
The purpose of the market analysis is to provide an estimate of long-term tourist flows to the destination. This is done by examining the tourist resources of the area compared to those of the competition in light of present and potential tourist demand.
Inventory of tourist attractions
Core and supporting attractions. The purpose of the inventory is to summarize the current stage of tourism development in the area. The key question to be answered in this section is: "What do we have that would cause a tourist to come here?" Table 8.1 contains a listing of various attractions. Often what is regarded as "ordinary" by local people will be of interest to outsiders. One way to approach this subject is to distinguish between core and supporting attractions. A core attraction forms the theme for the area. It is the principal reason tourists will visit the destination. It may be a natural attraction such as Niagara Falls or a way of life such as the Amish in Pennsylvania. Supporting attractions are those built around the core theme. In Niagara Falls, for example, the Maid of the Mist boat trip, which takes people to within yards of the bottom of the falls, and the museum of daredevils who attempted to go over the falls are examples of supporting attractions.

Sources of information. Information can be collected from several sources. These include:
- telephone directory
- chambers of commerce
- local historical societies
- area historian
- state tourist and travel offices
- people in the various tourist industries
- local elected officials and regional planning and development staff 1
Collecting such information requires leadership from the appropriate national, state or provincial leadership and a coordinated effort throughout the region. At the local level this might be coordinated by representatives of the local chamber of commerce, people in businesses associated with tourism, or elected officials.
Natural, scenic, or environmental |
Attraction currently exists |
Area has potential to develop this attraction |
Beaches Botanical gardens Canyons and gorges Caves Cliffs Climate (low humidity, low rainfall, sunny, warm, etc.) Deserts Fall foilage Farms, ranches, dude ranches Fishing streams and lakes Forests Geysers Golf courses Islands Lakes Marinas Mountains Nature trails Oceans Orchards and vineyards Panoramic or picturesque views Parks: national, state, and local Picnic areas Playgrounds with equipment Rivers Sand dunes Ski slopes Springs Swamps Unique geologic formations Valleys Volcanoes Waterfalls Wildlife sanctuaries |
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Man-made attractions |
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Airports Amusement parks Antique shops Arenas Art galleries Ball parks Beauty spas Big-name entertainers Bridges Campgrounds or trailer parks Candles Children's parks Churches Covered bridges Craft shops Dams and power stations Fish hatcheries Ferry boats Gambling casinos Government buildings Handcraft and homecraft industries Harbors Health resorts Large city attractions Libraries Local industrial plants Lumber camps Military installations Night clubs Nuclear reactors Observation towers Planetariums Rest stations Roadside parks Ships Shopping centers Showboats Souvenir and curio shops Stage shows Swimming pools Telescopes Theaters Universities and colleges Unusual buildings Unusual restaurants Wharfs Windmills Zoos |
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Historical attractions |
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Battlefields Birthplaces of famous people Burial grounds Famous historical buildings Ghost towns Historic tours Landmarks Markers Memorials Missions Monuments Museums Newsworthy places Old forts Pioneer churches Pioneer homes Reconstructed historical towns Re-enactment of historical events Ruins |
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Cultural and ethnic attractions |
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Antiquities Archeological sites Art galleries Ceremonial dances Conservatories Costumed events Early settlements Ethnic celebrations Exhibits Ghost towns Indian culture Indian reservations Mansions Museums Native folklore Prehistoric items Re-creations and restorations Special “nationality” days Trading centers Unique lifestyles |
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Recreational activities |
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Archery Beach combing Bird watching Boat rides Body surfing Bowling Camping Canoeing Fishing Fossil hunting Golf Hang gliding Hiking Horseback riding Hunting Ice skating Mountain climbing Nature trails Racing and regattas Rock hunting Sailing Scuba diving Skeet shooting Skiing Spelunking Swimming Tennis Trap shooting Water skiing |
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Special events (too numerous to list all possibilities) |
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Air shows Antique auto shows Arts and crafts classes Barbeques Barn dances Boy scout jamborees Country and folk music festivals Excursions Fairs Fishing Hayrides High school band days Hobby weekends Hog calling contests Holiday celebrations Home tours Jazz festivals Pageants Parades Photo contests Pie eating contests Plowing tractor contests Queen coronations Races: auto, motorcycle, horse Rodeos Shows: dog, cat, horse Sightseeing tours Tournaments: sports Turkey calling contests Turkey shoots |
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Source: University of Missouri, Tourism U.S.A., Volume II, Development: Assessing Your Product and the Market (Washington, D.C.: U.S. Government Printing Office, 1978),pp. 33-37. |

Tabulating the data. Once data are collected, the information should be stored in some usable form. Data can serve as the basis for preparing a marketing plan, for determining the strength of the area attractions, and for identifying areas of weakness that must be attended to. One format for such a display is shown in Table 8.2. Dividing the attractions into their various types can help determine what the core attraction of the destination is. The capacity together with the actual number of visitors will determine the need to expand. The price charged will give an indication of the market segment being served while a judgment of the quality will show where resources have to be improved.
Inventory of tourist facilities
An inventory similar to the one above would be prepared for tourist facilities and would include information on lodging, food and beverage outlets, and retail stores aimed at tourists. Information would be collected on the location, number of rooms or seats, amenities and services provided, and the markets served.
General Condition |
needs improv. |
poor |
|
fair |
|
good |
|
Should/Should not be expanded |
|
Services |
|
Admission Rate |
other |
group |
|
child |
|
adult |
|
Capacity Per Day |
|
Man-made |
|
Recreational |
|
Historic |
|
Scenic |
|
Name and Address Of Attraction |
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Source: University of Missouri, Tourism U.S.A., Volume II, Development. Assessing Your Product and theMarket (Washington, D.C.: U.S. Government Printing Office, 1978), p. 41. |
Transportation modes
Transportation to, from, and within the destination is covered in this section. For commercial carriers, the cost and frequency of service, cities served by direct connections, and future plans for service will be covered.
Existing market
The end product of this inventory is to answer the following questions:
- Whom do we attract?
- When do they visit and how far in advance do they decide?
- Where do they come from and how do they get here?
- Why do they visit?
Marketing is more art than science, yet one rule of thumb in marketing is to "attract people similar to those who already visit". A certain type of person already visits the area. By identifying the characteristics of existing visitors it is possible to identify similar target markets. By answering the question "Whom do we attract here?” in light of tourist trends it is possible to determine the most appropriate markets to approach.
Market segmentation. Because the travel market is made up of people who have diverse needs it is necessary to think in terms of different segments of the market. Market segmentation is the process of dividing a market into distinct groups who have relatively similar needs and developing separate marketing strategies for each one.
Demographic segmentation. Markets may be segmented demographically, geographically, psychographically, or on the basis of behavior. Demographic variables might be such factors as age, marital status, number and age of children, stage in the family life cycle, education, income, or occupation. Such a profile might determine that the visitors to a destination area are primarily between the ages of 25 and 35, married with children between the ages of 2 and 6. The parents have attended some college and are professionals with a family income of USD 20,000 to USD 30,000. Demographic variables have long been the basis for segmenting markets. However, in recent years, tourist markets have become more complex and demographics alone cannot explain tourist behavior. Many students, for example, journey to Europe. They may buy a Eurail pass and sleep on the train to avoid hotel costs as they take in the history and culture of foreign lands. On the basis of age and income, their travel to Europe could not be predicted.
Geographic segmentation. We have seen earlier that both travel distance and time impact on the decision to travel. Thus, it would appear that segmenting a market geographically would make sense. Target markets can be identified by means of a four-step process. 2 In the first step, the attracting powers of the area's attractions are estimated. Attracting power is a measure of the amount of effort people will spend in getting to the area. Attracting power depends on the amount of time a visitor would have to spend seeing the attractions in the area and the degree of interest the individual has in these attractions. One way to do this is to classify the attractions of the area into those with local, state, regional, national or international appeal. The United States' Disney World, for example, has international appeal, whereas a weekly farmer's market might draw folks from 32-kilometer radius. A second method involves estimating the amount of time it takes the average person to visit the attractions of the area. The minimum measure of the area's attracting power is the time taken to see and enjoy the highlights of the destination. The total amount of time to see all or most of the attractions is the maximum measure of the destination's attracting power. It may be that these measures would vary by season. From these figures an estimate can be made as to whether or not visitors would take more, the same, or less time to travel to the area than to appreciate its attractions.
The second step in targeting a market geographically is to take the above estimates of attracting power and estimate the distance, travel time and travel expense for someone to drive or otherwise reach the destination. From this a radius of potential markets can be drawn with the area at the center.
The third step in this four-step process involves using a map. The maximum distance that people would be willing to travel is estimated and towns and cities within these boundaries are identified. It is important to consider also the tourists who might stop en route to another destination. An examination of tourist flows can uncover this data.
In the final step the potential competition for each geographic segment is identified. If it is determined, for example, that tourists from a particular city will drive up to 320 kilometers to vacation, then be sure to examine all other competing destinations up to 320 kilometers from the area. The destination area under development consideration can be compared to the others in terms of number and type of attractions. This may allow us to eliminate certain market segments because of the strength of the competition.
Time and money permitting, it is also possible to survey existing tourists as to where they come from in order to establish the attracting power of the area.

Psychographic segmentation. While demographic segmentation divides the market into segments based on socioeconomic characteristics, psychographic segmentation divides tourists on the basis of personality. Segments are identified in terms of:
- Why does the tourist travel?
- What does the tourist like to do on vacation?
A demographic segment of the market can be thought of as a skeleton that provides the framework and shape of the visitors. Describing the segment in psychographic terms is like adding the flesh to the skeleton; it completes the features and makes the tourists recognizable.
Behavioral segmentation. Segmenting a market on the basis of the behavior of the visitors would cover such things as how they traveled to the area, how many were in the party, when the trip was taken, when the decision to travel was made, and how long the trip was.
Competition
It is vital that a realistic assessment be made of competing destinations in order to determine the future numbers of expected tourists. A competing destination is one that seeks to attract the same tourists as the destination under development. Ideally, each competing destination would be subjected to the same level of analysis as that being developed.
Future trends. A variety of secondary sources of information exist that identify changes in the marketplace. Many of these are listed in Appendix A. From documents that cover changes in the segments of the market being attracted, it can be seen which segments are growing, changing or declining. Appropriate changes can then be made in the forecast of future tourist numbers.
The end result of this will be a profile of the numbers and types of tourists expected in the future.
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