Using visitor and establishment surveys, this thesis analyzes the AI travel mode in the perspective of its demand and supply issues in the tourism dependent economies, with special reference to the economy of the Balearics. It was found that, German, British and Spanish tourists dominate the markets for AI tour every year in the Islands, with the first two occupying two-thirds of the AI arrivals while the Spaniards account for more overnight stays. More than half of the respondents have indicated that, this is not the first time they bought AI trip to Majorca and it is not the last time, showing that there is a considerable potential market for the AI holidays. Testing for the equality of means expenditure per tourist per day between the genuine AI tourists and the accidental AI tourists, it was realized that, there was no statistical difference between their spending behaviors. Moreover, AI tourists to Majorca attach more importance on the convenience and relaxation and economies of resources in the vacationing process. In 2006, 26% of Majorca accommodation capacity was dedicated to AI market, with majority of them found in 3-Stars. Most inputs were externally sourced with insignificant proportion of the income remaining in the local economy. It is almost impossible to get the whole tourism input from the local economy due to the natural endowment disadvantages associated with the islands, but encouraging local linkages involving the AI suppliers with the rest of the community is vital.
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