If you build it, they will come: Why infrastructure is crucial to tourism growth and competitiveness

what is intrastate in tourism

Tourism is expanding globally, but can infrastructure keep up?

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what is intrastate in tourism

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With international tourist arrivals reaching 1.4 billion in 2018— two years ahead of initial projections —the travel and tourism industry will continue to drive global connectivity. The World Economic Forum’s 2019 Travel and Tourism Competitiveness Report shows this growth is backed by improving global travel and tourism competitiveness, which stems, in part, from growing aviation capacity, increased international openness, and declining travel costs.

However, the report also shows the need for developing infrastructure, which may not be able to keep up with the additional 400 million arrivals forecasted by 2030 . While infrastructure challenges differ for various regions and levels of economic development, failure to address these challenges may reduce competitiveness, hurting the travel and tourism industry.

Infrastructure—including air, ground, port, and tourism services like hotel rooms and car rental services—plays a vital role in travel and tourism competitiveness, serving as the arteries of the industry. And from a global perspective, infrastructure continues to improve.

what is intrastate in tourism

Since 2017 , air transport infrastructure is one of the most improved components in the index, with strong growth in scores across most regions, subregions and economic development levels. However, much of this performance has come from growing route capacity and the number of carriers operating. Perceptions of the quality of air transport infrastructure, while better since 2017, have grown more slowly, while most recent airport density figures indicate slightly reduced airport access than before. These results potentially indicate that travel demand and airline growth may eventually outstrip hard-infrastructure capacity. By 2037, the International Air Transport Association projects the number of air passengers could double to 8.2 billion.

The report also shows that global perspectives on the quality and efficiency of ground transport infrastructure and services have remained, on average, near stagnant. Given the projected growth in travel as well as the need for infrastructure to accommodate more tourism-related needs, significant work will be required to bridge multi-trillion dollar investment deficits for airports, ports, rail and roads.

what is intrastate in tourism

The results could be used to assess the infrastructure readiness of economies by looking at their scores for infrastructure and tourist arrival trends. The figure above compares country subregion and income-level groupings against their growth in international tourist arrivals from 2013 to 2017. It is clear tourism is growing in most subregions and among all income groups, with many above the global rate of growth.

Most of the regions on the right side of the figure above are relatively advanced countries with well-developed infrastructure. As a result, they may have more capacity to handle tourism growth. Moreover, it is also apparent that, despite market maturity, such countries are still welcoming more and more tourists each year. As the figure shows, high-income economies had the largest increase in arrivals, growing faster than the global rate. But while these economies have strong infrastructure, their share of arrivals and growth rates reveals the pressure on their infrastructure.

High-income economies analysed accounted for nearly 65% of arrivals in 2017 and 74.3% of growth in arrivals between 2013 and 2017. Subregions like Southern Europe and Eastern Asia-Pacific have seen rapid growth in arrivals, putting pressure on their more developed infrastructure. Arrivals in Western European countries, which on average, have the best infrastructure in the ranking, might seem to be below the global rate of growth but accounted for nearly one-fifth of global arrivals in 2017, and nearly 14% of the increase globally since 2013.

Northern Europe has experienced some of the fastest growth in arrivals in recent years and had the third-largest improvement in scores for air transport infrastructure since 2017. But its well-developed infrastructure may still come under strain, with this year’s report showing the region’s growth in ground, port and tourist infrastructure was below the global average.

South-East Asia has also experienced strong growth in tourism in recent years, but its near-average infrastructure scores indicate it might lack the capacity to continue accepting tourists. Countries like Vietnam, Indonesia and the Philippines have recently seen a surge in tourism, but, despite improvement in scores, all rank below average for infrastructure.

The regions on the left side of the figure mostly consist of lower-income countries. While these economies do not account for the same volume of arrivals as the more developed regions and countries, they still face capacity issues because their infrastructure is less developed. Nevertheless, due to higher price competitiveness, economic growth and declining travel barriers, many of these countries have also seen some of the biggest percentage increases in arrivals.

Countries in subregions on the upper left-hand quadrant may be at greatest risk of strain due to rapid visitor growth and underdeveloped infrastructure. In particular, this is an issue for South Asia, Western Africa, South America and the Balkans and Eastern Europe. On the other hand, nations on the bottom left-hand quadrant have less tourism growth, though this might be due to their limited infrastructure capacity, among other factors.

How countries deal with their infrastructure will be a crucial factor in their long-term travel and tourism competitiveness. Even nations with developed airports and roads may face strain under growing utilization, which may lead to issues related to quality.

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However, it is also important to note competitiveness relies on far more than just infrastructure. Emerging economies also have more work to do when it comes to improving business environments, addressing safety and security concerns and reducing travel barriers. Natural assets, which attract a significant number of visitors internationally, also need to be better protected. For example, South America and South-East Asia outscore the global average for natural resources by about 27% and 11%, respectively, but score below average for environmental sustainability. Consequently, many countries in these subregions may be at risk of damaging the very assets that make great travel destinations.

In some cases, improvements in one area of competitiveness without progress elsewhere can also lead to issues. For instance, Iceland’s improvement in air connectivity and surging visitor volumes was not matched by price competitiveness and overall tourism capacity, potentially explaining its recent slowdown .

Handling all these issues cannot be the purview of only travel and tourism stakeholders. Improving competitiveness, especially as it relates to travel and tourism, requires a holistic, multistakeholder approach.

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Intrastate vs. interstate: The subtle differences that matter for motor carriers

Improper registration of a motor carrier can lead to fines and even out-of-service orders, but many don’t understand the differences.

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Joe’s Trucking has operated successfully for 20 years as a registered intrastate carrier, handling dedicated freight for two well-known manufacturers that routinely move goods between San Antonio and Dallas. What started as a single-truck operation by 2020 had grown to 10 trucks, none of which have ever left the state of Texas.

Then the COVID-19 pandemic hit, and one of the manufacturers saw a decline in business. Fortunately, Joe’s Trucking had a friend in Oklahoma City that needed help. Joe’s friend, Steve’s Transport, would drop a trailer in Dallas for Joe’s Trucking to deliver to San Antonio before hauling a loaded unit back to Dallas, where Steve’s Transport would bring it the rest of the way to Oklahoma City.

Joe’s Trucking handled more than 100 loads under the arrangement, but it wasn’t until one of Joe’s Trucking’s vehicles was stopped for a routine inspection that it was learned the company had been operating illegally. Why?

While the fictitious Joe’s Trucking was simply trying to keep its trucks moving and drivers employed, because the company was registered as an intrastate carrier, it didn’t have the legal authority to engage in interstate commerce, which in this example, it was.

The rules of intrastate versus interstate commerce are not always this complicated, but for trucking operations that misregister their fleet, the costs could be significant in terms of Federal Motor Carrier Safety Administration fines and even out-of-service orders.

what is intrastate in tourism

In our example of Joe’s Trucking, Joe’s is an interstate carrier by FMCSA’s definition because they are moving freight coming from another state. Even though their truck wheels stay in Texas, they would register under Unified Carrier Registration (UCR) because they are participating in interstate commerce. However, because their wheels never leave the state, they would not need to register with International Fuel Tax Agreement (IFTA) or International Registration Plate (IRP). Only when Joe’s Trucking would physically leave the state would IFTA and IRP become relevant.

“Carriers that fail to obtain the appropriate registration can face violations, fines of more than $15,000 per violation and even out-of-service orders resulting in delayed deliveries,” said Mike Henckel, transport editor at J. J. Keller & Associates Inc . “Therefore, carriers must know whether they’re operating in intrastate or interstate commerce, what requirements apply and then ensure they’re always in compliance.”

Defining interstate vs. intrastate carriers

For purposes of FMCSA, the distinction between interstate and intrastate carriers is fairly straightforward . “If you perform trade, traffic or transportation exclusively in your business’ domicile state, this is considered intrastate commerce,” FMCSA declares on its website . Operations become interstate when the vehicle, or the vehicle’s contents, travel in more than one state or between the United States and either Canada or Mexico (or both).  

The vehicle’s contents are a key part of this definition and is what tripped up Joe’s Trucking. Because the load originated in Oklahoma and traveled into Texas, even though Joe’s Trucking’s vehicle never left the state of Texas, it was engaged in interstate commerce and therefore the load was an interstate move.

Carriers registered as interstate require a Department of Transportation (DOT) number as well as a motor carrier (MC) number. Those involved only in intrastate and registered that way may only require a DOT number. If they operate as a for-hire carrier, though, they would also need an MC number.

There are other differences between the two, according to compliance specialists J. J. Keller & Associates . Carriers with interstate authority must adhere to FMCSA’s Federal Motor Carrier Safety Regulations (FMCSRs). About 40 states have adopted FMCSRs for their intrastate rules, while others use only a portion, so carriers operating under intrastate authority only need to check with their local state or a compliance specialist to ensure their operations meet legal standards.

All states and motor carriers must adopt and comply with FMCSA’s CDL provisions (Part 383), drug and alcohol testing (Part 382) and driver training requirements (Part 380), regardless of registration. Also, each state has its own requirements for base-state registration (license plates).

Interstate compliance with FMCSRs falls under FMCSA definitions of what constitutes a commercial motor vehicle. Regulatory specialists can assist carriers in determining which of these definitions, and which specific rules, such as driver qualification and hours of service, apply.

Unified Carrier Registration (UCR)

UCR is required for all interstate for-hire carriers of property or passengers and also for private property carriers. This includes carriers based in Canada or Mexico that operate in the U.S. The registration period runs from Oct. 1 through Dec. 31, J. J. Keller’s Henckel said, and any carrier that conducts even a single interstate movement in a year must register.

The UCR fee structure is based on fleet size. The current fee structure is:

IFTA and IRP compliance

International Fuel Tax Agreement (IFTA) and IRP compliance is where interstate versus intrastate matters. Both programs are for interstate carriers operating in the U.S. and Canada and serve as a way to collect fuel taxes (IFTA) and file registration paperwork (IRP) with the various states. Under the programs, carriers need only file and pay fees/taxes with a single state to file with all. Unlike FMCSA’s definition of interstate, though, IFTA and IRP only consider carriers interstate when their wheels physically cross state lines. In the Joe’s Trucking example above, while he would be considered an interstate carrier under FMCSA’s definition, for IFTA and IRP purposes, he remained an intrastate carrier.

IFTA- and IRP-qualified vehicles include a power unit having two axles and a gross vehicle weight or registered gross vehicle weight in excess of 26,000 pounds; a power unit having three or more axles, regardless of weight; or vehicles used in combination when the weight of such combination exceeds 26,000 pounds gross vehicle weight.

According to J. J. Keller, carriers need to track all miles of qualified vehicles, including empty miles and miles accrued when the vehicle is used for personal use or sent to a shop for repair (including any road tests).

Both IFTA and IRP require the following documents/records be kept:

Mileage records

1.      Electronic mileage records (by electronic logging device or GPS unit) data must include:

  •  Original GPS data.
  •  Date, time and location of each GPS reading.
  • Odometer/hubodometer or ECM readings.
  • Distance between each GPS reading.
  • Route of travel.
  • Total trip distance/distance in each jurisdiction.
  • Vehicle ID number or unit number

2.      Paper mileage records:

  • Dates of trip.
  • Trip origin and destination.
  • Total trip distance.
  • Distance traveled in each jurisdiction.
  • Vehicle ID number or unit number.

Fuel records

IFTA also requires carriers to keep fuel receipts so fuel spend can be tracked (either paper fuel receipts or through electronic means such as from a fuel card vendor). The fuel record must contain:

  • Date of purchase.
  • Seller’s name and address.
  • Number of gallons.
  • Price per gallon.
  • Total amount of sale.
  • Purchaser’s name and address.
  • Vehicle number.

In addition, IFTA requires quarterly tax filings on Jan. 31, April 30, July 31 and Oct. 31. IFTA requires carriers to maintain historical archives of records for four years. IRP records must be retained for six-and-a-half years.

For carriers that only occasionally operate as interstate carriers, there is the option of obtaining temporary fuel and trip permits rather than registering for IFTA and IRP. Temporary permit costs vary by state and include limits as to the number of times they can be used. Also, eight states – Connecticut, Indiana, Kentucky, Maine, North Carolina, Pennsylvania, Utah and West Virginia – require separate intrastate fuel permits. Improperly registering commercial vehicles for interstate or intrastate operation can have significant financial consequences for fleets. When additional requirements such as UCR, IFTA and IRP with their varying definitions and requirements are added to the mix, the compliance equation can quickly overwhelm fleet managers. Working with third-party compliance specialists like J. J. Keller & Associates can help fleets remain compliant and up-to-date on the fuel tax payments.

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Brian Straight

Future of supply chain | june 4-5, 2024.

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Intrastate and interstate tourism demand in Australia: an empirical analysis

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Difference Between Interstate and Intrastate

• Categorized under Business , Geography , Politics | Difference Between Interstate and Intrastate

The concepts of interstate and intrastate apply to the world of business, transport, politics and economy and affect rules, laws and regulations. The term interstate refers to something that involves more than one state whereas the concept of intrastate refers to something happening within the border of one state. The two ideas are particularly relevant when we talk about trade, transportation or business.

For instance, in the United States there are different regulations for companies that only act within one state (i.e. California) and firms that have their legal headquarters in one state (i.e. California) but are also active and sell their products in other states (i.e. Arizona, Arkansas, Tennessee, etc.). In the same way, carriers and trucks that only run within one state have to respect the state’s regulation, while those that cross the state’s borders are overseen by the Department of Transportation and have to abide by the Federal Motor Carrier Safety regulations.

Legal disputes also differ when different tribunals and courts are involved. In the United States, every state has his own tribunals and, while all need to respect federal law, there are differences among the specific laws that apply in all the 50 states. The concepts of interstate and intrastate do not only apply within the United States, but to all countries divided into smaller states where interstate and intrastate norms regulate actions and behaviors within the individual states as well as the actions and instances occurring outside the state’s borders.

what is intrastate in tourism

What is Interstate?

The term interstate refers to anything that implies or involves more than one state. This concept usually applies to all countries divided into smaller states, such as the United States, but unified by one central government.

In the US, individual states enjoy a rather large degree of autonomy and can have different norms, rules and regulations – to the point that lawyers can only operate in one state unless particular circumstances emerge or unless they take the so-called bar exams in other states. Yet, at the same time, states have to respect the US Constitution and general rules that apply to the entire American population. Individual states also have independent tribunals, but there is a federal judiciary system entrusted with higher authority and power. Federal regulations and federal bodies have the authority to regulate all interstate activities and create the framework for interstate relations to happen.

what is intrastate in tourism

What is Intrastate?

The term intrastate refers to anything happening within the borders of an individual state, such as companies with legal headquarters in California only operating and selling their goods in California, or trucks only running within the borders of the state. In this case, only the laws and regulations of the state apply as far as tax payments, bureaucratic and legal matters are concerned. For instance, in the case of carriers, only the state’s laws apply, and not the Federal Motor Carrier Safety regulation enforced by the Department of Transportation. The same is true for other forms of business, bureaucratic procedures and communications. Companies operating only within one state and trucks or carriers not crossing the state’s borders have to comply with only one set of rules and standards – which can be more or less strict from state to state – and bureaucratic and administrative complications are less frequent.

Similarities between Interstate and Intrastate

The concepts of interstate and intrastate are rather different: the first refers to anything that includes more than one state while the other refers to anything happening within one state’s borders. Yet, at a closer look, we can identify some similarities and aspects in common between the two:

  • Both concepts mainly apply in the case of countries that are divided into smaller states or else in the case of group of countries unified by a common set of regulations. For instance, in international relations the concepts of interstate and intrastate war refer to conflict among different states – all parts of the international system – and within individual states (i.e. between government forces and rebel groups); and
  • In both cases, there are specific sets of rules and regulations that come into place. In addition, national and state laws often continue to apply even in the case of interstate matters.

What is the Difference between Interstate and Intrastate?

Even though they are often examined in relation to concrete applications such as business or trade, the concepts of interstate and intrastate have wider and broader applications. The two are substantially different and entail different sets of legislations, rules and regulations.

Authority of Interstate and Intrastate:

what happens within one state is regulated by the state’s rules, whereas what happens among various states (i.e. business, transport, etc.) is often regulated by higher authority bodies or by widely accepted interstate regulations;

War of Interstate and Intrastate:

in the case of intrastate wars, the sides involved are generally the government, rebel groups and/or terrorist groups. In the case of interstate wars, various countries are involved and fight each other. The laws of the war apply in both cases, but in the case of intrastate wars, it is harder for the international community to act, as the conflict takes place within the borders of a sovereign country. Conversely, when interstate wars occur, international organizations – and particularly the UN Security Council – can take action to stop the conflict. However, in many cases intrastate wars escalate into international conflicts, like in the case of the Syrian conflict that started from clashes between the government and some rebel groups but has now turned into a large scale war that sees the involvement of a number of countries and alliances;

Scope of Interstate and Intrastate:

while the term intrastate only refers to anything happening within the borders of an individual state, interstate can have a broader scope, especially if analyzed in the context of the United States. For instance in the case of commerce, trade can be interstate if it happens between a company A located in one state and a company/customer B located in a different state or in a place outside of the United States. Interstate commerce can also happen between two entities in a state through another state or through a place outside the US. Finally, interstate trade can occur between two places or parties in a state as part of trade originating or ending outside the state or outside the United States.

Interstate vs Intrastate

Although the difference between the two concepts may appear rather intuitive, there are a number of aspects, regulations and rules that we need to take into account, especially when we talk about interstate business and trade. Building on the differences outlined in the previous section, we can identify other aspects that differentiate the two concepts.

Interstate and Intrastate comparison

what is intrastate in tourism

The term intrastate refers to anything happening within the borders of an individual state whereas the concept of interstate involves more than one state. The two are often used in the context of the US or of any other country divided into smaller states, which enjoy a certain degree of autonomy. Intrastate and interstate often refer to trade, commerce, business and transportation, but the two concepts also apply to politics, wars and conflicts.

In the case of intrastate trade and business, the firm involved only trades within a single state, whereas interstate commerce includes trade between state A and state B, trade between state A and a place outside the United States as well as trade originating or finishing outside the United States. In the case of intrastate conflicts or business, the law of the state apply, whereas in the case of interstate disputes and commerce there usually is a superior set of laws and norms that regulate actions and transactions. At the same time, companies and firms operating at the interstate level must continue to respect the rules and regulations of individual states, in particular of the state where the trade is originated and of the state where customers are located.

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Cite APA 7 Squadrin, G. (2018, May 22). Difference Between Interstate and Intrastate. Difference Between Similar Terms and Objects. http://www.differencebetween.net/business/difference-between-interstate-and-intrastate/. MLA 8 Squadrin, Giulia. "Difference Between Interstate and Intrastate." Difference Between Similar Terms and Objects, 22 May, 2018, http://www.differencebetween.net/business/difference-between-interstate-and-intrastate/.

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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.

Two female front desk employees speak to a male guest in a hotel lobby.

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:

Tourism supply chain. Long description available.

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.

Media Attributions

Front Desk © Staying LEVEL is licensed under a CC BY-NC (Attribution NonCommercial) license

  • (LinkBC, 2008, p.8) ↵

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.

Share This Book

Logo for BCcampus Open Publishing

Want to create or adapt books like this? Learn more about how Pressbooks supports open publishing practices.

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” (LinkBC, 2008, p.8). 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 .

NAICS: The North American Industry Classification System

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.

Two female front desk employees speak to a male guest in a hotel lobby.

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:

Tourism supply chain. Long description available.

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.

Long Descriptions

Figure 1.2 long description: Diagram showing the tourism supply chain. This includes the phases of travel and the sectors and activities involved during each phase.

There are three travel phases: pre-departure, during travel, and post-departure.

Pre-departure, tourists use the travel services and transportation sectors.

During travel, tourists use the travel services, accommodations, food and beverage, recreation and entertainment, and transportation sectors.

Post-departure, tourists use the transportation sector.

[Return to Figure 1.2]

Media Attributions

  • Front Desk by Staying LEVEL is licensed under a CC BY-NC 4.0 Licence .

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 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.

Share This Book

what is intrastate in tourism

Logo for OpenEd@JWU

Want to create or adapt books like this? Learn more about how Pressbooks supports open publishing practices.

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” (LinkBC, 2008, p.8). 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 .

NAICS: The North American Industry Classification System

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.

Two female front desk employees speak to a male guest in a hotel lobby.

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:

Tourism supply chain. Long description available.

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.

Long Descriptions

Figure 1.2 long description: Diagram showing the tourism supply chain. This includes the phases of travel and the sectors and activities involved during each phase.

There are three travel phases: pre-departure, during travel, and post-departure.

Pre-departure, tourists use the travel services and transportation sectors.

During travel, tourists use the travel services, accommodations, food and beverage, recreation and entertainment, and transportation sectors.

Post-departure, tourists use the transportation sector.

[Return to Figure 1.2]

Media Attributions

  • Front Desk by Staying LEVEL is licensed under a CC BY-NC 4.0 Licence .

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.

Share This Book

Australian National Accounts: Tourism Satellite Account

Estimates of tourism’s direct contribution to the economy including GDP, value added, employment and consumption by product and industry

  • Australian National Accounts: Tourism Satellite Account Reference Period 2021-22 financial year
  • Australian National Accounts: Tourism Satellite Account Reference Period 2020-21 financial year
  • Australian National Accounts: Tourism Satellite Account Reference Period 2019-20 financial year
  • View all releases

Key statistics

  • Tourism gross domestic product (GDP) rose 60.1% to $57.1b in chain volume terms in 2022-23 but remains below the 2018-19 peak of $63.4b.
  • Tourism's contribution to economy GDP rose to 2.5% in 2022-23 but remains below the 2018-19 level of 3.1%.
  • Domestic tourism consumption rose by $34.9b to $124.9b in 2022-23 while international tourism rose by $17.7b to $23.6b in chain volume terms.
  • Tourism filled jobs rose to 626,400 in 2022-23 but remains below the 2018-19 peak of 700,900 filled jobs.
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(a) As the reference period for chain volume measures is 2021-22, chain volume measures and current prices are identical in 2021-22.

Direct tourism

All references to "tourism" are referring to "direct tourism" unless otherwise specified. A direct tourism impact occurs where there is a direct (physical and economic) relationship between the visitor and producer of a good or service. For more information, refer to the Methodology section.

Gross Domestic product

  • In current price terms, tourism GDP rose 76.6% to $63.0b in 2022-23 to be above the 2018-19 level of $60.3b. Of this, tourism GVA was $57.2b and tourism net taxes on products $5.7b.
  • In chain volume terms, tourism GDP rose 60.1% in 2022-23 but stands at 90.1% of its 2018-19 level.

Consumption

  • In purchasers' price terms, domestic consumption increased 53.7% to $138.4b in 2022-23, the highest level in the time series.
  • In chain volume terms , domestic consumption increased 38.8% to $124.9b in 2022-23, the highest level in the time series. 
  • In purchasers' price terms, international consumption increased from $5.9b to $26.1b in 2022-23 but remains well below the 2018-19 level of $39.3b. 
  • In chain volume terms, international consumption increased from $5.9b to $23.6b in 2022-23 but remains well below the 2018-19 level of $42.5b. 

Industry gross value added, current prices

  • The accommodation industry's GVA increased to $7.7b in 2022-23 which is 25.5% higher than the 2018-19 level of $6.2b. 
  • The cafes, restaurants and takeaway food services industry's GVA increased to $7.0b which is 17.6% higher than the 2018-19 level of $5.9b.
  • The travel agency and information centre services industry's GVA increased to $6.1b which is 7.8% higher than the 2018-19 level of $5.7b.
  • The air, water and other transport industry's GVA increased to $7.1b but remains 9.2% below the 2018-19 level of $7.9b. 
  • The education and training industry's GVA increased from $1.2b to $3.2b but remains 47.9% below the 2018-19 level of $6.1b.

Tourism employment

  • Tourism accounted for 4.1% of the filled jobs in the whole economy in 2022-23 but this is still lower than the 5.1% of filled jobs in 2018-19.
  • The greatest increases in filled jobs in 2022-23 occurred in cafes, restaurants and takeaway food services (up 58,100 jobs), retail trade (up 32,500 jobs), accommodation (up 22,900 jobs) and education and training (up 19,600 jobs).
  • Increases were recorded in both full-time filled jobs (up 46.0% to 317,600 jobs) and part-time filled jobs (up 37.2% to 308,800 jobs) in 2022-23.
  • In 2022-23, filled jobs worked by females increased more than those filled by males with increases of 42.9% to 345,500 jobs and 39.9% to 280,900 jobs respectively.

Key considerations in data interpretation

Tourism estimates.

The International Visitor Survey (IVS) data sourced from Tourism Research Australia (TRA) is one of the key inputs to this account. Due to the COIVD-19 pandemic, IVS interviews were paused from June quarter 2020 to June quarter 2022 and data were imputed. Full sampling interviewing returned from March quarter 2023. Following a review by the TRA of the imputation method and changes to ABS Overseas Arrivals and Departures data used for IVS benchmarking, data for 2021-22 has been revised.

For more information see  International Visitor Survey Methodology and Overseas Arrivals and Departures . 

Changes in this issue

New process to derive economic measures.

This publication includes a methodological update. This update was undertaken to modernise the processing system and enhance the methodology. Consequently, the estimates for the 2019-20, 2020-21 and 2021-22 periods, which were previously published, have been revised. For an overview of the updated methodology, please refer to the Methodology page.

Status in employment

The term ‘status in employment’ has been changed to full-time and part-time employment to be consistent with  Labour Force, Australia . 

Updated job distribution in transport

The jobs that were previously reported under rail transport are now included in the air, water, and other transport industry.

Analysis of results

The contribution of tourism to the Australian economy has been measured using the demand generated by visitors and the supply of tourism products by domestic producers.

The diagram below provides a graphical depiction of the flow of tourism consumption through the Australian economy in 2022-23. What the diagram highlights is that, unlike traditional ANZSIC industries in the Australian National Accounts, tourism is not measured by the output of a single industry, but rather from the demand side i.e. the activities of visitors. It is the products that visitors consume that define what the tourism economy produces. The diagram shows how the value of internal tourism consumption (as measured by the sum of international and domestic tourism consumption in purchaser's prices, i.e. the price the visitor pays) is disaggregated to either form part of tourism GVA/tourism GDP, is excluded as it forms part of the "second round" indirect effects of tourism, or is output that was not domestically produced.

Flow of tourism consumption through the Australian Economy (a)(b)(c)

Flow of tourism consumption through the Australian Economy (a)(b)(c)

A flow chart representing the flow of tourism consumption through the Australian economy, year ending June 2023. Note, totals may not add due to rounding; tourism consumption is measured in purchasers’ prices unless otherwise specified. Other monetary aggregates are measured in basic prices; all figures in this diagram are in current price terms unless otherwise specified. Domestic tourist consumption to the value of $138,423 million is comprised of business and government, to the value of $25,433 million, and household, to the value of $112,990 million. International tourism consumption, to the value of $26,105 million, combines with domestic tourist consumption to create internal tourism consumption, to the value of $164,528 million. Internal tourism consumption splits into three values; internal tourism consumption at basic prices, to the value of $138,492 million; cost to retailers of imported goods sold directly to visitors, to the value of $13,506 million, and net taxes on tourism products to the value of $12,530 million. Internal tourism consumption at basic prices is comprised of cost to retailers of domestic goods sold directly to visitors, including wholesale and transport margins supplied domestically, to the value of $24,667 million; and direct tourism output, to the value of $113,825 million. Direct tourism output flows into two values; intermediate inputs used by tourism industries, to the value of $56,595 million; and direct tourism value added, to the value of $57,230 million. Cost to retailers of domestic goods sold directly to visitors and intermediate inputs used by tourism industries connect to second round (indirect) effects to supplier industries. Net taxes on tourism products flows into two values; net taxes on tourism products (in the case of goods, this will only include the net taxes attributable to retail trade activities), to the value of $5,720 million; and net taxes on indirect tourism output to the value of $6,810 million. Direct tourism value added and net taxes on tourism products combine to create direct tourism GDP, to the value of $62,950 million. Direct tourism value added is used to estimate total tourism employed persons, to the value of 626,400 tourism filled jobs.

Revisions are a necessary and expected part of accounts compilation as data sources are updated and improved over time. This issue includes revisions to tourism aggregates from 2019-20 to 2021-22.  Revisions in the 2022-23 release include:

  • Revisions to both domestic and international tourism expenditure as a result of the TSA annual balancing and confrontation process. This is particularly the case for tourism products where the estimates have been modelled using a range of source data.
  • Replacing modelled 2021-22 net taxes, imports and margins data with the latest issue of Australian National Accounts: Supply Use Tables (available on a T-1 basis) for 2021-22. 
  • Revisions related to the new process to derive economic measures.
  • Revisions to international tourism consumption due to the incorporation of updated 2021-22 data from Tourism Research Australia and updated data from the Survey of International Trade in Services for 2020-21 and 2021-22. 

Please note, the revisions to the chain volume level estimates across the time series are an expected part of re-referencing the indexes to 100 in the reference year.

Data downloads

Australian national accounts: tourism satellite account, create your own tables and visualisations.

ABS provide access to a number of other datasets for you to create your own tables and make visualisations. See what's available in  Data Explorer . 

Caution: Data in Data Explorer is currently released after the 11:30am release on the ABS website. Please check the reference period when using Data Explorer. For information on Data Explorer and how it works, see the  Data Explorer user guide .

For further information about these and related statistics, please contact the Customer Assistance Service via the ABS website Contact Us page. The ABS Privacy Policy outlines how the ABS will handle any personal information that you provide to us. 

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Definition of intrastate

Examples of intrastate in a sentence.

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

Word History

1903, in the meaning defined above

Dictionary Entries Near intrastate

intraspecific

intrastelar

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“Intrastate.” Merriam-Webster.com Dictionary , Merriam-Webster, https://www.merriam-webster.com/dictionary/intrastate. Accessed 24 May. 2024.

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cross-country

from one side of a country to another; all over a country

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what is intrastate in tourism

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Intrastate vs. Interstate: Regardless, We Have Holiday Apartments in Gold Coast for All!

It such a great time to travel to the Gold Coast, especially when we I see all the positive visitor statistics released by Tourism & Events Queensland. In fact, whether your intrastate vs. interstate visitor, there’s one thing for sure, if you’re planning a visit, you’ll need to book holiday apartments in Gold Coast sooner, than later before they all get snapped up.

We Have Holiday Apartments in Gold Coast for All!

Before I ring my own bell and tell you why you should book holiday apartments with Gold Coast Holiday Rentals, first let’s look at these statistics to see how intrastate vs Interstate statistics stack up.

According to the Gold Coast Regional Snapshot, the number of visitors in Gold Coast has slightly dipped for 2014 which isn’t great news considering our business is holiday apartments in Gold Coast. However, if we’re going to break down the figures into certain components, we’ll discover some gems.

For instance, in terms of intrastate travel, the number of travellers increased by 2.1% compared to the 2013 figures. Intrastate visitors are those whom live in Queensland and choose to travel within Queensland for holidays.

There’s a huge positive change if we talk about holiday intrastate visitors: 10.4%! These are the kinds of figures we want to see! I’m confident that the many tourism-related campaigns the local government has created has gone a long way in boosting this statistic. Not that I am biased, but one doesn’t really have to go far to have a fantastic holiday.

As for visiting family and relatives (VFR) and business travellers, figures have gone down by 7.1% and 20.8% respectively. Overall, however, because of the significant increase of holiday intrastate visitors, the total percentage for this group has gone up by 2.1%.

Meanwhile, Gold Coast has fewer interstate visitors last year when the number fell by -8.6%. Interstate visitors are those who travel to Queensland from other Australian states. The biggest change comes from interstate holiday travellers, which dropped 10.8%, and this is something I’ve noticed when looking at our holiday apartments bookings. The VFRs and business travellers were also in the negative, but we had more of them last year than holiday visitors.

How does this compare to the intrastate and interstate stats for Australia wide?

Here’s the good news: more Australians are opting to travel around domestically in 2014 than in 2013. Based on the data from Tourism Research Australia, the interstate overnight trips rose to more than 25,000 compared to a little over 24,000 in 2013. About 53,000 became intrastate overnight visitors for 2014. That’s more than 3,000 visitors in 2013.

What does these this data mean?

If you haven’t been travelling within the country including the beautiful Gold Coast, then most definitely, you’ve been missing out! This also reinforces my earlier assumption that people are becoming wise when it comes to travel. Perhaps they’re enjoying their money’s worth without having to travel too far.

Whether you’re trying to visit a relative or a friend, or are in town for business or a holiday, there’s always something great in store for you in Gold Coast. That’s why you don’t have to go very far to enjoy yourself and have a memorable traveling experience.

If you live in Queensland and are like one of the many intrastate visitors that have enjoyed the Gold Coast over the past year, then there is no better time than the present to secure a Gold Coast holiday apartment .

Book holiday apartments in Gold Coast with HRSP.com.au and experience the beauty of your own backyard. For affordable options, check out your choices on our homepage .

Related Topics

  • Domestic visitor profile for the Gold Coast
  • Queensland enjoys increased interstate visitors for 2013
  • The Gold Coast leads the way with arrivals and Departures
  • The Gold Coast is your year-round holiday destination

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interstate vs. intrastate

Interstate vs. intrastate: what’s the difference.

Interstate means “between states,” as in interstate trade between Ohio and Indiana . Intrastate means “within a state,” as in Ohio’s intrastate commerce . Interstate is also commonly used as a noun to refer to a highway that stretches between states (as opposed to only being within one). Remember, intra - means “within,” and inter - means “between” or “among.”

  • existing or occurring within the boundaries of a state , especially of the United States: intrastate commerce.

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UN Tourism | Bringing the world closer

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International tourism reached 97% of pre-pandemic levels in the first quarter of 2024

  • All Regions
  • 21 May 2024

International tourist arrivals reached 97% of pre-pandemic levels in the first quarter of 2024. According to UN Tourism, more than 285 million tourists travelled internationally in January-March, about 20% more than the first quarter of 2023, underscoring the sector’s near-complete recovery from the impacts of the pandemic.

In 2023 international tourist arrivals recovered 89% of 2019 levels and export revenues from tourism 96%, while direct tourism GDP reached the same levels as in 2019.

UN Tourism’s projection for 2024 points to a full recovery of international tourism with arrivals growing 2% above 2019 levels. In line with this, the newest data released by the UN specialized agency for tourism show that:

Yet it also recalls the need to ensure adequate tourism policies and destination management, aiming to advance sustainability and inclusion, while addressing the externalities and impact of the sector on resources and communities

  • The Middle East saw the strongest relative growth, with international arrivals exceeding by 36% pre-pandemic levels in Q1 2024, or 4% above Q1 2023. This follows an extraordinary performance in 2023, when the Middle East became the first world region to recover pre-pandemic numbers (+22%).  
  • Europe , the world's largest destination region, exceeded pre-pandemic levels in a quarter for the first time (+1% from Q1 2019). The region recorded 120 million international tourists in the first three months of the year, backed by robust intra-regional demand.
  • Africa welcomed 5% more arrivals in the first quarter of 2024 than in Q1 2019, and 13% more than in Q1 2023.
  • The Americas practically recovered pre-pandemic numbers this first quarter, with arrivals reaching 99% of 2019 levels.
  • International tourism is experiencing a rapid recovery in Asia and the Pacific where arrivals reached 82% of pre-pandemic levels in Q1 2024, after recovering 65% in the year 2023.

UN Tourism Secretary-General Zurab Pololikashvili said: "The recovery of the sector is very welcome news for our economies and the livelihoods of millions. Yet it also recalls the need to ensure adequate tourism policies and destination management, aiming to advance sustainability and inclusion, while addressing the externalities and impact of the sector on resources and communities".

By subregions, North Africa saw the strongest performance in Q1 2024 with 23% more international arrivals than before the pandemic, followed by Central America (+15%), the Caribbean and Western Europe (both +7%). Southern Mediterranean Europe exceeded pre-pandemic levels by 1%, while South America virtually reached 2019 levels.  Northern Europe recovered 98% of pre-pandemic levels, while Subsaharan Africa and North America both recovered 95%.

According to available data, many destinations across the world continued to achieve strong results in Q1 2024, including Qatar (+177% versus Q1 2019), Albania (+121%), Saudi Arabia (+98%), El Salvador (+90%), Tanzania (+53%), Curaçao (+45%), Serbia (+43%), Turks and Caicos (+42%), Guatemala (+41%) and Bulgaria (+38%).

The robust performance of international tourism can also be seen in the UN Tourism Confidence Index which reached 130 points (on a scale of 0 to 200) for the period January-April, above the expectations (122) expressed for this period in mid-January.

International tourism receipts reached USD 1.5 trillion in 2023, meaning a complete recovery of pre-pandemic levels in nominal terms, but 97% in real terms, adjusting for inflation.

By regions, Europe generated the highest receipts in 2023, with destinations earning USD 660 billion, exceeding pre-pandemic levels by 7% in real terms. Receipts in the Middle East climbed 33% above 2019 levels. The Americas recovered 96% of its pre-pandemic earnings in 2023 and Africa 95%. Asia and the Pacific earned 78% of its pre-crisis receipts, a remarkable result when compared to its 65% recovery in arrivals last year.

Total export revenues from international tourism, including both receipts and passenger transport, reached USD 1.7 trillion in 2023, about 96% of pre-pandemic levels in real terms. Tourism direct GDP recovered pre-pandemic levels, reaching an estimated USD 3.3 trillion in 2023, equivalent to 3% of global GDP.

Several destinations achieved remarkable results in terms of receipts in the first quarter of 2024 as compared to 2019 levels based on available data, including Serbia (+127%), Türkiye (+82%), Pakistan (+72%), Tanzania (+62%), Portugal (+61%), Romania (+57%), Japan (+53%), Mongolia (+50%), Mauritius (+46%) and Morocco (+44%).

Looking ahead to a full recovery globally in 2024

International tourism is expected to recover completely in 2024 backed by strong demand, enhanced air connectivity and the continued recovery of China and other major Asian markets.

The latest UN Tourism Confidence Index shows positive prospects for the upcoming summer season, with a score of 130 for the period May-August 2024 (on a scale of 0 to 200), reflecting more upbeat sentiment than earlier this year. Some 62% of tourism experts participating in the Confidence survey expressed better (53%) or much better (9%) expectations for this 4-month period, covering the Northern Hemisphere summer season, while 31% foresee similar performance as in 2023.  

Challenges remain

According to the UN Tourism Panel of Experts, economic and geopolitical headwinds continue to pose significant challenges to international tourism and confidence levels.

IMF's latest World Economic Outlook (April 2024) points to a steady but slow economic recovery, though mixed by region. At the same time, persisting inflation, high interest rates, volatile oil prices and disruptions to trade continue to translate into high transport and accommodations costs.

Tourists are expected to continue to seek value for money and travel closer to home in response to elevated prices and the overall economic challenges, while extreme temperatures and other weather events could impact the destination choice of many travellers. This is increasingly mentioned by the UN Tourism Panel of Experts as a concern for the sector.

Uncertainty derived from the Russian aggression against Ukraine, the Hamas-Israel conflict and other mounting geopolitical tensions, are also important downside risks for international tourism.

As international tourism continues to recover and expand, fuelling economic growth and employment around the world, governments will need to continue adapting and enhancing their management of tourism at the national and local level to ensure communities and residents are at the center of this development.

Related links

  • Download News Release on PDF
  • Excerpt | World Tourism Barometer - Volume 22 • Issue 2 • May 2024

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Related content, international tourism to reach pre-pandemic levels in 2024, international tourism to end 2023 close to 90% of pre-p..., tourism’s importance for growth highlighted in world ec..., international tourism swiftly overcoming pandemic downturn.

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Interstate and Intrastate GST: Meaning, Rate, Examples, Differences

Updated on : Mar 13th, 2023

11 min read

GST, or the Goods and Services Tax, was first  introduced in India on July 1st, 2017 . Interstate and intrastate GST are the most important components of GST as it helps one determine whether IGST, CGSST, or SGST is to be paid. Whether a supply is considered interstate or intrastate depends on the location of the supplier and the  place of supply . This article presents a comparison between  interstate and intrastate GS T. It also provides a detailed explanation of interstate and intrastate meanings under GST law. 

Interstate Meaning in GST   

Interstate supply is where the goods or services provider is in a different state or Union Territory, and the place of supply is in a different state or Union Territory . The supplies involving import, export, or supply to or from a Special Economic Zone (SEZ) unit or Export-oriented Unit (EOU) are also considered interstate supplies. The Central Government levies integrated GST (IGST) on the   interstate supply of goods and services in India.

When goods and services are supplied from one state to another, the IGST is levied by the central government and then distributed to the destination state. The revenue generated from IGST is shared between the central and state governments according to a predetermined formula. This ensures that the tax revenue is shared between the central and state governments and avoids the need for multiple taxes to be paid by businesses operating in different states. 

Intrastate Meaning in GST    

Intrastate supply is where the supplier of goods or services and the place of supply is within the same state . Intrastate supplies are liable to CGST (Central Goods and Services Tax) and SGST/UTGST (State Goods and Services Tax/Union Territory Goods and Services Tax). They are levied by the Central and State/UT governments, respectively.

The Intra-state GST rate varies depending on the type of good or service being supplied. The vendors need to collect both CGST and SGST from the customers in intrastate transactions. 

Interstate and Intrastate GST Rate With Examples   

The rates of GST on interstate and intrastate supplies depend on the goods or services being offered. The GST rates in India are divided into four slabs, i.e. 5%, 12%, 18%, and 28%. There are also special rates of GST for certain high-value goods as well as a Nil rate for certain essential goods. 

Now that you know the meaning of interstate supplies and intrastate supplies, let us understand how GST is calculated on them with the help of examples. 

Interstate GST Rate Example

A company ABC ltd is located in Jaipur, Rajasthan, and it supplies mobiles worth Rs.1,00,000 to Mumbai, Maharashtra. This supply will be considered an interstate supply. The goods supplied fall under the GST slab of 18%. IGST, or Integrated GST, is levied by the Central Government, a share of which is paid to the destination state. 

IGST Calculation: 1,00,000 * 18% = Rs.18,000

The dealer will charge Rs.18,000 as IGST. This amount is paid to the Centre and then split in a predetermined ratio between the Centre and the destination state, i.e. Maharashtra. 

As an exception, if the goods are supplied from Jaipur, Rajasthan, to a Special Economic Zone (SEZ) unit in Rajasthan, it will also be considered an interstate supply. All the goods and services supplied to or from an SEZ unit are considered interstate supplies. 

Intrastate GST Rate Example

ABC ltd. is located in Jaipur, Rajasthan supplies mobiles worth Rs. 2,00,000 to another entity located in Udaipur, Rajasthan. The GST is charged at 18%, which is apportioned as 9% CGST and 9% SGST. 

CGST/SGST calculation: Rs. 2,00,000 * 18% = Rs.36,000

Here, Rs. 18,000  is CGST and Rs. 18,000 is SGST.

The dealer collects Rs. 36,000. Out of this, Rs. 18,000 is paid as CGST to the Central Government, and Rs.18000 is paid to the Rajasthan Government. 

CGST/SGST  is levied by both the Central Government and the state government, respectively. However, the rate of CGST and SGST together sum up to the IGST rate levied. Hence, the total tax amount remains the same irrespective of whether it is an interstate or intrastate supply. The only difference lies in the levy.

Difference Between Interstate and Intrastate in GST   

Here is a tabular format that highlights the key differences between interstate GST and intrastate GST in India:

Overall, Interstate GST and Intrastate GST are two different types of GST in India that are applied depending on the location of the supplier and the place of supply. The key difference between the two lies in the levy of the tax.

Related Articles: GST State Code List GST Number Search

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