Tourism Marketing - Tourism: Principles, Practices, Philosophies - page 422

E GLOBAL INSIGHT E

Emerging Markets
A s the name implies, emerging markets are those that are

relation to the capacity of traditional destinations and
transportation systems. One of the greatest challenges facing the
world's tourism industry will be to develop the facilities to meet
the demands from these three emerging markets.

beginning to be recognized for their significance to tourism.
Currently China, India, and Brazil are starting to establish
themselves as major new markets of the future. Although these
countries have had large populations for many years, it is only
since the beginning of the twenty-first century that their
sustained economic growth has created large numbers of
individuals with sufficient income and education to support the
growing desire to see the world. Indeed, the number of potential
travelers from these countries is staggering when examined in

DISCUSSION QUESTIONS

1. What does the UNWTO predict will happen with China, India,

and Brazil tourism markets?

2. What other countries are emerging as strong tourism

markets?

Figure 19.1 shows the phases that a new product goes through from inception to decline: (1)
introduction, (2) growth, (3) maturity, (4) saturation, and (5) decline. Because of the rapidly changing
consumer lifestyles and technological changes, the life cycle for products and services has become
shorter, but the product life cycle remains a useful concept for strategic planning. Each stage of the
product life cycle has certain marketing requirements.

Introduction

The introductory phase of the product's life cycle requires high promotional expenditures and
visibility (the most productive time to advertise a product or service is when it is new). Operations
in this period are characterized by high cost, relatively low sales volume, and a promotion program

Sales Volume

Profit Margins

Introduction Growth Maturity Saturation Decline

Figure 19.1

Time

Product life cycle.