Supply and demand of tourism industry

SHOWING THE ECONOMICAL FACTORS EFFECTING SUPPLY AND DEMAND OF TOURISM INDUSTRY.

1. Supply and Demand I n Tourism

2. Definition of ‘demand for tourism ’: The total number of persons who travel or wish to travel and use tourist facilities and services at places away from their places of work or residence

3. Factors affecting Tourism Demand

4. Tourism policy by government organizations Marketing through promotional campaigns that lift or create demand Services provided . Socio-political changes

5. Determinants of demand elasticity  For business travellers the decision of when/where or even whether to go is often beyond their control. (attending conferences, meetings, product launches etc) So business travel is both price and income inelastic.  For leisure travellers they have freedom of choice regarding where/when/how long and even whether to go on holiday at all. Leisure travellers can shop competitively, checking prices, value for money, special offers etc. So income and price elasticities are higher than for business travellers.

6. Simultaneous consumption of complementary products and services  Tourism products are often consumed together, such as an air flight and a hotel room along with a sightseeing tour. . +

7. Substitute Products  From other tourism products, such as suppliers of similar products, or suppliers of products to other destinations.  From non tourism products – because expenditure on tourism is often discretionary and could be reassigned to other ‘luxury’ goods such as computer, car, home theatre system.

8. Definition of T ourism S upply The supply of all assets, services and goods to be enjoyed or bought by visitors and occasioned by the journeys of visitors. Tourism supply consists of an amalgamation or mix of attractions. Tourism supply shapes the demand for tourism in a country.

9. Tourism Supply: Supply – the provision of the key elements of the tourism industry by the host government and destinational leadership. Tourism resources for tourism supply range from natural to man-made. Infrastructure required includes telecommunications, accommodation and transport. Tourism services include tour companies, visitor information offices, transport rental agencies

10. Tourism Product Transport Tourists Area of Origin Tourists Destination Tourists Demand Product P a cka g e Supplier Associated Services Government NGOs Tourism O p e rators Services Tour Guides + Drivers ACCOMMODATION Components of Tourism Supply (supply chain) (Tshililo Nelwamondo – 2009)

11. Tourism Suppliers    Hospitality – accommodation, food service, entertainment, leisure activities Transport: Air, road, rail – both to the destination and travelling around Attractions: Theme parks, museums, buildings, ski-slopes etc

12. 2018 Revenue Growth

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