Tertiary Activity

• Involves industries which provide services for people.

Examples: Doctor, lawyer, waitress, tourism industry, mechanic, teacher.

Public vs. Private Tertiary ActivityPublic service industry• is usually run by the government and is available to anyone in

society.

• Ex. Health care, public transportation, education.

Private service industry • is run by private business and requires that a profit be made

from the service.

• Ex. mechanics, lawyers, tourism.

NOTE:• some careers in the tertiary sector can be classified as public

or private. Ex: A teacher can work in the public school system or for a private college.

Four Categories of Tertiary Activity1. Distributive activities:• distribution or movement of goods

• involves the transportation and sale of all products from manufacturer to consumer.

• Ex. truck driver, warehouse manager, sales person.

2. Financial Activity:

• involves banks, insurance companies, financial advising companies, and trust companies.

3. Personal Service:

• involves a wide range of services from legal services, to food services, to entertainment and counselling services.

4. Government service: • Public service industry is operated by Government and is not

for profit. • Paid for by Tax payers!! • Ex. Education, health care, mail, water, sewer, roads. Hence

the term “ public servant”.

Which category of Tertiary Activity is each of the following?a. Sameday Courier drops off a Christmas present

from your Uncle…b. You get fungus removed from your feet at the Foot

Spa…c. The town removes snow from your street after a

snow storm…d. You buy stocks in Abitibi-Bowater from a local stock

broker…e. You have your Poodle shaved and groomed…f. You order a piece of clothing from the catalogue at

Sears…

Four Categories of Tertiary Activity

Factors Affecting the Location of Tertiary Activity

1. Proximity & price are two key factors.

• Location: services must be located close to a large enough market to produce DEMAND.

• Viability: services are only viable as businesses if the demand is high enough & the price is reasonable.

2. Service Availability vs. Population Size.

• Larger populations support a wider range of services.

• Consider: Health services, education, recreation facilities, shopping facilities, hotels, restaurants and you will see that the RANGE of services available is directly related to community size.

Importance of the tertiary industry

• Service industries provide services needed by ALL of society!

• They provide services to the primary, secondary AND the tertiary industries.

• Without these services, society could not operate.

• The range of services include:– financial, insurance, real estate, trade, transportation and

communications, retailing, government, health care, education, personal care, tourism, recreation, etc.

• Services are more evident in cities and towns because there are more people living in urban areas.

• Services provide jobs and tax money.

The Growing Tertiary Industry• The tertiary industry has expanded significantly in the last

100 years.• Figure 14.3 on page 243 of your text shows that in Canada

the tertiary sector of the economy has grown from 36% of GNP - 73% of GNP over the last 100 years.

Why the tertiary industry is growing.

• The multiplier effect is in part responsible for this phenomenon.

• As the secondary sector of the economy grew, there were more people working in urban areas as manufacturers.

• The concentration of people meant there was more need for services. Service industries grow in turn.

• The people working in the tertiary industry need services too so the growth of the service industry continues.

• We will look at two tertiary growth sectors in particular, International tourism and information technology.