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"Certain ethical criteria, socially responsible investments
are on the mark and there is proliferation of guidelines
issued by governments and NGOs. All these gave new
enterprising spirit to the sector."
Tourism the
sector that in tegrates a wide range of economic activities is
now regarded as the world's largest industry. The dramatic
growth of tourism over the last 50 years is one of the most
remarkable economic and social phenomena of the period.
International Tourist arrivals grew, in real terms, from a
mere 25 million in 1950 to 698 million in 2000, which
represents an average annual growth rate of 7 pc over the
period. But for the industry 2000 and 2001 are exceptional
years. Placing the growth of tourism in the analytical
framework, we can say that this is due to three factors -
a) Social
factors that enhance demand
b) the technology, which makes traveling easier and
c) information technology, which transforms selling strategy
of tourism.
The studies
identify some basic features for international tourism in
2002. Most important of them are:
* There has been
contraction in international tourism caused by a decline in
long-haul flows
* Security is being given more than its usual level of
importance
* An active policy of alliances
Mergers and acquisitions as a way to reduce costs, which is a
new strategy for maintaining the business
The innovations
of new products (selling holidays by new methods, time-share
resorts etc) played its own role in the development of the
industry. The development of tourism is characterized by
continuous expansion of area and diversification of
destinations. All these increased the demand for tourism,
which is determined mainly by wealth.
Growing wealth will continue to produce new tourists as vast
numbers of people in developing countries join the middle
class. More over the programmes initiated by WTO and other
agencies resulted in moulding a new perception on tourism.
Some qualitative development trends in tourism include - the
development of the concept of sustainable tourism, increased
market segmentation, development of new forms of tourism,
especially those related to nature, wildlife, rural areas,
culture, sustainable tourism, eliminating poverty etc.
Consumers, investors, employees, governments and the media who
have a direct influence on company's policy formulations
increasingly believe that business has social responsibilities
that go well beyond commercial responsibilities which
ultimately result in the creation of new approach from the
corporates i.e., corporate social responsibility. (This means
adopting open and transparent business practices that are
based on ethical values). The buying decisions of consumers
are based on certain ethical criteria, socially responsible
investments are on the mark and there is proliferation of
guidelines issued by governments and NGOs. All these gave new
enterprising spirit to the sector. More and more companies are
seeing the value of social responsibility and integrating
management and accounting practices. This leads to the
development of a new term triple bottom-line reporting (as
used in the corporate field). In this, social and
environmental results are considered and reported next to
revenue results.
As an economic activity (traditionally tourism is included in
the tertiary sector) tourism on the one hand is defined by the
demand and consumption of visitors. On the other hand, tourism
refers to the goods and services produced to meet that demand.
That means it comprises a whole range of different activities,
for example transport to and at the destination,
accommodation, catering, entertainment, shopping and services
of travel agencies and outgoing and incoming tour operators.
Thus tourism, the sector, which had an astounding success
story, now enters the new track with fresh dimensions. As per
the estimates of WTO international arrivals are expected to
increase to more than 1 billion in 2010 and attain over 1.5
billion by 2020 (from 699 million in 2000 to 1 billion by 2010
and 1.5 billion by 2020) corresponding to an average annual
growth rate slightly over 4 per cent for the same period.
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