Factors determining tourism demand

Faqar Saadoun Hassan
Asst. Lect. Haider Diaa Salman

The recent changes occurring on the Arab and international levels, which may be social, economic, technological or environmental, have a major impact on the development of tourism movement. The increase in population, growth in individual income, rise in the standard of living and increase in leisure time have had a major impact on the growth of tourism demand.
Tourism demand varies from one place to another and from one time period to another. These differences may be quantitative or qualitative. The reason for this is that tourism demand is greatly affected by a set of factors, including economic and non-economic factors. The following is a review of these factors:

1- Income level (Al-Alaq, 2000: 2000)
Income is important in determining the size of tourism demand, as the relationship is directly proportional between income and tourism demand, as the income that the family receives is one of the basic factors that have an effective impact on the process of demand for services. We find that the total income that these people receive determines the total amount of various services and the possibility of demand for them. The individual’s participation in the demand process in general and tourism demand in particular is determined by the limited amount of his income, especially the amount that he can spend from. Not only that, but in addition to that, the nature of demand, especially tourism demand, is determined to a large extent according to the amount of income that can be spent, which is called (personal income)

After paying taxes and other dues that are allocated exclusively for spending (Al-Alaq, 2000: 2000)
It is considered The income level is one of the most objective factors in explaining the reasons for the disparity in tourism demand between the populations of developed and developing countries, as its increase among the populations of the first group, especially after World War II, along with other factors, pushed it to be within reach of different social classes. With the second group, income levels remained generally low, with a small segment of the population having a high income, which qualifies them for travel and recreation. (Agha, 30: 2004)

Spending on travel is linked to the level of income. When personal or individual income increases, the amount of spending on travel also increases, as income is of great importance in shaping the size of tourism demand. Experience has shown that the growth of individual income is one of the most important factors in making the decision to travel. It was also noted that the most important thing that hinders this movement is the individual’s income in society, because the more the individual’s income increases, the greater the share of tourism in the money as a result of the increase in the income of individuals.

Thus, these individuals can save part of their income for the purpose of benefiting from it in a tourist trip during the vacation period. (Al-Akeely, 16:2000)
The impact of income on tourism demand can be studied from the following aspects:
A- Income distribution/
This factor is considered to be of fundamental relevance in developing countries with regard to its impact on tourism and travel, as there is a small percentage of the population that has a high income that enables them to travel and relax compared to a large percentage of people, some of whom cannot satisfy their basic needs, such as food and clothing.
B- Distribution of commercial returns/
Sometimes it affects tourism demand. If a company suffers a loss, this affects:
– Travel requirements for workers, especially in areas that the company does not consider necessary.
– Travel for sales employees or users in general.
– Returns allocated to employees and granted on holidays. (Ghadab, 22:2013)