Tourism in Perspective

Tourism: Principles, Practices, Philosophies9th Edition - 2003

Destination Vision FrameworkChapter 15: Tourism Policy, Structure, Content and ProcessPart Four: Tourism Supply, Demand Policy, Planning, and Development

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Relate tourism planning to tourism policy.Discover what the goals of tourism development should be.Recognize that some serious barriers to tourism development must be overcome if a desired growth is to occur.Learn the political and economic aspects of development including those related to developing countries.Appreciate the importance of architectural design and concern for heritage preservation, local handicrafts, and use of indigenous materials in creating tourist facilities.Learning ObjectivesChapter 16: Tourism Planning, Development, and Social ConsiderationPart Four: Tourism Supply, Demand Policy, Planning, and Development


Relating Tourism Planningto Tourism PolicySIMILARITIES1.They both deal with the future development of a tourism destination or region;2. They both emphasize the strategic dimensions of managerial action although planning must also address a number of tactical concerns.DIFFERENCES1.Policy formulation is definitely very big picture while much of planning is characterized by an attention to detail;2.Policy formulation is a creative, intellectual process, while planning is generally a more constrained exercise;3.Policy, and particularly its visioning component, has a very long-term strategic emphasis, while planning tends to be more restrictive in its time horizon. A one-year planning cycle is not uncommon, although 3-5 year plans are a possibility. In contrast, destination visions may have a 5, 10, 50, or even a 100 year time horizon;4.Policy formulation must allow for as yet unseen circumstances and technologies to be considered. In contrast, planning tends to assume current conditions and technologies, with some allowances for predictable, or evolutionary change;5.Policy formulation tends to emphasize a systematic determination of WHAT should be done in long-term tourism development, while planning tends to emphasize the HOW for the achievement of specific destination goals.

Chapter 16: Tourism Planning, Development, and Social ConsiderationPart Four: Tourism Supply, Demand Policy, Planning, and Development


Some Advantages of TourismProvide employment opportunitiesGenerates foreign exchangeIncreases incomesIncreases GNPDevelopment of tourism infrastructure helps to stimulate local commerce and industryJustifies environmental protection and improvementIncrease governmental revenues Diversifies the economyCreates a favorable worldwide image for the destinationFacilitates the process of modernizationProvides tourist and recreation al facilities for the local populationProvides foreigners and opportunity to be favorable impressed by little-known nation or regionsChapter 16: Tourism Planning, Development, and Social ConsiderationPart Four: Tourism Supply, Demand Policy, Planning, and Development


Some Disadvantages of Tourism1.Develops excess demand2.Creates leakages so great that economic benefits do not accrue3.Diverts funds from more promising forms of economic development4.Creates social problems from income differences, social differences, introduction of prostitution, gambling, crime, and so on5.Degrades the natural physical environment6.Degrades the cultural environment7.Poses the difficulties of seasonality8.Increases vulnerability to economic and political changes9.Adds to inflation of land values and the price of local goods and services

Chapter 16: Tourism Planning, Development, and Social ConsiderationPart Four: Tourism Supply, Demand Policy, Planning, and Development


The Planning Process1.Define the system2.Gather data3.Analyze and interpret4.Create the preliminary plan5.Approve the plan6.Create the final plan7.Implement the planChapter 16: Tourism Planning, Development, and Social ConsiderationPart Four: Tourism Supply, Demand Policy, Planning, and Development


Goals of Tourism Development1.Provide a framework for raising the living standard of the people through the economic benefits of tourism2. Develop an infrastructure and provide recreation facilities for visitors and residents alike3. Ensure development within visitor center and resorts is appropriate to those areas4. Establish a development program consistent with the cultural, social , and economic philosophy of the government and people of that region5. Optimize visitor satisfactionChapter 16: Tourism Planning, Development, and Social ConsiderationPart Four: Tourism Supply, Demand Policy, Planning, and Development


Recognize the world-wide importance of natural resource conservation and sustainable tourism development.Learn how ecotourism can benefit local people.Understand the dangers and limitations of ecotourism.Understand tourist codes of ethics and guidelines.Learn current environmental practices of tourism organizations and suppliers.Learn how to maintain natural destinations.Learning ObjectivesChapter 17: Tourism and the EnvironmentPart Four: Tourism Supply, Demand Policy, Planning, and Development


The WTTC~ Four Myths of Tourism~Myth #1:Travel & Tourism is a non-essential, mass activity of affluent people in developed countries.Myth #2:Tourisms major environmental impact is damage to developing countries.Myth #3:Ecotourism is the only logical, sustainable response to the environmental impacts of Travel & Tourism.Myth # 4:Comprehensive planning regulations and control are the only way to curb the environmental exploitation of Travel & Tourism.

Chapter 17: Tourism and the EnvironmentPart Four: Tourism Supply, Demand Policy, Planning, and Development


WTTC~ Key Environmental Issues ~Global warmingDepletion of the ozone layerAcid rainDepletion and pollution of water resourcesDepletion and pollution of land resources



WTTC~ Implications of Resource Depletion ~Political instability or increased competition for land could lead to loss of potential new tourism destinations and degradation of existing destinations.Loss of landscape and wildlife could cause a decrease in customer satisfaction with tourism products and hence lower propensity to travel to some destinations.Higher fuel prices could lead to operational price increases and corresponding decreases in the number of travelers in this price-sensitive market.



Elements of the WTTC Vision of Travel & Tourismand the EnvironmentTravel & Tourism is an integral aspect of modern societiesGlobal awareness of environmental damage is developing rapidlyThe resources of the worlds largest industry can and must be harnessed to achieve environmental goalsThe industry has the potential to influence billions of customers per years and to use its leverage to achieve beneficial environmental effectsThe customer challenge will exert a growing pressure to achieve environmental improvementsEnvironmental lobbies will add pressure to develop good environmental practiceSelf-regulation must be developed rapidly and effectively and used to influence the development of appropriate and workable regulationsCorporate environmental mission statements are a vital first step toward self-regulationEnvironmental leadership must come from the major international companies



The Premises of Sustainable DevelopmentThe Premise of InterdependencyThe Premise of MultidisciplinarityThe Premise of Previous ExperienceThe Premise that Nature is BetterThe Premise of Politics and PowerChapter 17: Tourism and the EnvironmentPart Four: Tourism Supply, Demand Policy, Planning, and Development


Sustainable Development and Tourism: The Critical AreasDefining the Relevant Population/CommunityDefining the Time HorizonDefining the Dimensions of SustainabilityDefining the Values that Underlie Sustainable DevelopmentChapter 17: Tourism and the EnvironmentPart Four: Tourism Supply, Demand Policy, Planning, and Development


Sustainable Development in Tourism:A Possible Allocation of ResponsibilityChapter 17: Tourism and the EnvironmentPart Four: Tourism Supply, Demand Policy, Planning, and Development

Level/Organization

Responsibilities

Host Community/Region

Defining the tourism philosophy and vision for the community/region

Establishing social, physical and cultural carrying capacity for the host community/region

Destination Management

Community-Organization

Coordination of implementation of community SD plan tourism

Monitoring of levels and impact of tourism in the community/region

Individual Tourism

Firms and Operators

Fair contribution to implementation of SD plan for tourism

Observance of regulations, guideline and practices for SD

Host Community/Region

Encouragement/acceptance of tourism within parameter of SD plan

Visitors/Tourists

Acceptance of responsibility for minimal self-education with respect to values of host region

Acceptance and observance of terms and conditions of host community SD plan for tourism


Sustainable Tourism~ An Agenda for Action ~ACTIVITIES:Coordinating the development of a tourism philosophy and vision for the community/ regionSpecifying the major goals of the community/region with respect to tourismObtaining consensus concerning the social, physical, and cultural carrying capacity of the community/region in questionIdentifying the specific action initiatives necessary to meet the tourism development objectives while respecting the destinations carrying capacitiesGaining agreement on the measures to be used in monitoring the impacts of tourism in the community/regionGathering and disseminating information concerning the impacts of tourism on the community/region



Sustainable Tourism~ An Agenda for Action ~PROGRAM ELEMENTS:Maximum total visitation levels to a community/regionAn obligatory tax to support tourism infrastructure planning, development, and maintenanceCommunity-supported legislation to protect and preserve unique resources and heritage sitesCommunity and industry consensus concerning architectural and signage standardsSupport for standards and certification programs that encourage staff development and the delivery of high-quality service



Responsible travel to natural areas that conserves the environment and sustains the well-being of local peopleEnvironmentally friendly travel that emphasizes seeing and saving natural habitats and archeological treasuresA tool for conservationEcologically responsible tourismDefinitions of EcotourismSome definitions of ecotourism are as follows:Chapter 17: Tourism and the EnvironmentPart Four: Tourism Supply, Demand Policy, Planning, and Development


Provides jobs and income for local peopleMakes possible funds to purchase and improve protected or natural areas to attract more ecotourists in the futureProvides environmental education for visitorsEncourages heritage and environmental preservation and enhancementBenefits and Importance of EcotourismChapter 17: Tourism and the EnvironmentPart Four: Tourism Supply, Demand Policy, Planning, and Development


Translating Idealism into Sustainable Tourism~ What Managers Need to Know ~Measures ofThe general relationship between tourism and the environmentThe effects of environmental factors on tourismThe impacts of the tourism industry on the environmentChapter 17: Tourism and the EnvironmentPart Four: Tourism Supply, Demand Policy, Planning, and Development


Types of IndicatorsCore indicators of sustainable tourism which have been developed for general application to all destinationsDestination-specific indicators applicable to particular ecosystems or types of tourism. These indicators fall into two categories:Supplementary ecosystem-specific indicators for application to particular ecosystems (e.g., coastal areas, parks and protected areas, or mountainous regions).Site-specific indicators that are developed uniquely for the particular site. These indicators reflect important factors of the site. Which may not be adequately covered by the core and supplementary eco-system-specific indicator sets, but are nonetheless needed for management of the particular site.



Core Indicators of Sustainable TourismaInternational Union for the Conservation of Nature and Natural ResourcesbThe composite indices are largely composed of site-specific variables. Consequently, the identification and evaluation of the indicators composing these indices require on-site direction from an appropriately trained and experienced observer. In the future, based on the experiences in designing composite indicators for specific sites, it may be possible to derive these indices in a more systematic fashion. See the case studies for Villa Gesell and Peninsula Valdes for application of these indices.Source: World Tourism OrganizationChapter 17: Tourism and the EnvironmentPart Four: Tourism Supply, Demand Policy, Planning, and Development

Indicator

Specific Measures

Site Protection

Category of site protection according to IUCNa index

Stress

Tourist numbers visiting site (per annum/peak month)

Use Intensity

Intensity of use in peak period (persons/hectare)

Social Impact

Ratio of tourists to locals (peak period and over time)

Development Control

Existence of environmental review procedure or formal controls over development of site and use densities

Waste Management

Percentage of sewage from site receiving treatment (additional indicators may include structural limits of other infrastructural capacity on site, such as water supply)

Planning Process

Existence of organized regional plan for tourist destination region (including tourism component)

Critical Ecosystems

Number of rare/endangered species

Consumer Satisfaction

Level of satisfaction by visitors (questionnaire-based)

Local Satisfaction

Level of satisfaction by locals (questionnaire-based)

Tourism Contribution to Local Economy

Proportion of total economic activity generated by tourism only

Composite Indicesb

Specific Measures

Carrying Capacity

Composite early warning measure of key factors affecting the ability of the site to support different levels of tourism

Site Stress

Composite measure of levels of impact on the site (its natural and cultural attributes due to tourism and other sector cumulative stresses)

Attractivity

Qualitative measure of those site attributes that make it attractive to tourism and can change over time


Tourism Industry Associations of CanadaEnjoy our diverse natural and cultural heritage and help us to protect and preserve it.Assist us in our conservation efforts through the efficient use of resources, including energy and water.Experience the friendliness of our people and the welcoming spirit of our communities. Help us to preserve these attributes by respecting our traditions, customs, and local regulations.Avoid activities which threaten wildlife or plant populations, or which may be potentially damaging to our natural environment.Select tourism products and services that demonstrate social, cultural, and environmental sensitivity.Chapter 17: Tourism and the EnvironmentPart Four: Tourism Supply, Demand Policy, Planning, and Development


Common Features of All Codesthe need to make an overall commitment to the physical and human environment, to accept responsibility for environmental damage and take corrective action where necessary, and to promote and reward outstanding environmental performance;the need to develop policies and strategies that take account of land-use planning regulations and the need to protect some areas from further development;the need to develop management policies that enhance beneficial and minimize adverse impacts on the environment; andthe need to cooperate with other firms, sectors and countries.



Recognize the role and scope of travel researchLearn the travel research processStudy secondary data and how it can be usedUnderstand the methods of collecting primary dataKnow who does travel research

Learning ObjectivesChapter 18: Travel and Tourism ResearchPart Five: Essentials of Tourism Research and Marketing


1.To delineate significant problems2.To keep an organization or a business in touch with its markets3.To reduce waste4.To develop new sources of profit5.To aid in sales promotion6.To create goodwillUses of Travel ResearchSome uses or functions of travel research are:Chapter 18: Travel and Tourism ResearchPart Five: Essentials of Tourism Research and Marketing


1.Identify the problem2.Conduct a situation analysis3.Conduct an informal investigation4.Develop a formal research design5.Collect the data6.Tabulate and analyze7.Interpret8.Write the report9.Follow upThe Travel Research ProcessChapter 18: Travel and Tourism ResearchPart Five: Essentials of Tourism Research and Marketing


Sources of Information Secondary DataSaves time and money if the data is related to your problem and is relatively current.

The following criteria may be use to appraise the value of information obtained from secondary data sources:1.The organizations supplying the data2.The authority under which the data was gathered3.Freedom from bias4.Adequacy from the sample5.The nature for the unit in which the data are expressed6.Accuracy of the data7.Pertinency to the problem 8.Careful workChapter 18: Travel and Tourism ResearchPart Five: Essentials of Tourism Research and Marketing


Basic Research MethodsFocus Groups The Survey MethodFactual surveysOpinion surveysInterpretive surveysPersonal interviewsTelephone surveysMail surveysElectronic devices Observational method Experimental method

Chapter 18: Travel and Tourism ResearchPart Five: Essentials of Tourism Research and Marketing


Become familiar with the marketing mix and be able to formulate the best mix for a particular travel product.Appreciate the importance of the relationship between the marketing concept and product planning and development.Understand the vital relationship between pricing and marketing.Know about distribution systems and how this marketing principle can best be applied to a variety of travel products.Be able to do market segmentation to plan a marketing program for the business you are most interested in.Understand the principles of branding and examine their applicability to destination branding.

Learning ObjectivesChapter 19: Tourism MarketingPart Five: Essentials of Tourism Research and Marketing


Marketing MixThe marketing mix is composed of every factor that influences the marketing effort.1. Timing2. Brands3. Packaging 4. Pricing5. Channels of distribution6.Product7.Image8.Advertising9.Selling10.Public relationsChapter 19: Tourism MarketingPart Five: Essentials of Tourism Research and Marketing


Product Life CycleChapter 19: Tourism MarketingPart Five: Essentials of Tourism Research and Marketing


Factors that Influence Price Policies1.Product quality2.Product distinctiveness3.Extent of the competition4.Method of distributionCharacter of the marketCost of the product and service7.Cost of distribution8.Margin of profit desired9.Seasonality10.Special promotional prices11.Psychological considerationsChapter 19: Tourism MarketingPart Five: Essentials of Tourism Research and Marketing


Price SkimmingSkimming is appropriate when the product or service has the following characteristics: Price inelasticity No close substitutes High promotion elasticity Distinct market segments based on priceChapter 19: Tourism MarketingPart Five: Essentials of Tourism Research and Marketing


Penetration PricingHigh price elasticityEconomies of scalesAn easy fit of the product into consumer purchasing patternsPenetration pricing is appropriate when the following factors are present:Chapter 19: Tourism MarketingPart Five: Essentials of Tourism Research and Marketing


Selection of Channels of DistributionChannels of distribution are selected by:1.Analyzing the product2. Determining the nature and extent of the market3.Analyzing the channels by sales4.Determining the cooperation you can expect from the channel5.Determining the assistance you will have to give to the channel6.Determining the number outlets outlets to be usedChapter 19: Tourism MarketingPart Five: Essentials of Tourism Research and Marketing


PromotionIn order to sell the product it is necessary to:1. Attract attention2. Create interest3. Create a desire4. Get actionChapter 19: Tourism MarketingPart Five: Essentials of Tourism Research and Marketing


Typical Bases for Market SegmentationGeographicDemographicSocio-economicPsychographicBehavior patternsConsumption patternsConsumer predispositionsChapter 19: Tourism MarketingPart Five: Essentials of Tourism Research and Marketing


Examine forecasts concerning the growth of international tourism.Identify the major global forces which are shaping the tourism of tomorrow.Understand the impacts, both positive and negative, which these forces are likely to have on tourism markets and on the ability of destinations to respond to the demands of these markets.Highlight the powerful and positive impact that the environmental movement has had, and will increasingly have, on tourism development.Learning ObjectivesChapter 20: Tourisms FuturePart Six: Tourism Prospects


The World of Tourismin 2020Chapter 20: Tourisms FuturePart Six: Tourism Prospects

Forecasts of International Tourists Arrivals (millions) Worldwide and by Region 1995-2020

Regions

Tourist Arrivals (million)

1995

2000

2010

2020

Europe

335

390

527

717

East Asia/Pacific

80

116

231

438

Americas

111

134

195

284

Africa

20

27

46

75

Middle East

14

19

37

69

South Asia

4

6

11

19

World

564

692

1,047

1,602


Forces Impacting The Future of TourismEconomic A decline in the mega-nation-rise of the city state PoliticalSocio-environmental awarenessTechnologyEmergence of the knowledge based societyDemographic shiftsShifting value systemsDiversity within a homogeneous worldQuest for stability and securityPressures for mass migrationChange from a service to an experience economyEvolution of leisure timeCompetition for leisure time

Chapter 20: Tourisms FuturePart Six: Tourism Prospects


WTO Tourism to the Year 2020Chapter 20: Tourisms FuturePart Six: Tourism Prospects

The principal determinants of, and influences on, international tourism activity taken over the duration of the 1995 and 2020 period are identified as being:

Economic

continued moderate-to-good rates of global economic growth

above average economic performance of the Asian tiger economies

emerging importance of new tiger economies (i.e. China, India, Brazil, Indonesia, Russia)

widening gap between rich-poor countries

spread of harmonization of currencies

Technology

information technology development

transport technology advances

Political

removal of barriers to international travel

transport and other forms of deregulation

Demographic

aging population and contracting workforces in industrialized countries leading to South(North migration

erosion of the traditional western household

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WTO Tourism to the Year 2020Chapter 20: Tourisms FuturePart Six: Tourism Prospects

(continued from previous slide)

Globalization

growing power of international economic and market forces and consequent reduced control of individual states and non-global corporation

Localization

conflict in developing countries between identity and modernity

demand from groups defined on ethnicity, religion and social structures to be recognized in their own rights

Socio-Environmental Awareness

boosted public awareness of socio-cultural and environmental issues

greater media reporting on major global problems (e.g. reducing water supplies)

Living and Working Environments

growing urban congestion both in the industrialized and (especially) developing worlds

Change from Service to Experience Economy

focus switching to delivering unique experiences that personally engage the customer

Marketing

use of electronic technology to identify and communicate with market segments and niches



Economic

New Realities

New Horizons

Many high-quality public facilities and attractions that have traditionally been supported and/or subsidized by governments will come under serious funding pressures.

Market competition will prove a powerful force in keeping the costs of travel under control, thus keep accessible to a large percentage of the population.

It will become more difficult to justify and to publicly finance large-scale megaprojects or megamonuments, some of that have become major, symbolic tourism attractions. As well, supporting infrastructure, such as roads and airports, will be more difficult to finance.

There will be new opportunities for innovative financing approaches for megaprojects and megadevelopments that enjoy the support of the residents of a destination (e.g., community bonds).

Rise of the City State

New Realities

New Horizons

Large countries will find it less desirable and less productive to undertake general awareness-type promotion; budgets for such promotions will decline.

Those highly focused destinations that have high visibility, good access, an attractive product, and which can develop a distinctive image will dominate the market.

Smaller destinations having no particularly unique characteristics will find it even more difficult to compete with higher-profile centers.

Strategic alliances and reciprocal agreements between city-states that complement one another will grow in importance.

Nations/economic communities may become much more demanding in terms of visitor entry requirements as they perceive that tourists risk transforming themselves into refugees or defacto immigrants.

Diverse, multicultural societies brought about through immigration will create increased demand for travel as people exchange visits with families and friends.

Destination residents may become increasingly less tolerant of visibly or linguistically different visitors whom they see as posing a threat as a potential immigrant.

Ethnic groups in tourism generating countries will have the opportunity to develop, educational/cultural travel experiences for their compatriots. Such experiences could involve both pre-travel and travel experiences.



The Move to Branding of Destinations

New Realities

New Horizons

Destinations will have the ability to identify and differentiate themselves more effectively.

Destinations cannot be modified like other consumer products when it is found the existing brand is viewed negatively.

The value in creating unique brands will increase dramatically.

The expertise for destination brand creation is hard to findand costly.

Smaller destinations having no particularly unique characteristics will find it even more difficult to compete with higher-profile centers.

Strategic alliances and reciprocal agreements between city-states that complement one another will grow in importance.

Nations/economic communities may become much more demanding in terms of visitor entry requirements as they perceive that tourists risk transforming themselves into refugees or defacto immigrants.

Diverse, multicultural societies brought about through immigration will create increased demand for travel as people exchange visits with families and friends.

Political

New Realities

New Horizons

The tourism planning and development process will be increasingly constrained and slowed by the need for meaningful public involvement and input.

Implementation of approved development plans will be easier as surprises will be minimized and as broader agreement results from public involvement.

It will be more difficult for individual operators to proceed with nonconforming developments sometimes at the risk of inhibiting innovation.

The formulation of resident responsive visions of local/regional tourism will provide more commitment to tourism and greater coherency in the tourism product/experience provided by a destination.

Environmental

New Realities

New Horizons

Virtually all future tourism development will be constrained by the need for environmental sensitivity.

Conservation, preservation, and restoration present new themes for the design of tourism experiences. Regions that are presently undeveloped or in a natural state have a unique opportunity to provide an attractive experience to visitors.

The non-economic costs of tourism will need to be factored into development decisions. The costs of development, using nontraditional accounting frameworks, will increase, thus forcing higher prices on the travel experience.

Emphasis on the quality of the tourism experience will reduce growth in the number of travelers but enhance net financial and non-financial impacts on tourism destinations.



Technology

New Realities

New Horizons

The rapid evolution of technology makes the investment in hardware, software, and training more than many tourism firms can afford.

Certain sectors of tourism are finding technology to be a cost-effective means for marketing to small niche markets; other larger sectors are proving highly successful in utilizing technology to actually close sales.

Much of the human resource base of the tourism industry is ill-equipped and thus ill-disposed toward the widespread adoption of technology. At least passive resistance may be encountered at all levels.

Because of the present low level of penetration of technology on tourism, there is much potential for significant gains on performance and productivity both in terms of facility design and service delivery.

Introducing technology without losing the warmth of the human experience will be difficult. Choosing the appropriate balance of high-tech/high-touch will require insight and good judgment.

Education and training levels will have to increase if managers and staff are to select and implement technology-based improvements in an effective manner (EIESP, 1991).

The Knowledge-Based Society

New Realities

New Horizons

Modem technology is increasingly attempting to provide alternatives to physical travel. Teleconferencing is finally gaining wider acceptance; virtual interface technology purports to provide the travel experience without travel.

Travelers will increasingly want to truly experience and understand a destination. As a result, they will be interested in spending more time in a region and interfacing with residents in more meaningful ways.

Knowledge-based employees tend to work in sanitized, controlled environments. As such, they may shun travel experiences that are physically challenging, moderately uncomfortable, or culturally threatening.

Travelers of the future will be increasingly receptive to technologies and services that facilitate travel while reducing costs and minimizing the need for menial and/or demeaning labor.

Demographic Shifts

New Realities

New Horizons

The aging of travelers from traditional tourism-generating countries will cause demands for new experiences and new facilities. As a consequence, existing tourism plant may become economically obsolete.

For the next 20 years, residents of developed nations in the 4565 age category will increase substantially. These individuals will have the time, the discretionary income, and the desire to travel.

Increasingly diverse lifestyles will make market segmentation increasingly important. However, the tailoring of designer vacations will make it harder to standardize the tourism product, and thus to control costs.

Firms that can read, anticipate, and respond to the specific needs/desires of high quality niche or special interest markets in innovative ways will have great opportunities for success.


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Tourism in Perspective