The Tertiary Sector: A Comprehensive Guide

Posted on Sep 7, 2024 in Geography

The Tertiary Sector: Concept and Classification

Concept

The tertiary sector encompasses activities that provide services to satisfy people’s needs and wants. Unlike the primary and secondary sectors, it doesn’t produce goods but offers services.

Classification

Services can be classified according to different criteria:

1. Management

  • Public Services: Managed by the state, local councils, and autonomous communities. Their function is social, including education, health, etc.
  • Private Services: Managed by private companies aiming for profit, such as shops, tourist resorts, etc.

2. Function

There are numerous types of services catering to various needs and wants. Some of the most important include:

  • Social Services: Education, health, etc.
  • Administrative Services: Handling administration and processing of private documents.
  • Financial Services: Banks keeping money, providing loans, exchanging currency, paying bills, etc.
  • Cultural Services: Management of museums, concerts, etc.
  • Professional Business: Lawyers, architects, hairdressers, plumbers, engineers, etc.
  • Hotel Business: Hotels, restaurants, pubs, etc.
  • Information and Communication Services: Activities that transmit information and opinions: radio, TV, press, telephone, etc.
  • Trade Services: Buying and selling products and services.
  • Transport Services: Moving people and goods.
  • Leisure and Tourist Services: Offering entertainment and relaxation.

Relationship Between Tertiary Sector and Development

In developed countries, the majority of workers are employed in the tertiary sector, contributing over 70% of wealth and employment. The large tertiary sector in rich countries is due to:

  • Governments providing basic social services to the entire population, requiring significant investment and workforce.
  • High income levels enabling people to spend on various services (shopping, leisure, tourism, etc.).
  • Tertiarization of industry, with many industrial jobs related to services like sales, distribution, and design.
  • Low employment in the primary sector due to agricultural mechanization.

Transport

Transport involves the movement of people and goods. It includes:

  • Means of Transport: Cars, buses, trains, etc.
  • Infrastructure: Roads, highways, railways, ports, airports, etc.

Transport experienced significant growth in the past century due to:

  • Development of industry and increased trade, requiring goods to be transported from producers to consumers.
  • Technological advancements in transport, leading to greater speed, capacity, and safety.

Functions of Transport

  1. Economic: Facilitates the exchange of goods and travel, supporting the development of industry, trade, and tourism.
  2. Political: Strengthens the integration of different regions: towns, provinces, autonomous communities, and countries.
  3. Social and Cultural: Encourages human relationships and knowledge of other cultures.

Types of Transport

  • Overland:
    • Road Transport: Vehicles (cars, buses, motorcycles for people, lorries for goods) and infrastructure (roads, motorways, bus stations, petrol stations).
    • Rail Transport: Trains, commuter trains, underground trains, and infrastructure (railway tracks, railway stations, electricity lines). Development of high-speed trains for passengers and specialized rail freight.
  • Water:
    • Long-distance transportation of heavy goods like raw materials, fuel, and industrial products.
    • Passenger transport on short distances (ferries) or leisure travels (cruise ships).
  • Air:
    • Planes and helicopters requiring extensive infrastructure (airports with runways, hangars, passenger terminals, car parks).
    • Used for long-distance passenger and light goods requiring fast distribution.
    • Development of low-cost airlines.

Trade

Trade refers to the buying and selling of products and services, generating significant revenue and employing numerous workers.

  • Domestic Trade: Takes place within a country.
    • Wholesale: Distributors or wholesalers purchase products in bulk from producers and sell them to smaller shopkeepers in wholesale markets.
    • Retail: Small shopkeepers sell directly to consumers. Sometimes, multiple intermediaries exist between producers and consumers, increasing prices, especially for agricultural products, negatively impacting farmers and consumers.
  • Foreign Trade: Occurs between countries, involving imports (purchases from foreign countries) and exports (sales to foreign countries). The balance of trade is the difference between import and export values, resulting in a positive balance (exports exceeding imports) or a negative balance (imports exceeding exports).

Three major world trade flows exist:

  1. Developed, industrialized countries (Europe, USA, Canada, Japan) exporting industrial products and importing raw materials and energy sources.
  2. Newly industrialized countries from Southeast Asia (China, India, South Korea, Taiwan, Singapore) exporting manufactured goods and importing raw materials and energy sources.
  3. Developing and poor countries from Africa and Latin America exporting raw materials and energy sources and importing industrialized products.

Tourism

Tourism involves trips and activities undertaken for pleasure and recreation. Numerous services cater to tourists’ needs, including travel, accommodation, food, and leisure. Tourism creates many jobs, although many are seasonal.

Two phases can be distinguished:

  • Until the mid-twentieth century, tourism was a minority activity limited to wealthy individuals.
  • In the 1950s, it became a mass phenomenon in developed countries (Western Europe and North America).

The rapid growth of tourism has several causes:

  • Higher income levels allowing workers to enjoy paid holidays and retirees to receive pensions.
  • Improved transport reducing costs and travel time.
  • Increased leisure time with workers having more days off and holidays.
  • Specialized tourist companies (tour operators and travel agencies) offering trips and hotel packages.

Types of Tourism

  1. Beach Tourism: Requires sandy beaches, sunny days, and mild temperatures.
  2. Snow Tourism: Focused on ski resorts in mountainous regions, highly seasonal.
  3. Active Tourism: Involves sporting and risky activities like climbing, rafting, diving, sailing, and hunting.
  4. Ecotourism: Tourists explore and enjoy the countryside, nature, and rural habitats.
  5. Cultural Tourism: Centers on historical and artistic towns, monuments, and museums.
  6. Health and Beauty Tourism: Utilizes spas and medical springs to improve physical and mental well-being.
  7. Business Tourism: Includes conferences, fairs, conventions, and business meetings.