International Trade In Tourism Related Services

Author : Adam Starchild
Publisher :
ISBN 13 : 9780894992353
Total Pages : 124 pages
Book Rating : 4.9/5 (923 download)

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Download or read book Worldwide Opportunities in Travel and Tourism written by Adam Starchild and published by . This book was released on 2005 with total page 124 pages. Available in PDF, EPUB and Kindle. Book excerpt: During the last quarter of the 20th century, the travel and tourism industry has developed into one of the fastest growing sectors of the global economy. More people than ever travel for business and pleasure to destinations around the world. In the U.S., travel and tourism account for close to 7% of the GNP, making it the second largest sector of the country?s economy. In 1999, U.S. travel agencies sold close to $50 billion worth of tickets and billions more in travel-related services. As impressive as these numbers are, they are only a part of the travel services sold throughout the world. Travel and tourism have clearly become big business. There are many reasons for this. Competition among international and regional airlines has made air travel accessible and affordable for people everywhere. Many countries-particularly those of the former Communist bloc-that once discouraged visitors have opened their borders and now welcome tourists and the money they bring. The population of the U.S., as well as Asia and Japan, is graying. Many of these individuals are at the peak of their earning years, their children are grown or nearly grown, and they enjoy much discretionary income. While they may not consider themselves wealthy, they can afford to travel, which they do regularly. Moreover, there is a significant and growing "retired" population in many Western countries that enjoys traveling. These factors virtually ensure continued growth for the travel and tourism industry, both in the U.S. and throughout the world. The travel and tourism industry is broad and diversified. In its narrowest definition, it includes those enterprises directly related to travel-airlines, cruise lines, travel agents, hotels, car rental companies, and tours. At its broadest, it includes any business that concentrates the bulk of its operation on travel- or tourist-related activities. These might include restaurants, night clubs, gift shops, amusement and theme parks, campgrounds, marketing firms that specialize in travel and tourism, and special activities such as horseback riding, white-water rafting, and skiing. Of course, these are just some examples, and creative entrepreneurs can undoubtedly find countless niche businesses that can provide special products or services to travelers and vacationers. Entrepreneurs will undoubtedly find numerous opportunities in the industry. Indeed, it is not so difficult finding an opportunity, but rather choosing the best one, an enterprise that is personally satisfying and which has a superior chance for success and profitability. While many large businesses account for millions of travel and tourism dollars, the industry has plenty of room for small operations. It has, in fact, been estimated that up to 99% of the U.S. businesses whose major activity is travel and tourism are considered to be small by federal standards. Herein lies the great opportunities for entrepreneurs. Many businesses whose services and products that target tourists and travelers can be started for minimal investments. This is especially true in many countries whose governments encourage investment in an effort to stimulate local economies and expand the travel and tourism industry within their borders. Many nations foster economic development and investment through a variety of incentives, including reduced tax rates, tax holidays, or special grants to underwrite the cost of facilities or train local workers. Such incentives can greatly enhance an operation?s overall profitability. Because much of the United States is saturated with businesses that serve the needs of travelers, the greatest opportunities for entrepreneurs in the travel and tourism sector are found in other lands. While travel and tourism companies abound in places like the Bahamas, Bermuda, and the Cayman Islands, there are numerous other sites where the opportunities are boundless. As the global economy expands, many of these places are on the verge of becoming major tourist and travel sites, but they have not achieved that status yet. There is plenty of opportunity for enterprising individuals to start and build companies. The key is to identify these sites and establish a business before the competition arrives. This, obviously, can be difficult when considering foreign sites located around the world. It is essential that you personally visit any place in which you are considering investing. Selecting possible investment sites from brochures, videos provided by embassies, or tips from friends or colleagues is one of the surest ways to secure failure and nothing else. So how does one manage to visit potential sites that may be found in Europe, the Middle East, Asia, Africa, or South America without incurring burdensome travel costs? You might, for example, plan your vacation to the Nevis, the Azores, or Seychelles and use some of your time there to scout potential tourism investments. In this way you are combining pleasure and business and may even be able to deduct some of the expenses from your taxes. This is not the most efficient method, though. By far the best is to use your enthusiasm for entrepreneurship and establish a home-based travel agency. Once you establish a travel agency you will gain numerous advantages. Along with being able to deduct business expenses which can reduce your tax burden, you will be able to take advantage of familiarization tours offered by travel-service providers. Such tours, usually offered at deep discounts, will give you the opportunity to visit various places around the world, where you can evaluate potential investments. Not only will you have the chance to see the area and mingle with its people, you will be able to assess the business climate and potential for investment. You can benefit from establishing a travel agency even if you limit the scope of your agency. Most home-based travel agents work with host agencies, larger agencies which provide tickets and in many cases manage the bookings for lodging. The home-based travel agent?s primary task is to provide clients for the host agency. Nonetheless, the home-based agent enjoys all of the advantages of being a travel agent. For the entrepreneur who seeks to build a travel/tourism business, establishing a travel agency is the first step to worldwide investment. The usual cautions, of course, apply. Although opportunities in travel and tourism may be found the world over, creating a successful business requires good business sense, an understanding of how to properly build a company, and hard work. For those entrepreneurs capable of satisfying these demands, the returns are truly great. Few enterprises are as challenging, exciting, and rewarding as creating a business in an area in which the potential for growth is exceptional and one?s success is entirely dependent upon his or her knowledge and business skills. The travel and tourism sector offers such opportunity in locations around the world. Over the past several years, travel and tourism have constituted one of the fastest growing sectors in the world economy. For much of the past three decades, annual growth has averaged 10% or more, with several countries averaging significantly more. This trend is expected to continue, fueled by increasing numbers of people who travel for pleasure and business.