International tourism and the world market of

tourism services

Dubenyuk-Panagiotopoulou Yaroslava

PhD in Economic Sciences (World Economy and International

Economic Relations)

Associate Professor of the International Economy Chair

Mariupol State University(Ukraine)

International tourism

250 mln employed

4.5% world

investment

11% world

consumers’ expenses

5% tax revenues

25% world service

trade

Approaches to the definition of the international

tourism’s nature

INTERNATIONAL TOURISM

UN WTO Infrastructural

Legal Statistical

International tourism is a form of international economic relations that reflects the relations

between the countries, arising during the production, realization, distribution and consumption of

tourism services and related goods.

Peculiarities of international tourism as a kind of economic activity: Tourism is based on the people’s exchanges; Immobility of tourism services; Absence of the material form; Tourism services are lost in time; Possibility to change the quality of some

services in the tour; Time lag between the fact of payment for

tourist product and the fact of its consumption; Quality’s dependence on the immediate

executives; Informational saturation; Seasonal fluctuation of the tourist demand; Territorial dissociation of consumer and

producer.

Functions of international tourism

Recreational

Holistic

Political

Ecological

Economical

Economical subfunctions of international tourism

Subfunctions

Productive

Employment promotionDirect effect

Indirect effect

Income creation

Smoothing

Leveling of the balance of payment

Investment promotion

Commercial

Distributional

Tourism employment in some countriesCountry Direct effect, % from general employment rate General effect, % from general employment

Maldives islands 25,9 54,2

Cayman islands 18,1 47,3

Malta 15,6 26,3

Cyprus 11,7 22,1

Jordan 10,0 20,9

Mauritanian islands 10,0 21,9

Belize 8,9 22,0

Spain 8,3 20,9

New Zealand 6,2 13,3

USA 5,6 12,6

Gambia 5,5 12,4

Cuba 5,1 12,1

United Kingdom 4,9 14,8

Australia 4,7 14,5

France 4,3 11,7

Turkey 3,9 8,9

Sri-Lanka 3,1 7,4

India 2,7 5,6

Indonesia 2,3 7,4

China 2,0 7,0

World and the EU’s job market in 2012

9,10%

8,70%

90,90%

91,30%

0,00% 20,00% 40,00% 60,00% 80,00% 100,00%

European Union

World

Tourism

Other sectors

Economical subfunctions of international tourism

Subfunctions

Productive

Employment promotionDirect effect

Indirect effect

Income creation

Smoothing

Leveling of the balance of payment

Investment promotion

Commercial

Distributional

Interconnection of the tourism categories

Inbound tourism

Domestic tourism

Outbound tourism

TOURISM WITHIN THE

COUNTRY

NATIONAL TOURISM

INTERNATIONAL TOURISM

Mechanism of tourism market

functioning

NON-ORGANIZED

TOURAGENT

Transport companies

TOURIST TOUROPERATOR

Hotels, motels etc.

Catering companies

Insurance companies

Banks

Embassies, Consulates

Foreign partners

Governmental bodies

Tourism services markets

International (world)

National

Regional

Local

Classification of the world market of tourism

servicesWorld market of tourism services

Level of the economic development

The role f the country on the world tourism market

Regional affiliation

Tourism market of developed countries

Tourism market of developing countries

Market of low-developing countries

Market of advanced economies

Market of CIS’s countries (transitive economies)

Tourism market of host countries

Tourism market of countries generating the

tourists flows

European tourism market

American tourism market

Tourism market of East Asia and Pacific countries

Tourism market of Middle East countries

Tourism market of Southern Asia countries

Africa tourism market

International tourists’ arrivals and revenues from international tourism,

1950-2013Year Tourists’ arrivals, mln. Growth rate, % to the

previous periodRevenues from tourism,

bln. dol.Growth rate, % to the

previous period

1950 25 - 2 -

1960 69 176,0 7 250,0

1970 160 131,8 18 157,1

1980 285 78,1 102 466,7

1990 459 61,0 265 159,8

2000 686 49,5 476 79,6

2001 684 -0,3 463 -2,7

2002 703 2,8 474 2,4

2003 691 -1,7 525 10,8

2004 763 10,4 622 18,5

2005 806 5,6 680 9,3

2006 842 4,5 733 7,8

2007 898 6,65 745 1,7

2008 924 1,8 944 10,3

2009 880 -4,76 852 -9,7

2010 935 6,7 919 7,9

2011 996 6,5 1042 13,4

2012 1035 3,9 1075 3,2

2013 1088 5,1 - -

Changes of the tourists’ arrivals in Asia’s and Pacific countries in 1997-

1998

1997 1998

-8

-7

-6

-5

-4

-3

-2

-1

0

1

2 +0,9%

-3,1%-2,1%

-6,9%

Arrivals from abroad Arrivals from the Easter Asia's and Pacific countries

International tourists’ arrivals and revenues from international tourism,

1950-2013Year Tourists’arrivals, mln. Growth rate, % to the

previous periodRevenues from tourism,

bln. dol.Growth rate, % to the

previous period

1950 25 - 2 -

1960 69 176,0 7 250,0

1970 160 131,8 18 157,1

1980 285 78,1 102 466,7

1990 459 61,0 265 159,8

2000 686 49,5 476 79,6

2001 684 -0,3 463 -2,7

2002 703 2,8 474 2,4

2003 691 -1,7 525 10,8

2004 763 10,4 622 18,5

2005 806 5,6 680 9,3

2006 842 4,5 733 7,8

2007 898 6,65 745 1,7

2008 924 1,8 944 10,3

2009 880 -4,76 852 -9,7

2010 935 6,7 919 7,9

2011 996 6,5 1042 13,4

2012 1035 3,9 1075 3,2

2013 1088 5,1 - -

World tourists’ arrivals in 2001

Series1

-10

-8

-6

-4

-2

0

2

4

-0,3

2.9

-9.2

2001

January-August

September-December

Ch

ang

es,

%

International tourists’ arrivals and revenues from international tourism,

1950-2013Year Tourists’ arrivals, mln. Growth rate, % to the

previous periodRevenues from tourism,

bln. dol.Growth rate, % to the

previous period

1950 25 - 2 -

1960 69 176,0 7 250,0

1970 160 131,8 18 157,1

1980 285 78,1 102 466,7

1990 459 61,0 265 159,8

2000 686 49,5 476 79,6

2001 684 -0,3 463 -2,7

2002 703 2,8 474 2,4

2003 691 -1,7 525 10,8

2004 763 10,4 622 18,5

2005 806 5,6 680 9,3

2006 842 4,5 733 7,8

2007 898 6,65 745 1,7

2008 924 1,8 944 10,3

2009 880 -4,76 852 -9,7

2010 935 6,7 919 7,9

2011 996 6,5 1042 13,4

2012 1035 3,9 1075 3,2

2013 1088 5,1

Leading countries in tourists’ arrivals and the revenues from international

tourism ,2012 Країна Rating Tourists’

arrivals, 2012, millions

Share in world

tourists’ arrivals

Revenues 2012,

billions dollars

Share in world

tourism revenues

Tourists’ arrivals

Revenues

France 1 3 83,0 8,0 53,7 5,0

USA 2 1 67,0 6,5 126,2 11,7

China 3 4 57,7 5,6 50,0 4,6

Spain 4 2 57,7 5,6 55,9 5,2

Italy 5 6 46,4 4,5 41,2 3,8

Turkey 6 12 35,7 3,4 25,7 2,4

Germany 7 7 30,4 2,9 38,1 3,5

United Kingdom 8 8 29,3 2,8 36,4 3,4

Russian Federation 9 27 25,7 2,5 11,2 1,0

Malaysia 10 13 25,0 2,4 19,7 1,8

Total for 10 countries 457,9 44,2 458,1 42,6

1035 100 1075 100

Structural changes in tourists’ expenses and tourists’ arrivals in 1990-2012 (by countries’ groups)

Group Share in tourists’ expenses, % Share in tourists’ arrivals, %

1990 1995 2000 2004 2010 2012 1990 1995 2000 2004 2010 2012

Developed countries

74,7 74,0 73,0 63,0 63,1 64,1 71,0 64,0 61,0 59,0 53,0 53,2

Developing countries

25,1 24,0 25,0 32,0 36,9 35,9 28,0 31,0 32,0 37,0 47,0 46,8

Central and Eastern Europe and CIS’s countries

0,2 2,0 2,0 5,0 - - 1,0 5,0 7,0 4,0 - -

Regional structure’s changes in the world tourists’ arrivals

Europe 68,2%

America 25,5%

Asia and Pacific 3,2%Others 3,1%

Chart Title

1970

Europe 50%

Middle East; 0,02Southern Asia 1%

Africa 3%

America 26%

Asia and Pacific 18%

Chart Title

2001

2013

Europe52,0%

America15,0%

Eastern Asia and Pacific23,0%

Africa 5,0%

Middle East 5,0%

Forecasted changes in the regional structure of tourists’ arrivals,

2020 -2030, %

Region Arrivals, millions Market share, %

2020 2030 2020 2030

World 1360 1809 100 100

Africa 85 134 6,25 7,4

America 199 248 14,6 13,7

Asia and Pacific

355 535 26,1 29,6

Europe 620 744 45,6 41,1

Middle East 101 149 7,45 8,2

Factors that will influence on the world tourism market’s

development

Globalization; Changes in currencies’

exchange rates; Visa’s regimes changes; Anthropogenic catastrophes

and natural disasters.