Constraints On Tourism Demand 60291n

CONSTRAINTS ON TOURISM DEMAND It’s important to understand what factors reduce demand for a tourism product or service. All these factors can also be considered as factors influencing tourism & travel.

MONEY Tourism is not only a purchase but also a major purchase from a budget. So the most commonly recognized constraint is money.  Discreationary income: The income that is left after all necessary expenditure, so tourism assumes a secondary role in the budget allocation process.

TIME The technological developments consisting of developments of machinery has increased the leisure time. There are no holidays without time available for travel. For many years the availability of free time was a major determinant. In many countries employees have paid leave each year – in other words, annual paid holidays. In the past a few wage earners had paid vacations, but the rapid growth of unions increased the length of paid vacations. Changes in the granting of annual paid holidays and the lengthening of the period of leave have clearly influenced the potential size of the tourism market in many countries. The demand for tourism is influenced not only by the amount of leisure time available but also the distribution of that time throughout the year. Leisure time for tourism may be a set of such things as work and public holiday allowance, school and college vacation periods or time limits on conducting business trips.  Time elasticity: Time constrains the tourist to do all things, even money is available. So time will especially affect the demand. When time increase, the demand will increase too. This is the positive time elasticity of demand. Extra time means more remote destinations, longer stays and more spending. Time elasticity of spending in the destination is very high.

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“The money rich/time rich” is desirable. To be able to travel, tourists must not only have the time but also sufficient financial resources to enable them to do so. The economic determinants/constraints of tourism demand are basically income and price. The increase in paid holidays has generally been accompanied by rising real incomes which have meant more people have been able to afford to travel. The most useful measure of the ability to participate in tourism is discreationary income, that is, the income left over when tax, housing and the basics of life have been ed for. A discreationary income rises the ability to participate in tourism rises. The relationship between tourism demand and income is income – elasticity or the relative change in tourism demand to a relative change in income. Outbound tourism shows a high income – elasticity; in other words, the increase in income is directly proportional to the increase in tourism demand. The relationship between tourism demand and income can also be measured in different ways such as GDP, disposable income; but there are two significant points that should be noted: First, disposable income per capita is an average and the personel income distribution is important. In some Middle Eastern countries, the higher incomes are concentrated in the hands of just a few people. Secondly, there can be a time lag between tourism expenditure and income creation. The tourist’s economic ability to travel and engage in various forms of tourism depends not only on the level of income remaining after these needs have been met but also on the price of different components of tourist experience. The relationship between tourism demand and price leads to price – elasticity. When the price of a tourism product or service in a destination increases, the demand in the generating country decreases.

POLITICS A number of barriers to demand are created either by political situations or political decisions. Many countries limit their accessibility to travelers. For example some of the Arab countries allow visas for business or transit, but not for tourism. Some countries have a long and cumbersome visa application process. Governments have controls on certain tourism products or services. Controls include those on drugs, alcohol, entertainment, housing etc. Government regulations have great impact on tourism. Government intervention in the market place through price and fare regulation, travel and tourism taxes may constrain tourism from the generator at the destination or through the link.

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HEALTH & SAFETY Health is also a barrier to travel. Poor health limiting mobility or the fear of inadequate health services at the destination reduce willingness to venture far from home. Travel to developing countries is a problem for many potential visitors due to health conditions in those countries. When outbreaks of serious diseases occur, they can destroy their potential demand for tourism. For example ; AIDS in some European countries reduces the willingness of tourists to travel those places. Resurgence of malaria in many tropical developing countries reduced the demand of potential visitors. One of the strongest fears many travelers have is that they will become sick in a foreign country and will not be able to communicate with medical personnel. If people refuse to travel to certain areas as they do not feel safe, then safety and security needs are important indicators. The biggest barrier to demand is the concern of travelers for their personal safety. This is manifest at two levels. First is the fear of safety within a country due to the degree of criminal activity that occurs normally in that country. For examle: tourism to Mexico is affected a number of times when reports have been made of tourist being killed, robbed or attacked either besides the roads or in resorts. Second and another concern which has a far-ranging impact on demand is terrorism or its threat. Tourists feel threatened by bombings and shootings that randomly menace innocent individuals around the world.

LIFE CYCLE & SOCIAL CHARACTERISTICS Couples without children may have more discreationary time and many than families with children. Young children may be a constraint on travel. Before the arrival of children, young couples often have a high income and few other ties giving them a high travel propensity. The arrival of children couples with the responsibility of a home mean that constraints of time and finance depress travel propensity. The travel industry has recognized the monetary constraints imposed on families. For example: hotels and motels do not charge additional fees if children under a certain age share a room with their parents. Child-care services are provided for couples wishing to spend a night away from the children. Barriers to demand for a particular location are raised by its social character. Places with large popultions, described as ‘’teeming’’ are often looked upon negatively. Older travelers may choose not to go to areas that attract teenagers because of the activities offered and the noise that results. Social behavior can also affect demand. Associated with social behavior is the crime rate. For many years New York was regarded throughout the world as an unsafe area. In an effort to overcome this negative image New York City started 3

the ‘’I Love New York’’ campaign which has a positive impact on its travel industry.

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