Tourism Demand
Key Element
Tourism Determinants
Basic elements
Economic Determinant
Definition
Effective Demand
Some individuals may harbor a demand for tourism but are unable to realize it.
Political determinants
Effective demand
Suppressed demand
Disposable Income:money that can be spent on oneself after deducting CPF, paying bills, etc.
Actual number of visitors recorded in a given location or at a particular point in time
Potential demand
Deferred demand
consist of
Social determinats
Other aspects of demand
consists of
Demographic variables
Substitution of demand
Tourism destination determinants
Holidays entitlement
Redirection of demand
No demand
Example: Annual leave, school holidays and public holidays
Economic determinants
Income distribution
Supply-related determinants
Exchange rates
Political determinants
Definition: Unfulfilled demand and refers to a desire to travel which, for one reason or another, remains unsatisfied
Example: age, occupation.
- Price
Government tax policies
Demand that is unfulfilled due to the lack of personal resource
(e.g Lack money and time to travel)
What it does
Demand that is postponed due to a problem in the supply environment (e.g Unfortunate events like hotel rooms are fully booked )
Control of tourists spending
Proportion of the population that does not participate in tourism. (e.g Due to the lack of money, they enjoy holiday time at home rather than away from it)
Tax on tourism products. Example: Tourism packages,airline taxes
Issuing Exit or travel visas.
Limits the amount of currency citizens can obtain to travel
Definition
If the money that can be spent on oneself increases and the price remains unchanged, the demand will increase.
The case where the geographical location of demand is changed. (e.g The change in location)
Example: JNTO has been trying to shed the image of Japan as an expensive destination. Higher prices result in lower demand and vice versa
Bad exchange rates will reduce the chances of travelling and the length of stay
A more equal income distribution may result in higher level of tourism demand
The case where demand for one activity is substituted by another form of attitude. (e.g Changing the way people travels)
Is where the government controls the destination.
Example: Bhutan. The government believe in the principle of “High Value - Low Volume” tourism. Hence, they control the destination via visa restrictions, only allowing 274,097 tourists visit to visit the country in 2018.
1.Competition
In Thailand, due to high number of suppliers, there will be price competitiveness between suppliers
Determinants: Others
Safety and Security
Cost
Promotional Efforts
Seasonal
South Korea spends significant amount of money to promote their country
Civil war, protests and bombing cause tourists to avoid Sri Lanka
Increase in tourists during the hanami season
Air tickets and accommodations in the Maldives are very expensive.