CHAPTER SOLUTIONS > Chapter 12 Tourism Components and Supply Virginia Tech HTM 2454

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Tourism Components and Supply Chapter 12

Department of Hospitality and Tourism Management

Overview  Categories of Tourism Supply Components  Matching Supply with Demand/Task Analysis  Reducing Seasonality: Multiple Use and Price Differentials

Department of Hospitality and Tourism Management

Categories of Tourism Supply Components  Natural Resources and Environment  Built Environment  Operating Sectors  Spirit of Hospitality and Cultural Resources Department of Hospitality and Tourism Management

Natural Resources  Natural components of a destination such as  Water, air, climate, physiography, landforms, flora and fauna

 Vital to destination competitiveness  natural resources are the main reason people travel

 Importance of sustaining natural resources  Who is going to travel to an area with polluted beaches?

Department of Hospitality and 4 Tourism Management

Built Environment  Created by humans  Broken down into an area’s infrastructure and superstructure  Infrastructure  Of paramount importance to successful tourism  Water, transportation, electricity, health care, etc.

 Superstructure  Tourism facilities such as hotels, restaurants and attractions.

Department of Hospitality and 5 Tourism Management

Operating Sectors  This is what the public perceives as tourism  Various sectors  Transportation sector  Accommodation sector  Restaurant sector  Attractions sector

 These depend upon quality infrastructure and superstructure Department of Hospitality and 6 Tourism Management

Spirit of Hospitality and Cultural Resources  Culture of the area (remember chapter 10)  Provides a strong incentive to travel

 Employees welcoming spirit  Helps the experience be more memorable  Finest facilities will be worthless if tourist does not feel welcomed

Department of Hospitality and 7 Tourism Management

Matching Supply with Demand  Formula on p. 278 – don’t let it scare you, it’s easier than it looks!  Consider ALL categories of tourism supply  Task Analysis is crucial – understand the steps  Forecasting demand is challenging stuff, but the right tools can make it happen!

Department of Hospitality and Tourism Management

Seasonality  When tourism has distinct high and low seasons  (Peaks and Valleys)

 Implications  Crowding during high season  Not enough ‘supply to meet demand’  Loss of jobs during low season

Department of Hospitality and 9 Tourism Management

Reducing Seasonality  Multiple Use  Involves supplementing peak-season attractions of a destination with other attractions that would create demand for travel to that destination during off-season periods.  Ex. Festivals, outdoor sports, wine/beer tours  Ski areas using mountain biking, zip lines etc. to bring in visitors during the summer/fall

 Price Differentials  Created new markets for the off-season periods by employing price differentials to shift demand away from the peak season in favor of the offDepartment of Hospitality and Tourism season Management

Other questions to ponder…..  Are natural resources important for an urban destination like Paris? Why or why not?  The more multiple-use possibilities, the better…What do you think? When is multiple use a problem?  Name the top 5 “favorite things” European- Bound tourists like to do (Figure 12.1) Department of Hospitality and Tourism Management