Tourism Components and Supply

Tourism Componentsand Supply12LEARNING OBJECTIVESKnow the four major supply components any tourist area must possess.Be able to use the mathematical formula to calculate number of guest rooms needed for estimated future demand.Develop ability to perform a task analysis to match supply components with anticipated demand.Discover methods of adjusting supply components in accordance with fluctuating demand levels.COMPONENTS OF TOURISM SUPPLY NATURAL RESOURCES AND ENVIRONMENT BUILT ENVIRONMENT OPERATING SECTORS OF THE TOURISM INDUSTRYTravel TradeSectorCatalyst, Planning, Development, and Promotion OrganizationsAccommodationSectorEvents SectorTransportationSectorAdventure & OutdoorRecreation SectorFood ServicesSectorAttractions SectorEntertainmentSectorTourismServicesPEOPLECLIMATEPHSYIOGRAPHYINFORMATIONSUPERSTRUCTUREINFRASTRUCTURECULTUREIndustry -- Residents -- VisitorsTECHNOLOGYGOVERNANCE SPIRIT OF HOSPITALITYTOURISM SUPPLY COMPONENTSCan be classified into four main categories: Natural resources Built environment Operating sectors Spirit of hospitality & cultural resourcesR = T x P x L S x NT = number of touristsP = percentage staying in hotelsN = total # of guest nights/# of guests R = room demand per nights/#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 stayExampleT = 1,560,000 visitorsP = 98%L = 9 daysN = 1.69O = 70 %S = 365 daysR = 1,560,000 x .98 x 9 365 x 1.69R = 22,306 (rooms needed at 100% occupancy); at 70 % occupancy needR = 22,306/.70 = 31,866 roomsFORMULA TO CALCULATE NUMBER OF HOTEL ROOMS REQUIREDTASK ANALYSISTask analysis is the procedure used in matching supply with demand. The following steps are usually employed:Identification of present demandA quantitative and qualitative inventory of existing supplyAdequacy of present supply with present demandExamination of present markets and socioeconomic trendsForecast of tourism demandMatching supply with anticipated demandDemandOvercrowding and loss potential businessLow occupanciesMonthsSupplySeasonality can be reduced through either price differentials or multiple use FLUCTUATING DEMAND LEVELS AND SUPPLY (SEASONALITY)