Tourism Supply - Market Structure           
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Prideaux, B. 2000. "The Resort Development Spectrum - A New Approach to Modeling Resort Development." Tourism Management 21:225-240.

This paper proposes a new model for the development tourism destinations, the Resort Development Spectrum. The model builds on the broad tourism destination life cycle research field. The Resort Development Spectrum model is unique in that it is based on the operation of the market and focuses specifically on the operation of the supply side. Different phases of the Resort Development Spectrum are characterized by different equilibrium points between demand and supply. At each phase of the spectrum different supply characteristics exist for example in the provision of accommodation, transport facilities, number of recreation facilities, type of entertainment venues or level of promotion activities.

Borooach, V. K. 1999. "The Supply of Hotel Rooms in Queensland, Australia." Annals of Tourism Research 26(4):985-1003.

The papers examines the supply decisions of hotel and motel owners with respect to guest rooms. This decision is hypothesized to depend upon earnings per room, room occupancy rates, and the rate of interest. The reaction of hoteliers to changes in the values of these particular variables is modeled econometrically for the 1986-94 period. The supply of guest rooms was strongly responsive to increases in earnings, but was less influenced by increases in room occupancy rate or by changes in interest rate. The author argues that the present study suggests that it is likely that, in most regions, in determining supply responses, room prices will play the major role and that room occupancy rates will be assigned a minor part.

Sinclair, M. T. and M. Stabler. 1997. The Theory of Tourism Supply and Its Market Structure. In The Economics of Tourism. New York, Routledge: 58-94

This chapter focuses on the supply of tourism from a neoclassical economics perspective and the market structure of the four market sectors: accommodation, transport and intermediaries. It discusses the various neoclassical economic concepts of perfect competition, contestable markets, monopoly, monopolitistic competition and oligopoly, and what characteristics of each the tourism market sectors exhibit. It concludes with a discussion of a number of factors of tourism supply including: number and size of firms; degree of market concentration and level of entry / exit barriers; economies and diseconomies of scale and economics of scope; capital indivisibilities, fixed capital and associated fixed costs of operations; price discrimination and product differentiation; and pricing policies.

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