Tourism, Security and Safety From Theory to Practice

Review Questions
1. Why is it important to look at both demand and supply in the tourism market?
2. Why is it important to distinguish between local and foreign tourism markets when
analyzing the impact of terrorist incidents?
3. How do hotels react when faced with a terrorist-based demand depression?
4. Why do hotels prefer, in a terrorist environment, to endure unused capacity rather
than reduce prices?
5. Why is it important for hotels to estimate elasticities of demand?
War, Terror, and the Tourism Market in Israel
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Concept Definitions
Tourism demand and supply
A tourism market exists when tourists and sellers
of tourist services interact with one another. In order for supply and demand tools
to be useful for analyzing such markets, each tourist and seller must be small rela-
tive to total market activity. Since tourists are a group distinct from sellers, we can ana-
lyze separately how the two groups behave. The interaction between the two
determines market equilibrium price and quantity.
Price elasticity of tourism demand
Demand elasticity is a measure of tourists’
responsiveness to changes in the prices of tourist goods and services. It is reflected
in the percentage change in a consumer’s response in their buying decisions to a
change in price.
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Tourism Security and Safety: From Theory to Practice
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