The document discusses the determinants of tourism demand and supply. It defines tourism demand as the total number of people who travel away from their place of work or residence. Tourism supply comprises the assets, services, and goods available to visitors, including infrastructure, attractions, and marketing. Tourism demand is influenced by individual factors like income and mobility, economic factors like cost and exchange rates, geographic factors like seasonality and accessibility, and political environments. Tourism supply depends on economic, political, geographical, legal, technological and social factors. It involves transportation, accommodations, attractions and other services that make up the tourism product chain.

1. Determinants of Demand andDeterminants of Demand and
Supply in TourismSupply in Tourism

2. TOURISM DEMANDTOURISM DEMAND
The total number of persons whoThe total number of persons who
travel, or wish to travel, to usetravel, or wish to travel, to use
tourists facilities and services attourists facilities and services at
places away from their places of workplaces away from their places of work
or residenceor residence

3. APPROACHES TO STUDYAPPROACHES TO STUDY
TOURISM DEMANDTOURISM DEMAND
Economists-Economists- Demand measured inDemand measured in
monetary returns gained within a periodmonetary returns gained within a period
of time. Price, elasticity, quality, revenueof time. Price, elasticity, quality, revenue
and expenditure.and expenditure.
Psychologists-Psychologists- Demand related toDemand related to
motivation, behavior, personality andmotivation, behavior, personality and
environment.environment.
Geographers-Geographers- Demand based onDemand based on
geographic boundaries, demographics.geographic boundaries, demographics.

4. TYPES OF DEMANDTYPES OF DEMAND
Effective or Actual Demand-Effective or Actual Demand- PeoplePeople
actually traveling at a point of timeactually traveling at a point of time ..
Potential Demand-Potential Demand- People who couldPeople who could
travel if motivated.travel if motivated.
Deferred/Postponed Demand-Deferred/Postponed Demand- PeoplePeople
who wish to travel, but are not travelingwho wish to travel, but are not traveling
presently due to temporary reasons, of selfpresently due to temporary reasons, of self
or supply end.or supply end.
Suppressed Demand –Suppressed Demand – People notPeople not
interested in travel.interested in travel.

5. TRAVEL PROPENSITY –TRAVEL PROPENSITY –
LIKELIHOOD TO TRAVELLIKELIHOOD TO TRAVEL
Net Travel Propensity-Net Travel Propensity- Percentage of populationPercentage of population
of the overall population who makes at least one trip during aof the overall population who makes at least one trip during a
given period of time.given period of time.
== Number of population taking at least one tripNumber of population taking at least one trip X 100X 100
total populationtotal population
Gross Travel Propensity-Gross Travel Propensity- Total number of tripsTotal number of trips
undertaken as a percentage of the population.undertaken as a percentage of the population.
== Number of Total TripsNumber of Total Trips X100X100
Total PopulationTotal Population

6. HIGH AND LOW TRAVELHIGH AND LOW TRAVEL
PROPENCITYPROPENCITY
High Travel PropensityHigh Travel Propensity
High EducationHigh Education
More AwarenessMore Awareness
More IncomeMore Income
Private VehiclePrivate Vehicle
Better Travel FacilitationBetter Travel Facilitation
Good Exchange RateGood Exchange Rate
Shorter Travel DistanceShorter Travel Distance
Low Travel CostLow Travel Cost
Young AgeYoung Age
Low Travel PropensityLow Travel Propensity
Low EducationLow Education
Low AwarenessLow Awareness
Low IncomeLow Income
No ownership of VehicleNo ownership of Vehicle
Poor Travel FacilitationPoor Travel Facilitation
Poor Exchange RatePoor Exchange Rate
Long Travel DistanceLong Travel Distance
High Travel CostHigh Travel Cost
Old AgeOld Age

7. FACTORS DETERMININGFACTORS DETERMINING
TOURISM DEMANDTOURISM DEMAND
1.1. IndividualIndividual
2.2. EconomicEconomic
3.3. GeographicGeographic
4.4. DestinationDestination
5.5. PoliticalPolitical

8. INDIVIDUAL FACTORSINDIVIDUAL FACTORS
 EducatEducation and Awarenession and Awareness
 MobilityMobility
 Age, Gender, ReligionAge, Gender, Religion
 Income and employment, disposableIncome and employment, disposable
income, household income, DINKSincome, household income, DINKS
 Paid holidayPaid holiday
 Family InfluenceFamily Influence
 Nature of Family-joint, nuclearNature of Family-joint, nuclear
 VALSVALS
 Stage of Family Life CycleStage of Family Life Cycle
 Gap Year OpportunitiesGap Year Opportunities

9. ECONOMIC FACTORSECONOMIC FACTORS
Cost of TravelCost of Travel
Cost of ProductsCost of Products
Competitive PricesCompetitive Prices
Exchange RateExchange Rate

10. GEOGRAPHIC FACTORSGEOGRAPHIC FACTORS
SeasonalitySeasonality
Accessibility, location and distanceAccessibility, location and distance
Attractions AvailableAttractions Available
Urban or Rural population orUrban or Rural population or
EconomyEconomy

11. DESTINATION FACTORSDESTINATION FACTORS
 Image – organic and inducedImage – organic and induced
 Promotion: travel channels, awareness,Promotion: travel channels, awareness,
dealsdeals
 Technology and developmentTechnology and development
 CRS technologyCRS technology
 Development LevelDevelopment Level
 CredibilityCredibility
 Safety and SecuritySafety and Security
 Attraction and EventsAttraction and Events
 Quality of ProductQuality of Product
 Travel FormalitiesTravel Formalities

12. POLITICAL FACTORSPOLITICAL FACTORS
Government regulation on supplyGovernment regulation on supply
and touristsand tourists
Visas, formalities, health checks,Visas, formalities, health checks,
currency, prohibitionscurrency, prohibitions
Transport regulation, accessibility,Transport regulation, accessibility,
bilateral agreementsbilateral agreements

13. CHARACTERISTICS OF TOURISMCHARACTERISTICS OF TOURISM
DEMANDDEMAND
 Planned demandPlanned demand
 Involves a lot of expenditureInvolves a lot of expenditure
 There is no tangible return or purchaseThere is no tangible return or purchase
 Highly price elasticHighly price elastic
 Can be price inelastic tooCan be price inelastic too
 SeasonalitySeasonality
 Is not subject to law of diminishingIs not subject to law of diminishing
returnsreturns
 Changing demand patternsChanging demand patterns

14. TOURISM SUPPLYTOURISM SUPPLY
The supply of all assets, servicesThe supply of all assets, services
and goods to be enjoyed or boughtand goods to be enjoyed or bought
by visitors and occasioned by theby visitors and occasioned by the
journeys of visitors.journeys of visitors.

15. COMPONENTS OF TOURISMCOMPONENTS OF TOURISM
SUPPLYSUPPLY
InfrastructureInfrastructure (telecommunications,(telecommunications,
accommodation and transport)accommodation and transport)
SuperstructureSuperstructure ((include facilities
constructed primarily to support visitation
and visitor activities. ))
AttractionsAttractions (theme parks, museums,(theme parks, museums,
buildings, ski-slopes)buildings, ski-slopes)
Marketing/Promotion andMarketing/Promotion and
Destination ImageDestination Image

16. TOURISM SUPPLYTOURISM SUPPLY
Tourism supply is a composite productTourism supply is a composite product
involving transport, accommodation,involving transport, accommodation,
catering, natural resources,catering, natural resources,
entertainment, and other facilities andentertainment, and other facilities and
services, such as shops and banks,services, such as shops and banks,
travel agents and tour operators.travel agents and tour operators.

17. FACTORS AFFECTING TOURISMFACTORS AFFECTING TOURISM
SUPPLYSUPPLY
1.1. EconomicEconomic
2.2. PoliticalPolitical
3.3. GeographicalGeographical
4.4. LegalLegal
5.5. TechnologicalTechnological
6.6. SocialSocial

18. Tourism Product
TransportTourists Area of
Origin
Tourists Destination
Tourists Demand
Product
Package Supplier
Associated Services
Government NGOs
Tourism
Operators
Services Tour Guides
+ Drivers
ACCOMMODATION
Components of Tourism Supply (supply chain)

19. SUPPLY COMPONENTS
Natural or environmental resourcesNatural or environmental resources
((physiographic of the area, landforms, flora,
fauna, water bodies, air quality and similar
natural phenomena)
Built or man-made resourcesBuilt or man-made resources
((infrastructure, superstructure)infrastructure, superstructure)
TransportationTransportation
Hospitality and cultural resourcesHospitality and cultural resources
((friendliness, courtesy, sincere interest and
willingness to serve and to be better
acquainted with visitors ))

20. DEMAND-SUPPLY LINKDEMAND-SUPPLY LINK
Demand
Generating Origin
Supply Receiving
Destination
Marketing and Promotion

21. TOURISM DESTINATIONTOURISM DESTINATION
PLANNINGPLANNING
 The availability of natural resources andThe availability of natural resources and
attractionsattractions
 The availability of investment fundsThe availability of investment funds
 A skilled human resource baseA skilled human resource base
 Government policy that supports tourismGovernment policy that supports tourism
 Destination accessibilityDestination accessibility
 The presence of complementary servicesThe presence of complementary services
and facilities and infrastructureand facilities and infrastructure

22. Thank youThank you