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.

INCOME & PRICE

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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 accounted 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

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