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The Impact of Tourism on Economic Growth and Travel Trends

This overview explores the integral role of tourism in supporting a variety of businesses such as restaurants, hotels, transportation services, and attractions. It highlights the factors driving increased tourism, including more leisure time, rising family incomes, and population growth in travel-friendly age demographics. Additionally, the piece identifies three primary motivations for travel, including family visits and recreational activities, as well as current trends in air travel marked by competition, deregulation, and loyalty programs that shape the industry landscape.

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The Impact of Tourism on Economic Growth and Travel Trends

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  1. Organizations Supported by Tourism • Restaurants, hotels, motels, and resorts • All facets of transportation, including rental cars, airlines, travel agents, and gasoline service stations • National and state parks or recreation areas • Various private attractions • Organizations that support the above firms’ retail activities, including advertising companies, publications, transportation equipment manufacturers, and travel research and development agencies Transparency 13-1

  2. Reasons for Increasing Tourism • More leisure time • Rising family incomes • Population growth in the age groups most likely to travel for pleasure Transparency 13-2

  3. Top Three Reasons Why People Travel • To visit family and friends • For outdoor recreation, entertainment, and other pleasure-related activities • To attend business functions and conventions Transparency 13-3

  4. Trends in Air Travel • Fierce competition • Hub-and-spoke system • Point-to-point service • Deregulation • Discounted fares • Partnerships between airlines • Frequent-flyer programs Transparency 13-4

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