An analytical problem to reduce risk by investing and promoting

Abstract

Investment and promotion decisions in tourism are made on the basis of possible temporary visitor markets with purchasing power. An example may hail this approach. At a seminar held a few years ago by the Travel Committee of the European Economic Community The aim of the project was to estimate possible travel based on the construction and delivery of new aircraft and future investment in tourist accommodation plant, Mr. C. Everett Johnson, associated with consulting firm Kerr and Foster, Inc. noted the following: If at present only two Boeing 747 aircraft are sold, with a configuration of 400 seats each and assuming a 50% usage of their seating capacity, and to operate from Europe with passengers staying an average of 17 days and of which 70% would use hotel rooms, then 4,760 additional rooms would be required, of which 75% would be tourist hotels (Ramada Inn type) and 25% luxury hotels (Eurobuilding type).