Supply and Demand and Tourism

Topics: Supply and demand, Maldives, Tourism Pages: 7 (2274 words) Published: March 14, 2013

The republic of Maldives is a nation of islands looping the equator, at the center of the Indian Ocean. It is a natural paradise, a world of intensely simple beauty, a place that will captivate the mind and rest the human’s spirit. The Maldives is that sort of place fascinating some of, frustrating for others. When the very first airport was made in “Hulhule”, some U.N experts arrived Maldives to look into the feasibility of tourism in Maldives. U.N experts conclude in 1966 that there was no future for tourism in the country. Then in 1971 George Corbin, an Italian interested about Maldives met a Maldivian name Ahmed Naseem. Their efforts resulted the arrivals of first tourist group to Maldives. Now Maldives is a renowned tourist destination worldwide, entered the tourism industry with very humble beginning in the 1970s. Tourism is the largest economic industry in the Maldives, since it plays a vital role in earning foreign exchanges to the country. Even though some disadvantages are there in tourism, there is also happening to have wide range of advantages to it. It opens a market for traditional handicraft and this provides the islanders with a suitable wage to get by. It also provides numerous job opportunities to the Maldivians who work in this particular industry directly. Like the people working in islands. The archipelago of the Maldives is the one of the basis as to why many tourists are attracted to visit the Maldives. The government of Maldives has increase the tax that has been taken by the tourist named as tourism goods and service tax, to 6% to 8%, by saying Maldivian tourism didn’t get expected state revenue. Minister Ahmed Adheeb said that the tourism industry will not earn the expected revenue for the year which the International Monetary Fund (IMF) had also pointed out. “The expected amount from lease rent will not be acquired within the year. This is about MVR500 million. We are looking for ways to compensate for the loss. Discussions for the issue will start within next week,” Adeeb said. Although Deputy Minister for Tourism Mohamed Maleeh Jamal has discusses to promote Maldives and Sri Lanka jointly. Maleeh said that the brand of tourism promoted by Sri Lanka and that of the Maldives are different. “Maldivian tourism and Sri Lankan tourism are very different. Most tourists visit Sri Lanka to experience the cultural and traditional attractions. But on the contrary, tourists visit the Maldives to see the natural beauty of the country and the underwater scenery. The Caribbean region markets their tourism collectively, and very good results have been yielded from it,” Maleeh said. British tourists visit Sri Lanka currently more than they do to the Maldives, but the Tourism Ministry pointed out that despite that the Maldives and Sri Lanka is not competitive markets and that tourists visiting Sri Lanka are not of the same standard as that of the Maldives.

Demand on tourism
Demand in desire to buy a product or service, ability to pay or willingness to pay. Tourism demand in the total number of persons who travel, or wish to travel, to use tourist’s facilities and services at places away from their places of work or residence. (Mathieson and Well (1982)) DEMAND CURVE

Above the curve D is the demand curve. The curve shows, how quantity demand stays in different prices. For example when price was 5, 20 people are willing to pay that amount. And the price was 1, 100 peoples are willing to pay the amount. Such that demand increases when the price was at lower price. And price was higher few are willing to pay. Customer...
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