The Coming World Tourism Boom
Apr 5th, 2008 by Kevin
In the April 08 edition of Harvard Business Review there is a short but intriguing article entitled the Tourism Time Bomb. The genesis of the article circles around the growing middle class and how they will not only want to buy but experience the things that money can buy.
The authors surmise that international tourist visits will double from 800 million in 2008 to 1.6 Billion by 2020. However only so many people can visit a beach, a building or a place at a time. Where will the rest of the tourist go? The article main argument is that the skyrocketing demand for travel will lead to a ’scarcity of place’ with 3 probably market responses:
- Tourism related prices will skyrocket as demand outstrips supply (hotels, event tickets, surcharges, visas, entrance fees)
- Rationing - waiting lists, and quotas (this is already starting to happen today in ecologically sensitive areas)
- Creation and expansion of destinations in both developed and developing economies.
The 3rd point here is key to the developing nations of Central America, and very important for investors in these areas. The growth in world tourism will create massive demand for new destinations, packages and things to do. Traditional tourist destinations will grow to be out of reach for the average traveler, but this will not diminish the want/need to travel. Nicaragua and other Central American countries will be part of this expansion in travel destinations. Plus taking advantage of law 306 investors and entrepreneurs can ensure that their investment can be implemented with optimum advantage.
Do you have an idea for a tourist related business? Are you tired of the rat race. Get your tourist related business in place now for the coming boom.
