Ch. 12- Tourism Components & Supply

Infrastructure

=Of paramount importance to successful tourism =Water, transportation, electricity, health care, etc.

Supply of Accommodations

Lodging comes in many forms aimed at satisfying the needs of the market. The range of supply in the marketplace is vast. From the tourist's standpoint, the primary type is the destination resort hotel situated in attractive surroundings and usually accompanied by a large mix of services, including entertainment and recreational activities for the travelers and vacationer. Another major type is the commercial hotel, usually a downtown structure, located conveniently for the business traveler and vacationer. However, while important, these types are just the beginning of the supply picture. We also have boutique, all-suite, extended stay, conference, convention, motel, condominium, timeshare, bed and breakfast, inn, gite (a French home available for rent), cabin, cottage, hostel, pension, farm stay, campground, apartment, and tent accommodation to mention a number. We also have cruise ships that have become floating resorts. Many resorts are designed especially to accommodate special activities such as gaming, golf, tennis, skiing, and spas. There are also unique accommodations such as the seasonal ice hotels in Canada, Sweden, and Finland. The demand for accommodations varies according to the price that guests are willing to pay, services required, and similar considerations. Consequently, we have luxury, upscale, mid-price, economy, and budget market price segments to appeal to travelers. In the United States, Smith Travel Research (STR) defines these as follows: & Luxury—highest 15 percent average room rates & Upscale —next highest 15 percent average room rates & Mid-price—next 30 percent average room rates & Economy—next 20 percent average room rates & Budget —lowest 20 percent average room rates Because consumers seek different levels of service, there are full-service accommodations that offer restaurants, lounge facilities, meeting space, bell service, and room service. These are typically mid-price, upscale, or luxury hotels. Competing with them are limited-service hotels that have rooms- only operations or offer very few other services or amenities. These operations are in the economy or budget grouping. Many successful tourism areas have no multistoried, expensive, contemporary- looking hotels. For example, bungalow-type accommodations constructed with native materials, built to modern standards of comfort and safety, and kept immaculately clean are acceptable to a large segment of the market. Condominiums: Individual buyers of condominium units typically use the apartment for their own enjoyment, or they rent it to tourists for all or part of the year. This form of accommodation has become increasingly important in ski and beach destinations, and in some resort areas it constitutes considerable competition to the resort hotels. Real estate management firms often manage such apartments or groups of condos within a building or complex and thus serve as agents for the owners. They rent the condos as managers of the group, charging a fee for this service to the absent owner. Such arrangements can be made through a local travel agent in the prospective traveler's home city. The agent will book the reservation through the real estate management firm. Timesharing: Timesharing is a technique for the multiple ownership and/or use of resort and recreational properties. Timesharing has been applied to hotels, motels, condominiums, townhouses, single-family detached homes, campgrounds, and even boats and yachts. It involves both new construction and conversion of existing structures, along with properties devoted solely to timesharing and projects that integrate timesharing and non-timesharing properties. While most programs may be classified as either ownership or non-ownership (right to use), there are wide variations in program and legal format. The attraction of timesharing is simple: It permits purchasers to own or have occupancy rights at a resort accommodation for a period of time each year for a fraction of the purchasing price of the entire unit. Timeshare owners pay for exactly what they plan on using, and when they leave they don't have to think about where they'll be vacationing next year. Another option or advantage of timesharing is the exchange program. The exchange system affords vacation flexibility by allowing owners to trade or swap their timeshares for other locations and times. Finally, a well-designed timeshare program can be a hedge against inflation in resort accommodations. The benefits of timesharing are substantially borne out by the high degree of consumer satisfaction it has achieved. In a survey of approximately 10,000 timeshare buyers, conducted by the National Timesharing Council, 86.3 percent of the respondents said they were ''very satisfied'' or ''satisfied'' with their purchase. About 40 percent indicated that they were interested in purchasing additional timeshares. Hotel Classification: Hotels are classified using a number of different systems. Then, too, many tourist countries have no classification system whatsoever. Many in the industry prefer the five-star rating system, which grades hotels according to specific criteria (usually by the national tourist organization) from the highest (five stars) to the most modest accommodations (one star) suitable for travelers. Countries such as Spain also classify non-hotel accommodations, such as pensions. Criteria used for star ratings are public rooms, bathrooms, climatization, telephone, bar, dining rooms, and other characteristics. The Burj Al Arab hotel in Dubai, United Arab Emirates, consistently voted the world's most luxurious hotel, claims it is a seven-star property. Other classifications are deluxe, superior, and good; or super deluxe, and first-class reasonable. Still another classification is A, B, C, D, or E. Because many classification schemes are confusing or not useful, a uniform worldwide classification truly indicative of the grades of hotels in any country would be a real plus to tourism. Of course, differences in general standards of development in various countries would be understood. A five-star hotel in a highly developed country would likely be more deluxe than would a five-star hotel in a less developed area.

Entertainment, Recreation, and Other Activities

The recreation and other activities engaged in by tourists at their destination are a major supply component of tourism. Thus, considerable thought and effort should be devoted to the type of activities that visitors are likely to enjoy.

Task Analysis

The procedure used in matching supply with demand is called a task analysis. Suggested steps are as follows: 1. Identification of the present demand a. By mode of transportation and by seasons of the year b. For various forms of tourism such as activities, attendance at attractions, and similar categories c. For special events such as conventions, celebrations, fairs d. Group and tour visitors e. Family and individual visitors f. Business visitors 2. A quantitative and qualitative inventory of the existing supply 3. The adequacy of present supply with present demand a. Natural resources b. Infrastructure c. Transportation and equipment d. Hospitality and cultural resources 4. Examination of present markets and the socioeconomic trends a. Geographic market segmentation and orientation b. Demographic market segmentation and orientation i. Population age, sex, occupation, family life stages, income, and similar data ii. Leisure time and work patterns c. Psychographic market segmentation i. Motivations, interests, hobbies, employment orientation, skills, professional interests ii. Propensity to travel, responsiveness to advertising 5. Forecast of tourism demand a. Computer systems simulation method b. Trend analysis c. Simple regression —linear least squares d. Multiple regression —linear least squares e. Executive judgment or Delphi method 6. Matching supply with anticipated demand a. If adequate, no further action necessary b. If inadequate, inauguration of planning and development procedures To perform the task analysis,certain skills are required, with statistical research techniques employed to identify and quantify the current demand. Suggestions for doing this are provided in Chapter 13. When making a quantitative and qualitative inventory of the existing supply, the aid of specialists and experts is usually needed. For example, the adequacy of the current supply in relation to current demand requires the work of tourism specialists such as travel agents, tour company and hotel executives, tourism promotion people, ground operators (companies that provide baggage transfers,taxi services, local tours, and similar services), shopkeepers, and perhaps a sample of the tourists themselves. Examining the current markets and the socioeconomic trends that will affect future markets requires specialized market research activities. These should include determination of market characteristics, development of market potentials, market share analysis, sales analysis, competitive destination studies, potentials of the existing and possibly new markets, short-range forecasting, and studies of travel business trends. A number of sophisticated techniques are now available. The engagement of a reputable market research firm is one way to obtain this information. Forecasting tourism demand is a perilous business. However, a well-structured statistical analysis, coupled with executive judgment, is most likely the best approach to this difficult problem. See Chapter 13 for several methods for accomplishing this. Finally, matching supply with the anticipated demand must be done by knowledgeable planners. A tourism development plan within the master plan is recommended. Supply items are essentially rigid. They are elaborate and expensive and, thus, cannot be expanded rapidly. An exception would be transportation equipment. Additional planes, buses, train cars, or automobiles could be assembled quite rapidly to meet an unusually high demand situation.

Supply Components

Tourism supply components are classified into four broad categories for discussion in this chapter. 1. Natural resources and environment. This category constitutes the fundamental measure of supply—the natural resources that any area has available for the use and enjoyment of visitors. Basic elements in this category include air and climate, physiography of the region, land forms, terrain, flora, fauna, bodies of water, beaches, natural beauty, and water supply for drinking, sanitation, and similar uses. 2. Built environment. This includes the infrastructure and superstructure discussed in Chapter 1. This component has been developed within or upon the natural environment. One of the most basic elements of the built environment is the infrastructure of the region, which consists of all underground and surface developmental construction, such as water supply systems, sewage disposal systems, gas lines, electrical lines, drainage systems, roads, communications networks, and many commercial facilities. The tourism superstructure includes facilities constructed primarily to support visitation and visitor activities. Primary examples are airports, railroads, roads, drives, parking lots, parks, marinas and dock facilities, bus and train station facilities, resorts, hotels, motels, restaurants, shopping centers, places of entertainment, museums, stores, and similar structures. For the most part, the operating sectors of the industry are part of the built environment and provide much of the superstructure or facilitate access to the physical supply. 3. Operating sectors. The operating sectors of the tourism industry represent what many of the general public perceive as ''tourism.'' First and foremost, the transportation sector, comprising airlines, cruise lines, motorcoach companies, taxis, limousines, automobiles, aerial tramways, and so on, typify the movement of people in travel (see Chapter 5). Because nothing happens until someone plans to leaves home, transportation is a critical component. Without transportation, the tourist would be unable to reach and enjoy the natural and built environment. Tourists need a place to stay and be fed, so the accommodation sector and the food service sector are important supply components (see Chapter 6). Attractions are the reason people travel. Without attractions (see Chapter 8) drawing tourists to destinations, there would be little need for all other tourism services such as transportation, lodging, food, distribution, and so on. 4. Spirit of hospitality and cultural resources. Pervading all of the foregoing physical elements of the built infrastructure and superstructures is the social foundation of the destination—its culture, which consists of the language, food, customs, and religions of the residents of the region, as well as their work-and leisure-related behaviors.Itisthepeopleandtheculturalwealthofanareathatmake possible the successful hosting of tourists. Examples are the tourist business employees' welcoming aloha spirit in Hawaii, the attitude of the residents toward visitors, courtesy, friendliness, sincere interest, willingness to serve and to get better acquainted with visitors, and other manifestations of warmth and friendliness. In addition, the cultural resources of any area are included here: fine arts, literature, history, music, dramatic art, dancing, shopping, sports, and other activities. A wide range of tourist resources is created by combining cultural resources. Such examples would be sports events and facilities, traditional or national festivals, games, and pageants.

Built Environment

=Created by Humans =Broken down into an area's infrastructure and superstructure Another supply component is the built environment that has been created by humans. It includes the infrastructure and superstructure of the destination.

Categories of Tourism Supply Components

=Natural Resources and Environment =Built Environment =Operating Sectors =Spirit of Hospitality and Cultural Resources

Natural Resources

=Natural components of a destination such as: (Water, air, climate, physiography, land forms, 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? Many combinations of factors relating to natural resources can create environments attractive to tourism development. Thus, no general statements can be formulated. Probably the most noticeable factors are the pronounced seasonal variations of temperature zones and the changes in demand for recreational use of such areas. To even out demand, the more multiple-use possibilities, the better. For example, it is more desirable that an area be used for golf, riding, fishing, hunting, snow skiing, snowmobiling, mushroom hunting, sailing and other water sports, nature study, and artistic appreciation such as painting and photography than for hunting alone. The wider the appeal throughout the year, the greater the likelihood of success. Another highly important consideration is that of location. As a rule, the closer an area is to its likely markets, the more desirable it is and the more likely to have a high demand. User-oriented areas (e.g., golf courses) should be close to their users. By contrast, an area of superb natural beauty, such as a U.S. national park, could be several thousand miles from major market areas and yet have very satisfactory levels of demand. Productivity of the natural resources of the area for tourism is a function of the application of labor and management. The amounts and proportions of these inputs will determine the quality and quantity of the output. The terrain, vegetation, and beaches of the natural resources will be affected by the intensity of use. Taking such concentrations of use under consideration and planning accordingly for permanent aesthetic appreciation will help to maintain the quality of the natural resources for the enjoyment of present and future users. The quality of the natural resources must be maintained to sustain tourism demand. Proper levels of quality must be considered when planning, and the maintenance of quality standards after construction is completed is absolutely necessary for continued satisfaction of the visitor. In fact, tourism is very sensitive to the quality of recreational use of natural resources, and unless high standards are maintained, a decrease in demand will inevitably result. Thus, ecological and environmental considerations are vital.

Superstructure

=Tourism facilities such as hotels, restaurants and attractions.

Types of Transportation

All factors concerning transportation should be considered in developing tourism, beginning with taxis, limousines, and bus service from the place of lodging to the departure terminals. Such services must be adequate and economical. Air: As described in Chapter 5, the airline industry dominates public intercity transportation systems, capturing over 92 percent of the common-carrier passenger mile market. Thus, planners looking to improve tourism must evaluate the adequacy of air transportation. Flight frequencies as well as size and type of aircraft are important. Air service from important origins for tourists is, of course, essential. Airport facilities must be adequate. Major problems frequently encountered are the accessibility to the airport, aircraft slots availability, and the passenger loading-unloading parking space sequence. Newly built airports seem to have solved these to a considerable degree and have also reduced walking distances because of design improvements. There is also frequent shuttle bus service for interline passengers. Motorcoach: Motorcoaches intended for tour use should have large windows, air-conditioning, comfortable seats, and restroom facilities. Springs or other suspension systems in the coaches should be designed so that the joggling of passengers is kept to a minimum or eliminated. Multilingual guide service or multilingual tape recording facilities with earphones for each passenger are useful in communities or on tours where an interpretation of the points of interest is desirable. Personnel assigned to buses should be selected for suitable temperament, courtesy, and spirit of hospitality. For example, if a bus is staffed by a driver and an interpreter, the interpreter can assist passengers on and off the bus as well as inform them of local environment, particularly attractions of interest.Interpreters or guides should be trained and educated for this duty.Too often, the interpretation of points of interest is superficial (and inaccurate). A program of certification for guides should be conducted by a special school or provided in the curriculum of an institution of higher learning. In such a program, competent instructors should educate potential guides in the history, archaeology, ethnology, culture, and economic system of the area in which the tour is being conducted. Competency in the various languages commonly encountered with tourists is also an essential qualification. Ship and Boat:Water travel is a major part of tourism and contributes considerably to the development of travel on land and by air. Forms of water travel include ocean cruise ships, river cruises, passenger travel on freighters, ferryboats, river stern wheeler, chartered boats and yachts, houseboats, and smaller family boats and canoes. Cruise ships and other large vessels need convenient piers and good land-air transportation connections for their passengers. Smaller boats need docks and loading-unloading ramps for easy accessibility to water. Charter boat operators must have reliable weather forecasting and ready availability of needed supplies and repair services. Where rental canoes are popular, delivery and pickup services are often necessary, as are campgrounds in wilderness areas where canoeists can stay overnight. Persons owning their own boats appreciate good public-access points for launching. Rail: Travelers worldwide often prefer rail travel, particularly because of its safety record and the convenience and comfort of viewing the scenery from an air-conditioned car. Also, the frequent schedules of trains in many countries appeal to travelers. The recent advent of high-speed trains further enhances their appeal. Some trains have stewards or hosts, which travelers seem to appreciate. Adequate taxi, limousine, or bus service from the railroad station to hotels and downtown points is essential. Such transportation service must be frequent enough to get the traveler to the destination promptly. Conversely, the traveler should be able to get to the railroad station in ample time to make connections with the train. Taxis: Adequate taxi and limousine services are essential in a tourist area. Ideally, taxis should have removable and washable seat covers so the car always presents a clean appearance to the passenger. Also, to make the best impression, the taxi driver should dismount from the driver's seat and open the door for the passenger. He or she also should assist in stowing the luggage in the trunk or elsewhere in the cab and be courteous at all times. Taxi drivers who are multilingual are highly desirable and, in fact, essential if tourism is to be an important element of the economy of the location. Training taxi drivers in foreign languages should be no more difficult than training tourist guides or front-desk clerks. Where taxi drivers have no foreign language ability, hotels may provide written directions for the tourist to give to the driver concerning the destination and the return to the hotel at the end of the excursion.

Native Marketplaces

Another shopping experience concerns the local market or so-called native marketplace. Such areas are rich in ethnicity and have much local color. They are popular with visitors, even though the visitor may not understand the language and may have trouble making a purchase. Although many persons in native shopping places do not understand any foreign languages, the sign language of bargaining is fairly universal.

Summary

Certain broad classifications of supply components must be provided by any area that is attractive to tourists. The components consist of natural resources, the built environment, operating sectors, and the spirit of hospitality and cultural resources. These factors may be combined in many ways to create the environment, facilities, and services that the planners hope will attract and please the customers. Creation of supply components necessarily involves financing —a critical element. Ideally, all the supply components perfectly match the demand at any given time. However, this is unrealistic. Too much supply means unused facilities, which is uneconomic. Too little supply results in overcrowding with resultant depreciation of the vacation experience or lost sales, which could have contributed significantly to the bottom line profits. A moderate supply level is recommended. Supply can be matched with demand using a mathematical formula. When confronted with a supply problem, the proper level of supply to meet the anticipated demand can be estimated by using the formula provided in this chapter. The process is refined and completed by a six-step task analysis.

Introduction

Considering that tourism is a composite of activities, services, and industries that deliver a travel experience, it is important to identify and categorize its supply components. The quality and quantity of these determine tourism's success in any area. In Chapter 1 (Figure 1.2) you observed that tourism was a complex phenomenon —the composite of activities, policies, services, and industries involving many players that deliver the travel experience. The purpose of this chapter is to look at just one segment of the tourism phenomenon by examining the physical supply side of tourism. It is important for a tourist area to identify and categorize its supply components and compare them with the competition because the quality and quantity of supply components are a critical factor in determining tourism's success. Figure 12.1 extracts the supply components from Figure 1.2 and provides the basis for discussion in this chapter. However, it is important to recognize that no segment operates in a vacuum and that supply is interrelated to all other aspects of tourism. It must be matched with demand (see Chapter 13). It is also an important part of policy considerations (see Chapter 15).

Special Events

Entertainment can be provided very effectively as a special promotional event to attract visitors during an off-season. One of the best examples of this is Aloha Festivals, which was inaugurated in Hawaii as Aloha Week in the mid-1940s to bolster tourist traffic in the fall. This festival is enthusiastically supported by local tourism interests and is very successful in attracting tourists. Musicians, dancers, exhibits, floral displays, and special programs are assembled and give the visitor an unusual opportunity to enjoy the beauty and excitement of cultural expression that this state offers. Once created, such events become annual and typically grow in visitors and importance. Expositions and festivals are very attractive to visitors and deserve adequate promotion.

Accommodations

For successful tourism, accommodations must be available in sufficient quantity to match the demand of the travelers who arrive at the destination. Given access to the destination, accommodations should precede any other type of development; their importance cannot be overemphasized. Lodging facilities vary tremendously in their physical facilities, level of maintenance and cleanliness, and services provided. Unless all of these factors are at satisfactory levels, tourism cannot succeed. The lodging must provide the physical facilities, price ranges, locations, and services that meet the expectations, wants, and needs of the travelers. Should the quality of facilities and services drop, demand will fall off —a serious blow to the tourism industry in the area.

Sports

Golf and sports —such as tennis, surfing, swimming, mountain climbing, skiing, hunting, fishing, hiking, prospecting, or any other outdoor sports activity —require properly publicized facilities and services. Guides, equipment, charter boats, and other services needed to enjoy these sports must be readily available at fair prices. Convenience and accessibility are key factors in this type of entertainment.

Auto Traveler Services

In developed countries, automobile transportation is most common. As the economy of a country develops, the usual pattern progresses from walking, to using horses or other working animals, to bicycles, to motorcycles, and finally to small and then larger automobiles, augmented by public transport. Roads should be hard, all-weather surfaced, properly graded and drained, and built to international standards for safe use. Small, inadequate roads will only have to be torn up and replaced with better and more adequate systems. Auxiliary services, such as gasoline stations, roadside eating facilities, motels, roadside parks, roadside picnic facilities, rest parks that have toilet facilities, scenic turnouts, marked points of interest within easy access of the road, and auto repair and service facilities, are all needed for successful auto tourism. The number and spacing of essential services depend on the nature of the area, but a spacing of about one hour's driving distance is recommended.

Operating Sectors

It is the operating sectors that deliver the tourism experience and tend to be viewed by the media, public, and visitors as the ''tourism industry.'' It is the task of the operating sectors to develop and deliver tourism services and experiences with a spirit of hospitality so they will be memorable.

Museums and Art Galleries

Museums and art galleries are another major attraction for tourists. They provide some of the highlights in many of the world's most important tourist destinations, such as New York; Washington, D.C.; Chicago; Paris; London; Madrid; Rome; Singapore; Tokyo; Buenos Aires; Mexico City; and many others. The quality and magnitude of these institutions are an important consideration for attracting and satisfying tourists.

Prices and Unethical Practices

One of the most important considerations in shopping is the pricing of the goods. Probably resented more than any other single factor of tourism is higher prices for tourists than for local residents. Because many shoppers compare prices from one store to another, prices should be as consistent as possible and in line with costs. If the shopkeeper resorts to unethical methods of selling, such as deception, selling imitation goods or products of inferior quality, refusing to exchange damaged goods, or shortchanging or short weighting, the seller is hurting the tourist trade and should be prosecuted by local authorities.

Activities Tourists Enjoy Most

One of the most important functions of a tourism promotion organization is to ascertain what activities visitors would enjoy while in their destination. When substantial data are accumulated, the findings should be reported to those who accommodate and entertain. Thus, they are guided into more successful methods and programs. Table 12.1 shows some of tourists' favorite things. The best method of obtaining this information is by interviewing both the visitors and their hosts using scientific sampling methods. Careful recording and thorough analysis of these data will result in findings of real value. When those responsible for attracting and hosting visitors provide the requested entertainment activities, the community will likely be a preferred destination area. There is no better advertising than a satisfied visitor (see Chapter 18 on research).

Matching Supply with Demand

Providing an ample tourism supply to meet anticipated demand is a challenge for the tourism planner or manager. Supply functions are always constrained by demand. The following formula can be used to calculate the number of hotel rooms (or other types of lodging) required: Room demand/night(100% occupancy) = No: tourists X % Staying in hotels X Average stay _____________________________ 365 X Average number of persons per room R = T x P x L /// S x N where R = room demand per night, at 100 percent occupancy T = number of tourists P = percentage staying in hotels L = average length of stay S = number of days per year open for business N = average number of persons per room (obtained from hoteliers); total number of guest nights divided by the number of guests, during any period of time O = hotel occupancy used for estimating; for 70 percent occupancy, divide number of rooms needed at 100 percent occupancy by 70 percent Infrastructure factors in supply will be determined largely by the number of guest rooms as well as restaurants, stores, and similar installations. Infrastructure appropriate to the size of the development is an engineering problem and is readily ascertained as the plans are developed. Transportation equipment is generally supplied by commercial firms as well as publicly owned or quasi-public transportation facilities and services. Regarding hospitality resources, the recruiting and training of staff for the various elements of supply is a critical one. The traveler generally enjoys being served by unsophisticated local persons who have had proper training and possess a hospitable attitude. Such persons may be recruited through government and private employment agencies as well as through direct advertisement to the public. Newly hired employees must be indoctrinated in the importance of tourism, how it affects their own personal welfare as well as that of their community, the importance of proper service to the visitors, and how their economic welfare is closely related to their performance. Museums, art exhibits, festivals, craft shows, and similar cultural resources are usually created by community cooperation and the willing assistance of talented people. A chamber of commerce or tourism body is the best mechanism for organizing the creation of these hospitality resources.

Shopkeepers and Clerks

Shopkeepers and clerks themselves should be amiable and courteous. Furthermore, the shopkeeper should not be so anxious to close a sale that the tourist is pressured. A tourist who is courteously served in a store and who makes a good purchase will tell friends back home. Thus, future business can be developed in this way. Salespeople should also take the time to explain the value of the item and relate something of its history that would be otherwise unknown to the purchaser. Of course, this information should be accurate and truthful. Salespersons must have sufficient language ability to conduct conversations with the visitors. The most common language is English, but a knowledge of other languages that are commonly spoken by tourists who visit a particular area is a necessary qualification of clerks who serve these visitors. Salespersons must be patient and understanding and try to help the prospective purchaser cheerfully at all times.

Shopping

Shopping is an important tourist activity and thus an essential element in tourism supply because it affects the success of the tourist destination area. The most important single element in shopping is the authenticity of the products offered for sale as they relate to the local area. A product that is supposedly a ''native handicraft'' should be that. If it is an import, the purchaser may be disappointed if he or she expected an authentic, locally made item. Tourists who are shopping are particularly interested in handicraft items that are typical or indigenous to the particular locale or region. Of course, they are also interested in essential items such as toothpaste, but our discussion here is confined to purchases that tourists make as souvenirs or special gifts. Tourists can be encouraged to spend more money on shopping if displays are high quality, imaginative, and attractive. Hotels are excellent places for shops, and if these shops are exquisitely furnished and stocked, the tourist is attracted to the shop and is more likely to make purchases.

SPIRIT OF HOSPITALITY AND CULTURAL RESOURCES

The development of hospitality resources is perhaps the most important factor in tourism. The finest physical facilities will be worthless if the tourist feels unwelcome. For example, we suggest having a welcoming sign and a special reception area for visitors at airports and other entry points. A favorable attitude toward the visitor can be created through programs of public information and propaganda and initial welcoming (often by local volunteers). In this regard, public relations and publicity designed to convince local citizens of the importance of tourism are helpful. Courses at tourist hospitality schools for all persons who have direct contact with visitors are useful. In these schools, store clerks, gasoline station attendants, hotel clerks, and other persons who are directly in contact with the visitor are given indoctrination on the importance of tourism to their community and are taught the location of important points of interest. Other parts of the program include the importance of appearance and good grooming, greeting of visitors, providing information, and being helpful, gracious, friendly, and cooperative. Cultural programs such as ''Meet the Danes'' (home visitation arrangements) help greatly in this respect. Adequate training of personnel by tourist hospitality businesses can also create the desired hospitable attitude.

Peaks and Valleys

The foregoing discussion dealt with matching supply and demand in a long-run context. Another important consideration is that of fluctuations in demand in the short run (seasonality) and the resulting peaks and valleys of demand This is a vexing problem. The reason for this is simply that tourism is a service,and services cannot be placed in inventory. If a 400- room hotel rents(sells)350 rooms on a particular night,it cannot place the other 50 rooms in inventory for sale the following night.Regardless of how many rooms went unoccupied in the past,a 400-room property can rent no more than 400 rooms on any given night. By way of contrast, consider the case of some tangible good, say, television sets. If some television sets are not sold in one month, the storekeeper can keep them in inventory and sell them the next month. Of course, the storage charges, interest payments, and other expenses incurred in inventorying a particular item reduce the item's economic value. But in tourism, the economic value of unsold items, such as the 50 hotel rooms mentioned, is exactly zero. Thus, it should be clear that while, in most cases, firms selling tangible goods can deal with demand fluctuation through the inventory process, this option is not available to firms providing travel services. In the travel industry,an effort must be made to reduce seasonal fluctuations as much as possible.Because of the high economic cost involved, no effort should be spared in attempting to limit the amount of seasonal variations in demand. Nor can the problem be dealt with by simply selecting an appropriate supply level. The following charts illustrate various supply situations associated with fluctuating demand levels. Suppose that the demand for a particular destination exhibits the seasonal pattern depicted in Figure 12.2a. If no action is taken to ''level off'' the demand, then three possible levels of supply can be considered. In Figure 12.2b, the level of supply is provided so that demand in the peak season is fully satisfied. This implies that tourists coming to the destination in the peak season will be accommodated comfortably and without overcrowding. However, during the slack season, the destination will suffer from extremely low occupancy levels, with obvious implications for profitability. If, on the other hand, the supply is set at a low level (Figure 12.2c), the facilities during the peak season will be overcrowded enough to detract from the tourist experience.Visitor satisfaction will be at a low level,and the future of such a resort area will be doubtful. Last, if supply is set in between the level of demand during the peak season and the off-season (Figure 12.2d), the problems are somewhat mitigated. Nevertheless, low occupancy will result during low demand periods,and overcrowding will result in peak periods; neither is desirable.To maximize customer satisfaction and to utilize the facilities year-round,some action must be taken. Two strategies for dealing with this situation are as follows: 1. Multiple use. This involves supplementing peak-season attractions of a destination with other attractions that would create demand for travel to that destination during off-season periods. In effect,the peak season for the destination is extended.Examples of such efforts abound.In Michigan, for example, the current demand for off-season travel (during the fall, winter, and spring) has been successfully increased and sustained at much higher levels than in the past.While Michigan was once viewed primarily as a summer destination,the development and promotion of winter sports in resort areas, foliage tours, and superb salmon fishing in the fall and spring have created new markets for these off-season periods.Festivals, special celebrations,conventions,and sports activities sponsored and promoted during off-seasons are other examples of multiple-use strategies. 2. Price differential. This technique, in contrast with the multiple-use strategy, creates new markets for the off-season periods by employing price differentials as a strong tool to shift demand away from the peak season in favor of the off-season.Florida and destinations in the Caribbean have used this strategy rather effectively. The prices in these destinations during the off-seasons are considerably less than during the peak seasons. In addition, the development of promotional fares by airlines and other carriers, along with the expansion of the number, timing, and variety of price-discounted tours, have helped to stimulate demand in the off-season. Increased efficiency and effectiveness of promotional campaigns and better marketing also tend to offset the traditional seasonal patterns of demand. Yield management techniques used in the airline and lodging industries are very effective in using price differentials to match supply and demand. In addition to these strategies implemented by destination areas, some trends in the employment and leisure patterns of Western societies contribute further to the leveling of demand between off- seasons and peak seasons. The staggering of holidays, the increasing popularity of three-day weekends with a holiday on Friday or Monday, and the splitting of vacations between various seasons of the year all lend themselves to leveling the demand for travel. Once the demand is evened out, the destination is then able to maximize customer satisfaction during the peak season and during the off-season. Also, facilities are utilized at a considerably higher level than previously. The importance of boosting off- season demand and, therefore, the utilization level is further underscored by the fact that in most tourist service businesses, fixed costs are quite high in relation to operating costs. This implies that increasing total yearly revenue, even modestly, produces proportionally larger profits. There may be some softening of demand during the peak season due to those who might switch to the off-season because of the lower prices (see Figure 12.3). However, this is believed to be minimal. When off-season demand is boosted by the multiple-use strategy, peak-season demand is unaffected. Therefore, overall demand for the entire year will be substantially higher (see Figure 12.4).

Infrastructure and Superstructure

The ground and service installations described as infrastructure are of paramount importance to successful tourism. These installations must be adequate. For example, the diameters of the pipes in various utility systems should be ample for any future increase in use. Electrical installations, water supply systems, communications installations, waste disposal, and similar service facilities should be planned with a long-term viewpoint so that they can accommodate future expansion. Airport runways should be built to adequate standards for use by the newest group of jets so that future costly modifications will not be necessary. Hotel or lodging structures are among the most important parts of the superstructure. The goal should be to produce an architectural design and quality of construction that will result in a distinctive permanent environment. A boxlike hotel typical of any modern city is not considered appropriate for a seaside resort dominated by palms and other tropical vegetation, nor is it likely to attract tourists. A tourist is often more attracted by a facility designed in conformance with local architecture as a part of the local landscape than by the modernistic hotel that might be found at home. Attention must be given to this subject because people often travel to immerse themselves in an environment totally different from their own. Modern amenities such as air-conditioning, central heating, and plumbing, however, should be used in buildings otherwise characteristic of a particular region. Interior design should also be stimulating and attractive. Lodging structures need local decor and atmosphere as well as comfort. To minimize the expense of obsolescence, high-quality materials and furnishings and first-rate maintenance are necessary. Infrastructure is expensive and requires considerable time to construct.

Entertainment

The most satisfying entertainment for visitors is that which is native to the area. In any country, there are expressions of the culture in the music, dance, drama, poetry, literature, motion pictures, television, ceremonies, festivals, exhibits, shows, meetings, food and beverage services, and tours (or local excursions) that portray the best the area has to offer. Not all forms of entertainment can be successfully described or illustrated in tourist promotional literature. One of the best ways to bring these entertainment opportunities to the attention of the visitor is with a social director whose desk is in the lobby of hotels, resorts, and other forms of accommodation so that the visitor can readily find out what is going on and make arrangements to attend. In European hotels, this desk is traditionally staffed by the concierge, who provides an amazing amount of information concerning all types of entertainment and activities available. An appropriate substitute is a knowledgeable person at the front desk to provide information concerning recreation and entertainment. Bulletin board displays or posters and verbal announcements of outstanding events made in the dining room or other areas where guests gather can also provide entertainment information. A local newspaper that features articles concerning everyday as well as special entertainment events and opportunities is a valuable method of distributing information. These newspapers or bulletins are provided in popular vacation destination areas such as Miami Beach and Honolulu, but the idea is not widespread. In metropolitan centers, a weekly magazine is normally provided to hotel guests to give current information on entertainment, recreational, and cultural opportunities in the city. The Internet is another information source as hotel Web sites feature and provide links to local attractions and entertainment.