1. UNDERSTANDINGUNDERSTANDING
TOURISM DEMANDTOURISM DEMAND
Prepared by: Ma’am LPrepared by: Ma’am L

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: