stagnation

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Stagnation

Peak visitor numbers arrd levels of associated facilities, such as available accommodation units, are attained during the stagnation stage, which is also sometimes referred to as the saturation stage. The problem of surplus capacity persists, prompting frequent price wars that lead to further product deterioration and bankruptcies, given the high fixed costs involved in the sector. One way that companies may respond to this dilemma is to convert hotel-type accommodation into self-catering apartments or even permanent residences. The affected destination may have a high profile and even iconic image, but this does not translate into increases in visitation due to the fact that the location is perceived to be 'out of fashion'. Indicative of stagnation, aside from the obvious equilibrium in the visitor intake curve, is the reliance on repeat visits by psychocentrically oriented visitors — the moribund destination is now virtually incapable of attracting new visitors. Although still fully integrated into international or national tourism systems, the area as a destination region is superseded by more fashionable and less deteriorated competitors.

The best examples of the stagnation stage are found in parts of the Riviera, such as Spain's Costa Brava, and in some areas of Florida and the Caribbean (e.g. the Bahamas" New Providence Island). Beyond the global pleasure periphery, the same condition is discernible in the recreational hinterlands that have developed within a one-day drive of large North American cities, including Muskoka (Toronto), the Laurentians (Montreal) and the Catskills (New York City).