Let’s Talk About Tourism
By Martin Owen
About 20 years ago, it was predicted that workplace automation, the rise of the internet, and the ability to work from nearly anywhere would lead to a massive increase in leisure time. And as a result, we would see an increase in tourism worldwide. This was predicted to be good for everyone: more travel, more vacations, and a better-funded tourism industry with well-paid jobs for all… Well, the result has happened, and world tourism is at an all time high. However, the reason for that increase was not really as predicted.
Certainly workplace automation, computerization, and the ‘always on’ mobile Internet have had an effect; but the boom has come from other areas. The rise of the Boomer generation was the first driver. Those born after WW2 through 1964 have come to retirement age across the world. They may not actually retire completely, but they do have more leisure time, and in very many cases, have the cash to spend on travel. Secondly, the rise of the Millennial Generation—born in the 80’s and early 90’s—have given us a group of people for whom experiences are more important than things. Although not as cash rich as the Boomers, they are the largest traveling group. As they are in the midst of their careers, they don’t have unlimited time to travel, but they are willing to combine business with pleasure, hence the rise of the ‘Bleisure’ trip where a couple of days of vacation is tacked onto the end of a business journey.
During the past 20 years, there has been growth in the aviation business, in many cases Low Cost airlines. This is again a worldwide phenomenon that started with the short haul carriers, but has now spread to longer routes. These airlines are ideal for the vacationing traveler using point-to-point flights rather than going through a hub, and striping out the luxury aspects of the flight to achieve a low fare. Of course, they then charge for everything else, which means—although the fare may be low—the total cost of the journey is oft times quite high. You also get what you pay for!
The push for lower prices—who doesn’t like a bargain?—also has put pressure on accommodation providers, be they hotels or vacation rentals. The emergence of AirBnB, VRBO and others that are known as peer to peer rentals or room sharing have put competitive pressure on the traditional ways of lodging, and hence a drop in prices.
On a worldwide basis, the staggering growth of the cruise market has changed things drastically. Problems of what tourism has become in the Caribbean and in European destinations like Venice and Barcelona are largely due to the regular arrival of immense cruise ships, some of which can contain 5,000 passengers. Disgorging that number of passengers at one time can strain any destination.
Yes, there has also been an increase in leisure time, at least worldwide. However, here in the USA we continue to have the highest work week of the developed world with folks working in excess of 49 hours a week! USA workers also don’t get a guaranteed paid vacation—unlike other countries—and it’s been found that we’re not taking all the vacation time that we are entitled to.
So, we have had an increase in tourism, and many countries have developed the industry as a major economic driver. Some destinations have become over-visited. Some nations have emerged as major travelers: China, India, European countries; while others have become more domestic looking, like the USA, where it’s often more convenient and cheaper (particularly for families) to take trips close to home. It’s a mixed bag—some good and some less so—but in general we’re traveling more, and that is a good thing for everyone… I think!
In other news…
We’re deep into the summer vacation season here, on the Northern Gulf Coast, and it’s shaping up to be a good one. Visit Florida reports that Florida welcomed an all time record of 33.2 million visitors in the first quarter of 2018. That’s an increase of 7.4% over the same period last year. Talking to our local accommodation providers and tour companies, they’re reporting very high advance bookings. Certainly, this is good news for our local economies.
Enjoy this summer and stay cool!