Chapter 4 Tourism Planning and DevChapter 4 Tourism Planning and Developmentelopment

Learning ObjectivesLearning Objectives

Explain the reasons & purposes for tourism planning. Identify the barriers to tourism planning. Describe the steps in the tourism planning process. Describe and differentiate among tourism position statements, vision

statements, goals, strategies, and objectives.• Explain the concept and principles of sustainable tourism development.• Describe the main forms of tourism development.• Discuss government and private-sector roles in tourism development. • Describe the role and types of government incentives for tourism

development and the criteria for government financial assistance.• Describe the objectives and steps in completing a pre-feasibility study and

an economic feasibility study. • Identify the two main groups concerned with the results of economic

feasibility studies and discuss the questions they typically want answered.• Explain the purposes of preparing an environmental impact assessment.

Overview Overview The destination area with and without tourism

planning Barriers to tourism planning Purposes of tourism planning Tourism planning process Building a sustainable future for tourism The link between tourism planning and

tourism development Government and private-sector participation

in tourism development Analysis of individual project development

opportunities

The destination area withThe destination area withtourism planningtourism planning

Planning is a process of selection from among alternative courses of action.

Five basic reasons for tourism planning: Tourism development has both positive and negative

impacts; (destination life cycle) More competitive situation; More complicated phenomenon; Tourism has damaged natural and cultural resources; Community involved.

Butler’s Tourism Destination Butler’s Tourism Destination Lifecycle ModelLifecycle Model

Source: http://www.destinationrecovery.com/destinationlifecycle.html

Like most products, destinations have a product lifecycle. Butler proposed a widely-accepted tourism destination lifecycle model which has 7 distinct stages:1. Exploration

A destination begins as a relatively unknown and adventurous visitors initially come in small numbers restricted by lack of access, facilities, and local knowledge. 

2. Involvement Local investment in tourism and tourism advertising start. Visitor number

begin to increase and government agencies start to develop the infrastructure.

3. Development There is a rapid growth in visitor numbers as the destination becomes heavily

advertised. The amenities are increased and improved. Visitors change to less adventurous.

Seven stages of destination life cycleSeven stages of destination life cycle

4. Consolidation Growth in visitor numbers will decline, although total numbers will still

increase. Tourism becomes “mass market”

5. Stagnation The peak numbers of visitors will have been reached.  Capacity levels for

many variables will have been reached or exceeded.  The area will have a well-established image but it will no longer be in fashion.  There will be heavy reliance on repeat visitation and on conventions and similar forms of traffic.

6. Decline Visitor number decrease. External investors begin to pull out.

7. Rejuvenation New attractions are developed or new natural resources are used to

reverse the negative trends in visitor arrivals.

Seven stages of destination life cycleSeven stages of destination life cycle

Representative destination classificationsRepresentative destination classifications

Consequences of unplanned development: Physical Human Marketing Organizational Other

The destination area without The destination area without tourism planningtourism planning

Barriers to tourism planningBarriers to tourism planning The objections to the principle of tourism

planning; Cost of this process is high; The complexity (ownership) of tourism and the

large number of government agencies involved; The diversity of tourism business (sector, size); The seasonality The high ownership turnover in tourism

businesses.

Five basic purposes Identifying alternative approaches; Adapting to the unexpected; Maintaining uniqueness; Creating the desirable; Avoiding the undesirable.

Purposes of tourism planningPurposes of tourism planning

Tourism planning processTourism planning process

Seven steps1. Background analysis2. Detailed research and analysis3. Synthesis and visioning4. Goal-setting, strategy selection, and

objective-setting5. Plan development6. Plan implementation and monitoring7. Plan evaluation

Step 1: Background AnalysisStep 1: Background Analysis

Government policies, goals, objectives, and programs Existing destination mix elements and components Existing tourism demand Tourism strengths, weaknesses, problems, and issues

Step 2: Detailed Research and AnalysisStep 2: Detailed Research and Analysis

Resource analysis Activity analysis Market analysis Competitive analysis

Step 3: Synthesis and VisioningStep 3: Synthesis and Visioning

Position statements Describe the existing situations in tourism development,

marketing, organization, community awareness, and support services and activities.

Vision statements Reflect the desired future states in tourism development,

marketing, organization, community awareness, and support services and activities.

Step 4: Goal-Setting, Strategy Selection, Step 4: Goal-Setting, Strategy Selection, and Objective-Settingand Objective-Setting

Goals Results or outcomes that the destination area

tries to achieve within three to five years.Strategies Broad approaches selected to achieve tourism

goals that help to translate existing conditions into desired future situations.

Objectives Results or outcomes that the destination area

tries to achieve within one to two years.

Step 5: Plan DevelopmentStep 5: Plan Development

Description of programs, activities, roles, and funding

Writing of tourism plan reports

Step 6: Plan Implementation and MonitoringStep 6: Plan Implementation and Monitoring

Plan implementation: The tourism plan is put into action by a governmental tourism agency.

Plan monitoring: As the plan is being implemented, the coordinating agency checks to ensure that progress is made as originally intended.

Plan evaluation: The performance on goals and objectives is measured and recommendations made for future tourism planning

Step 7: Plan EvaluationStep 7: Plan Evaluation

The performance on goals and objectives is measured. Recommendations are made for future tourism

planning based on the results and outcomes of this plan.

Sustainable Tourism DevelopmentSustainable Tourism Development

“Tourism which is developed and maintained in an area in such a manner and at such a scale that it remains viable over an indefinite period and does not degrade or alter the environment (human and physical) in which it exists to such a degree that it prohibits the successful development and well-being of other activities and processes.”

Butler, R. W. (1993)

Tourism DevelopmentTourism Development

Principles of Sustainable Tourism Principles of Sustainable Tourism DevelopmentDevelopment

1. To improve the quality of life of the host community

2. To provide a high quality experience for visitors

3. To maintain the quality of the environment on which both the host community and the visitors depend

Ding, P., & Pigram, J. (1995)

Main Forms of Tourism DevelopmentMain Forms of Tourism Development

Low-impact to high-impact tourism Ecologically sustainable tourism development (ESTD) Alternative tourism Mass tourism Resort tourism

Private-Sector Roles in Tourism Private-Sector Roles in Tourism DevelopmentDevelopment

Idea generation Entrepreneurial role Specialized technical skills Financing

Volunteer Sector Roles in Tourism Volunteer Sector Roles in Tourism DevelopmentDevelopment

Operating attractions Creating and running events and special meals Providing travel information services Financing the development of community-oriented

facilities

Government Roles in Tourism Government Roles in Tourism DevelopmentDevelopment

Stimulator or catalyst for development Developer Operator Social tourism provider Regulator of tourism developments

Types of Government Incentives for Types of Government Incentives for Tourism DevelopmentTourism Development

FISCAL INCENTIVES

Tax holidays or deferrals Remission of tariffs Tax reductions

Types of Government Incentives for Types of Government Incentives for Tourism DevelopmentTourism Development

DIRECT AND INDIRECT INCENTIVES

Nonrefundable grants Low-interest loans Interest rebates Forgivable loans Loan guarantees Working capital loans

Types of Government Incentives for Types of Government Incentives for Tourism DevelopmentTourism Development

DIRECT AND INDIRECT INCENTIVES

Equity participation Training grants Infrastructure assistance Lease backs Land donations

Criteria for Government Financial Criteria for Government Financial AssistanceAssistance

Competitive impact Compliance with policies and plans Developer and operator capabilities Economic contributions Environmental impact Equity contributions Feasibility Social-cultural impact Tourism impact

Objectives of Pre-Feasibility and Objectives of Pre-Feasibility and Feasibility StudiesFeasibility Studies

Pre-feasibility study: To determine whether a detailed economic feasibility study is justified and which topics the detailed study should address.

Detailed economic feasibility study: To determine the economic feasibility of a tourism development project opportunity.

Steps in Feasibility StudiesSteps in Feasibility Studies

Pre-feasibility study

Detailed economic feasibility study:

Site analysis Market analysis Economic feasibility analysis Cost/benefit analysis

Purposes of an Environmental Impact Purposes of an Environmental Impact AssessmentAssessment

To identify risks, minimize adverse impacts, and determine environmental acceptability.

To achieve environmentally sound proposals through research, management, and monitoring.

To manage conflict through the provision of a means for effective public participation.

Ecologically Sustainable Development Working Group. (1991)