ACRO Global Tourism Marketer

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David Posted 18 February 2018:

The thrust of this analysis of how the hotel market in Portland,ME - " ... the northernmost outpost of the Atlantic Seaboard, host to a six-month winter and minor league hockey. A small, third-tier city, with steady but slow economic growth..." - was able to double in size over 6 years via "induced demand."

Quoting the study's author:

"Supply-induced demand is largely a measure of one or several new hotels’ ability to consume some other hotel market’s lunch."

...the "other hotel markets" in this case being those of South Portland, Freeport, Portsmouth, Providence and Boston where travelers who before Portland's hotel boom couldn't find rooms there stayed instead.