c3 tourist demand

TOURISM

DEMAND

ATS 2013 Introduction to Tourism

DEPARTMENT OF TOURISM & HOSPITALITYFACULTY OF ENTREPRENEURSHIP & BUSINESS

LEARNING OUTCOMES

i. Recognize the different forms of

tourism demand.

ii. Understand the range of factors

influencing tourism demand

including particular factors at the

destination and in generating

areas.

iii. Be aware of those influences on

tourism demand which the tourism industry can affect and those

which are beyond its control.

iv. Recognize the procedures for

measuring tourism demand

v. Understanding the challenges and

problem of collecting tourism

statistics.

OVERVIEW

Demand is the basic upon which researchers

conceptualize how visitors choose and pursue

a range of opportunities in their leisure time.

Consideration of demand in relation to tourism

can assist in understanding motivation, needs

and experiences and as an indicator of

changing trends.

An understanding of tourism demand is a starting point for the analysis of why tourism develops, who patronizes specific destinations and what appeals to the client market.

Hall and Page (2002:60)

“Tourism demand is the foundation on which all tourism-related business decisions ultimately rest”

Song and Witt (2000)

DIFFERENT PERSPECTIVE OF RESEARCHERS

a) Geographer concerned on

The total number of persons who

travel, wish to travel, to use tourist

facilities & services at places

away from their place of work or

residence.

b) Economist concerned on the

tourist propensity to purchase

tourism products or services at a

specific price during a given

period of time.

c) Psychologists concerned on

motivation and behavior

d) Anthropologist & sociologists concerned on impact of

tourism on the societies hosting

tourists and the social dimensions

of the tourist visiting.

The total number of persons who

travel or wish to travel, to use tourist

facilities and services at places away

from their places of work and

residence (Mathieson and Wall, 1982)

The relationship between individuals’

motivation (to travel) and their ability

to do so (Pearce, 1995)

The schedule of the amount of any

product or service which people are

willing and able to buy at each specific

price in a set of possible prices during

a specific period of time (Cooper et al.,

1993: 15)

WHAT IS TOURISM DEMAND?

THE CONCEPT OF DEMAND IN TOURISM

THE CONCEPT OF DEMAND IN TOURISM

Demand occurs at four different

levels including,

1. The amount of products that will

be consumed at various prices

2. Actual levels of participation

3. The unsatisfied component of

participation

4. The desire for emotional and

psychologically-based

experiences.

No Demand

Effective

Demand

Suppressed

Demand

Tourism

Demand

THE ELEMENTS OF TOURISM DEMAND

1. Effective or actual demand : the number of people

participating in tourism, commonly expressed as

the number of travelers. It is normally measured by

tourism statistics-typically, departures from

countries and arrivals at destinations.

2. Suppress demand : consists of the proportion of

the population who are unable to travel because of

circumstances (e.g. lack of purchasing power or

limited holiday entitlement).


Suppress demand ~ (cont.)

It is sometimes referred to as potential demand. Potential

demand can be converted to effective demand if the

circumstances change. There is also deferred demand when

constraints (e.g. lack of tourism supply such as shortage of

bed spaces) can also be converted to effective demand if

destination or locality can accommodate the demand.

3. No demand : is a distinct category for those members of the

population who have no desire to travel and those who are

unable to travel due to family commitments or illness.


Lifecycle

determinants

Lifestyle

determinants

Life style determinants

Income

Gross income

Disposable income

Discretionary income

Employment

Paid-holiday entitlement

Other factors

Education

Technology

Mobility

Life cycle determinants

Domestic Age

Adolescence/young adult

Marriage

Retirement

Attitude

Perception

Images

Motivators

Wanderlust

(desire to travel)

Status/prestige and

people DETERMINANTS

OF TOURISM

DEMAND

Demand

Economic determinants

Social-psychological determinants

Exogenous determinants

(business environment)

Determinants of tourism demand (source : Uysal, 1998 © Routledge).

Reproduced from D. loannides and K. Debbage (eds),

The Economic Geography of the Tourist Industry, p.87 Fig. 5.2, Routledge, 1998

DETERMINANTS OF TOURISM DEMAND

Economic determinants

– Disposable income

– GNP (Gross National

Product) per capita

income

– Private consumption

– Cost of living (CPL)

– Tourism prices

– Transportation cost


Economic determinants (cont.)

– Cost of living in relation to

destinations

– Exchange rate differentials

– Relative prices among

competing destinations

– Promotional expenditures

– Marketing effectiveness

– Physical distance


Social-psychological determinants

– Demographic factors

– Motivations

– Travel preferences

– Benefits sought

– Images of destinations

– Perceptions of destinations

– Awareness of opportunities

– Cognitive distance


Social-psychological

determinants (cont.)

– Attitudes about destinations

– Amount of leisure time / travel

time

– Paid vacations

– Past experience

– Life span

– Physical capacity, health and

wellness

– Cultural similarities

– Affiliations


Exogenous determinants (business

environment)

–Availability of supply resources

– Economic growth and stability

– Political and social environment

– Recession

– Technological advancements

– Accessibility

– Levels of development –

infrastructure and superstructure


Exogenous determinants (business

environment) cont.

– Natural disaster

– Epidemics

– War, terrorism

– Social and cultural attractions

– Degree of urbanization

– Special factors (Olympic

Games, megaevents)

– Barriers and obstacles

–Restriction, rules and laws


FACTORS

INFLUENCING

DEMAND IN THE

TOURIST DESTINATION

AREA

Economic

Supply-

related

Political

Promotional

Efforts

Health,

Safety &

Security

Time & Cost

Seasonality

FUTURE DEMAND FOR TOURISM

Drivers in identifying how

demand will change in the

future:

1. Economic drivers

2. Social & Cultural drivers

3. Political drivers

4. Technology drivers

5. Environmental drivers

6. Leisure & tourism trends

c3 tourist demand

Presentations & Public Speaking