Tourism Supply and Demand b

7/31/2019 Tourism Supply and Demand b

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TOURISM SUPPLY

AND DEMAND



TOURISM SUPPLY

• It is important for a tourist area to identify

and categorize its supply components and

compare them with the competition

because the quality and quantity of supply

components are a critical factor in

determining tourism’s success.



SUPPLY COMPONENTS

1. Natural resources and environment.

Basic elements in this category include air ,and climate, physiography of the region,

landforms, terrain, flora, fauna, bodies of water, beaches, natural beauty, and watersupply for drinking, sanitation and similaruses.

The quality of the natural resources mustbe maintained to sustain tourism demand.



2. Built environment.

This includes the infrastructure andsuperstructures.

Infrastructure – consists of allunderground and surface developmentalconstruction such as water supply systems,

sewage disposal systems, gas lines,electrical lines, drainage systems, roads,communication networks and many commercial facilities.

SUPPLY COMPONENTS



2. Superstructure – includes facilitiesconstructed primarily to support visitationand visitor activities. Examples are

airports, railroads, bus and train stationfacilities, resorts, hotels, motels,restaurants, shopping centers etc.

SUPPLY COMPONENTS



2. Built environment.

People travel to immerse themselves in an

environment totally different from theirown.

SUPPLY COMPONENTS



3. Operating Sector

Different sectors that comprise the

Tourism Industry.4. Spirit of hospitality and cultural

resources

It is the people and the cultural wealth of an area that make possible the successful

hosting of tourists.

SUPPLY COMPONENTS





DEMAND

- as a schedule of the amount of any product

or service that people are willing and able to

buy at each specific price in a set of possible

prices during some specified period of time.



DEMAND TO A DESTINATION

The demand for travel to a particular destination will

be a function of the person’s propensity to

travel and the reciprocal of theresistance of the link between origin and

destination areas.

D = f (propensity, resistance)




Propensity can be thought of as a person’s

predisposition to travel - how willing the person is to

travel, what types of travel experiences he or sheprefers, and what types of destinations are considered.




Resistance, relates to the relative attractiveness

of various destinations.

VARIABLES:

• Economic distance – relates to the time and cost

involved in traveling from the origin to the destination

area and back.

The higher the economic distance, the higher theresistance for that destination and, consequently, the

lower the demand.




VARIABLES:

2. Cultural distance – refers to the extent to which theculture of the area from which the tourist originates

differs from the culture of the host area.In general, the greater the cultural distance, the greater

will be the resistance.

3. Cost of Services - the higher the cost of services at a

destination, the higher the resistance to travel to thatdestination will be, therefore, the lower the demand.




VARIABLES:

4. Quality of Service – the higher the quality of service

at a destination, the lower the resistance will be for

travel to that destination.

5. Seasonality - The relative attractiveness of a given

destination will depend on the time of year for which a

vacation is planned.




D = f( propensity , resistance)

PROPENSITY DEPENDS ON:

Psychographics

Demographics (socioeconomic)

Marketing effectiveness

RESISTANCE DEPENDS ON:

Economic distance

Cultural distance

Cost of tourist services

Quality of service

Seasonality



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Tourism Supply and Demand b