Thursday, November 17, 2011

Problem 6 - RJ for Hospitality and Tourism Management

Keywords for the day:
1)      Over-supplying
2)      Over-crowding
3)      Supply
4)      Push and Pull factors
5)      4 different demands (actual demand, latent demand, deferred demand, no demand)

Over-supplying refers to high number of visitors but low number of products and services in the tourism industry.

Over-crowding refers to high number of products and services in the tourism industry but there is low number of visitors.

Supply refers to accommodations, food and beverages, transportations and attractions, in short basically everything which visitors need when travelling to a country.

Push factors refers to what prevent inbound international tourism and internal tourism from taking place. In simple term is what pushes tourists away from wanting to go into the country.

Pull factors refers to what encourages inbound international tourism and internal tourism from taking place. In simple term is what attracts the tourists from coming into the country.

The 4 different demands refers to actual demands which is the number of people we have in a business (I will explain further) and latent demand refers to what prevent visitors from coming into the country when we already have a expecting number of visitors into the country. Deferred demand refers to whether or not we have the capability to accept the number of visitors; we can either build more infrastructures or remove the infrastructure to fulfill the needs of the country.

Let me put tourism into a church setting. I hope I could explain in correctly, if I am able to explain in simpler concept I think I will be able to explain in a slightly more complex term. If I am not correct, please point out the mistake that I make so that I can have a clearer view.

 Church = country

Constant number of people who attend church (200) = Fixed number of tourists that comes Singapore (200)

Number changes due to school holiday or major outbreaks or major events (100) = Number of tourists increases due to term break in oversea setting, sickness (e.g H1N1) or big events (e.g F1)

My church recent revamped our 2nd storey to allow us to occupy more people into the church. The reason simply is that church is growing and to fit into the culture of 20th century we have to revamp to attract more teenagers into the church.

Before the revamp, our church only can occupy 250 people. So in simple term, our supply only has 250 seats. At first our church have only 200 people including people who serve in the ministry so that would mean that the actual demand is 200 and our latent demand is 250. The number of people who attended the service drops from 200 to 170 especially during the holidays such as the Christmas or major school holiday such as March, Mid Year Holiday and End of Year Holidays. This means that we are over-supply as we have more chairs rather than people. During major outreach activities, we will have 260 to 300 people attending the service. We have over-crowding happening as we have more people rather than seats so that mean those who are serving have to stand during the service.

5 year later we decided that we need to revamp the church as we foresee that we need to occupy more people in the service. So we are deferred demand that we need to increase the number of seats. In simple term we predicted the number of people who will be attending the service will increase from 250 to 400 which include people who serve in the ministry. So now we revamp and that we are now over-supply as we have more seats than people.

In our church we have a library but because it is over-supply for more than 10 years. Therefore we can say that the library is in no demand.

In conclusion, the supply and demand is a chain reaction will be continuous unless there is no demand than it will remain the same throughout the years.

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