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Tourism ยป Why Tourism Has Grown

What you'll learn this session

Study time: 30 minutes

Cambridge spec: 9.3.1

  • The factors that have made tourism grow into a huge global industry
  • How more money, more time, cheaper travel and new technology all play a part
  • The global trend in international arrivals, including the COVID-19 dip
  • The difference between domestic and international tourism

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A fast-growing industry

Tourism is travelling to and staying in places outside your usual home area for leisure, business or to visit family and friends. It is part of the tertiary sector, so it is a service industry. It now gives jobs to a very large number of people around the world.

The growth has been rapid. According to UN Tourism (the UN agency for tourism), there were only about 25 million international tourist arrivals in 1950. By 2019 there were about 1.5 billion. That is roughly 60 times more in under 70 years.

Key terms:

  • Tourism: travel to places away from home for leisure, business or visiting friends and family, with at least one night away.
  • Disposable income: the money left to spend after paying tax and essential bills such as housing and food.
  • Package holiday: a holiday where transport, accommodation and sometimes meals are sold together at one price.
  • Budget airline: an airline that sells low-price tickets and charges extra for things such as bags and meals.
  • International tourism: tourists travelling to another country.
  • Domestic tourism: tourists travelling within their own country.

Factors that led to growth

No single factor explains the growth. It is a mixture of people having more money, more time, easier travel and more reasons to go.

1. More money and more time

💰 Rising incomes

As countries develop, wages rise and more people have disposable income. A holiday is not a necessity, so it only becomes possible once the basics are paid for. Fast-growing MICs now have a large new group of tourists with money to spend.

📅 Paid holidays and leisure time

Laws gave workers paid time off. In the UK, the Holidays with Pay Act of 1938 was an example. Shorter working weeks, weekends and longer retirement add more leisure time for travel.

👴 Ageing populations with savings

In many HICs people live longer and retire healthy. Many have pensions and savings, no work to go to, and the time to travel outside the busy school holiday season.

🏛 Governments promoting tourism

Governments earn money and jobs from tourists, so many spend on advertising, airports and roads, and run national tourist boards. Some MICs and LICs have chosen tourism as a main way to grow their economy.

2. Cheaper and faster transport

  • Railways made day trips possible in the 1800s. In 1841 Thomas Cook organised a famous rail excursion from Leicester to Loughborough, one of the first organised trips for tourists.
  • Jet aircraft arrived in the late 1950s. They carry more people, fly further and fly faster than older propeller planes, so far-away countries come within a few hours of home.
  • Budget airlines grew from the 1990s. Low fares mean flights to other countries can be very cheap, so more people can afford to fly.
  • Cars and motorways let families travel to where they want, when they want.

3. Easier to book and more to see

🏖 Package holidays

From the 1950s tour operators sold flights, hotel and transfers together in bulk. Travelling abroad became cheap and simple, with no need to organise everything yourself.

📱 Internet and apps

People can compare prices, read reviews and book flights, hotels and tours in minutes. Small hotels anywhere in the world can reach customers directly.

📺 Social media and TV

Travel programmes, films and photos shared online show people places they had never heard of and make them want to visit.

4. New types of tourism

Tourism has also grown because there are more things to do. Besides the traditional beach holiday, there are now:

  • Ecotourism: visiting natural areas in a way that tries to protect the environment and benefit local people.
  • Adventure tourism: activities such as trekking, white-water rafting and mountain biking.
  • Cruises: holidays on large ships that visit several ports.

Each new type attracts a new group of customers, which pushes the total number of tourists up.

The global trend in arrivals

YearInternational tourist arrivals (approximate)
195025 million
1980278 million
20191.5 billion (a record at the time)
2020about 400 million
2024about 1.4 billion

The trend was steady growth, with only small dips caused by events such as economic crises. The big exception was the COVID-19 pandemic. In 2020 borders closed and flights were cancelled, so arrivals fell by about 70% in one year. Numbers then recovered and by 2024 were back to about 99% of the 2019 level. The quick recovery shows how strong the demand for travel is.

Domestic and international tourism

Domestic tourismInternational tourism
WhereWithin the tourist's own countryTo a different country
ExampleA family from Delhi visiting Goa, both in IndiaA family from Germany on holiday in Spain
Passport needed?NoYes, and sometimes a visa
Foreign money earned?No, money moves around inside the countryYes, visitors bring in foreign currency

International tourism gets the headlines, but domestic tourism is important too, especially in large countries such as India and China where there is a lot to see at home. When borders closed in 2020, many people switched to domestic holidays.

Common mistakes

Do not just say "people got richer". Say that higher incomes give more disposable income, and link it to what people then spend it on. Do not list factors without explaining how each one increases tourist numbers. Do not mix up domestic tourism (inside the country) with international tourism (across borders).

Exam-style question

Table 1 shows made-up figures for the number of international tourist arrivals in Country K.

Year1990200020102020
Arrivals (thousands)4009002,1001,200

(a) Calculate the increase in arrivals between 1990 and 2010. [1 mark]

(b) Suggest one reason why the number of arrivals fell between 2010 and 2020. [2 marks]

(c) Explain how cheaper and faster transport has helped tourism to grow. [3 marks]

(d) To what extent have rising incomes been the main reason for the growth of tourism? [6 marks]

Model answer

(a) 2,100 - 400 = 1,700 thousand (1,700,000) (1)

(b) A global event such as a pandemic or an economic crisis may have caused travel restrictions or closed borders (1), so fewer people could travel to the country (1).

(c) Budget airlines have made flights cheaper (1), so more people can afford to fly abroad (1). Jet aircraft can fly further and faster (1), so far-away destinations can be reached in a few hours (1).

(d) Level 3 (5-6 marks) answer: Rising incomes are very important because people only spend on holidays when they have disposable income left after paying for essentials. As countries develop, more people can afford it. However, money alone is not enough. Paid holidays and more leisure time give people the time to travel. Cheaper transport such as budget airlines and package holidays lowered the cost, and the internet made booking easy. Governments also promote tourism with advertising and airports, and social media makes people want to visit new places. Without these, higher incomes would not have led to such rapid growth. Overall, incomes are a key factor, but they work together with time and cheaper transport, so I think rising incomes are one of several main reasons, not the only one.

Exam tip

For "to what extent" questions, argue for the factor in the question, then argue that other factors matter too, and end with a clear judgement.

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