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Destination Analysis UNIT 1: THE CONCEPT OF TOURIST DESTINATION Chapter objectives • Understand the general destination concept and the connection between the destination system and tourism • Explore the operation of the destination management as the tourist value chain • Identify and explain the necessities of tourist destination managementDestination ConceptThe characters of the destination, its concept, can be opened in the knowledge of its forming factorsand of the “behaviour”, nature of destination. In the conceptual estimation of destination differentstanding-points can be followed. In the whole,“Destination is a physical location where the tourist is spending at least one night. It is containingtourist attractions, products, relating services that are necessary to meet the stay of a tourist on theplace at least for one day. Destination has physical and administrative limits, which aredetermining its management, and has an image and perception. It includes a lot of elements beingconcerned, it is capable for constructing a network, a cooperation and to become a biggerdestination; the determination of destination is made from the point of view of the tourist.”To become a tourist destination the location, the region have to have the factors that determine thetourist destinations. These factors are determinants in the bordering, determination of the core areadestination; their development is essential by the increase of the competitiveness of the specificdestinations.According to Buhalis (2000) determinants of the destination are as follows: • Tourist attractions, e.g. natural factors, factors made by human being, heritage, special events, etc.; • Approachability, e.g. the entire traffic system, including roads, traffic means, etc.; • Tourist services, e.g. accommodation, host services, other tourist services, etc.; • Product packages; • All kind of activities that can be run by the tourists during their stay; public-utility services, e.g. banks, telecommunication, hospitals, etc.Definition of destination, summarizing the aspects regarding the nature of destination and itsdetermining factors (Angelo Presenza – Lorn Sheehan – J.R. Brent Ritchie, 2005), the charactersof destination can be summarized as follows:Destination: • Area target that is chosen by the tourist as the target of his travel • Receiving area that is providing services for the tourist and people living on the spot • It is defined from the point of view of the tourist • A place/region that is confinable physically and geographically • A place/region that is containing tourist attractions, products, services and other background services being necessary for spending at least one day • The tourist is spending at least one night here ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination Analysis • It is containing a lot of persons being concerned who are cooperating with each other • It has an image • It has perception (it means that each of the tourists can form an opinion about a destinationthrough his own “screen” subjectively) • It is providing integrated experience for the tourist • In a wider sense it is a tourist product that is competing with other tourist products (destinations) on the market of tourism • A kind of a complex and integrated system that is taking the existence of a modern tourism controlling and management system to the successful operation for granted • It is a system being built from below and supported from aboveNot all locations, regions can become a tourist destination. There are such kind of basic criterionsthat has to be met so that a location, region could become a tourist destination. The abovementioned are only the most basic criterions. The determination and bordering of the destinations orthe core area destinations are supposing the development of a special system of criterions that ismade according to preferences, expectations, points of view of the tourist first of all.Tourist Destination - DefinitionThe term ‘destination’ used in relation to travel and tourism refers to a place to which a touristtravels, generally with the intention of “staying” (e.g. making use of accommodation) for sometime.Some tourist destinations are ‘transitory’ ones; perhaps on the way to another destination. Forexample, a tourist might visit a number of islands in a “group”, staying at each one for two or threedays. Many tourists, on the other hand, travel direct to their ‘final destinations’, where they proposeto stay - or to be “based” - for the duration of their tours.Some tours might provide a “combination”. For instance, a tourist might travel to - and stay for oneor two days at - one or more transitory destinations on the way to the final destination, where he orshe will stay for the remainder of the tour. Of course, in some cases - such as fly-drive tours - theremight be no “final destination” as such, because the tourists decide where they want to stay, and forhow long they want to stay there. Also, some fly-drive and coach tours and cruises start andeventually finish at the same seaport or airport, etc.The foregoing examples illustrate just how wide is the range of types of tour available to touriststoday. The range of destinations available to tourists from many countries is also very wide - and iscontinually increasing.Although some people are content to take the “same” holiday over and over again, in the sameresort (sometimes staying at the same hotel, guesthouse, camp site, etc) many other people seekvariety - “something different”, new or exciting. Indeed, in many countries the “traditional” type ofholiday - to a national seaside resort, for example, has declined considerably in popularity.International travel has blossomed in recent years (although economic restraints and transportproblems - such as airline and air traffic controllers’ strikes - tend to reverse the trend to somedegree) and peoples’ “horizons” have widened. Low-fare airlines and tour operators offeringmodestly priced package tours have, of course, been responsible to a large degree for this change inattitudes, but they must be constantly on the lookout for new destinations (as well as new types oftours) as tourists’ demands and expectations change. ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination AnalysisThe connection between the system of destination and tourismThe place of destination in the system of tourism is demonstrated by the system of tourism.Destination can be found on the side of the supply (the product) from the two sub-systems of thetourism system. The tourist supplies are consisting of the factors of the receiving area that is usedby the tourist during his stay. Central element of the supply is the tourist product that is containingthe services meeting the demands of the tourist. Tourism is an integrated, open, complex systemoperating dynamically each element of which (its micro- and macro environment) there is in amutual dependence with the others.From the factors forming the two sub-systems of the tourism market, the supply (tourist product) isconsisting of the following elements: attractions, accessibility, services, safety, hospitality, etc.. Theelements of the tourist destination according to the above definition (Buhalis, 2000) run as follows:tourist attractions (natural and made by human being, special events, etc.), accessibility, touristservices, product packages, active activities, and public services.Elements of importance for the composition of a holiday include infrastructure (airports, roads,telecommunications, environmental services, car-hire, etc.), accommodation facilities (hotels,camping sites, houses for rent, etc.), catering (restaurants, pubs, supermarkets, etc.), entertainmentfacilities (shopping, museums, attractions, sports facilities, etc.), and reception services (travelagencies, promotional offices, information services, guides, etc.).The emphasis, however, is not only on private, commercial units: infrastructure and someattractions and information facilities are publicly operated. The product can be only one or severalproducts as well, however destination can be characterised as a set of complex services andattractions related to each other. Destination management system being responsible for the touristdestination controlling and management is forming a connection with the poles of demand andsupply. ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination AnalysisOperation of the destination management – as the tourist value chainThe simple value chain is representing such kind of a process that is delivering a product from theidea through the product development phases to the final user. Michael Porter has characterised thevalue chain with the connection of the activities of which each element represents the different levelof providing offers. The principle of the destination operation is similar to the one of the traditionalvalue chain too. However, destination management as the tourist value chain is leading the touristthrough the entire process of travel, right from the decision of travelling to the return.The traditional value chain puts first of all the product and its development in the centre; the leadingcharacter of the tourist value chain is the tourist who wants to use the tourist products (touristsupply of destination) on a more complex way to be able to meet his demands.The elements of the tourist value chain are consisting of the elements determining and influencingthe travel process and of the offering elements provided by the specific destination. There can befound different characters behind the offering factors that form destination, just like e.g. the localself-government, the owners and operators of the attractions, services, local tourist consortiums andpartnerships, civilian organisations, institutions supporting enterprises, tourist developinginstitutions, organisations, etc.The effective operation of destination is taking the conscious cooperation of the characters forgranted that is realized in the harmonized organization and operation of the products and servicesmostly. It is important that the service providers should deliver the same high level of qualitybecause the service of different levels of the key and supplementary functions of destinations caninfluence the judgment of the whole destination negatively. ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination AnalysisNecessity of the development of tourism destination managementThe destinations – as the organizational systems developing on the regional concentration andcooperation – have to be taken into connection with the economic processes in the world, one basicprinciple of which is that the durable industrial and business competitive advantages are appearingconcentrated geographically more and more.In the competition there are not taking part separate persons of the market but the basic units of themarket competition, the companies, enterprises and regional institutions. The regional concentrationprinciple is playing a determinant role in the effective operation of the destination as well, which isgenerating competitive advantages. The tourist target areas are worth settling to a regionalconcentration being significant from the point of view of tourism, based on definitive basicprinciples, so that the economic potential of the region can be increased.Determinant factors of the tourist competitiveness of each region are the development and operationof the management system with the effective, suitable competences and calculable financing andorganisational background. Modern tourism management and operation, that is the revaluation ofthe current traditions, are needed to the development of an effective management system organisedon the basis of the regional concentration principle.The integrated planning, management and operation of tourism are needed on all levels of tourism.Development of the system is taking for granted such kind of regional and organisational planningbasic principles as the: • Revaluation of cooperation, development of consciousness in the cooperation, development, planning, organisation, operation of the forms of cooperation; • More close cooperation with other regions, branches in the processes of planning and development originating from the multiplier effect of tourism; • More complex approaches in the development of the service system of tourism: beside the development of the tourist infra- and superstructure the development of the background infrastructures, the supporting factors have to be emphasized too; • The use of innovative, modern, up to date technologies in the processes of development.Destination Competitiveness ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination AnalysisRitchie and Crouch’s (1993) Calgary model recognised 5 key constructs of destinationcompetitiveness. These constructs are underpinned by a number of destination related factors.At the outset, Ritchie and Crouch identify a destination’s appeal to be a factor of tourismdestination competitiveness, referring to the destination attractors and deterrents. Attractors includeeleven elements: natural features, climate, cultural and social characteristics, general infrastructure,basic services infrastructure, tourism superstructure, access and transportation facilities, attitudestowards tourists, cost/price levels, economic and social ties and uniqueness.Among destination deterrents are security and safety (i.e. political instability, health and medicalconcerns; poor quality of sanitation; laws and regulations such as visa requirements). These factorscan act as a barrier to visiting a particular destination. The Calgary model further emphasises that acarefully selected and well executed program of destination management can serve to improve thetourism competitiveness of a destination.In particular, marketing efforts have the potential to enhance the perceived appeal (e.g. image) of adestination, whilst managerial initiatives can strengthen the competitive position of a destination.The model also argues that destination competitiveness can be enhanced through managementorganisation capabilities and strategic alliances. Additionally, the use of detailed informationsystems is advanced as a basis for decision making, where internal management informationprovides the ability to better manage the performance of destinations product. This aspect of themodel is closely linked to a research function, as research enables a destination to adapt to changingmarket conditions.The final construct in the model is Destination Efficiency, which draws on the integrity ofexperience, relating to the ability of the destination to provide an appropriate (expected andpromised) experience. The second set of the efficiency factors are termed by the authors asproductivity variables. These include variables which are hypothesised to develop skills and/orconditions which can increase the quantity and quality of the output of tourism experiences for agiven level of resource input, such as training staff. ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination Analysis UNIT 2: INTRODUCTION TO DESTINATION ANALYSIS Chapter objectives • Outline and describe the tourist destination features • Analyze different types of destinations and their competitiveness • Understand the evolving concepts of destinationsTourist Destination FeaturesDestination is the location of a position or point in physical space that something occupies on theEarth’s surface. The location can be reached by using transportation of air, water and also main landwhich is by airplanes, ferries, coaches, cars and so on. Currently, there will be many changes to thelocations once there has development in that place – there will have a growth in the economic, aswell as an increase in the standard of livingGenerally there are two (2) features for the destination which are: • Primary feature • Secondary featurePrimary FeaturesClimateClimate encompasses the statistics of temperature, humidity, atmospheric pressure, wind, rainfall,atmospheric particles count and other meteorological elements in a given region over long periodsof time. Climate can be contrasted to weather, which is the present condition of these same elementsand their variations over periods up to two weeks.The climate of a location is affected by its latitude, terrain and altitude, as well as nearby waterbodies and their currents. Climate can be classified according to the average and the typical rangesof different variables, most commonly temperature and precipitation.Different climate attract different types of tourists. Example, tourist from the Western Hemispheretends to choose destination with warm climate as to avoid the colder climate at their country oforigin. Meanwhile, tourist from warmer climate may want to experience the winter season of theother countries.EcologyEcology is the scientific study of the distributions, abundance, share effects, and relations oforganism and their interactions with each other in a common environment. Ecology can be definesas the study of the interactions between life and its physical environment; the relationship betweenanimals and plants and how one species affect another. An eco-system is the unique network ofanimal and plant species that depends on the other to sustain life – the interactions between andamong organisms at every stage of life and death can impact the system. ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination AnalysisEcology system is one of the main resources in nature tourism. Destination with well-preservedecology will be able to sustain their attractiveness and competitiveness in getting tourists attentionand stay as the top chosen destination among nature lovers.Cultural heritageCultural heritage is the legacy of physical artifacts and intangible attributes of a group or societythat are inherited from past generations, maintained in the present and bestowed for the benefit offuture generations – often though, what is considered cultural heritage by one generation may berejected by the next generation, only to be revived by a succeeding generation. Physical or ‘tangiblecultural heritage’ includes buildings and historic places, monuments, artifacts, etc., that isconsidered worthy of preservation for the future – these include objects of significant to thearchaeology, architecture, science or technology of a specific culture.Culture also can include cultural landscapes (natural features that may have cultural attributes). Theheritage that survives from the past is often unique and irreplaceable, which places theresponsibility of preservation on the current generation. Grassroots organizations and politicalgroups have been successful at gaining the necessary support to preserve the heritage of manynations for the future.Cultural heritage is one of the main resources in cultural tourism, and also one of the mostinfluential tourist’s travel motivations. Learning of different cultural elements and the process ofcultural exchange between the tourists and the host communities are part and parcel in culturaltourism, and it can only be possible if the cultural heritages are preserved.ArchitectureArchitecture means: The art and science of designing and erecting buildings and physical structures.The practice of an architect, where architecture means to offer or render professional service inconnection with the design and construction of a building, or group of buildings and the spacewithin the site surrounding the buildings, that have their principal purposes of human occupancy orusage.Architecture is both the process and the product of planning, designing and constructing form, spaceand ambience that reflect functional, technical, social and aesthetic considerations – it requires acreative manipulation and coordination of material, technology, light and shadow. Architecture alsoencompasses the pragmatic aspects of realizing buildings and structures, including scheduling, costestimating and construction administration.Architecture can be about man-made attractions such as destination landmarks, as well as influentialand iconic structures. Examples of this type of attraction are Taj Mahal, Pyramid of Giza, GreatWall of China, as well as Sydney Opera House.Land formsIn the earth sciences and geology sub-fields, a landform or physical feature comprises ageomorphologic unit, and is largely defined by its surface form and location in the landscape, aspart of the terrain, and as such, is typically an element of topography. Landform elements alsoinclude seascape and oceanic water body interface features such as bays, peninsulas, seas and soforth, including sub-aqueous terrain features such as submerged mountain ranges, volcanoes, andthe great ocean basins. ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination AnalysisLandforms are categorized by characteristic physical attributes such as elevation, slope, orientation,stratification, and rock exposure and soil type. Some generic landform elements including: pits,peaks, channels, ridges, passes, pools and plains, may be extracted from a digital elevation modelusing some automated techniques where the data has been gathered by modern satellites andstereoscopic aerial surveillance cameras.Landforms also can be part of attractions in nature tourism - iconic landforms such as GrandCanyon, Niagara Falls and Mount Fuji.Secondary FeaturesAccommodationAccommodation in tourist destination is an establishment that provides paid lodging on a short-termbasis – most common are hotels, motels, resorts, etc. The provision of the accommodation consistedof rooms with modern facilities, including en-suite bathrooms and air-conditioning or climatecontrol. Additional common features found in hotel rooms are telephone, television, and Internetconnectivity – snack food and drinks may be supplied in a mini-bar, and facilities for making hotdrinks.Larger establishment may provide a number of additional guest facilities such as a restaurant,swimming pool or childcare, and have conference and social function services. Some establishmentoffer meals as part of a room and board arrangement – in UK, a hotel is required by law to servefood and drinks to all guests within certain stated hours, to avoid this requirement it is notuncommon to come across private hotels which are not subjected to this requirement; in Japan,capsule hotels provide a minimized amount of room space and shared facilities.Unusual accommodation – there are many accommodation that can be considered destinations inthemselves, by dint of unusual features of the lodging or its immediate environment. The categoriesare as follow: 1. Treehouse Hotels Some hotels are built with living tress as structural elements, for example the Costa Rica Tree House in the Gandoca-Manzanillo Wildlife refuge, Costa Rica; the Treetops Hotel in Aberdare National Park, Kenya; the Ariau Towers near Manaus, Brazil; and Bayram’s Tree Houses in Olympos, Turkey 2. Bunker Hotels The Null Stern Hotel in Teufen, Appenzellerland, Swirtzerland and the Concrete Mushrooms in Albania are former nuclear bunkers transformed into hotels 3. Cave Hotels Desert Cave Hotel in Coober Pedy, South Australia and the Cuevas Pedro Antonio de Alarcon in Guadix, Spain, as well as several hotels in Cappadocia, Turkey, are notable for being built into natural cave formations, some with rooms underground. There are all built underground 4. Capsule Hotels Capsule hotels are a type of economical hotel that are found in Japan, where people sleep in stacks of rectangular containers 5. Ice and Snow Hotels ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination Analysis The Ice Hotel in Jukkasjarvi, Sweden, and the Hotel de Glace in Duschenay, Canada, melt every spring and are rebuilt each winter; the Mammut Snow Hotel in Finland is located within the walls of Kemi snow castle; and the Lainio Snow Hotel is part of a snow village near Yllas, Finland 6. Garden Hotels Garden hotels, famous for their gardens before they become hotels, include Gravetye Manor, the home of garden designer William Robinson, and Cliveden, designed by Charles Bary with a rose garden by Geoffrey Jellicoe 7. Underwater Hotels Some hotels have accommodation underwater, such as Utter Inn in Lake Malaren, Sweden. Hydropolis, project cancelled 2004 in Dubai, would have had suites on the bottom of Persian Gulf, and Jules Undersea Lodge in Key Largo, Florida requires scuba diving to access its roomsCateringCatering is the business of providing foodservice at a remote site or a site such as a hotel, publichouse (pub), or other location. 1. Mobile catering A mobile caterer serves food directly from a vehicle or cart that is designed for the purpose. Mobile catering is common at outdoor events (such as concerts), workplaces, and downtown business districts. 2. Event catering Events range from box-lunch drop-off to full-service catering. Caterers and their staff are part of the foodservice industry. When most people refer to a "caterer", they are referring to an event caterer who serves food with waiting staff at dining tables or sets up a self-serve buffet. The food may be prepared on site, i.e., made completely at the event, or the caterer may choose to bring prepared food and put the finishing touches on once it arrives. 3. Boxed lunch catering A box lunch is a lunch consisting of a sandwich, chips, fruit and a dessert. A box lunch is typically prepared by a caterer and dropped off to a location for a client’s dining needs. Box lunches are used primarily in the corporate arena for working lunches when they do not have time to take a break from their meeting yet still need to eat. A box lunch order is placed with a caterer a couple of days before the delivery date and is a cheaper way to go instead of a full sit-down lunch. The box lunch option is strictly a drop-off service and does not offer any type of wait staff or cleanup. The caterer’s only job is to prepare and deliver the food. 4. Catering Officers on ships Merchant ships often carry Catering Officers - especially ferries, cruise liners and large cargo ships. In fact, the term "catering" was in use in the world of the merchant marine long before it became established as a land-bound business.TransportationsTransport or transportation is the movement of people, cattle, animals and goods from onelocation to another. Modes of transport include air, rail, road, water, cable, pipeline, and space. Thefield can be divided into infrastructure, vehicles, and operations. ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination AnalysisTransport is important since it enables trade between peoples, which in turn establishescivilizations.Transport infrastructure consists of the fixed installations necessary for transport, and may be roads,railways, airways, waterways, canals and pipelines, and terminals such as airports, railway stations,bus stations, warehouses, trucking terminals, refueling depots (including fueling docks and fuelstations), and seaports. Terminals may be used both for interchange of passengers and cargo and formaintenance.Vehicles traveling on these networks may include automobiles, bicycles, buses, trains, trucks,people, helicopters, and aircraft. Operations deal with the way the vehicles are operated, and theprocedures set for this purpose including financing, legalities and policies.In the transport industry, operations and ownership of infrastructure can be either public or private,depending on the country and mode. Passenger transport may be public, where operators providescheduled services, or private. Freight transport has become focused on containerization, althoughbulk transport is used for large volumes of durable items.Transport plays an important part in economic growth and globalization, but most types cause airpollution and use large amounts of land. While it is heavily subsidized by governments, goodplanning of transport is essential to make traffic flow, and restrain urban sprawl.Transport in LondonLondons transport forms the hub of the road, rail and air networks in the United Kingdom. It hasits own dense and extensive internal private and public transport networks, as well as providing afocal point for the national road and railway networks.London also has a number of international airports including one of the worlds busiest, Heathrow(ithave also first London pod system called ULTra), and a seaport. Londons internal transport systemis one of the Mayor of Londons four policy areas, administered by its executive agency Transportfor London (TfL).TfL controls the majority of public transport in the area, including the Underground, London Buses,Tramlink, the Docklands Light Railway, and London Overground rail services within GreaterLondon; other rail services are franchised to train operating companies by the national Departmentfor Transport (DfT).TfL also controls most major roads in the area, but not minor roads The body is organised in threemain directorates and corporate services, each with responsibility for different aspects and modes oftransport. The three main directorates are: 1. London Underground Responsible for running Londons underground rail network, commonly known as the tube, and managing the provision of maintenance services by the private sector. This network is sub-divided into three service delivery units: a. BCV: Bakerloo, Central, Victoria and Waterloo & City lines b. JNP: Jubilee, Northern and Piccadilly lines c. SSR (Sub Surface Railway): Metropolitan, District, Circle and Hammersmith & City lines 2. London Rail, responsible for: ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination Analysis Co-ordination with the operators that provide National Rail service within London. a. London Overground, although actual operation is undertaken by a private sector franchisee and maintenance by Network Rail. b. Docklands Light Railway: normally abbreviated DLR, this is the automatically driven light rail network in east London, although actual operation and maintenance is undertaken by a private sector franchisee. c. London Trams, responsible for managing Londons tram network, by contracting to private sector operators. At present the only tram system is Tramlink in south London, but others are proposed. 3. Surface transport, consisting of: a. London Buses, responsible for managing the red bus network throughout London, largely by contracting services to private sector bus operators. Incorporating CentreComm, London Buses Command & Control Centre, a 24 hour Emergency Control Centre based in Southwark. b. London Dial-a-Ride, which provides paratransit services throughout London. c. London River Services, responsible for licensing and coordinating passenger services on the River Thames within London. d. London Streets, responsible for the management of Londons strategic road network. e. London congestion charge. f. Public Carriage Office, responsible for licensing the famous black cabs and other private hire vehicles. g. Victoria Coach Station, which owns and operates Londons principal terminal for long distance bus and coach services. h. Cycling Centre of Excellence, which promotes cycling in London and manages the contract with Serco for the Barclays Cycle Hire scheme i. Walking, which promotes better pedestrian access.Types of DestinationsSelf-contained resortsThe term "resort" is now also used for a self-contained commercial establishment which attempts toprovide for most of a vacationers wants while remaining on the premises, such as food, drink,lodging, sports, entertainment, and shopping. The term may be used to identify a hotel property thatprovides an array of amenities and typically includes entertainment and recreational activities.A hotel is frequently a central feature of a resort, such as the Grand Hotel at Mackinac Island,Michigan. A resort is not merely a commercial establishment operated by a single company,although in the late twentieth century this sort of facility became more common.Destination resortA destination resort is a resort that contains, in and of itself, the necessary guest attractioncapabilities—that is to say that a destination resort does not need to be near a destination (town,historic site, theme park, or other) to attract its public.A commercial establishment at a resort destination such as a recreational area, a scenic or historicsite, a theme park, a gaming facility or other tourist attraction may compete with other businesses ata destination. Consequently, another quality of a destination resort is that it offers food, drink,lodging, sports and entertainment, and shopping within the facility so that guests have no need toleave the facility throughout their stay. ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination AnalysisCommonly these facilities are of higher quality than would be expected if one were to stay at a hotelor eat in a towns restaurants. Some examples are Atlantis in the Bahamas, Costa do Sauípe in theNortheastern Brazil, Laguna Phuket in Thailand and Sun City near Johannesburg in South Africa.All-inclusive resortAn all-inclusive resort charges a fixed price that includes most or all items. At a minimum, mostinclusive resorts include lodging, unlimited food, drink, sports activities, and entertainment for thefixed price. All-inclusive resorts are found in the Caribbean, particularly Cuba, and elsewhere.Notable examples are Club Med and Sandals Resorts.An all-inclusive resort includes a minimum of three meals daily, soft drinks, most alcoholic drinks,gratuities and possibly other services in the price. Many also offer sports and other activitiesincluded in the price as well.They are often located in warmer regions - The all-inclusive model originated in the Club Medresorts which were founded by the Belgian Gérard Blitz. Some all-inclusive resorts are designed forspecific vacation interests. For example, certain resorts cater to adults, while even more specializedproperties accept couples only.Other all-inclusive resorts are geared toward families, with facilities like craft centers, game roomsand water parks to keep children of all ages entertained. All inclusive resorts are also very popularlocations for destination weddings.Conference and resort hotelsConference and resort hotels are hotels which often contain full-sized luxury facilities with fullservice accommodations and amenities. These hotels may attract both business conferences andvacationing tourists and offer more than a convenient place to stay.These hotels may be referred to as major conference center hotels, flagship hotels, destinationhotels, and destination resorts. The market for conference and resort hotels is a subject for marketanalysis. These hotels as destinations may be characterized by distinctive architecture, upscalelodgings, ballrooms, large conference facilities, restaurants, and recreation activities such as golf orskiing. They may be located in a variety of settings from major cities to remote locations.Ways a self-contained resort could compete for tourists 1. provide most of the travel facilities (accommodation, foods and beverages, recreation, shopping, etc.) within the compound 2. a fixed price that includes most or all items 3. does not need to be near a destination (town, historic sites, theme park, etc) 4. designed for specific vacation interest i.e. certain resorts carter to couple only 5. characterized by distinctive architecture, upscale lodging and recreation activities such as golf and skiing 6. the facilities provide are of higher quality than would be expected 7. provide special comprehensive programs such as spa services, physical fitness activities, and healthy cuisine 8. a combination of activities and attractions for both looking for adventure and tranquility in the vacation ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination AnalysisTownsA town is a human settlement larger than a village but smaller than a city. The size definition forwhat constitutes a "town" varies considerably in different parts of the world, so that, for example,many "small towns" in the United States would be regarded as villages in the United Kingdom,while many British "small towns" would qualify as cities in the United States.Towns which are resorts — or where tourism or vacationing is a major part of the local activity —are sometimes called resort towns. If they are by the sea they are called seaside resorts. Inlandresorts include ski resorts, mountain resorts and spa towns.Towns such as Sochi in Russia, Sharm el Sheikh in Egypt, Barizo in Spain, Cortina dAmpezzo inItaly, Druskininkai in Lithuania, Nice in France, Newport, Rhode Island, St. Moritz in Switzerland,Blackpool in England and Malam Jabba in Pakistan are well-known resorts.Seaside resortsSeaside resorts are located on a coast. Many seaside towns have turned to other entertainmentindustries, and some of them have a good deal of nightlife. The cinemas and theatres often remainto become host to a number of pubs, bars, restaurants and nightclubs. Most of their entertainmentfacilities cater to local people and the beaches still remain popular during the summer months.Although international tourism turned people away from British seaside towns, it also brought inforeign travel and as a result, many seaside towns offer foreign language schools, the students ofwhich often return to vacation and sometimes to settle.Ski resortsIn Europe, ski resorts are towns and villages in ski areas, with support services for skiing such ashotels and chalets, equipment rental, ski schools and ski lifts to access the slopes.VillageA village is a clustered human settlement or community, larger than a hamlet with the populationranging from a few hundred to a few thousand (sometimes tens of thousands). Though often locatedin rural areas, the term urban village is also applied to certain urban neighborhoods, such as theWest Village in Manhattan, New York City and the Saifi Village in Beirut, Lebanon, as well asHampstead Village in the London conurbation.Villages are normally permanent, with fixed dwellings; however, transient villages can occur.Further, the dwellings of a village are fairly close to one another, not scattered broadly over thelandscape, as a dispersed settlement.Tourism villageIs a village area which have some special characteristics of a place as tourism object. In this area,the traditions and culture of local community are still pure. A tourism village is also coloured bysome supporting factors, such as local cuisine/food, agriculture system and social system.Besides, pure nature and environment are added points for a tourism village. Good facilities toprovide a village becoming a tourism object are also important. These facilities make visitors whocome to a tourism village enjoy their vacation. So, all tourism villages are completed by manysupporting facilities, such as transportation, telecommunication, medical, and accommodationfacilities. The accommodations in tourism village are special. ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination AnalysisVisitors can spend the nights using homes stay provided in the village - It gives visitors amemorable moment because they can feel a purely village atmosphere. Until now, there are seventourism villages located in Central Java province, Indonesia. - There are Candirejo, Dieng, Duwet,Karangbanjar, Karimunjawa, Ketenger, and Selo village.Capital CitiesA capital city (or just, capital) is the area of a country, province, region, or state considered toenjoy primary status; although there are exceptions, a capital is typically a city that physicallyencompasses the offices and meeting places of the seat of government and is usually fixed by law orby the constitution.An alternative term is political capital, but this phrase has a second meaning based on an alternatesense of the word capital. The capital is often, but not necessarily, the largest city of its constituentarea, and is also often a specialized city.Strategy to maintain capital city competitiveness as tourist destination a) the construction of new cultural center b) improve access – enlarging road, improve transportation system c) more monitoring of accommodation in terms of health and safety standards d) develop new tourist attractions e) improvement of public facilities such as toilet, signage f) continued marketing and advertising activitiesCountryA country is a region legally identified as a distinct entity in political geography. A country may bean independent sovereign state or one that is occupied by another state, as a non-sovereign orformerly sovereign political division, or a geographic region associated with a previouslyindependent people with distinct political characteristics.Regardless of the physical geography, in the modern internationally accepted legal definition asdefined by the League of Nations in 1937 and reaffirmed by the United Nations in 1945, a residentof a country is subject to the independent exercise of legal jurisdiction, while "Any person visiting acountry, other than that in which he usually resides, for a period of at least 24 hours" is defined as aforeign tourist‘.There are 204 total states, with 193 states participating in the United Nations and 13 states whosesovereignty status are disputed - The newest state is South Sudan.International tourist arrivals by country of destination 2010Out of a global total of 940 million tourists, the top ten international tourism destinations in 2010were (see the barometer for the full rankings): Rank Country International tourist arrival 1 France 76.80 million 2 United States 59.75 million 3 China 55.67 million 4 Spain 52.68 million 5 Italy 43.63 million ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination Analysis 6 United Kingdom 28.13 million 7 Turkey 27.00 million 8 Germany 26.88 million 9 Malaysia 24.58 million 10 Mexico 22.40 millionRegions and AreasA tourism region is a geographical region that has been designated by a governmental organizationor tourism bureau as having common cultural or environmental characteristics. These regions areoften named after historical or current administrative and geographical regions. Others have namescreated specifically for tourism purposes. - The names often evoke certain positive qualities of thearea and suggest a coherent tourism experience to visitors.Countries, states, provinces, and other administrative regions are often carved up into tourismregions. In addition to drawing the attention of potential tourists, these tourism regions oftenprovide tourists who are otherwise unfamiliar with an area with a manageable number of attractiveoptions.Some of the more famous tourism regions based on historical or current administrative regionsinclude Tuscany in Italy and Yucatán in Mexico. Famous examples of regions created by agovernment or tourism bureau include the United Kingdoms Lake District and Californias WineCountry.Specialty RegionsWine Regions - Building on the success of wine tourism in regions such as Californias WineCountry, the number of wine regions catering to tourists has grown in recent decades. Althoughwine regions have existed since the 1850s in France, wine tourism became increasingly popular inthe 1970s.Wine regions such as Bordeaux and Burgundy in France were joined by regions in California, Italy,Spain, and even New York as areas of interest to the potential wine tourist. Currently, several dozencountries have their own wine regions, while many of these countries have dozens of regions withintheir borders.Many wine regions do not correspond to designated tourism regions. For example, the famousBordeaux region in France is part of the political and tourism region of Aquitaine while the Moselwine region of Germany is located in the Rhineland-Palatinate state and extends far to the northeastof the Moselle and Saar tourism region.Traditional CentersA national center for traditional arts that usually established by the tourism governing bodies of aparticular country. The goal of the center is overall planning, supporting the related research,promoting, preserving, and teaching the traditional arts, and also redefining, renovating, anddeveloping the traditional arts.Example; • The National Gugak Center (Formerly: National Center for Korean Traditional Performing Arts) is the governing body established to preserve and promote traditional Korean performing arts. ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination Analysis • National Center for Traditional Arts, Taiwan - In addition to organized displays and performances of culture and art, it also provides a stage where performing artists can show off their creative works. The emphasis here is on the continuous propagation, innovation, and renewal of traditional arts.Touring CenterAn attraction that established with variety of activities (especially outdoor pursuit activities) offer atone place.Example: • Elk River Touring Center, West Virginia, US - Walk out the doors of the inn to enjoy world class West Virginia Fly Fishing, cross country skiing, West Virginia Mountain Biking and more • Steamboat Ski Touring Center, US offers fun for everyone of all ages with groomed cross country ski trails, 10 km of beautiful forested snowshoe trails, ski school, & Nordic shop.Purpose BuiltThese are destinations developed specifically for tourists which provide all the facilities needed inone place. Theme parks are not generally acceptable, although this category may include themepark resorts such as Disneyland Paris or large holiday centres such as Center Parcs.It may also include some whole resorts in their own right, such as La Pobla de Farnals - Thispurpose-built resort town has the advantage of being easily accessible and close to the lively city ofValencia. Located in an enclave, around 12 kilometres to the north of the city, the sea is its mainattraction, with a seafront promenade, fine sandy beaches and a central marina – ideal for enjoying arelaxing stroll.Evolving Concept of DestinationsHaywood (1990) and Pigram (1992) identify a number of implementation gaps in the adoption ofstrategic planning at tourist destinations:Destinations are comprised of a constantly shifting mosaic of stakeholders and value systems. Eachof these groups has a different view of the role and future of tourism at their destination andtherefore the adoption of strategies becomes a political process of conflict resolution and consensusIn addition, the tourist sector at destinations is characterised by fragmentation and a dominance ofsmall businesses, who often trade seasonally. This has led to a lack of management expertise atdestinations, a divergence of aims between the commercial and public sectors and a shorttermplanning horizon which in part is driven by public-sector, twelve-monthly budgeting cycles, butalso by the tactical operating horizon of small businesses (Athiyaman, 1995).The stage of the destination in the life cycle also influences the acceptability of a destination-wideplanning exercise. In the early stages of the life cycle for example, success often obscures the longterm view, whilst in the later stages, particularly when a destination is in decline, opposition to longterm planning exercises may be rationalised on the basis of cost.Finally, the performance indicators adopted in such exercises can be controversial as tourist volumeis the traditional, and politically acceptable, measure of success in many destinations. In otherwords, the tourism industry is often reluctant to make the tradeoff between present and future needswhen success is judged by short-term profitability and volume growth. ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination AnalysisDestination VisioningDestination visioning is a community-based strategic planning approach, effectively placing thefuture of the destination in the hands of the local community, government and industry.As Ritchie (1993) says:‘residents of communities and regions affected by tourism are demanding to be involved in thedecisions affecting their development’Of course, this involvement and control is also a key element of delivering a sustainable destination.Whilst the concept of community involvement in planning is well known, it is the ‘process’ ofvisioning that is so well suited to destinations.Ritchie (1993) identifies three key elements of the process as: • The vision must bring together the views of the whole community and all tourism stakeholders; • The vision must reach concensus and endorsement of the future; and • The vision defines the long term development of the destination. ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination Analysis UNIT 3: DESTINATION DEVELOPMENT ANALYSIS Chapter objectives • Discuss about destination development analysis in terms of TALC, resort life-cycle and PLC • Explain the spatial tourism development in a destination • Outline the product portfolio and understand its application in destination management • Describe the business strategies that can be apply in destination developemt analysisResort development modelTourist Area Life-cycle (TALC)Hypothetical Evolution of a Tourist Area (Adapted from Miller and Gallucci, 2004) 1. Exploration – small numbers of visitors attracted by natural beauty characteristics. Tourist numbers are limited. Few tourist facilities exist. 2. Involvement – limited involvement by local residents to provide some facilities for tourists. There is a recognizable ‘tourist season’. There begin to be a definite tourist market. 3. Development – large numbers of tourists arrive. Control passes from the locals to external organizations. Increase in tension between local people and tourists 4. Consolidation – tourism has become a major part of the local economy. Visitors’ numbers star to level off (at a high number). Some older facilities are seen as second-rate 5. Stagnation – peak numbers of tourists have been reached. The resort is no longer considered fashionable. 6. Rejuvenation/decline – attractiveness continue to decline. Visitors are lost to other resorts and destinations. Long term decline will continue unless action is taken to rejuvenate the area and modernize. ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination AnalysisTourism Area Life Cycle (TALC) model is that a destination begins as a relatively unknown andvisitors initially come in small numbers restricted by lack of access, facilities, and local knowledge,which is labeled as Exploration. As more people discover the destination, the word spreads about itsattractions and the amenities are increased and improved (Development). Tourist arrivals then beginto grow rapidly toward some theoretical carrying capacity (Stagnation), which involves social andenvironmental limits.The rise from Exploration to Stagnation often happens very rapidly, as implied by the exponentialnature of the growth curve. The possible trajectories indicated by dotted lines A-E are examples of asubset of possible outcomes beyond Stagnation. Examples of things that could cause a destinationto follow trajectories A and B toward Rejuvenation are technological developments or infrastructureimprovements leading to increased carrying capacity. Examples of things that could cause adestination to follow trajectories C and D are increased congestion and unsustainable development,causing the resources that originally drew visitors to the destination to become corrupted, or nolonger exist. The trajectory of most interest to this is trajectory E, which is the likely path of adestination following a disaster or crisis.It is also important to point out that the Law of Diminishing Returns could cause a destination tofollow trajectories similar to those of C or D, and that the concepts and practices of destinationrecovery, as applied to destinations recovering from a disaster, could easily be applied to adestination in Decline as a result of the Law of Diminishing Returns. ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination AnalysisProduct Life-cycleThe understanding of a product’s life cycle, can help a company to understand and realize when it istime to introduce and withdraw a product from a market, its position in the market compared tocompetitors, and the product’s success or failure. The product’s life cycle - period usually consistsof five major steps or phases. These phases can be split up into smaller ones depending on theproduct and must be considered when a new product is to be introduced into a market since theydictate the product’s sales performance. 1. Product Development Phase Product development phase begins when a company finds and develops a new product idea. This involves translating various pieces of information and incorporating them into a new product. During the product development phase, sales are zero and revenues are negative. It is the time of spending with absolute no return. 2. Introduction Phase The introduction phase of a product includes the product launch with its requirements to getting it launch in such a way so that it will have maximum impact at the moment of sale. A successful product introduction phase may also result from actions taken by the company prior to the introduction of the product to the market. 3. Growth Phase The growth phase offers the satisfaction of seeing the product take-off in the marketplace. This is the appropriate timing to focus on increasing the market share. A new growing market alerts the competition’s attention. Good coverage in all marketplaces is worthwhile goal throughout the growth phase. 4. Maturity Phase When the market becomes saturated with variations of the basic product, and all competitors are represented in terms of an alternative product, the maturity phase arrives. In this phase market share growth is at the expense of someone else’s business, rather than the growth of the market itself. This period is the period of the highest returns from the product. A company that has achieved its market share goal enjoys the most profitable period, while a company that falls behind its market share goal, must reconsider its marketing positioning into the marketplace. 5. Decline Phase The decision for withdrawing a product seems to be a complex task and there a lot of issues to be resolved before with decide to move it out of the market. Dilemmas such as maintenance, spare part availability, service competitions reaction in filling the market gap are some issues that increase the complexity of the decision process to withdraw a product from the market. Often companies retain a high price policy for the declining products that increase the profit margin and gradually discourage the “few” loyal remaining customers from buying it. ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination Analysis Sales and profit Sales Profit s 0 Time Maturit Declin Product Introduction Growth y e Development Losses/investmen tSpatial process of tourist developmentBortoun defines the procedures for the tourism spatial development as follows:First phase: The starting point of tourism development is the existence of a residential regioncreated by the tourist’s production potential, and a potentially remote destination where the tourismhas not yet improved.This process may begin by the Allocentrics (Tourists seeking diversity), the discoverers and orthose aimless individuals or the well-to-do elites. They are motivated by the interests, curiosity,educational needs and etc, and they arrange for their own trips by making use of localtransportation. As a result of their narrations and announcements, they identify the destination andalso they gain fame and by means of a few of tourists who are able to travel they visit; the hostsociety also responds to them by providing some small services. ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination AnalysisThe second phase: If the living standard of people in the region of tourist production (tourismmarket) is promoted and the welfare is increased among them, the second phase of tourism isstarted.During this phase, firstly those who enter feel that some services should be provided in thedestination for which different and new potential tourists search - such as the rich tourists or thosewho are similar to Allocentrics. Therefore, a new product is rendered and the lifecycle of theproduct begins. The first time, The merchants who are exposed to risk enter into the market. Theystart working by provision of travel services directly to the destination and reinforcing the existingfacilities at the destination, and then, they proceed for selling them to the potential touristssomehow different from the tourists of the first phase. There is limited response on the part of thehost community. They directly make use of tourism emotional motivations and they welcome thetourists.The third phase: The tourism industry starts making novel changes in the destination by developingthe first residential-commercial centers for tourism soon.The tourists of the first phase leave this destination for finding other destinations. Those merchants,who were not exposed to the risk, enter into the market in order to reinforce the existing servicesand facilities. The speed and scope of development are increasing. The accumulation of touristswho are in search of completely well developed destinations, now are able to travel to suchdestinations. The speed of tourism growth leads toward immigrating to a tourism destination sincethe local workforce cannot provide services requested by the tourists. Landlords and the localtraders welcome tourism development, however, the majority of the local people are annoyed bysuch development. ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination AnalysisThe fourth phase: The destination is well identified among the population of the Midcentric tourismgenerating region. The destination is totally developed and is distinct from its primary shape.Its attractions are diversified and the potential for meeting tourism demands of major travelers(Midcentric) grows in an organized manner. A major part of Midcentric tourists are attracted by thesecond destination and therefore, the first destination loses a portion of tourists for its own benefit.The tourism merchants attempt for the provision of services even with cheaper price in the firstdestination, while other ones expand their services in the second destination. Coincided withincreasing economic potential of people, in the market of tourist, the tourism improves step by stepin more distant regions. ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination AnalysisTourism Spatial FrameworkThe Tourism Spatial Framework describes how tourism currently works in space and how it shouldwork in future. It aims to provide a context for intervention and a rationale for the choice ofspecified actions, development areas and anchor projects. It also demonstrates the importance ofusing routes to create linkage between areas in order to generate critical mass and maximise use ofresources.Recognition of the requirement for alignment of strategies partnerships between stakeholders andorganisation and linkages between products is key to success. There is also a need for realismregarding the developmental role of tourism. The physical product provides a strong basis foreconomic growth and social development yet tourism cannot solve all the socioeconomic problemsof every community. Expectations can become unrealistic if the platform from which to begin is settoo high.Under such circumstances the first step may never happen if stakeholders are overwhelmed by toomany priorities, options and opportunities. Disenchantment and withdrawal of support will be theresult. Perhaps the most important objective of this study is to get all stakeholders talking the samelanguage and working towards common goals. ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination AnalysisIn line with the above objectives, focus has been placed on issues and solutions that will directchange. An important lesson that has been learned from our discussions is that “turnaround” ispossible. It requires capital, prioritisation, drive, action, ambition and delivery but it is achievable.Miami, Barcelona and Atlanta are cities where diversity has brought unity of purpose.The tourism spatial framework describes the spatial roles that different places fulfil when touristsvisit the city. For example, some places are the ‘entrance gates’ to the city or parts of the city, othersare places where people stay over and use as a base to visit other areas, and so forth.The tourism spatial framework also identifies Tourism Development Areas throughout the city.Each area has a distinctive character in terms of types of tourism products and resources foundthere, the types of tourist experiences currently offered, the potential to develop new products andthe characteristics of the population of the area.The Tourism Spatial Framework provides recommendations regarding the actions that can betaken in each Tourism Development Area in order to: • increase the attractiveness of the area by developing unique products and experiences that build on the resources of the area; • make it easier for tourists to get to and move around the area; and • help local people to develop tourism businesses and share in the benefits of tourism. ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination AnalysisThe desired outcomes of the spatial framework are as follows: • alignment and integration of tourism projects throughout the city; • greater equity in the distribution of tourism benefits in all sectors of the community; • creation of a legible and connected city; • improvement of local environments through sustainable tourism; • acceptance and actioning of proposed catalytic developments; • local, provincial and regional economic development and cooperation; and • increased visitation and expenditure from both domestic and international tourists.This approach emphasises the need for prioritisation of resources and alignment of strategies priorto focus on delivery and implementation. - The Tourism Spatial Framework represents an importantstarting point.Product PortfolioIntroductionThe business portfolio is the collection of businesses and products that make up the company. Thebest business portfolio is one that fits the companys strengths and helps exploit the most attractiveopportunities.The company must: • Analyse its current business portfolio and decide which businesses should receive more or less investment, and • Develop growth strategies for adding new products and businesses to the portfolio, whilst at the same time deciding when products and businesses should no longer be retained.Methods of Portfolio PlanningThe two best-known portfolio planning methods are from the Boston Consulting Group (the subjectof this revision note) and by General Electric/Shell. In each method, the first step is to identify thevarious Strategic Business Units ("SBUs") in a company portfolio.An SBU is a unit of the company that has a separate mission and objectives and that can be plannedindependently from the other businesses. An SBU can be a company division, a product line or evenindividual brands - it all depends on how the company is organized.Growth-share matrixThe BCG matrix (aka B-Box, B.C.G. analysis, BCG-matrix, Boston Box, Boston Matrix, BostonConsulting Group analysis, portfolio diagram) is a chart that had been created by Bruce Hendersonfor the Boston Consulting Group in 1968 to help corporations with analyzing their business units orproduct lines.This helps the company allocate resources and is used as an analytical tool in brand marketing,product management, strategic management, and portfolio analysis. ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination AnalysisUsing the BCG Box (an example is illustrated above) a company classifies all its SBUs accordingto two dimensions: • On the horizontal axis: relative market share - this serves as a measure of SBU strength in the market • On the vertical axis: market growth rate - this provides a measure of market attractivenessBy dividing the matrix into four areas, four types of SBU can be distinguished: • Stars - Stars are high growth businesses or products competing in markets where they are relatively strong compared with the competition. Often they need heavy investment to sustain their growth. Eventually their growth will slow and, assuming they maintain their relative market share, will become cash cows. • Cash Cows - Cash cows are low-growth businesses or products with a relatively high market share. These are mature, successful businesses with relatively little need for investment. They need to be managed for continued profit - so that they continue to generate the strong cash flows that the company needs for its Stars. • Question marks - Question marks are businesses or products with low market share but which operate in higher growth markets. This suggests that they have potential, but may require substantial investment in order to grow market share at the expense of more powerful competitors. Management have to think hard about "question marks" - which ones should they invest in? Which ones should they allow to fail or shrink? • Dogs - Unsurprisingly, the term "dogs" refers to businesses or products that have low relative share in unattractive, low-growth markets. Dogs may generate enough cash to break-even, but they are rarely, if ever, worth investing in.Using the BCG Box to determine strategyOnce a company has classified its SBUs, it must decide what to do with them. In the diagramabove, the company has one large cash cow (the size of the circle is proportional to the SBUssales), a large dog and two, smaller stars and question marks.Conventional strategic thinking suggests there are four possible strategies for each SBU: ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination Analysis • Build Share: here the company can invest to increase market share (for example turning a "question mark" into a star) • Hold: here the company invests just enough to keep the SBU in its present position • Harvest: here the company reduces the amount of investment in order to maximise the short-term cash flows and profits from the SBU. This may have the effect of turning Stars into Cash Cows. • Divest: the company can divest the SBU by phasing it out or selling it - in order to use the resources elsewhere (e.g. investing in the more promising "question marks").Business StrategiesStrategy – MissionA strategic plan starts with a clearly defined business mission. Mintzberg defines a mission asfollows:“A mission describes the organisation’s basic function in society, in terms of the products andservices it produces for its customers”.A clear business mission should have each of the following elements:Taking each element of the above diagram in turn, what should a good mission contain?A PurposeWhy does the business exist? Is it to create wealth for shareholders? Does it exist to satisfy theneeds of all stakeholders (including employees, and society at large?)A Strategy and Strategic ScopeA mission statement provides the commercial logic for the business and so defines two things: • The products or services it offers (and therefore its competitive position) • The competences through which it tries to succeed and its method of competingA business’ strategic scope defines the boundaries of its operations. These are set by management.For example, these boundaries may be set in terms of geography, market, business method, productetc. The decisions management make about strategic scope define the nature of the business.Policies and Standards of Behaviour ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination AnalysisA mission needs to be translated into everyday actions. For example, if the business missionincludes delivering “outstanding customer service”, then policies and standards should be createdand monitored that test delivery.These might include monitoring the speed with which telephone calls are answered in the sales callcentre, the number of complaints received from customers, or the extent of positive customerfeedback via questionnaires.Values and CultureThe values of a business are the basic, often un-stated, beliefs of the people who work in thebusiness. These would include: • Business principles (e.g. social policy, commitments to customers) • Loyalty and commitment (e.g. are employees inspired to sacrifice their personal goals for the good of the business as a whole? And does the business demonstrate a high level of commitment and loyalty to its staff?) • Guidance on expected behaviour – a strong sense of mission helps create a work environment where there is a common purposeStrategy: Values and VisionValues form the foundation of a business’ management style. Values provide the justification ofbehaviour and, therefore, exert significant influence on marketing decisions.Why are values important?If “values” shape the behaviour of a business, what is meant by “vision”? To succeed in the longterm, businesses need a vision of how they will change and improve in the future.The vision of the business gives it energy. • It helps motivate employees. • It helps set the direction of corporate and marketing strategy.What are the components of an effective business vision?Davidson identifies six requirements for success: • Provides future direction • Expresses a consumer benefit • Is realistic • Is motivating • Must be fully communicated • Consistently followed and measuredStrategy: Objectives"Objectives are statements of specific outcomes that are to be achieved"As we shall see, objectives are set at various levels in a business - from the top (corporate) andthrough the layers underneath (functional and unit). Objectives are often set in financial terms. Thatmeans that the objective is expressed in terms of a financial outcome that is to be achieved. Thosecould include: • Desired sales or profit levels • Rates of growth ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination Analysis • Amount of cash generated • Value of the business or dividends paid to shareholdersHowever, it is incorrect to say that objectives have to be expressed in money terms, or that theyhave to be able to be measured. Some objectives are hard to measure, but are often important. Forexample, an objective to be: • An innovative player in the market • A leading in the quality of customer serviceA popular way to look at objectives is to see them as part of a hierarchy of forward-looking termswhich help set and shape the strategy of a business. That hierarchy can be summarised asfollows:SMART objectivesThe SMART criteria are summarised below: • Specific - The objective should state exactly what is to be achieved. • Measurable - An objective should be capable of measurement – so that it is possible to determine whether (or how far) it has been achieved • Achievable - The objective should be realistic given the circumstances in which it is set and the resources available to the business. • Relevant - Objectives should be relevant to the people responsible for achieving them • Time Bound - Objectives should be set with a time-frame in mind. These deadlines also need to be realistic ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination Analysis UNIT 4: SOCIAL AND CULTURAL FEATURES IN DESTINATION ANALYSIS Chapter objectives • Identify and explain the tourist destinations main activities • Outline tourist attractions and activities of interest in a destination • Understand the determinants that can affect the destination activities: natural disasters • Discuss the growth of tourism industry in the 20th centuryTourist destination activitiesTourist activities can be segregated into different aspects of activities. The different aspects ofsegregations are in terms of tourist activities that are involve in: • Social activities • Demographic development • Economic activities • CultureAll the tourism activities can help to explore the specialty and uniqueness of the destinations, butalso may slow down the development of those particular destinations.Social ActivitiesThe concept was primarily developed in the non-positivist theory of Max Weber to observe howhuman behaviors relate to cause and effect in the social realm – for Weber, sociology is the study ofsociety and behavior and must therefore look at the heart of interactions.The theory of social action, more than structural functionalist positions, accepts and assumes thathuman vary their action according to social contexts and how it will affect other people; when apotential reaction is not desirable, the action is modified accordingly – action can mean either abasic action or an advanced social action, which not only has a meaning but is directed at otheractors and causes action.Social change involves changes in the nature, attitudes, and habits of the society – social changesare continually happening, and trends can be identified.Some of the identified trends are: • Rising standard of living may result in wider ownership of consumer and luxury goods, which have implications for those industries • Society attitude to business – in UK, increasing obligations and responsibilities are being heaped on to companies, not least with respect to environmental protection and ethical conduct • Increase social division between the rich and the poor have been noted • Changing family structure – there has been an increase in divorce and single parenthoodDemographics Development ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination AnalysisIn develop countries, the population is growing slowly or has practically ceased growing –population is still growing rapidly in developing countries. The age structure in most developedeconomies, the proportion of elderly people in the population is increasing.Geographic distribution, two contrasting factors are decreasing population of inner cities indeveloped countries and the flight from the country side in developing countries. Sex is referring tothe proportion of men and women. Class is referring to the distribution of wealth or life chancesbetween different groups.Example of demographic development in UK, cause by various activities: • Service and product – we might expect the consequences of an ageing population to include greater demand for health care services • Location of demand – there appears to be a gradual population shift out of the inner cities towards suburbs and small towns • Recruitment – a decline in the number of young people entering the workforce has encourage companies to reconsider their attitudes in employing married women, who leave work to have children but wish to return to employment later on, as well as older personnelEconomic ActivitiesThe stage of economy affects all organization, both commercial and non-commercial – the rate ofgrowth in the economy is a measure of the overall change in demand for goods and services.Growth is an indication of increase in demand – for example, an increase in gross domestic productof the population has wide effects.The forecasts state of economy will influence the planning process for organization which operateswithin it. In times of boom and increased demand and consumption, the overall planning problemwill be to identify the demand. Conversely, in times of recession, the emphasis will be on costeffectiveness, continuing profitability, survival and competition. The economic environmentchanges continually – predicted changes or developments in the economic environment can bevitally important for planning decisions.CultureCulture is the sum total beliefs, attitudes of mind and customs to which people are exposed in theirsocial conditioning – for example, the use of English language is one of the features of culture inUK.Culture has important implications for business, for example: • Over emphasis on legal formalities in the early days of commercial relationship might upset a Japanese partner, but formal legal documentation would be expected by US firm • The way products are promoted – i.e. nudity in advertising is frowned on in some countries but acceptable in others • Social attitudes – the roles of men and women in the household and in society, and their respective economic power have changed • The types of products that can be sold to a particular subculture – i.e. in some cultures/countries, alcohol is prohibited • Cultural variable are particularly significant for overseas marketing • Language differences have clear marketing implications – for example, brand names have to be translate, often leading to entirely different meaning in the new languageBenefits of cultural activities in developing destination: ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination Analysis • can be developed as major attractions in the destination • introduce the uniqueness of the local culture to the international tourist • opportunity to do a conservation program of the cultural activities • provide economic opportunity for local people that involved in the cultural activities • cross-cultural exchangeTourists’ attractions and activitiesTourist attractions can be categorized in various ways, all of which are logically based. Gunn(1988), for example, organizes them into touring circuit attractions (short-stay) and longer-stay(focused) attractions, based on two types of tourism: those that satisfy touring markets for travelerson tours involving many separate locational stops and those at or near longer-stay destinations.Lew (1987) reviewed the research methods used in the study of tourist attractions and the touristattractiveness of places and concluded that most studies can be classified into one or more of threegeneral perspectives: (1) the ideographic listing, (2) the organization and (3) the tourist cognition ofattractions – all these approaches make comparisons of attractions based on their historical,locational, and valuational aspects.Common systems of classification are: • Natural attractions that are based on features of the natural environment • Cultural attractions that are based on man’s activities • Special types of attractions that are artificially createdNatural AttractionsMajor categories of natural attractions include the following:ClimateA warm, sunny, dry climate is typically considered desirable by most tourists, especially those fromcold winter areas, and particularly when associated with other attractions such as beaches, marinesand mountain areas. But some types of popular tourist activities such a snow skiing require coldweather and snow but preferably still clear skies.Climatic seasonality must be considered in evaluating climate as an attraction. In evaluatingseasonality, consideration must be given to resource opportunities and markets available thatlengthen the tourist season create a double season or extend s high level of visitor use throughoutthe year.Scenic beautyThe overall natural scenic beauty of an area may be a major motivation to visit there – especially ifconservation measure has been applied. Associated are activities such as pleasure driving with stopsat scenic view points, hiking, picnicking, camping and wildlife viewing. Remote scenic areas mayoffer opportunities for adventure-oriented tourists engaging in activities such as river rafting, rockclimbing and long-distances trekking.Beaches and marine areasMajor attractions in many places in the world for activities like sunbathing, swimming, surfing,water skiing, parasailing, snorkeling, scuba diving, etc. Beach and marine areas should also haveconservation measures applied in the form of parks, reserves and development controls. ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination AnalysisFlora and faunaUnusual and interesting flora and fauna can be very important attractions, especially whencombined with scenic landscapes. Zoos, aquariums and botanic gardens are specialized flora andfauna features and, if well developed and maintained, can be major international attractions; such asSan Diego Zoo, botanic gardens at Kew near London and Bogor in Java, Indonesia.Special environmental featuresSpecial environmental features such as high mountains, unusual geological formations, caves,geysers, hot springs, and mild forms of volcanic activity are important attractions for both generalsight-seeing and special interest tourists.Parks and conservation areasImportant natural areas and their flora and fauna should be designated for some type ofconservation status – national and regional parks, nature reserves, and wildlife refuges. TheInternational Union for Conservation of Nature and Natural Resources (IUCN) has specifiedcategories and criteria for establishment of parks and conservation areas.Health tourismRelated to the natural environment - i.e. spas based on hot mineral waters. Another type thatdeveloped more recently is the ‘diet’ resorts, a place where people go to lose weight and regainphysical vitality. Some centers for treatment of drug addiction and alcoholism function in certainways as resorts and may be considered as a type of health tourism.Cultural AttractionsMajor types of cultural attractions, based on man’s activities, include those described in thefollowing:Archaeological, historical and cultural sitesIncluding cultural and national monuments, historic buildings, districts and towns, importantreligious buildings such as churches, synagogues, temples, mosques and monasteries, and places ofhistoric events such as battlefields.The United Nations Educational, Scientific and Cultural Organization (UNESCO) has begun theprocess of designating, based on certain criteria, the most important archaeological and historic sitesthroughout the world as world cultural heritage sites. Important for viewing by tourists and,reflecting tourism trends in recent years, participation by tourist laymen in archaeologicalexcavations, on a supervised basis, has become popular.Distinctive cultural patternsCultural patterns, traditions and life-styles that are unusual (different from those of the tourists) and,in some cases, unique to one place can be of much interest to many tourists. These cultural patternsinclude customs, dress, ceremonies, life-styles, and religious beliefs and practices and are oftenassociated with rural and village life but may be prevalent in some urban places.Arts and handicraftsThe performing arts forms, including dance, music and drama, and the fine arts of painting andsculpting can be important attractions – especially if effectively presented. Performing arts centersand theaters are often developed at considerable cost for presentation of the performing arts,primarily for the benefit of residents but often substantially supported by tourists. Handicrafts of anarea can be both an interesting attraction for tourists and a source of income for local artisans. ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination AnalysisInteresting economic activitiesAn often successful type of specialized cultural attraction is observation, description and sometimesdemonstration of interesting economic activities such as operation of tea and rubber plantations andprocessing plants, use of working elephants in a tropical forest, traditional fishing and agriculturaltechniques in many areas. Traditional market places are also widely popular with tourists.Interesting urban areasUrban areas with their varied architectural styles, historic buildings and districts, civic centers,shopping facilities, restaurants, parks and street life are of interest to many tourists who enjoygeneral urban sightseeing and absorbing the ambience of a city’s character, as well as visitingspecific attraction features such as museums and public buildings. In some cities, theaterperformances, including plays, operas, concerts and dance presentations are major attractions fortourists as well as residents.Museums and other cultural facilitiesDifferent types of museums on such themes as archaeology, history, ethnology, natural history, artsand crafts, science and technology industry, and many specialized subjects. Other cultural facilitiessuch as cultural centers, important commercial art galleries and antique shops.Cultural festivalsVarious types of cultural festivals related to the local traditions and arts can be major attractions.Friendliness of residentsAlthough not quantifiable, a very real attraction for many tourists can be the friendly, hospitablecharacter of local residents and, more generally, their tolerance and acceptance of tourists visitingtheir environment.Special Types of AttractionsTheme parks, amusement parks and circusesTheme parks are oriented to particular themes, such as history, adventure, unusual geographicplaces, fantasy and futurism, or a combination of these in one park, and offer simulated experiences,shows, thrill rides, shopping, and a variety of restaurants and snack bars in a clean and controlledenvironmentShoppingShopping is a significant activity and type of expenditure of many tourists and must be consideredin tourism planning. In urban tourism, large department stores that are internationally well-knownattract many tourists visiting those cities. Duty-free (which actually may refer to low duty but notfree of duty) shopping for consumer goods has been developed as a major attraction in cities such asHong Kong and Singapore.Meetings, conferences and conventionsMany countries, regions, cities, resorts and individuals hotels have developed various types ofmeeting facilities and some conference facilities, such as the Trade and Convention Center inVancouver, Canada.Conference tourism is highly competitive and should be carefully evaluated for an area to determineits overall market and economic feasibility and the most appropriate type of facilities to bedeveloped. At any scale of development, conference centers must meet certain standards and oftenneed to include specialized facilities and services such as for simultaneous language translation andexhibit space. ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.
Destination AnalysisSpecial eventsSpecial events can be major tourist attractions for short times period – these are organized for thepurpose of attracting tourists and also for reasons such as national or regional prestige and gainingnew facility complexes for permanent use.Gambling casinosHave been developed in certain places as major attraction – usually in areas that have limitednatural and cultural attraction features. Often developed to supplement the basic attraction of anarea such as has been done in Monaco.EntertainmentRelative to the traditional and contemporary performing arts and its association with gamblingcasinos and their resort environment – nightclubs, discos, etc. Some places providingentertainments based on local culture – folk dancing and singing, or contemporary music and dance.Recreation and sportCan be important primary or secondary attractions for tourists – polo grounds, tennis centers, horseand other types of tracks, etc.Tourist Facilities and Services as AttractionsHotels and resortsWell-designed, historic or unusual hotels and resorts can be attractions in themselves. Beside that,usually high quality service is associated with these types of hotels and resorts.TransportationInteresting, historic and unusual forms of transportation can also be made into attractions such asthe Nile River Cruise in Egypt.CuisineThe food of an area, in addition to being an important service for tourists, can be significantsecondary tourist attraction, especially if the area offers a special type of cuisine that is wellprepared and presented.Other Attractions ConsiderationsIn addition to tourist attraction features, there are several other considerations that must be made inevaluating the attractiveness of the tourism area.Ethnic, religious and nostalgic associationsEthnic associations often relate to the ancestral origin of the tourists – for example, overseas ethnicChinese visiting their ancestral villages in China. Religious pilgrimages comprise a major type oftravel in many places of the world, and very important sacred places generate much long-distancetravel.Examples of historic associations as attractions are the visits made by Japanese and Americans toplaces in the Pacific Islands, where they fought during World War II, and of retired colonialadministrators visiting former colonies where they previously stationed and may have lived formany years – sometimes referred to as nostalgic tourism. ©2012 World-Point Academy of Tourism Sdn. Bhd. All Rights Reserved.