Essay on The Demand For Tourism Products

Essay on The Demand For Tourism Products

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time and is therefore perishable. All hotels with a fixed number of rooms and transport operators with a fixed number of seats (railway, air carrier, bus companies, etc.) face the challenge of matching supply to the available demand. Excess capacity that is not sold on a particular day is lost and can never be recovered.
The next character of tourism is the seasonality of tourism demand. Demand for tourism products is characterized by an uneven temporal distribution. Annually, there are weeks and months with a great demand and others with a low demand. This uneven distribution differs from country to country, and from destination to destination. For instance, some regions have a peak season of a maximum of six weeks, when for other destinations high season lasts several months.
The tourism industry should also consider human resources. The interaction between the staff and the customer determines the perception of quality. Unlike tangible products where the customer buys certain features, production quality, durability etc, the holiday quality results from personal interactions starting with the information and booking process over the stay up to the journey home. Indeed, the attitude of the staff (e.g. friendliness, helpfulness) is often a vital element in delivering tourism products.
Furthermore, tourism quality often depends on factors beyond the control of the seller. For example, during a holiday in Bali, tourists may receive excellent hotel services. However, they could encounter a rude and careless driver during a transfer to other areas. This fact also affects how tourism is marketed. Unlike other service marketing situations, government and private sectors typically have very little control over the different m...


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...onomic development and to realize Indonesian political and economic sovereignty by stepping up investments in order to turn economic potentials into real economic strength by use of funds derived from both home and abroad. The enactment of this law has led to the haphazard opening of various sectors to foreign investors. For example, in commercial presence on tourism, this law provides a list of sectors on tourism closed to investment and those that are open to investment under certain conditions. Simply speaking, only gambling and casinos are categorized as a business field closed to investment in Indonesia. For other sectors, foreign service providers can operate and provide tourism services through capital ownership from 49%, 51%, 67%, 70% to 100%. Besides, this law allowed long-term land rights for foreigners in conflict with the constitution of Indonesia.

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