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Summary Introduction to tourism 1st year, exam prep
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INTRO TOURISMCHAPTER 3
The elements of tourism demand
-Aggregate/effective/actual demand
Actual or observed tourism participation and activity
Aggregate number of tourists recorded in a given location or a particular point in time
Can be measured by means of gross travel propensity (skłonność do podróży)
o The total number of tourism trips as a percentage of the population
-Suppressed (zduszony) demand
Those who do not travel for some reason, the nature of that reason being the distinguishing
(wybitny) factor
Potential demand
o More likely to become actual demand in the future when circumstances allow
(additional income or holiday entitlement)
Deferred (odroczony) demand
o Problems on the supply side (accommodation shortage, transport difficulties, the
weather) preventing people from travelling to their chosen destination
o Once problems are overcome people move upwards and become effective or actual
demand
-No demand
People who do not participate in tourism
Reasons
o lack of money
o unwillingness
o inability to find the time necessary
o a desire to enjoy holiday time at home rather than away from it
Other aspects of demand
Substitution of demand – demand for an activity is replaced by another form of activity
(staying in a hotel rather than self-catering)
Redirection of demand – the geographical holiday location is changed (e.g. as a result of
over-booking in one destination)
Displacing of demand – an absence of capacity (due to the hosting of an event such as the
Olympics or other sporting event) so that people choose to visit an alternative destination
Factors influencing demand in the tourist-generating
area
-Economic determinants
, Personal incomes – the availability of the necessary finance
Distribution of incomes
o If there are few wealthy and many poor households -> limited proportion of people
who can afford to travel internationally
o In wealthier developed countries is more equal income distribution -> high overall
level of tourism demand
o Tourism activity is not evenly distributed across all social groups or geographically
within countries
Value of currency/exchange rates
o International tourism is highly susceptible (podatny) to exchange rate fluctuations
(wahania) that can alter the cost of a holiday considerably
o The impact of an unfavourable exchange rate:
Less travel abroad
Reduction in expenditure of length of stay
The method or length of travel time and a reduction in spending by business
travellers
o A movement in exchange rates -> at least 10% to a consequential change, for some
destinations 20%
-Social determinants
Demographic variables
o The age of travellers -> the type of travel product and destination they choose
o Education -> employment type, income-earning potential -> the type of tourism
experience one seeks
o Stage in the family lifecycle -> availability of time, disposable income (dochód do
dyspozycji) available for tourism
o Ownership (własność)
o Occupation
o Ethnic group
Holiday entitlements – the amount of time available for tourism (depends on country)
-Political determinants
Government tax policies and controls on tourist spending
o Exchange control, currency export prohibition, taxation of tourists and residents, visa
regulations
o Political events (the Arab Spring for example)
o Fiscal and control policies can change tourist flows -> specific destinations can gain to
lose potential profitability
o Using tourism as a source of tax revenue – types:
Taxes on commercial tourism products
Taxes imposed on consumers in the act of being tourists
User-pays charges
Factors influencing demand in the tourist destination
area
-Economic
, Price (higher prices -> lower demand and vice versa)
-Supply-related
Competition (between suppliers/countries)
-Political
Government controls at the destination (e.g. visa restrictions, the opportunity for charter
flights to enter restrictions)
Other factors influencing tourism demand
-Promotional efforts of the destination
It is impossible for the consumer to ‘test’ the product before purchase -> promotion
-Health, safety and security issues
-Time and cost considerations
The faster people can travel to destinations, the more popular the tourism product will be
-Seasonal variations
Seasonality – a well-documented aspect of tourism demand; types:
o One-peak seasonality, with a distinct summer season
o Two-peak seasonality, with a summer and winter season
o Non-peak seasonality, mainly occurring in urban areas where the urban centre has
all-year-round use, but seasonal demand from different domestic and international
visitors
Factors influencing seasonality of different markets:
o The interaction of temperature, rainfall and daylight in the origin and destination
areas
o Pricing policies of tourist operators and airlines
o The different holiday habits of travellers
o Importance of fashion, tastes and provision of events and attractions in the
destination
Measuring tourism demand: Tourism statistics
Smith: “Tourism is the set of activities engaged in by persons temporarily away from their usual
environment, for a period of not more than one year, and for a broad range of leisure, business,
religious, health and personal reasons, excluding the pursuit of remuneration from within the place
visited or long-term change of residence”
-What do tourism statistics measure and how are they used?
The principal reasons for statistical measurement in tourism:
o To evaluate the magnitude and significance of tourism to a destination area or region
o To quantify the contribution to the economy or society, especially the effect on the
balance of payment
o To assist in the planning and development of tourism infrastructure and the effect of
different volumes of tourists with specific needs to assist in the evaluation and
, implementation of marketing and promotion activities where the tourism marketer
requires information on the actual and potential markets and their characteristics
Tourism statistics are essential to the measurement of demand in terms of the volume, scale,
impact and value of tourism at different geographical scales
Tourism statistics crucially provide data on the:
o Volume of tourism
o Value of tourism
Measured by:
o Frontier arrivals
o Nights spent
o Accommodation arrivals
o Tourist receipts
International and domestic tourism: Statistics and
insights
Organizations that collate data on international tourism:
o United Nations World Tourism Organization (UNWTO)
The main source of data, collated from survey of major government agencies
responsible for data collection and the trend in international arrivals
“Yearbook of Tourism Statistics” – summary of the most salient tourism
statistics for almost 150 countries and territories
o Organization for Economic Cooperation and Development (OECD)
“Tourism Policy and International Tourism” (Blue Book) – 25 countries, most
of the main generating and receiving areas
o Pacific Asia Travel Association, the ASEAN Tourism Working Group
o APEC
o EU
o National Tourism Organizations (NTOs)
Domestic tourism statistics
Normally coordinated by NTOs, often with the assistance of regional tourism bodies
Domestic tourism is estimated to be up to 10 times greater in volume than international
tourism
Measuring demand: Problems and challenges
Available statistics are not always recent and may not relate to the precious year or season
Tourism statistics are subject to significant errors depending on the size of the sample so may
not effectively represent actual demand
Tourists are a transient and highly mobile population making statistical sampling procedures
difficult when trying to ensure statistical accuracy and rigour in methodological terms
Stopping and sampling respondents often has practical problems due to accompanying
passengers and the time required
Some people avoid interviews and interviewers
The environment in which interview are often conducted are problematic, with many
distractions of large numbers of people, sometimes leading respondents to curtail long
interviews
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