Gap year

The report on Gap Year Travel in Australasia (Mintel Group Ltd., Travel & Tourism Analyst, May 2013) states that the gap year travel industry had its roots in the post-war belief that by getting young people of the world to travel and meet each other, there would be greater understanding of different cultures and a greater chance of world peace. In the 1960s, backpacking and the hippie trails to India evolved, and throughout the 1970s and 1980s, student travel became more and more popular. By the late 1990s, the concept of travelling during a gap year between school and university had become a well-established concept.

Gap travel is a relatively new segment within the tourism industry. However, like many other segments within tourism, gap travel is very difficult to measure in terms of both volume and value. Whilst gap travellers have a relatively low spend per day, the long duration of their trips means that total spend is usually well above the average for overseas travel. Gap travellers also tend to stay in locally-run accommodation and buy locally-produced goods. Therefore, a greater percentage of each pound, dollar, or whatever currency is being used remains in the country visited. This means that in economic terms, gap travel is good news for local economies.

Consequently, both public and private sector organisations are starting to recognise gap travel as an important and significant part of the tourism industry. In 2005, the Australian government spent £3 million promoting its working holiday visa scheme to attract gap travellers to the country, and it has extended the period of stay from one to two years for travellers who had completed three months of ‘specified work in regional Australia’ (i.e. agricultural, fishing, tree farming, mining, construction). It has done this in recognition of the economic value of the extended-stay youth market. In 2012, the average expenditure for youth travellers staying more than six months was AUD21,375, as compared to AUD2,708 for those staying up to three weeks (Mintel Group Ltd., Travel & Tourism Analyst, May 2013).

Growth and implications for business firms

As the gap travel industry grows, potential mergers between small specialist operators and the larger travel groups are likely, as these companies increasingly recognise the value of the market.

Growth markets for gap year travel are expected to be in continental Europe, where structured activities for young people will be required as national service is phased out in countries such as France and Germany. In the US, where there is increasing interest amongst universities to encourage young people to travel internationally, even small percentage growth in the market would make a significant difference as there are around 20 million Americans aged 15–19 years.

Having some introduction to the issue of gap year review the report on the youth travel market by the UNWTO.

Reading 2.3

World Tourism Organisation 2016, Affiliate Members Global Reports, Volume Thirteen on The Power of Youth Travel, UNWTO Madrid.

Activity

An important market for many countries, including Australia, is the youth education market. Undertake some research to find recent academic and industry research that explain the economic significance of this market. In your opinion, should we consider the youth education market as part of tourism?