the global economic crisis can be seen in 2009 followed by
slow but reasonably steady recovery over the more recent years.
The displacement of visits during the Olympic Games in 2012 was followed by a periods of growth
in visits. Although still increasing,growth in expenditure has been at a slower rate in more recent
years.
LONGER TERM TRENDS – JOURNEY PURPOSE
By journey purpose holiday visits were far more resilient to the economic downturn in the late
2000s and have shown growth over the last couple of years. Although there was some variability
during 2012, recent trends in 2013 and into 2014 have been more positive.
Businessvisits suffered a significant downturn in 2009 following the global economic crises but are
showing more sustained recovery in the past three years.
After three years of gradual increases, trips to visit friends and relatives showed more variability
towards the end of 2012 and into 2013, but moving back into positive territory by the end of 2014.
Trips for other (miscellaneous) purposes account for a smaller number of visits and show the most
variation, for example there was a boost by Olympic participants in late summer 2012.
LONGER TERM TRENDS – WORLD REGION
This chart shows the longer termpicture since 2007 and the downward trend in visit numbers from
all regions that began in the autumn of 2008. Visits from the ‘Rest of Europe’ had the strongest
recovery growth between 2011/2012 although have shown to be more volatile over the past couple
of years.
Visits from ‘Other EU’ regions took over the reins at the top spot for visits growth, delivering the
fastest relative growth between 2013/2014.
Meanwhile, after a period of gradual recovery post GFC in 2009 visits from North America have
fluctuated more recently. Visits from the EU15 and ‘Rest of World’ regions have both hovered
around 0%, with signs of positive growth since 2013 and into 2014.
DETAILED MONTHLY TRENDS IN OVERALL VISITS AND SPEND
OUTBOUND TOURISM:
Outbound tourism is when someone goes out of their own country. it can for holidays, business,
trip etc.
 DOMESTIC TOURISM:
Domestic tourism is tourism involving residents of one country traveling only within that
country.[1]
A domestic holiday is a holiday (vacation) spent in the same country; this class may overlap
with staycation (in British English), a vacation spent in the same region.
With the resurgence of the package holiday, research carried out by United Kingdom travel
agent Thomas Cook has identified that domestic holidaysare not always a cost-effective means
of holidaying. According to their research,[2] a one-week family holiday to Devon for four can cost
in the region of £2,299, whereas an equivalent holiday to Majorca £2,036.
In the UK, the growth of domestic holidays has had a major impact on its domestic tourist
industry. Haven Holidays, one of the UK's biggest holiday park owners, in 2009 reported a 38%
rise in sales of static caravans to sale-and-leaseback investors or buyers who want a more
affordable second home.[3]
e.g. The Ernest family from Southampton going to Edinburgh
The Great Britain Tourism Survey (GBTS) is a national consumer survey measuring the volume and
value of overnight domestic tourism trips taken by residents of Great Britain.
This monthly survey covers overnight trips taken for any purpose, including holidays, business, or
visiting friends and relatives. It measuresthe volume and value of domestic overnight tourism, and
provides detailed information about trip and visitor characteristics.
Interviewingis carried out every week of the year using a face-to-face methodology. Annually, some
100,000 respondentsare contacted, and any who have returned from an overnight trip within the
past four weeks are asked to describe the details of that trip.
The survey was previously known as the United Kingdom Tourism Survey (UKTS), however from
January 2011 onwards data about trips taken by Northern Ireland residents is being collected
separately by the Northern Ireland Statistics and Research Agency (NISRA) and will no longer be
reported as part of a UK-wide survey. The UKTS has been running since 1989, though the
methodology has changed a number of times since then. The current survey methodology started in
May 2005, and comparisons with results from earlier years are difficult to make and should be
treated with caution.
Resultspresented from 2011 onwards are based only on residents of Great Britain. Comparisons
with previous years using the same geographical coverage are included in monthly and annual
deliverables issued for results from January 2010 onwards.
No changeshave been made to documents produced from 2005-2010. These consider the whole of
the UK, and cannot be directly compared with results from the new Great Britain survey.
The GBTS is an Official Statistic, and is produced in adherence withthe Code of Practice for Official
Statistics (2009). You can find out more about what this means here.
The survey is jointly sponsored by the three national tourist boards: Visit England, Visit
Scotland and Visit Wales.
ANNUAL SURVEY OFVISITSTOVISITORATTRACTIONS
o P2:
 THE TOURISM ECONOMY: CONTRIBUTING TO UK GDP ( GROSS DOMESTIC PRODUCT):
 TOURISM BENEFITING ALL OF BRITAIN:
o M1:
CURRENT ECONOMIC CONTRIBUTION:
This study provides three measuresof the contribution made by the tourism economy to UK:
1. Direct Industry: the contribution made by the visitors spending and tourism economy-
related government spending consistent with UK TSA, and the UNWTO Tourism Satellite
Accounting methodology.
2. Tourism Economy: includesdirect industry as well as private & government investment in
the travel and tourism sectors, and the domestic supply chain providing inputs for the direct
industry.
3. Total contribution: includesthe tourism economy and impact of spending by employees
within the tourism economy.
The ‘direct industry’ (business providing tourism related goods and services) is 4.1 per cent
of UK GDP
The tourism economy has continued to deliver a significant ‘direct’ contribution to the UK economy.
It currently delivers £58.0 billion in GVA which accounts for 4.1 per cent of UK GDP. This takes
into account value added generated by the provision of tourism related goods & services. In
employment terms,the direct industry supports over 1.75 million jobs. This economic activity is
supported by spending in the tourism economy of £113 billion in 2013-up from an estimated
£107billion in 2012.
The ‘Tourism economy’ (including investment and effects of supporting businesses in the
supply chain) is 9 per cent of UK GDP
There are significant indirect impacts of the tourism economy through its interaction withother
businesses in the supply chain. The direct & indirect (excluding included) impact of the tourism
economy was equivalent to around £127 billion or 9.0 per cent of expected national GDP in 2013.
These indirect impacts arise because activity and output in the tourism economy create and
support jobs and growth in the wider economy as sectorssell to or purchase from the visitor
economy. There are also further impacts through interaction with suppliers of investments goods to
the tourism economy. Consequently,all of these other sectors – to some extent – benefits form the
tourism economy. The Tourism economy supports around 3.12 million jobs.
The ‘Total Contribution’ of the tourism economy (including ‘Tourism economy’ & employee
spending effects is 11.4 per cent of UK GDP
There are significant indirect impacts of the visitor economy through its interaction with other
businesses in the supply chain. The total contribution (i.e. direct, indirect & induced impacts) of
the tourism economy is equivalent to around £161 billion or 11.4 per cent of expected national GDP
in 2013. In addition to the impacts within the ‘Tourism economy’ contribution, the broader
definition also includesthe induced effectsof employee spending. The total contribution of the
tourism economy is over 3.79 million jobs.
The wider contribution of the tourism economy
Previous studies for Visit Britainidentified & assessed the linages between the tourismeconomy &
other areas economy,concluding that tourism activities create slipover benefits for a number of
sectors.They highlighted how the tourism economy also contributes to the wider policy agenda
including economic & social inclusion,enterprise/business formation, sustainable development
impacts & regeneration.
This study has considered wider contribution in the context of job creation, multiplier effects across
the nations, & the tourism economy’s broader contribution through tax receipts.
Job Creation
The marginal revenue required to create a job in UK tourism is estimated to be around £54,000.
This is based on regression analysis which suggests that the elasticity of employment with respect
to expenditure in the hotels & catering sector is approximately 0.89. This indicatesthat for a 1 per
cent increasesin total expenditure in UK tourism, it might be expected that FTE employment will
increase by 0.89 per cent.
This analysisbuilds on previous work by Caledonian Economics, updated to include the latest data
& providing an alternative methodology to reflect the ‘marginal’ rather than ‘average’ impact.
Updating the analysis from 2003 (Caledonian Economics),it is estimated that on average, around
£47500 is required to support a job in tourism – defined as it was in 2003 on a narrow definition of
hotels, catering & attractions. This represents a 19 per cent increase from the average value of
£40,000 per job in 2000. However,this does not indicate the additional spending required to
generate an extra job & therefore the preferred method is the alternative method developed in this
study which provides a marginal value of £54,000.
Multiplier effects
This reports has presented the contribution that the tourism economy makes directly (through
activitiesin the sector) & due to spill – over effects (throughsupply chain & consumer spending
that arise from direct activity in tourism). The link from direct to indirect (supply chain) and
induced (knock-on consumer spending) effectsin the model known as the ‘multiplier effect’.
Multipliersare a measure of the direct & wider (indirect or indirect and induced) effects relative to
the direct effects,as illustrated below. The analysis suggests that for a £1 increment in GVA at the
UK level, there is likely to be additional £1.20 generated in the UK as a result of this activity due to
the impact of supply chain effects. This is the Type I multiplier. The analysissuggests that for a £1
increment in GVA at the UK level, ther is likely to be an additional £1.80 generated in the UK as a
result of this activity due to the impact of both supply chain & consumer spending effects. This is
the Type II multiplier.
Leverage of foreign visitors for tax revenues
Export earnings for the UK from tourism amounted to some £22 billion in 2012, & a simplified
analysis of tax take suggeststhat around £6.7 billion is generated each year for the exchequer form
this spending through APD, VAT, & resultant corporation tax, income tax & employee/employer
national insurance contributions.
PART 2: EXPLORING TRAVEL AND TOURISM ORGANIZATIONS:
The Department of Tourism and Commerce Marketing (DTCM) is the principal authority for the
planning, supervision, development and marketing of tourism in Dubai. We also market and
promote the emirate’s commerce sector, and are responsible for the licensing and classification of
all tourism services, including hotels establishments, tour operators, travel agents,and all other
tourism services.
We’re committed to strengthening the Dubai economy through attracting tourists, inward
investment into the emirate and delivering Dubai’s tourism vision for 2020, which includes
welcoming 20 million visitors per year by 2020. DTCM has played a pivotal role in Dubai’s rise to
prominence as one of the world’s leading tourism destinations, welcoming more than 10 million
visitors in 2012 and 11 million in 2013. In addition to its headquartersin Dubai, DTCM operates
20 offices worldwide.
Our vision: Dubai will be the leading destination for global travel, businessand events by 2020.
Our mission: Strengthen the Dubai economy by attracting tourists and inward investment into the
emirate.
This will be accomplished by:
 Making Dubai the world’s most recommended leisure and business destination
 Innovatively and effectively raising the international profile of Dubai’s tourism and commercial
offering
 Redefining traveller expectations withcutting-edge solutionsand service excellence across all
tourism touch-points
 Pioneering multi-dimensional, next-generation experiences that inspire people to visit and returnto
Dubai
 The Department of Tourism and Commerce Marketing (DTCM) plays a critical role in growing the
economic contribution of tourism to the emirate with a focus on working with governmental and
private partners to both continually enhance the destination offering of Dubai and effectively
market the offering to the world.
OVERVIEW:
Established in 1997, replacing the Dubai Commerce and Tourism Promotion Board that had been
in operation since 1989, the Department of Tourism and Commerce Marketing (DTCM) is comprised
of a number of different entities and functions, which work together to plan, supervise, develop,
and market Dubai’s tourism industry. The portfolio includes Dubai Corporation for Tourism and
Commerce Marketing; Dubai Business Events; Dubai Festivals and Retail Establishment. In
addition to its headquarters in Dubai, DTCM operates 20 offices worldwide in New York (USA),
London (the UK and Ireland), Paris (France and Benelux), Frankfurt (Germany), Stockholm
(Scandinavia),Milan (Italy), Bern(Switzerland and Austria), Moscow (the Russian Federation, CIS
and Baltic States), Johannesburg (South Africa), Jeddah and Riyadh (Saudi Arabia), Mumbai
(India), Beijing, Guangzhou, Shanghai and Chengdu (China), Hong Kong (Far East), Tokyo (Japan),
Sydney (Australia), and Sao Paolo (Brazil and Latin America).
TOURISM VISION 2020:
Dubai’s Tourism Vision for 2020 is a strategicroadmapwith the key objective of attracting 20
million visitors per year by 2020, doubling the number welcomed in 2012. The Vision was approved
in May 2013 by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai and UAE
Vice President and Prime Minister.
This strategy outlines what needs to be delivered for the city to effectively drive and serve this
visitor growth with multiple initiatives covering regulatory policy, infrastructure development,
product offeringenhancement, and destination marketing investments. The overall goal of these
initiatives and the strategy is to position Dubai as the ‘first choice’ for the international leisure and
business traveller.
Tourism is a central pillar of Dubai’s economic growth and diversification. The Tourism Vision for
2020 will further leverage the sector by broadening Dubai’s offering acrossevents, attractions,
infrastructure,services,and packages. Part of this strategy involves adapting a marketing approach
to showcase Dubai to a wider audience and increasing awarenessand conversion of flight and hotel
bookings.
To accomplish these goals, DTCM will harness the collective power of key stakeholders, both in the
public and private sectors in Dubai and abroad, and will focus on three key objectives:
 Maintaining market share in existing source markets
 Increasing market share in markets we’ve identified with high growth potential
 Increasing the number of repeat visits.
o P3 & P4:
WORKING TOGETHER AND INTERRELATIONSHIPS:
No single component of the travel and tourism industry can operate alone without relying on other
parts of the industry. Interrelate- when two or more businesses become connected to one another
Channel of Distribution- the movement of products or services between organisations. Integration-
when business/organisation combinestogether.Interdependency- when organisations depend on
one another.
Many airlinesdepend on the Chain of Distribution since they rely on the tour operators and travel
agent to sell seatson their aircrafts. However some of the tour operator owns their own aircraft an
example of these are Tui and Thomas Cook. By having their own aircraft they are able to fly their
customers as part of a package holiday. On the other hand even if the tour operator does not have
their own airline, they rely on other tour operators that do since then they are able to use their
services in their holiday package. Tour operators packages traditionally have been sold through
various travel agents.
An example of a tour operator that is chain owned by the same company is Thomas Cook since they
own their own
- Airlines
- Tour operators and Clubs for example 18-30
- Retail shops
- They have their own ancillary services such as currency exchange and travel insurance etc.
SIMPLER CHAINS
Another type of chains is simpler chains since some self-cateringholidays such as cottages in the
Lake District are sold through brochures and organisations that promote the Lake District as a
destinationfor a holiday. The cottage would be appearing in broachers about the Lake District and
to book the accommodation they would book through the organisation. The organisation would
handle the payment,take a commission and liaiseswith the customer.
INTEGRATION
In the past the only way to book a holiday was to deal with different businesses, which provided
different part of the package. However the chain of distribution is changing for instance businesses
are starting to expand their area of operation which is known as integration. An advantage of a
business offering all elements of a holiday is that they are able to control its cost and ensure that
their customers receive a guaranteed high standard of service.
There are two different types of integration; horizontal and vertical. Horizontal integrationis where
businesses at the same level in the chain of distribution merge together or are purchased by
another an example of this Thomas Cook mergingwith My Travel since they are both tour
operators. Vertical integration is where a business at one point on the chain of distribution
purchases or gains a business at a higher/lower level of the chain of distribution an example of
this could be Thomas Cook and Co-op travel since Thomas Cook is higher on the Chain of
Distribution.
INTERDEPENDENCY
This is when organisationscannot work in isolation and depend on others for its effective operation.
Certain visitor attractions depend on transport industry’s to bring their customers to the
attractions;an example of this would be Alton Towers since there are no buses that are able to get
you straight to Alton Towers, therefore if an educational group was to travel to Alton Towers they
would travel via coach. Tourist boards also help organisations that are dependent on others by
promoting their organisation to domestic and inbound visitors.
ALTON TOWERS
An example interdependency is at Alton Towers for instance the businesses within the local area
here are some examples:
· The transport such as coaches since they may get discount or offers when bringing people to
and from Alton Towers therefore they can use this as an advantage and use this to get more
customers.
· Accommodation such as B&B’s, although Alton Towers has its own hotels there is only
391 room which get filled up quickly therefore the customersmay need a place to stay.
· Restaurants even though there is food within the Alton Towers park it closes at 5 therefore
the customers may want some food before travelling home.
· Small businesseswithin the town may benefit from Alton Towers since in the Guest Services
there are leafletsabout different things to do in the area
· Attractions within the area would also benefit from this
TUI
An example of an interrelationshipis First Choice and Thomsons, these two organisations
merged and became a part of Tui in 2007 it was said that ‘the company will be 51% owned by
TUI and 49% by First Choice shareholders’. This is an example of Horizontal Integration since both
Thomsons and First Choice are tour operators. By interrogating with another tour operator these
benefits the organisation since it gives themmore knowledge about the industry. In 2011 ‘TUI UK
had 505 Thomson stores and 215 First Choice Stores’. Tui works with other companiessuch as
transport, for example local coach companies overseas, these would link into package holidays. For
instance travellers would be picked up from the airport and taken to their hotel via these coach
companies. Both companies would be benefiting from this interrelationshipsince the coach
company would be receiving business.Tui would be saving money because theywould not need to
buy their own coaches; therefore they would be making more of a profit by not needing to pay for
the coaches.Relating back to the Chain of Distribution Tui would be part of the Wholesalers
because they are a Mass Market organisation. People benefited from Thomsons and First Choice
merging with Tui because it mean they were able to buy holidays from a bigger company therefore
they have more holidays available because theyhave the staff and transport. Interrelationships are
important to organisationssuch as Tui since it generates more income,for instance if the
interrelationships were not present then Tui would not be getting as much money.

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UK Travel and Tourism Sector

  • 1. UNIT 1: THE TRAVEL AND TOURISM SECTOR PART 1: EXPLORING UK TRAVEL AND TOURISM: Travel is the movement of people betweenrelatively distant geographical locations, and can involve travel by foot, bicycle, automobile,train, boat, airplane, or other means, with or without luggage, and can be one way or round trip. Travel can also include relatively short stays betweensuccessive movements. o P1: Tourism has become a popular global leisure activity. Tourism can be domestic or international, and international tourism has both incoming and outgoing implications on a country's balance of payments. Today, tourism is a major source of income for many countries, and affects the economy of both the source and host countries, in some cases being of vital importance.  DIFFERENT TYPES OF TOURISM: Tourists can be divided into different categories. This can be on the basis of which types of places they like to visit or the type of activitiesthey like to be involved in.  INBOUND TOURISM IN UK: The record 32.8 million overseasvisitors who came to the UK in 2013 spent a record £21.0 billion. These figures represent a 5.6% increase in volume and 12.7% (nominal) increase in value compared with 2012. In 2012 the UK ranked eighth in the UNWTO international tourist arrivals league behind France, USA, China, Spain, Italy, Turkey and Germany (down two places from sixth which the UK held in the years to 2010, with Turkey in 2010 and Germany in 2011 over-taking the UK). The UK accounted for 2.8% of global arrivals (down slightly from 3.0% in 2011). In 2012 the UK retained eighthplace in the international tourism earningsleague (in recent years the UK's highest rank was fifth in 2005 and 2006) behind the USA, Spain, France, China, Italy, Macao and Germany according to UNWTO figures. The UK accounted for 3.4% of international tourism receipts in 2012 (little change from 3.5% in 2011, 3.3% in 2010). In 2013 France,Germany and the USA were the top three markets in terms of number of visits to the UK accounting for nearly one-in-three visits. The top three markets measured in terms of visitor spend were USA, Germany and France, accounting for one-quarter of visitor spend. London accounts for 54% of all inbound visitor spend, the rest of England 34%, Scotland 8% and Wales 2%.
  • 2. GB DOMESTIC OVERNIGHT TOURISM: In 2012 GB residentstook: - 57.7 million holidays of one night or more spending £13.8 billion - 18.9 million overnight business trips spending £4.5 billion - 45.1 million overnight trips to friends and relatives spending£5.1 billion Overall the number of domestic overnight trips taken in 2012 was 1% lower than in 2011, while total spending increased by 6% in nominal terms.  ACCOMMODATION: In 2012, average room occupancy for all serviced accommodation throughout the UK was 66% (up 2 percentage points from 2011) according to the UK Occupancy Survey. Average bedspace occupancy was 50% (an increase of 2 percentage points on 2011). According to Eurostat the number of bed spaces (that is the total number of persons who can stay) in UK 'hotels and similar establishments' was 1,411,000 in 2011. Furthermore, Eurostat estimate that the number of bed spaces in 'other collective accommodation establishments' (including holiday dwellings and tourist campsites) in the UK was 1,861,000 in 2011. In total therefore the UK has a tourist accommodation 'bed space' stock capable of sleeping around 3.272 million people. Figures from TRI Hospitality Consulting confirm that one of the biggest changes in the UK accommodation stock in the past two decades has been the increasing number of branded budget hotel rooms. In 1993 there were 10,555 such rooms whereas at the end of 2010 there were 114,974.
  • 3.  ATTRACTIONS: The table to the above shows the top five attractions in terms of visitor admissions in 2012 based on figures from the Association of Leading Visitor Attractions. In 2009 the number of inbound visitors who visited a museum was 7.7 million, with 4.2 million visiting an art gallery. Visiting heritage attractions is also a very popular activity for inbound visitors with 5.8 million visiting a castle, 5 million visiting historic houses and 6.4 million visiting religious buildings or monuments. • TOP 10 INBOUND MARKETSIN UK: The top ten inbound markets for the UK in terms of number of visits during 2013 accounted for two in three visits (66%). It is noteworthy that only two long-haul markets, the USA and Australia, appear in the top ten. Looking at spending by inbound visitors, the top ten markets account for 52% of all spending, with the USA worth over £1 billion more than the next most valuable market, Germany. All of the top ten markets measured in terms of value are 'developed' rather than 'emerging' source markets for international tourism.  THE FASTEST GROWING AND DECLINING MARKETS: The top 3 markets which have recently shown the highest absolute growth in value (on average during the last five years) are all long haul to the UK, namely China, USA and Australia. It is notable that the value of both the China and USA markets has grown on average by around £94m per year 2009-13. Whilst both the USA has shown growth in recent years in terms of visits it remains considerably smaller than in the 1990s. The 'relative' growth in value on average over the last five years shows the rapid rise in importance of the emerging markets from Mexico and China.
  • 4. The markets whichhave declined most on average across the last five years in terms of absolute reduction and ‘relative’ decline in spending are topped by the Republic of Ireland market. The 'relative' decline figuresshow that the value of visits from Austria and Bulgaria have decreased by 5% each on average each year across the last five years.  JOURNEY PURPOSE AND SEASONAL SPREAD: In 2013 nearly two-in-five inbound visits to the UK were for a holiday (39%), while almost a quarter (24%) was for business. Looking at the share of visitor nights by journey purpose it is clear that trips to visit friendsor relatives (VFR) account for the largest share (38%), thanks to the fact that these trips involve a longer than average length of stay. By contrast VFR trips account for a lower share of inbound visitor spend (22%) than they do of visits (28%), while holiday and business spending (40% and 24% respectively) are in line with their respective share of visits (39% and 24%). Almost four in every six holiday visits were during the traditional holiday period in 2013 (29% April to June, 35% July to September) whilst only around one-in-six (16%) were in the first threemonths of the year. By contrast business visits show a more even seasonal spread (23%-27%), while VFR trips are more likely to take place in the last two quartersof the year (29%, 26%) than the January to March (21%) period.
  • 5.  MODE OF TRAVEL: The UK enjoys excellent global connectivity, with well over 100 countries having direct air connections to the UK in 2013. It can be seen from the pie chart that in 2013 almost three quarters of inbound visitors reached the UK by air. As visitors who travel by air tend to spend more per visit than those using other means of transport the share of visitor spend accounted for by visitors who fly to the UK stood at 84% in 2013. Visitors who do not travel by air are almost evenly split betweenthose who travel by ferry (14%) or use the Channel Tunnel (13%).  DISTRIBUTION BY AREA: London is a key destination for inbound visitors to the UK. In 2013 16.8 million visitors spent time in the capital, spending just over £11bn. This represents 54% of all inbound visitor spending. The rest of England attracted 13.6 million inbound visitors who spent an estimated £7.1bn, representing 34% of all inbound visitor spend. Scotland attracted 2.4 million visitors and 8% of all
  • 6. visitor spending, with the equivalent figures for Wales being 0.9 million visits and 2% of visitor spend. The 'other' category includes visits to the Channel Islands and Isle of Man, along with those visitors whose nights in the UK were spent travelling.  INBOUND VISITOR STATISTICS: The latest available data from the International Passenger Survey is available below. This shows the volume and value of visits to the UK by overseas residents for the most recent month, quarter and year. The survey is run by the Office for National Statistics (ONS), for publication dates and more information please see 'About the Survey'. To learnmore about how to use pivot tables download a brief overview. • Nominal spending by overseasvisitors to the UK was down 19% in February 2015 against a record £1.19 billion set in February last year. Off the back of a strong 2014, over the last twelve months up to and including February 2015 overseas visitors spent £21.36 billion in the UK just setting a new 12 month to February record and broadly in line with spending levels of the previous twelve months. • The UK welcomed 2.08 million visits in February 2015, 5% fewer than in February 2014. With particularly solid results in 2014, over the rolling twelve months to February 2015 overseasvisits to the UK were tracking 4% higher than in the same period a year ago with 34.64 million visits and a new rolling twelve month to February record. • Over the three months from December 2014 holiday and VFR visits posted decreases of 6% and 5% respectively, while business visits rose 7%. All of these journey purposes, posted positive results over the twelve months to February 2015, compared to the previous rolling twelve months. • Exchange rates play an important part in international tourism. Visit Britain tracks and makes available current historical exchange rate data on our website. In recent months sterling has strengthened against the Euro – making the UK a relatively more expensive destinationfor visitors from euro countries, while sterling has weakened against the dollar, resulting in the UK becoming a comparatively cheaper destination for US visitors than previously. • During February 2015 overseas visits to the UK from EU15 countries declined 12% compared to February last year. On the flipside, visits from North America increased 13% during February this year. Over the longer term all world regions included in this report registered positive year on year growth in the twelve months to February 2015.
  • 7. • Visits from other EU countries, (countries joining the EU from January 2004 onwards) increased 19% during February 2015, setting new February and three month to February records. Likewise, the Rest of World countries visits increase d by 7% in February 2015 compared to February last year to set a new three month to February record of 1.02 million visits. • The International Passenger Survey data in this report is not designed to report accurately at a monthly level so resultsshould be treated with caution. With Februarytraditionally one of the quieter months of the year for inbound tourism to the UK (contributing around 6% of annual overseas UK visits) we recommend data for at least three months of the year is needed before a picture of UK inbound tourism for 2015 will begin to emerge. LATEST SHORT TERM DATA – FEBRUARY AND LAST THREE MONTHS • Holiday visits were down 9% during February against the record set in February last year. After a strong December 2014, 2.03 million holiday visits to the UK were registered in the three months to February 2015 – 6% fewer than the same period last year. • VFR visits to the UK in February 2015 increased 3% compared with February a year ago. After a particularly weak December 2014 and slower January 2015, VFR visits in the 3 months to February 2015 were 5% lower compared to the three months to February 2014. • Business visits dropped 8% compared to the record set in February 2014. Taking a longer term view of the three months to February 2015, overseas business visits to the UK were tracking 7% higher than in the same three months of last year, evidence of a continuing recovery for business visits since the global financial crisis. • EU15 visits declined 12% during February, perhaps indicative of the strong pound making the UK relatively more expensive than it has been. In the three months since December 2014 there were 324,000 fewer overseasvisits from these countries to the UK, a decrease of 8% compared to last year. There was notable growth in visits to the UK from Other EU countries in February – a 19% jump on February 2014 and not surprisingly setting a new February record. After three consecutive months of strong double digit monthly growth Other EU visits were tracking 16% higher in the three months to February 2015, compared to the same period last year. • Rest of Europe visits to the UK dropped 16% compared to the record February 2014. Over the three months December 2014 to February 2015, visits were just 3% below the same period a year ago.
  • 8. • North American visits rose 13% in February 2015, returning to 2013 levels after a dip in 2014. Over the three months to February 2015 there were 560,000 visits to the UK from North America, 3% more than in the 3 months to February 2014. • ‘Rest of World’ markets (outside Europe / North America) rose 7% in February 2015, compared to February 2014. Over the rolling three month period to February 2015, visits were 3% higher than during the three months to February a year ago. MEDIUM TERM – LAST 12 MONTHS • Holiday Visits: by overseas visitorsto the UK in the twelve months to February 2015 were 5% higher compared to the twelve months to February 2014. After a particularly strong 2014, there was a record setting 13.57 million holiday visits to the UK in the rolling twelve months to February 2015. • VFR Visits: overseasvisitors to the UK made 3% more visits to friends and relatives in the twelve months to February 2015, than they did in the same period last year. From March 2014 there were 9.81 million visits, 3% more than the previous 12 months and just 1% below the VFR record set in the twelve months to February 2008. • Business Visits: increased 6% to reach 8.48 million visits in the twelve month period to February 2015 – posting the fifth consecutive rolling 12 months to February increase. • EU15 countries are an important inbound region to the UK including countries like France, Germany and Republic of Ireland. In the twelve months between March 2014 and February 2015 visits from these high volume markets reached a record 19.5 million, accounting for 56% of all inbound visits to the UK during this time. Visits from other EU countries also achieved a new rolling twelve month to February record – up 6% compared to the same time last year. • Rest of Europe Visits: There were 2.47 million visits to the UK from European countries outside the EU in the twelve months to February 2015. Visitswere 9% higher than in the 12 months to February 2014 and enough to clinch a new rolling twelve month to February record. • North America Visits: in the twelve months to February 2015 were 5% higher compared to the same time a year ago and the best twelve months to February since 2009. In the twelve months since March 2014 there were 3.69 million visits to the UK from the North American countries (USA and Canada).
  • 9. • Rest of World Visits: With 5.33 million visits registered during the twelve months to February 2015, a new rolling twelve month visit record to February was set for visits from these markets including Asia, Middle East and Africa, up 3% compared to the previous twelve months. THE INTERNATIONAL PICTURE • Many of the UK’s main competitors also reported increased visits during periods of 2014, compared to 2013. • UK growth for 2014 was in line with that of Spain, the USA and Turkey. • The Netherlandsis at the top of the leader board and the only country to report double digit percentage growth for 2014, followed by Australia and Republic of Ireland. • Germany,Canada, Switzerland,Italy and France all reported weaker figures than the UK. Figures relate to various periods so comparisons should be treated with caution. INDIVIDUAL MARKET LEVEL Using the latest available market level data, the following three chartsshow the percentage change in visits to the UK from a number of markets over the rolling twelve months to September 2014 compared to the previous rolling twelve months to September 2013.
  • 10. LONGER TERM TRENDS IN VISITS, SPEND, AND SPEND PER VISIT SINCE 2000 This chart shows the year-on-year change in headline IPS resultsbased on a ‘rolling twelve month’ basis. Presenting the data in this way enables us to spot emerging trends and helps to ‘smooth out’ erratic results for any single month. The chart clearly illustrates the dip in inbound tourism seen post 9/11 in 2002, and subsequent recovery in the mid-2000s. The impact of the global economic crisis can be seen in 2009 followed by slow but reasonably steady recovery over the more recent years. The displacement of visits during the Olympic Games in 2012 was followed by a periods of growth in visits. Although still increasing,growth in expenditure has been at a slower rate in more recent years. LONGER TERM TRENDS – JOURNEY PURPOSE By journey purpose holiday visits were far more resilient to the economic downturn in the late 2000s and have shown growth over the last couple of years. Although there was some variability during 2012, recent trends in 2013 and into 2014 have been more positive. Businessvisits suffered a significant downturn in 2009 following the global economic crises but are showing more sustained recovery in the past three years.
  • 11. After three years of gradual increases, trips to visit friends and relatives showed more variability towards the end of 2012 and into 2013, but moving back into positive territory by the end of 2014. Trips for other (miscellaneous) purposes account for a smaller number of visits and show the most variation, for example there was a boost by Olympic participants in late summer 2012. LONGER TERM TRENDS – WORLD REGION This chart shows the longer termpicture since 2007 and the downward trend in visit numbers from all regions that began in the autumn of 2008. Visits from the ‘Rest of Europe’ had the strongest recovery growth between 2011/2012 although have shown to be more volatile over the past couple of years. Visits from ‘Other EU’ regions took over the reins at the top spot for visits growth, delivering the fastest relative growth between 2013/2014. Meanwhile, after a period of gradual recovery post GFC in 2009 visits from North America have fluctuated more recently. Visits from the EU15 and ‘Rest of World’ regions have both hovered around 0%, with signs of positive growth since 2013 and into 2014. DETAILED MONTHLY TRENDS IN OVERALL VISITS AND SPEND
  • 12. OUTBOUND TOURISM: Outbound tourism is when someone goes out of their own country. it can for holidays, business, trip etc.  DOMESTIC TOURISM: Domestic tourism is tourism involving residents of one country traveling only within that country.[1] A domestic holiday is a holiday (vacation) spent in the same country; this class may overlap with staycation (in British English), a vacation spent in the same region.
  • 13. With the resurgence of the package holiday, research carried out by United Kingdom travel agent Thomas Cook has identified that domestic holidaysare not always a cost-effective means of holidaying. According to their research,[2] a one-week family holiday to Devon for four can cost in the region of £2,299, whereas an equivalent holiday to Majorca £2,036. In the UK, the growth of domestic holidays has had a major impact on its domestic tourist industry. Haven Holidays, one of the UK's biggest holiday park owners, in 2009 reported a 38% rise in sales of static caravans to sale-and-leaseback investors or buyers who want a more affordable second home.[3] e.g. The Ernest family from Southampton going to Edinburgh The Great Britain Tourism Survey (GBTS) is a national consumer survey measuring the volume and value of overnight domestic tourism trips taken by residents of Great Britain. This monthly survey covers overnight trips taken for any purpose, including holidays, business, or visiting friends and relatives. It measuresthe volume and value of domestic overnight tourism, and provides detailed information about trip and visitor characteristics. Interviewingis carried out every week of the year using a face-to-face methodology. Annually, some 100,000 respondentsare contacted, and any who have returned from an overnight trip within the past four weeks are asked to describe the details of that trip. The survey was previously known as the United Kingdom Tourism Survey (UKTS), however from January 2011 onwards data about trips taken by Northern Ireland residents is being collected separately by the Northern Ireland Statistics and Research Agency (NISRA) and will no longer be reported as part of a UK-wide survey. The UKTS has been running since 1989, though the methodology has changed a number of times since then. The current survey methodology started in May 2005, and comparisons with results from earlier years are difficult to make and should be treated with caution. Resultspresented from 2011 onwards are based only on residents of Great Britain. Comparisons with previous years using the same geographical coverage are included in monthly and annual deliverables issued for results from January 2010 onwards. No changeshave been made to documents produced from 2005-2010. These consider the whole of the UK, and cannot be directly compared with results from the new Great Britain survey. The GBTS is an Official Statistic, and is produced in adherence withthe Code of Practice for Official Statistics (2009). You can find out more about what this means here. The survey is jointly sponsored by the three national tourist boards: Visit England, Visit Scotland and Visit Wales.
  • 15. o P2:  THE TOURISM ECONOMY: CONTRIBUTING TO UK GDP ( GROSS DOMESTIC PRODUCT):  TOURISM BENEFITING ALL OF BRITAIN:
  • 16. o M1: CURRENT ECONOMIC CONTRIBUTION: This study provides three measuresof the contribution made by the tourism economy to UK: 1. Direct Industry: the contribution made by the visitors spending and tourism economy- related government spending consistent with UK TSA, and the UNWTO Tourism Satellite Accounting methodology. 2. Tourism Economy: includesdirect industry as well as private & government investment in the travel and tourism sectors, and the domestic supply chain providing inputs for the direct industry. 3. Total contribution: includesthe tourism economy and impact of spending by employees within the tourism economy. The ‘direct industry’ (business providing tourism related goods and services) is 4.1 per cent of UK GDP The tourism economy has continued to deliver a significant ‘direct’ contribution to the UK economy. It currently delivers £58.0 billion in GVA which accounts for 4.1 per cent of UK GDP. This takes into account value added generated by the provision of tourism related goods & services. In employment terms,the direct industry supports over 1.75 million jobs. This economic activity is supported by spending in the tourism economy of £113 billion in 2013-up from an estimated £107billion in 2012. The ‘Tourism economy’ (including investment and effects of supporting businesses in the supply chain) is 9 per cent of UK GDP There are significant indirect impacts of the tourism economy through its interaction withother businesses in the supply chain. The direct & indirect (excluding included) impact of the tourism economy was equivalent to around £127 billion or 9.0 per cent of expected national GDP in 2013. These indirect impacts arise because activity and output in the tourism economy create and support jobs and growth in the wider economy as sectorssell to or purchase from the visitor economy. There are also further impacts through interaction with suppliers of investments goods to the tourism economy. Consequently,all of these other sectors – to some extent – benefits form the tourism economy. The Tourism economy supports around 3.12 million jobs. The ‘Total Contribution’ of the tourism economy (including ‘Tourism economy’ & employee spending effects is 11.4 per cent of UK GDP There are significant indirect impacts of the visitor economy through its interaction with other businesses in the supply chain. The total contribution (i.e. direct, indirect & induced impacts) of the tourism economy is equivalent to around £161 billion or 11.4 per cent of expected national GDP in 2013. In addition to the impacts within the ‘Tourism economy’ contribution, the broader definition also includesthe induced effectsof employee spending. The total contribution of the tourism economy is over 3.79 million jobs. The wider contribution of the tourism economy Previous studies for Visit Britainidentified & assessed the linages between the tourismeconomy & other areas economy,concluding that tourism activities create slipover benefits for a number of sectors.They highlighted how the tourism economy also contributes to the wider policy agenda including economic & social inclusion,enterprise/business formation, sustainable development impacts & regeneration.
  • 17. This study has considered wider contribution in the context of job creation, multiplier effects across the nations, & the tourism economy’s broader contribution through tax receipts. Job Creation The marginal revenue required to create a job in UK tourism is estimated to be around £54,000. This is based on regression analysis which suggests that the elasticity of employment with respect to expenditure in the hotels & catering sector is approximately 0.89. This indicatesthat for a 1 per cent increasesin total expenditure in UK tourism, it might be expected that FTE employment will increase by 0.89 per cent. This analysisbuilds on previous work by Caledonian Economics, updated to include the latest data & providing an alternative methodology to reflect the ‘marginal’ rather than ‘average’ impact. Updating the analysis from 2003 (Caledonian Economics),it is estimated that on average, around £47500 is required to support a job in tourism – defined as it was in 2003 on a narrow definition of hotels, catering & attractions. This represents a 19 per cent increase from the average value of £40,000 per job in 2000. However,this does not indicate the additional spending required to generate an extra job & therefore the preferred method is the alternative method developed in this study which provides a marginal value of £54,000. Multiplier effects This reports has presented the contribution that the tourism economy makes directly (through activitiesin the sector) & due to spill – over effects (throughsupply chain & consumer spending that arise from direct activity in tourism). The link from direct to indirect (supply chain) and induced (knock-on consumer spending) effectsin the model known as the ‘multiplier effect’. Multipliersare a measure of the direct & wider (indirect or indirect and induced) effects relative to the direct effects,as illustrated below. The analysis suggests that for a £1 increment in GVA at the UK level, there is likely to be additional £1.20 generated in the UK as a result of this activity due to the impact of supply chain effects. This is the Type I multiplier. The analysissuggests that for a £1 increment in GVA at the UK level, ther is likely to be an additional £1.80 generated in the UK as a result of this activity due to the impact of both supply chain & consumer spending effects. This is the Type II multiplier. Leverage of foreign visitors for tax revenues Export earnings for the UK from tourism amounted to some £22 billion in 2012, & a simplified analysis of tax take suggeststhat around £6.7 billion is generated each year for the exchequer form
  • 18. this spending through APD, VAT, & resultant corporation tax, income tax & employee/employer national insurance contributions. PART 2: EXPLORING TRAVEL AND TOURISM ORGANIZATIONS: The Department of Tourism and Commerce Marketing (DTCM) is the principal authority for the planning, supervision, development and marketing of tourism in Dubai. We also market and promote the emirate’s commerce sector, and are responsible for the licensing and classification of all tourism services, including hotels establishments, tour operators, travel agents,and all other tourism services. We’re committed to strengthening the Dubai economy through attracting tourists, inward investment into the emirate and delivering Dubai’s tourism vision for 2020, which includes welcoming 20 million visitors per year by 2020. DTCM has played a pivotal role in Dubai’s rise to prominence as one of the world’s leading tourism destinations, welcoming more than 10 million visitors in 2012 and 11 million in 2013. In addition to its headquartersin Dubai, DTCM operates 20 offices worldwide. Our vision: Dubai will be the leading destination for global travel, businessand events by 2020. Our mission: Strengthen the Dubai economy by attracting tourists and inward investment into the emirate. This will be accomplished by:  Making Dubai the world’s most recommended leisure and business destination  Innovatively and effectively raising the international profile of Dubai’s tourism and commercial offering  Redefining traveller expectations withcutting-edge solutionsand service excellence across all tourism touch-points  Pioneering multi-dimensional, next-generation experiences that inspire people to visit and returnto Dubai  The Department of Tourism and Commerce Marketing (DTCM) plays a critical role in growing the economic contribution of tourism to the emirate with a focus on working with governmental and private partners to both continually enhance the destination offering of Dubai and effectively market the offering to the world. OVERVIEW: Established in 1997, replacing the Dubai Commerce and Tourism Promotion Board that had been in operation since 1989, the Department of Tourism and Commerce Marketing (DTCM) is comprised of a number of different entities and functions, which work together to plan, supervise, develop, and market Dubai’s tourism industry. The portfolio includes Dubai Corporation for Tourism and Commerce Marketing; Dubai Business Events; Dubai Festivals and Retail Establishment. In addition to its headquarters in Dubai, DTCM operates 20 offices worldwide in New York (USA), London (the UK and Ireland), Paris (France and Benelux), Frankfurt (Germany), Stockholm (Scandinavia),Milan (Italy), Bern(Switzerland and Austria), Moscow (the Russian Federation, CIS and Baltic States), Johannesburg (South Africa), Jeddah and Riyadh (Saudi Arabia), Mumbai (India), Beijing, Guangzhou, Shanghai and Chengdu (China), Hong Kong (Far East), Tokyo (Japan), Sydney (Australia), and Sao Paolo (Brazil and Latin America).
  • 19. TOURISM VISION 2020: Dubai’s Tourism Vision for 2020 is a strategicroadmapwith the key objective of attracting 20 million visitors per year by 2020, doubling the number welcomed in 2012. The Vision was approved in May 2013 by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai and UAE Vice President and Prime Minister. This strategy outlines what needs to be delivered for the city to effectively drive and serve this visitor growth with multiple initiatives covering regulatory policy, infrastructure development, product offeringenhancement, and destination marketing investments. The overall goal of these initiatives and the strategy is to position Dubai as the ‘first choice’ for the international leisure and business traveller. Tourism is a central pillar of Dubai’s economic growth and diversification. The Tourism Vision for 2020 will further leverage the sector by broadening Dubai’s offering acrossevents, attractions, infrastructure,services,and packages. Part of this strategy involves adapting a marketing approach to showcase Dubai to a wider audience and increasing awarenessand conversion of flight and hotel bookings. To accomplish these goals, DTCM will harness the collective power of key stakeholders, both in the public and private sectors in Dubai and abroad, and will focus on three key objectives:  Maintaining market share in existing source markets  Increasing market share in markets we’ve identified with high growth potential  Increasing the number of repeat visits. o P3 & P4: WORKING TOGETHER AND INTERRELATIONSHIPS: No single component of the travel and tourism industry can operate alone without relying on other parts of the industry. Interrelate- when two or more businesses become connected to one another Channel of Distribution- the movement of products or services between organisations. Integration- when business/organisation combinestogether.Interdependency- when organisations depend on one another.
  • 20. Many airlinesdepend on the Chain of Distribution since they rely on the tour operators and travel agent to sell seatson their aircrafts. However some of the tour operator owns their own aircraft an example of these are Tui and Thomas Cook. By having their own aircraft they are able to fly their customers as part of a package holiday. On the other hand even if the tour operator does not have their own airline, they rely on other tour operators that do since then they are able to use their services in their holiday package. Tour operators packages traditionally have been sold through various travel agents. An example of a tour operator that is chain owned by the same company is Thomas Cook since they own their own - Airlines - Tour operators and Clubs for example 18-30 - Retail shops - They have their own ancillary services such as currency exchange and travel insurance etc. SIMPLER CHAINS Another type of chains is simpler chains since some self-cateringholidays such as cottages in the Lake District are sold through brochures and organisations that promote the Lake District as a destinationfor a holiday. The cottage would be appearing in broachers about the Lake District and to book the accommodation they would book through the organisation. The organisation would handle the payment,take a commission and liaiseswith the customer. INTEGRATION In the past the only way to book a holiday was to deal with different businesses, which provided different part of the package. However the chain of distribution is changing for instance businesses are starting to expand their area of operation which is known as integration. An advantage of a business offering all elements of a holiday is that they are able to control its cost and ensure that their customers receive a guaranteed high standard of service. There are two different types of integration; horizontal and vertical. Horizontal integrationis where businesses at the same level in the chain of distribution merge together or are purchased by another an example of this Thomas Cook mergingwith My Travel since they are both tour operators. Vertical integration is where a business at one point on the chain of distribution purchases or gains a business at a higher/lower level of the chain of distribution an example of this could be Thomas Cook and Co-op travel since Thomas Cook is higher on the Chain of Distribution. INTERDEPENDENCY This is when organisationscannot work in isolation and depend on others for its effective operation. Certain visitor attractions depend on transport industry’s to bring their customers to the attractions;an example of this would be Alton Towers since there are no buses that are able to get you straight to Alton Towers, therefore if an educational group was to travel to Alton Towers they would travel via coach. Tourist boards also help organisations that are dependent on others by promoting their organisation to domestic and inbound visitors.
  • 21. ALTON TOWERS An example interdependency is at Alton Towers for instance the businesses within the local area here are some examples: · The transport such as coaches since they may get discount or offers when bringing people to and from Alton Towers therefore they can use this as an advantage and use this to get more customers. · Accommodation such as B&B’s, although Alton Towers has its own hotels there is only 391 room which get filled up quickly therefore the customersmay need a place to stay. · Restaurants even though there is food within the Alton Towers park it closes at 5 therefore the customers may want some food before travelling home. · Small businesseswithin the town may benefit from Alton Towers since in the Guest Services there are leafletsabout different things to do in the area · Attractions within the area would also benefit from this TUI An example of an interrelationshipis First Choice and Thomsons, these two organisations merged and became a part of Tui in 2007 it was said that ‘the company will be 51% owned by TUI and 49% by First Choice shareholders’. This is an example of Horizontal Integration since both Thomsons and First Choice are tour operators. By interrogating with another tour operator these benefits the organisation since it gives themmore knowledge about the industry. In 2011 ‘TUI UK had 505 Thomson stores and 215 First Choice Stores’. Tui works with other companiessuch as transport, for example local coach companies overseas, these would link into package holidays. For instance travellers would be picked up from the airport and taken to their hotel via these coach companies. Both companies would be benefiting from this interrelationshipsince the coach company would be receiving business.Tui would be saving money because theywould not need to buy their own coaches; therefore they would be making more of a profit by not needing to pay for the coaches.Relating back to the Chain of Distribution Tui would be part of the Wholesalers because they are a Mass Market organisation. People benefited from Thomsons and First Choice merging with Tui because it mean they were able to buy holidays from a bigger company therefore they have more holidays available because theyhave the staff and transport. Interrelationships are important to organisationssuch as Tui since it generates more income,for instance if the interrelationships were not present then Tui would not be getting as much money.