Supply and Demand

Supply and demand interaction is the most fundamental concept in economic transactions. Demand refers to desires or needs of buyers and consumers and supply refers to available resources and how the market reacts to demand. Employing a similar approach, the tourism system consists of an origin and a destination in its simplest form, yet it is a complex system.

It is commonly accepted that the visitor’s place of origin represents the demand side of tourism. A destination, on the other hand, refers to the supply side of tourism that offers different types of amenities to be consumed and may also possess a certain power of attractiveness. It is important to know that as stakeholders, the tourist and tourism attractions are the central aspects of the system. ...