tourism supply and demand b
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7/31/2019 Tourism Supply and Demand b
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TOURISM SUPPLY
AND DEMAND
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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.
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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.
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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
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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
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2. Built environment.
People travel to immerse themselves in an
environment totally different from theirown.
SUPPLY COMPONENTS
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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
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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.
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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)
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DEMAND TO A DESTINATION
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.
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DEMAND TO A DESTINATION
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.
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DEMAND TO A DESTINATION
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.
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DEMAND TO A DESTINATION
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.
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DEMAND TO A DESTINATION
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