Chapter 3 Planning Methods (Tourism Planning and Development)

1. Planning Methods

2. Md. Shaifullar Rabbi
BBA & MBA, Major inTourism & Hospitality Management
University of Dhaka
Coordinator & Lecturer
Dept. of Tourism & Hospitality Management
Daffodil Institute of IT
-NU
Presented By

3. Standard of Provision
 A term for the provisions mandated by state law that
appear in all policies issued in that state. This term
can also be used to refer to the provisions the NAIC
requires in all group life contracts.
 A provision can be a liability of uncertain timing or
amount. A liability, in turn, is a present obligation of
the entity arising from past events, the settlement of
which is expected to result in an outflow from the
entity of resources embodying economic benefits.
Though it is often thought to be, a provision should not
be considered to be a form of savings. Examples are;
income tax liability, product warranty, environment
restoration, etc.

4. A provision shall be recognized if the
following criteria are fulfilled:
 An entity has a present obligation as a result of a past event
 It is probable that an outflow of 1st embodying economic
benefits will be required to settle the obligation
 A reliable estimate can be made of the amount of the
obligation
 A specific current statement, the entity will accept certain
responsibilities and other parties have valid expectations that
the entity will discharge its responsibilities.
No provision, however, is recognized for costs that need to be
incurred to operate in the future. Also, an obligation always
involves another party to whom the obligation is owed (even if
this party is unknown).

5. Tourism Provision
Services in the tourism sector within the
meaning of this Act are: the provision of
services of a tourist agency, tourist guide,
tourist escort, entertainment organizer,
agency representative, tourism services in
nautical tourism, tourism services on rural
farms or family agricultural farms, tourism
services in other forms of the tourism offer
and other services provided to tourists in
connection with their travel and stay.

6. (1) Services in the tourism sector may be provided by companies,
cooperatives, sole traders and traders/craftsmen who meet the conditions
for the provision of services in the tourism sector laid down in this Act and
regulations adopted pursuant to this Act, unless otherwise provided by this
Act and the special regulations.
(2) Under the conditions laid down in this Act and regulations adopted
pursuant to this Act, services in the tourism sector may also be provided by
public institutions in charge of administering protected areas of nature for
the purposes of the areas they administer.
(3) Under the conditions laid down in this Act and regulations adopted
pursuant to this Act, certain services in the health tourism sector may be
provided by special hospitals and health resorts.
(4) Under the conditions laid down in this Act and regulations adopted
pursuant to this Act, certain services in the tourism sector may also be
provided by cultural institutions.
(5) Under the conditions laid down in this Act, certain services in the
tourism sector may be provided by associations, schools and other
educational institutions.
(6) Under the conditions laid down in this Act and regulations adopted
pursuant to this Act, certain services in the tourism sector may also be
provided by natural persons who are not registered as traders/craftsmen or
sole traders for the performance of such services.

7. Individual terms used in this Act
have the following meanings: -
 Tourist agency means a company, sole trader, trader/craftsman or their organizational
unit, providing the service of organizing trips or providing agency services connected
with the trip or stay of tourists.
 - Traveler means any person receiving a specific tourism service for whose account
and/or on whose behalf the tourism service is obtained or any person to whom the
right of use of the tourism service is transferred.
 - Package tour (lump sum trip) means a pre-determined combination of at least two
individual services consisting of transport, accommodation or other tourism and
hospitality and catering services that make a whole, and which are provided over a
period longer than 24 hours or include at least one overnight stay, and are sold at a
lump sum price.
 - Excursion means a pre-determined combination of at least two individual services
consisting of transport or other tourism and hospitality services, which last less than
24 hours and do not include an overnight stay.
 - Tourist site (locality) means the area, space or facility where there are natural,
cultural, historical, traditional and other values, and where the services of tourist
guiding may be provided only by an authorized tourist guide

8. Tourist agencies may provide the following services:
 organization of package tours, the conclusion and implementation of
contracts on package tours, the organization of excursions, the conclusion
and implementation of contracts on excursions,
 Organization of congresses,
 Mediation in the conclusion of contracts on organized trips (package
tours and excursions),
 Mediation connected with hospitality and catering services (the sale and
reservation of accommodation and other hospitality and catering
services),
 Mediation connected with transport services (the sale of tickets and
reservations for all means of transport),
 Organization of accommodation and transfer of travelers,
 Mediation in the performance of services in special forms of the tourism
and hospitality and catering offer,

9.  Organization and mediation in the performance of the services of tourist guides,
tourist guides
 escorts and the services of operating sailors' vessels (skippers),
 Representation of domestic and foreign travel agencies,
 Provision of tourism-related notices and advertising materials,
 Mediation in the conclusion of contracts on the insurance of travelers and
luggage,4
 assistance in obtaining travel documents, visas and other documents necessary
for crossing the border and staying abroad, documents for hunting, fishing,
diving, sailing and other documents necessary for organizing and carrying out
various forms of the tourism offer,
 Reservations, purchase and sale of tickets for all types of events, museums and
the like, and the sale of goods connected with the trip (various travel necessities,
souvenirs,tourism publications and the like),
 organization and provision of services in connection with card and travelers’
checks operations, and the provision of exchange services in accordance with
special regulations,

10. The Advantages of Tourism Provision
 Economic- It brings in money. This is probably the main advantage of tourism and
the reason why it has been promoted so much, especially in developing countries.
The income generated can make up a significant proportion of both private, local,
and national incomes.
 Opportunistic- It provides jobs. Hotels, bars, transport, activities, shops, and
restaurants all need staffing. Tourism can provide much-needed employment for
people.
 Infrastructural- It provides a means and an incentive for investment in
infrastructure such as roads, rail networks,and local medical and education facilities.
 Environmental- It can provide economic incentives for a place to preserve,
maintain,and regenerate the environment in both urban and rural settings.
 Cross-Cultural- It promotes international connections which can bring more
business and cultural collaborations in the long term. It also promotes cross-cultural
awareness for both locals and tourist and builds bridges of understanding between
cultures.
 Promotional- It "puts a place on the map": Tourism gives the locality a chance to
show itself off and raise its profile in the world.

11. The Disadvantages of Tourism provision
 Environmental- Tourism can often cause environmental damage with risks like erosion, pollution, the loss of
natural habitats, and forest fires. Even if tourists behave responsibly, the sheer number of them can cause
damage. Ancient buildings, monuments, and temples often struggle to cope with increased traffic and suffer
inevitable wear-and-tear.Reefs and other natural tourist attractions can suffer permanent damage.
 Cultural- The commercialization of culture can undermine the soul of a tourist destination. Local traditions that
have a rich cultural heritage are reduced to wearing costumes and putting on acts for the tourists in return for
money.
 Culture Clashes- Tourists often lack respect for local traditions and culture, refuse to follow local dress
standards,get drunk in public,or behave rudely or inappropriately towards locals.
 Service Economy- Although jobs are created by tourism, most are relatively low-level such as bar work, hotel
service, restaurant serving, and so forth. These low-wage, low-skill workers have little prospect for advancement
or promotion.
 Seasonal Fluctuations- Tourism jobs are quite commonly seasonal and insecure, with no extra benefits such as
pensions, sick pay, or healthcare. Some areas can be inundated with visitors during busy times, and then virtually
deserted for many months.
 Imbalanced Funding- Money can end up being directed to tourist areas when it could be used more effectively
elsewhere in a country.The locals who don’t live in specific tourist areas miss out and suffer relative decline.
 Foreign Poaching- Oftentimes, most of the tourism industry in a developing country is owned by big foreign
companies.They make the major profits,leaving local businesses with relatively little benefit.
 Tourism Dependence- Sometimes, tourism becomes so focal that other forms of income-generation are
neglected and an economic dependence on tourism forms. This is fine in good times, but it can leave the country
vulnerable to economic ruin in the long run and can contribute to political upheaval or natural disasters.

12. Economic Pros and Cons of Tourism
Benefits Detriments
Tourism-generated income can be
hugely beneficial both private and
public concerns.
Money can end up being spent only
on touristic areas while other places
and industries suffer.
It can provide employment
opportunities for people who can
work in tourism-related industries.
Most tourism jobs are relatively low-
level and low-skilled, and these jobs
may have drastic seasonal fluctuations.
Tourism promotes international
connections which can increase
business opportunities.
Attracted by opportunity, foreign
companies begin poaching business
away from local businesses.
The area may become dependent on
tourists' dollars and risk loss and
damage as a result.

13. Negative Environmental Impacts of Tourism
Although tourist money might be put to good use in preserving environments, tourism does put burdens on natural
resources and often promotes overconsumption and unfair allocations of resources in places where resources are
already limited. When tourism becomes unsustainable, it can permanently damage the environment. Tourism
impacts the wildlife,vegetation, air quality,the quality and supply of water,and natural phenomena.
 Pollution- When huge numbers of people visit, they invariably burden the transportation system and contribute
to pollution—locally and globally. Flying one mile in a plane produces about 53 pounds of carbon dioxide, and
tourists account for almost 60% of air travel. Some estimate that cruise ships to the Caribbean create over 70,000
tons of annual waste.
 Environmental Damage- Many tourist activities have negative ecological impacts. Snorkeling, hiking, and
fishing all affect and deplete the local scenery. There's a trail in the Himalayas that's nicknamed the "toilet paper
trail.” A tropical golf course requires the amount of water that would feed 60,000 locals... plus over 3,000 pounds
of chemical pesticides,fertilizers,and herbicides per annum.
 Ecotourism- Oftentimes, even environmentally savvy travelers have a negative impact. By traveling to witness
remote natural sites like rainforests and other dwindling and at-risk spots, tourist often damage the things they
came to see.
 Invasive Organisms- Tourism can spread non-native species. The increased human presence from many
diverse geographical regions has a detrimental affect on native plants and introduces non-native species in
these areas.
 Negative Effects of Human Interaction with Wildlife- Increased human presence can severely damage the
delicate balance of the food webs, ecological communities,and keystone species of an area.
 Depletion of Natural Resources- Tourism can put pressure on natural resources and encourages over-
consumption.This is particularly damaging in spots where resources like food and water are already scarce.

14. Environmental Pros and Cons of Tourism
Benefits Detriments
If managed properly, it can provide
economic incentives for a place to
preserve, maintain, and regenerate
the local history, infrastructure,
and environment.
Tourism often causes environmental
damage to the local infrastructure and
the flora, fauna, and historical sites in
a location.
Ecotourism might promote
environmental awareness and
activism.
Tourism depletes natural resources,
which can be dangerous in areas
where resources are scarce.
Tourism contributes to pollution.

15. Natural Resource-Based Planning
Planning, when done well, is among the most
powerful tools available to communities. A solid
plan, based on good natural resource information,
guides rational land-use decisions, and allows the
community to consider innovative tools for resource
protection with fewer chances for legal challenges
to their planning authority. The plan also sends a
clear message about what the community values
and wishes to preserve, and if well crafted, results in
few surprises to developers, local officials, or
residents.

16. The Importance and Benefits of
Natural Resource-Based Planning
Natural resource-based planning is a process
that puts the community’s natural resource base
at the forefront. By identifying natural resources
at the beginning of the planning process, your
community can determine where development
is most appropriate. This way, communities can
avoid the unintended consequences of the
typical planning process, such as open space
becoming the “leftover” pieces, water resources
being degraded, and community character
being compromised.

17. Conduct a Natural Resource Inventory
After identifying the natural resources that are important to your community,
the next step is to conduct a natural resource inventory, which forms the
foundation of the natural resource-based plan. The natural resource inventory
(NRI) is a summary in map form of a municipality’s open-space lands, water
resources, natural areas, and protected corridors. From this inventory, you can
start to identify areas of your town that are suitable for development or areas
that are best preserved. This prioritization can provide the basis for your open-
space plan and comprehensive plan, which in turn can be folded into other
site- or regional-level plans.
 Base map
 Land use/cover
 Water resources
 Unique and fragile lands
 Committed open space

18.  The Base Map will include the 2002 aerial photography, roads, and your municipal boundary. These
initial data layers will provide a means for you to delineate the boundaries of your study area. Your study
area could be your municipal boundary, a surrounding buffer, potential growth and annexation areas, or
your local watershed boundary. The base map will orient your study area to other geographical features
such as forest cover and streams, for example, so it is important to include surrounding information.
 Land Use/Cover is an important data layer that helps define the development patterns of your
community and provides areas of focus for land-use planning efforts. The land use/cover data layer in
Delaware has been created from the aerial photography mentioned above for the years 1992, 1997, and
2002, depicting what is on the ground. An example of what would be represented in the land use/cover
dataset would be residential or commercial areas, forests, wetlands, and water.
 Water Resources are vital to biodiversity and the long-term environmental health of your
community. There are a number of water resource layers available from the Delaware Geological Survey
(DGS) and the United States Geological Survey (USGS) as well as DNREC. Watershed boundaries are one of
them. The watershed is the area that drains into a particular water body. Watershed boundaries can be
created at several scales.
 Unique and Fragile Lands delineate areas in your community that provide habitat for unique plants
and animals. DNREC’s Division of Fish and Wildlife has identified these sensitive habitats where species
are listed as threatened, endangered, or of special concern. The identification of the most unique and
fragile lands in your town will help you with the prioritization of lands during the open-space planning
process.This prioritized list will help to focus the lands targeted for open-space acquisition.
 Committed Open Space is land that is protected from development by public and private ownership
or easements. The committed open-space information from DNREC gives the state, municipal, and private
lands. This is another data layer that can benefit from the input of local experts, particularly from your local
land trust. Knowing where the committed open space is in your community is key in planning for future
recreation and open-space needs.

19. Market Share Method
 The Market Share Method is yet another sales
forecasting method, wherein the company first works on
the industry forecast, then applies the market share factor
and then finally arrive at the company’s forecast. Simply,
the company’s sales forecast is deduced from the data
gathered on the industry sales and from the market share
of the company.
 Assessment of sales prospects without reference to
overall demand growth and a company's strengths and
weaknesses in the market place vis-a-vis competitors can
result in serious market share erosion without the
company being aware of it, especially if sales are on the
increase. The market share method arrives at a sales
forecast after reviewing marketing plans and assessing
the attainable market share.

20. The market share forecast can be carried out as follows:
Calculate the company's market share percentage in each province for the previous years and
observe the trend, i.e. whether it is maintained, declining or rising.
Determine a realistic market share for each province for the following season or year based on past
performance and the company's present relative strengths with regard to:
 The company's fertilizer procurement program for the season or year under review as a percentage of
the total expected demand.
 Ability to make the company's fertilizer available on time in the field with reference to the procurement
and shipment schedule.
 Size and impact of the company's promotion program.
 Competitiveness of the company's terms of sale, i.e. price, seasonal discounts, duration of credit, rate of
interest.
 Strength of its distribution structure, i.e. ability to provide easy access to fertilizer at the village level
compared to competitors.
 This assessment is preferably done by region of the country as competitors' strengths and the
company's organization may not be of uniform intensity in all areas.
 Based on this assessment the previous year's market share can be modified for the forecast year
to determine a realistic, achievable market share.

21. The limitations of the market share method are:
 The conversion of industry forecast to the
company specific sales forecast is quite
tedious and hence requires the expertise.
 It is a complex process as the entire
business environment is scrutinized before
reaching to the final forecast.
 The wrong information about the
marketing environment may result into a
wrong sales forecast.

22. Matching Resources to Market Needs
Customer needs is the buzzword of the corporate world
in today’s competitive world, a firm is better known by
the quality of products and services it provides rather
than its market share or profit-earning capacity. While
providing good and efficient products and service is a
pre-requisite for any entity, it poses several obstacles in
practical terms. Thus, to be very efficient and to
overcome the hurdles, smooth deliverance of the
activities involved during the sales cycle is highly
essential. It involves integrating information gathered
from all the distribution channels and analyzing the data
in order to understand the customer behavior. The
continuous analysis and improvements over a long
period of time would result in enhancing the customer’s
lifetime value with the firm.

23. Sales Cycle:
 The process of sales cycle begins from identifying a
potential customer to implementing measures in
retaining this potential customer. There are a large
number of activities involved within the sales cycle in
matching products/services to customer needs. The
major activities involved in sales process are as follows:
1) Lead Qualification: The primary and utmost important
activity in the sales cycle is to generate the leads and
see if they are qualified. It’s a process whereby the
information about an individual is gathered through
different sources to understand if he/she qualifies as a
potential consumer or if he/she is disqualified to be of
use to the firm in current or future scenario.

24. Identifying the most potential customers:
A step by step strategic approach would help the sales or the firm in
identifying the most potential customers. Identifying customer would include:
 Customer Profitability Analysis: Besides acquiring new customers, it is
vital for the firm to retain and increase the profitability of the existing ones.
Identifying the most profitable customers is the first step in the direction.
 Customer Lifetime Value: Customer profitability is not the sole measure
of a customer’s value to the firm. A customer may have the potential of
buying profitable products in the future; he may also serve as an excellent
reference for more profitable customers.
 Customer Value Propositions: Firms must create better customer value
propositions through better value packages, finance options and going
close to customers. They should reach a new level of service by offering
their customers the information and services they want before they even
know what they want.

25. Presentation/Marketing
Once the potential customer is identified, the next activity would be the initial sales pitch whereby
the customer is made aware of the detailed review of the product or service which is being offered
for sale.
Understanding customer’s needs and buying patterns: Another important stage of the sales cycle is to
identify the needs and buying patterns of the customers. This would help the firm in attracting new customers
and also to a certain extent retaining the existing customers. The three different factors that cater to
understanding the customer’s needs and buying patterns are as follows:
 Customer Segmentation: It segregates customers who exhibit common characteristics in different
segments. These segments can be treated as distinct entities and the future interaction with them can be
tailored accordingly. Customer segmentation can save a lot of marketing effort, which would otherwise go
waste.
 Attrition Analysis: It involves analysis of data captured during individual customer contacts at the various
touch points. Acquiring new customers is much more costly than retaining the existing ones.
 Affinity Analysis: It is often referred to as market-basket analysis. Certain products show an affinity
towards each other, and are likely to be bought together. For instance, a man in his early thirty who buys a
life insurance policy might also be interested in a certain type of annuity.

26. Interaction with Customers
Interaction with the customers so as to meet their expectations is another important activity in the sales
cycle process.This involves:
Target Marketing: Marketing to a specific customer group is a natural outcome of customer
segmentation. Once distinct customer segments are identified, business intelligence tools are used by
firms to study the products likely to be bought by that specific segment.
Campaign Analysis: It is necessary to analyze the effectiveness of a marketing or promotion campaign.
The effects of a particular campaign on sales of the promoted product could be tracked using various
tools. Often the surge in sales of the promoted product can result in decrease in sales of the other related
products.
Cross-selling: It is a major source of revenue for most of the companies. For effective cross selling the
firm can leverage the data – housed in the data warehouse – to quickly zero down on the new product that
would be required by its existing customers”.
Customer Response Analysis: It helps them in gaining a better understanding of their customer needs
so as to recognize customer preferences and buying patterns that allow them to build individual customer
solutions across all of their business channels and divisions, as well as to cross-sell and up-sell.

27. Closing the Sale
Once the presentation is completed, it gets mandatory for
the sales person to gain the knowledge of what is in the
customers mind. Thus, he/ she should ask the customer
about the next steps. If the consumer is positive on
proceeding i.e., if the consumer agrees to buy the product
or service than the sales person needs to proceed on
closing the sales. Closing the sale is a sensitive activity as
this is the time when the sales rep would get a clear picture
if his efforts had been fruitful or no. Thus, high level of
proactively, accuracy and negotiation skills should be used
as great weapons by the sales person. Negotiation is an
important element while closing the sales. It is the process
whereby the sales rep and the consumer discuss on
concessions before finalizing the deal

28. Following Up
There are a large number of instances when the sales
people terminate the sales activity as soon as the sale is
closed. However, this is not a good practice if the firm is
aiming at retaining the customers. In order to bring in
efficiency in the closure of the sales deal, it is important
for the sales person to follow up and ensure if the
products had been delivered on time or the services
are rendered effectively. Furthermore, it gets better
when the sales people keeps in touch with the customer
and get a feedback on the product and service and
understand the customer satisfaction level.

29. Strategy Formulation Process
Strategy formulation refers to the process of
choosing the most appropriate course of
action for the realization of organizational
goals and objectives and thereby achieving
the organizational vision. The process of
strategy formulation basically involves six
main steps. Though these steps do not follow
a rigid chronological order, however they are
very rational and can be easily followed in
this order.

30.  Setting Organizations’ objectives - The key component of any strategy statement is to set the long-term
objectives of the organization. It is known that strategy is generally a medium for realization of
organizational objectives. Objectives stress the state of being there whereas Strategy stresses upon the
process of reaching there. Strategy includes both the fixation of objectives as well the medium to be used to
realize those objectives.
 Evaluating the Organizational Environment - The next step is to evaluate the general economic and
industrial environment in which the organization operates. This includes a review of the organizations
competitive position. It is essential to conduct a qualitative and quantitative review of an organizations
existing product line.
 Setting Quantitative Targets - In this step, an organization must practically fix the quantitative target values
for some of the organizational objectives. The idea behind this is to compare with long term customers, so
as to evaluate the contribution that might be made by various product zones or operating departments.
 Aiming in context with the divisional plans - In this step, the contributions made by each department or
division or product category within the organization is identified and accordingly strategic planning is
done for each sub-unit.This requires a careful analysis of macroeconomic trends.
 Performance Analysis - Performance analysis includes discovering and analyzing the gap between the
planned or desired performance. A critical evaluation of the organizations past performance, present
condition and the desired future conditions must be done by the organization
 Choice of Strategy - This is the ultimate step in Strategy Formulation. The best course of action is actually
chosen after considering organizational goals, organizational strengths, potential and limitations as well as
the external opportunities.