2. TOURISM DEMANDTOURISM DEMAND
““thethe expenditureexpenditure made by on or behalf of themade by on or behalf of the
visitorvisitor before, during or after the tripbefore, during or after the trip andand
which expenditure is related to the trip andwhich expenditure is related to the trip and
which trip is undertakenwhich trip is undertaken outside the usualoutside the usual
environmentenvironment of the visitor”of the visitor”
3. IMPORTANT DATA FORIMPORTANT DATA FOR
MEASURING TOURISM DEMANDMEASURING TOURISM DEMAND
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 type ofHow long they stayed and in what type of
accommodation?accommodation?
How much money was spent?How much money was spent?
4. DETERMINANTS OF DEMANDDETERMINANTS OF DEMAND
FOR TOURISMFOR TOURISM
Although an individual may be motivated to travel,Although an individual may be motivated to travel,
the ability to do so will depend on a number ofthe ability to do so will depend on a number of
factors related to both the individual and thefactors related to both the individual and the
supply environment.supply environment.
Lifestyle (income, employment, holidayLifestyle (income, employment, holiday
entitlement, educational attainment andentitlement, educational attainment and
mobility)mobility)
Life cycle (age and domestic circumstances)Life cycle (age and domestic circumstances)
5. LIFESTYLE AND LIFE CYCLELIFESTYLE AND LIFE CYCLE
DETERMINANTSDETERMINANTS
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
6. LIFESTYLE AND LIFE CYCLELIFESTYLE AND LIFE CYCLE
DETERMINANTSDETERMINANTS
Race and GenderRace and Gender
- whites, blacks, males, females, business people- whites, blacks, males, females, business people
AgeAge
7. DEMAND FORDEMAND FOR
INTERNATIONAL TOURISMINTERNATIONAL TOURISM
BALANCE OF PAYMENTSBALANCE OF PAYMENTS
1.1. Outbound Tourism – negative effect onOutbound Tourism – negative effect on
resident country and positive on countryresident country and positive on country
visitedvisited
2.2. Inbound Tourism – positive effect on countryInbound Tourism – positive effect on country
visited and negative effect on resident countryvisited and negative effect on resident country
8. DEMAND FOR DOMESTICDEMAND FOR DOMESTIC
TOURISMTOURISM
UNWTO reported in 1984 “there are relativelyUNWTO reported in 1984 “there are relatively
few countries that collect domestic travel andfew countries that collect domestic travel and
tourism statistics”tourism statistics”
WHY?WHY?
9. CONCEPTS OF DEMANDCONCEPTS OF DEMAND
MEASUREMENTMEASUREMENT
Product Level – total product, tourism itemsProduct Level – total product, tourism items
Geographical Level – world, country orGeographical Level – world, country or
destinationdestination
Time-level – present, short, medium or longTime-level – present, short, medium or long
termterm
10. LEVELS OF MARKETLEVELS OF MARKET
DEFINITIONDEFINITION
Total market – sum of actual and potentialTotal market – sum of actual and potential
customerscustomers
Potential Market – consumers that professPotential Market – consumers that profess
interestinterest
Served Market – part of the available marketServed Market – part of the available market
Penetrated Market – set of consumers whoPenetrated Market – set of consumers who
actually purchase tourist productsactually purchase tourist products
11. When destination management is not satisfied withWhen destination management is not satisfied with
the present demand;the present demand;
Lowering the price to have growth in theLowering the price to have growth in the
available marketavailable market
Extension of the served marketExtension of the served market
Promotion campaign within the potential marketPromotion campaign within the potential market
12. WHAT IS MEASURED INWHAT IS MEASURED IN
TOURISM DEMAND?TOURISM DEMAND?
Volume StatisticsVolume Statistics
Value StatisticsValue Statistics
Visitor ProfileVisitor Profile
13. VOLUME STATISTICSVOLUME STATISTICS
Total number of individual tourist arrivals and theTotal number of individual tourist arrivals and the
total number of tourist departurestotal number of tourist departures
No. of trips =No. of trips = (no. of individuals) (no. of trips per individual)(no. of individuals) (no. of trips per individual)
Total tourist nightsTotal tourist nights = (no. of trips) (average length of stay)= (no. of trips) (average length of stay)
14. 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
15. TRAVELLERS NOT INCLUDEDTRAVELLERS NOT INCLUDED
IN THE TOURISM STATISTICSIN THE TOURISM STATISTICS
Border WorkersBorder Workers
ImmigrantsImmigrants
NomadsNomads
Transit PassengersTransit Passengers
RefugeesRefugees
Members of Armed ForcesMembers of Armed Forces
ConsulatesConsulates
DiplomatsDiplomats
16. Measurement of economic value of foreignMeasurement of economic value of foreign
visitors and outgoing visitors (expenditure)visitors and outgoing visitors (expenditure)
International Tourism ExpenditureInternational Tourism Expenditure
International Tourism ReceiptsInternational Tourism Receipts
Leisure tripLeisure trip
VALUE STATISTICSVALUE STATISTICS
17. VISITOR PROFILEVISITOR PROFILE
Visitor NameVisitor Name Origin and DestinationOrigin and Destination
AgeAge Mode of TransportationMode of Transportation
SexSex Purpose of VisitPurpose of Visit
Group TypeGroup Type Length of StayLength of Stay
NationalityNationality Accommodation usedAccommodation used
OccupationOccupation ActivitiesActivities
IncomeIncome Tour or independentlyTour or independently
organizedorganized
18. TOURISM MARKET TRENDSTOURISM MARKET TRENDS
Clear tendency toward shorter staysClear tendency toward shorter stays
Greater fragmentation of holidaysGreater fragmentation of holidays
Higher demand for customized holidays due toHigher demand for customized holidays due to
advanced ITadvanced IT
Increased no. of senior touristsIncreased no. of senior tourists
Sustainable developmentSustainable development
Emerging destinationsEmerging destinations
Segmentation of demandSegmentation of demand
19. Now let’s Measure DemandNow let’s Measure Demand
D =D = ff (propensity,resistance)(propensity,resistance)
Propensity = person’s predisposition to travelPropensity = person’s predisposition to travel
= how willing is the person to travel= how willing is the person to travel
= what types of travel experiences he/= what types of travel experiences he/
she prefersshe prefers
Resistance = relative attractiveness of various destinationsResistance = relative attractiveness of various destinations
20. Economic Distance – time and cost involved inEconomic Distance – time and cost involved in
travelingtraveling
Cultural Distance – extent of cultural differencesCultural Distance – extent of cultural differences
Cost of ServicesCost of Services
Quality of ServiceQuality of Service
SeasonalitySeasonality
FACTORS UNDER RESISTANCEFACTORS UNDER RESISTANCE
INCLUDE:INCLUDE: