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Slide 1 - Learning Objectives Know the four major supply components that any tourist area must possess Become familiar with the newer forms of accommodations—condominium apartments and time sharing arrangements Be able to use the mathematical formula to calculate the number of guest rooms needed for the estimated future demand Develop the ability to perform a task analysis in order to match supply components with anticipated demand Discover methods of adjusting supply components in accordance with fluctuating demand levels
Slide 2 - Components of Tourism Supply
Slide 3 - Tourism Supply Components Can be classified into four main categories: 1. Natural resources 2. Built Environment 3. Operating Sectors 4. Spirit of Hospitality and cultural resources
Slide 4 - Formula to Calculate Number of Hotel Rooms Required R = T x P x L S x N where T = number of tourists P = percentage staying in hotels N = total number of guest nights/number of guests R = room demand per nights/number 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 0 = 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
Slide 5 - Task Analysis Task analysis is the procedure used in matching supply with demand. The following steps are usually employed: Identification of the present demand A quantitative and qualitative inventory of the existing supply The adequacy of present supply with present demand Examination of present markets and the socioeconomic trends Forecast of tourism demand Matching supply with anticipated demand
Slide 6 - Demand Overcrowding and loss potential business Low occupancies Months Supply Fluctuating Demand Levels and Supply (Seasonality) Seasonality can be reduced through either price differentials or multiple use © John Wiley & Sons, Inc, 2009