Download service industries

Unit 5
Tertiary Activity
Chapter 14
(text)
Introduction
Tertiary Activity:
• Involves service industries which
provide services for people.
• People “serving” people!!
• Examples. Doctor, lawyer, waitress,
tourism industry, mechanic, teacher
REMEMBER….Tertiary economic activity
–
–
–
The focus is on people interacting with people and serving
the customer rather than transforming physical goods
Often referred to as the service industry.
A service occurs when a person performs some type of
ACTION.
EXAMPLES INCLUDE:
•Nurses, doctors, mechanics
•lawyers, teachers, waitresses, technicians
•hairdressers, repair and sales people
•Tourism is an important part of the tertiary sector & golf
has become a thrust for investment in NL.
Public vs. Private Tertiary Activity
Public service industry
• is usually run by the government and are available to anyone in
society.
• Ex. Health care, public transportation, education.
Private service industry
• is run by private business and requires that a profit be made
from the service.
• Ex. mechanics, lawyers, tourism.
NOTE:
• some careers can be classified as public or private.
• Ex: A teacher can work in the public school system or for a
Four Categories of Tertiary Activity
1. Distributive activities:
• distribution or movement of goods
• involves the transportation and sale of all products from
manufacturer to consumer.
• Ex. truck driver, warehouse manager, sales person.
Four Categories of Tertiary Activity
2. Financial Activity:
• involves banks, insurance companies, financial advising
companies, and trust companies.
Four Categories of Tertiary Activity
3. Personal Service:
• involves a wide range of services from legal services, to food
services, to entertainment and counselling services.
Four Categories of Tertiary Activity
4. Government service:
• Public service industry is operated by Government and is not
for profit.
• Paid for by Tax payers!!
• Ex. Education, health care, mail, water, sewer, roads. Hence
the term “ public servant”.
Four Categories of Tertiary Activity
Which category of Tertiary Activity is ach of the
following?
a. Sameday Courier drops off a Christmas present
from your Uncle…
b. You get fungus removed from your feet at the Foot
Spa…
c. The town removes snow from your street after a
snow storm..
d. You buy stocks in Abitibi-Bowater from a local stock
broker…
e. You have your Poodle shaved and groomed…
f. You order a piece of lingerie from the catalogue at
Sears…
Factors affecting the location of Tertiary Activity
The MAIN FACTOR affecting Tertiary Activities is POPULATION!!!
• Location: Being located close (Proximity) to a large enough
market to produce DEMAND.
• Viability: services are only viable as businesses if the demand
is high enough & the price is reasonable.
• Larger populations support a wider range of services and even
competition within services.
Patterns in World Trade
for a Selected Service
Example  TOURISM
• one of the fastest growing and
most profitable sectors of the
economy.
• Ex. sunny area, good ski slopes
or cultural attractions = people
will flock there and spend
money.
• From a country's perspective
international tourism is NEW
MONEY coming into the
country.
International tourism has increased
dramatically for 6 reasons:
1. increased leisure time due to available technologies.
2. retired people have secure incomes and are able to
travel.
3. people have increased discretionary spending
money.
4. travel has become easier and less expensive.
5. travel agencies have packaged attractive "all
expenses paid" trips.
6. advertising has been effective using attractive &
exotic pictures.
Travel agents see that people are usually looking for
1 of 3 different kinds of vacations:
1. Climate oriented (skiing & sun bathing are at opposite
extremes but both rely on climate). PLACES??
2. Landscape oriented (some people like to view the sites).
PLACES??
3. Culture oriented (cultural land marks are of interest to people
ex. Athens) . PLACES??
Marble Mountain, Newfoundland
Athens, Greece
Importance of the tertiary industry
• Service industries provide services needed by ALL of
society!
• They provide services to the primary, secondary AND the
tertiary industries.
• Without these services, society could not operate.
• The BROAD RANGE of services include:
– financial, insurance, real estate, trade, transportation
and communications, retailing, government, health
care, education, personal care, tourism, recreation,
etc.
• more people living in urban areas = more services.
The Growing Tertiary Industry
• Economists recognize that the tertiary industry has
expanded significantly in the last 100 years.
• Figure 14.3 on page 243 of your text shows that in
Canada the tertiary sector of the economy has grown
from 36% of GNP - 73% of GNP over the last 100 years.
• Approximately 70% of the work force in Canada is
engaged in the service area.
• The entire tertiary sector is becoming a much larger
part of the economy for DEVELOPED NATIONS.
Why the tertiary industry is growing.
• As the secondary sector of the economy grew, there were
more people working in urban areas as manufacturers.
• The concentration of people meant there was more need for
services.
• The multiplier effect is in part responsible for this
phenomenon.
• The people working in the tertiary industry need services
too so the growth of the service industry continues.
• We will look at two tertiary growth sectors in particular,
International tourism and information technology.
Assigned Work & Readings
• "International Tourism in the Tertiary
Sector" p. 245-246
• Complete questions # 11-14 on page 246
of your text book.
• Case Study "Costa Del Sol" p. 247-248
complete questions #15-18