11th edition - 2009 chapter 12: tourism components and supply tourism: principles, practices,...

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11th Edition - 2009 Chapter 12: Tourism Components and Supply Tourism: Principles, Practices, Philosophies Part Four: Tourism Supply, Demand, Planning and Development Learning Objectives • Know the four major supply components that any tourist area must possess • Become familiar with the newer forms of accommodations—condominium apartments and time sharing arrangements • Be able to use the mathematical formula to calculate the number of guest rooms needed for the estimated future demand • Develop the ability to perform a task analysis in order to match supply components with anticipated demand • Discover methods of adjusting supply components in accordance with fluctuating demand levels

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Page 1: 11th Edition - 2009 Chapter 12: Tourism Components and Supply Tourism: Principles, Practices, Philosophies Part Four: Tourism Supply, Demand, Planning

11th Edition - 2009 Chapter 12: Tourism Components and Supply

Tourism: Principles, Practices, Philosophies

Part Four: Tourism Supply, Demand, Planning and Development

Learning Objectives• Know the four major supply

components that any tourist area must possess

• Become familiar with the newer forms

of accommodations—condominium apartments and time sharing arrangements

• Be able to use the mathematical formula to calculate the number of guest rooms needed for the estimated future demand

• Develop the ability to perform a task analysis in order to match supply components with anticipated demand

• Discover methods of adjusting supply components in accordance with fluctuating demand levels

Page 2: 11th Edition - 2009 Chapter 12: Tourism Components and Supply Tourism: Principles, Practices, Philosophies Part Four: Tourism Supply, Demand, Planning

11th Edition - 2009 Chapter 12: Tourism Components and Supply

Tourism: Principles, Practices, Philosophies

Part Four: Tourism Supply, Demand, Planning and Development

Components of Tourism Supply

Travel Trade

Sector

AccommodationSector

Even

ts S

ecto

r

Transportation

Sector

Adventure & Outdoor

Recreation SectorFood Services

Sector

Attractions Sector

Ente

rtain

men

tSe

ctor

Tourism

Services

Page 3: 11th Edition - 2009 Chapter 12: Tourism Components and Supply Tourism: Principles, Practices, Philosophies Part Four: Tourism Supply, Demand, Planning

11th Edition - 2009 Chapter 12: Tourism Components and Supply

Tourism: Principles, Practices, Philosophies

Part Four: Tourism Supply, Demand, Planning and Development

Tourism Supply Components

Can be classified intofour main categories:

1.Natural resources

2.Built Environment

3.Operating Sectors

4.Spirit of Hospitalityand cultural resources

Page 4: 11th Edition - 2009 Chapter 12: Tourism Components and Supply Tourism: Principles, Practices, Philosophies Part Four: Tourism Supply, Demand, Planning

11th Edition - 2009 Chapter 12: Tourism Components and Supply

Tourism: Principles, Practices, Philosophies

Part Four: Tourism Supply, Demand, Planning and Development

Formula to Calculate Number of Hotel Rooms Required

R = T x P x L S x N

whereT = number of touristsP = percentage staying in hotelsN = total number of guest nights/number of guests R = room demand per nights/number O = hotel occupancy used for estimating;

divide number of rooms needed at 100% occupancy by estimated occupancyS = number of days per year in businessL = average length of stay

Example

T = 1,560,000 visitorsP = 98%L = 9 daysN = 1.690 = 70 %S = 365 daysR = 1,560,000 x .98 x 9

365 x 1.69

R = 22,306 (rooms needed at 100% occupancy) at 70 % occupancy needR = 22,306/.70 = 31,866 rooms

Page 5: 11th Edition - 2009 Chapter 12: Tourism Components and Supply Tourism: Principles, Practices, Philosophies Part Four: Tourism Supply, Demand, Planning

11th Edition - 2009 Chapter 12: Tourism Components and Supply

Tourism: Principles, Practices, Philosophies

Part Four: Tourism Supply, Demand, Planning and Development

Task AnalysisTask analysis is the procedure used in matching supply with demand. The following steps are usually employed:

1. Identification of the present demand

2. A quantitative and qualitative inventory of the existing supply

3. The adequacy of present supply with present demand

4. Examination of present markets and the socioeconomic trends

5. Forecast of tourism demand

6. Matching supply with anticipated demand

Page 6: 11th Edition - 2009 Chapter 12: Tourism Components and Supply Tourism: Principles, Practices, Philosophies Part Four: Tourism Supply, Demand, Planning

11th Edition - 2009 Chapter 12: Tourism Components and Supply

Tourism: Principles, Practices, Philosophies

Part Four: Tourism Supply, Demand, Planning and Development

J F M A M J J A S O N D

Fluctuating Demand Levelsand Supply (Seasonality)

Seasonality can be reduced through either price differentials or multiple use

© John Wiley & Sons, Inc, 2009