INTRODUCTION: MANIFESTATIONS OF TRANSPORT AND TOURISM

LEARNING OBJECTIVES

After reading this chapter, you should be able to

1. Understand the complex nature by which transport is tied to tourism and tourism development.

2. Assess and describe the scope of transport operations worldwide, particularly as they relate to travel flows and tourism development.

3. Distinguish and draw correlations between modes, networks and flows and their role (s) in the development of transport networks.

4. Outline the top issues facing transport provision in the context of tourism.

5. Discuss the role of the mode and type of transport in the context of decision-making systems.

INTRODUCTION: A SITUATION ANALYSIS

Transport has emerged as one of the more ubiquitous and complex global economic sectors. It forms the backbone of national and international commerce by acting as a mechanism for the movement of freight and people. As a result, growth in transport systems share synergies with growth in tourism, and vice versa. The global reach of tourist activities has, in part, been facilitated by the increase in accessibility of tourist 'places' on a global scale, and the popularity of holidays in western countries that make use of personal transport surged throughout the 20th century, thus spawning consistent demand for accessibility. Importantly, externalities that affect the viability of tourism at varying spatial levels (e.g. attractions, destinations, regions, global) can have flow-on effects to transport. As well, externalities that affect transport provision can impact on tourism demand and tourism development. Indeed, the events of 11 September 2001 in the United States demonstrated the fragility of the global tourism sector and associated transport industries.

Global tourism has grown significantly in the past few decades (Figure 1.1), and even over the past century. The stagnant growth in global tourism between 2001 and 2003 seems to have begun a renewal beginning in 2004 and carrying through to early 2006 (UNWTO, 2005a, 2006). The scope for international travel, according to the IATA, is positive in some regions (e.g. Asia and Middle East) despite overall setbacks experienced in 2005 due to increased costs for fuel spurned by rising oil prices (IATA, 2005). With UNWTO predicting almost 1.6 billion arrivals by 2020 (UNWTO, 2005a), and with several airlines (e.g. Qantas, Emirates) purchasing next-generation aircraft such as the Boeing 787, the Airbus A350 or the A380, the importance of transport provision becomes clear. Developments in transport can, and will, have an enormous impact on people's mobility, and tourist motivation and demand in general already has significant impacts on the way people travel (Hall, 2005). As Hall (2005: 37) notes, tourists have benefited from the introduction of new technologies in transportation, which have been developed as a direct consequence of the rise in demand of travel:

The cost and time of moving commodities, services and people have dramatically reduced in recent years. The real cost of travelling internationally has fallen sharply, as has the time it takes to travel long distances ... In the first decade of the twenty-first century marginal increases in the time saved may be achieved but, more significantly, the same flight will be undertaken by double-decker jumbo jets carrying almost twice as many people as the 'traditional' jumbo jet.

The Department for Transport in Great Britain established a baseline index from 1990 and plotted the movement of distance, time and number of trips using the National Travel Survey. The result is that the number of trips has decreased steadily since 1990 while distance has increased (Figure 1.2). The amount of time spent travelling (including all forms of travel, not just tourism) has slightly decreased.

A 20-year outlook for commercial air travel produced by Boeing (2005) suggests passenger traffic between 2005 and 2024 will increase by an average of 4.8% per year, and cargo traffic is predicted to increase by an average of 6.2% across the same period. Boeing also predicts the global fleet of aircraft will double by 2024 to over 35,000 commercial aircraft (including both cargo and passenger). Airbus, a competitor, produced its own market outlook report (Airbus, 2005) with similar predictions of growth. Airbus predicts that the number of passenger aircraft in operation will double from almost 11,000 to 22,000 between 2003 and 2023. Airbus is also predicting a doubling of frequencies on existing routes, but only an increase of 20% of the number seats on aircraft.

ABOUT THIS BOOK: POSITIONING MODES, NETWORKS AND FLOWS

The broad purpose of this book is to map the key elements that comprise the complex relationship between transport and tourism. A framework of modes, networks and flows, as primary elements that help explain the transport/tourism relationship, is utilised. This framework has largely been adopted from the geography of transport studies literature (e.g. Hoyle & Smith, 1998), although other disciplines such as management, marketing and economics have also utlised similar approaches. Modes, network and flows can be defined as follows:

Modes: Following conventional definitions used in the business management literature with respect to categorising transport operations (see, for example, Gubbins, 2004), transport modes are manifested in three ways: ground transport, air transport and marine transport (a future mode, space transport, is considered in Chapter 9). A particular transport 'type' shall refer to the actual means of mobility realised within a particular mode. Thus, cruise tourism can be considered a type of transport that would fall under the marine mode of transport, and low-cost airlines, charter carriers and 'legacy carriers', to name a few, can be classified as a type of air transport (differentiated from other carriers on the basis of the business model and network served). While somewhat autocratic and rigid in its function, this classification system allows for consideration of the importance of tourism to each and to showcase useful examples of integration and importance.

Networks: If modes broadly represent the means of travel, then network structure underpins the ability of a mode or type of transport to profitably provide service and facilitate mobility. Hoyle and Smith (1998: 14) summarise the importance of networks succinctly:

A pattern of links and nodes produces a network, a physical arrangement of trans-port facilities; and the design, development and management of that network requires a multifaceted transport system, which is ultimately both a response to demand and an expression of technological capability and economic resources.

Flows: Understandably, the profitability of networks depends on parameters of demand, externalities and competition. Networks are integral, therefore, in positioning modes and flows in the context of tourism such that they help explain how each work together to shape international (and regional/national) tourism. Traffic flows across networks represent the tangible measures of accessibility; they are captured in arrival statistics, load factors and demand models, and are governed by ability of modes and types of transport to service demand for traffic flow. Flows are therefore influenced by factors such as motivation and demand (incorporating economic and social variables) as well as supply.

When viewed as a wider system of variables that influence the transport/tourism relationship, modes, networks and flows can be seen to have a substantial impact on the structure of global tourism. Indeed, it can be argued that there is a significant degree of positive correlation and dependence between each concept:

1.Networks determine flows and flows justify networks: The spatial layout, and subsequent linkages established, of transport networks govern the flow of passengers. Thus, the ability of an airline to offer services to a particular destination, for example, plays an integral role in tourism development as it is the vector by which some tourists will arrive. This also means that, if flows are hindered by externalities such as market economics or simple demand, the scope and size of networks can change. Operators of modes of transport are therefore constantly reviewing the viability, in financial terms, of their networks. Rail providers may elect to cease services where demand is muted due to the introduction of air services, and airlines may alter their own network structure in response to decreasing demand along one or more network segments. Not surprisingly, significant investment in capital and infrastructure is required in order to maintain global networks as conduits of flows. What this can often mean is that the cost of entry can be prohibitive to the point that provision can often be concentrated in the hands of a few providers. For example, as of 2004 the top five airlines in terms of operating fleet size account for over 2400 aircraft (Table 1.1).

It is interesting to note that three of the top five airlines (American, United and Delta) have experienced fluctuating profitability problems since 2000 (see Chapter 6). Thus, while the scale of transport, particularly air transport, is massive, the fragility of the provision of services cannot be underestimated. The servicing of networks is perilous and subject to numerous externalities, including, but certainly not limited to, war, terrorist, natural disasters and economic malaise. These consequently affect cost, demand and supply. Equally important to note is that networks are not only global in scale. Regional and even national networks (for example highways or rail transport) can also influence movement and mobility at that scale, but even these can be subject to global and regional economic conditions.

2.Patterns and intensities of flows determine the viability of networks: Tourism is a fickle economic sector in that it relies upon the management of image, yet at the same time is vulnerable to similar externalities as transport (Hall, 2005). When image and perception change to the extent that demand is reduced, the viability of a transport provider's networks may be threatened if the pattern and/or intensity of flows is diminished. The correlation between patterns and intensities of traffic flows and the financial viability of network is therefore positive. It is for this reason that transport providers often have a financial interest in ensuring a destination is marketable and thus attractive to tourists.

3.Regulations govern modal operations: Despite movement toward deregulation of some transport modes (e.g. passenger air transport), transport remains a highly regulated economic industry. According to Forsyth (2006: 3), liberalisation of some air transport sectors has helped to fuel tourism growth: "Tourism demand is quite price elastic, and aviation liberalisation has brought down fares, thus increasing tourism overall, and often, altering patterns of tourism." Despite liberalisation, however, the provision of transport services is still governed by policies and laws relating to safety, operations and competition (see Chapter 7).

4.Transport networks play a key role in the development of destinations, especially in the context of accessibility and connectivity: The pattern and scope of tourism is ultimately governed by the degree of accessibility and connectivity within a transport network (e.g. Butler, 1997). New Zealand as a tourism destination, for example, benefits from long-haul, non-stop air services to the United States, one of its key markets. The Caribbean has historically received a significant proportion of its overseas visitors from the United States because of non-stop flights from major urban areas such as New York and Washington DC. Likewise, rural areas popular with second home owners depend on suitable road access. As a result, the importance of accessibility is such that the ability of a destination to attract tourists is largely contingent on the availability and efficiency of transport needed to travel to that destination.

5.Growth in tourism and transport is bi-directional and reasonably symbiotic: In some cases this may be true, but Bieger and Wittmer (2006) rightly note that transport growth is not the only determining factor in tourism development. They argue that favourable conditions of demand and supply in the origin and destination must also be present, with transport providing the vector by which each may be satisfied. The variability in tourism amenities, attractions and new forms of mobility, such as visiting friends and relatives (Duval, 2003), second homes (Hall & Müller, 2004) and return migration (Duval, 2002) have contributed to global and regional transport demand. Growth in both tourism and transport, of course, is not universally welcomed. For example, while the economic importance of tourism for the economy is critical (e.g. Domroes, 1999), the rapid development of tourism in the Maldives has brought with it several concerns over the impact of tourism on the environment and local populations (thus raising issues of tourism as a new form of dependency [see Bastin, 1984, for example]). According to official traffic statistics at Malé International Airport, passengers disembarkations more than doubled from 1986 to 1997 (Table 1.2).

The Maldives example is by no means unique. Several trends have emerged that have influenced the manner in which transport and tourism co-exist (Table 1.3). Some of these relate to operations, such as how transport firms manage the provision of transport relating to tourism (and leisure, for that matter), while others are associated specifically with markets. As well, the scope and scale at which transport providers operate has a strong bearing on their exposure to externalities and vulnerabilities. Externalities such as the price of crude oil can impact on transport providers at smaller spatial scales (e.g. regions) just as much as those which operate on larger scales (e.g. globally).

INNOVATION AND TRANSPORT DEVELOPMENT

Historically, technological innovation in transport is directly associated with the scope and intensity of tourism and leisure activities (Table 1.4; Figures 1.1 and 1.2). According to Butler (1980), there have been five ways in which innovation in transport has affected tourism:

1. time reduction, where a reduction in travel time, if perceived as a cost, is a reduction in cost (although this is not always the case given yield management, demand and route structures, as demonstrated in Chapter 6 with respect to air travel);

2. a reduction in financial cost, especially on a per capita basis, of travel;

3. improvement in comfort and safety for passengers;

4. increased convenience (generally through increases in connectivity of destinations);

5. increased accessibility of destinations, and as Butler (1997: 40) notes: 'The innovation often becomes a type of tourism itself; for example, ocean cruising is both a means of transportation and a form of tourism, and so too are flying, driving for pleasure and sailing.'

The demand for transport has fuelled innovations in transport design and provision, and likewise transport innovation has played an integral role in tourism development in many destinations. In the same way that rail travel opened up destinations in the 19th century (see Prideaux, 2000a, 2000b), the impact of low-cost air carriers has been similar in the past decade, with increased flows of travellers who otherwise may have not travelled due to price elasticities. Worldwide, there are several examples (e.g. China, India, the United States, Europe, Australia, New Zealand and Canada) where new low-cost air access has been beneficial to tourism overall. While LCCs have proliferated, some network or 'legacy' carriers have not fared as well. In the United States, where both domestic and international routes are offered across complex networks, some network carriers have shifted their focus to international routes since 11 September 2001 and reduced costs by culling employment levels (BTS, 2005a).

While the relationship between transport and tourism is, in one sense, practical and simple in principle, the reality is that transport is manifested both within and for tourism, as well as other forms of temporary mobility. As complex as 'tourism' as a phenomenon or mobile activity is, transport is equally diverse and multifarious. Air transport, because it is truly a global phenomenon and thus almost directly responsible for global growth in tourist arrivals, is given slightly more emphasis than other transport means. In other words, where rail and steam travel revolutionised tourism and leisure travel in the 19th century (see Figure 1.3), and personal automobiles achieved a similar impact beginning in the early 20th century, air travel has, since the 1950s and 1960s (Page, 1999), revolutionised global tourism in terms of frequency and volume previously unseen.