1. What is Tourism demand?

Tourism demand can be defined as the expenditure made by or on behalf of the visitor before, during
or after the trip and which expenditure is related to the trip is undertaken outside the usual
environment of the visitor.
2. Why Demand is important?
The amount of demand for travel to a particular destination is of great concern to anyone involved in
tourism. Vital demand data include: (1) how many visitors arrived, (2) by what means of transportation,
(3) how long they stayed and in what type of accommodations, and (4) how much money was spent.
There are various measures of demand; some are much easier to obtain and are usually of more general
interest than are others. Techniques are also exist for making forecasts of future demand. Such
estimates are of great interest to anyone planning future tourism developments. the availability of
financing will depend largely on reliable forecasts of the future gross sales or revenues from the project
to determine if the proposal will be financially feasible.
3. Determinants of Demand for Tourism
3.1 Determinants at the individual scale
Although an individual may be motivated to travel, the ability to do so will depend on a number of
factors related to both the individual and the supply environment . These factors can be termed
determinants of demand and represent the parameters of possibility for the individual even within
the developed world many are unable to participate in tourism for some reasons. For example, a certain
level of discretionary income is required to allow participation in tourism, and this income, and indeed
the type of participation, will be influenced by such factors as job type, life-cycle stage, mobility, level of
education attainment and personality.
Once a decision to travel has taken, the ability to undertake the trip, and the nature of that trip will be
determined by a wide range of interrelated factors. These can be broadly divided into two groups:
3.1.1 The first group of factors can be termed lifestyle, and includes income, employment,
holiday entitlement, educational attainment and mobility.
3.1.2 the second group can be termed life cycle where the age and domestic circumstances of
an individual affect both the amount and type of tourism demanded.
naturally, these factors are interrelated and complementary. In a Western society, a high status job is
normally associated with an individual in middle age with a high income, above average holiday
entitlement, education and mobility.


3.2 Lifestyle determinants of demand for tourism
3.2.1 Income and employment
Income and employment are closely linked and exert important influences upon both the
level and the nature of tourism demanded by an individual. Tourism is an expensive activity that
demands a certain threshold of income before the participation is possible. gross income gives little
indication of the money available to spend on tourism rather, it is discretionary income that provides
the best indicator: that is, the income left over when tax, housing and the basics of life have been
accounted for. Clearly, two households with the same gross incomes may have very different
discretionary incomes, although discretionary income is difficult to measure.
The relationship between income and tourism is a complex one. The relationship is also characterized by
the fact that, at the extremes of the income spectrum, tourism demand is strongly affected, whereas in
the middle of the spectrum it is much more difficult to discern a clear relationship. For example, a very
low discretionary income markedly depresses travel propensity. A discretionary income rises, the ability
to partake of tourism is associated with the purchase of leisure-oriented goods until, with a high
discretionary income, travel may reach a peak and then level off as the demands of a high-status job,
and possibility frequent business trips, reduce the ability and desire to travel for pleasure.
A fundamental distinction is between those in employment and those unemployed. The impact of
unemployment on the volume on the volume of tourism demand is obvious, but the nature of demand
is also changed by employment uncertainly. This encourages later booking of trips, domestic holidays
and shorter lengths of stay, and switches demand away from commercial accommodation to Visiting
Friends and Relatives (VFR), therefore leading to lower spending levels.
The nature of employment not only influences travel propensity by determining income and holiday
entitlement but it also has an effect upon the type of holiday demanded, as the mechanism of peer and
reference group pressure is felt.
3.2.2 Paid holiday entitlement
The increase in leisure time experienced by most individuals in the developed world since 1950 is well
documented. However, the relationship between an individuals total time budget, leisure time and paid
holiday entitlement is complex. A number of surveys suggest that, in a developed Western economy,
individuals have anything from 35 to 50 hours free time at their disposal. This free time is great for
males, the young and single adults. Of this free time some two-thirds is spent around the home.
However, to enable, tourism, leisure time has to be blocked into two or more days to allow a stay away
from home. While this obviously is the case with paid holiday entitlement, pattern of leisure time have
changed over the past 20 years to allow three-day weekends, flexi time and longer periods of absence
for those in employment.
A variety of holidays arrangements now exists worldwide, with most nations having a number of one-
day national holidays, as well as annual paid holiday entitlement by law or collective agreements.
Individual levels of paid holiday entitlement would seem to be an obvious determinant of travel
propensity, but in fact the relationship is not straightforward and, rather like the income variable, it is
clearer at the extremes. For example, low levels of entitlement do act as a real constraint upon the
ability to travel, while a high entitlement encourages travel. This is in part due to the interrelationship
between entitlement and factors such as job status, income and mobility. As levels of entitlement
increase, the cost of tourism may mean that more of this entitlement will be spent at home.
Paid holiday entitlement tends to be more generous in developed economies and less so in the
developing world. The pattern of entitlement is also responsible in part for the seasonality of tourism in
some destinations simply because some of the entitlement has to be taken in the summer months. To
an extent, this is historical and is rooted in the holiday patterns of manufacturing industries. It does
however, have an impact upon the nature of demand for tourism. In some countries, notably france,
staggering of holiday entitlement has been attempted to alleviate seasonality.
3.2.3 Education and mobility
Level of educational attainment is an important determinant of travel propensity as
education broadens horizons and stimulates the desire to travel. Also, the better educated the
individual, the higher the awareness of travel opportunities, and susceptibility to information, media,
advertising and sales promotion.
Personal mobility has also an important influence on travel propensity, especially with regards to
domestic holidays. The car is the dominant recreational tool for both international and domestic
tourism. It provides door-to-door freedom, can carry tourism equipment (such as tents or boats) and has
all-round vision for viewing. Ownership of a car stimulates travel for pleasure in all but recessionary
times.
3.2.4 Race and gender
Race and gender are two critical determinants of tourism demand, but the relationships are
not clearly misunderstood. Most surveys of participation in tourism suggest that it is whites and males
who have the highest levels of effective demand for tourism. However, changes in society are acting to
complicate this rather simplistic view. For example, in Japan, office ladies are important consumers of
travel.
Clearly, for the purpose of analyzing each variable we have to separate them, but it must be
remembered that they all are complementary and interrelated. Indeed, this is such that some writers
have attempted to analyze tourism or leisure lifestyle by performing multivariate analysis on the
determinants of tourism demand and then trying to group individuals into particular categories. To date
these analyses have met with limited success. Even where they have been commercially adopted as
market segments it is difficult to correlate them with other variables such as media habits.
Leisure or tourism lifestyles are considerations when viewing the important role of fashion and style in
holiday choice. Tourism demand has always been susceptible to fashion and can be influenced perhaps
more readily than demand for some other goods by marketing and promotional activity.
3.3 Life-cycle determinants of demand for tourism
3.2.1 Income and employment
Income and employment are closely linked and exert important influences upon both
the level and nature of tourism demanded by a individual. Tourism is an expensive activity that demands
a certain threshold of income before participation is possible. Gross income gives little indication of the
money available to spend on tourism -rather it is discretionary income that provides the best indicator:
that is, the income left over when tax, housing and the basics of life have been accounted for. Clearly,
two households with the same level gross incomes may have very different discretionary incomes,
although discretionary income is difficult to measure.
The relationship between income and tourism is a complex one. The relationship is also characterized by
the fact that, at the extremes of the income spectrum, tourism demand is strongly affected, whereas in
the middle of the specrum it is much more difficult to discern a clear relationship.
A fundamental distinction is between those in employment and those unemployed. The impact of
unemployment on the volume of tourism demand is obvious, but the nature of demand is also changed
by employment uncertainly. This encourages later booking of trips, more domestic holidays and shorter
lengths of stay, and switches demand away from commercial accommodation to Visiting Friends and
Relatives (VFR), therefore leading to lower spending levels.
The nature of employment not only influences travel propensity by determining income and holiday
demanded as the mechanism of peer and reference group pressure is felt.
3.2.2 Paid holiday entitlement
The increase in leisure time experienced by most individuals in the developed world
since 1950 is well documented. The relationship between the individuals total time budget, leisure time
and paid holiday entitlement is complex. A number of surveys suggest that in a developed Western
economy, individuals have anything from 35 to 50 hours free time a week at their disposal. This free
time is greater for males, the young and single adults. Of this free time some two-thirds is spent around
the home. However, to enable tourism, leisure time has to be blocked into two or more days to allow a
stay from home. While this obviously is the case with paid holiday entitlement, patterns of leisure time
have changed over the past 20 years to aloe three-days weekends, flexi-time and longer periods of
absence for those in employment.
A variety of holiday arrangements now exists worldwide, with most nations having a number of one-day
national holidays, as well as annual paid holiday entitlement by law or collective agreements. Individual
levels of paid holiday would seem to be an obvious determinant of travel propensity, but in fact the
relationship is not straightforward and, rather like the income variable, it is clearer at the extremes. As
levels of entitlement increase, the cost of tourism may mean that more of this entitlement will be spent
at home.
Paid holiday entitlement tends to be more generous in developed economies and less so in the
developing world. The pattern of entitlement is also responsible in part for the seasonality of tourism in
some destinations simply because some of the entitlement has to be taken in the summer months. To
an extent, this is historical and is rooted in the holiday patterns of manufacturing industries. It does have
an impact upon the nature for tourism. In some countries, notably France staggering of holiday
entitlement has been attempted to alleviate seasonality.
3.2.3 Education and mobility
Level of educational attainment is an important determinant of travel propensity as education
broadens horizons and stimulates the desire to travel. Also. the better educated the individual, the
higher the awareness of travel opportunities, and susceptibility to information, media, advertising and
sales promotion.
Personal mobility also has an important influence on travel propensity, especially with regards to
domestic holidays. The car is the dominant recreational tool for both international and domestic
tourism. it provides door-to-door freedom, can carry tourism equipment (such as tents or boats) and ha
all-round vision for viewing. Ownership of a car stimulates travel for pleasure in all but recessionary
times.
3.2.4 Race and gender
Race and gender are two critical determinants of tourism demands, but the relationship are
not clearly understood. Most surveys of participation in tourism suggest that it is whites and males who
have the highest levels of effective demand for tourism. Changes in society are acting to complicate the
rather simplistic view, for example in Japan, office ladies are important consumers of travel.
Leisure or tourism lifestyles are considerations when viewing the important role of fashion and style in
holiday choice. Tourism demand has always been susceptible to fashion and can be influenced perhaps
more readily than demand for some other goods by marketing and promotional activity.
3.3 Life-cycle determinants of demand for tourism
The propensity to travel, and indeed the type of tourism experience demanded is closely related to an
individuals age. Although the conventional measurement is chronological age, domestic age better
discriminates between type of tourist demand and levels of travel propensity. Domestic age refers to
the stage in the family life cycle reached by an individual, and different stages are characterized by
distinctive holiday demand and levels of travel propensity.


4. Demand for International Tourism
National governments are generally extremely keen to monitor and attach measures to the movement
of people into and out of their countries. This for a variety of reasons, many of which have nothing
whatsoever to do with tourism, such as security, health and immigration control. The measurement of
tourism movement, however has increasingly been seen as important because of the effects of tourism
activity on a countrys balance of payments.
The balance of payments is a countrys financial accounts. There are movements of monies into and out
of these accounts. Any standards economies text will provide a detailed and proper explanation of the
various components. An obvious way in which tourism has an impact on the balance of payments is
through the spending of international tourists. We can identify two aspects here:
1. Residents of country X, who travel and spend money aboard. This has a negative effect on the
balance of payments of country X(and positive effects on the balance of countries visited). With regard
to the movement of money, this can be thought of as an import tangible goods (such as car or
refrigerator); instead it is the invisible tourism experience that has been purchased.
2. Residents of a foreign country, who are incoming tourists to country X, spend money in X. This has a
positive effect on the balance on payments of X (and corresponding negative effect on the balance of
payments of the country of origin of the tourist). As far as X is concerned, the direction of spending is
such that is considered to be an invisible export in other words the spending is on something that
cannot be touched or seen.
The two components described above to form what is as the travel account for country. Apositive travel
account means that spending by incoming tourists exceeds spending aboard by outgoing tourists, and
the combined effect will be of benefit to the balance of payments. Many commentators argue that any
comparison of the two types of spending is unfair, since they reflect different activities.
4.1 What is measured?
The measurement of demand normally includes statistics of volume, value and profiles, as we describe
in some detail below. In addition, during the collection of such data from visitors, questions are also
often asked that relate to visitor opinions and attitudes.
4.1.1 Volume statistics
The total number of international tourist arrivals to a country and the total number of international
tourist departures from that country are key measures of demand. It can be seen that such measure are
actually of trips.



number of trips = number of individuals x average number of trips taken per individual

A serious weakness in using international tourism arrivals, as far as most tourism suppliers are
concerned, is that the length of stay is not taken into account. The length of stay is important for
accommodation establishments, beach managers, retail outlets and so on, although not of course for
passenger termini. a better measure of volume for many purposes is therefore total tourist nights. This
also acts as a measure of likely impact on a tourist destination. It can be defined as follows:


4.1.2 Value (expenditure) statistics
Total visitor expenditure is a simple measure of the economic value of foreign visitors of a
country. It normally includes spending within a host country, and excludes fare payments made to
international passengers carriers for travel into and out of that country. Similarly, the expenditure of
outgoing tourist while abroad is measure of the economic cost to a country due to its nationals
travelling abroad. International tourism expenditures can typically be classified under the headings of
accommodation, food and drink, entertainment, shopping and travel with the host country. For
purposes of comparison between countries, value statistics are often converted to US dollars.
4.1.3 Visitor Profile statistics
Profile statistics are made up of statistics relating to the visitor and those of the visit.
Table 5.1 : Visitor profile statistics
The visitor The visit
Age Origin and destination
Sex Mode of transport
Group type (e.g alone,family) Purpose of visit
Nationality or country of residence Length of stay
Occupation Accommodation used
Income Activities engaged in
Places visited
Tour or independently organized

5. Demand for Domestic tourism
The UNWTO reported in 1984 that there are relatively few countries that collect domestic travel and
tourism statistics, and the situation has not changed significantly since then. Much more information is
available on international tourism.
International travel involves, by definition the crossing of a frontier. It is therefore easier to observe and
monitor. Domestic tourism involves movement internally and is therefore more difficult to research.
Countries that make use solely of registrations forms at hotels miss out all aspects of domestic tourism
that involve staying at supplementary accommodations establishments or with friends or relatives. A
total tourist nights = number of tourist trips x average length of stay (nights stayed)
number of countries do not even try to measure domestic demand because it is considered unimportant
owing to the nature of their own domestic tourism. For example, in many developing countries very
little domestic movement involves staying in serviced accommodation, and so it does not compete with
demand from international visitors. The benefits of collecting information always have to be set against
its costs, particularly in a developing country where resources may be severely limited.
On the other hand, within the major international tourism receiving countries of North America and
Western Europe, domestic demand and international demand often compete with and complement
each other. We can see this clearly in places such as hotel lobbies, on beaches, in restaurants and
attractions. So in countries such as the USA, Canada and the UK, the measurement of domestic tourism
is important.
Use is made of domestic tourism statistics in a variety of ways:
To measure the contribution of tourism to the overall economy. Although it is impossible to
assess accurately, estimates can be produced that measure the effect of tourism on a countrys
gross domestic product.
For promotion and marketing policies. Many countries promote themselves strongly as
destinations to their own tourist spending.
To assist area development policies. This can involve inputs into the the tourism planning
process to ensure that visitor preferences are taken into account.
To aid social policies. A statistical knowledge of holiday taking habits by nationals is required in
order to deliver social tourism aid to the underprivileged.
In addition to the above, local and regional tourism organizations and individual businesses make use
of domestic tourism statistics as an aid to decision-making.
5.1 What is measured?
The measurement of domestic tourism demand covers similar areas to that of international demand:
volume, value and visitor profile statistics. These can be presented for the country as a whole, but they
are often more useful if they can be broken down to provide reliable information for specific
destination areas. It is common for individual destinations to conduct their own research, and to
complement their findings with the general data of a national study.







6. Tourism Market Trends
One of the trends in the tourism industry has been the shift from talking about sustainable tourism, to
actually acting upon it, Indeed 2002 was declared the Year of the Ecotourist by the United Nations. A
swathe of environmentally conscious projects have been implemented, from noise reduction efforts at
Vancouver airport, to Canadian Pacifics Green Partnership Program (eliminating 60% of its organic
waste through composting) and the creation of a wealth of businesses, educating suppliers and clients.
Other latest market trends, according to the World Tourism Organization (WTO) include:

A clear tendency toward shorter stays;
Greater fragmentation of holidays, due to a reduction in working hours and an increase in the
number of paid leave days;
Higher demand for customized holidays. The maturity of a significant part of the market
demands this, while the use of advanced information technology makes greater customization
possible;
The relative increase in demand for conventional non-hotel accommodation;
The shift from active holidays to holidays as an experience. In these regard, tourism is following
in the footsteps of other types of consumption. The point is to achieve a complete participative
experience, which provides new knowledge as well as authentic emotions;
Increase in the number of senior tourist;
The increasing importance of sustainable development and fair trade principles;
The advent of emerging destinations that are prompting other destinations to rethink the design
of their products;
Increased opportunities of destinations with lower boarder-entry hurdles;
The segmentation of demand made more complex by the overlapping of traditional travel
purposes (e.g Honeymoon trips to destinations with access to sun-and-sand, cultural and theme
cruise products).











































































































,j,lljljlj mnkm khhkkhlklh nnk
.,,, lnb, mmm ;;;;;;;;;lkgig hjj I m mmmmhk99jhkkgkg