Lec. 1 & 2: Toursim Demand and Supply Flashcards
Tourism Demand
— 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
— demand includes people who wish to travel
4 Elements of Tourism Demand
- people
- money
- time
- space
Element of Tourism Demand: People
- tourists
- measured by ITA and ITR
Element of Tourism Demand: Money
- expenditure and receipts
- profit/sales of hotels, airlines, etc.
Element of Tourism Demand: Time
- duration of stays and travels
- takes into account how to entice tourists to stay for long periods of time
- sometimes at risk due to how tourists are treated by locals (i.e. overcharging taxi rates)
Element of Tourism Demand: Space
- distance and length of trips
- more distance, more stopovers, more spendings, more profit
Types of Tourism Demands
(1) Effective/Actual Demand
(2) Suppressed Demand
(3) No Demand
Effective/Actual Demand
- tourists that are participating or are currently on tour/travel
- include those who are traveling locally (i.e. going to Makati, BGC, etc)
Suppressed Demand
- those who wish to travel but do not
- 2 types: potential and deferred demand
Suppressed Demand: Potential Demand
- wishes to travel but cannot due to personal circumstances (i.e. age)
- i.e. “silver hair tourists” → ages 55+
Suppressed Demand: Deferred Demand
- ready to travel but are cannot because of limited tourism supply
- may also be because of limitations in the government
No Demand
- not inclined to travel/no reasons to travel
Measuring Tourism Demand
- measured by taking into account four elements: people (tourists), money (expenditure, receipts), time (stays and travels durations) and space (distances, lengths of trips)
2 Most Common Demand Measurement Factors
(1) International Tourist Arrivals (ITA)
(2) International Tourist Receipts (ITR)
International Tourist Arrivals (ITA)
- exclusive to visitors who stay at least one night in a collective or private accommodation in the country visited
- same-day visitors don’t count
International Tourist Receipts (ITR)
- covers all tourism receipts resulting from expenditure made by foreign visitor arrivals
- include the receipts generated by overnight as well as by same-day trips
The Tourism System
(1) Demand - determinants, motivators, behaviors
(2) Bridging Components - transportation, travel & marketing intermediaries
(3) Supply - attractions, services, facilities, infrastructure
There is a direct impact between demand, bridging components, supply and vice versa
3 Types of Attractions
(1) primary man-made
(2) primary natural
(3) purpose-built
Primary Man-Made Attractions
- built, cultural, social
- i.e. church, monuments, etc.
Primary Natural Attractions
- i.e. beaches, mountains
Purpose-Built Attractions
- have niche targets and primary activities
- i.e. wellness destinations, ski resorts
Services & Facilities
- accommodation
- food & beverage
- other services (i.e. banks, grocery, theater, etc.)
Infrastructure
- utilities
- communication lines
- roads, highways, bridges
- seaports & harbors
- mass transportation, airports
Measuring Tourism Supply
- measures the set of factors and policies that enable the sustainable development of the travel and tourism sector, which in turn, contributes to the development and competitiveness of a country
