The tourism industy can be related to cross elasticity of demand and income elasticity. Income elasticity is a measurement of the change in income and the time the quanity demanded for products and services witll increase or decrease. Gailloreto (2012) defines tourism as " accommodation, transportation, restaurant, retail, museum, outdoor adventure, car rental, taxi, performing arts, heritage, culture, sports, festivals, events, wine and beer tasting, golf, spa and other sectors"(P3). Currently the tourism industry in Victoria, BC is on a downward slope as people are unable to afford to travel to Canada as it is expensive. Gailloreto (2012) states that Victoria is working with "the Tourism Industry Association of Canada, to make our border more amenable to travel while keeping it safe"(P7). Canada is a expensive country to travel to and Victoria has recongized this and are working to find a way to decrease the air fares (Gailloreto, P7). Victoria is implementing campaigns and the media to get Canada's name to all of the tour operators and travel agents (Gailloreto, P8). By Victoria working with all types of advertising and different campigns to promote the tourism in Canada it will allow tourism to increase.
The tourism industry in Victoria has elasticity degree of elastic as there are still people travelling to Victoria just not as many as there could be. In the income elastic is normal products as travelling is considered a luxury and the coefficient is < than zero. Income has an affect on if people can afford to travel or if they can only afford to have the nessessities. Below is a diagram of income elasticity.
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