A Critical Analysis of how events contribute to destination community development.
Ayush Salhotra
Introtodestinationmanagement.pptxBX 3194: Destination Management and Planning
Introduction to Destination Management
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Lecture Objectives
To introduce and define the concepts of destination management
To describe the various types of DMO’s and their relationships
To identify and discuss the challenges associated with marketing and managing destinations
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The complexity of destination management
Destinations are multi-dimensional
How to reduce this to a short statement?
Local tourism businesses don’t all share the market interests
Will one slogan be relevant in all markets?
Tourism industry politics
Businesses want their product featured
Community support
DMOs have no control over delivery of brand promise
Pike, S. (2005). Tourism destination branding complexity. Journal of Product & Brand Management. 14(4): 258-9.
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What is a ‘Destination’?
A geographical space in which a cluster of tourism resources exist, and not necessarily a political boundary
A section of a political boundary
An entire political boundary
Across political boundaries
From continents to countries to states and provinces to cities to villages to purpose built resort areas to uninhabited islands
…a place at which visitors temporarily base themselves to participate in tourism related interactions and activities.
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A tourism Destination is:
The basic unit of analysis
A distinctively recognisable area with geographic or administrative boundaries that tourists visit and stay in during their trip
Where tourism revenue is significant, or potentially significant to the economy
Serviced by both private and public sector
A whole country, a region, an island, a village, town or city, or a self-contained centre or attractions
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Strategic Management and Marketing Objectives for Destinations
Enhance the long-term prosperity of local people
Delight visitors by maximising their satisfaction
Maximise profitability of local enterprises and maximise multiplier effects
Optimise tourism impacts by ensuring a sustainable balance between economic benefits and socio-cultural and environmental costs
Source: Buhalis (2000). Marketing the Competitive Destination of the Future; Tourism Management: 21; 97-116
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Destination marketing organisations
DMO
Any organisation, at any level, which is responsible for the marketing of an identifiable destination. This therefore excludes separate government departments that are responsible for planning and policy, and private sector umbrella organisations.
National tourism office (NTO)
State tourism office (STO)
Regional tourism organisation (RTO)
Convention & visitor bureau (CVB)
Local tourism association (LTA)
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What is destination management?
The coordinated management of all the elements that make up the destination:
Marketing to get people to visit in the first place
Delivery of services on the ground to ensure that expectations are met at the destination
Ensuring a suitable environment (physical, social and economic) in which to develop tourism
An ongoing process in which tourism, industry, government and community leaders plan for the future and manage a destination
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DMP Concepts
DMP is a management system that provides a tourism organisation with the tools to produce sustainable and competitive tourism in a destination
DMP is organised around defined visitor destinations, each with its own natural and unique tourism assets, and unique development, marketing, and management needs.
DMP is a step forward from traditional destination marketing roles and provides a more holistic and integrated approach to understanding the tourism potential of each destination, and the best methods of maximising that potential
Source: Dept of Resources, Energy and Tourism (2007). A National Framework for Best Practice Destination Management Planning.
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UNWTO (2007). A Practical Guide to Destination Management.
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Source: Dept of Resources, Energy and Tourism (2007). A National Framework for Best Practice Destination Management Planning.
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Destination Management Framework
Source: The Guide to Best Practice Destination Management. ARTN Tourism 2020
Research & Monitoring Investigate both supply (what the destination has to offer) and demand (what the market is demanding). Analyse the supply/demand balance & determine the best market fit for the destination. Work out the best way to monitor performance.
Monitoring performance, and evaluating and reviewing outcomes should be a constant component of the destination management process. It should include on-going reporting and communication, a process for assessing its impact and a program of review and renewal.
> Consultative Planning Contemporary tourism planning needs to engage a broad cross section of destination stakeholders. These include community groups, industry associations, all levels of government and the media.
> Destination (Experience & Product) Development Is about creating and maintaining visitor experiences, saleable products and services that meet visitor needs and expectations, reflect the destination brand and facilitate the elements of a journey within a destination. Development may not be restricted to hard infrastructure such as transport, accommodation and attractions. A destination might require investment in soft infrastructure such as interpretation to make experiences more accessible to and interesting for the visitor.
Consider existing products and experiences; identify gaps in the tourism product and experience offering; and discover opportunities to attract investment to develop new or to enhance existing product or experiences.
> Marketing & Promotion.
Is about growing visitor and community awareness and demand for the destination in line with the destination brand. It involves clearly and effectively communicating what’s on offer, the unique proposition both before visitors arrive and once they are in the destination. Marketing and promotion are also about providing a sales opportunity for the destination.
Importantly, marketing should include communication with internal stakeholders and community. This ensures that tourism remains in focus; the destination management process remains a priority; and destination managers can keep abreast of their progress.
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DMP Benefits
Improved destination competitiveness
Increased visitor satisfaction
Economic, social and environmental sustainability
Effective partnerships
Continuous improvements
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Challenges to destination marketing process
Fragmented nature of tourism stakeholders who are responsible for components of the total offer
Because of fragmented nature, no single agency can control and deliver a rich combination of tourism products and services
Executing a collaborative strategy at the destination level depends on a great deal of co-ordination, communication and census building, which often requires negotiation and sometimes causes confrontation
Wang (2008). Collaborative Destination Marketing: Understanding the Dynamic Process. Journal of Travel Research 47(3); 151-166
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Competition vs Cooperation Dilemma
Wang (2008). Collaborative Destination Marketing: Understanding the Dynamic Process. Journal of Travel Research 47(3); 151-166
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DMO’s and Collaboration
a macro business perspective is required for the tourism industry to understand the relationship between individual benefits and common benefits to the destination and to focus on the competitive advantage of the destination to create a win-win situation for all the stakeholders involved.
Given the priority of individual businesses on their own benefits, this educational responsibility has to fall on the shoulder of certain organizations that can represent all the stakeholders in the destination, such as the local CVB/DMO.
This educational process has to be long term and continuous to reinforce the cooperative mindset within the destination so that they are able to see both the “forest” and the “trees.”
Wang (2008). Collaborative Destination Marketing: Understanding the Dynamic Process. Journal of Travel Research 47(3); 151-166
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Marketing multi-attributed destinations in dynamic and heterogenous markets
The supply-side perspective:
Destinations commonly contain a myriad of small family owned businesses
…and a diverse and often eclectic range of tourism resources
…over which the DMO has no control
…but must somehow present to the market in a way that interests target consumers, and appeases tourism operators and intermediaries
DMO and stakeholder opinions on how to do this are not always congruent
Politics of DMO decision making can inhibit marketing theory
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Marketing multi-attributed destinations in dynamic and heterogenous markets
Demand-side perspective:
Markets are not homogenous in terms of needs
Heterogenous and dynamic
The greatest challenge facing DMOs is cutting through the noise of the market and getting noticed at travel decision time
How can a DMO produce succinct messages that i) encapsulate the essence of place, ii) differentiate the destination from the myriad of competitors offering the same features, iii) at the time households are making holiday decisions, and iii) be meaningful to heterogeneous and dynamic markets?
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Challenges facing DMO’s
Source: Gretzel et al (2006) Searching for the Future: Challenges Faced by Destination Marketing Organizations.
Journal of Travel Research; 45(2) 116-126
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Effective Destination management
Delivers quality of visitor experience and exceeds expectations
Contributes to the longer term prosperity and development of the local community – jobs, income, amenities etc
Improves the profitability of the business sector – the lifeblood of any destination’s tourism industry
Ensures a responsible and sustainable balance between economic, socio-cultural and environmental impacts
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Destination competitiveness
Not yet a widely accepted causal model of destination competitiveness
Agreement the construct comprises economic, social, cultural and environmental dimensions.
A competitive destination is one that features profitable tourism businesses, an effective market position, an attractive environment, satisfactory visitor experiences, and supportive local residents.
Difficult to sustain without effective organisation
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