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Tourism in Middle America
AttendanceTourismExam 3 TuesdayQuiz 6
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Tourism in Middle America
General OverviewTourism in MexicoEcotourismCruise Ship Industry
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Tourism
• Tourism, broadly defined, is the world’s largest industry
• Generates 10% of the world’s GDP• World’s largest employer• Employs ~255 million people
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Leakage of Tourism Revenues
in the developing world
What is leakage?~Foreign capital inputs for delelopment~Foreign tour and travel operators~Demand for imported goods and services~World bank estimates that over 50% of all tourism revenue in delveloped counties
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Tourism in Mexico
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•Mexico is the most popular tourist destination in Latin America (21.4 million visitors in 2006)•8th most popular worldwide•Accounts for ~ 14.2% of employment in Mexico•3 main areas
• Beach resorts• Archeological sites• Border zone
Mexican Tourism
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Resort Tourism
‘Club Mex’ is much less Mexican than other parts of the country•Tourism as economic development:
• Pursued by Gov’t• Mostly in areas of
relatively limited industrial development.
• Created the necessary infrastructure
• Allow foreign investors to have access to rather remote regions
• Generally ‘all inclusive’ with limited impact on local economy
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Riviera Maya
•Coastal strip in the Mexican State of Quintana Roo•Dubbed the Mayan Riviera in 1999•Stretches from Playa del Carmen in the N. to Tulum in the S.
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Pacific Resort Areas: Mexican
Riviera
•Cabo San Lucas•Mazatlan•Puerto Vallarta•Acapulco•Puerto Escondido
•Different foci at each location
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•Most popular tourist destinations in Mexico•Often located within a short trip of beach resorts•Major sites include
• Chichen Itzá• Teotihuacan• Tulum• Monte Alban• Palenque
Archeological Tourism
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Chichen Itza•Name means “at the mouth of the well of Itza”•Prominent ~ 600-900 AD•Ruled by a council of elites as opposed to a single ruler•Decline ~1000 AD (?)•El Castillo: Temple of Kukulkan (Quetzalcoatl)•Temple of Warriors•El Caracol: observatory
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Teotihuacan
•Located ~25 Miles NE of Mexico City•Named applied by Aztecs, ‘birthplace of the gods’•Earliest bldgs ~200 BC•Pyramid of the sun ~100 AD
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•Generally provides a warped view of Mexico for tourists•Often associated with seedier activities
• Drugs• Prostitution
•Negative impact of recent violence•Recent trend of medical tourism
Mexico’s Border Tourism
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Ecotourism
“Ecotourism is responsible travel to natural areas which conserves the environment and improves the welfare of local people.”
- The Ecotourism Society
•Soft (General) Ecotourism•Hard Ecotourism •Adventure Ecotourism•Educational Ecotourism
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Ecotourism as a market segment
C u ltu ra l to u rism R u ra l to u rism
E co tou rism A d ven ture tou rism
N a tu re to u rism S u n-a nd -b ea chto u rism
B u s in e ss T ra ve l F itn e ss -w e lln e ssa nd he a lth
to u rism
T o u rism M a rke t
Source: World Tourism Organization 2001
WWF claims that 20% of revenue generated from tourism in developing countries is due to ecotourism.
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Ideally Ecotourism:• Provides valuable
financing for parks and conservation efforts
• Serves as economic justification for the preservation of nature parks and wildlife
• Reduces exploitation of conservation areas by supplying local peoples with viable economic alternatives
• Promotes environmental awareness and conservation
Objectives of Ecotourism
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Negative Environmental
Impacts
•Disruption of habitat by infrastructure and tourists•Cabo Blanco Reserve: 1963 Costa Rica’s 1st National Park
• Howler monkey population down 40%
• White-faced monkey down 27%
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Negative Socio-economic impacts
•Disruption of local cultures/values•Exploitation of local labor•Increased cost of local goods and services•Limits on other economic activities•Vulnerability to global market fluctuations
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•Ecotourism boom began in late 1980s•By 2000 generating over $1 billion annually•Costa Rica has 5% of the world’s biodiversity with only 0.03% of the land!!•Highest percentage of protected areas in the world (26-28%)•Sharing the wealth: most ecotourism enterprises are small and locally owned – 70% of all hotels in Costa Rica have < 20 rooms•http://www.youtube.com/watch?v=MeynzQz4SXk
Ecotourism in Costa Rica
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The Main Sources of Travelers to Costa Rica
Percentage of Total Number of
Tourists1. US 48.7%
2. Canada 5.3%
3. Colombia 4.8%
4. Mexico 4.1%
5. Spain 3.2%
6. Germany 2.9%
(American Embassy, San José, 2001)
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Breakdown of Revenues
Costa Rican Agents•Hotel 10%•Transportation 8%•Meals 7%•Guides 4%•Entrance Fees 4%•Other 5%
________38%
International Agents•Airline 33%•Tour Operator 23%•Other6%
________62%
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Cruise Ship Industry
• Industry began in the 1960s with excursions for the rich
• Grown to include the general population• 3 major corporations make up two thirds of the
cruise ship industry• Royal Caribbean Cruises Ltd.• Carnival Corporation• P&O Princess Cruises plc.
• Each ship can carry upwards of 2,500 passengers• Ships are like floating cities that provide for all
the consumptive and entertainment needs of their passengers
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Oasis of the Seas
•World’s largest cruise ship•Built in Finland•Launched Oct. 30, 2009•Owned by Royal Caribbean•Cost $1.6 billion•20 stories high•Can accommodate 6300 passengers
•http://www.youtube.com/watch?v=AAwUtFSh24Q
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Flags of Convenience
•Many cruise ships operate under flags of convenience•Allows ship operator to avoid some taxes and regulations
Common Sources•Bahamas•Antigua•Liberia•Panama•St. Vincent
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Caribbean Cruising
•The Caribbean is the only cruising area that is active year-round.•Caribbean cruise industry is divided into East, West, and South
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Western Caribbean
•45.8% of passengers•Includes: Cayman Islands, Dominican Republic, Haiti, Martinique•Amenities: snorkeling, diving, cultural/historical sites
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Eastern Caribbean
•38.3% of passengers•Includes: Bahamas, Virgin Islands, Puerto Rico, St. Maarten, St. Kitts•More developed ports•Amenities: snorkeling, fishing, shopping
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Southern Caribbean
•15.9% of passengers•Includes: Aruba, Bonaire, Curacao, Grenada•less developed ports•Amenities: snorkeling, diving, nature tourism
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Top 10 Cruise Destinations 2007
Destination Percentage of IndustryCaribbean 40.69% (*48.1%)Mediterranean 12.6%Alaska 8.3%Mexico (West Coast) 7.45%Europe 7.14%*Bahamas 5.69%Hawaii 3.76%Trans Canal 3.52%South America 1.83%*Bermuda 1.72%
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Economic Impact in the Caribbean (2007 data)
• Estimated 12.6 million Passengers in 2007• Total annual economic impact of
over $2.6 billion (1.4 direct, 1.2 indirect)• 60,136 jobs throughout the Caribbean• $600 million in wage income• Average cruise passenger spending per port of
call ~ $103.88 • The typical cruise ship carrying 2,000
passengers and 900 crew members generates nearly $300,000 in passenger and crew expenditures during a single port-of call visit!
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Ports of Call
Passengers disembark for a short period of timeExcessive crowding of port areas during busiest months
Top Ports of Call•Bahamas 1.8 million•V. Islands 1.2 million•St. Maarten 718K•Puerto Rico 680K•Cayman Is. 599K•Jamaica 595K