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Lecture Tourism: Principles, practices, philosophies (12th edition): Chapter 12 - Charles R. Goeldner, J. R. Brent Ritchie

Chapter 12 - Tourism components and supply. The purpose of this chapter is to look at just one segment of the tourism phenomenon by examining the physical supply side of tourism. It is important for a tourist area to identify and categorize its supply components and compare them with the competition because the quality and quantity of supply components are a critical factor in determining tourism’s success. | Tourism Components and Supply 12 LEARNING OBJECTIVES Know 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 INDUSTRY Travel Trade Sector Catalyst, Planning, Development, and Promotion Organizations Accommodation Sector Events Sector Transportation Sector Adventure & Outdoor Recreation Sector Food Services Sector Attractions Sector Entertainment Sector Tourism Services PEOPLE CLIMATE PHSYIOGRAPHY INFORMATION SUPERSTRUCTURE INFRASTRUCTURE CULTURE Industry -- Residents -- Visitors TECHNOLOGY GOVERNANCE SPIRIT OF HOSPITALITY TOURISM SUPPLY COMPONENTS Can be classified into four main categories: Natural resources Built environment Operating sectors Spirit of hospitality & cultural resources R = T x P x L S x N T = number of tourists P = percentage staying in hotels N = 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 occupancy S = number of days per year in business L = average length of stay Example T = 1,560,000 visitors P = 98% L = 9 days N = 1.69 O = 70 % S = 365 days R = 1,560,000 x .98 x 9 365 x 1.69 R = 22,306 (rooms needed at 100% occupancy); at 70 % occupancy need R = 22,306/.70 = 31,866 rooms FORMULA TO CALCULATE NUMBER OF HOTEL ROOMS REQUIRED TASK ANALYSIS Task analysis is the procedure used in matching supply with demand. The following steps are usually employed: Identification of present demand A quantitative and qualitative inventory of existing supply Adequacy of present supply with present demand Examination of present markets and socioeconomic trends Forecast of tourism demand Matching supply with anticipated demand Demand Overcrowding and loss potential business Low occupancies Months Supply Seasonality can be reduced through either price differentials or multiple use FLUCTUATING DEMAND LEVELS AND SUPPLY (SEASONALITY) | Tourism Components and Supply 12 LEARNING OBJECTIVES Know 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 INDUSTRY Travel Trade Sector Catalyst, Planning, Development, and Promotion Organizations Accommodation Sector Events Sector Transportation Sector Adventure & Outdoor Recreation Sector Food Services Sector Attractions Sector Entertainment Sector Tourism Services PEOPLE CLIMATE PHSYIOGRAPHY INFORMATION SUPERSTRUCTURE INFRASTRUCTURE CULTURE Industry -- Residents -- Visitors TECHNOLOGY GOVERNANCE SPIRIT OF HOSPITALITY TOURISM SUPPLY COMPONENTS Can be classified