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Chapter 1. History and Overview

1.1 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 not just the movement of people for a number of purposes (whether business or pleasure), but the overall agglomeration of activities, services, and involved sectors that make up the unique tourist experience.

Tourism, Travel, and Hospitality: What are the Differences?

It is common to confuse the terms tourism , travel , and hospitality or to define them as the same thing. While tourism is the all-encompassing umbrella term for the activities and industry that create the tourist experience, the UNWTO (2020) defines travel as the activity of moving between different locations often for any purpose but more so for leisure and recreation (Hall & Page, 2006). On the other hand, hospitality can be defined as “the business of helping people to feel welcome and relaxed and to enjoy themselves” (Discover Hospitality, 2015, p. 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 (Go2HR, 2020). You’ll learn more about accommodations and F & B in Chapter 3 and Chapter 4 , respectively.

Definition of Tourist and Excursionist

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” [1] . The United Nations World Tourism Organization (1995) helps us break down this definition further by stating tourists can be:

• Domestic (residents of a given country travelling only within that country)
• Inbound (non-residents travelling in a given country)
• Outbound (residents of one country travelling in another country)

Excursionists  on the other hand are considered same-day visitors (UNWTO, 2020). Sometimes referred to as “day trippers.” Understandably, not every visitor stays in a destination overnight. It is common for travellers to spend a few hours or less to do sightseeing, visit attractions, dine at a local restaurant, then leave at the end of the day.

The scope of tourism, therefore, is broad and encompasses a number of activities and sectors.

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 159 countries and over 500 affiliates such as private companies, research and educational institutions, 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 .

The North American Industry Classification System (NAICS). 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):

• Accommodation
• Food and beverage services (commonly known as “F & B”)
• Recreation and entertainment
• Transportation
• Travel services

These industry groups (also commonly known as sectors) 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.

It is typical for the entire tourist experience to involve more than one sector. The combination of sectors that supply and distribute the needed tourism products, services, and activities within the tourism system is called the Tourism Supply Chain. Often, these chains of sectors and activities are dependent upon each other’s delivery of products and services. Let’s look at a simple example below that describes the involved and sometimes overlapping sectoral chains in the tourism experience:

Before we seek to understand the five tourism sectors in more detail, it’s important to have an overview of the history and impacts of tourism to date.

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Tourism according the the UNWTO 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.

UN agency responsible for promoting responsible, sustainable, and universally accessible tourism worldwide.

Moving between different locations for leisure and recreation.

The accommodations and food and beverage industry groupings.

someone who travels at least 80 km from his or her home for at least 24 hours, for business or leisure or other reasons

A same-day visitor to a destination. Their trip typically ends on the same day when they leave the destination.

A way to group tourism activities based on similarities in business practices, primarily used for statistical analysis.

Introduction to Tourism Copyright © 2020 by NSCC is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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Glossary of tourism terms

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 involve tourism expenditure.

A B C D E F G H I J K L M N O P Q R S T U V W Y Z

Activity/activities : In tourism statistics, the term activities represent the actions and behaviors of people in preparation for and during a trip in their capacity as consumers ( IRTS 2008, 1.2 ).

Activity (principal): The principal activity of a producer unit is the activity whose value added exceeds that of any other activity carried out within the same unit ( SNA 2008, 5.8 ).

Activity (productive): The (productive) activity carried out by a statistical unit is the type of production in which it engages. It has to be understood as a process, i.e. the combination of actions that result in a certain set of products. The classification of productive activities is determined by their principal output.

Administrative data : Administrative data is the set of units and data derived from an administrative source. This is a data holding information collected and maintained for the purpose of implementing one or more administrative regulations.

Adventure tourism : Adventure tourism is a type of tourism which usually takes place in destinations with specific geographic features and landscape and tends to be associated with a physical activity, cultural exchange, interaction and engagement with nature. This experience may involve some kind of real or perceived risk and may require significant physical and/or mental effort. Adventure tourism generally includes outdoor activities such as mountaineering, trekking, bungee jumping, rock climbing, rafting, canoeing, kayaking, canyoning, mountain biking, bush walking, scuba diving. Likewise, some indoor adventure tourism activities may also be practiced.

Aggregated data : The result of transforming unit level data into quantitative measures for a set of characteristics of a population.

Aggregation : A process that transforms microdata into aggregate-level information by using an aggregation function such as count, sum average, standard deviation, etc.

Analytical unit : Entity created by statisticians, by splitting or combining observation units with the help of estimations and imputations.

Balance of payments : The balance of payments is a statistical statement that summarizes transactions between residents and non-residents during a period. It consists of the goods and services account, the primary income account, the secondary income account, the capital account, and the financial account ( BPM6, 2.12 ).

Bias : An effect which deprives a statistical result of representativeness by systematically distorting it, as distinct from a random error which may distort on any one occasion but balances out on the average.

Business and professional purpose (of a tourism trip): The business and professional purpose of a tourism trip includes the activities of the self-employed and employees, as long as they do not correspond to an implicit or explicit employer-employee relationship with a resident producer in the country or place visited, those of investors, businessmen, etc. ( IRTS 2008, 3.17.2 ).

Business tourism : Business tourism is a type of tourism activity in which visitors travel for a specific professional and/or business purpose to a place outside their workplace and residence with the aim of attending a meeting, an activity or an event. The key components of business tourism are meetings, incentives, conventions and exhibitions. The term "meetings industry" within the context of business tourism recognizes the industrial nature of such activities. Business tourism can be combined with any other tourism type during the same trip.

Business visitor : A business visitor is a visitor whose main purpose for a tourism trip corresponds to the business and professional category of purpose ( IRTS 2008, 3.17.2 ).

Central Product Classification : The Central Product Classification (CPC) constitutes a complete product classification covering goods and services. It is intended to serve as an international standard for assembling and tabulating all kinds of data requiring product detail, including industrial production, national accounts, service industries, domestic and foreign commodity trade, international trade in services, balance of payments, consumption and price statistics. Other basic aims are to provide a framework for international comparison and promote harmonization of various types of statistics dealing with goods and services.

Census : A census is the complete enumeration of a population or groups at a point in time with respect to well defined characteristics: for example, Population, Production, Traffic on particular roads.

Coastal, maritime and inland water tourism : Coastal tourism refers to land-based tourism activities such as swimming, surfing, sunbathing and other coastal leisure, recreation and sports activities which take place on the shore of a sea, lake or river. Proximity to the coast is also a condition for services and facilities that support coastal tourism. Maritime tourism refers to sea-based activities such as cruising, yachting, boating and nautical sports and includes their respective land-based services and infrastructure. Inland water tourism refers to tourism activities such as cruising, yachting, boating and nautical sports which take place in aquatic- influenced environments located within land boundaries and include lakes, rivers, ponds, streams, groundwater, springs, cave waters and others traditionally grouped as inland wetlands.

Coherence : Adequacy of statistics to be combined in different ways and for various uses.

Competitiveness of a tourism destination : The competitiveness of a tourism destination is the ability of the destination to use its natural, cultural, human, man-made and capital resources efficiently to develop and deliver quality, innovative, ethical and attractive tourism products and services in order to achieve a sustainable growth within its overall vision and strategic goals, increase the added value of the tourism sector, improve and diversify its market components and optimize its attractiveness and benefits both for visitors and the local community in a sustainable perspective.

Consistency : Logical and numerical coherence.

Country of reference : The country of reference refers to the country for which the measurement is done. ( IRTS 2008, 2.15 ).

Country of residence : The country of residence of a household is determined according to the centre of predominant economic interest of its members. If a person resides (or intends to reside) for more than one year in a given country and has there his/her centre of economic interest (for example, where the predominant amount of time is spent), he/she is considered as a resident of this country.

Country-specific tourism characteristic products and activities : To be determined by each country by applying the criteria of IRTS 2008, 5.10 in their own context; for these products, the activities producing them will be considered as tourism characteristic, and the industries in which the principal activity is tourism-characteristic will be called tourism industries ( IRTS 2008, 5.16 ).

Cultural tourism : Cultural tourism is a type of tourism activity in which the visitor's essential motivation is to learn, discover, experience and consume the tangible and intangible cultural attractions/products in a tourism destination. These attractions/products relate to a set of distinctive material, intellectual, spiritual and emotional features of a society that encompasses arts and architecture, historical and cultural heritage, culinary heritage, literature, music, creative industries and the living cultures with their lifestyles, value systems, beliefs and traditions.

Data checking : Activity whereby the correctness conditions of the data are verified. It also includes the specification of the type of error or of the condition not met, and the qualification of the data and their division into "error-free data" and "erroneous data".

Data collection : Systematic process of gathering data for official statistics.

Data compilation : Operations performed on data to derive new information according to a given set of rules.

Data confrontation : The process of comparing data that has generally been derived from different surveys or other sources, especially those of different frequencies, in order to assess and possibly improve their coherency, and identify the reasons for any differences.

Data processing : Data processing is the operation performed on data by the organization, institute, agency, etc., responsible for undertaking the collection, tabulation, manipulation and preparation of data and metadata output.

Data reconciliation : The process of adjusting data derived from two different sources to remove, or at least reduce, the impact of differences identified.

Destination (main destination of a trip): The main destination of a tourism trip is defined as the place visited that is central to the decision to take the trip. See also purpose of a tourism trip ( IRTS 2008, 2.31 ).

Destination management / marketing organization (DMO) : A destination management/marketing organization (DMO) is the leading organizational entity which may encompass the various authorities, stakeholders and professionals and facilitates tourism sector partnerships towards a collective destination vision. The governance structures of DMOs vary from a single public authority to a public/ private partnership model with the key role of initiating, coordinating and managing certain activities such as implementation of tourism policies, strategic planning, product development, promotion and marketing and convention bureau activities. The functions of the DMOs may vary from national to regional and local levels depending on the current and potential needs as well as on the decentralization level of public administration. Not every tourism destination has a DMO.

Documentation: Processes and procedures for imputation,  weighting,  confidentiality  and suppression rules, outlier treatment and data capture should be fully documented by the  survey provider.  Such documentation should be made available to at least  the body financing the survey.

Domestic tourism : Domestic tourism comprises the activities of a resident visitor within the country of reference, either as part of a domestic tourism trip or part of an outbound tourism trip ( IRTS 2008, 2.39 ).

Domestic tourism consumption : Domestic tourism consumption is the tourism consumption of a resident visitor within the economy of reference ( TSA:RMF 2008, figure 2.1 ).

Domestic tourism expenditure : Domestic tourism expenditure is the tourism expenditure of a resident visitor within the economy of reference, (IRTS 2008, 4.15(a)).

Domestic tourism trip : A domestic tourism trip is one with a main destination within the country of residence of the visitor (IRTS 2008, 2.32).

Domestic visitor : As a visitor travels within his/her country of residence, he/she is a domestic visitor and his/her activities are part of domestic tourism.

Durable consumer goods : Durable consumer goods are goods that may be used repeatedly or continuously over a period of a year or more, assuming a normal or average rate of physical usage. When acquired by producers, these are considered to be capital goods used for production processes, as is the case of vehicles, computers, etc. When acquired by households, they are considered to be consumer durable goods ( TSA:RMF 2008, 2.39 ). This definition is identical to the definition of SNA 2008, 9.42 : A consumer durable is a goodthat may be used for purposes of consumption repeatedly or continuously over a period of a year or more.

Dwellings : Each household has a principal dwelling (sometimes also designated as main or primary home), usually defined with reference to time spent there, whose location defines the country of residence and place of usual residence of this household and of all its members. All other dwellings (owned or leased by the household) are considered secondary dwellings ( IRTS 2008, 2.26 ).

Ecotourism : Ecotourism is a type of nature-based tourism activity in which the visitor's essential motivation is to observe, learn, discover, experience and appreciate biological and cultural diversity with a responsible attitude to protect the integrity of the ecosystem and enhance the well-being of the local community. Ecotourism increases awareness towards the conservation of biodiversity, natural environment and cultural assets both among locals and the visitors and requires special management processes to minimize the negative impact on the ecosystem.

Economic analysis : Tourism generates directly and indirectly an increase in economic activity in the places visited (and beyond), mainly due to demand for goods and services thatneed to be produced and provided. In the economic analysis of tourism, one may distinguish between tourism's 'economic contribution' which refers to the direct effect of tourism and is measurable by means of the TSA, and tourism's 'economic impact' which is a much broader concept encapsulating the direct, indirect and induced effects of tourism and which must be estimated by applying models. Economic impact studies aim to quantify economic benefits, that is, the net increase in the wealth of residents resulting from tourism, measured in monetary terms, over and above the levels that would prevail in its absence.

Economic territory : The term "economic territory" is a geographical reference and points to the country for which the measurement is done (country of reference) ( IRTS 2008, 2.15 ).

Economically active population : The economically active population or labour force comprises all persons of either sex who furnish the supply of labour for the production of goods and services as defined by the system of national accounts during a specified time-reference period (ILO, Thirteenth ICLS, 6.18).

Economy (of reference): "Economy" (or "economy of reference") is an economic reference defined in the same way as in the balance of payments and in the system of national accounts: it refers to the economic agents that are resident in the country of reference ( IRTS 2008, 2.15 ).

Education tourism : Education tourism covers those types of tourism which have as a primary motivation the tourist's engagement and experience in learning, self-improvement, intellectual growth and skills development. Education Tourism represents a broad range of products and services related to academic studies, skill enhancement holidays, school trips, sports training, career development courses and language courses, among others.

Employees : Employees are all those workers who hold the type of job defined as "paid employment" (ILO, Fifteenth ICLS, pp. 20-22).

Employer-employee relationship : An employer-employee relationship exists when there is an agreement, which may be formal or informal, between an entity and an individual, normally entered into voluntarily by both parties, whereby the individual works for the entity in return for remuneration in cash or in kind ( BPM6, 11.11 ).

Employers : Employers are those workers who, working on their own account with one or more partners, hold the type of job defined as a "self-employment job" and, in this capacity, on a continuous basis (including the reference period) have engaged one or more persons to work for them in their business as "employee(s)" (ILO, Fifteenth ICLS, pp. 20-22).

Employment : Persons in employment are all persons above a specified age who, during a specified brief period, either one week or one day, were in paid employment or self-employment (OECD GST, p. 170).

Employment in tourism industries : Employment in tourism industries may be measured as a count of the persons employed in tourism industries in any of their jobs, as a count of the persons employed in tourism industries in their main job, or as a count of the jobs in tourism industries ( IRTS 2008, 7.9 ).

Enterprise : An enterprise is an institutional unit engaged in production of goods and/or services. It may be a corporation, a non-profit institution, or an unincorporated enterprise. Corporate enterprises and non-profit institutions are complete institutional units. An unincorporated enterprise, however, refers to an institutional unit —a household or government unit —only in its capacity as a producer of goods and services (OECD BD4, p. 232)

Establishment : An establishment is an enterprise, or part of an enterprise, that is situated in a single location and in which only a single productive activity is carried out or in which the principal productive activity accounts for most of the value added ( SNA 2008, 5.14 ).

Estimation : Estimation is concerned with inference about the numerical value of unknown population values from incomplete data such as a sample. If a single figure is calculated for each unknown parameter the process is called "point estimation". If an interval is calculated within which the parameter is likely, in some sense, to lie, the process is called "interval estimation".

Exports of goods and services : Exports of goods and services consist of sales, barter, or gifts or grants, of goods and services from residents to non-residents (OECD GST, p. 194)

Frame : A list, map or other specification of the units which define a population to be completely enumerated or sampled.

Forms of tourism : There are three basic forms of tourism: domestic tourism, inbound tourism, and outbound tourism. These can be combined in various ways to derive the following additional forms of tourism: internal tourism, national tourism and international tourism.

Gastronomy tourism :  Gastronomy tourism is a type of tourism activity which is characterized by the visitor's experience linked with food and related products and activities while travelling. Along with authentic, traditional, and/or innovative culinary experiences, Gastronomy Tourism may also involve other related activities such as visiting the local producers, participating in food festivals and attending cooking classes. Eno-tourism (wine tourism), as a sub-type of gastronomy tourism, refers to tourism whose purpose is visiting vineyards, wineries, tasting, consuming and/or purchasing wine, often at or near the source.

Goods : Goods are physical, produced objects for which a demand exists, over which ownership rights can be established and whose ownership can be transferred from one institutional unit to another by engaging in transactions on markets ( SNA 2008, p. 623 ).

Gross fixed capital formation : Gross fixed capital formation is defined as the value of institutional units' acquisitions less disposals of fixed assets. Fixed assets are produced assets (such as machinery, equipment, buildings or other structures) that are used repeatedly or continuously in production over several accounting periods (more than one year) ( SNA 2008, 1.52 ).

Gross margin : The gross margin of a provider of reservation services is the difference between the value at which the intermediated service is sold and the value accrued to the provider of reservation services for this intermediated service.

Gross value added : Gross value added is the value of output less the value of intermediate consumption ( TSA:RMF 2008, 3.32 ).

Gross value added of tourism industries : Gross value added of tourism industries (GVATI) is the total gross value added of all establishments belonging to tourism industries, regardless of whether all their output is provided to visitors and the degree of specialization of their production process ( TSA:RMF 2008, 4.86 ).

Grossing up : Activity aimed at transforming, based on statistical methodology, micro-data from samples into aggregate-level information representative of the target population.

Health tourism : Health tourism covers those types of tourism which have as a primary motivation, the contribution to physical, mental and/or spiritual health through medical and wellness-based activities which increase the capacity of individuals to satisfy their own needs and function better as individuals in their environment and society. Health tourism is the umbrella term for the subtypes wellness tourism and medical tourism.

Imputation : Procedure for entering a value for a specific data item where the response is missing or unusable.

Inbound tourism : Inbound tourism comprises the activities of a non-resident visitor within the country of reference on an inbound tourism trip ( IRTS 2008, 2.39 ).

Inbound tourism consumption : Inbound tourism consumption is the tourism consumption of a non-resident visitor within the economy of reference ( TSA:RMF 2008, figure 2.1 ).

Inbound tourism expenditure : Inbound tourism expenditure is the tourism expenditure of a non-resident visitor within the economy of reference ( IRTS 2008, 4.15(b) ).

Innovation in tourism : Innovation in tourism is the introduction of a new or improved component which intends to bring tangible and intangible benefits to tourism stakeholders and the local community, improve the value of the tourism experience and the core competencies of the tourism sector and hence enhance tourism competitiveness and /or sustainability. Innovation in tourism may cover potential areas, such as tourism destinations, tourism products, technology, processes, organizations and business models, skills, architecture, services, tools and/or practices for management, marketing, communication, operation, quality assurance and pricing.

Institutional sector : An aggregation of institutional units on the basis of the type of producer and depending on their principal activity and function, which are considered to be indicative of their economic behaviour.

Institutional unit : The elementary economic decision-making centre characterised by uniformity of behaviour and decision-making autonomy in the exercise of its principal function.

Intermediate consumption : Intermediate consumption consists of the value of the goods and services consumed as inputs by a process of production, excluding fixed assets whose consumption is recorded as consumption of fixed capital ( SNA 2008, 6.213 ).

Internal tourism : Internal tourism comprises domestic tourism and inbound tourism, that is to say, the activities of resident and non-resident visitors within the country of reference as part of domestic or international tourism trips ( IRTS 2008, 2.40(a) ).

Internal tourism consumption : Internal tourism consumption is the tourism consumption of both resident and non-resident visitors within the economy of reference. It is the sum of domestic tourism consumption and inbound tourism consumption ( TSA:RMF 2008, figure 2.1 ).

Internal tourism expenditure : Internal tourism expenditure comprises all tourism expenditure of visitors, both resident and non-resident, within the economy of reference. It is the sum of domestic tourism expenditure and inbound tourism expenditure. It includes acquisition of goods and services imported into the country of reference and sold to visitors. This indicator provides the most comprehensive measurement of tourism expenditure in the economy of reference ( IRTS 2008, 4.20(a) ).

International Standard Industrial Classification of All Economic Activities : The International Standard Industrial Classification of All Economic Activities (ISIC) consists of a coherent and consistent classification structure of economic activities based on a set of internationally agreed concepts, definitions, principles and classification rules. It provides a comprehensive framework within which economic data can be collected and reported in a format that is designed for purposes of economic analysis, decision-taking and policymaking. The classification structure represents a standard format to organize detailed information about the state of an economy according to economic principles and perceptions (ISIC, Rev.4, 1).

International tourism : International tourism comprises inbound tourism and outbound tourism, that is to say, the activities of resident visitors outside the country of reference, either as part of domestic or outbound tourism trips and the activities of non-resident visitors within the country of reference on inbound tourism trips ( IRTS 2008, 2.40(c) ).

International visitor : An international traveller qualifies as an international visitor with respect to the country of reference if: (a) he/she is on a tourism trip and (b) he/she is a non-resident travelling in the country of reference or a resident travelling outside of it ( IRTS 2008, 2.42 ).

Job : The agreement between an employee and the employer defines a job and each self-employed person has a job ( SNA 2008, 19.30 ).

Measurement error : Error in reading, calculating or recording numerical value.

Medical tourism : Medical tourism is a type of tourism activity which involves the use of evidence-based medical healing resources and services (both invasive and non-invasive). This may include diagnosis, treatment, cure, prevention and rehabilitation.

Meetings industry : To highlight purposes relevant to the meetings industry, if a trip's main purpose is business/professional, it can be further subdivided into "attending meetings, conferences or congresses, trade fairs and exhibitions" and "other business and professional purposes". The term meetings industry is preferred by the International Congress and Convention Association (ICCA), Meeting Professionals International (MPI) and Reed Travel over the acronym MICE (Meetings, Incentives, Conferences and Exhibitions) which does not recognize the industrial nature of such activities.

Metadata : Data that defines and describes other data and processes.

MICE : See meetings industry.

Microdata : Non-aggregated observations, or measurements of characteristics of individual units.

Mirror statistics : Mirror statistics are used to conduct bilateral comparisons of two basic measures of a trade flow and are a traditional tool for detecting the causes of asymmetries in statistics (OECD GST, p. 335).

Mountain tourism : Mountain tourism is a type of tourism activity which takes place in a defined and limited geographical space such as hills or mountains with distinctive characteristics and attributes that are inherent to a specific landscape, topography, climate, biodiversity (flora and fauna) and local community. It encompasses a broad range of outdoor leisure and sports activities.

National tourism : National tourism comprises domestic tourism and outbound tourism, that is to say, the activities of resident visitors within and outside the country of reference, either as part of domestic or outbound tourism trips ( IRTS 2008, 2.40(b) ).

National tourism consumption : National tourism consumption is the tourism consumption of resident visitors, within and outside the economy of reference. It is the sum of domestic tourism consumption and outbound tourism consumption ( TSA:RMF 2008, figure 2.1 ).

National tourism expenditure : National tourism expenditure comprises all tourism expenditure of resident visitors within and outside the economy of reference. It is the sum of domestic tourism expenditure and outbound tourism expenditure ( IRTS 2008, 4.20(b) ).

Nationality : The concept of "country of residence" of a traveller is different from that of his/her nationality or citizenship ( IRTS 2008, 2.19 ).

Non-monetary indicators : Data measured in physical or other non-monetary units should not be considered a secondary part of a satellite account. They are essential components, both for the information they provide directly and in order to analyse the monetary data adequately ( SNA 2008, 29.84 ).

Observation unit : entity on which information is received and statistics are compiled.

Outbound tourism : Outbound tourism comprises the activities of a resident visitor outside the country of reference, either as part of an outbound tourism trip or as part of a domestic tourism trip ( IRTS 2008, 2.39(c) ).

Outbound tourism consumption : Outbound tourism consumption is the tourism consumption of a resident visitor outside the economy of reference ( TSA:RMF 2008, figure 2.1 ).

Outbound tourism expenditure : Outbound tourism expenditure is the tourism expenditure of a resident visitor outside the economy of reference ( IRTS 2008, 4.15(c) ).

Output : Output is defined as the goods and services produced by an establishment, a) excluding the value of any goods and services used in an activity for which the establishment does not assume the risk of using the products in production, and b) excluding the value of goods and services consumed by the same establishment except for goods and services used for capital formation (fixed capital or changes in inventories) or own final consumption ( SNA 2008, 6.89 ).

Output (main): The main output of a (productive) activity should be determined by reference to the value added of the goods sold or services rendered (ISIC rev.4, 114).

Pilot survey : The aim of a pilot survey is to test the questionnaire (pertinence of the questions, understanding of questions by those being interviewed, duration of the interview) and to check various potential sources for sampling and non-sampling errors: for instance, the place in which the surveys are carried out and the method used, the identification of any omitted answers and the reason for the omission, problems of communicating in various languages, translation, the mechanics of data collection, the organization of field work, etc.

Place of usual residence : The place of usual residence is the geographical place where the enumerated person usually resides, and is defined by the location of his/her principal dwelling (Principles and recommendations for population and housing censuses of the United Nations, 2.20 to 2.24).

Probability sample : A sample selected by a method based on the theory of probability (random process), that is, by a method involving knowledge of the likelihood of any unit being selected.

Production account : The production account records the activity of producing goods and services as defined within the SNA. Its balancing item, gross value added, is defined as the value of output less the value of intermediate consumption and is a measure of the contribution to GDP made by an individual producer, industry or sector. Gross value added is the source from which the primary incomes of the SNA are generated and is therefore carried forward into the primary distribution of income account. Value added and GDP may also be measured net by deducting consumption of fixed capital, a figure representing the decline in value during the period of the fixed capital used in a production process ( SNA 2008, 1.17 ).

Production : Economic production may be defined as an activity carried out under the control and responsibility of an institutional unit that uses inputs of labour, capital, and goods and services to produce outputs of goods or services ( SNA 2008, 6.24. ).

Purpose of a tourism trip (main): The main purpose of a tourism trip is defined as the purpose in the absence of which the trip would not have taken place ( IRTS 2008, 3.10. ). Classification of tourism trips according to the main purpose refers to nine categories: this typology allows the identification of different subsets of visitors (business visitors, transit visitors, etc.) See also destination of a tourism trip ( IRTS 2008, 3.14 ).

Quality of a tourism destination : Quality of a tourism destination is the result of a process which implies the satisfaction of all tourism product and service needs, requirements and expectations of the consumer at an acceptable price, in conformity with mutually accepted contractual conditions and the implicit underlying factors such as safety and security, hygiene, accessibility, communication, infrastructure and public amenities and services. It also involves aspects of ethics, transparency and respect towards the human, natural and cultural environment. Quality, as one of the key drivers of tourism competitiveness, is also a professional tool for organizational, operational and perception purposes for tourism suppliers.

Questionnaire and Questionnaire design : Questionnaire is a group or sequence of questions designed to elicit information on a subject, or sequence of subjects, from a reporting unit or from another producer of official statistics. Questionnaire design is the design (text, order, and conditions for skipping) of the questions used to obtain the data needed for the survey.

Reference period : The period of time or point in time to which the measured observation is intended to refer.

Relevance : The degree to which statistics meet current and potential users' needs.

Reliability : Closeness of the initial estimated value to the subsequent estimated value.

Reporting unit : Unit that supplies the data for a given survey instance, like a questionnaire or interview. Reporting units may, or may not, be the same as the observation unit.

Residents/non-residents : The residents of a country are individuals whose centre of predominant economic interest is located in its economic territory. For a country, the non-residents are individuals whose centre of predominant economic interest is located outside its economic territory.

Response and non-response : Response and non-response to various elements of a survey entail potential errors.

Response error : Response errors may be defined as those arising from the interviewing process. Such errors may be due to a number of circumstances, such as inadequate concepts or questions; inadequate training; interviewer failures; respondent failures.

Rural tourism : Rural tourism is a type of tourism activity in which the visitor's experience is related to a wide range of products generally linked to nature-based activities, agriculture, rural lifestyle / culture, angling and sightseeing. Rural tourism activities take place in non-urban (rural) areas with the following characteristics:

• Low population density;
• Landscape and land-use dominated by agriculture and forestry; and
• Traditional social structure and lifestyle

Same-day visitor (or excursionist): A visitor (domestic, inbound or outbound) is classified as a tourist (or overnight visitor), if his/her trip includes an overnight stay, or as a same-day visitor (or excursionist) otherwise ( IRTS 2008, 2.13 ).

Sample : A subset of a frame where elements are selected based on a process with a known probability of selection.

Sample survey : A survey which is carried out using a sampling method.

Sampling error : That part of the difference between a population value and an estimate thereof, derived from a random sample, which is due to the fact that only a subset of the population is enumerated.

Satellite accounts : There are two types of satellite accounts, serving two different functions. The first type, sometimes called an internal satellite, takes the full set of accounting rules and conventions of the SNA but focuses on a particular aspect of interest by moving away from the standard classifications and hierarchies. Examples are tourism, coffee production and environmental protection expenditure. The second type, called an external satellite, may add non-economic data or vary some of the accounting conventions or both. It is a particularly suitable way to explore new areas in a research context. An example may be the role of volunteer labour in the economy ( SNA 2008, 29.85 ).

SDMX, Statistical Data and Metadata Exchange : Set of technical standards and content-oriented guidelines, together with an IT architecture and tools, to be used for the efficient exchange and sharing of statistical data and metadata (SDMX).

Seasonal adjustment : Seasonal adjustment is a statistical technique to remove the effects of seasonal calendar influences on a series. Seasonal effects usually reflect the influence of the seasons themselves, either directly or through production series related to them, or social conventions. Other types of calendar variation occur as a result of influences such as number of days in the calendar period, the accounting or recording practices adopted or the incidence of moving holidays.

Self-employment job : Self-employment jobs are those jobs where remuneration is directly dependent upon the profits (or the potential of profits) derived from the goods or services produced.

Self-employed with paid employees : Self-employed with paid employees are classified as employers.

Self-employed without employees : Self-employed without employees are classified as own-account workers.

Services : Services are the result of a production activity that changes the conditions of the consuming units, or facilitates the exchange of products or financial assets. They cannot be traded separately from their production. By the time their production is completed, they must have been provided to the consumers ( SNA 2008, 6.17 ).

Social transfers in kind : A special case of transfers in kind is that of social transfers in kind. These consist of goods and services provided by general government and non-profit institutions serving households (NPISHs) that are delivered to individual households. Health and education services are the prime examples. Rather than provide a specified amount of money to be used to purchase medical and educational services, the services are often provided in kind to make sure that the need for the services is met. (Sometimes the recipient purchases the service and is reimbursed by the insurance or assistance scheme. Such a transaction is still treated as being in kind because the recipient is merely acting as the agent of the insurance scheme) (SNA 2008, 3.83).

Sports tourism : Sports tourism is a type of tourism activity which refers to the travel experience of the tourist who either observes as a spectator or actively participates in a sporting event generally involving commercial and non-commercial activities of a competitive nature.

Standard classification : Classifications that follow prescribed rules and are generally recommended and accepted.

Statistical error : The unknown difference between the retained value and the true value.

Statistical indicator : A data element that represents statistical data for a specified time, place, and other characteristics, and is corrected for at least one dimension (usually size) to allow for meaningful comparisons.

Statistical metadata : Data about statistical data.

Statistical unit : Entity about which information is sought and about which statistics are compiled. Statistical units may be identifiable legal or physical entities or statistical constructs.

Survey : An investigation about the characteristics of a given population by means of collecting data from a sample of that population and estimating their characteristics through the systematic use of statistical methodology.

System of National Accounts : The System of National Accounts (SNA) is the internationally agreed standard set of recommendations on how to compile measures of economic activity in accordance with strict accounting conventions based on economic principles. The recommendations are expressed in terms of a set of concepts, definitions, classifications and accounting rules that comprise the internationally agreed standard for measuring indicators of economic performance. The accounting framework of the SNA allows economic data to be compiled and presented in a format that is designed for purposes of economic analysis, decision-taking and policymaking ( SNA 2008, 1.1 ).

Total tourism internal demand : Total tourism internal demand, is the sum of internal tourism consumption, tourism gross fixed capital formation and tourism collective consumption ( TSA:RMF 2008, 4.114 ). It does not include outbound tourism consumption.

Tourism : Tourism refers to the activity of visitors ( IRTS 2008, 2.9 ).

Tourism characteristic activities : Tourism characteristic activities are the activities that typically produce tourism characteristic products. As the industrial origin of a product (the ISIC industry that produces it) is not a criterion for the aggregation of products within a similar CPC category, there is no strict one-to-one relationship between products and the industries producing them as their principal outputs ( IRTS 2008, 5.11 ).

Tourism characteristic products : Tourism characteristic products are those that satisfy one or both of the following criteria: a) Tourism expenditure on the product should represent a significant share total tourism expenditure (share-of-expenditure/demand condition); b) Tourism expenditure on the product should represent a significant share of the supply of the product in the economy (share-of-supply condition). This criterion implies that the supply of a tourism characteristic product would cease to exist in meaningful quantity in the absence of visitors ( IRTS 2008, 5.10 ).

Tourism connected products : Their significance within tourism analysis for the economy of reference is recognized although their link to tourism is very limited worldwide. Consequently, lists of such products will be country-specific ( IRTS 2008, 5.12 ).

Tourism consumption : Tourism consumption has the same formal definition as tourism expenditure. Nevertheless, the concept of tourism consumption used in the Tourism Satellite Account goes beyond that of tourism expenditure. Besides the amount paid for the acquisition of consumption goods and services, as well as valuables for own use or to give away, for and during tourism trips, which corresponds to monetary transactions (the focus of tourism expenditure), it also includes services associated with vacation accommodation on own account, tourism social transfers in kind and other imputed consumption. These transactions need to be estimated using sources different from information collected directly from the visitors, such as reports on home exchanges, estimations of rents associated with vacation homes, calculations of financial intermediation services indirectly measured (FISIM), etc. ( TSA:RMF 2008, 2.25 ).

Tourism destination : A tourism destination is a physical space with or without administrative and/or analytical boundaries in which a visitor can spend an overnight. It is the cluster (co-location) of products and services, and of activities and experiences along the tourism value chain and a basic unit of analysis of tourism. A destination incorporates various stakeholders and can network to form larger destinations. It is also intangible with its image and identity which may influence its market competitiveness.

Tourism direct gross domestic product : Tourism direct gross domestic product (TDGDP) is the sum of the part of gross value added (at basic prices) generated by all industries in response to internal tourism consumption plus the amount of net taxes on products and imports included within the value of this expenditure at purchasers' prices ( TSA:RMF 2008, 4.96 ).

Tourism direct gross value added : Tourism direct gross value added (TDGVA) is the part of gross value added generated by tourism industries and other industries of the economy that directly serve visitors in response to internal tourism consumption ( TSA:RMF 2008, 4.88 ).

Tourism expenditure : Tourism expenditure refers to the amount paid for the acquisition of consumption goods and services, as well as valuables, for own use or to give away, for and during tourism trips. It includes expenditures by visitors themselves, as well as expenses that are paid for or reimbursed by others ( IRTS 2008, 4.2 ).

Tourism industries : The tourism industries comprise all establishments for which the principal activity is a tourism characteristic activity. Tourism industries (also referred to as tourism activities) are the activities that typically producetourism characteristic products. The term tourism industries is equivalent to tourism characteristic activities and the two terms are sometimes used synonymously in the IRTS 2008, 5.10, 5.11 and figure 5.1 .

Tourism product : A tourism product is a combination of tangible and intangible elements, such as natural, cultural and man-made resources, attractions, facilities, services and activities around a specific center of interest which represents the core of the destination marketing mix and creates an overall visitor experience including emotional aspects for the potential customers. A tourism product is priced and sold through distribution channels and it has a life-cycle.

Tourism ratio : For each variable of supply in the Tourism Satellite Account, the tourism ratiois the ratio between the total value of tourism share and total value of the corresponding variable in the Tourism Satellite Account expressed in percentage form ( TSA:RMF 2008, 4.56 ). (See also Tourism share).

Tourism Satellite Account : The Tourism Satellite Account is the second international standard on tourism statistics (Tourism Satellite Account: Recommended Methodological Framework 2008 –TSA:RMF 2008) that has been developed in order to present economic data relative to tourism within a framework of internal and external consistency with the rest of the statistical system through its link to the System of National Accounts. It is the basic reconciliation framework of tourism statistics. As a statistical tool for the economic accounting of tourism, the TSA can be seen as a set of 10 summary tables, each with their underlying data and representing a different aspect of the economic data relative to tourism: inbound, domestic tourism and outbound tourism expenditure, internal tourism expenditure, production accounts of tourism industries, the Gross Value Added (GVA) and Gross Domestic Product (GDP) attributable to tourism demand, employment, investment, government consumption, and non-monetary indicators.

Tourism Satellite Account aggregates : The compilation of the following aggregates, which represent a set of relevant indicators of the size of tourism in an economy is recommended ( TSA:RMF 2008, 4.81 ):

• Internal tourism expenditure;
• Internal tourism consumption;
• Gross value added of tourism industries (GVATI);
• Tourism direct gross value added (TDGVA);
• Tourism direct gross domestic product (TDGDP).

Tourism sector : The tourism sector, as contemplated in the TSA, is the cluster of production units in different industries that provide consumption goods and services demanded by visitors. Such industries are called tourism industries because visitor acquisition represents such a significant share of their supply that, in the absence of visitors, their production of these would cease to exist in meaningful quantity.

Tourism share : Tourism share is the share of the corresponding fraction of internal tourism consumption in each component of supply ( TSA:RMF 2008, 4.51 ). For each industry, the tourism share of output (in value), is the sum of the tourism share corresponding to each product component of its output ( TSA:RMF 2008, 4.55 ). (See also Tourism ratio ).

Tourism single-purpose consumer durable goods : Tourism single-purpose consumer durables is a specific category of consumer durable goods that include durable goods that are used exclusively, or almost exclusively, by individuals while on tourism trips ( TSA:RMF 2008 , 2.41 and Annex 5 ).

Tourism trip : Trips taken by visitors are tourism trips ( IRTS 2008, 2.29 ).

Tourist (or overnight visitor): A visitor (domestic, inbound or outbound) is classified as a tourist (or overnight visitor), if his/her trip includes an overnight stay, or as a same-day visitor (or excursionist) otherwise ( IRTS 2008, 2.13 ).

Tourism value chain : The tourism value chain is the sequence of primary and support activities which are strategically fundamental for the performance of the tourism sector. Linked processes such as policy making and integrated planning, product development and packaging, promotion and marketing, distribution and sales and destination operations and services are the key primary activities of the tourism value chain. Support activities involve transport and infrastructure, human resource development, technology and systems development and other complementary goods and services which may not be related to core tourism businesses but have a high impact on the value of tourism.

Travel / traveller : Travel refers to the activity of travellers. A traveller is someone who moves between different geographic locations, for any purpose and any duration ( IRTS 2008, 2.4 ). The visitor is a particular type of traveller and consequently tourism is a subset of travel.

Travel group : A travel group is made up of individuals or travel parties travelling together: examples are people travelling on the same package tour or youngsters attending a summer camp ( IRTS 2008, 3.5 ).

Travel item (in balance of payments): Travel is an item of the goods and services account of the balance of payments: travel credits cover goods and services for own use or to give away acquired from an economy by non-residents during visits to that economy. Travel debits cover goods and services for own use or to give away acquired from other economies by residents during visits to other economies ( BPM6, 10.86 ).

Travel party : A travel party is defined as visitors travelling together on a trip and whose expenditures are pooled ( IRTS 2008, 3.2 ).

Trip : A trip refers to the travel by a person from the time of departure from his/her usual residence until he/she returns: it thus refers to a round trip. Trips taken by visitors are tourism trips.

Urban/city tourism : Urban/city tourism is a type of tourism activity which takes place in an urban space with its inherent attributes characterized by non-agricultural based economy such as administration, manufacturing, trade and services and by being nodal points of transport. Urban/city destinations offer a broad and heterogeneous range of cultural, architectural, technological, social and natural experiences and products for leisure and business.

Usual environment: The usual environment of an individual, a key concept in tourism, is defined as the geographical area (though not necessarily a contiguous one) within which an individual conducts his/her regular life routines ( IRTS 2008, 2.21 ).

Usual residence : The place of usual residence is the geographical place where the enumerated person usually resides (Principles and recommendations for population and housing censuses of the United Nations, 2.16 to 2.18).

Vacation home : A vacation home (sometimes also designated as a holiday home) is a secondary dwelling that is visited by the members of the household mostly for purposes of recreation, vacation or any other form of leisure ( IRTS 2008, 2.27 ).

Valuables : Valuables are produced goods of considerable value that are not used primarily for purposes of production or consumption but are held as stores of value over time ( SNA 2008, 10.13 ).

Visit : A trip is made up of visits to different places.The term "tourism visit" refers to a stay in a place visited during a tourism trip ( IRTS 2008, 2.7 and 2.33 ).

Visitor : A visitor is a traveller taking a trip to a main destination outside his/her usual environment, for less than a year, for any main purpose (business, leisure or other personal purpose) other than to be employed by a resident entity in the country or place visited ( IRTS 2008, 2.9 ). A visitor (domestic, inbound or outbound) is classified as a tourist (or overnight visitor), if his/her trip includes an overnight stay, or as a same-day visitor (or excursionist) otherwise ( IRTS 2008, 2.13 ).

Wellness tourism : Wellness tourism is a type of tourism activity which aims to improve and balance all of the main domains of human life including physical, mental, emotional, occupational, intellectual and spiritual. The primary motivation for the wellness tourist is to engage in preventive, proactive, lifestyle-enhancing activities such as fitness, healthy eating, relaxation, pampering and healing treatments.

Travel, Tourism & Hospitality

Global tourism industry - statistics & facts

What are the leading global tourism destinations, digitalization of the global tourism industry, how important is sustainable tourism, key insights.

Detailed statistics

Total contribution of travel and tourism to GDP worldwide 2019-2033

Number of international tourist arrivals worldwide 1950-2023

Global leisure travel spend 2019-2022

Editor’s Picks Current statistics on this topic

Current statistics on this topic.

Leading global travel markets by travel and tourism contribution to GDP 2019-2022

Travel and tourism employment worldwide 2019-2033

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• Basic Statistic Leading global travel markets by travel and tourism contribution to GDP 2019-2022
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• Premium Statistic Global business travel spending 2001-2022
• Premium Statistic Number of international tourist arrivals worldwide 1950-2023
• Basic Statistic Number of international tourist arrivals worldwide 2005-2023, by region
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Total contribution of travel and tourism to gross domestic product (GDP) worldwide in 2019 and 2022, with a forecast for 2023 and 2033 (in trillion U.S. dollars)

Travel and tourism: share of global GDP 2019-2033

Share of travel and tourism's total contribution to GDP worldwide in 2019 and 2022, with a forecast for 2023 and 2033

Total contribution of travel and tourism to GDP in leading travel markets worldwide in 2019 and 2022 (in billion U.S. dollars)

Leisure tourism spending worldwide from 2019 to 2022 (in billion U.S. dollars)

Global business travel spending 2001-2022

Expenditure of business tourists worldwide from 2001 to 2022 (in billion U.S. dollars)

Number of international tourist arrivals worldwide from 1950 to 2023 (in millions)

Number of international tourist arrivals worldwide 2005-2023, by region

Number of international tourist arrivals worldwide from 2005 to 2023, by region (in millions)

Number of travel and tourism jobs worldwide from 2019 to 2022, with a forecast for 2023 and 2033 (in millions)

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Global hotel and resort industry market size worldwide 2013-2023

Market size of the hotel and resort industry worldwide from 2013 to 2022, with a forecast for 2023 (in trillion U.S. dollars)

Most valuable hotel brands worldwide 2023, by brand value

Leading hotel brands based on brand value worldwide in 2023 (in billion U.S. dollars)

Leading hotel companies worldwide 2023, by number of properties

Leading hotel companies worldwide as of June 2023, by number of properties

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Number of hotels opened worldwide from 2021 to 2022, with a forecast for 2023 and 2024

Hotel room openings worldwide 2021-2024

Number of hotel rooms opened worldwide from 2021 to 2022, with a forecast for 2023 and 2024

Countries with the most hotel construction projects in the pipeline worldwide 2022

Countries with the highest number of hotel construction projects in the pipeline worldwide as of Q4 2022

• Premium Statistic Airports with the most international air passenger traffic worldwide 2022
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• Premium Statistic Number of users of car rentals worldwide 2019-2028
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• Premium Statistic Carbon footprint of international tourism transport worldwide 2005-2030, by type

Airports with the most international air passenger traffic worldwide 2022

Leading airports for international air passenger traffic in 2022 (in million international passengers)

Market value of selected airlines worldwide 2023

Market value of selected airlines worldwide as of May 2023 (in billion U.S. dollars)

Global passenger rail users forecast 2017-2027

Worldwide number of passenger rail users from 2017 to 2022, with a forecast through 2027 (in billion users)

Daily ridership of bus rapid transit systems worldwide by region 2023

Number of daily passengers using bus rapid transit (BRT) systems as of April 2023, by region

Number of users of car rentals worldwide 2019-2028

Number of users of car rentals worldwide from 2019 to 2028 (in millions)

Number of users in selected countries in the Car Rentals market in 2023

Number of users in selected countries in the Car Rentals market in 2023 (in million)

Carbon footprint of international tourism transport worldwide 2005-2030, by type

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• Premium Statistic Leading museums by highest attendance worldwide 2019-2022
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Leading museums by highest attendance worldwide 2019-2022

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Leading amusement and theme parks worldwide from 2019 to 2022, by attendance (in millions)

Monuments on the UNESCO world heritage list 2023, by type

Number of monuments on the UNESCO world heritage list as of September 2023, by type

Selected countries with the most Michelin-starred restaurants worldwide 2023

Number of Michelin-starred restaurants in selected countries and territories worldwide as of July 2023

Online travel market

• Premium Statistic Online travel market size worldwide 2017-2028
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Online travel market size worldwide 2017-2028

Online travel market size worldwide from 2017 to 2023, with a forecast until 2028 (in billion U.S. dollars)

Estimated desktop vs. mobile revenue of leading OTAs worldwide 2023

Estimated desktop vs. mobile revenue of leading online travel agencies (OTAs) worldwide in 2023 (in billion U.S. dollars)

Number of aggregated downloads of leading online travel agency apps worldwide 2023

Number of aggregated downloads of selected leading online travel agency apps worldwide in 2023 (in millions)

Market cap of leading online travel companies worldwide 2023

Market cap of leading online travel companies worldwide as of September 2023 (in million U.S. dollars)

Estimated EV/Revenue ratio in the online travel market 2024, by segment

Estimated enterprise value to revenue (EV/Revenue) ratio in the online travel market worldwide as of April 2024, by segment

Estimated EV/EBITDA ratio in the online travel market 2024, by segment

Estimated enterprise value to EBITDA (EV/EBITDA) ratio in the online travel market worldwide as of April 2024, by segment

Selected trends

• Premium Statistic Global travelers who believe in the importance of green travel 2023
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Global travelers who believe in the importance of green travel 2023

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Sustainable initiatives travelers would adopt worldwide 2022, by region

Main sustainable initiatives travelers are willing to adopt worldwide in 2022, by region

Airbnb revenue worldwide 2017-2023

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Airbnb nights and experiences booked worldwide 2017-2023

Nights and experiences booked with Airbnb from 2017 to 2023 (in millions)

Technologies global hotels plan to implement in the next three years 2022

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Hotel technologies global consumers think would improve their future stay 2022

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• Premium Statistic Travel and tourism revenue worldwide 2019-2028, by segment
• Premium Statistic Distribution of sales channels in the travel and tourism market worldwide 2018-2028
• Premium Statistic Inbound tourism visitor growth worldwide 2020-2025, by region
• Premium Statistic Outbound tourism visitor growth worldwide 2020-2025, by region

Travel and tourism revenue worldwide 2019-2028, by segment

Revenue of the global travel and tourism market from 2019 to 2028, by segment (in billion U.S. dollars)

Distribution of sales channels in the travel and tourism market worldwide 2018-2028

Revenue share of sales channels of the travel and tourism market worldwide from 2018 to 2028

Inbound tourism visitor growth worldwide 2020-2025, by region

Inbound tourism visitor growth worldwide from 2020 to 2022, with a forecast until 2025, by region

Outbound tourism visitor growth worldwide 2020-2025, by region

Outbound tourism visitor growth worldwide from 2020 to 2022, with a forecast until 2025, by region

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What is a Destination Management Company (DMC)?

by Marie Anne MacRae | 05 7, 2021 | TTC

May 7, 2021 | TTC

by Marie Anne MacRae

The travel industry is a very big place. You may have worked in it for many years and still never heard of a destination management company. If you haven’t, though, you could be missing out on some important business opportunities. 

To celebrate The Travel Corporation’s expansion of our DMC offering , we’re giving the low-down on these crucial pieces of the travel and tourism puzzle. Let’s take a look.

What is a DMC?

A destination management company is an enterprise that manages a range of products and services at a popular travel destination. Put very simply, they’re the companies that make travel experiences work. Whether you’re looking for someone to provide a safari trip, coach tours, cruises, catering or just about any other travel service you can name, it’s a DMC that makes it happen.

DMCs are usually smaller, local organizations that have been on the ground at a destination for years. They bring crucial local knowledge and experience to a travel enterprise, giving international partners the insight they need to create safe and exciting products.

What services can they help me with?

Name any travel experience and you’ll find a DMC out there that can provide it for you. The obvious services they provide are travel experiences that might require specialized equipment or skills, like coach tours, flotilla holidays or safaris. But they can also provide a huge range of smaller services that make the holiday planning experience a lot smoother. These include things like airport pickups and transfers, accommodation bookings, vehicle rental, catering or event management. If you’re looking to provide a really unique experience, such as bungee jumping, rainforest hikes or exclusive entry to local sights, the easiest way to provide it is by going through a DMC.

Why work with a DMC?

Destination Management Companies have two crucial benefits: they’re experts in the local area and specialists in the particular services that they offer. That means that you, as a travel professional, don’t have to be. Working with a DMC allows you to book any experience in any location around the world in the confidence that it will be delivered safely and to a high standard. 

However, the benefits don’t end there. Most DMCs have been running their travel businesses successfully for decades. That means they have localized knowledge about what works and what doesn’t in their region. They know that this road is usually flooded in summer, or that the best views of that valley are at sunrise – the secrets that you simply can’t know. That allows you to create better travel experiences that are more likely to do well in a competitive market.

Finally, many DMCs operate a huge range of different services or have partners that do so. That means that they can act as a one-stop shop when you’re creating a travel package. Bring on a DMC partner and there’s a good chance they can book just about everything you’ll need.

Who hires a DMC?

DMCs are a critical piece of the puzzle for international travel agents. If you’re building a travel product with inclusive services, a destination management company will help you put all the pieces together and plug any logistical gaps. They’re also perfect if you’re building something completely new for the market; they’ll offer a great perspective on the most successful travel experiences in the region.

DMCs are also ideal if you’re creating bespoke travel packages for an exclusive clientele. The huge range of services they provide allows you to be more flexible and plan more complex itineraries. And when your client’s needs change, the DMC is there to help you adapt on the fly, providing services as and when you need them.

DMCs are a big help no matter how you work. To learn more about what DMCs can do for you here at TTC, take a look at our services page. You’ll be surprised at how easy it is.

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Chapter 7. Travel Services

7.1 Components of Travel Services

The travel services sector helps travellers arrange and reserve their vacation or business trips (StatsCan, 2018). This sector is made up of businesses and organizations that work in a coordinated effort to provide travellers with seamless arrangements to maximize their travel experience. Go2HR describes travel services experiences and employment opportunities as follows:

Within this sector, you have the flexibility of working in various capacities with event and conference planning organizations, travel companies and organizations, as well as associations, government agencies and companies that specialize in serving the needs of the tourism sector as a whole. (go2HR, Essential Tips – Travel Services, 2020)

Before we move on, let’s explore the term travel services a little more. As detailed in Chapter 1 , Canada, the United States, and Mexico have used the NAICS guidelines, which define the tourism industry as consisting of transportation, accommodation, food and beverage, recreation and entertainment, and travel services (Tourism HR Canada, 2020). These five sectors are defined and further detailed in B.C. by the B.C. government (BC Government, 2014) and go2HR on their website (go2HR, Career Explorer, 2020).

For many years, however, the tourism industry was classified into eight sectors: accommodations, adventure and recreation, attractions, events and conferences, food and beverage, tourism services, transportation, and travel trade (Yukon Department of Tourism and Culture, 2020; go2HR, 2020, What is Tourism? – Travel Services).

Tourism services support industry development and the delivery of guest experiences, and some of these are missing from the NAICS classification. To ensure you have a complete picture of the tourism industry in BC, this chapter will cover both the NAICS travel services activities and some additional tourism services.

First, we’ll review the components of travel services as identified under NAICS, as well as exploring popular careers within:

• Travel agencies (brick and mortar)
• Online Travel Agencies/OTA
• Tour operators
• Destination marketing organizations (DMOs)

Other Organizations

Following these definitions and descriptions, we’ll take a look at some other support functions that fall under tourism services. These include sector organizations, tourism and hospitality human resources organizations, training providers, educational institutions, government branches and ministries, economic development and city planning offices, and consultants.

Finally, we’ll look at issues and trends in travel services, both at home, and abroad.

While the application of travel services functions are structured somewhat differently around the world, there are a few core types of travel services in every destination. Essentially, travel services are those processes used by guests to book components of their trip. Let’s explore these services in more detail.

Travel Agencies

A travel agency is a business that operates as the intermediary between the travel industry (supplier) and the traveller (purchaser). Part of the role of the travel agency is to market prepackaged travel tours and holidays to potential travellers. The agency can further function as a broker between the traveller and hotels, car rentals, and tour companies (Goeldner & Ritchie, 2003). Travel agencies can be small and privately owned or part of a larger entity.

A travel agent is the direct point of contact for a traveller who is researching and intending to purchase packages and experiences through an agency. Travel agents can specialize in certain types of travel including specific destinations; outdoor adventures; and backpacking, rail, cruise, cycling, or culinary tours, to name a few. These specializations can help travellers when they require advice about their trips. Some travel agents operate at a fixed address and others offer services both online and at a bricks-and-mortar location. Travellers are then able to have face-to-face conversations with their agents and also reach them by phone or by email. To promote professionalism within the travel industry, travel counsellors can apply for a specialized diploma or certificate in travel from ACTA (ACTA, 2020a; go2HR, 2020a).

Today, travellers have the option of researching and booking everything they need online without the help of a travel agent. As technology and the internet are increasingly being used to market destinations, people can now choose to book tours with a particular agency or agent, or they can be identified as seeking Domestic Independent Travel (DIT) or Foreign Independent Travel (FIT) , by creating their own itineraries from a number of suppliers.

Online Travel Agents (OTAs)

Increasing numbers of travellers are turning to online travel agents (OTAs), companies that aggregate accommodations and transportation options and allow users to choose one or many components of their trip based on price or other incentives. Examples of OTAs include iTravel2000, Booking.com, Expedia.ca, Hotwire.com, and Kayak.com. OTAs continue to gain popularity with the travelers; in 2012, they reported online sales of almost $100 billion (Carey, Kang, & Zea, 2012) and almost triple that figure, upward of $278 billion, in 2013 ( The Economist , 2014).

In early 2015 Expedia purchased Travelocity for $280 million, merging two of the world’s largest travel websites. Expedia became the owner of Hotels.com, Hotwire, Egencia, and Travelocity brands, facing its major competition from Priceline (Alba, 2015).

Although OTAs can provide lower-cost travel options to travellers and the freedom to plan and reserve when they choose, they have posed challenges for the tourism industry and travel services infrastructure. As evidenced by the merger of Expedia and Travelocity, the majority of popular OTA sites are owned by just a few companies, causing some concern over lack of competition between brands. Additionally, many OTAs charge accommodation providers and operators a commission to be listed in their inventory system. Commission-based services, as applied by Kayak, Expedia, Hotwire, Hotels.com, and others, can have an impact on smaller operators who cannot afford to pay commissions for multiple online inventories (Carey, Kang & Zea, 2012). Being excluded from listings can decrease the marketing reach of the product to potential travellers, which is a challenge when many service providers in the tourism industry are small or medium-sized businesses with budgets to match.

While the industry and communities struggle to keep up with the changing dynamics of travel sales, travellers are adapting to this new world order. One of these adaptations is the ever-increasing use of mobile devices for travel booking. The Expedia Future of Travel Report found that 49% of travellers from the millennial generation (which includes those born between 1980 and 1999) use mobile devices to book travel (Expedia Inc., 2014), and these numbers are expected to continue to increase. Travel agencies are reacting by developing personalized features for digital travellers and mobile user platforms (ETC Digital, 2014). With the number of smartphone users expected to reach 1.75 billion in 2014 (CWT Travel Management Institute, 2014) these agencies must adapt as demand dictates.

A key feature of travel agencies’ (and to a growing extent transportation carriers) mobile services includes the ability to have up-to-date itinerary changes and information sent directly to consumers’ phones (Amadeus, 2014). By using mobile platforms that can develop customized, up-to-date travel itineraries for clients, agencies and operators are able to provide a personal touch, ideally increasing customer satisfaction rates.

Take a Closer Look: PATA — The Future of Travel is Personalisation at Scale

“The industry has changed monumentally over the past decade. The rise of meta-search websites and sharing economy services like Airbnb is giving travellers more control and choice than ever before. However, this is nothing compared to the changes that are on the horizon as technologies like mobile, AR, AI, and VR become mainstream.

One thing is certain; the pace of change is accelerating. Against this backdrop, the travel industry as a whole will need to fundamentally shift its focus to continuous innovation.” (PATA, 2019)

Despite the growth and demand for OTAs, brick and mortar travel agencies are still in demand by travellers (IBISWorld, 2019) as they have both an online presence and physical locations. The COVID-19 pandemic may see an increase in travellers relying on personal contact with brick and mortar travel agencies but at a distance through mail and phone.

Tour Operators

A tour operator packages all or most of the components of an offered trip and then sells them to the traveller. These packages can also be sold through retail outlets or travel agencies (CATO, 2020; Goeldner & Ritchie, 2003). Tour operators work closely with hotels, transportation providers, and attractions in order to purchase large volumes of each component and package these at a better rate than the traveller could if purchasing individually. Tour operators generally sell to the leisure market.

Inbound, Outbound, and Receptive Tour Operators

Tour operators may be inbound, outbound, or receptive:

• Inbound tour operators  bring travellers into a country as a group or through individual tour packages (e.g., a package from China to visit Canada).
• Outbound tour operators work within a country to take travellers to other countries (e.g., a package from Canada to the United Kingdom).
• Receptive tour operators (RTOs) are not travel agents, and they do not operate the tours. They represent the various products of tourism suppliers to tour operators in other markets in a business-to-business (B2B) relationship. Receptive tour operators are key to selling packages to overseas markets (Destination BC, 2020) and creating awareness around possible product.

Destination Marketing Organizations

Destination marketing organizations (DMOs) include national tourism boards, state/provincial tourism offices, and community convention and visitor bureaus around the world. DMOs promote “the long-term development and marketing of a destination, focusing on convention sales, tourism marketing and service” (Destinations BC, 2020).

Spotlight On: Destinations International

Destinations International is the global trade association for official DMOs. It is made up of over 600 official DMOs in 15 countries around the world. DMAI provides its members with information, resources, research, networking opportunities, professional development, and certification programs. For more information, visit the Destinations International website.

With the proliferation of other planning and booking channels, including OTA s, today’s DMOs are shifting away from travel services functions and placing a higher priority on destination management components.

Working Together

One way tour operators, DMOs, and travel agents work together is by participating in familiarization tours (FAMs for short). These are usually hosted by the local DMO and include visits to different tour operators within a region. FAM attendees can be media, travel agents, RTO representatives, and tour operator representatives. FAMs are frequently low to no cost for the guests as the purpose is to orient them to the tour product or experience so they can promote or sell it to potential guests.

The majority of examples in this chapter so far have pertained to leisure travellers. There are, however, specialty organizations that deal specifically with business trips.

Spotlight On: Global Business Travel Association (GBTA) Canada

“GBTA Canada is the voice of the Canadian business travel industry. We believe in providing the business travel and meetings community with a global platform to serve as a resource library for their peers, to implement world-class Conferences, workshops and virtual meetings, and to foster an interactive network of innovation and support.” The GBTA state that their economic impact contributes $23.5 billion CAD in Canadian business travel (Economic Impact Study) and “$435+ billion CAD of business travel and meetings expenditures represented globally.” Visit the GBTA website .

Business Travel Planning and Reservations

Unlike leisure trips, which are generally planned and booked by end consumers using their choice of tools, business travel often involves a travel management company, or its online tools. Travel managers negotiate with suppliers and ensure that all the trip components are cost effective and comply with the policies of the organization.

Many business travel planners rely on global distribution systems (GDS) to price and plan components. GDS combine information from a group of suppliers, such as airlines. In the past, this has created a chain of information from the supplier to GDS to the travel management company. Today, however, there is a push from airlines (through the International Air Transport Association’s Resolution 787) to dissolve the GDS model and forge direct relationships with buyers (BTN Group, 2014).

Destination Management Companies

According to the Association of Destination Management Executives International (ADMEI), a destination management company (DMC) specializes in designing and implementing corporate programs, and “is a strategic partner to provide creative local experiences in event management, tours/activities, transportation, entertainment, and program logistics” (ADMEI, 2020). The packages produced by DMCs are extraordinary experiences rather than general business trips. These are typically used as employee incentives, corporate retreats, product launches, and loyalty programs. DMCs are the one point of contact for the client corporation, arranging for airfare, airport transfers, ground transportation, meals, special activities, and special touches such as branded signage, gifts, and decor (ADMEI, 2020). The end user is simply given (or awarded) the package and then liaises with the DMC to ensure particular arrangements meet his or her needs and schedule.

As you can see, travel services range from online to personal, and from leisure to business applications. Now that you have a general sense of the components of travel services, let’s look at some examples in Canada and BC.

Under NAICS, businesses and functions that assist with planning and reserving components of the visitor experience.

Other services that work to support the development of tourism and the delivery of guest experiences.

A business that provides a physical location for travel planning requirements.

An individual who helps the potential traveller with trip planning and booking services, often specializing in specific types of travel.

A trade organization established in 1977 to ensure high standards of customer service, engage in advocacy for the trade, conduct research, and facilitate travel agent training.

A service that allows the traveller to research, plan, and purchase travel without the assistance of a person, using the internet on sites such as Expedia.ca or Hotels.com.

An operator who packages suppliers together (hotel + activity) or specializes in one type of activity or product.

An operator who packages products together to bring visitors from external markets to a destination.

An operator who packages and sells travel products to people within a destination who want to travel abroad.

Someone who represents the products of tourism suppliers to tour operators in other markets in a business-to-business (B2B) relationship.

Also known as a destination management organization; includes national tourism boards, state/provincial tourism offices, and community convention and visitor bureaus.

Tours provided to overseas travel agents, travel agencies, RTOs, and others to provide information about a certain product at no or minimal cost to participants. The short form is pronounced like the start of the word "family" (not as each individual letter).

A company that creates and executes corporate travel and event packages designed for employee rewards or special retreats.

Introduction to Tourism and Hospitality in BC - 2nd Edition Copyright © 2015, 2020, 2021 by Morgan Westcott and Wendy Anderson, Eds is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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Definition of tourist

• excursionist
• rubbernecker
• traveller
• tripper [ chiefly British ]

Examples of tourist in a Sentence

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'tourist.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

1775, in the meaning defined at sense 1

Phrases Containing tourist

tourist attractions

• tourist card
• tourist class
• tourist court
• tourist season
• tourist trap

Dictionary Entries Near tourist

Cite this entry.

“Tourist.” Merriam-Webster.com Dictionary , Merriam-Webster, https://www.merriam-webster.com/dictionary/tourist. Accessed 26 Apr. 2024.

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Is Southwest about to end its free-for-all seating?

The company says it is ‘very seriously studying’ alternatives to its signature open-seating system.

Southwest Airlines fans know the drill: Check in to your flight exactly 24 hours in advance and secure your spot in line to board the plane. What seat you’ll end up in? That’s a mystery until the last minute.

A puzzle to some and an invigorating challenge to others, Southwest’s unique boarding process and one-class cabin are now under the microscope as the airline looks for ways to prop up its financial performance. In a call with investors Thursday, Southwest CEO Bob Jordan said executives are “very seriously studying” seating and the way passengers board the planes.

“It’s been several years since we last studied this in-depth, and customer preference and expectations change over time,” Jordan said. “We are also studying the operations and financial benefits of any potential change.”

Unlike most airlines, Southwest doesn’t have a premium section on its planes that commands higher fares. Where other carriers might charge extra for a cushy seat in the first few rows or an extra-legroom option near the front, Southwest customers can grab whatever seat is open. A spot near the front won’t come with any additional frills, however.

In a news release announcing quarterly earnings, a conference call discussing those results and an interview with CNBC , representatives said they were taking a deep look at customer preferences around seating and boarding. The current open-seating system was put in place when airliners were generally less full, the company said, noting that preferences change as planes fill up.

“There’s no decision, there’s nothing to report other than we are seriously looking at this,” Jordan said in response to a question about seating. “But early indications both for our customers and for Southwest look pretty darn interesting.”

While Southwest has contemplated the possibility of assigned seating for nearly two decades at least , the review has accelerated over the past six months, the CEO said. Jordan said the company will say more during an event for investors in September. The company has also recently said that it is preparing to add red-eye flights in the next couple of years.

Today, Southwest passengers can pay more to end up in a better seat, even without picking that seat in advance. Upgrades that provide priority boarding and early check-in give customers the first pick of spots. The airline makes “hundreds of millions of dollars” from those upgraded boarding options, executives said last year.

“They’re in kind of a pickle regarding revenue generation, so they’re looking at everything,” said Robert W. Mann, a consultant and former airline executive. “I think what they have seen is that when they’ve tweaked their existing cattle call … they find it to be very lucrative.”

He said that if the airline could deliver a more “pleasant” boarding process, or seat selection for a fee, it would probably be attractive to travelers.

“There’s nothing about their boarding process that they couldn’t improve,” Mann said.

Travel analyst Henry Harteveldt, president of Atmosphere Research Group , said he did research more than a decade ago that found a large number of people avoided Southwest because it did not offer extra-legroom seats, assigned seats or a premium business-class cabin. He said that the airline could make “an enormous amount of money” by adding assigned seating — and that travelers would probably welcome knowing what seat they would end up in.

“I think it could be an incredibly positive thing for the airline, but I recognize that Southwest has a more-than-50-year history of being egalitarian, of having open seating and being different from other airlines,” he said.

More on air travel

Leave flying to the pros: Think you could land a plane in an emergency? Experts say you’re wrong . Here’s what you should actually do if something goes awry during a flight .

Pet peeves: Why do “gate lice” line up early for a flight ? Psychologists explained for us. Another move that annoys airline workers: abusing the flight attendant call button . For more on how to behave on a flight, check out our 52 definitive rules of flying .

Plane mess: Stories about extremely disgusting airplanes have been grossing out travelers. The question of plane cleanups became the subject of a recent debate after a flight attendant allegedly told a pregnant passenger to pick up the popcorn spilled by her toddler.

Frequent flying: Airline status isn’t what it used to be, but at least there are some good movies and TV shows to watch in the air. And somewhere out there, experts are trying to make airline food taste good.

Is Southwest going to start assigning seats? CEO says the airline is weighing changes.

Southwest Airlines is considering doing away with open, single-class seating on its aircraft.

In an interview with CNBC , ahead of the airline’s first-quarter earnings call on Thursday, CEO Bob Jordan said the company is weighing options for cabin reconfiguration to address its recent revenue shortfall.

“We’re looking into new initiatives, things like the way we seat and board our aircraft,” Jordan told the network.

Southwest has long differentiated itself from other airlines with one class of seating and little variability – no extra legroom seats or first class on its 737 fleet. But now, Jordan said it may be time to change the strategy.

Cruising Altitude: Another Boeing plane issue? Don't fall for the headlines.

“Customer preferences do change over time,” he told CNBC. He acknowledged the airline hasn’t made any decisions on implementing a new strategy but said studies about what they could do have yielded “interesting” results. 

For now, the only reliable way for Southwest customers can get their seating preference is to pay extra for an earlier boarding position. Southwest Airlines does not currently assign seats and passengers claim their real estate as they board the plane in an assigned order. 

During Thursday's earnings call, Jordan confirmed the airline was exploring updates to its seating and boarding processes. He also announced Southwest would be ending service to Syracuse, New York; George Bush Intercontinental Airport in Houston (the airline will still serve William P. Hobby Airport); Cozumel, Mexico and Bellingham, Washington. Jordan cited underperformance in those markets as the reason for their closure.

Zach Wichter is a travel reporter for USA TODAY based in New York. You can reach him at [email protected].

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Meaning of tourist in English

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• I must look like the typical tourist with my shorts and my camera .
• My dad has a cottage which he rents out to tourists.
• The Caribbean is a popular tourist destination .
• Bus-loads of tourists pour into this place in the summer .
• A year after the hurricane , tourists are gradually beginning to come back to the region .
• air corridor
• amenity kit
• high season
• phrase book
• post-holiday
• put something up
• ranger station
• tourist trap
• trailer park
• youth hostel

You can also find related words, phrases, and synonyms in the topics:

tourist | American Dictionary

Tourist | business english, examples of tourist, translations of tourist.

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of or relating to birds

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What the New Overtime Rule Means for Workers

One of the basic principles of the American workplace is that a hard day’s work deserves a fair day’s pay. Simply put, every worker’s time has value. A cornerstone of that promise is the  Fair Labor Standards Act ’s (FLSA) requirement that when most workers work more than 40 hours in a week, they get paid more. The  Department of Labor ’s new overtime regulation is restoring and extending this promise for millions more lower-paid salaried workers in the U.S.

Overtime protections have been a critical part of the FLSA since 1938 and were established to protect workers from exploitation and to benefit workers, their families and our communities. Strong overtime protections help build America’s middle class and ensure that workers are not overworked and underpaid.

Some workers are specifically exempt from the FLSA’s minimum wage and overtime protections, including bona fide executive, administrative or professional employees. This exemption, typically referred to as the “EAP” exemption, applies when: 

1. An employee is paid a salary,  

2. The salary is not less than a minimum salary threshold amount, and 

3. The employee primarily performs executive, administrative or professional duties.

While the department increased the minimum salary required for the EAP exemption from overtime pay every 5 to 9 years between 1938 and 1975, long periods between increases to the salary requirement after 1975 have caused an erosion of the real value of the salary threshold, lessening its effectiveness in helping to identify exempt EAP employees.

The department’s new overtime rule was developed based on almost 30 listening sessions across the country and the final rule was issued after reviewing over 33,000 written comments. We heard from a wide variety of members of the public who shared valuable insights to help us develop this Administration’s overtime rule, including from workers who told us: “I would love the opportunity to...be compensated for time worked beyond 40 hours, or alternately be given a raise,” and “I make around $40,000 a year and most week[s] work well over 40 hours (likely in the 45-50 range). This rule change would benefit me greatly and ensure that my time is paid for!” and “Please, I would love to be paid for the extra hours I work!”

The department’s final rule, which will go into effect on July 1, 2024, will increase the standard salary level that helps define and delimit which salaried workers are entitled to overtime pay protections under the FLSA. 

Starting July 1, most salaried workers who earn less than $844 per week will become eligible for overtime pay under the final rule. And on Jan. 1, 2025, most salaried workers who make less than $1,128 per week will become eligible for overtime pay. As these changes occur, job duties will continue to determine overtime exemption status for most salaried employees.

The rule will also increase the total annual compensation requirement for highly compensated employees (who are not entitled to overtime pay under the FLSA if certain requirements are met) from $107,432 per year to $132,964 per year on July 1, 2024, and then set it equal to $151,164 per year on Jan. 1, 2025.

Starting July 1, 2027, these earnings thresholds will be updated every three years so they keep pace with changes in worker salaries, ensuring that employers can adapt more easily because they’ll know when salary updates will happen and how they’ll be calculated.

The final rule will restore and extend the right to overtime pay to many salaried workers, including workers who historically were entitled to overtime pay under the FLSA because of their lower pay or the type of work they performed. 

We urge workers and employers to visit  our website to learn more about the final rule.

Jessica Looman is the administrator for the U.S. Department of Labor’s Wage and Hour Division. Follow the Wage and Hour Division on Twitter at  @WHD_DOL  and  LinkedIn .  Editor's note: This blog was edited to correct a typo (changing "administrator" to "administrative.")

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• Fair Labor Standards Act
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