UNDERSTANDINUNDERSTANDING TOURISM G TOURISM

DEMANDDEMAND

Prepared by: Ma’am LPrepared by: Ma’am L

TOURISM DEMANDTOURISM DEMAND

““the the expenditureexpenditure made by on or made by on or behalf of the visitor behalf of the visitor before, during before, during or after the tripor after the trip and which and which expenditure is related to the trip and expenditure is related to the trip and which trip is undertaken which trip is undertaken outside the outside the usual environmentusual environment of the visitor” of the visitor”

IMPORTANT DATA FOR IMPORTANT DATA FOR MEASURING TOURISM MEASURING TOURISM

DEMANDDEMAND How many visitors arrived?How many visitors arrived?

By what means of transportation?By what means of transportation?

How long they stayed and in what How long they stayed and in what type of accommodation?type of accommodation?

How much money was spent?How much money was spent?

DETERMINANTS OF DETERMINANTS OF DEMAND FOR TOURISMDEMAND FOR TOURISM

Although an individual may be motivated Although an individual may be motivated to travel, the ability to do so will depend to travel, the ability to do so will depend on a number of factors related to both on a number of factors related to both the individual and the supply the individual and the supply environment.environment.

Lifestyle (income, employment, holiday Lifestyle (income, employment, holiday entitlement, educational attainment and entitlement, educational attainment and mobility)mobility)

Life cycle (age and domestic Life cycle (age and domestic circumstances)circumstances)

LIFESTYLE AND LIFE LIFESTYLE AND LIFE CYCLE DETERMINANTSCYCLE DETERMINANTS

Income and EmploymentIncome and Employment

-Gross income and Discretionary income-Gross income and Discretionary income

-Switching demands-Switching demands

Paid Holiday EntitlementPaid Holiday Entitlement

-Increase in leisure time-Increase in leisure time

Education and MobilityEducation and Mobility

-Knowledge and awareness-Knowledge and awareness

-Car ownership-Car ownership

LIFESTYLE AND LIFE LIFESTYLE AND LIFE CYCLE DETERMINANTSCYCLE DETERMINANTS

Race and GenderRace and Gender

- whites, blacks, males, females, - whites, blacks, males, females, business peoplebusiness people

AgeAge

DEMAND FOR DEMAND FOR INTERNATIONAL TOURISMINTERNATIONAL TOURISM

BALANCE OF PAYMENTSBALANCE OF PAYMENTS

1.1. Outbound Tourism – negative effect Outbound Tourism – negative effect on resident country and positive on on resident country and positive on country visitedcountry visited

2.2. Inbound Tourism – positive effect Inbound Tourism – positive effect on country visited and negative on country visited and negative effect on resident countryeffect on resident country

DEMAND FOR DOMESTIC DEMAND FOR DOMESTIC TOURISMTOURISM

UNWTO reported in 1984 “there are UNWTO reported in 1984 “there are relatively few countries that collect relatively few countries that collect domestic travel and tourism domestic travel and tourism statistics”statistics”

WHY?WHY?

CONCEPTS OF DEMAND CONCEPTS OF DEMAND MEASUREMENTMEASUREMENT

Product Level – total product, Product Level – total product, tourism itemstourism items

Geographical Level – world, country Geographical Level – world, country or destinationor destination

Time-level – present, short, medium Time-level – present, short, medium or long termor long term

LEVELS OF MARKET LEVELS OF MARKET DEFINITIONDEFINITION

Total market – sum of actual and Total market – sum of actual and potential customerspotential customers

Potential Market – consumers that Potential Market – consumers that profess interestprofess interest

Served Market – part of the available Served Market – part of the available marketmarket

Penetrated Market – set of consumers Penetrated Market – set of consumers who actually purchase tourist who actually purchase tourist productsproducts

When destination management is not When destination management is not satisfied with the present demand;satisfied with the present demand;

Lowering the price to have growth in Lowering the price to have growth in the available marketthe available market

Extension of the served marketExtension of the served market Promotion campaign within the Promotion campaign within the

potential marketpotential market

WHAT IS MEASURED IN WHAT IS MEASURED IN TOURISM DEMAND?TOURISM DEMAND?

Volume StatisticsVolume Statistics Value StatisticsValue Statistics Visitor ProfileVisitor Profile

VOLUME STATISTICSVOLUME STATISTICS

Total number of individual tourist Total number of individual tourist arrivals and the total number of tourist arrivals and the total number of tourist departuresdepartures

No. of trips = No. of trips = (no. of individuals) (no. of trips (no. of individuals) (no. of trips per individual)per individual)

Total tourist nightsTotal tourist nights = (no. of trips) (average = (no. of trips) (average length of stay)length of stay)

Arrival in accommodation establishmentArrival in accommodation establishment Business tripBusiness trip

Country of residenceCountry of residence Domestic tourismDomestic tourism

Duration of tripDuration of trip Inbound tourismInbound tourism Internal TourismInternal Tourism

International TourismInternational Tourism Outbound TourismOutbound Tourism Domestic TourismDomestic Tourism National TourismNational Tourism

TRAVELLERS NOT TRAVELLERS NOT INCLUDED IN THE INCLUDED IN THE

TOURISM STATISTICSTOURISM STATISTICS Border WorkersBorder Workers

ImmigrantsImmigrants NomadsNomads

Transit PassengersTransit Passengers RefugeesRefugees

Members of Armed ForcesMembers of Armed Forces ConsulatesConsulates DiplomatsDiplomats

Measurement of economic value of Measurement of economic value of foreign visitors and outgoing visitors foreign visitors and outgoing visitors (expenditure)(expenditure)

International Tourism ExpenditureInternational Tourism Expenditure

International Tourism ReceiptsInternational Tourism Receipts

Leisure tripLeisure trip

VALUE STATISTICSVALUE STATISTICS

VISITOR PROFILEVISITOR PROFILE

Visitor NameVisitor Name Origin and Origin and DestinationDestination

AgeAge Mode of Mode of TransportationTransportation

SexSex Purpose of VisitPurpose of Visit

Group TypeGroup Type Length of StayLength of Stay

NationalityNationality Accommodation usedAccommodation used

OccupationOccupation ActivitiesActivities

IncomeIncome Tour or Tour or independently independently organizedorganized

TOURISM MARKET TOURISM MARKET TRENDSTRENDS

Clear tendency toward shorter staysClear tendency toward shorter stays Greater fragmentation of holidaysGreater fragmentation of holidays Higher demand for customized Higher demand for customized

holidays due to advanced ITholidays due to advanced IT Increased no. of senior touristsIncreased no. of senior tourists Sustainable developmentSustainable development Emerging destinationsEmerging destinations Segmentation of demandSegmentation of demand

Now let’s Measure Now let’s Measure DemandDemand

D = D = ff (propensity,resistance) (propensity,resistance)

Propensity = person’s predisposition to travelPropensity = person’s predisposition to travel

= how willing is the person to = how willing is the person to traveltravel

= what types of travel experiences = what types of travel experiences he/ he/ she prefersshe prefers

Resistance = relative attractiveness of various Resistance = relative attractiveness of various destinationsdestinations

Economic Distance – time and cost Economic Distance – time and cost involved in travelinginvolved in traveling

Cultural Distance – extent of cultural Cultural Distance – extent of cultural differencesdifferences

Cost of ServicesCost of Services Quality of ServiceQuality of Service SeasonalitySeasonality

FACTORS UNDER FACTORS UNDER RESISTANCE INCLUDE:RESISTANCE INCLUDE: