The evolution of tourism demand and supply: A regional policy study

The Life Cycle (LC) approach is considered as a useful tool for analysing the development of destinations and the evolution of market segments. The Island of Sardinia (Italy) case study highlights the usefulness of the LC approach using tourism demand and supply indicators for approximately 50 years. One of the aims of this paper is to verify the lag between tourist consumption and tourist supply. An econometric and a descriptive approach have detected heterogeneities between domestic and international tourism LC. The paper also shows that the dynamics of tourist demand are strictly dependent on the local policy-maker’’s actions and socio-economic changes. The development of the accommodation sector and tourists’’ preferences are in fact triggered by several factors, such as transportation, advancements in information technology and implementation of public policies.