The Tourism Product

Tourism can be viewed as being a ‘product’.

Tourism products include types of accommodation, attractions, activities, tours, and so on, made available by various different suppliers.

Do not confuse the term tourism product with tourism destination. A tourist destination, such as Christchurch, is a place where many different tourist products may be purchased.

Consumer Perspective Of The Tourism Product

We will first study the tourism product from a consumer (i.e. a tourist) perspective.

According to Collier,

The tourism product includes:

• Journey to and from the destination.
• Accommodation and travel while at the destination.
• Everything purchased, including food & beverage, souvenirs, amusement, and entertainment.
• Experiences such as sounds, smells, and interactions with the local population.
• Attractions, activities, amenities, accessibility
• Ancillary services: This refers to all the 'extras' that the tourist may need when going on holiday. They include: travel insurance, foreign exchange, airport parking, equipment hire, passport and visa services.

Each of the above components is a sub-product.

Although a consumer (i.e. a tourist) may buy any of the sub-products separately from various different suppliers or combine some sub-products to create a package holiday, ultimately the consumer sees the tourism product as a total experience.

Also, it must be noted that a bad experience with one sub-product may affect a tourist’s impression of another sub-product and the overall opinion of the tourism product (we will come back to this shortly).

Although a consumer (i.e. a tourist) may buy any of the sub-products separately from various different suppliers, or combine some sub-products to create a package holiday, ultimately the consumer sees the tourism product as a total experience.

As you can see from the above diagram, an individual tourism product is made up of many components which are mainly service based in nature. Consequently, consumers come into contact with many different people during their holidays. People: the human element is very important in the delivery of the overall tourism product because if the tourist receives poor service in one or more areas it takes away from the overall appeal of a tourism product. Experiences and expectations are not directly purchased but will form part of the overall package. If one or two things go wrong, the visitor’s entire experience is tarnished, as the circle is broken.

The interaction with many different people can impact on the consumer’s overall opinion of the tourism product. “The more people that are involved, the greater the risk of something going wrong.” (Collier) There is a possibility that for one or more reasons the tourism product does not meet the consumer’s expectations. The overall satisfaction the consumer gains from a tourism product depends on the roles played by the service personnel, as well as the host population.

As with any service delivery, there is “only one chance to get it right”.

Characteristics Of The Tourism Product

We have said that tourism is a product. In marketing, the term product covers both physical goods, such as a bar of chocolate, and services, such as mowing a lawn. Therefore, we can say that tourism is a service. Services have unique characteristics which pose some challenges when it comes to the task of marketing. In his textbook, Tourism Industry Management, Collier describes these characteristics:

The fact that the tourism product is intangible means that you cannot “try before you buy”. Similarly, you cannot return a service if you are dissatisfied with it, something you can easily do with tangible products. This creates an element of risk for the consumer as he/she will most likely pay in advance for a tourism product and have no guarantee it will meet their expectations.

To reduce the risk and uncertainty associated with purchasing a tourism product a consumer will do two things. Firstly, he/she will seek word-of-mouth recommendations from family and friends. If this is not possible the consumer will have to trust the information sourced from a travel agent, i-site consultant, hotel receptionist, and so on. Secondly, the consumer will look for the physical (tangible) elements associated with the tourism product. This can include photos of the accommodation, the quality of the brochures and leaflets, even the food served, and the appearance of flight attendants on an airplane.

Intangibility:

Intangible is a word we use to describe something you cannot see, touch, or taste. It is something invisible that you experience.

The fact that the tourism product is intangible means that you cannot “try before you buy”. Similarly, you cannot return a service if you are dissatisfied with it, something you can easily do with tangible products. This creates an element of risk for the consumer as he/she will most likely pay in advance for a tourism product and have no guarantee it will meet their expectations.

The consumer buys an intangible product, something that is unable to be used until the time comes about when they travel. They buy in advance with an expectation to satisfy their wants and needs and the reason for such a trip. Where it mentions that the product is composite, it relates to the customer's perception that all events of experiences, expectations, people, and other services that they may use will also give the total experience. If a shopkeeper or salesperson is rude, then the total experience for the entire journey would have disrupted or spoilt their journey.

Perishability:

Perishable describes something that can lose its usefulness and value if not appropriately stored or transported, or if not used within a certain period. Services cannot be produced and physically stored today so that they can be used at some time in the future.

Many components of the tourism product are considered perishable, including food and beverage items, seats in the transportation sector, accommodation rooms, and rental cars parked in the rental company’s yard.

For example, when an aircraft takes off with 20 empty seats or a hotel has 15 unoccupied rooms for a given night, these products are considered perishable as they have not generated any revenue for that period, even though they may be available for future sale and generation of revenue.

Heterogeneity:

If something is heterogeneous it means it consists of a varied range of different parts. We have already said that the tourism product is made up of many parts (sub-products). Another word you could use is variability.

The tourism product is heterogeneous because many different suppliers are involved in supplying small pieces of the overall tourism product. This means it is very difficult to achieve a consistent level of service quality. Unlike physical products which can be manufactured on a production line and can be therefore all identical, no two service experiences will ever be the same.

For example, a tourist returning home from a holiday may have their positive memories of the entire holiday clouded by an encounter with an unfriendly flight crew.

Inseparability:

The production and consumption of tourist services happen at the same time; we cannot separate them.

For example, consider the case of a physical product such as a chocolate bar that is produced in a factory in the absence of the consumer one day but consumed weeks later. The chocolate bar can even be delivered to the consumer. This cannot happen with a service such as a tourism product. The tourism product is produced in the presence of the consumer. Also, it cannot be delivered to the consumer, the consumer must be taken to the tourism product.

Interrelationships

From a supplier point of view, the tourism product consists of three main elements. These are:

1. Access to the destination or product:
2. Amenities or facilities at the destination:
3. Attractions and activities at the destination:

The above three elements are interrelated.

The success and competitiveness of a tourism destination will depend on how well these components link together, to form a product that is demanded by tourists. Let's explore each one in more detail.

Accessibility

Access means getting near something or being able to use something. In a tourism context, it can mean:

The method of completing each of these is via transport.

Although some people will choose to visit a particular tourist destination because it is far away and secluded, most people will seek a destination that is easy to access. The accessibility of a destination depends on:

Getting Around The Destination

Once a tourist reaches a destination, he/she will no doubt want to travel around to do some sightseeing. Transportation within a destination can range from domestic air travel and ground travel such as rail and coach options, along with public transport such as a local bus, and a network of good quality roads with efficient signage for the tourists who wish to hire a car or campervan.

Ease Of Booking

The final consideration in the accessibility of a tourism destination is how easy is it to purchase the actual holiday and/or individual tourism products. Wholesalers, retailers, and other sales consultants play an important role here. In addition, over the years technological advances such as the internet have made it much easier for people to book trips and individual tourism products.

In general, how does accessibility affect the supply of tourism products?

Access is directly related to whether or not it is easy to supply Tourism Products to potential customers. Tourists will not go to a destination where access is not frequent and easy. Mount Cook, for example, being located in a mountainous and isolated area will make the supply of Tourism Products more difficult. Its location will have a direct impact on the attractions and activities offered.

Another example could be if a country’s transportation network is poor, in the sense that rural roads are in a bad state and often lack visible signposts.

Consequently, tourists get lost and become frustrated. The rail network serves most major cities only (which are usually not the actual major tourism destinations) and tickets can be expensive.

Amenities

Amenities are the basic facilities a destination has to offer to tourists. Sometimes referred to as the “pleasantness” of a place, they play an important role in shaping the visitor experience and making the visitor feel comfortable and secure.

Amenities include:

Infrastructure

These are basic facilities that are already in place at the destination to serve the local people. Infrastructure includes roads, electricity supply, water supply, sewerage, waste disposal, communication facilities, airports, harbours, and transportation networks.

Superstructure

This is developed once sufficient infrastructure is in place. It can be developed to serve the local people and/or to serve tourists. Superstructure includes accommodation, food and beverage, entertainment, shopping, and information services like travel agencies, car rental firms, and financial services like currency exchange offices, banks, and so on.

Tourists do not choose to visit a destination because of its amenities but they may choose not to visit the destination because of its lack of amenities. The quality of the amenities available is another consideration.

Interestingly, sometimes amenities can be attractions in the minds of some tourists. For example, many people travel to Singapore simply to visit shopping malls. Similarly, a tourist may visit a particular city to eat at a famous restaurant.

In general, how do the amenities in a destination affect the supply of the tourism product? Amenities depend on the availability of investment funds and a skilled human resource base. For example, although Aoraki/Mount Cook is a major natural attraction, the Mt Cook village has only limited amenities to service tourists due to a lack of investment in their development and restrictions placed on future development by DOC who control the region.

Amenities available in the area should suit the attractions and activities being supplied.

Attractions And Activities

As previously mentioned, activities are more active attractions, i.e. the tourist has to do some kind of physical activity. Examples of activities include bike/horse riding, tramping, bungy jumping, skiing, skydiving, and so on. The term ‘attraction’ covers both the reason why a person would visit a particular destination and also the specific places/things the tourist can see/do when they are at the destination. In addition, attractions can also include activities, which are active pursuits tourists can participate in once at the destination.

But if you're after something a little more sedate, why not relax in one of the natural thermal pools dotted throughout the country or sample the award-winning vino at one of New Zealand's many wineries?

The availability or lack of natural resources and attractions can directly affect supply. For example, the Mount Cook region has numerous natural attractions but Hamilton, by comparison, has limited options to develop as a tourism destination, indeed having little altogether. New Zealand relies heavily on its natural resources in terms of supplying tourism products. Attractions and amenities should complement each other and be in harmony with a destination.

Events

An event is something that is happening at a destination and therefore, attracts people to the destination. For example, you may choose to go to Auckland not because you want to see Auckland but because you want to attend a concert there. Other examples include sporting events such as the Rugby World Cup or exhibitions and festivals such as the World Buskers Festival or World of Wearable Arts. Have a look at what events are taking place in your area.

Tourism, like any business, involves the marketing and sale of a product. There are many factors influencing the ability to supply a tourism product. These factors include the natural resource base, market factors, consumer demand and competitor activity, investment requirements, government policy, and the Tourism 2025 & Beyond report.

We will now examine each of these factors in the context of supplying New Zealand as a tourist destination. Of course, these factors also influence the supply of individual tourism products within New Zealand.

The Natural Resource Base

New Zealand’s tourism industry primarily depends on natural resources and its “100% Pure New Zealand”.

New Zealand is perceived as having an ‘untouched environment’, where the air is among the least polluted in the world. This perception, along with New Zealand’s spectacular natural beauty is a unique selling point (USP), that is unmatched when compared to other international destinations. Tourism in New Zealand relies on us maintaining the pristine environment, stunning scenery, and indigenous culture that sets New Zealand apart. We attract visitors from all corners of the globe and ensure that we provide quality and sustainable travel experiences.

Notice how “ clean & unpolluted” is still an attractive factor for visitors from China and Japan to New Zealand. (The five other countries, including Australia, are the top competitors).

^{Page 4: Kantar Active Considerer (AC) Monitor, Asia Key Markets: July-December 2022.}

Notice how NZ, Australia and Hawaii are ranked the highest for Landscapes and scenery.

^{Page 22: Kantar Active Considerer (AC) Monitor, Asia Key Markets: July-December 2022.}

Market Factors

A market is a group of actual or potential customers. It is also a place whereby buyers and sellers come together to make an exchange.

Why New Zealand?

What sets New Zealand apart is the relatively untouched realness of our people, culture, lifestyle, environment and landscape.

These 4 key aspects and the way uniquely express New Zealand are central to the very special New Zealand experience. Travellers want to experience, up close, all these aspects of New Zealand and New Zealand travel experiences.

The Unique New Zealand Experience

People

• Friendly
• Casual
• Responsive
• Genuine

Culture and Lifestyle

• New Zealand culture of today
• Living and lifestyle
• NZ indigenous experience

Environment

• Clean and pristine
• Air, water, spaces

Landscape

• Grand/bold
• Contrasting
• Untouched
• New, fresh

A market is a group of actual or potential customers. To use some economic terms, the market is where demand and supply meet.

What is the demand and supply of tourism?

The requirement for tourism products (goods and services) at a place or market is known as tourism demand. The provision of tourism products at a given place or market is known as tourism supply.

We will now briefly look at how two market factors, consumer demand and competitor actions, can influence the supply of New Zealand as a tourism product.

Consumer Demand

Just like with any business venture, the success of a tourism product, such as Destination New Zealand, depends on identifying and understanding consumer needs and demand, and then, satisfying that demand to meet or exceed consumer expectations.

Consumer demand can be defined as “what the consumer is willing and able to pay for”. Consumers will almost always purchase products or services that they perceive as being best able to satisfy their needs.

The success of Destination New Zealand depends on providing visitors with a ‘World Class experience in New Zealand. This will mean they will be likely to return for a second visit and/or will recommend New Zealand as a destination to friends and family.

Tourism New Zealand conducts a lot of research to establish the needs, wants and demands of visitors to New Zealand. It publishes a lot of statistics and reports to educate the individual suppliers within the tourism industry. In this way, the suppliers of all of the sub-products can work together to satisfy consumer demand.

Competitors Actions

For New Zealand to sustain its competitive edge in attracting tourists to this country, it must remain up to date with the marketing campaigns of its main competitors, especially those nearby such as Australia, Fiji, and other Pacific Island countries. This requires continuously monitoring the external environment and conducting research on trends in other destinations. In this way, New Zealand will be aware of what its competitors are doing and be ready to respond to their actions.

New Zealand has to ensure that it is not offering the same, or a similar ‘tourist product’, as its competitors are offering. It must highlight the main points of difference that make New Zealand a unique destination.

Bungy jumping in Queenstown is one of the attractions on the adventure tourism trail.

Investment - Government Policy

Click on the two headings below to explore more.

Government involvement does not just come in the form of direct monetary investment in tourism. The government can also influence the supply of tourism in other ways, such as the creation of an economic environment that encourages and enables investment, along with the absence of political uncertainty.

Government policies will change from time to time, depending on whatever political party is charged with running the country. Each government policy created will have an impact of some kind on tourism in New Zealand.

Specific government directives can come in the form of legislation.

Conservation Act 1987

This Act promotes the conservation of New Zealand’s natural and historic resources and designated specific areas to be kept for conservation purposes. It assigns a number of functions to the Department of Conservation(DOC). These include:

• The management for conservation purposes of all land and natural and historic resources held under the Conservation Act
• The preservation of indigenous freshwater fisheries (so far as is practicable)
• The protection of recreational freshwater fisheries and freshwater fish habitats
• Conservation Advocacy
• Promotion of the benefits of international cooperation on conservation matters
• Promotion of the benefits of the conservation of natural and historic resources in New Zealand, the subantarctic islands, the Ross Dependency and Antarctica
• The provision of educational and promotional conservation information
• Fostering recreation and allowing tourism on conservation land, providing the use is consistent with the conservation of the resource
• Provision of advice to the Minister.

Resource Management Act 2020

The purpose of this Act is to promote the sustainable management of natural and physical resources. In this Act, sustainable management means managing the use, development, and protection of natural and physical resources in a way, or at a rate, which enables people and communities to provide for their social, economic, and cultural well-being and for their health and safety while:

• sustaining the potential of natural and physical resources (excluding minerals) to meet the reasonably foreseeable needs of future generations
• safeguarding the life-supporting capacity of air, water, soil, and ecosystems
• avoiding, remedying, or mitigating any adverse effects of activities on the environment

Case Study: Supply Of Destination Manawatu

Natural Resources

Manawatu has many natural resources that offer tourists a range of activities.  These include the following.

• Ruahine and Tararua Ranges – used for hiking, hunting, hang gliding
• Manawatu Gorge – used for kayaking
• Himitangi and Tangimoana beaches – used for boating and fishing
• Manawatu River – used for boating and fishing
• Apiti Wind Farm – Has a viewing area beneath a turbine
• Victoria Esplanade – mini train rides for kids at weekends and on holidays

Accommodation and TOURISM

A diverse range of accommodation is available in the region targeted mainly at the business, conference and family markets. However, due to the limited natural and man-made attractions in the area investment in large-scale tourism projects has been limited. Despite the fact that the area is very accessible with good road access, rail links to Wellington and an airport with international capacity, there are few opportunities for investment to develop large-scale tourism facilities. The area is heavily reliant on the educational and agriculture sectors and most investment is directed towards those industries, rather than tourism.

Tourism and funding

Destination Manawatu is a regional tourism organisation that has made a commitment to the Going Greener programme run by the Palmerton North City Council. This is consistent with the sustainability objectives of the Tourism 2025 & Beyond strategy. The region benefits from government funding of education through Massey University, which generates educational tourism, conferences and visits by extramural students for on-campus lectures. UCOL and the International Pacific College are additional educational facilities that assist the local economy and draw visitor traffic.

There are major military facilities in the region, Linton Army Camp and Ohakea Air Base that bring government funding to the region and provide significant economic activity and some visitor traffic.

Tourism and competitors

The main markets for the region are educational, conference, and sporting groups together with the VFR market. This type of tourism market means that visitor travel is spread relatively evenly through the year and is not subject to the seasonality that affects some other regions. There is not a lot of international visitor traffic due to the region’s proximity to Wellington.

The major competitors for the region include Wellington with its harbour, culture and entertainment options. The Ruapehu/Taupo region with skiing, volcanic activity and diverse landscapes. Hawkes Bay, with its art deco buildings, wineries and coastline. All of these competitor destinations are little more than a two-hour drive away from Palmerston North and offer a greater range of attractions and activities than Manawatu.

Demand and supply is an economic concept. In a marketplace, what is produced or offered (supply) should be equal to what is demanded. Without the demand for tourism products, services, and destinations there would be no point in supplying them. Just like with any business venture, the success of a tourism product, service or destination depends on identifying and understanding consumer demand and satisfying that demand.

The economic definition of demand is: “what the consumer is willing and able to pay for”. Consumers will almost always purchase products or services which they perceive as being best able to satisfy their needs.

In our study of demand, we will look at the following factors:

• Consumer behaviour (tourists and travellers)
• Motivating factors, facilitating factors, and resistance factors
• Motivational theories effect of fluctuations in price
• The effect of fluctuations in price
• The effect of changes in demand

Consumer Behaviour

When consumers/tourists are thinking of purchasing a tourism product service or visiting a particular destination, many factors influence them. You just have to look at peoples’ different tastes, ages, and incomes to see that there are so many differences in their lives and therefore, there will be many different purchasing decisions. Market research, visitor surveys, and keeping a close watch on changing global trends are increasingly important.

The suppliers of tourism products need to carry out market research to answer questions such as:

• Are you looking to attract domestic visitors (fellow Kiwis) or international visitors?
• What regions of New Zealand or what countries do they come from?
• What is their average daily expenditure when holidaying?
• How do they pre-purchase their travel and activities?
• Do they use a travel agency? Go online? Or do they ring and book direct with the operator after they've arrived?
• What is their average age?
• Do they travel in organised tour groups or independently?
• How many days do they spend in your region?
• When do they visit your region?
• What activities do they do?
• Where do they stay?
• How do they travel while in New Zealand?
• Do they speak English, or will they need assistance in their language?

If the answers to these questions can be found, the tourism supplier/marketer will have a sound understanding of their consumers and therefore, a huge competitive advantage.

We must satisfy consumer demand by providing our visitors with a “World Class” tourism experience in New Zealand. To ensure this, we must find out what our tourist market needs and wants so that we can better meet or even exceed their expectations.

The Process Of Establishing And Satisfying Needs

One way to understand consumer behaviour is to study the process by which people establish and satisfy needs. This is an element of the decision-making process, which is a generic marketing activity that can be easily applied to purchasing a tourism product.

This process is illustrated in the following diagram. The traditional decision-making model is represented using solid lines and the process of satisfying needs is signified by the broken lines.

Need Arousal

This is when a need is stimulated. For example, if you have not eaten all day your stomach will rumble. You will notice a ‘gap’ between what you have and what you want. In other words, something is missing, for example, you will feel hungry. Factors/stimuli that could arouse a need for travel and tourism products, i.e. a holiday?

• You are tired of routine and want something new
• You feel the need to re-energise after a cold winter, difficult job, life stress, etc.
• You feel the need to adjust your state of mind

Need Awareness

This is when you become conscious of how you could address your needs. For example, if you are hungry, you will become aware that you need to eat something; you need food.

From a tourism point of view, need awareness can be:

• The need to meet new people
• The need to learn about something new
• The need for some sun and relaxation
• The need for adventure and personal growth

Motivation To Act

Now that you are aware of a need that you would like to satisfy the next stage is motivation to act. In other words, you are encouraged to move forward to try to satisfy that need. In our example of being hungry and needing food, you will be motivated to go out and look for a food source, you might visit a local café for example. What could motivate you to act on the need to go on a holiday? Could it be?

• A conversation with a friend about a recent holiday they have taken
• The awareness of an event that you want to attend
• Advertising that meets your needs for sun/a break/relaxation etc
• A change in life circumstances that presents the opportunity to travel

Motivation is quite a difficult thing to analyse as it is a psychological influence; it’s all in the mind of the consumer. We will look closely at motivation in the upcoming section on motivational theories and travel motivators.

Purchase Decision

Once you have shopped around and put some thought into your options you will then decide on what tourism product will best meet your needs. The decision to purchase demonstrates your commitment to addressing the needs that have been aroused. In making the decision you will consider your options and make a choice. Your decision will involve a specific plan such as the place, time, and costs involved. For example, deciding what items to order from the menu in the café and whether you will eat straightaway or get a meal to takeaway.

Motivational Theories

Many theories have been written on motivation to understand human behaviour. Some of them can be related to the demand for tourism. We will study three such theories.

• Maslow
• Gray
• Ramumbo

Maslow - Hierarchy Of Needs

Abraham Maslow was an American psychology professor. He devised a hierarchy of needs and this is often depicted in a pyramid-shaped diagram.

Watch this video

It is on Maslow's Hierarchy of Needs. (2:25)

Maslow's Hierarchy of Needs

The hierarchy implies that the most basic needs are at the bottom and that each need must be satisfied before moving on to the next one above it, but now it is recognised that the pyramid model can be fluid and needs overlap. The basis of Maslow's theory is that we are motivated by our needs as human beings. Additionally, if some of our most important needs are unmet, we may be unable to progress and meet our other needs. This can help explain why we might feel "stuck" or unmotivated. It's possible that our most critical needs aren't being met, preventing us from being the best version of ourselves possible. Changing this requires looking at what we need, and then finding a way to get it.

However, some criticise Maslow's hierarchy of needs on the basis that our needs don't always exist in a pyramid format, or that one need is more important than another. There's also a concern that his idea of self-actualization cannot be tested. Others suggest that Maslow's theory is weak because it was based on research that was misattributed or lost the original concept being studied.

Taken from: https://www.verywellmind.com/what-is-maslows-hierarchy-of-needs-4136760 (You can read more on this website, to aid a better understanding.

According to Principles of Tourism, 8th edition (Collier, 2011) the link between these needs and tourism is:

Level	NEED	EXPLANATION	IMPLICATION FOR TOURISM
1st	Physiological	Most basic needs Needed for human survival e.g. air, food, water, sleep, clothing, shelter	Individuals at this stage do not generally get involved in tourism E.g. people who only travel because they are refugees, nomads, or border workers
2nd	Security	Once basic, physical needs are satisfied people become concerned with their own personal security, being safe e.g. personal safety, health, and wellness, free from harm/threats, financial security	Evidenced by those who prefer to travel in groups or on an escorted tour Also related to the choice of destination e.g. travelling to a country that has no perceived threats, is politically stable
3rd	Social	Once people’s basic needs are satisfied and they feel safe and secure then the next need to be satisfied is that of social belonging e.g. family, friendship, love, affection, belonging to a group	Travelling in groups with family and friends 18- 30s, Golden Age, cruise tourism products
4th	Esteem	The next need is to be accepted and valued by others, having skills/knowledge/talents recognised and respected E.g. self-esteem, self-respect, achievement	Travel is considered to be a status symbol Maybe a need to ‘keep up with the Joneses”
5th	Self-actualisation	Become your best; achieve your full potential “Find yourself”	Moved past the need to socialise/impress with choice of holiday, instead travel for a purpose such as a conference or meeting

Gray - Wanderlust & Sunlust

Professor H.P. Gray believed that the main motivation to engage in pleasure travel is the desire to be elsewhere and to escape, however temporarily, from the routine constraints and stresses of everyday life.

According to Gray’s theory, the motivation for pleasure travel (tourism)could be divided into two parts: “two separate and distinct motivational forces”.

The first motivation is Wanderlust. It is the desire to exchange the known for the unknown, to leave familiar things and to seek new experiences, places, peoples and cultures.

The second motivation is Sunlust, which according to Burkart and Medlik (1974), “generates a type of travel which depends on the existence elsewhere of better amenities for a specific purpose than are available in the domicile. It is prominent with particular activities such as sports and literally with a lust for the sun”

(According to the Oxford Languages, the word “Domicile” means “the country that a person treats as their permanent home or lives in and has a substantial connection with”).

The two motivations are often interdependent. Most tourism products contain elements of both Wanderlust and Sunlust.

Watch this video

It is from the BBC, questioning why some people have Wanderlust and not others. (3:37)

Ramumbo - Four Travel Motivators

Cuebro Ramumbo, a Mexican social scientist, wrote a theory based on Maslow’s hierarchy of needs. He divided basic travel motivators into four categories.

According to Principles of Tourism, 8th edition (Collier, 2011) these include:

Travel Motivator	Explanation
Physical	Related to rest, participation in sports, and recreation generally. So, they are directly connected with the person’s bodily health. Linked to Health, Spa and Nature tourism.
Cultural	Identified by the desire of the traveller to learn about other countries and their art, music, dances, traditions, food, religion, lifestyle, etc. Many travellers, the Japanese in particular, travel to satisfy their curiosity about other cultures, lifestyles, and places. Linked to Cultural & Heritage tourism
Interpersonal	Create a desire to meet new people, visit friends & relatives, and get away from the routine of everyday life. Or simply to ‘escape’.
Status and prestige	Related to needs of esteem and personal development. Such motivations as the desire for recognition, attention, power, and appreciation, and doing what’s fashionable. Even the desire for sexual attractiveness can be satisfied through travel.

Motivating, Facilitating, and Resistance Factors

There are three main factors that influence the demand for tourism and travel to and within a destination. Motivating, Facilitating, and Resistance. Let's view these in detail.

Motivating Factors

These are the psychological reasons for travel which sit behind the basic purpose for travel. Travel motivators may include but are not limited to: 

Facilitating Factors

Resistance Factors

The age profile for international visitors is shown in the following graph:

The age profile for domestic visitors is shown in the following graph:

Motivating And Facilitating Factors

Education, sport, business, and VFR travel are the principal motivating factors for travel to the Manawatu region. Holiday and Leisure travel is not a major motivator for visits to the area. Facilitators include a very good road network to and around the region, a rail link to Wellington, regular air services to and from Wellington, Auckland, Hamilton, and Christchurch, together with international air service capacity at the airport.

Resistance Factors

A lack of outstanding natural attractions and significant man-made attractions have given the region a reputation of being somewhat less exciting compared to other areas. The closure of Freedom Air means Australian travellers no longer have direct access to the region and must now travel via Auckland or Wellington. The frequent closure of the Manawatu Gorge road may result in some people avoiding that route.

Changes In Demand

The loss of air services provided by Freedom Air and more recently Origin Pacific will have affected demand for services at Palmerston North Airport, such as duty-free, café services, and taxis. There may well have been flow-on effects for the accommodation industry, rental cars, and transport services to other towns in the region and neighbouring regions.

If there was a government decision to downgrade or diminish the level of educational services provided at Massey University there would be an impact across the local economy, including all the amenities that support the local visitor industry e.g. accommodation, cafes, transport, conference and sporting facilities, etc.

Price And Its Influence On Demand

The price of travel and tourism, i.e. the cost to the consumer of purchasing a tourism product can be either a facilitating or a resistance factor. For example, if the overall cost is perceived as being good value for money, then consumers will be more likely to demand the product.

The price of travel and tourism is said to have three components:

1. The price of getting to the destination (transport, accessibility)
2. The price of ground costs (whilst at the destination)
3. In the case of international travel, the rate of exchange (currency) between the country of departure (generating country) and the host destination

The components of the price will fluctuate daily and will directly affect the demand for tourism products, such as New Zealand as a tourism destination.

Transportation Costs

International visitors can get to New Zealand in two ways; they can fly here by airplane or stop off whilst on a cruise. Most visitors arrive by airplane, so the cost of airfares is very important here. If the cost of air travel increases, we would see a direct impact on the demand for New Zealand as a tourism destination – there would be a decrease in demand.

Low transportation costs (airfares) = high demand for New Zealand as a tourism destination

Ground Costs

These are the cost of all the goods and services the consumer buys whilst at the destination, the price of accommodation, entry fees to attractions and the price of activities, the cost of food and beverage, and so on.

Ground costs generally increase every year, this is known as inflation. If the rate of inflation is high, it means prices are going up quickly. As the price of goods and services increases the demand for them decreases. In New Zealand, the government and the Reserve Bank work hard to maintain price stability. They try to keep inflation between 1.5 – 3% in the medium term.

Low ground costs = high demand for New Zealand as a tourism destination.

Exchange Rates

When international visitors come to New Zealand, they need to exchange their money for New Zealand dollars. The rate of exchange will determine how much money international visitors have to pay to get to New Zealand (airfares) and how much money they will have to spend once they are in New Zealand (to pay for ground costs).

For example, imagine a tourist from England who wants to visit New Zealand. If the New Zealand dollar is weak in comparison to the UK pound sterling the Englishman would be quite well off in New Zealand, he would have plenty of money to spend and would consider the price of goods and services to be cheap. A high New Zealand dollar in comparison to other countries would have the opposite effect.

The low value of NZ$ = high demand for New Zealand as a tourism destination.

Seasonality

Another factor to consider when examining the fluctuations in the price of travel and tourism and its impact on demand is seasonality. There will of course be times of the year when it is more economical for tourists to visit New Zealand. Demand is higher in peak times so we would expect the process to be high at this time. Demand is low in off-peak times so lower prices and special offers are common.

Key messages from MBIE on the Season dispersal of visitors:

International arrivals in New Zealand are highly seasonal. Arrivals in the summer season are twice the number in the winter season. The pattern of arrivals is relatively similar over the last three years, with recent growth in holidaymakers seen in the autumn season.

• An increasing proportion of holidaymakers are arriving in the summer and autumn seasons, with a lower proportion in the winter season. Seasonal patterns for other visitors (with the purpose of visit being visiting friends or relatives, and business reasons) have remained static.
• Business travellers have a different seasonal pattern. Business arrivals are almost equally spread across all seasons, with slightly more arrivals during spring and autumn seasons, and the least arrivals during summer.
• People in different age groups show different seasonal travel patterns. Although the majority of visitors prefer to visit during summer, older travellers are more likely to travel in shoulder seasons (especially autumn).
• People from different countries show different degrees of seasonality. These travel patterns are unchanged across multiple years.
• People from all countries (apart from India and Indonesia– their peak season is autumn and winter respectively) show a strong tendency to visit during summer rather than in winter. However, in certain countries, such as China, holidaymakers almost equally prefer to visit in the autumn shoulder season.

Changes in Demand and its Knock-On Effects

When the demand for a particular tourism product, or service changes for one reason or another, it will have a knock-on effect on the demand for other related tourism products, or services.

We can examine this effect using another economic concept, substitute, and complementary products.

Substitute products are those which can be substituted for one another. In other words, you can use one instead of the other to satisfy the same basic need. Common examples are butter and margarine, or a pen and pencil.

If the demand for one substitute product increases there will be a decrease in the demand for the other product, and vice versa.

People may choose to spend their money on things other than tourism products. Similarly, if they do want to purchase a tourism product there are often many similar alternatives, choices. For example, a UK tourist may choose to visit Australia instead of New Zealand.

Complementary products are those which are usually consumed or used together. Common examples are bread and butter or paper and a pen.

When the demand for one product increases the demand for the other product will also increase, and vice versa.

Sub-products of the overall tourism product, i.e. transportation, accommodation, attractions, and activities are complements. A change in the demand for one sub-product will directly affect the demand for the others. For example, a concert in town means the demand for accommodation is up. With regard to substitute products, people may choose to spend their money on things other than tourism products. Similarly, if they do want to purchase a tourism product there are often many similar alternatives, choices. For example, a UK tourist may choose to visit Australia instead of New Zealand.

The Impacts of COVID-19 on New Zealand Tourism

Review the following articles: (Contextual information has been included so that you can place each article against both international and domestic tourism).

Article 1.Covid-19 coronavirus: New Zealand set for domestic tourism boom in January

Article 2.Covid-19: Backpacker, hostel bookings plunge again after alert level changes

Domestic Travellers who holiday in New Zealand are motivated to:

1. To stay near to or see particular sights of interest.
2. To attend special events.
3. To get away from the “everyday routine”.
4. To have a good time.
5. To visit places where ancestors have come from.
6. To visit places where family or friends have gone to.
7. Location of the accommodation: To experience particular weather (perhaps to avoid winter).
8. To improve health (sunny, dry climate, clean air)
9. To engage in a sport (to swim, fish, sail, golf) (if this type of accommodation is near the sporting activity)
10. To go on an adventure (new area, people, experiences).
11. To support sustainability / reduce carbon footprint, as the article mentions that accommodation in NZ is becoming more sustainable.

Domestic Travellers who holiday in New Zealand facilitate:

1. The requisite disposable income to devote to leisure pursuits.
2. New Zealanders engaging mostly in domestic travel due to Covid-19 closing the borders.
3. Shorter, and perhaps more frequent holidays will become “the norm” amongst New Zealand travellers – if restricted only to domestic tourism.
4. Ease of access in most locations, with relatively short distances involved across New Zealand.
5. No currency exchange rate considerations.
6. Time for short breaks over weekends, and public holidays.
7. Availability of transport to and within the destination.

Domestic travellers are resistant to:

1. Lack of amenities
2. “Snap lockdowns” resulting in a sudden change in Alert Levels
3. Negative reviews left on social media / sharing websites such as TripAdvisor etc.,
4. Host population / local attitudes towards visitors (e.g. fears towards Aucklanders because of snap lockdowns etc.,)
5. Climate variance, natural disasters.
6. Time and money constraints.
7. Distance, location (ease of access/condition of roads.
8. Political instability and associated safety concerns (civil unrest, risk of terrorism etc.,)
9. Family commitments.
10. Work commitments.

Facilitating Factors include:

1. Regular and expanding international air services exist from most generating markets.
2. Historically, currency exchange rate advantages exist for most foreign visitors.
3. There is a widely accepted perception of safety and ease of travel to and within New Zealand for overseas visitors.
4. Few extraordinary entry requirements exist, with New Zealand being a visa-free destination for most passport holders.

Resistance Factors include:

1. Distance and related higher relative cost.
2. For many prospective travellers, New Zealand is considered a remote destination.
3. Time required to travel greater distances.
4. Seasonal considerations – particularly for Northern Hemisphere residents.
5. Language difficulties – particularly for non-English speakers.
6. Environmental concerns related to carbon emissions as an end product of air travel.