DT Lecture Topic 6

• Domestic tourism


  The leading form of tourism, representing an important tool for regional economic growth and development
• More and more people can afford to travel with over 50% of the global population now categorised as "middle class" or "rich"
• Purpose of encouraging tourism in developing countries

  • Creates employment
  • Eradicates poverty
  • Promotes dialogue among societies
  • Provides channels for different cultures to meet and mingle
• Tourism plays an extremely important role in the economic and social development of most countries in the world
• Tourism


  • Largest generator of employment
  • Provides services like travel, accommodation, catering, maintenance of culture and traditions, handicraft industry, preservation of eco-system
• Domestic tourism


  The core of business revenue with demand in tourism activities increasing during the peak seasons
• In 2017, domestic tourism represented 73% of the total global tourism spending (US$3,971 billion)
• China accounts for 62% of global absolute growth in domestic spending over the past ten years
• Factors driving strong domestic tourism

  • Growing or sizeable middle-class population
  • Increase in spending power among domestic consumers
  • Sheer size of the countries
  • Governments' initiatives in promoting new locations
  • Strong or improving transportation infrastructure and economic links between different internal regions
• China has built an average of eight new airports every year since 2013, and rapidly developed its high-speed rail network over the last 15 years which has opened-up previously remote places to domestic tourists
• In India, the government plans to build 100 new airports with a budget of US$60bn over the next ten to 15 years to accommodate and stimulate the demand for domestic travel
• Factors contributing to higher levels of domestic tourism

  • High levels of first and second-generation foreign immigrants
  • High levels of domestic migration
  • Low levels of passport ownership among the population
• The countries with the highest reliance on domestic tourism to drive the performance of their Travel & Tourism sector are emerging economies
• Local and national pride

  The positive affect that the public feels towards their local community, province, and country as a result of their local and national identity
• Benefits of domestic tourism

  • Drives infrastructure improvements
  • Disperses visitors geographically across regions
  • Smooths/Eliminates seasonality
  • Creates employment opportunities
  • Improves destination attractiveness
  • Attracts educated professionals
  • Helps withstand external issues
  • Encourages development of tourism events
  • Develops remote rural areas
• Policies to raise the contribution of domestic tourism

  • Pricing (dual pricing, lower prices in off-peak season)
  • Direct incentives (support to organisations, benefit programmes for residents)
  • Marketing, development and promotional campaigns
  • Transport and Tourism Interlinkages
• Quality transport infrastructure enhances the experience of a destination and quality of life within it for both visitors and residents