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The Basics of Demand for Leisure (Elements of Demand (Actual Demand- the…
The Basics of Demand for Leisure
Demand and Participation
Demand used to describe participation, describe the relationship between quantity purchased by people and the price they will pay for it, refers to the desire which is the ability and willingness to pay for the product desired
Elements of Demand
Actual Demand- the actual no. of participants, the most easily measured through leisure demand statistics
Suppressed demand- unfulfilled demand, refers to the desire to participate but remains unsatisfied, becomes effective demand if circumstances change such as health condition, job change
Deferred demand- unfulfilled due to lack of facilities, eg people want to ice skate but there is no ice skating rink
Potential demand- unfulfilled due to lack of personal resources such as lack of leisure time and lack of income
No demand- people who do not desire demand, try to reduce the no. of with no demand to be part of effective demand
Economic basics of Demand
Price of leisure
Includes components: cost of accommodation, entrance fees, transport fee, cost of food
The average cost of participation(all costs such as transportation, travel, entrance) The higher the average cost, the lower the participation rate
The marginal cost refers to the cost that affects the participation rate
Inelastic demand- the participation rate does not change according the price change
Elastic demand- the participation rate is sensitive to price change
Items that affect elasticity: substitutes, price and usefulness, time period and consumer awareness
Prices of other goods
price of compliments / substitutes
People's Income
Positive relationship between income and leisure, more income then growth of leisure
Income elasicity of demand measures the responsiveness of of demand to the change of demand
Psychological & Social influence on demand
Attitude- a learned predisposition to respond to in a consistent manner with respect to a given situation
Value- an enduring belief that an end-state of existence is personally preferable to an opposite mode of conduct
Motivation may defined as a force that leads people to seek goals to meet their needs
Age- physical skills are developed at varying rate of the life span
Education- as education level increased, exposed to a broader range of activities
Occupation- cultural expectations - occupation - leisure time
Income- closely related to expenditure
Race-may determine their lifestyle, cultural attitude, traditions
Marital status/family- determine the opportunity for leisure for both children and adults
Place of residence- determine the influence of people's needs (countryside vs metropolitan)
Health- health condition of the person at any age will limit
Temporal & Spatial pattern of demand
Change in demand may be affected by economic change
Temporal pattern should be analysed on long and short term( seasonal pattern/ weekly daily basics)
Spatial Patterns- determined by the location of resources and facilities
Linked to the ability and the willingness of people to travel (the costs of money and time )
Leisure activity involves a small amt of time, people will not invest a long period of time in it
Unless leisure activity is more attractive or more valuable