Tourism Demand

TOURISM DEMAND In tourism, the concept of demand involves individuals whose needs include 'consumption' and experience of place. Tourists buy souvenirs and clothing and use services, such as accommodation and amusement parks. However, their main motivation is generally related to the actual tourist destination; a tourist visiting Paris or Rome may want to feel the 'atmosphere' and be part of the local community. Therefore, tourism demand is the total number of people participating in tourism activities, measured as the number of tourist arrivals and departures, the amount of money spent or other statistical data. Factors influencing tourism demand include the economic strength of tourists, vacation availability and personal desires, among other motivating factors. Changes in the place of origin, such as an economic or political crisis, can also affect travel possibilities. On the supply side, price variations compared with similar destinations and services, lack of transportation options, tourism product diversity, and destination image (Stepchenkova and Eales, 2011) as well as safety and climate (Goh, 2012), among other things, can influence tourism demand for specific purpose. It is important to note that, in the case of tourism demand, consumers and clients are often different entities. Two examples that illustrate this reality are as follows: (i) an employee who goes on a business trip is a consumer, but the company (client) pays the bill; and (ii) children or young adults traveling alone (consumers), whose parents or guardians (clients) are paying for the trip. In many of these situations, clients influence consumer choices because consumers are actually responsible for the financial costs of the trip Effective demand: those who actually travel. These can be easily measured and include tourism statistics. ● Suppressed demand: those who want to travel but are prevented from doing so for some reason. This classification can be further divided into: Potential demand: those who are going to travel for some reason but who cannot do it immediately or when they want to for personal reasons, such as not having enough time or money for a holiday; and Deferred requests: those who, due to supplier problems (e.g. no accommodation or inadequate transport) or weather conditions (e.g. blizzard), among other things have had to postpone their trip to another date. Kotler and Armstrong (2013) also refer to this as excessive demand, namely the case where demand exceeds the supply of a product or service. ● No demand: i.e. those who want to be able to travel but will never be able to (because of money, health, time, etc.). Several factors that influence tourism demand according to Ulysal and Crompton in 1984, Crouch in 1995, and Lim in 1997 are as follows: - PRODUCT PRICE OR PRODUCT PRICES: where it is explained that variations in demand are inversely proportional to variations in prices. - PRICE OF COMPETING PRODUCTS OR PRICE OF COMPETITING PRODUCTS: it is explained that an increase in the price of a competing product is an increase in demand for other products. - PRICE OF COMPLEMENTARY PRODUCTS OR PRICE OF COMPLEMENTARY PRODUCTS: namely an increase in the price of products that are complementary or complement each other, such as transport to a tourist destination which influences demand, both for attractions and accommodation at that destination. - INCOME OR INCOME: namely where an increase in income is directly related to an increase in tourism demand. - AVAILABILITY OF FREE TIME OR AVAILABILITY OF FREE TIME: where increasing free time is very profitable for increasing travel. Thus, labor laws that increase or decrease the number of vacation days workers have will positively or negatively affect the propensity to travel. - INVESTMENT IN ADVERTISING OR PROMOTIONAL INVESTMENT THROUGH ADVERTISEMENT: the level of public investment has a direct impact on tourism demand, however, word of mouth is also the strongest way to advertise tourist products or destinations. - TRENDS: some destinations become popular through word of mouth and the influence of social media and influencers are also other factors that can give status to tourists who visit them. - WEATHER VARIATIONSl OR WEATHER VARIATIONS: certain weather changes in a destination may be a factor that causes a decrease in tourism demand (such as rain when visiting the beach), therefore it is very important for a destination to think about activities and attractions in a destination to reduce vulnerability One of them is creating (indoor) entertainment venues when it rains at tourist resorts. - NATURAL DISASTER: natural disasters such as volcanic eruptions, tsunamis and earthquakes which have a drastic impact on tourism demand. - ARTIFICIAL DISATERS: such as wars between countries, terrorist attacks, disease outbreaks also greatly affect tourism demand. - CRISES: Many other factors internal and external to the tourism environment can cause varying demand, such as the air traffic controllers' strike in Brazil in 2006, which caused flight delays and caused many tourists to choose destinations and packages that were accessible by road .