Tourism
PP has specialist knowledge and experience in the delivery of business planning, investment analysis and supply-demand forecasting to the tourism sector. Through the use of econometric modelling, extensive data research and analysis is used to produce robust models that are used to plan and develop appropriate strategies.
KPP's expertise in the tourism sector is demonstrated by its 2006 Broome Accommodation Study, held in high regard within the sector and used by many in planning future developments in the Broome region. A link to this Tourism WA funded project is provided below:
In 2008 KPP completed a similar study for the Derby region, and in 2009 KPP completed the Kununurra Accommodation Study.
In addition to regionally focused projects, KPP has assisted a number of individual clients within this sector to make sound strategic investment decisions through audit processes, business case preparation, feasibility studies and strategic planning.
In August 2009 KPP completed the Kimberley LNG Tourism Impact Study for Tourism WA and the Department of State Development (DSD). This report is available from the DSD website.
Kimberley LNG Tourism Impact Study
Econometric modelling
Econometric modelling measures relationships between a dependant variable (e.g. profit) and explanatory variables (such as occupancy, marketing, yield etc) so that the drivers of the dependant variable can be quantified. It is highly relevant to the tourism sector, as in order to provide valid forecasts, statistically sound gap analysis, and supply and demand analysis based on microeconomic theory, econometric modelling is a key tool. The use of 'MS Excel' trend lines to develop forecasts is flawed; forecasts are based on the mean average of the past and makes no allowance for changes that may impact the future. Econometric modelling acknowledges that markets are dynamic and changing. Results from econometric models will therefore be more reliable, more accurate and provide greater confidence for investors.