The Explosion of International Tourism
Read an interesting article from the Harvard Business Review courtesy of my college. Focusing on trends on the business horizon, international travel is expected to double, from 800 million international visits in 2008 to 1.6 billion visits in the year 2020. Looking at the economics of this trend, there can be only so many people that can visit museums or enjoy a beach. The demand for traveling to popular destinations will create a scarcity of place, according to the article.
The article gives 3 probable market responses: First, as demand will skyrocket past supply, tourism relate costs will rise dramatically, from hotel rooms in world cities to even taxis and airplane availability. There will soon be scalpers not just for sporting events and concerts, but soon for airline tickets and passes to museums or parks. Government will also control demand by putting taxes on travel to destinations. One example is the Galapagos Islands of Ecuador, as more and more people coming to visit, the trend is impacting the ecosystem, which is leading to talks of raising parks entrance fee or restricting visitors, which leads to second…. Wait lists.
Expect to be on wait list for months, even years, before you can travel to popular destinations. With these wait lists forming, leading to number three, you can expect the creation of new destinations, more like replications of the wait listed places. For example, China is currently developing islands like Macao to rival Hawaii. You see it here in America, with casinos popping up in major cities, or the Indian casinos here in California, drawing business away from Las Vegas.
As scarcity of popular travel destinations around the world grows, there will be tons of opportunity to profit from the ever growing demand. I found this particular trend very interesting, and I am going to try and discover trends similar to world travel in the future. For instance, like the summer Olympics in Beijing this summer, I am going to look at investment opportunities in South Africa for preparation of World Cup 2010, perhaps the biggest sporting event in the world.
Any opportunities that you recognize or can think of with this trend in mind?
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3 Comments for “The Explosion of International Tourism”
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I'm currently a full time student at Sacramento State University, where I'm studying Journalism and Communications. At 2o years old, I frequently face the question of what I want to do in my life. This blog serves as a platform for myself to write and explore about Personal Development, Lifestyle Design, Interpersonal Communication, and anything random that interests me. I enjoy watching basketball and real football (soccer). I'm also a racquetball enthusiast.
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Me and a partner are starting this: http://www.badasstravel.com/
We figure there are plenty of Americans that want to travel solo but want to be shown how first. We host adventure trips with this in mind.
Matadortravel.com is another great up and comer.
When researching for our company we found, by accident, that there is a market you could probably call the Tim Ferriss Market - a segment of the population that, like me and like he has done, wants to be freed up and travel.
Very interesting….I like what you have going on there. International travel is something I see myself experiencing and profiting from in the near future. Huge opportunities personally and financially….
I wrote about Dubai some time ago, and the emirate’s attempt to tap this “explosion of international tourism.’
It all makes sense, though — despite the fact that the US economy is currently not doing so hot, some of the world’s most heavily populated countries are also up-and-comers in the global economy. The citizens of those countries start making money, and for the first time, they have disposable income… I know that if I were in that position, I would want to travel.
I think that you have pegged a major issue that has yet to spark a media panic - scarcity of place - and we would all do well to keep that in mind.