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INTRODUCTION TO TOURISM AND
HOSPITALITY IN BC
Chapter 1. History and Overview
Learning Objectives
- (^) Specify the commonly understood definitions of tourism and tourist
- Classify tourism into distinct industry groups using North American Industry Classification Standards (NAICS)
- Define hospitality
- Gain knowledge about the origins of the tourism industry
- Provide an overview of the economic, social, and environmental impacts of tourism worldwide
- Understand the history of tourism development in Canada and British Columbia
- Analyze the value of tourism in Canada and British Columbia
- Identify key industry associations and understand their mandates
What Is Tourism?
Before engaging in a study of tourism , let’s have a closer look at what this term means.
Definition of Tourism
There are a number of ways tourism can be defined, and for this reason, the United Nations World Tourism Organization (UNWTO) embarked on a project from 2005 to 2007 to create a common glossary of terms for tourism. It defines tourism as follows:
Tourism is a social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes. These people are called visitors (which may be either tourists or excursionists; residents or non-residents) and tourism has to do with their activities, some of which imply tourism expenditure (United Nations World Tourism Organization, 2008).
Using this definition, we can see that tourism is the movement of people for a number of purposes (whether business or pleasure).
Definition of Tourist
Building on the definition of tourism, a commonly accepted description of a tourist is “someone who travels at least 80 km from his or her home for at least 24 hours, for business or leisure or other reasons” (LinkBC, 2008, p.8). The United Nations World Tourism Organization (1995) helps us break down this definition further by stating tourists can be:
1. Domestic (residents of a given country travelling only within that country)
2. Inbound (non-residents travelling in a given country)
3. Outbound (residents of one country travelling in another country)
The scope of tourism, therefore, is broad and encompasses a number of activities.
Spotlight On: United Nations World Tourism Organization (UNWTO)
UNWTO is the United Nations agency responsible “for the promotion of responsible, sustainable and universally accessible tourism” (UNWTO, 2014b). Its membership includes 156 countries and over 400 affiliates such as private companies and non- governmental organizations. It promotes tourism as a way of developing communities while encouraging ethical behaviour to mitigate negative impacts. For more information, visit the UNWTO website: http://www2.unwto.org/.
NAICS: The North American Industry
Classification System
Given the sheer size of the tourism industry, it can be helpful to break it down into broad industry groups using a common classification system. The North American Industry Classification System (NAICS) was jointly created by the Canadian, US, and Mexican governments to ensure common analysis across all three countries (British Columbia Ministry of Jobs, Tourism and Skills Training, 2013a). The tourism-related groupings created using NAICS are (in alphabetical order):
1. Accommodation
2. Food and beverage services (commonly known as “F & B”)
3. Recreation and entertainment
4. Transportation
5. Travel services
These industry groups are based on the similarity of the “labour processes and inputs” used for each (Government of Canada, 2013). For instance, the types of employees and resources required to run an accommodation business — whether it be a hotel, motel, or even a campground — are quite similar. All these businesses need staff to check in guests, provide housekeeping, employ maintenance workers, and provide a place for people to sleep. As such, they can be grouped together under the heading of accommodation. The same is true of the other four groupings, and the rest of this text explores these industry groups, and other aspects of tourism, in more detail.
The Hospitality Industry
When looking at tourism it’s important to consider the term hospitality. Some define hospitality as “the business of helping people to feel welcome and relaxed and to enjoy themselves” (Discover Hospitality, 2015, ¶ 3). Simply put, the hospitality industry is the combination of the accommodation and food and beverage groupings, collectively making up the largest segment of the industry. You’ll learn more about accommodations and F & B in Chapter 3 and Chapter 4, respectively.
Before we seek to understand the five industry groupings in more detail, it’s important to have an overview of the history and impacts of tourism to date.
Tourism impacts can be grouped into three main categories: economic, social, and environmental. These impacts are analyzed using data gathered by businesses, governments, and industry organizations.
Economic Impacts
According to a UNWTO report, in 2011, “international tourism receipts exceeded US$1 trillion for the first time” (UNWTO, 2012). UNWTO Secretary-General Taleb Rifai stated this excess of $1 trillion was especially important news given the global economic crisis of 2008, as tourism could help rebuild still-struggling economies, because it is a key export and labour intensive (UNWTO, 2012).
Tourism around the world is now worth over $1 trillion annually, and it’s a growing industry almost everywhere. Regions with the highest growth in terms of tourism dollars earned are the Americas, Europe, Asia and the Pacific, and Africa. Only the Middle East posted negative growth at the time of the report (UNWTO, 2012).
While North and South America are growing the fastest, Europe continues to lead the way in terms of overall percentage of dollars earned (UNWTO, 2012):
- Europe (45%)
- Asia and the Pacific (28%)
- North and South America (19%)
- Middle East (4%)
Global industry growth and high receipts are expected to continue. In its August 2014 expenditure barometer, the UNWTO found worldwide visitation had increased by 22 million people in the first half of the year over the previous year, to reach 517 million visits (UNWTO, 2014a). As well, the UNWTO’s Tourism 2020 Vision predicts that international arrivals will reach nearly 1.6 billion by 2020. Read more about the Tourism 2020 Vision: http://www.e-unwto.org/doi/abs/10.18111/
Social Impacts
In addition to the economic benefits of tourism development, positive social impacts include an increase in amenities (e.g., parks, recreation facilities), investment in arts and culture, celebration of First Nations people, and community pride. When developed conscientiously, tourism can, and does, contribute to a positive quality of life for residents.
However, as identified by the United Nations Environment Programme (UNEP, 2003a), negative social impacts of tourism can include:
- Change or loss of indigenous identity and values
- Culture clashes
- Physical causes of social stress (increased demand for resources)
- Ethical issues (such as an increase in sex tourism or the exploitation of child workers)
Some of these issues are explored in further detail in Chapter 12, which examines the development of Aboriginal tourism in British Columbia.
Environmental Impacts
Tourism relies on, and greatly impacts, the natural environment in which it operates. Even though many areas of the world are conserved in the form of parks and protected areas, tourism development can have severe negative impacts. According to UNEP (2003b), these can include:
- Depletion of natural resources (water, forests, etc.)
- Pollution (air pollution, noise, sewage, waste and littering)
- Physical impacts (construction activities, marina development, trampling, loss of biodiversity)
The environmental impacts of tourism can reach outside local areas and have an effect on the global ecosystem. One example is increased air travel, which is a major contributor to climate change. Chapter 10 looks at the environmental impacts of tourism in more detail.
Whether positive or negative, tourism is a force for change around the world, and the industry is transforming at a staggering rate. But before we delve deeper into our understanding of tourism, let’s take a look at the development of the sector in our own backyard.
Canada Overview
Origins of Tourism in Canada
Tourism has long been a source of economic development for our country. Some argue that as early as 1534 the explorers of the day, such as Jacques Cartier, were Canada’s first tourists (Dawson, 2004), but most agree the major developments in Canada’s tourism industry followed milestones in the transportation sector: by rail, by car, and eventually, in the skies.
The dawn of the railway age in Canada came midway through the 19th century. The first railway was launched in 1836 (Library and Archives Canada, n.d.), and by the onset of World War I in 1914, four railways dominated the Canadian landscape: Canadian Pacific Railway (CPR), Canadian Northern Railway (CNOR), the Grand Trunk Railway (GTR), and the Grand Trunk Pacific (GTP). Unfortunately, their rapid expansion soon brought the last three into near bankruptcy (Library and Archives Canada, n.d.).
In 1923, these three rail companies were amalgamated into the Canadian National Railway (CNR), and together with the CPR, these trans-continentals dominated the Canadian travel landscape until other forms of transportation became more popular. In 1978, with declining interest in rail travel, the CPR and CNR were forced to combine their passenger services to form VIA Rail (Library and Archives Canada, n.d.).
The Rise of the Automobile
The rising popularity of car travel was partially to blame for the decline in rail travel, although it took time to develop. When the first cross-country road trip took place in 1912, there were only 16 kilometres of paved road across Canada (MacEachern, 2012). Cars were initially considered a nuisance, and the National Parks Branch banned entry to automobiles, but later slowly began to embrace them. By the 1930s, some parks, such as Cape Breton Highlands National Park, were actually created to provide visitors with scenic drives (MacEachern, 2012).
It would take decades before a coast-to-coast highway was created, with the Trans-Canada Highway officially opening in Revelstoke in 1962. When it was fully completed in 1970, it was the longest national highway in the world, spanning one-fifth of the globe (MacEachern, 2012).
Early Tourism Promotion
As early as 1892, enterprising Canadians like the Brewsters became the country’s first tour operators, leading guests through areas such as Banff National Park (Brewster Travel Canada, 2014). Communities across Canada developed their own marketing strategies as transportation development took hold. For instance, the town of Maisonneuve in Quebec launched a campaign from 1907 to 1915 calling itself “Le Pittsburg du Canada.” And by 1935 Quebec was spending $250,000 promoting tourism, with Ontario, New Brunswick, and Nova Scotia also enjoying established provincial tourism bureaus (Dawson, 2004).
United States, the 55% decline in that market since 2000 is being very strongly felt here. Many feel the decline in American visitors to Canada can be attributed to tighter passport and border regulations, the economic downturn (including the 2008 global economic crisis), and a stronger Canadian dollar (TIAC, 2014).
Despite disappointing numbers from the United States, Canada continues to see strong visitation from the United Kingdom, France, Germany, Australia, and China. In 2011, we welcomed 3,180,262 tourists from our top 15 inbound countries (excluding the United States). Canadians travelling domestically accounted for 80% of tourism revenues in the country, and TIAC suggested that a focus on rebounding US visitation would help grow the industry (TIAC, 2014).
Spotlight On: The Canadian Tourism Commission
Housed in Vancouver, Destination Canada , previously the Canadian Tourism Commission (CTC), is responsible for promoting Canada in several foreign markets: Australia, Brazil, China, France, Germany, India, Japan, Mexico, South Korea, the United Kingdom, and the United States. It works with private companies, travel services providers, meeting professionals, and government organizations to help leverage Canada’s tourism brand, Canada. Keep Exploring. It also conducts research and has a significant image library (Canadian Tourism Commission, 2014). For more information, visit Destination Canada website: http://en.destinationcanada.com/about-ctc.
As organizations like TIAC work to confront barriers to travel, the Canadian Tourism Commission (CTC) is active abroad, encouraging more visitors to explore our country. In Chapter 8, we’ll delve more into the challenges and triumphs of selling tourism at home and abroad.
The great news for British Columbia is that once in Canada, most international visitors tend to remain in the province they landed in, and BC is one of three provinces that receives the bulk of this traffic (TIAC, 2012). In fact, BC’s tourism industry is one of the healthiest in Canada today. Let’s have a look at how our provincial industry was established and where it stands now.
British Columbia Overview
Origins of Tourism in BC
As with the history of tourism in Canada, it’s often stated that the first tourists to BC were explorers. In 1778, Captain James Cook touched down on Vancouver Island, followed by James Douglas in 1842, a British agent who had been sent to find new headquarters for the Hudson’s Bay Company, ultimately choosing Victoria. Through the 1860s, BC’s gold rush attracted prospectors from around the world, with towns and economies springing up along the trail (PricewaterhouseCoopers, 2009).
Railway Travel: Full Steam Ahead!
The development of BC’s tourism industry began in earnest in the late 1800s when the CPR built accommodation properties along itsnewly completed trans-Canada route, capturing revenues from overnight stays to help alleviate their increasing corporate debt. Following the 1886 construction of small lodges at stops in Field, Rogers Pass, and Fraser Canyon, the CPR opened the Hotel Vancouver in May 1887 (Dawson, 2004).
As opposed to Atlantic Canada, where tourism promotion centred around attracting hunters and fishermen for a temporary infusion of cash, in British Columbia tourism was seen as a way to lure farmers and settlers to stay in the new province. Industry associations began to form quickly: the Tourist Association of Victoria (TAV) in February 1902, and the Vancouver Tourist Association in June of the same year (Dawson, 2004).
Many of the campaigns struck by these and other organizations between 1890 and 1930 centred on the province’s natural assets, as people sought to escape modern convenience and enjoy the environment. A collaborative group called the Pacific Northwest Travel Association (BC, Washington, and Oregon) promoted “The Pacific Northwest: The World’s Greatest Out of Doors,” calling BC “The Switzerland of North America.” Promotions like these seemed to have had an effect: in 1928, over 370,000 tourists visited Victoria, spending over $3.5 million (Dawson, 2004).
The Great Depression and World War II
As the world’s economy was sent into peril during the Great Depression in the 1930s, tourism was seen as an economic solution. A newly renamed Greater Victoria Publicity Bureau touted a “100 for 1” multiplier effect of tourism spending, with visitor revenues accounting for around 13.5% of BC’s income in 1930. By 1935, an organization known as the TTDA (Tourist Trade Development Association of Victoria and Vancouver Island) looked to create a more stable industry through strategies to increase visitors’ length of stay (Dawson, 2004).
In 1937, the provincial Bureau of Industrial and Tourist Development (BITD) was formed through special legislation with a goal of increasing tourist traffic. By 1938, the organization changed its name to the British Columbia Government Travel Bureau (BCGTB) and was granted a budget increase to $105,000. This was soon followed by an expansion of the BC Tourist Council designed to solicit input from across the province. And in 1939, Vancouver welcomed the King and Queen of England and celebrated the opening of the Lions Gate Bridge, activities that reportedly bolstered tourism numbers (Dawson, 2004).
The December 1941 Japanese attack on Pearl Harbor in Hawaii had negative repercussions for tourism on the Pacific Rim and was responsible for an era of decreased visitation to British Columbia, despite attempts by some to market the region as exciting. From 1939 to 1943, US visits to Vancouver (measured at the border) dropped from over 307,000 to approximately 183,600. Just two years later, however, that number jumped to 369,250, the result of campaigns like the 1943 initiative aimed at Americans that marketed BC as “comrades in war” (Dawson, 2004).
Post-War Rebound
We, with all due modesty, cannot help but claim that we are entering British Columbia’s half- century, and cannot help but observe that B.C. also stands for BOOM COUNTRY. – Phil Gagliardi, BC Minister of Highways, 1955 (Dawson, 2004, p.190)
A burst of post-war spending began in 1946, and although short-lived, was supported by steady government investment in marketing throughout the 1950s. As tourism grew in BC, however, so did competition for US dollars from Mexico, the Caribbean, and Europe. The decade that followed saw an emphasis on promoting BC’s history, its “Britishness,” and a commodification of Aboriginal culture. The BCGTB began marketing efforts to extend the travel season, encouraging travel in September, prime fishing season. It also tried to push visitors to specific areas, including the Lower Fraser Valley, the Okanagan-Fraser Canyon Loop, and the Kamloops- Cariboo region (Dawson, 2004).
In 1954, Vancouver hosted the British Empire Games, investing in the construction of Empire Stadium. A few years later, an increased emphasis on events and convention business saw the Greater Vancouver Tourist Association change its name in 1962 to the Greater Vancouver Visitors and Convention Bureau (PricewaterhouseCoopers, 2009).
The ski industry was also on the rise: in 1961, the lodge and chairlift on Tod Mountain (now Sun Peaks) opened, and Whistler followed suit five years later (PricewaterhouseCoopers, 2009). Ski partners became pioneers of collaborative marketing in the province with the foundation of the Ski Marketing Advisory Committee (SMAC) supported by Tod Mountain and Big White, evolving into today’s Canada’s West Ski Area Association (Magnes, 2010). This pioneer spirit was evident across the ski sector: the entire sport of heliskiing was invented by Hans Gosmer of BC’s Canadian Mountain Holidays, and today the province holds 90% of the world’s heliskiing market share (McLeish, 2014).
The concept of collaboration extended throughout the province as innovative funding structures saw the cost of marketing programs shared between government and industry in BC. These programs were distributed through regional channels (originally eight regions in the province), and considered “the most constructive and forward looking plan of its kind in Canada” (Dawson 2004, p.194).
Tourism in BC continued to grow through the 1970s. In 1971, the Hotel Room Tax Act was introduced, allowing for a 5% tax to be collected on room nights with the funds collected to be put toward marketing and development. By 1978, construction had begun on Whistler Village, with Blackcomb Mountain opening two years later (PricewaterhouseCoopers, 2009). Funding programs in the late 1970s and early 1980s such as the Canada BC Tourism Agreement (CBCTA) and Travel Industry Development Subsidiary Agreement (TIDSA)
Tourism in BC Today
Building on the momentum generated by hosting the 2010 Winter Olympic Games, tourism in BC remains big business. In 2012, the industry generated $13.5 billion in revenue.
The provincial industry is made up of over 18,000 businesses, the majority of which are SMEs (small to medium enterprises), and together they employ approximately 127,300 people (Tourism Industry Association of BC, 2014). It may surprise you to learn that in British Columbia, tourism provides more jobs than high tech, oil and gas, mining, and forestry (Porges, 2014).
Spotlight On: The Tourism Industry Association of BC
Founded in 1993 as the Council of Tourism Associations, today the Tourism Industry Association of BC (TIABC) is a not-for-profit trade association comprising members from private sector tourism businesses, industry associations, and destination marketing organizations (DMOs). Its goal is to ensure the best working environment for a competitive tourism industry. It hosts industry networking events and engages in advocacy efforts as “the voice of the BC tourism industry.” Students are encouraged to join TIABC to take advantage of their connections and receive a discount at numerous industry events. For more information, visit the Tourism Industry Association of BC’s website: http://www.tiabc.ca/student-membership
One of the challenges for BC’s tourism industry, it has long been argued, is fragmentation. Back in September 1933, an article in the Victoria Daily Times argued for more coordination across organizations in order to capitalize on what they saw as Canada’s “largest dividend payer” (Dawson, 2004). Today, more than 80 years later, you will often hear BC tourism professionals say the same thing.
On the other hand, some experts believe that the industry is simply a model of diversity, acknowledging that tourism is a compilation of a multitude of businesses, services, organizations, and communities. They see the ways in which these components are working together toward success, rather than focusing on friction between the groups.
Many communities are placing a renewed focus on educating the general public and other businesses about the value of tourism and the ways in which stakeholders work together. The following case study highlights this in more detail:
Take a Closer Look: Tourism Pays in Richmond, BC
The community of Richmond, BC, brings to life the far-reaching positive economic effects of tourism in action. Watch the short video called “Tourism Pays” to see what we mean!: http://vimeo.com/
Throughout the rest of this textbook, you’ll have a chance to learn more about the history and current outlook for tourism in BC, with in-depth coverage of some of the triumphs and challenges we’ve faced as an industry. You will also learn about the Canadian and global contexts of the tourism industry’s development.
Conclusion
As we’ve seen in this chapter, tourism is a complex set of industries including accommodation, recreation and entertainment, food and beverage services, transportation, and travel services. It encompasses domestic, inbound, and outbound travel for business, leisure, or other purposes. And because of this large scope, tourism development requires participation from all walks of life, including private business, governmental agencies, educational institutions, communities, and citizens.
Recognizing the diverse nature of the industry and the significant contributions tourism makes toward economic and social value for British Columbians is important. There remains a great deal of work to better educate members of the tourism industry, other sectors, and the public about the ways tourism contributes to our province.
Given this opportunity for greater awareness, it is hoped that students like you will help share this information as you learn more about the sector. So let’s begin our exploration in Chapter 2 with a closer look at a critical sector: transportation.
Key Terms
- British Columbia Government Travel Bureau ( BCGTB) : the first recognized provincial government organization responsible for the tourism marketing of British Columbia
- Canadian Pacific Railway (CPR) : a national railway company widely regarded as establishing tourism in Canada and BC in the late 1800s and early 1900s
- Destination BC: the provincial destination marketing organization (DMO) responsible for tourism marketing and development in BC, formerly known as Tourism BC
- Destination Canada: the national government Crown corporation responsible for marketing Canada abroad, formerly known as the Canadian Tourism Commission (CTC)
- Destination marketing organization (DMO): also known as a destination management organization; includes national tourism boards, state/provincial tourism offices, and community convention and visitor bureaus
- Diversity: a term used by some in the industry to describe the makeup of the industry in a positive way; acknowledging that tourism is a diverse compilation of a multitude of businesses, services, organizations, and communities
- Fragmentation: a phenomenon observed by some industry insiders whereby the tourism industry is unable to work together toward common marketing and lobbying (policy-setting) objectives
- Hospitality: the accommodations and food and beverage industry groupings
- North American Industry Classification System (NAICS) : a way to group tourism activities based on similarities in business practices, primarily used for statistical analysis
- Tourism: the business of attracting and serving the needs of people travelling and staying outside their home communities for business and pleasure
- Tourism Industry Association of BC ( TIABC) : a membership-based advocacy group formerly known as the Council of Tourism Associations of BC (COTA)
- Tourism Industry Association of Canada (TIAC): the national industry advocacy group
- Tourist: someone who travels at least 80 kilometres from his or her home for at least 24 hours, for business or pleasure or other reasons; can be further classified as domestic, inbound, or outbound
- United Nations World Tourism Organization (UNWTO) : UN agency responsible for promoting responsible, sustainable, and universally accessible tourism worldwide
Exercises
1. List the three types of tourist and provide an example of each.
2. What is the UNWTO? Visit its website, and name one recent project or study the
organization has undertaken.
3. List the five industry groups according to the North American Industry
Classification System (NAICS). Using your understanding of tourism as an
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