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Demand for Hospitality & Tourism (Tourism Demand Determinants - …
Demand for Hospitality & Tourism
The Elements of Tourism Demand -
May harbor a demand for tourism but are unable to realize it.
Types of demand
Total demand
Suppressed demand -
Do not travel for some reason; and
Very small percentage of the world’s total population engages in international tourism
Potential demand -
Will travel at some future date;
Move into the effective demand category
Deferred demand -
Postponed because of a problem in the supply environment;
Deferred demand category will convert to effective demand
Effective demand
Actual demand
Actual number of participants in tourism or actual tourists
Easily measured
Bulk of tourism statistics
Basic elements
Substitution of demand - one activity is substituted by another form of activity.
Redirection of demand - Geographical location of demand is changed
No demand
Does not participate in tourism
Due to a lack of money, an unwillingness or inability to find the time necessary
Understanding Tourism Demand -
Fundamental measure of any area’s success in attracting visitors. All planning activities are ultimately intended to increase or control demand
Tourism Demand
Geographers
Travel, or wish to travel, to use tourist facilities and services
Psychologists
Perspective of motivation and behaviour
Economists
Product or service that people are willing and able to buy at each specific price during a specified period of time
Form of the relationship between price and quantity purchased is an inverse one
Why demand is important?
Anyone planning future tourism developments
Depend largely on reliable forecasts of the future revenue generated
Increasing demand - Sales & Marketing Program
Tourism Demand Determinants -
Ability to undertake the trip and the nature of that trip will be determined by a wide range of interrelated factors
Definition of Tourism Demand Determinants
Related to both the individual and the tourism supply environment
Represent the parameters of possibility for the individual to participate in tourism
Determinants in the Tourist-Destination Area
Economic Determinants
Price
Supply-related Determinants
Competition
Political Determinants
Government controls at the destination
Other Determinants
Promotional Efforts of the Destination
Health, Safety and Security Issues
Time and Cost Considerations
Seasonal Variations
Determinants in the Tourist-Generating Area
Economic determinants
Disposable income
Distribution of incomes
Value of currency/exchange rates
Social determinants
Demographic variables
Holiday entitlements
Political determinants
Controls on tourist spending
Government tax policies
Forecasting Tourism Demand
Both governments and the tourism industry to have reliable and accurate forecasts
Accuracy of a forecast is an essential consideration
Problems arise from the nature of tourism as “perishable” service industry