The presentation provides you with the insights of how tourism industry gets effected by demand and supply factors .

1. MANAGERIAL
ECONOMICS
BY:- GROUP 1
EKANSH GUPTA
KUNEEKGUPTA
KARTIKYADAV
KAMAKSHI KAUSHIK
JAGDISH SINHA

3. Tourism Industry consist of the
following:-
• Transportation
• Accommodation
• Activities and Attraction
• Food and beverages
• Shopping
• Insurance
• Foreign transaction
• Tourist publications
• Entertainment

4. SOCIO ECONOMIC FACTORS
Socioeconomic factors refers to society related economic factors . They
are a combination of both and relate to influence one another. These can
be explained as follows:
● Accessibility
● Accommodation
● Amenities
● Ancillary services
Factors affecting Demand of Tourism
Industry

5. GEOPOLITICAL FACTORS
Geopolitics focuses on political power linked to geographic space. In
particular, territorial waters and land territory in correlation with historical
issues . These factor usually affect the demand negatively.
These factors include
● Terrorism
● International relations
● Shared boundaries
● Immigration criteria

6. GEOGRAPHICAL FACTORS
Good climate is one of the most important features of attraction for any
tourist place. Pleasant climate with warmth and ample of sunshine attracts
tourists who come from the temperate and colder regions.
The geographical factors include
● Good Climate
● Seasonal changes

7. ECONOMICS FACTORS
Economical factors have a major impact on the tourism industry globally
and locally. Fluctuations in the global and local economies can affect the
level of demand and supply in tourism. The economic factors includes
● Disposable income of customers
● Travelling cost ( expenditure )
● Exchange Rate
● Tax rates

8. TECHNOLOGICAL FACTORS
Technological factors have led to an entirely new range of tourist activities.
Western cities have several such tourist hotspots that are attractive because
of technology and business.
Apart from that, lodging options have also increased for people and reduced
the costs of their overseas stay. People on tour can benefit from Air BnB
arrangements which greatly reduce the prices of overseas stay. The internet
has brought destinations closer.

9. COVID - 19
The sudden spread of Coronavirus has had a highly negative impact on
the entire travel and tourism industry globally. While currently, nearly all
tourism-related activity has come down to zero, a large number of
providers are battling for survival. The pandemic had a sudden and bitter
impact on the aviation sector and its heavy impact was clear by the middle
of March 2020.

10. Factors affecting Supply of Tourism Industry
Government
Lockdown
Removal of Entry
Restrictions
Tax and Duties

11. Natural Calamities
Due to natural calamities like earthquake, flood, tsunami, etc.
huge destruction takes place which leads to destruction of hotels,
roads, restaurants, etc. which decreases the supply.
For example:- Uttarakhand flood in 2013.

12. Weather Condition
Some tourism sports activities can take place only when
climatic conditions are favorable to them and if they are
not then supply of those activities falls.
For example:- snow sports and river rafting.

13. Price of Raw Materials
Price of raw materials determines the cost of goods and services
of the industry and if cost increases supply will reduce and vice
versa.
For Example:- Fuel for transportation

14. Government Initiatives
When Government takes initiative to promote tourism in some
place then it provides incentives to people for opening hotels,
restaurants and other tourist attractions and due to this supply
increases.
For example:- Gujarat tourism promotion

15. Damage of roads
Damage of roads decrease the supply of transportation to a place
which reduces the tourism to that place.
For Example:- If a major road on the way to a hill station get
damaged by landslide or any other reason the supply of
transportation will reduce.

16. Thank You