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Chapter 5

Chapter 5. Tourist Supply Issues. Tourist Supply Issues. by Pro. Jin Ciping Bachelor of Science in Tourism Management (H54050020) Nanchang University

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Chapter 5

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  1. Chapter 5 Tourist Supply Issues

  2. Tourist Supply Issues by Pro. Jin Ciping Bachelor of Science in Tourism Management (H54050020) Nanchang University School of Economy and Management Department of Tourism Management

  3. Learning outcomes • Be familiar with the wide range of tourism suppliers • Be aware of some issues relating to these suppliers • Understand how the public sector is involved in tourism supply

  4. Contents 1. INTRODUCTION 2. TOURISM STUDY 3. DETERMINANTS OF TOURISM SUPPLY 4. FOUR MARKETS 5. RESOURCES AS ATTRACTIONS

  5. 1. INTRODUCTIONTourism supply issues 1 ﹡what to produce? ﹡How to produce it ? ﹡When and where and how to produce it ? The tourism industry considers supply based on the three basic questions

  6. Tourism supply issues 2 The tourist is a mobile consumer at different geographical scale • The range of tourism supply is fixed at specific points in geographical space and time ( from place to place) • The growing trends is that the tourism supply transnational corporations are relocating capital and finance to a wider range of international locations to fulfill the demand for tourism services

  7. Tourism supply issues 3 Tourism supply issues are critical in analyzing tourism because it helps to understand how the tourism industry is both organized and distributed geographically

  8. Tourism supply issues 4 Tourism supply issues exist in an environment in which policy, planning, development issues and political factors impulse upon the regulatory framework which influences the extent to which the tourism industry operates in a regulated-through-to-deregulated environment.

  9. 2. TOURISM STUDY Tourism supply is ‘poorly researched’ within the conventional ( ordinary ) textbooks on tourism • The issue of supply attracts relatively little attention • The simplistic descriptions of the tourism industry.

  10. TOURISM STUDYSupply conception • Sessa 1983, Sinclair and Stabler 1992: Supply conception can be classified and divided into three main categories: 1. description of the industry, and its operation, management and marketing 2. the spatial development interactions which characterize the industry on a local, national and international scales 3. the effects which result from the development of the industry

  11. TOURISM STUDYSupply conception Sessa1983: give a more incisive ( deep ) analysis of the conception of tourism supply: Tourism supply is the result of those activities that involve the provision ( supply goods and services) required to meet tourism demand and which are expressed in tourism consumption.

  12. 3.DETERMINANTS OF TOURISM SUPPLY • Characteristics of tourist products • Tourist resources (elements) • Market situation • Institutional elements

  13. Characteristics of tourist products Sinclair 1997: its characteristics concludes (tangible and intangible) 1. It cannot be stored 2. it cannot be examined before purchasing 3. It is necessary to travel to consume it 4. It depends heavily on nature and man-made resource 5. It is a series of product involving transport, accommodation, catering, natural resources, entertainment, and other facilities and services, such as shops and banks, travel agents and tour operators

  14. Tourist resources

  15. Market situation Four market situation normally prevails in the tourism sector, controlling the market: 1. perfect competition 2. contestable market 3. oligopoly 4. monopoly

  16. 4.FOUR MARKETSPerfect competition 1

  17. FOUR MARKETSContestable market 2.1

  18. Contestable market 2.2(Similar product, similar price)

  19. FOUR MARKETSOligopoly 3.1

  20. FOUR MARKETSOligopoly 3.2

  21. Oligopoly 3.3Example In this market, only few large corporations control the market. • In Jiangxi travel market, the large corporations are ﹡ Travel services, Jiangxi branch ﹡ Overseas Travel Services, Jiangxi branch ﹡ the Youth Travel Service, Jiangxi branch • They are leading, controlling the market: ﹡ develop new products and services ﹡ adjust the market prices ﹡ open up the foreign market • Middle and small tour companies are the majority. They follow the large corporations.

  22. Oligopoly 3.4Comparison • When a large numbers of small firms operate in the tourism industry, a competitive market exists • while when a limited number of operators or tourism businesses exist, an oligopoly situation may also be a bit similar to monopoly if the competition is limited

  23. FOUR MARKETSMonopoly 4.1

  24. Monopoly 4.1 • In the transport sector, governments have privatized monopolies on tourism provision (with air travel ), the enterprises can react in a way where the free market leads to oligopolistic or monopolistic behavior prevailing in specific areas • In airline industry: USA, China • In train industry: China

  25. Monopoly 4.2 • In China, the government have control on the transportation: ﹡set the policies ﹡open up the routes ﹡set the price • In the US, the government have control on provision ﹡set the policies ﹡help the open up the routes ﹡help to adjust the price

  26. Institutional elements(1)Definition It refers to the influence of agencies and organizations in the public and private sector which affect, manage, and regulate the supply of tourism services and business interests.

  27. Institutional elements(2)Sectors 1

  28. Institutional elements(3)Sectors 2 Why is the public and private partnership applied in the tourism industry? • when the local authorities cannot provide the range of services they would like to, the private sectors come to do, e.g. provide a complete service from information provision to holiday booking • Partnerships have developed between the public and private sectors whereby promotion of the area is developed to hybrid bodies.

  29. Private sectorsUK Example 1

  30. Private sectorsUK Example 2

  31. 5.RESOURCES AS ATTRACTIONS • Categoriesaccording to five natural features: ﹡water ﹡topography ﹡vegetation ﹡wildlife ﹡climate • Many natural resources are inter-dependent and rely on management.

  32. Types: ﹡theme parks ﹡museums ﹡heritage centers ﹡craft centers ﹡entertainment complexes ﹡galleries ﹡health spas ﹡casinos Edutainment is the major content Man-made resources as attractions

  33. Senior market • Definition of senior market The senior market is invariably defined as those travellers in middle age (55 years and over). • International arrivals by this group is growing quickly recently ﹡more aging or aged countries ﹡the senior people are healthy ﹡they have pensions

  34. Senior population aged 55 or over for main tourism generating countries, 1997( share)

  35. Senior population aged 55 or over for main tourism generating countries, 1997

  36. Special events 1 • Definition of special events: Hall, 1992, 1997: Major events means sign activities or special activities, here mean periodically- or non-periodically-held important fairs, festival celebration, conference & exhibition, cultural or sports activities. The sign or special activities must promote the development of other industries, such as the accommodation, transportation, recreation, retailing, etc. ▪ Special events: major events and local events

  37. Special events 2 In recent years, China has been developing special events: • Convention & exhibition • Sporting • Cultural & art ﹡’99 Kuanming World Fair ﹡2001 EPEC Conference in Shanghai ﹡2006 Shanghai World Fair ﹡2006 Hangzhou World Leisure Fair ﹡2008 Olympic Games in Beijing . Hongkong is the place where special events are one of important tourism contents

  38. Topic discussion 1. What is meant by the term tourism supply? 2. What are the different sectors of the tourism industry which combine to supply tourists with products, services and experiences?

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