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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 management

Destination Concept

The characters of the destination, its concept, can be opened in the knowledge of its forming factors
and of the “behaviour”, nature of destination. In the conceptual estimation of destination different
standing-points can be followed. In the whole,

“Destination is a physical location where the tourist is spending at least one night. It is containing
tourist attractions, products, relating services that are necessary to meet the stay of a tourist on the
place at least for one day. Destination has physical and administrative limits, which are
determining its management, and has an image and perception. It includes a lot of elements being
concerned, it is capable for constructing a network, a cooperation and to become a bigger
destination; 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 the
tourist destinations. These factors are determinants in the bordering, determination of the core area
destination; their development is essential by the increase of the competitiveness of the specific
destinations.

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 its
determining factors (Angelo Presenza – Lorn Sheehan – J.R. Brent Ritchie, 2005), the characters
of 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
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• 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 above

Not all locations, regions can become a tourist destination. There are such kind of basic criterions
that has to be met so that a location, region could become a tourist destination. The above
mentioned are only the most basic criterions. The determination and bordering of the destinations or
the core area destinations are supposing the development of a special system of criterions that is
made according to preferences, expectations, points of view of the tourist first of all.

Tourist Destination - Definition

The term ‘destination’ used in relation to travel and tourism refers to a place to which a tourist
travels, generally with the intention of “staying” (e.g. making use of accommodation) for some
time.
Some tourist destinations are ‘transitory’ ones; perhaps on the way to another destination. For
example, a tourist might visit a number of islands in a “group”, staying at each one for two or three
days. Many tourists, on the other hand, travel direct to their ‘final destinations’, where they propose
to 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 one
or two days at - one or more transitory destinations on the way to the final destination, where he or
she will stay for the remainder of the tour. Of course, in some cases - such as fly-drive tours - there
might be no “final destination” as such, because the tourists decide where they want to stay, and for
how long they want to stay there. Also, some fly-drive and coach tours and cruises start and
eventually finish at the same seaport or airport, etc.

The foregoing examples illustrate just how wide is the range of types of tour available to tourists
today. The range of destinations available to tourists from many countries is also very wide - and is
continually increasing.

Although some people are content to take the “same” holiday over and over again, in the same
resort (sometimes staying at the same hotel, guesthouse, camp site, etc) many other people seek
variety - “something different”, new or exciting. Indeed, in many countries the “traditional” type of
holiday - to a national seaside resort, for example, has declined considerably in popularity.

International travel has blossomed in recent years (although economic restraints and transport
problems - such as airline and air traffic controllers’ strikes - tend to reverse the trend to some
degree) and peoples’ “horizons” have widened. Low-fare airlines and tour operators offering
modestly priced package tours have, of course, been responsible to a large degree for this change in
attitudes, but they must be constantly on the lookout for new destinations (as well as new types of
tours) as tourists’ demands and expectations change.



The connection between the system of destination and tourism

The 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 the
tourism system. The tourist supplies are consisting of the factors of the receiving area that is used
by the tourist during his stay. Central element of the supply is the tourist product that is containing
the services meeting the demands of the tourist. Tourism is an integrated, open, complex system
operating dynamically each element of which (its micro- and macro environment) there is in a
mutual dependence with the others.

From the factors forming the two sub-systems of the tourism market, the supply (tourist product) is
consisting of the following elements: attractions, accessibility, services, safety, hospitality, etc.. The
elements 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, tourist
services, 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.), entertainment
facilities (shopping, museums, attractions, sports facilities, etc.), and reception services (travel
agencies, promotional offices, information services, guides, etc.).

The emphasis, however, is not only on private, commercial units: infrastructure and some
attractions and information facilities are publicly operated. The product can be only one or several
products as well, however destination can be characterised as a set of complex services and
attractions related to each other. Destination management system being responsible for the tourist
destination controlling and management is forming a connection with the poles of demand and
supply.



Operation of the destination management – as the tourist value chain

The simple value chain is representing such kind of a process that is delivering a product from the
idea through the product development phases to the final user. Michael Porter has characterised the
value chain with the connection of the activities of which each element represents the different level
of providing offers. The principle of the destination operation is similar to the one of the traditional
value chain too. However, destination management as the tourist value chain is leading the tourist
through 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 leading
character of the tourist value chain is the tourist who wants to use the tourist products (tourist
supply 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 influencing
the travel process and of the offering elements provided by the specific destination. There can be
found different characters behind the offering factors that form destination, just like e.g. the local
self-government, the owners and operators of the attractions, services, local tourist consortiums and
partnerships, civilian organisations, institutions supporting enterprises, tourist developing
institutions, organisations, etc.

The effective operation of destination is taking the conscious cooperation of the characters for
granted that is realized in the harmonized organization and operation of the products and services
mostly. It is important that the service providers should deliver the same high level of quality
because the service of different levels of the key and supplementary functions of destinations can
influence the judgment of the whole destination negatively.



Necessity of the development of tourism destination management

The destinations – as the organizational systems developing on the regional concentration and
cooperation – have to be taken into connection with the economic processes in the world, one basic
principle of which is that the durable industrial and business competitive advantages are appearing
concentrated geographically more and more.

In the competition there are not taking part separate persons of the market but the basic units of the
market competition, the companies, enterprises and regional institutions. The regional concentration
principle is playing a determinant role in the effective operation of the destination as well, which is
generating competitive advantages. The tourist target areas are worth settling to a regional
concentration being significant from the point of view of tourism, based on definitive basic
principles, so that the economic potential of the region can be increased.

Determinant factors of the tourist competitiveness of each region are the development and operation
of the management system with the effective, suitable competences and calculable financing and
organisational background. Modern tourism management and operation, that is the revaluation of
the current traditions, are needed to the development of an effective management system organised
on 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 planning
basic 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



Ritchie and Crouch’s (1993) Calgary model recognised 5 key constructs of destination
competitiveness. 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 tourism
destination competitiveness, referring to the destination attractors and deterrents. Attractors include
eleven elements: natural features, climate, cultural and social characteristics, general infrastructure,
basic services infrastructure, tourism superstructure, access and transportation facilities, attitudes
towards tourists, cost/price levels, economic and social ties and uniqueness.

Among destination deterrents are security and safety (i.e. political instability, health and medical
concerns; poor quality of sanitation; laws and regulations such as visa requirements). These factors
can act as a barrier to visiting a particular destination. The Calgary model further emphasises that a
carefully selected and well executed program of destination management can serve to improve the
tourism competitiveness of a destination.

In particular, marketing efforts have the potential to enhance the perceived appeal (e.g. image) of a
destination, whilst managerial initiatives can strengthen the competitive position of a destination.
The model also argues that destination competitiveness can be enhanced through management
organisation capabilities and strategic alliances. Additionally, the use of detailed information
systems is advanced as a basis for decision making, where internal management information
provides the ability to better manage the performance of destination's product. This aspect of the
model is closely linked to a research function, as research enables a destination to adapt to changing
market conditions.

The final construct in the model is Destination Efficiency, which draws on the integrity of
experience, relating to the ability of the destination to provide an appropriate (expected and
promised) experience. The second set of the efficiency factors are termed by the authors as
productivity variables. These include variables which are hypothesised to develop skills and/or
conditions which can increase the quantity and quality of the output of tourism experiences for a
given level of resource input, such as training staff.



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 destinations

Tourist Destination Features

Destination is the location of a position or point in physical space that something occupies on the
Earth’s surface. The location can be reached by using transportation of air, water and also main land
which is by airplanes, ferries, coaches, cars and so on. Currently, there will be many changes to the
locations once there has development in that place – there will have a growth in the economic, as
well as an increase in the standard of living

Generally there are two (2) features for the destination which are:
• Primary feature
• Secondary feature

Primary Features

Climate

Climate encompasses the statistics of temperature, humidity, atmospheric pressure, wind, rainfall,
atmospheric particles count and other meteorological elements in a given region over long periods
of time. Climate can be contrasted to weather, which is the present condition of these same elements
and 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 water
bodies and their currents. Climate can be classified according to the average and the typical ranges
of different variables, most commonly temperature and precipitation.

Different climate attract different types of tourists. Example, tourist from the Western Hemisphere
tends to choose destination with warm climate as to avoid the colder climate at their country of
origin. Meanwhile, tourist from warmer climate may want to experience the winter season of the
other countries.

Ecology
Ecology is the scientific study of the distributions, abundance, share effects, and relations of
organism and their interactions with each other in a common environment. Ecology can be defines
as the study of the interactions between life and its physical environment; the relationship between
animals and plants and how one species affect another. An eco-system is the unique network of
animal and plant species that depends on the other to sustain life – the interactions between and
among organisms at every stage of life and death can impact the system.



Ecology system is one of the main resources in nature tourism. Destination with well-preserved
ecology will be able to sustain their attractiveness and competitiveness in getting tourists attention
and stay as the top chosen destination among nature lovers.
Cultural heritage

Cultural heritage is the legacy of physical artifacts and intangible attributes of a group or society
that are inherited from past generations, maintained in the present and bestowed for the benefit of
future generations – often though, what is considered cultural heritage by one generation may be
rejected by the next generation, only to be revived by a succeeding generation. Physical or ‘tangible
cultural heritage’ includes buildings and historic places, monuments, artifacts, etc., that is
considered worthy of preservation for the future – these include objects of significant to the
archaeology, architecture, science or technology of a specific culture.

Culture also can include cultural landscapes (natural features that may have cultural attributes). The
heritage that survives from the past is often unique and irreplaceable, which places the
responsibility of preservation on the current generation. Grassroots organizations and political
groups have been successful at gaining the necessary support to preserve the heritage of many
nations for the future.

Cultural heritage is one of the main resources in cultural tourism, and also one of the most
influential tourist’s travel motivations. Learning of different cultural elements and the process of
cultural exchange between the tourists and the host communities are part and parcel in cultural
tourism, and it can only be possible if the cultural heritages are preserved.

Architecture

Architecture 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 in
connection with the design and construction of a building, or group of buildings and the space
within the site surrounding the buildings, that have their principal purposes of human occupancy or
usage.

Architecture is both the process and the product of planning, designing and constructing form, space
and ambience that reflect functional, technical, social and aesthetic considerations – it requires a
creative manipulation and coordination of material, technology, light and shadow. Architecture also
encompasses the pragmatic aspects of realizing buildings and structures, including scheduling, cost
estimating and construction administration.

Architecture can be about man-made attractions such as destination landmarks, as well as influential
and iconic structures. Examples of this type of attraction are Taj Mahal, Pyramid of Giza, Great
Wall of China, as well as Sydney Opera House.

Land forms

In the earth sciences and geology sub-fields, a landform or physical feature comprises a
geomorphologic unit, and is largely defined by its surface form and location in the landscape, as
part of the terrain, and as such, is typically an element of topography. Landform elements also
include seascape and oceanic water body interface features such as bays, peninsulas, seas and so
forth, including sub-aqueous terrain features such as submerged mountain ranges, volcanoes, and
the great ocean basins.



Landforms 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 model
using some automated techniques where the data has been gathered by modern satellites and
stereoscopic aerial surveillance cameras.

Landforms also can be part of attractions in nature tourism - iconic landforms such as Grand
Canyon, Niagara Falls and Mount Fuji.

Secondary Features

Accommodation

Accommodation in tourist destination is an establishment that provides paid lodging on a short-term
basis – most common are hotels, motels, resorts, etc. The provision of the accommodation consisted
of rooms with modern facilities, including en-suite bathrooms and air-conditioning or climate
control. Additional common features found in hotel rooms are telephone, television, and Internet
connectivity – snack food and drinks may be supplied in a mini-bar, and facilities for making hot
drinks.

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 establishment
offer meals as part of a room and board arrangement – in UK, a hotel is required by law to serve
food and drinks to all guests within certain stated hours, to avoid this requirement it is not
uncommon 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 in
themselves, by dint of unusual features of the lodging or its immediate environment. The categories
are 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



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 rooms

Catering

Catering is the business of providing foodservice at a remote site or a site such as a hotel, public
house (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.

Transportations

Transport or transportation is the movement of people, cattle, animals and goods from one
location to another. Modes of transport include air, rail, road, water, cable, pipeline, and space. The
field can be divided into infrastructure, vehicles, and operations.



Transport is important since it enables trade between peoples, which in turn establishes
civilizations.
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 fuel
stations), and seaports. Terminals may be used both for interchange of passengers and cargo and for
maintenance.

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 the
procedures 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 provide
scheduled services, or private. Freight transport has become focused on containerization, although
bulk transport is used for large volumes of durable items.

Transport plays an important part in economic growth and globalization, but most types cause air
pollution and use large amounts of land. While it is heavily subsidized by governments, good
planning of transport is essential to make traffic flow, and restrain urban sprawl.

Transport in London

London's transport forms the hub of the road, rail and air networks in the United Kingdom. It has
its own dense and extensive internal private and public transport networks, as well as providing a
focal point for the national road and railway networks.

London also has a number of international airports including one of the world's busiest, Heathrow(it
have also first London 'pod' system called ULTra), and a seaport. London's internal transport system
is one of the Mayor of London's four policy areas, administered by its executive agency Transport
for 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 Greater
London; other rail services are franchised to train operating companies by the national Department
for Transport (DfT).

TfL also controls most major roads in the area, but not minor roads The body is organised in three
main directorates and corporate services, each with responsibility for different aspects and modes of
transport. The three main directorates are:

1. London Underground
Responsible for running London's 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:



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 London's 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 London's 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 London's 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 Destinations

Self-contained resorts

The term "resort" is now also used for a self-contained commercial establishment which attempts to
provide for most of a vacationer's 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 that
provides 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 resort
A destination resort is a resort that contains, in and of itself, the necessary guest attraction
capabilities—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 historic
site, a theme park, a gaming facility or other tourist attraction may compete with other businesses at
a 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 to
leave the facility throughout their stay.



Commonly these facilities are of higher quality than would be expected if one were to stay at a hotel
or eat in a town's restaurants. Some examples are Atlantis in the Bahamas, Costa do Sauípe in the
Northeastern Brazil, Laguna Phuket in Thailand and Sun City near Johannesburg in South Africa.

All-inclusive resort
An all-inclusive resort charges a fixed price that includes most or all items. At a minimum, most
inclusive resorts include lodging, unlimited food, drink, sports activities, and entertainment for the
fixed 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 activities
included in the price as well.

They are often located in warmer regions - The all-inclusive model originated in the Club Med
resorts which were founded by the Belgian Gérard Blitz. Some all-inclusive resorts are designed for
specific vacation interests. For example, certain resorts cater to adults, while even more specialized
properties accept couples only.

Other all-inclusive resorts are geared toward families, with facilities like craft centers, game rooms
and water parks to keep children of all ages entertained. All inclusive resorts are also very popular
locations for destination weddings.

Conference and resort hotels
Conference and resort hotels are hotels which often contain full-sized luxury facilities with full
service accommodations and amenities. These hotels may attract both business conferences and
vacationing tourists and offer more than a convenient place to stay.

These hotels may be referred to as major conference center hotels, flagship hotels, destination
hotels, and destination resorts. The market for conference and resort hotels is a subject for market
analysis. These hotels as destinations may be characterized by distinctive architecture, upscale
lodgings, ballrooms, large conference facilities, restaurants, and recreation activities such as golf or
skiing. 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



Towns

A town is a human settlement larger than a village but smaller than a city. The size definition for
what 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. Inland
resorts include ski resorts, mountain resorts and spa towns.

Towns such as Sochi in Russia, Sharm el Sheikh in Egypt, Barizo in Spain, Cortina d'Ampezzo in
Italy, 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 resorts
Seaside resorts are located on a coast. Many seaside towns have turned to other entertainment
industries, and some of them have a good deal of nightlife. The cinemas and theatres often remain
to become host to a number of pubs, bars, restaurants and nightclubs. Most of their entertainment
facilities 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 in
foreign travel and as a result, many seaside towns offer foreign language schools, the students of
which often return to vacation and sometimes to settle.

Ski resorts
In Europe, ski resorts are towns and villages in ski areas, with support services for skiing such as
hotels and chalets, equipment rental, ski schools and ski lifts to access the slopes.

Village

A village is a clustered human settlement or community, larger than a hamlet with the population
ranging from a few hundred to a few thousand (sometimes tens of thousands). Though often located
in rural areas, the term urban village is also applied to certain urban neighborhoods, such as the
West Village in Manhattan, New York City and the Saifi Village in Beirut, Lebanon, as well as
Hampstead 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 the
landscape, as a dispersed settlement.

Tourism village
Is 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 by
some 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 to
provide a village becoming a tourism object are also important. These facilities make visitors who
come to a tourism village enjoy their vacation. So, all tourism villages are completed by many
supporting facilities, such as transportation, telecommunication, medical, and accommodation
facilities. The accommodations in tourism village are special.



Visitors can spend the nights using homes stay provided in the village - It gives visitors a
memorable moment because they can feel a purely village atmosphere. Until now, there are seven
tourism villages located in Central Java province, Indonesia. - There are Candirejo, Dieng, Duwet,
Karangbanjar, Karimunjawa, Ketenger, and Selo village.

Capital Cities

A capital city (or just, capital) is the area of a country, province, region, or state considered to
enjoy primary status; although there are exceptions, a capital is typically a city that physically
encompasses the offices and meeting places of the seat of government and is usually fixed by law or
by the constitution.

An alternative term is political capital, but this phrase has a second meaning based on an alternate
sense of the word capital. The capital is often, but not necessarily, the largest city of its constituent
area, 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 activities

Country

A country is a region legally identified as a distinct entity in political geography. A country may be
an independent sovereign state or one that is occupied by another state, as a non-sovereign or
formerly sovereign political division, or a geographic region associated with a previously
independent people with distinct political characteristics.

Regardless of the physical geography, in the modern internationally accepted legal definition as
defined by the League of Nations in 1937 and reaffirmed by the United Nations in 1945, a resident
of a country is subject to the independent exercise of legal jurisdiction, while "Any person visiting a
country, other than that in which he usually resides, for a period of at least 24 hours" is defined as a
'foreign tourist‘.

There are 204 total states, with 193 states participating in the United Nations and 13 states whose
sovereignty status are disputed - The newest state is South Sudan.

International tourist arrivals by country of destination 2010

Out of a global total of 940 million tourists, the top ten international tourism destinations in 2010
were (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



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 million

Regions and Areas

A tourism region is a geographical region that has been designated by a governmental organization
or tourism bureau as having common cultural or environmental characteristics. These regions are
often named after historical or current administrative and geographical regions. Others have names
created specifically for tourism purposes. - The names often evoke certain positive qualities of the
area and suggest a coherent tourism experience to visitors.

Countries, states, provinces, and other administrative regions are often carved up into tourism
regions. In addition to drawing the attention of potential tourists, these tourism regions often
provide tourists who are otherwise unfamiliar with an area with a manageable number of attractive
options.

Some of the more famous tourism regions based on historical or current administrative regions
include Tuscany in Italy and Yucatán in Mexico. Famous examples of regions created by a
government or tourism bureau include the United Kingdom's Lake District and California's Wine
Country.

Specialty Regions
Wine Regions - Building on the success of wine tourism in regions such as California's Wine
Country, the number of wine regions catering to tourists has grown in recent decades. Although
wine regions have existed since the 1850s in France, wine tourism became increasingly popular in
the 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 dozen
countries have their own wine regions, while many of these countries have dozens of regions within
their borders.

Many wine regions do not correspond to designated tourism regions. For example, the famous
Bordeaux region in France is part of the political and tourism region of Aquitaine while the Mosel
wine region of Germany is located in the Rhineland-Palatinate state and extends far to the northeast
of the Moselle and Saar tourism region.

Traditional Centers

A national center for traditional arts that usually established by the tourism governing bodies of a
particular country. The goal of the center is overall planning, supporting the related research,
promoting, preserving, and teaching the traditional arts, and also redefining, renovating, and
developing 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.



• 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 Center

An attraction that established with variety of activities (especially outdoor pursuit activities) offer at
one 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 Built

These are destinations developed specifically for tourists which provide all the facilities needed in
one place. Theme parks are not generally acceptable, although this category may include theme
park 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 - This
purpose-built resort town has the advantage of being easily accessible and close to the lively city of
Valencia. Located in an enclave, around 12 kilometres to the north of the city, the sea is its main
attraction, with a seafront promenade, fine sandy beaches and a central marina – ideal for enjoying a
relaxing stroll.

Evolving Concept of Destinations

Haywood (1990) and Pigram (1992) identify a number of implementation gaps in the adoption of
strategic planning at tourist destinations:

Destinations are comprised of a constantly shifting mosaic of stakeholders and value systems. Each
of these groups has a different view of the role and future of tourism at their destination and
therefore the adoption of strategies becomes a political process of conflict resolution and consensus
In addition, the tourist sector at destinations is characterised by fragmentation and a dominance of
small businesses, who often trade seasonally. This has led to a lack of management expertise at
destinations, a divergence of aims between the commercial and public sectors and a shortterm
planning horizon which in part is driven by public-sector, twelve-monthly budgeting cycles, but
also 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-wide
planning exercise. In the early stages of the life cycle for example, success often obscures the long
term view, whilst in the later stages, particularly when a destination is in decline, opposition to long
term planning exercises may be rationalised on the basis of cost.

Finally, the performance indicators adopted in such exercises can be controversial as tourist volume
is the traditional, and politically acceptable, measure of success in many destinations. In other
words, the tourism industry is often reluctant to make the tradeoff between present and future needs
when success is judged by short-term profitability and volume growth.



Destination Visioning

Destination visioning is a community-based strategic planning approach, effectively placing the
future 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 the
decisions 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’ of
visioning 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.



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 analysis

Resort development model

Tourist 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.



Tourism Area Life Cycle (TALC) model is that a destination begins as a relatively unknown and
visitors 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 its
attractions and the amenities are increased and improved (Development). Tourist arrivals then begin
to grow rapidly toward some theoretical carrying capacity (Stagnation), which involves social and
environmental limits.

The rise from Exploration to Stagnation often happens very rapidly, as implied by the exponential
nature of the growth curve. The possible trajectories indicated by dotted lines A-E are examples of a
subset of possible outcomes beyond Stagnation. Examples of things that could cause a destination
to follow trajectories A and B toward Rejuvenation are technological developments or infrastructure
improvements leading to increased carrying capacity. Examples of things that could cause a
destination 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 no
longer exist. The trajectory of most interest to this is trajectory E, which is the likely path of a
destination following a disaster or crisis.

It is also important to point out that the Law of Diminishing Returns could cause a destination to
follow trajectories similar to those of C or D, and that the concepts and practices of destination
recovery, as applied to destinations recovering from a disaster, could easily be applied to a
destination in Decline as a result of the Law of Diminishing Returns.



Product Life-cycle

The understanding of a product’s life cycle, can help a company to understand and realize when it is
time to introduce and withdraw a product from a market, its position in the market compared to
competitors, and the product’s success or failure. The product’s life cycle - period usually consists
of five major steps or phases. These phases can be split up into smaller ones depending on the
product and must be considered when a new product is to be introduced into a market since they
dictate 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.



Sales and profit

Sales

Profit
s

0 Time

Maturit Declin
Product Introduction Growth
y e
Development
Losses/investmen
t

Spatial process of tourist development

Bortoun defines the procedures for the tourism spatial development as follows:

First phase: The starting point of tourism development is the existence of a residential region
created by the tourist’s production potential, and a potentially remote destination where the tourism
has not yet improved.

This process may begin by the Allocentrics (Tourists seeking diversity), the discoverers and or
those 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 local
transportation. As a result of their narrations and announcements, they identify the destination and
also they gain fame and by means of a few of tourists who are able to travel they visit; the host
society also responds to them by providing some small services.



The second phase: If the living standard of people in the region of tourist production (tourism
market) is promoted and the welfare is increased among them, the second phase of tourism is
started.

During this phase, firstly those who enter feel that some services should be provided in the
destination for which different and new potential tourists search - such as the rich tourists or those
who are similar to Allocentrics. Therefore, a new product is rendered and the lifecycle of the
product begins. The first time, The merchants who are exposed to risk enter into the market. They
start working by provision of travel services directly to the destination and reinforcing the existing
facilities at the destination, and then, they proceed for selling them to the potential tourists
somehow different from the tourists of the first phase. There is limited response on the part of the
host community. They directly make use of tourism emotional motivations and they welcome the
tourists.

The third phase: The tourism industry starts making novel changes in the destination by developing
the 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 services
and facilities. The speed and scope of development are increasing. The accumulation of tourists
who are in search of completely well developed destinations, now are able to travel to such
destinations. The speed of tourism growth leads toward immigrating to a tourism destination since
the local workforce cannot provide services requested by the tourists. Landlords and the local
traders welcome tourism development, however, the majority of the local people are annoyed by
such development.



The fourth phase: The destination is well identified among the population of the Midcentric tourism
generating 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 the
second 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 first
destination, while other ones expand their services in the second destination. Coincided with
increasing economic potential of people, in the market of tourist, the tourism improves step by step
in more distant regions.



Tourism Spatial Framework

The Tourism Spatial Framework describes how tourism currently works in space and how it should
work in future. It aims to provide a context for intervention and a rationale for the choice of
specified actions, development areas and anchor projects. It also demonstrates the importance of
using routes to create linkage between areas in order to generate critical mass and maximise use of
resources.

Recognition of the requirement for alignment of strategies partnerships between stakeholders and
organisation and linkages between products is key to success. There is also a need for realism
regarding the developmental role of tourism. The physical product provides a strong basis for
economic growth and social development yet tourism cannot solve all the socioeconomic problems
of every community. Expectations can become unrealistic if the platform from which to begin is set
too high.

Under such circumstances the first step may never happen if stakeholders are overwhelmed by too
many priorities, options and opportunities. Disenchantment and withdrawal of support will be the
result. Perhaps the most important objective of this study is to get all stakeholders talking the same
language and working towards common goals.



In line with the above objectives, focus has been placed on issues and solutions that will direct
change. An important lesson that has been learned from our discussions is that “turnaround” is
possible. 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 tourists
visit the city. For example, some places are the ‘entrance gates’ to the city or parts of the city, others
are 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 found
there, the types of tourist experiences currently offered, the potential to develop new products and
the characteristics of the population of the area.

The Tourism Spatial Framework provides recommendations regarding the actions that can be
taken 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.



The 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 prior
to focus on delivery and implementation. - The Tourism Spatial Framework represents an important
starting point.

Product Portfolio

Introduction

The business portfolio is the collection of businesses and products that make up the company. The
best business portfolio is one that fits the company's strengths and helps exploit the most attractive
opportunities.

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 Planning

The two best-known portfolio planning methods are from the Boston Consulting Group (the subject
of this revision note) and by General Electric/Shell. In each method, the first step is to identify the
various Strategic Business Units ("SBU's") in a company portfolio.

An SBU is a unit of the company that has a separate mission and objectives and that can be planned
independently from the other businesses. An SBU can be a company division, a product line or even
individual brands - it all depends on how the company is organized.

Growth-share matrix

The BCG matrix (aka B-Box, B.C.G. analysis, BCG-matrix, Boston Box, Boston Matrix, Boston
Consulting Group analysis, portfolio diagram) is a chart that had been created by Bruce Henderson
for the Boston Consulting Group in 1968 to help corporations with analyzing their business units or
product lines.

This helps the company allocate resources and is used as an analytical tool in brand marketing,
product management, strategic management, and portfolio analysis.



Using the BCG Box (an example is illustrated above) a company classifies all its SBU's according
to 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 attractiveness

By 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 strategy

Once a company has classified its SBU's, it must decide what to do with them. In the diagram
above, the company has one large cash cow (the size of the circle is proportional to the SBU's
sales), a large dog and two, smaller stars and question marks.

Conventional strategic thinking suggests there are four possible strategies for each SBU:



• 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 Strategies

Strategy – Mission

A strategic plan starts with a clearly defined business mission. Mintzberg defines a mission as
follows:

“A mission describes the organisation’s basic function in society, in terms of the products and
services 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 Purpose
Why does the business exist? Is it to create wealth for shareholders? Does it exist to satisfy the
needs of all stakeholders (including employees, and society at large?)

A Strategy and Strategic Scope
A 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 competing
A 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, product
etc. The decisions management make about strategic scope define the nature of the business.

Policies and Standards of Behaviour



A mission needs to be translated into everyday actions. For example, if the business mission
includes delivering “outstanding customer service”, then policies and standards should be created
and monitored that test delivery.
These might include monitoring the speed with which telephone calls are answered in the sales call
centre, the number of complaints received from customers, or the extent of positive customer
feedback via questionnaires.

Values and Culture
The values of a business are the basic, often un-stated, beliefs of the people who work in the
business. 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 purpose

Strategy: Values and Vision

Values form the foundation of a business’ management style. Values provide the justification of
behaviour 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 long
term, 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 measured

Strategy: 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) and
through the layers underneath (functional and unit). Objectives are often set in financial terms. That
means that the objective is expressed in terms of a financial outcome that is to be achieved. Those
could include:
• Desired sales or profit levels
• Rates of growth


• Amount of cash generated
• Value of the business or dividends paid to shareholders
However, it is incorrect to say that objectives have to be expressed in money terms, or that they
have to be able to be measured. Some objectives are hard to measure, but are often important. For
example, an objective to be:
• An innovative player in the market
• A leading in the quality of customer service

A popular way to look at objectives is to see them as part of a hierarchy of forward-looking terms
which help set and shape the strategy of a business. That hierarchy can be summarised as
follows:

SMART objectives

The 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



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 century

Tourist destination activities

Tourist activities can be segregated into different aspects of activities. The different aspects of
segregations are in terms of tourist activities that are involve in:
• Social activities
• Demographic development
• Economic activities
• Culture
All the tourism activities can help to explore the specialty and uniqueness of the destinations, but
also may slow down the development of those particular destinations.

Social Activities

The concept was primarily developed in the non-positivist theory of Max Weber to observe how
human behaviors relate to cause and effect in the social realm – for Weber, sociology is the study of
society and behavior and must therefore look at the heart of interactions.

The theory of social action, more than structural functionalist positions, accepts and assumes that
human vary their action according to social contexts and how it will affect other people; when a
potential reaction is not desirable, the action is modified accordingly – action can mean either a
basic action or an advanced social action, which not only has a meaning but is directed at other
actors and causes action.

Social change involves changes in the nature, attitudes, and habits of the society – social changes
are 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 parenthood

Demographics Development



In 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 developed
economies, the proportion of elderly people in the population is increasing.
Geographic distribution, two contrasting factors are decreasing population of inner cities in
developed countries and the flight from the country side in developing countries. Sex is referring to
the proportion of men and women. Class is referring to the distribution of wealth or life chances
between 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 personnel

Economic Activities

The stage of economy affects all organization, both commercial and non-commercial – the rate of
growth 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 product
of the population has wide effects.

The forecasts state of economy will influence the planning process for organization which operates
within it. In times of boom and increased demand and consumption, the overall planning problem
will be to identify the demand. Conversely, in times of recession, the emphasis will be on cost
effectiveness, continuing profitability, survival and competition. The economic environment
changes continually – predicted changes or developments in the economic environment can be
vitally important for planning decisions.

Culture

Culture is the sum total beliefs, attitudes of mind and customs to which people are exposed in their
social conditioning – for example, the use of English language is one of the features of culture in
UK.

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 language

Benefits of cultural activities in developing destination:



• 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 exchange

Tourists’ attractions and activities

Tourist 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 travelers
on 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 tourist
attractiveness of places and concluded that most studies can be classified into one or more of three
general perspectives: (1) the ideographic listing, (2) the organization and (3) the tourist cognition of
attractions – 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 created

Natural Attractions

Major categories of natural attractions include the following:

Climate
A warm, sunny, dry climate is typically considered desirable by most tourists, especially those from
cold winter areas, and particularly when associated with other attractions such as beaches, marines
and mountain areas. But some types of popular tourist activities such a snow skiing require cold
weather and snow but preferably still clear skies.

Climatic seasonality must be considered in evaluating climate as an attraction. In evaluating
seasonality, consideration must be given to resource opportunities and markets available that
lengthen the tourist season create a double season or extend s high level of visitor use throughout
the year.

Scenic beauty
The overall natural scenic beauty of an area may be a major motivation to visit there – especially if
conservation measure has been applied. Associated are activities such as pleasure driving with stops
at scenic view points, hiking, picnicking, camping and wildlife viewing. Remote scenic areas may
offer opportunities for adventure-oriented tourists engaging in activities such as river rafting, rock
climbing and long-distances trekking.

Beaches and marine areas
Major 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 have
conservation measures applied in the form of parks, reserves and development controls.



Flora and fauna
Unusual and interesting flora and fauna can be very important attractions, especially when
combined with scenic landscapes. Zoos, aquariums and botanic gardens are specialized flora and
fauna features and, if well developed and maintained, can be major international attractions; such as
San Diego Zoo, botanic gardens at Kew near London and Bogor in Java, Indonesia.

Special environmental features
Special environmental features such as high mountains, unusual geological formations, caves,
geysers, hot springs, and mild forms of volcanic activity are important attractions for both general
sight-seeing and special interest tourists.

Parks and conservation areas
Important natural areas and their flora and fauna should be designated for some type of
conservation status – national and regional parks, nature reserves, and wildlife refuges. The
International Union for Conservation of Nature and Natural Resources (IUCN) has specified
categories and criteria for establishment of parks and conservation areas.

Health tourism
Related to the natural environment - i.e. spas based on hot mineral waters. Another type that
developed more recently is the ‘diet’ resorts, a place where people go to lose weight and regain
physical vitality. Some centers for treatment of drug addiction and alcoholism function in certain
ways as resorts and may be considered as a type of health tourism.

Cultural Attractions

Major types of cultural attractions, based on man’s activities, include those described in the
following:

Archaeological, historical and cultural sites
Including cultural and national monuments, historic buildings, districts and towns, important
religious buildings such as churches, synagogues, temples, mosques and monasteries, and places of
historic events such as battlefields.

The United Nations Educational, Scientific and Cultural Organization (UNESCO) has begun the
process of designating, based on certain criteria, the most important archaeological and historic sites
throughout the world as world cultural heritage sites. Important for viewing by tourists and,
reflecting tourism trends in recent years, participation by tourist laymen in archaeological
excavations, on a supervised basis, has become popular.

Distinctive cultural patterns
Cultural 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 patterns
include customs, dress, ceremonies, life-styles, and religious beliefs and practices and are often
associated with rural and village life but may be prevalent in some urban places.

Arts and handicrafts
The performing arts forms, including dance, music and drama, and the fine arts of painting and
sculpting can be important attractions – especially if effectively presented. Performing arts centers
and 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 an
area can be both an interesting attraction for tourists and a source of income for local artisans.



Interesting economic activities
An often successful type of specialized cultural attraction is observation, description and sometimes
demonstration of interesting economic activities such as operation of tea and rubber plantations and
processing plants, use of working elephants in a tropical forest, traditional fishing and agricultural
techniques in many areas. Traditional market places are also widely popular with tourists.

Interesting urban areas
Urban 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 enjoy
general urban sightseeing and absorbing the ambience of a city’s character, as well as visiting
specific attraction features such as museums and public buildings. In some cities, theater
performances, including plays, operas, concerts and dance presentations are major attractions for
tourists as well as residents.

Museums and other cultural facilities
Different types of museums on such themes as archaeology, history, ethnology, natural history, arts
and crafts, science and technology industry, and many specialized subjects. Other cultural facilities
such as cultural centers, important commercial art galleries and antique shops.

Cultural festivals
Various types of cultural festivals related to the local traditions and arts can be major attractions.

Friendliness of residents
Although not quantifiable, a very real attraction for many tourists can be the friendly, hospitable
character of local residents and, more generally, their tolerance and acceptance of tourists visiting
their environment.

Special Types of Attractions

Theme parks, amusement parks and circuses
Theme parks are oriented to particular themes, such as history, adventure, unusual geographic
places, 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 controlled
environment

Shopping
Shopping is a significant activity and type of expenditure of many tourists and must be considered
in tourism planning. In urban tourism, large department stores that are internationally well-known
attract many tourists visiting those cities. Duty-free (which actually may refer to low duty but not
free of duty) shopping for consumer goods has been developed as a major attraction in cities such as
Hong Kong and Singapore.

Meetings, conferences and conventions
Many countries, regions, cities, resorts and individuals hotels have developed various types of
meeting facilities and some conference facilities, such as the Trade and Convention Center in
Vancouver, Canada.

Conference tourism is highly competitive and should be carefully evaluated for an area to determine
its overall market and economic feasibility and the most appropriate type of facilities to be
developed. At any scale of development, conference centers must meet certain standards and often
need to include specialized facilities and services such as for simultaneous language translation and
exhibit space.



Special events
Special events can be major tourist attractions for short times period – these are organized for the
purpose of attracting tourists and also for reasons such as national or regional prestige and gaining
new facility complexes for permanent use.

Gambling casinos
Have been developed in certain places as major attraction – usually in areas that have limited
natural and cultural attraction features. Often developed to supplement the basic attraction of an
area such as has been done in Monaco.

Entertainment
Relative to the traditional and contemporary performing arts and its association with gambling
casinos and their resort environment – nightclubs, discos, etc. Some places providing
entertainments based on local culture – folk dancing and singing, or contemporary music and dance.

Recreation and sport
Can be important primary or secondary attractions for tourists – polo grounds, tennis centers, horse
and other types of tracks, etc.

Tourist Facilities and Services as Attractions

Hotels and resorts
Well-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.

Transportation
Interesting, historic and unusual forms of transportation can also be made into attractions such as
the Nile River Cruise in Egypt.

Cuisine
The food of an area, in addition to being an important service for tourists, can be significant
secondary tourist attraction, especially if the area offers a special type of cuisine that is well
prepared and presented.

Other Attractions Considerations

In addition to tourist attraction features, there are several other considerations that must be made in
evaluating the attractiveness of the tourism area.

Ethnic, religious and nostalgic associations
Ethnic associations often relate to the ancestral origin of the tourists – for example, overseas ethnic
Chinese visiting their ancestral villages in China. Religious pilgrimages comprise a major type of
travel in many places of the world, and very important sacred places generate much long-distance
travel.

Examples of historic associations as attractions are the visits made by Japanese and Americans to
places in the Pacific Islands, where they fought during World War II, and of retired colonial
administrators visiting former colonies where they previously stationed and may have lived for
many years – sometimes referred to as nostalgic tourism.


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