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
 Economical

Geopolitical
Tourism
Policies

Factors affecting Tourism Demand

Market
Segment Cultural

Seasonality Technological
• Tourism policy by government
organizations

• Marketing through promotional campaigns

that lift or create demand

• Services provided.
• Socio-political changes
 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.
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.

+
 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.
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.
 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
Components of Tourism Supply (supply chain)

Tourists Area of Transport Tourists Destination

Origin

Tourism Product

Product
Tourists Demand ACCOMMODATION Package Supplier

Associated Services

Tourism
Government NGOs Services Tour Guides
Operators
+ Drivers

(Tshililo Nelwamondo – 2009)

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
2018 Revenue Growth