3º British: Review of tertiary sector

Hello everybody! Today’s lesson is goiing to be easy: just a quick revision of the Tertiary sector. Specifically, about the part that we studied at class before this lockdown situation. As they are concepts that you already know, it would be easy to refresh your memory.

What is Tertiary Sector?

In general, we can define it as the sector that produces no tangible goods, but also provides services to the population to meet their needs. This sector is very varied and covers a wide range of activities that can be provided by public or private institutions. But more important, they can be classified in different groups or types:

• Social services: such as administration, education, health, etc.
• Distribution services: trade, transport, communications, internet, etc.
• Consumer services: hotel, restaurant, leisure, culture sites, museums, libraries, etc..
• Business services: banking, insurance, etc..

In recent decades, the sector has diversified and has grown dramatically. In most developed countries, the service sector makes up around 70% of GDP. As an example, look at the following graphic about the economical activity changes in UK from 1750 to nowadays (click in the image to enlarge its size):

To sum up, the most developed a country is, the biggest the tertiary sector. Look at the following comparative (click in the image to enlarge its size):

  

The world economy and especially the developed countries has undergone a major transformation in recent decades. The development of information society allow to speak of a new economic sector, the quaternary sector or (I+D+I). To make things even more complicate, some Australians economists are now talking about a quinary sector:

Going back to tertiary, tourism is one of the main services of the sector nowadays. Tourism is the displacement for leisure purposes and spending more than a full day outside the usual address. Because of different factors, since World War II tourism has been experiencing sustained growth intensified in recent decades. In most developed countries has become a mass phenomenon of great economic importance.

Europe is the main destination, with more 700 million visitors per year! Thanks to the combination of cultural, natural and sunshine spots. Look at the numbers of the following map, 2018 (click in the image to enlarge its size):

Spain is a case in point of country developed with a large influx of tourists. Actually, in summer 2019 the tourism represents 15% of the GDP in Spain (which means more than the secondary sector!). The following graphic shows the numbers of workers (blue bars) and the incomes generate by each economical activity in Spain (click in the image to enlarge its size):

As you can imagine, a high dependency on tourism (or “Travel Industry”) is dangerous because in case of a crisis (economical but also medical, such as the current covid-19 quarantine), one of the very first sectors to suffer the consequences is precisely tourism: we all like to have holidays and travels but, to be honest, it is not a basic-survival need, isn’t it? Take a look at our map below to see the countries that most rely on their tourism industry, 2017 (click in the image to enlarge its size):

Finally, to check that you have really read this information, please answer the following questions by email (blogeducativo08@gmail.com) before Monday, 4 May.

1. Write a brief description (5-8 lines) of the graphic about the economical activity changes in UK from 1750 to nowadays.
2. One of the explanations of that change is the de-industrialisation. Search online for a definition.
3. What is quinary sector?
4. Map of Tourism (2018): How many visitors did Asia&Pacific receive in 2018?

And that’s all for this revision. Next week, we will study two case studies (one from a MEDC and another for a LEDC) that will be useful for the monthly work nº4 that you must send on Friday, 8 May (don’t forget it!).

Any doubt or question, just email me, ok?