SHOWING THE ECONOMICAL FACTORS EFFECTING SUPPLY AND DEMAND OF TOURISM INDUSTRY.

2. Definition of ‘demand for
tourism’:
The total number of persons who
travel or wish to travel and use tourist
facilities and services at places away
from their places of work or residence

3. Economical
Geopolitical
Cultural
TechnologicalSeasonality
Market
Segment
Tourism
Policies
Factors affecting Tourism Demand

4. • Tourism policy by government
organizations
• Marketing through promotional campaigns
that lift or create demand
• Services provided.
• Socio-political changes

5. Determinants of demand
elasticity
For business travellers the decision of
when/where or even whether to go is often
beyond their control. (attending conferences,
meetings, product launches etc) So business
travel is both price and income inelastic.

For leisure travellers they have freedom of
choice regarding where/when/how long and even
whether to go on holiday at all. Leisure travellers
can shop competitively, checking prices, value for
money, special offers etc. So income and price
elasticities are higher than for business travellers.

6. Simultaneous consumption of
complementary products and
services
Tourism products are often consumed
together, such as an air flight and a hotel
room along with a sightseeing tour..
+

7. Substitute Products
 From other tourism products, such as
suppliers of similar products, or suppliers
of products to other destinations.
 From non tourism products – because
expenditure on tourism is often
discretionary and could be reassigned to
other ‘luxury’ goods such as computer,
car, home theatre system.

8. Definition of Tourism Supply
The supply of all assets, services and goods
to be enjoyed or bought by visitors and
occasioned by the journeys of visitors.
Tourism supply consists of an amalgamation
or mix of attractions. Tourism supply shapes
the demand for tourism in a country.

9. Tourism Supply:
 Supply – the provision of the key elements
of the tourism industry by the host
government and destinational leadership.
 Tourism resources for tourism supply range
from natural to man-made.
 Infrastructure required includes
telecommunications, accommodation and
transport.
 Tourism services include tour companies,
visitor information offices, transport rental
agencies

10. 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)
(Tshililo Nelwamondo – 2009)

11. Tourism Suppliers



Hospitality – accommodation, food
service, entertainment, leisure
activities
Transport: Air, road, rail – both to
the destination and travelling
around
Attractions: Theme parks,
museums, buildings, ski-slopes etc

13. 2018 Revenue Growth