Last Updated 28 May 2020

Business Tourism- Main Characteristics

Category Tourism
Essay type Research
Words 1447 (5 pages)
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This report is showing the importance of business tourism in the modern world, its benefits and advantages comparing to the other types of tourism and slighting all the challenges and problems the industry is facing these days. First, I will explain why business tourism has developed so much since sass, and what are the treats of business tourism crucial to Its further development in future. [pal] 1 . What Is business tourism, definition and division Business tourism or business travel Is a more Limited and focused subset of regular tourism.

During business tourism (traveling), Individuals are still working and being paid, but they are doing so away from both their workplace and home-some definitions of tourism tend to exclude business travel. However, the World Tourism Organization (WTFO) defines tourists as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes". Primary business tourism activities include meetings, and attending conferences and exhibitions.

Despite the term business in business tourism, when individuals from government or non-profit organizations engage in similar activities, this Is still categorized as business tourism (travel). Compared to regular tourism, business ones involves a smaller section of the population, with efferent motivations, and additional freedom-of-choice Limiting constrains Imposed through the business aspects. Destinations of business tourism are much more likely to be areas significantly developed for business purposes (cities, Industrial regions, An average business tourist is more wealthy than an average leisure tourist, and secondary activities.

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Primary one are business (work) related, and included activities such as consultations, inspections, and attending meetings. Secondary ones are related to tourism (leisure) and include activities such as dining out, recreation, hopping, sightseeing, meeting others for leisure activities, and so on. While the primary ones are seen as more important, the secondary ones are nonetheless often described as "substantial". Business tourism can involve individual and small group travel, and destinations can include small to larger meetings, including conventions and conferences, trade fairs, and exhibitions.

Business tourism can be divided into: traditional business traveling, or meetings - intended for face-to-face meetings with business partners in different locations incentive trips - a Job perk, aimed at titivating employees and exhibition traveling - intended for attending large scale meetings. 2. Why business tourism is growing so much. The development of business tourism since 1950 till now. There are many factors that lead to the growth of demand as well as the positive changes on the supply side facilitated the growth of the business tourism.

Its growth started since Industrial Revolution and maintenance of colonies by European powers and developed more since 1950, when the private car was invented . The concept of convention or conference were first invented in the U. S. A. 3. Benefits and advantages of the industry a. Business tourism is generating high revenues of the economy Business tourists are not attractive on a total spend basis when compared to other categories of travelers, but on a spend per day level they perform they are among highest. The length of stay of business tourists is in general shorter than for other visitor types.

However there is an opportunity to increase length of stay by encouraging post-tours to extend length of stay. The business tourism sector provides an excellent opportunity for previously disadvantaged enterprises to play a role in the provision of revises to them across the value There is a large and very lucrative domestic market which is the responsibility of the regional and local tourism authorities . There is a strong and correlative relation between the national economy of the countries and business tourism.

Because this sector usually would promote national industry, enhance communication channels and upgrade quality of manpower in different economic sectors, such as agriculture sector, petroleum sector, communication sector, tourism sector, education and training sector, health sector, vocational associations, etc. Business tourism is able to gain many economic fruits for the interest of the national economy. It is considered a key driver for temporary and permanent Jobs. Many governments in the world list business tourism outputs within gross domestic products as well as while analyzing the cost output of public investment in the sector.

The sector generates a large number of permanent and temporary Jobs in the field of events' supply chain, organization and management in addition to Many countries rely on business tourism for the provision of employments to their citizens. For example, the population of Melbourne city in Australia, is around 4 lion people, over 22,000 of them are employed in the business tourism sector. The business tourism sector has many other economic benefits which could be outlined as follows: Direct economic impacts Residence, transport and tourism services' expenses paid by the international visitors of exhibitions and conferences.

Growth of investments in business tourism, which includes establishing city centers, facilities of conferences and exhibitions, conference and exhibitions centers organizing companies, events organizing companies, suppliers of events, destinations management companiesћ etc. Growth of investments in business tourism, which includes establishing city centers, facilities of conferences and exhibitions, conference and exhibitions centers organizing companies, events organizing companies, suppliers of events, destinations management companiesћ etc.

Revenues of owners and the organizing authorities of exhibitions and conferences including (sponsorships, registration fees, sale of exhibitors' spaces, selling media copyright, penalties, and gifts sales). Revenues of business tourism suppliers. Trade exchange and deals which are concluded during exhibitions and conferences. Marketing products of sponsors of the conferences and exhibitions. Rise of promotional activities. Indirect economic impacts Expenses paid by visitors of conferences and exhibitions to general services. Expenses of gifts paid by business tourism visitors.

Sales of farmers, factories and service suppliers. Contribution of business tourism in urban development and development of infrastructure. Highlighting investment opportunities in the destination in which the exhibition or conference is held. B. Highly competitive global industry Business tourism is one of the leading and most dynamically developing spheres of oral economy, because a successful business is impossible without contacts, exchange of technologies and information, exhibitions, congresses, and business trips. Technology continues to grow in importance throughout the business tourism sector.

There are numerous forms of social media now available to make events more accessible and interactive with delegates. 4. Issues Trends Impacting Business in the Sector. The Problems and Challenges of the Industry. The industry faces an ever-rising tide of legislation and regulation which not only adds cost but presents considerable challenges as well. More political interference With the increased focus on tourism because of The Olympics in 2012, more political 'interference' in the short to medium term is to be expected. B.

Environmental threats Following the 2006 Stern Report, the issue of climate change has been pushed right up the political agenda. Organizers now have to include recommendations for offsetting the potential environmental damage an event may cause. C. Needs for the service improvement The industry needs to ensure that services levels and professionalism within the industry is improved and constantly maintained. The accreditation / grading of equines tourism suppliers will assist in setting and maintaining world class service levels and professionalism as will improved skills development. . The impact of economic downturn of 2011. Traditional meeting spaces are no longer the key aspect of a successful venue. Destinations which are abroad, but closer to 'home' are becoming more popular, in order to keep costs to a minimum. There has also been a growth in more niche venues to host meetings in order to give a more personal feel for attendees. This is linked with the growth in demodulating exercises within the meeting and conference sector. Incentives have also suffered with many organizations deciding to cut the number of on-site gifts for delegates.

This has also been coupled with organizations only choosing to send their attendees to venues which limit travel costs. It had been suggested that business travel and tourism had suffered due to a 'double- depression's however,positive employment figures and levels of investment would suggest that the sector remains in a healthy condition despite economic woes. E. The development of the new information technologies and virtual reality. This can educe the overall demand for business travel or replace it, but some scholars argue that the social dimension of business travel may reduce this impact.

Conclusion As we could see from the analysis of the benefits of the business tourism , the industry is highly advantageous and many efforts should be done in order to develop this industry. The more business tourism industry is developed, the more other spheres of economy as well as environment will benefit. .The industry is highly technological and competitive but recently facing some problems such as environmental problems, the rise of digital reality which can supposedly replace the equines travel, and still some economic downturns are impacting the industry.

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