Explanation of terms in tourism supply law

Interpretation of the law of tourism supply: it means that the supply of tourism products and the price of tourism products change in the same direction when other conditions remain unchanged.

1, the relationship between commodity prices and producers:

Specifically, with the increase of commodity prices, the number of commodities that producers are willing and able to provide increases; On the contrary, with the decrease of commodity prices, the number of commodities that producers are willing and able to provide decreases. This law reflects the regularity that the producer's supply and commodity prices change in the same direction.

2, the law of tourism demand:

The law of tourism demand refers to the change of tourism demand and the price of tourism products in the opposite direction and in the positive direction with people's disposable income and leisure time when other factors affecting the change of tourism demand remain unchanged.

Specifically, when the price of tourism products rises relatively, the demand for tourism will decline; When the price of tourism products drops relatively, the demand for tourism will increase.

The difference between tourism supply law and tourism demand law;

1, change direction:

The law of tourism supply points out that the supply of tourism products and the price of tourism products change in the same direction when other conditions remain unchanged. That is, the price rises and the supply increases; As the price falls, the supply decreases.

The law of tourism demand shows that the change direction of tourism demand and tourism product price is opposite. When the price of tourism products rises, the demand for tourism will decrease accordingly; On the contrary, when prices fall, demand will increase.

2. Influencing factors:

The law of tourism supply is mainly influenced by the price factor, which is the producer's response to the market price. The law of tourism demand is more influenced by non-price factors such as consumers' income level and leisure time. With the increase of disposable income and leisure time, people have greater motivation and possibility to travel, thus increasing the demand for tourism.

3. Stability:

Tourism supply is relatively stable under certain conditions, that is, the supply capacity is limited. This is mainly because the production of tourism products is restricted by resources, technology, manpower and other factors, and its growth rate is relatively limited. Tourism demand may fluctuate greatly due to many factors, such as economic environment, social and cultural changes, etc. )