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Tourism Planning, Development, and Social Considerations

CHAPTER

Learning Objectives

Identify the factors that determine the success of a tourism destination.

Relate tourism planning to tourism policy.

Discover what the goals of tourism development should be.

Recognize some serious barriers to tourism development must be overcome if a desired growth is to occur.

Learn the political and economic aspects of development including those related to developing countries.

Appreciate the importance of architectural design and concern for heritage preservation, local handicrafts, and use of indigenous materials in creating tourist facilities.

Relating Tourism Planning (Ch16) to Tourism Policy (ch15)

SIMILARITIES

Both deal with future development of a tourism destination or region

Both emphasize strategic dimensions of managerial action – although planning must also address tactical concerns

DIFFERENCES

Policy formulation is definitely “big picture” while much of planning is characterized by attention to detail

Relating Tourism Planning to Tourism Policy (continued)

SIMILARITIES

Policy formulation is creative, intellectual process, while planning is a more constrained exercise

Policy, particularly its visioning component, has long-term strategic emphasis, while planning tends to be more restrictive in time

A one-year planning cycle is not uncommon, although 3-5 year plans are possible

In contrast, destination visions may have a 5, 10, 50, or even a 100 year time horizon

DIFFERENCES (continued)

Relating Tourism Planning to Tourism Policy (continued)

SIMILARITIES

Policy formulation must allow for unseen circumstances and technologies; planning tends to assume current conditions and technologies, with allowances for predictable or evolutionary change

DIFFERENCES (continued)

Policy formulation tends to emphasize systematic determination of “WHAT” should be done in long-term tourism development; planning tends to emphasize the “HOW” for achievement of specific destination goals

Planning for a competitive/sustainable destination framework

Good tourism planning must understand the factors that determine the success of a destination

Crouch, G. & J. R. B. Ritchie (1999) outlines 9 major components

The core resources and attractors

The supporting factors and resources

The qualifying and amplifying determinants

Destination policy, planning and development

Destination management

Comparative advantage

Competitive advantage

Competitive Environment (Micro)

Global Environment (Macro)

THE RITCHIE/CROUCH MODEL

Planning for a competitive/sustainable destination framework

The core resources & attractors

The fundamental reasons why visitors choose a destination (7 reasons)

Physiography/climate,

culture & history,

market ties,

activities,

special events,

entertainment, and

the tourism superstructure

Planning for a competitive/sustainable destination framework

The supporting factors and resources (The pillars)

Provides a functional foundation that facilitates tourism and enhances destination well-being:

Infrastructure

e.g., water supply, sanitation, communication systems, public facilities, etc.

Accessibility

airline industry; entry visas and permits; route connections

Entrepreneurial efforts of tourism operators, political support

Facilitating (human) resources

e.g., availability and quality of local human, knowledge and capital resources

Hospitality, Enterprise, and Political will

Planning for a competitive/sustainable destination framework

The qualifying and amplifying determinants

Represents matters whose affect on the competitiveness of a destination is to define its scale, limit, or potential:

Degree of safety/security

Awareness/image

Location

Cost/value

Carrying capacity

Interdependencies

Planning for a competitive/sustainable destination framework

Destination policy, planning and development.

Represents a strategic or policy-driven framework for the planning and development of a destination  helps ensure tourism development:

System definition

Philosophy/values

Vision

Positional/branding

Development

Competitive analysis

Monitoring and evaluation

Audit

Planning for a competitive/sustainable destination framework

Destination management.(DMO)

Focuses on the activities that implement the policy and planning framework on a daily, operational basis (9 activities):

Effective organization

Marketing of the destination

Ensuring a high-quality visitor experience

Gathering and disseminating information

Human resource development

Obtaining adequate financing and venture capital

Effective visitor management

Ongoing resource stewardship

Being prepared to manage unexpected crises.

Planning for a competitive/sustainable destination framework

Comparative versus competitive advantage.

Comparative advantage

concerns the “resources” or a destination’s factor “endowments,” both naturally occurring as well as created.

Seven (7) broad categorical endowments:

Human resources,

Physical resources,

Knowledge resources,

Capital resources, and

Infrastructure and tourism superstructure

Historical and cultural resources

Size of the economy

Planning for a competitive/sustainable destination framework

Comparative versus competitive advantage.

Competitive advantage

concerns the effectiveness with which the destinations resources are utilized or deployed,

thus enhancing its relative probability of success relative to other competing destinations

Planning for a competitive/sustainable destination framework

Example of Comparative versus Competitive advantage.

Singapore and Russia stand at opposite ends of the comparative/competitive advantage continuum.

Russia possesses enormous physical, historical, and cultural (i.e., naturally occurring or inherited) resources:

Yet lacks the human, knowledge, and capital resources as well as the infrastructure and tourism superstructure (i.e., created resources) required to bring these assets to the market.

By comparison, Singapore’s natural, historical, and cultural resources are inferior to Russia but its endowments in the other factors of production surpass those of Russia.

In addition, however, Singapore is able to apply its greater competitive advantages more effectively. Perhaps most notable is

Singapore’s reputation for service in its hotels and airlines.

Singapore is safe, clean, and hospitable.

Its enterprises are reliable,

Its prices are competitive in terms of value, and the country functions as a highly tuned nation.

Comparative Advantage

Competitive Advantage

Planning for a competitive/sustainable destination framework

Competitive (Micro) Environment versus Global (macro) Environment.

Competitive (Micro) Environment

Part of the tourism system and the entities within that system that directly affect the goals of each member of the tourism system

This could impact the individual tourism firms or a collections of tourism organizations

Planning for a competitive/sustainable destination framework

Competitive (Micro) Environment versus Global (macro) Environment.

Global (Macro) Environment

The vast array of phenomena that broadly affect all human activities that are not specific to the travel and tourism industry

E.g., Politics, terrorism, natural disasters, etc.

THE RITCHIE/CROUCH MODEL

Why tourism planning is important?

The decision to develop or expand tourism in a destination must be studied carefully

The socioeconomic benefits are powerful

Tourism may be accompanied by detrimental consequences

Tourism is NOT a panacea to overcome all destination problems.

The following is a list of benefits and disadvantages:

Provide employment opportunities

Generates foreign exchange

Increases incomes

Increases GNP

Development of tourism infrastructure helps stimulate local commerce and industry

Justifies environmental protection and improvement

Increase governmental revenues

Diversifies the economy

Creates favorable worldwide image for the destination

Facilitates modernization

Provides tourist, recreational facilities for local population

Provides foreigners opportunity to be favorably impressed by little-known nation or regions

Advantages of Tourism

Disadvantages of Tourism

Develops excess demand

Creates leakages so economic benefits do not accrue

Diverts funds from more promising forms of economic development

Creates social problems from income differences, social differences, introduction of prostitution, gambling, crime

Degrades natural physical environment

Degrades cultural environment

Poses the difficulties of seasonality

Increases vulnerability to economic and political changes

Adds to inflation of land values and prices of local goods, services

Disadvantages of Tourism

Overdevelopment can generate soil and water pollution

Too many tourists can create the following problems:

Auto and bus traffic congestion

Inadequate parking

Hotels dwarfing the scale of historic districts

Displacement of local community-serving businesses with tourist-serving firms

Leading to degradations rather than improvement of quality of life

The Planning Process

Seven Step Planning Process:

Define the system and formulate objectives

Gather data

Analyze and interpret

Create the preliminary plan

Approve the plan

Create the final plan

Implement the plan

An Overview of the Tourism Planning Process

STAGE 1

Define

System

Ensure definitions for policy formulation and destination planning are consistent

STAGE 2

Gather

Necessary

Data

Much data used for policy formulation may be helpful for the planning process; additional and more detailed data required

STAGE 3

Analyze &

Interpret

Data

Useful to relate data to specific facilities, events, activities, programs that impact factors that determine, influence destination

success

STAGE 4

Create

Preliminary

Plan

Plan should detail nature of facilities, events, activities, programs that will deliver the unique destination experience to enhance competitiveness of destination within strategic market segments

STAGE 5

Approve

the

Plan

Critical to ensure that where approval is required no relevant stakeholders are overlooked

STAGE 6

Create

the

Final Plan

Level of detail becomes increasingly rigorous and directly related to specific geography, legislation, financing, and timing of the

“real world”

STAGE 7

Implement

the

Plan

Allocates responsibility for development actions to specific individuals, organizations, defines timing of actions, establishes contingencies for unexpected occurrences.

Monitors, follows up, and evaluates

Tourism Plan Examples

Tourism Master Plan – Vancouver Plan

Opportunity for public and private sector to come together and discuss the tourism plan for their community

Four Key areas:

Marketing: Develop a unified tourism industry, allowing collaboration on marketing where appropriate with a focus on tourism customers.

Planning: Encourage a regional Tourism Master Plan with a focus on stakeholder interests.

Policy: Establish a forum to develop industry consensus with a focus on influencing policy makers.

Product: Build energy through product development with a focus on attracting investors.

http ://vimeo.com/ 68405297

Goals of Tourism Development

Provide framework for raising the living standard of people through economic benefits of tourism

Develop infrastructure and provide recreation facilities for visitors and residents alike

Ensure development within visitor center and resorts is appropriate

Establish development program consistent with cultural, social, and economic philosophy of government and people of region

Optimize visitor satisfaction

Tourism and “Creative Destruction”

Background: To achieve profit, capitalists engage in a production cycle whereby investments are made in the factors of production (e.g. labor), a commodity is produced, sold and a profit generated.

This surplus value is then reinvested in the purchase of new inputs/products, thus starting the cycle of accumulation over again (Harvey, 1985)

The concepts of creation and destruction are implicit components in the production cycle.

Eg) Polaroid Camera  Digital Camera;

Eg) 8-Track player  Cassette player  DVD  “e”-music

Places that function as centers of accumulation and products, are created and ultimately destroyed. Their ultimate destruction comes about as new technological advances in telecommunications and transportation render traditional production centers obsolete.

Source: Mitchell, Clare J. A. . (1998). Entrepreneurialism, Commodification and Creative Destruction: a Model of Post-modern

Community Development Journal of Rural Studies, 14(3), 273-186.

Tourism and “Creative Destruction”

Application to Tourism:

A destination will evolve through five stages in the process of creative destruction:

Stage 1: Early commodification

Stage 2: Advanced commodification

Stage 3: Pre-destruction

Stage 4: Advanced destruction

Stage 5: Post-destruction

As the commoditized landscape continues to evolve, numbers of visitors escalate and a growing number of residents perceive an erosion of their community as problems of crowding, congestion or crime escalate.

The period of advanced destruction will occur only if residents are complacent and become resigned to the inevitability of ensuing change.

If left unchecked, significant investment will be made during this period to service the expanding tourist market.

For example, a major hotel development may appear to supplement existing small-scale accommodation. As investment levels rise, consumption levels increase exponentially

Source: Mitchell, Clare J. A. . (1998). Entrepreneurialism, Commodification and Creative Destruction: a Model of Post-modern

Community Development Journal of Rural Studies, 14(3), 273-186.

Why Destination Areas Rise and Fall in Popularity?

Destinations are as popular as ever. Why should destination executives/managers worry?

Destinations have a (product) life-cycle

Stanley Plog (1979, 2001)

Research question:

Why do destinations grow and fall?

His research is apart of the ICTA (Institute of Certified Travel Agents) for 20+ years

Personality traits determine travel patterns and preferences

Two personality profiles – Dependables and Venturers

Why Destination Areas Rise and Fall in Popularity?

Dependables (originally known as psychocentrics)

About 2.5% of the population can be classified as “dependable”

This group has similar personality traits such as:

Are somewhat intellectually restricted

Are cautious and conservative in their daily lives

Are restrictive in spending discretionary income

Prefer popular, well-known brands of consumer products

Face daily life with little self-confidence and low activity levels

Often look to authority figures for guidance and direction in their lives

Are passive and non-demanding in their daily lives

Like structure and routine in their relatively non-varying lifestyles

Prefer to be surrounded by friends and family

Why Destination Areas Rise and Fall in Popularity?

Ventures' (originally known as allocentrics)

About 4% of the population can be classified as “venturer”

This group has similar personality traits such as:

Are intellectually curious about and want to explore the world

Make decisions quickly and easily

Spend discretionary income more readily

Like to choose new products shortly after introduction into the marketplace

Face everyday life full of self-confidence and personal energy

Look to their own judgment, rather than authority figures, for guidance and direction

Are active and relatively assertive

Prefer a day filled with varying activities ands challenges, rather than routine tasks

Often prefer to be alone and somewhat meditative

Why Destination Areas Rise and Fall in Popularity?

Chapter Summary

Identified the similarities and differences between tourism policy and tourism planning

Reviewed and discussed the Ritchie/Crouch model of destination competitiveness and sustainability – 9 major components

The core resources and attractors

The supporting factors and resources

The qualifying and amplifying determinants

Destination policy, planning and development

Destination management

Comparative advantage

Competitive advantage

Competitive Environment (Micro)

Global Environment (Macro)

Chapter Summary

Advantage and Disadvantages of tourism

Seven step tourism planning process

Tourism and “Creative Destruction”

Why destination areas rise and fall in popularity? (Plog, 1979)

COMPETITIVE (MICRO) ENVIRONMENT

GLOBAL (MACRO) ENVIRONMENT

DESTINATION POLICY, PLANNING & DEVELOPMENT

Philosophy/

Values

Vision Audit

Positioning/

Branding

System

Definition

Development

Monitoring &

Evaluation

Competitive/

Collaborative

Analysis

DCSModel-colour(v12).ppt –©RITCHIE & CROUCH, FEB 2003

Awareness/Image

QUALIFYING & AMPLIFYING DETERMINANTS

LocationInterdependenciesSafety/SecurityCost/ValueCarrying Capacity

Hospitality

SUPPORTING FACTORS & RESOURCES

InfrastructureAccessibilityFacilitating ResourcesEnterprisePolitical Will

Competitive

Advantages

(resource

deployment)

* Audit & inventory

* Maintenance

* Growth and

development

* Efficiency

* Effectiveness

Comparative

Advantages

(resource

endowments)

* Human resources

* Physical resources

* Knowledge resources

* Capital resources

*Infrastructure

and tourism

superstructure

* Historical and

cultural resources

* Size of economy

DESTINATION MANAGEMENT

Resource

Stewardship

MarketingOrganization

Information/

Research

Visitor

Management

Human

Resource

Development

Finance

Venture

Capital

Quality

Service/

Experience

Crisis

Management

Entertainment

CORE RESOURCES & ATTRACTORS

Physiography

and Climate

Culture & History Market TiesMix of Activities

Special EventsSuperstructure

COMPETITIVE (MICRO) ENVIRONMENT

GLOBAL (MACRO) ENVIRONMENT

Competitive

Advantages

(resource

deployment)

* Audit & inventory

* Maintenance

* Growth and
development

* Efficiency

* Effectiveness

Comparative

Advantages

(resource

endowments)

* Human resources

* Physical resources

* Knowledge resources

* Capital resources

* Infrastructure
and tourism
superstructure

* Historical and
cultural resources

* Size of economy

Crisis

Management

DESTINATION POLICY, PLANNING & DEVELOPMENT

Philosophy/ Values

Vision

Audit

Positioning/

Branding

System

Definition

Development

Monitoring &
Evaluation

Competitive/

Collaborative

Analysis

Awareness/Image

QUALIFYING & AMPLIFYING DETERMINANTS

Location

Interdependencies

Safety/Security

Cost/Value

Carrying Capacity

Hospitality

SUPPORTING FACTORS & RESOURCES

Infrastructure

Accessibility

Facilitating Resources

Enterprise

Political Will

DESTINATION MANAGEMENT

Resource

Stewardship

Marketing

Organization

Information/
Research

Visitor

Management

Human

Resource

Development

Finance

Venture

Capital

Quality

of
Service/

Experience

Entertainment

CORE RESOURCES & ATTRACTORS

Physiography

and Climate

Culture & History

Market Ties

Mix of Activities

Special Events

Superstructure

COMPETITIVE (MICRO) ENVIRONMENT

GLOBAL (MACRO) ENVIRONMENT

Competitive

Advantages

(resource

deployment)

* Audit & inventory

* Maintenance

* Growth and
development

* Efficiency

* Effectiveness

Comparative

Advantages

(resource

endowments)

* Human resources

* Physical resources

* Knowledge resources

* Capital resources

* Infrastructure
and tourism
superstructure

* Historical and
cultural resources

* Size of economy

Crisis

Management

DESTINATION POLICY, PLANNING & DEVELOPMENT

Philosophy/ Values

Vision

Audit

Positioning/

Branding

System

Definition

Development

Monitoring &
Evaluation

Competitive/

Collaborative

Analysis

Awareness/Image

QUALIFYING & AMPLIFYING DETERMINANTS

Location

Interdependencies

Safety/Security

Cost/Value

Carrying Capacity

Hospitality

SUPPORTING FACTORS & RESOURCES

Infrastructure

Accessibility

Facilitating Resources

Enterprise

Political Will

DESTINATION MANAGEMENT

Resource

Stewardship

Marketing

Organization

Information/
Research

Visitor

Management

Human

Resource

Development

Finance

Venture

Capital

Quality

of
Service/

Experience

Entertainment

CORE RESOURCES & ATTRACTORS

Physiography

and Climate

Culture & History

Market Ties

Mix of Activities

Special Events

Superstructure