Tourism Supply

Tourism Supply

Travel and tourism products are always supply by producer always think about supply. It means that how much to supply? How many to supply? When to supply? Where to supply? To whom supply? the required number of goods must supply in the market. This types of the situation must do by management. This concept is called decision supply.

Decisions to supply are determined by the various factors. Some of the determine factors of supply are listed below:

1. Price of the tourism product
2. Price of factors of production
3. State of technology
4. Price of the related goods
5. Goal of producers
6. Number of sellers
7. Income of Tourist
8. Government Policy
9. Transportation and Communication Facilities

Explanations:

1. The price of the Tourism Products:The price of the tourism products plays very important role in the supply of tourism products. If the price of a tourism product will decrease then the number of a supply will decrease and if the price of tourism products will increase then the quantity of supply will also increase, therefore, both the price and the quantity of supply are vise-verse. It is one of the important determine factors for the decision to supply of tourism products.
2. The price of Factors of Products:Before knowing about the price factors of production we must know about the factors of products which means all the raw materials or materials used for the production process. If the factors of are not available then it will be impossible for the production of any product. In tourism, if the price of the factors of production will become low then the supply will increase but if the price of the factors of production becomes high then the supply will decrease. Therefore, the price of factors of production is also one of the important determine factors for the decision to supply of a tourism product.
3. State of Technology:For a better production and to supply those better product there must be an availability of an advanced technology. It is also one of the important determine factors for the supply of tourism products. If there will be a state of an advanced technology then the supply of tourism products will increase but if the state of an advanced technology will not be available then the supply of tourism products will decrease. Therefore, there is a vice-versa relationship between a state of technology and the supply of tourism/tourism products.
4. The price of the Related Goods:In every market, there is a state of a competition between the sellers. In tourism market, the price of the related goods/products plays an important on affecting the price of each other. If the price of the related goods will increase in the market then the supply of tourism products will also increase who has produced the related goods but if the price of the related goods/products will decrease then the supply of a tourism goods/products will also decrease. Therefore, it is also a determining factor for the supply of tourism products.
5. Goals of Producers:In tourism market, the goals of producers also play an important role in the supply of tourism products. If the goal of the producer is to maximize the profit then in this kind of situation the supply for a tourism product will decrease but if the goal of a producer is to maximize the sale then in this kind of situation the supply of tourism product will increase. Therefore, it is also a determining factor for the supply of tourism products.
6. Numbers of Sellers:This is the stage of a competition. There are competitions everywhere for everything in this world in this century. In a tourism market/industry there are huge competitions for the better and high number selling and if the number of the seller increase in the tourism market then the producer will feel unnecessary competition and they will decrease the supply number, therefore, the supply for tourism demand will decrease but if the number of the seller will be in a medium number or as per the demand of the market then the producer might feel to supply because they won’t feel like there is an unnecessary competition. Therefore, it is also one of the determine factor of tourism supply.
7. Income of the tourist:In a tourism, a market tourist is the consumers of the produced products of the tourism market. Therefore, an income of the consumer plays an important role in the supply of tourism products. If an income of the tourist will increase then the tourist who is the consumer of the product will demand more and in this way the number of the supply of tourism products will increase but if an income of the tourist will decrease then the demand for the products will also decrease and it will decrease the number of the supply as well. There is a vice-versa between an income of the tourist and supply of the products.
8. Government Tax Policy:In every, there is a policy of government tax in every product and in every field. Therefore, the government tax policy also effects on the supply of the tourism products. If the tax will increase then the tourism products supply will decrease and if the tax will decrease the producer can supply more tourism products.
9. Transportation and Communication Facilities:If the facilities of transportation and communication will increase in the market then the number of the supply of a tourism product will also increase as it will be easy to supply. There both of it has a vice-versa relationship.

References:

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