1. IMPACT OF TOURISM
3.06 Examine the cyclical/seasonal
nature of tourism.

2. Product Life Cycle
•Introduction stage
•Growth stage
•Maturity stage
•Decline stage

3. Introduction stage
•Travelers who do not like to go where
everyone else goes discover a new destination.
•Industry segments introduce new
products/services to gain a competitive edge.
•Characteristics
Profits are low.
Promotion costs are high.
There are few competitors.

4. Growth stage
Characteristics
•Popularity increases.
•Profits increase.
•Sales increase.
•Competition increases.

5. Maturity stage
Characteristics
•Local residents lose control over the development of
tourism.
•Big hotels and restaurant chains move in.
•A portion of the local population depends on tourism for a
living.
•Sales are at their peak.
•Products and services need rejuvenating to maintain their
market share.
•The marketing mix begins to change to reach new markets
and encourage tourists to revisit.

6. Decline stage
Characteristics
•The destination becomes over-saturated with
tourists.
•The site has exceeded its carrying capacity.
•The destination has lost its appeal.
•Sales decline.
•Some facilities may pull out of the area.

7. Seasonal nature of tourism
•Peak period (high season)
•Off-peak period (low season)
•Shoulder season

8. Peak period (high season)
Time when the destination is most
desirable either for climatic reasons or
because of some special event
•Prices are high.
•Demand is high.
•This is a popular travel
time.

9. Off-peak period (low season)
Period or season when traffic volume or
occupancy is not heavy
•Traffic is usually low for an
identifiable reason.
•Prices are reduced.
•Demand is low.

10. Shoulder season
The period between
peak and off-peak
seasons. Shoulder
seasons are attractive to
people who do not need
to travel during peak
holiday months.

11. Factors affecting the timing of the
peak/off-peak period
•Location and season
of the destination
and/or facility
•Type of facility or
business