The purpose of the market analysis is to provide an estimate of tourist flows to the destination in the long term. The purpose of the inventory is to summarize the current stage of tourism development in the area. Target markets can be identified through a four-step process.19 The first step estimates the attractiveness of the area's attractions.
Pull power is a measure of the amount of effort people will expend to reach the area. One way to do this is to classify area attractions into those with local, state, regional, national, or international appeal. A second method involves estimating the amount of time it takes the average person to visit area attractions.
The minimum measure of the area's pulling power is the time it takes to see and enjoy the highlights of the destination.
Planning and engineering analysis
A demographic market segment can be thought of as a skeleton that provides the frame and shape of visitors. Segmenting a market based on visitor behavior would cover things like how they traveled to the area, how long they were in the party, when the trip was made, when the decision to travel was made, and how long the trip was. it was. From the documents covering the changes in the retreating market segments, it can be seen which segments are growing, changing or declining.
The end result of this will be a profile of the numbers and types of tourists expected in the future. When looking at transportation in and out of the region, it is necessary to consider the time zone preferences of the visitors. When flying from the United States to Europe, it is common to depart in the evening and arrive early in the morning.
On-street parking can be increased by things like introducing one-way traffic or changing parallel parking to angled parking. Parking can be arranged in several ways.20 It can be provided privately by the attraction, as in the case of major attractions, where the cost is often included in the price of admission. The problem arises when the owner of the parking lot wants to convert the land into a more profitable use.
To further expand these areas or to develop new areas requires the consent of the federal government. Often the success of a particular tourist area depends on the quality of the physical environment. The impact of development on the natural features of the environment must be taken into account as it relates to the planned use for each site.
Socioeconomic analysis
Business and legal analysis
- Existence of agencies
- Environmental Protection
- Zoning laws and land use
- Sanitation a. Dumping facilities
- Transportation and Public
- Licenses and Permits
- Regulation of Attractions and
- Advertising a. Billboards
- Taxation-local a. sales
- Wages and Compensation
What are the community's perceptions regarding the existing economic impact and relative importance of tourism to the community?21. However, the price paid for this (apart from the interest payments) is that control of the project is moved outside the community. Too often, communities have provided financial incentives to companies with the promise of future economic benefits to the community.
Appropriate permits are required if the quality of the environment may be put at risk. Both the National Park Service and the Heritage Preservation and Recreation Service of the U.S. Department of the Interior can provide information on the procedures necessary to designate specific buildings or sites as historic monuments. Examples of licensees would be vendors, people coming in from the rain or those taking a shortcut through the property.
The legal obligation for permit holders is to warn people of any risks on the site. State regulations generally govern a person's legal drinking age, when alcohol can be served, and the presence or absence of slot machines on the premises. It is difficult to change community laws that are enacted to “protect” the morals of the people.
The owner is responsible for any debts of the company in the amount of his personal assets. In order to be established, the company must obtain a charter and meet the requirements of the country in which it is established. Business income, losses and taxes are treated separately from the owners, who have limited liability for business debts.
All employers pay into this fund based on the amount of risk associated with each employee's job and the employer's safety record. These set limits on the minimum age and hours young people can work.
Synthesis of basic data
Employers have a responsibility to protect the safety and health of their employees in the workplace. The Occupational Safety and Health Administration (OSHA) regulates and inspects business premises to ensure that employees are not forced to work in an unsafe environment. A similar position statement will then be developed about: "Where do we want to be?" Such a statement will cover the areas mentioned above and will be related to the work to solve the problems of the community while being realistic about the existing role of tourism.
A region with chronic unemployment might emphasize the kind of tourism that would create large amounts of jobs, while another region with unbalanced regional growth might try to develop tourism in those areas where the economy is weak. The point is that the answer to the question, “Where do we want to be?” must be related to solving the problems unique to that region. The position statement should realistically reflect where the region currently stands in terms of tourism.
Selection of development areas
Preparation of area-wide master plans
First, location is important in terms of the accessibility of the site itself and the proximity of accommodations to the attraction. Second, the attractiveness of the view can either enhance the attraction or be the primary attraction for the visitor. Many elements of the environment (sunshine, hills, isolation, etc.) are part of the tourism experience.
The development of activities that match the characteristics of the land will enhance the tourist experience for the visitor. Taxis must be modern and drivers must speak at least a few words of the tourist's language. Buses must be suitable not only for the market segments they attract, but also for the type of journey.
Cruises will only affect a few parts of the destination, such as shopping, attractions and local transportation. There must be enough accommodation facilities of the right kind to be attractive to visitors. Ideally, the facilities will be designed in accordance with the traditions and customs of the area.
When developing the infrastructure for a tourist area, the needs of its residents must be taken into account. The point is that a coordinated effort is needed to develop services and facilities that expand the area for tourists and fall within the public sector budget. Suitable health care facilities will depend on the numbers, age groups, and anticipated activities of the anticipated visitors in light of geographic factors unique to the area.
Economic feasibility
Ideally, hotel room rates should be structured so that the property will break even at 50 percent occupancy. At the breakeven point, the property makes no profit or loss, but holds its own. The breakeven point is the point at which the revenue generated exactly equals the costs incurred.
A company with a high proportion of fixed costs usually has a relatively high break-even point. However, once the breakeven point is reached, the only costs incurred are variable costs. Hotels and other accommodation facilities place great emphasis on getting as much business as possible that exceeds the profit threshold.
Another way to determine the breakeven point is as follows: Suppose a 160-room hotel has $1 million in fixed costs this year; a room typically sells for USD 40 and the variable cost of that room is USD 5 (for cleaning, soap, laundry, etc.). After the sale of the first room, the remaining fixed costs amount to USD 1 million minus USD 35 or USD 999,965. Every time a room sells for $40, $5 goes toward preparing the room for the next guest and $35 goes toward paying off fixed costs.
Eventually, if the property has enough guests, the fixed costs will be paid for that year. As long as the breakeven point is reached, the rooms can go down and the profit still increases. The breakeven percentage is the number of rooms needed to reach the breakeven point divided by the number of available rooms.
Administrative and legal plan
In fact, we can sell the room for USD 5.01 and still make a profit, even if it is only 1 cent. However, this is the reason why rooms are sold for less than the regular price in the off-season or to groups. This should only be done if it is impossible to get the regular rate for the room.
The break-even percentage is the number of rooms needed to reach the break-even point divided by the number of rooms available. direct appropriate marketing efforts to potential tourists. This will include a determination of the type of promotional campaign and choice of distribution channels that will best market the destination to tourists, intermediaries in the distribution channels and investors. Intermediaries in the channel will be those businesses that act as conduits between destination and tourist, such as tour wholesalers, retail travel agents, etc.).
The development of tourism requires those who can provide services at the level expected by the tourist. In some cases this may mean setting up training centers at the destination to bring local skills up to the expected standard.
Overall financial feasibility
