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Income Effect - Due to a decrease in real income caused by the rising inflation rate of Medical healthcare, people are less willing to spend money on medical services

Quantity Demand and price of related goods - Singapore is less price competitive compared with other countries, thus people tend to travel to other countries to get their medical services at a cheaper price.

Spillovers/Externalities - With the increasing number of plane crashes, people are not as willing to travel overseas, which affects medical tourists to be less likely to travel to Singapore for medical healthcare.

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Concepts:
- Income effect (The increase in income of the Chinese and Indians has led to an increase in Chinese and Indian tourists.)
- Elasticity (Tourism is a luxury good, hence the demand for tourism is income elastic.)
- Government policies (STB's efforts to draw visitors from China.)
- Price of related goods (Slowdown could be due to intense competition from other countries in the region, like South Korea and Japan.)

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Fuelled by a surge in visitors from two of the world's most populous nations, Singapore received 7 per cent more international visitors in June this year, compared with the same month last year.

"This was driven by good growth rates from some top source markets such as China and India," said Singapore Tourism Board (STB) yesterday.

In June this year, 221,373 Chinese tourists visited Singapore, a 35 per cent rise from June last year. There were 111,988 visitors from India during the same period - a 9 per cent rise according to STB figures released yesterday.

Chinese tourists made up nearly a fifth of the more than 8 million visitors to Singapore in the first half of this year.

Ngee Ann Polytechnic senior tourism lecturer Michael Chiam said the rise in Chinese tourists could be a result of STB's efforts to draw visitors from secondary Chinese cities like Chengdu, Xiamen and Chongqing.

While tourist arrivals have gone up, the rate of growth has slowed.

The 7 per cent rise in tourist arrivals for June pales in comparison with the 17 per cent rise in visitor arrivals in March this year from March last year.

Mr Chiam said the slowdown could be due to the "intense competition" from other countries in the region, like South Korea and Japan. The strong Singapore dollar may also have made Singapore less attractive than other countries, he added.

STB did not give tourist receipt figures for June, but did so for the first quarter of this year.

While visitor numbers rose 14 per cent from January to March this year, compared with the same period last year, tourist receipts grew just 2 per cent to reach $5.4 billion.

Spending on sightseeing, entertainment and gaming fell 21 per cent to $1.08 billion. An STB spokesman said the fall was "due largely to the decline in gaming revenue as reported by the integrated resorts".

But a significant increase in tourist spending on shopping, accommodation and food and beverage compensated for the fall, she said.

Spending on shopping increased by 25 per cent to $1.2 billion, and accommodation grew 7 per cent to $1.17 billion. Spending on food and beverage rose 14 per cent to $606 million.

Said Mr Chiam: "In the past, we had the high rollers and big spenders who bought luxury goods. Now, it's more of the budget-conscious people who like to travel, but they are, perhaps, cautious about spending, given the economic forecast."

The STB spokesman said the hotel room revenue for gazetted hotels, which are mainly in prime or tourist areas and charge only nightly rates, was estimated at $0.8 billion for the first quarter, a year-on-year growth of 4.6 per cent.

While the average occupancy rate has gone up, the revenue for each available room dropped by 2.3 per cent year-on-year due to a drop in average room rate.

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Fuelled by a surge in visitors from two of the world's most populous nations, Singapore received 7 per cent more international visitors in June this year, compared with the same month last year. "This was driven by good growth rates from some top source markets such as China and India," said Singapore Tourism Board (STB) yesterday.

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Income effect > Average disposable income of travelers have increased compared to last year. They now have more money and the luxury to travel more often. The higher the amount of disposable income, the more people are able to travel. Hence, leading to an increase in the number of tourists.

Quantity demanded increase and price of related goods > Average price to travel has decreased over the years, airfares has decreased as there are more airplanes available. Increase in availability (supply), has caused supply to exceed demand. Hence, leading to the decrease in prices of airfares. Therefore, more people are then willing to travel as the cost is cheaper.

Price of related goods (complements) > Increase in number of tourists, causes an increase in the demand for hotel rooms. This leads to a higher demand for hotel rooms compared to supply available in Singapore. Hence, there is an increase in prices of hotel rooms as this will decrease the demand, bringing the demand and supply to market equilibrium. Hence, with the increase in number of tourists in Singapore, the hotel rates have also increased this year.

Teacher's comments: ( this is good point to note. Except that if you have any an article to support this…)
( this may be more linked to budget air vs normal airlines …..cheaper for budget…discuss with respect to inferior goods vs normal goods, and relate to increase in tourism…look for suitable articles )
( consider the fact that the increase in the demand for hotel rooms is due to the increase in the no. of buyers, in this case increased no. of tourists. Not categorizing it due to prices of related goods…..you will discuss this if you are comparing air bnb and hotel rooms…prices of related goods (substitute goods)----this can be discussed  with Kelicia’s article)

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Excluding expenditure on sightseeing, entertainment and gaming, China, Indonesia and India were the top three markets that contributed to tourism receipts, STB said.

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SINGAPORE: Four million international visitors came to Singapore in the second quarter of 2016 - up 11 per cent compared to the same time period last year, according to the latest Tourism Sector Performance report by the Singapore Tourism Board (STB).

Tourists also shelled out more during this period, according to the report, released on Tuesday (Nov 8). Tourism receipts totaled S$6.1 billion in the second quarter of this year - an increase of 20 per cent year-on-year.
SHOPPING TOPS TOURISM RECEIPTS Tourists were happy to shop their hearts out while holidaying in Singapore, spending S$1.513 billion - an increase of 65 per cent compared to the same period last year. Accommodation, as well as food and beverage expenditures grew as well. Visitors spent S$1.416 billion on accommodation - up by 30 per cent, and spending on food and beverages climbed by 41 per cent to S$762 million. Conversely, tourists spent S$1.283 on sightseeing, entertaining and gaming, a decline of 11 per cent.
Gazetted hotel room revenue also saw growth, increasing by 2.1 per cent year-on-year to reach S$0.8 billion.

The report, which included statistics for the first half of 2016, said international visitor arrivals into Singapore saw year-on-year growth for consecutive months. A total of 8.2 million visitors arrived in Singapore from January to June 2016, a 13 per cent increase compared to the same time period in 2015, according to STB. China, Indonesia, India, Malaysia and Australia were Singapore's top five international visitor-generating markets in 2016. They accounted for 55 per cent of total international visitor arrivals in the first half of this year, STB said.
Excluding expenditure on sightseeing, entertainment and gaming, China, Indonesia and India were the top three markets that contributed to tourism receipts, STB said. Chinese visitors spent S$882 million, Indonesian tourists shelled out S$645 million, while Indian tourists spent S$450 million in Q2 2016 - excluding sightseeing, entertaining and gaming - according to the report.
The number of Chinese visitors to Singapore jumped by 55 per cent in the same time period. Additionally, Indonesia posted a 7 per cent growth in terms of visitor arrivals.
Among the top 10 tourism receipt markets, China, India and Indonesia also registered the highest absolute year-on-year growth in tourism receipts, excluding sightseeing, entertainment and gambling, STB added.

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11% rise in international visitor arrivals to Singapore in Q2: STB

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Excluding expenditure on sightseeing, entertainment and gaming, China, Indonesia and India were the top three markets that contributed to tourism receipts, STB said. Share on Facebook Share on Twitter Share via E-Mail SINGAPORE: Four million international visitors came to Singapore in the second quarter of 2016 - up 11 per cent compared to the same time period last year, according to the latest Tourism Sector Performance report by the Singapore Tourism Board (STB).

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Mistake of Ignoring Secondary Effects - Collaboration of Norway Tourism Agency & Disney to create film (Frozen) causing high influx of tourists.

Supply & Demand of fjords - Due to the Frozen movie as little countries have fjords in huge numbers like Norway.

Elasticity of whether changing different variables (due to climate change/other changes) and how responsive people are towards these changes.

Oligopolistic market structure of Northern Lights, as only a few countries in the extreme north have them.

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Northern Lights are one of the attractions that draw tourists to Northern Norway. Photo: Jan-Morten Bjørnbakk / NTB scanpix

Norway's tourism industry had a banner year in 2016, thanks in large part to the Tromsø region.

Troms County Municipality had the country's biggest tourism increase, attracting 32 percent more tourists from abroad than last year.

Northern Norway has experienced a strong increase in guests from the US, Asia and southern Europe. Numbers are also up slightly among British and German tourists.

Norwegians who holiday elsewhere in the country represent the largest tourist group, followed by Germans, Swedes, Danes, Brits and the Dutch.

Nationally, Norway saw an 11 percent increase in tourism, measured by the number of overnight stays.

"We are probably best known for the north, mountains and fjords, but we have wonderful experiences to offer all over Norway. We want more tourists, who will spend even more money," Minister of Trade and Industry Monica Mæland said in a press release.

The government is expected to unveil a new tourism strategy early in the new year.

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Norway's tourism boom shows no signs of slowing down

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Northern Lights are one of the attractions that draw tourists to Northern Norway. Photo: Jan-Morten Bjørnbakk / NTB scanpix Norway's tourism industry had a banner year in 2016, thanks in large part to the Tromsø region. Troms County Municipality had the country's biggest tourism increase, attracting 32 percent more tourists from abroad than last year.

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Concepts: Demand and Supply (Taste and Preferences) like how business travellors prefer apartments to hotels. however, residents are opposed to apartmens being full-time airbnb which affects locals who want to purchase apartments and inconsistent neighbours). Due to the increasing demand of airbnb apartments, more apartments are converted to airbnb, causing locals to be unable to purchase those apartments. Due to such conflicts, governments limit the number of apartments listed through airbnb and impose hefty fines on people through airbnb.

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BUSINESS travellers are embracing Airbnb more and more. New data from Concur, a travel-expense firm, show that the number of corporate trips booked through the home-sharing site grew by 44% in the second quarter of 2016 compared with a year earlier. Airbnb itself estimates that 10% of its bookings are now for work rather than pleasure.

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According to Concur, the top three cities for Airbnb business travel, in terms of the amount expensed, are San Francisco, London and New York. That raises an interesting question. Two weeks ago Andrew Cuomo, New York's governor, signed legislation allowing the state to impose hefty fines on people who rent out their properties illegally through Airbnb. Although there are exceptions, in essence the intention is to weed out hosts who let whole apartments, rather than just a room in their home. In San Francisco, meanwhile, the firm has agreed to try to limit the number of whole apartments that are let through the site. (Like New York, the city has no problem with house sharing.) London is generally more positive about the service-earlier this year Boris Johnson, then the city's mayor, praised the firm for "helping to promote the very best of what London has to offer". But even there, some local councils, such as Westminster, which covers much of the tourist district, are threatening to be more stringent in enforcing short-term-let regulations.

Given that all three cities, to a greater or lesser extent, are trying to clip Airbnb's wings, what effect will that have on business travel? Presumably it will be hit hard. Backpackers and weekend tourists might not mind camping out in a family's back bedroom, but those preparing for client meetings and conferences will. Which is a shame, because staying in a local apartment makes a nice change for those used to a slideshow of indistinguishable hotel rooms.

Residents throw two accusations at Airbnb. The first is that living next door to an apartment offered for short-term let can be miserable. Having an endless stream of tourists on the other side of a wall, getting up to the kind of noisy, late-night shenanigans to which holidaymakers are prone, is not a recipe for a peaceful life. So in this regard encouraging more business travellers would, in fact, be a boon. (Road warriors may drink late into the night, but this is usually to cope with their lonely existence, rather than because they want to prolong the party.)

The second is that, as more residences are converted into full-time Airbnb accommodation, so locals are forced out of the neighbourhood. This is more difficult to argue against, other than to suggest that the kinds of areas that business people often stay in-mid-town Manhattan, say, or the City of London-tend not to be residential in the first place. Still, plenty more corporate travellers prefer to experience somewhere with a bit more soul, like the West Village or Notting Hill, where concerns about lost communities are all-too real.

So will Airbnb lose business trade in those cities that decide to clamp down on it? Probably most towns will reach some kind of compromise. Skift, a travel-industry website, has reported that Airbnb and New York are already trying to thrash out a deal, for example. So much will depend on where the line is drawn. But it doesn't necessarily look rosy for the firm. Berlin brought in probably the strictest rules of any big city earlier this year, which has led to a big fall in the number of professional Airbnb hosts. It is no coincidence that, according to Concur's data, use by business travellers grew 170% between the first quarter of 2015 and the same period in 2016-before the regulations were enforced-but has seen no growth at all since.

Airbnb is a wonderful tool. It provides much needed competition to hotels, and often helps bring tourist dollars to local businesses that might otherwise be squirrelled away in hotels' bank accounts. But if there is a lesson for the firm, it is that it cannot entirely ignore the concerns of cities and residents. It must be a partnership.

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Business travellers will be hit hardest by the crackdown on Airbnb

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BUSINESS travellers are embracing Airbnb more and more. New data from Concur, a travel-expense firm, show that the number of corporate trips booked through the home-sharing site grew by 44% in the second quarter of 2016 compared with a year earlier. Airbnb itself estimates that 10% of its bookings are now for work rather than pleasure.