Basic Concepts in Tourism Planning and Development PDF

Basic Concepts in Tourism Policy Planning and Development What is a Policy? How is a policy different from a law or a regulation? Policy vs. Law vs. Regulation Definition Purpose Policy a set of rules, regulations, created to ensure...

Basic Concepts in Tourism Policy Planning and Development What is a Policy? How is a policy different from a law or a regulation? Policy vs. Law vs. Regulation Definition Purpose Policy a set of rules, regulations, created to ensure that an guidelines, directives, etc. organization operates in a way that provide framework for a that aligns with its values and desired behavior/action goals Law a statute created by a made to maintain order, establish legislature standards, protect liberties, and resolve disputes Regulation a legal directive that created by executive branch explains how to implement agencies to impose requirements laws on individuals and businesses Tourism Policy “a set of rules, regulations, guidelines, directives, and development or promotion objectives and strategies that provide framework within which the collective, as well as individual decisions directly affecting long-term tourism development and the daily activities within a destination are taken”(Goeldner & Ritchie, 2003, p. 413 in Scott, 2011) Tourism Policy is one of the primary bases of tourism planning. Policy for tourism: Why?  Adverse public perceptions Tourism is not a mere leisure activity but an economic activity Explore the full range of the tourism market Multi-faceted; Innumerable potential visitors with different needs and expectations Tourism Impacts Optimize positive impacts Minimize negative impacts Quality and Productivity Improvement (QPI) in tourism What is Planning? Planning a dynamic process to define and determine the goals, methodologically assessing alternative courses of action, selecting the best alternative to realize those goals, preparing how the chosen alternative will be executed, monitored, and evaluated Tourism Planning a deliberate process for identifying the activities that enable a tourism enterprise or destination to realize its goals Why plan for tourism? Tourism Planning A collaborative process Master planning team comprised of experts in land-use planning, HRD, disaster risk reduction, architecture, product development, marketing, finance/economics, community development, and environmental management among others Tourism Planning Examples Tourism Economist collects and analyzes data concerning population counts, demographic characteristics, transportation and traffic movement, employment, the economic base, and the impact of the tourism sector Sociologist evaluates the characteristics of the local culture, customs, hierarchy, and structure of social organizations, social values, religion, attitudes, political stability of the country, and ethnicity in different regions Regional/Urban Planner concentrates on the physical and spatial characteristics of the country, including topography, climate, location pattern of urban centers, their hierarchy, linkages, potential site and event attractions, urban and rural activity possibilities, agriculture, forestry, wildlife, and conservation requirements Tourism Planning A consultative process Various stakeholders LCE, TC, TO, LPDC, POs, NGOs, Advocacy Groups, Academe, oversight and regulatory agencies, residents, businesses, etc. Tourism Planning The process of: Gathering and evaluating information to identify and prioritize current tourism development issues (situation analysis); Imagining a desired future state of tourism in the destination (vision, goals, and objectives setting); Choosing from a number of alternatives for achieving them (strategy formulation); and Preparing execution, monitoring, and evaluation mechanisms (action planning). What’s the difference between a Vision, a Goal, and an Objective?  Vision a desired future state of the destination Goals broad-based targets for tourism; qualitatively stated Objectives SMART targets; quantitatively stated Strategies broad statement of methods by which objectives will be achieved Action or implementation plan details of how the strategies will be implemented Multi-Sector National Plan Sectoral National Plan Tourism Development the process of establishing and maintaining a tourism industry in a particular location/economy the process of developing strategies and plans to increase/ develop/ encourage tourism in a particular location/economy Tourism Product Development the process of developing strategies and plans to increase/ develop/ encourage tourism in a particular destination the process of putting together the various components to convert a raw natural, cultural, or historical resource into a tourism destination Components (A’s of Tourism) Post Rehab Boracay Demolished commercial and residential establishments that encroached on the 25+5-meter beach easement Demolished structures inside the 12-meter road easement Cleared two of the nine wetlands occupied by illegal settlers Improved water quality in both White Beach and Bulabog Beach Flooding addressed by the new drainage system (with several pumping stations) Reduced travel time due to improvements in arterial road (Boracay Circumferential Road) Source: https://www.colliers.com/en-ph/news/paradise-regained-closer-look-boracay-resurgence Post Rehab Boracay 1.75 million visitors in 2022 and 2 million plus visitors in 2023 Stricter restrictions on food and alcohol consumption imposed along the waterfront (White Beach) The buzz of engines from watersports and pump boats is gone. Electric tricycles replaced their heavy fume-producing predecessors. Businesses started implementing sustainable and CSR initiatives. Boracay gradually establishes its footing towards responsible and sustainable tourism. Source: https://www.colliers.com/en-ph/news/paradise-regained-closer-look-boracay-resurgence Can you identify a tourist destination you’ve visited and whether its development seemed planned or unplanned? Tourism Planning Dimensions Tourism Planning Dimensions Levels the geographic setting Time frame amount of time for implementation Scope functional areas Spatial units space covered 1. Levels International ASEAN Strategic Plan 2016-2025; ASEAN Tourism Strategic Plan 2016-2025 National PDP 2023-2028; NTDP 2023-2028 Regional Regional DP; Regional TDP Provincial Provincial CDP; Provincial TDP Municipal/City M/C CDP; M/C TDP Site level Tourist Site Plan 2. Time Frame Short-term (less than 2 years) Medium-term (2 to less than 6 years) Long-term (6 years or more) 3. Scope Broad (Masterplan) vs. Specific (Tourist Site Plan) Master Plan Hazard analysis Impact analysis Tourism resource assessment Product development plan DRRM plan Financial and investment promotion plan Institutional capacity development plan (including HRD) Marketing plan Gender and development plan Infrastructure development plan (including facilities and transportation) 4. Spatial Units Tourist site Tourist development area (TDA) Tourism cluster Tourism circuit Tourism corridor What’s the difference between a tourist site and a tourist attraction? Tourism Site Tourist Attraction a specific place that tourists “a physical or cultural feature of come to see and experience a particular place that individual an area that contains one or travellers or tourists perceive as more tourist attractions capable of meeting one or more of their specific leisure-related often based on the historical, needs, or positive or favourable cultural, or natural features of attributes of an area for a given the place activity or a set of activities as desired by a given customer or market, including climate, scenery, activities, and culture” (Tourism Western Australia, 2006) a particular element in that site that actively draws visitors Attraction = “pull factor” Categories of Attraction (as cited in Cruz, 2014) Geophysical-landscape-aesthetic Mountains; gorges; big rocks; rock formations; caves; rivers; water bodies; scenic views; unusual cloud formations; unusual meteorological conditions; thermal waters; volcanic activity; and unusual celestial events Ecological-biological Organisms (their parts, behaviors, aggregations, or associations in communities with other organisms) Ecological events or processes (decomposition, reproduction, predation, migration, and fossil remains) Cultural-historical Churches, historical houses, archaeological sites, ancient monuments, amusement parks, theme parks, open-air museums, marinas, exhibition centers, craft centers, casinos, health complexes, picnic sites, and retail complexes Recreational Theme parks, botanical gardens, sports fields, motion-based attractions, zoos, museums, theaters, shopping malls, and events Tourism Development Tourism Development Area Cluster an area designated for composed of two or more TDAs possessing an important site or groups of tourist sites any town or city that has one or Examples: more tourist sites Cluster with TDAs in several provinces: Central Visayas Tourism Cluster: (1) Northern Examples: Cebu-Bantayan-Malapascua; (2) Single town/city with several Metro Cebu-Mactan-Olango important tourist sites: Baguio Island; (3) Southern Cebu; (4) City Negros Oriental Dumaguete- Siquijor; and (5) Tagbilaran- TDA with more than one Panglao Island town/city: Vigan-Laoag Cluster composed of TDAs in a single province: Palawan Tourism Circuit Tourism Corridor a route involving at least three a route defined by a theme (e.g., major tourist destinations which Silk Road Heritage Corridor, a are located in different towns, civilization) spanning several villages, or cities countries or even continents destinations with common characteristics or themes Examples: Silk Road: several countries in Examples: Asia, Europe, and Africa Gastronomic tourism circuit: Inca Corridor: Chile, Bolivia, Pampanga, Bicol, and Iloilo Peru and Ecuador, Argentina and Surfing tourism circuit: La Colombia Union, Baler, and Calicoan in Eastern Samar Tourism Destination a tourism development unit, regardless of the area, number, and levels of political units involved refers to the place being visited generally, a larger or broader concept than attraction area that contains attractions, activities, accommodations, and other visitor amenities developed or planned in a comprehensive and integrated manner Strategic Destination Areas (SDAs) a group of priority TDAs that are adjacent to each other and are within their respective clusters Criteria for identification A critical mass of attractions, facilities, and services in the area Capacity of the environment to sustain tourism development Capability of direct accessibility from key source markets Diversity of product offer in a way that can be promoted to different niche markets, thereby facilitating product/branding Area geographically large enough to allow different forms of tourist development to coexist Capable of being promoted as “stand-alone” destination in the marketplace Philippine Tourism Cluster Tourism Characteristics and Planning Implications A composite product composed of goods and services that are provided by entities in the tourism value chain The value chain refers to the series of public and private entities that convert resources into value-added tourism products that are sold to tourists. One of the rationales for tourism planning is to identify, organize, and integrate entities along the tourism value chain to ensure the delivery of consistently high-quality tourist experiences. Trinh (2024) Boracay: Pre-Travel Planning & Booking Actors: Online Travel Agencies (Agoda, Booking.com, Expedia) Local Tour Operators & Travel Agencies Airlines & Ferry Operators (Philippine Airlines, Cebu Pacific, 2GO Travel) Marketing & Promotion Agencies (DOT, LGU, Private Advertisers) Activities: Tourists research, compare, and book accommodations, flights, and packages Tour agencies market island experiences and facilitate bookings Boracay: In-Travel Arrival & Transportation Actors: Airports (Caticlan Airport, Kalibo Airport); Seaports (Caticlan Jetty Port) Transport Services (Tricycles, E-trikes, Shuttle Services) LGUs & Immigration Authorities Activities: Tourists arrive via air or sea. Local transport operators facilitate transfers from the airport/port to accommodations. Accommodation & Hospitality Actors: Hotels & Resorts (Shangri-La Boracay, Henann Group, Astoria) Guesthouses, Airbnb, Hostels, Homestay Operators Activities: Tourists check into accommodations. Hotels provide services (food, spa, entertainment, tours). Boracay: In-Travel Food & Beverage Actors: Restaurants, Cafés, and Bars (Jonah’s Fruit Shake, D’Talipapa, Epic) Street Food Vendors & Local Eateries Suppliers (Fishermen, Farmers, Food Distributors) Activities: Tourists dine in local or international restaurants. Local farmers and fisherfolk supply ingredients. Activities & Experiences Actors: Water Sports & Adventure Providers (Parasailing, Diving, Island Hopping) Local Tour Guides & Cultural Performers Shopping & Souvenir Shops (D’Mall, Talipapa Markets); Wellness & Spa Services Activities: Tourists engage in activities such as diving, snorkeling, and sunset cruises. They shop for souvenirs, local handicrafts, and textiles. Boracay: In-Travel Support Services & Infrastructure Actors: Government & Regulation (Department of Tourism, DENR, LGUs) Banks & Financial Services (ATMs, Forex, E-Payments) Security & Safety (Police, Coast Guard, Lifeguards) Waste Management & Utilities Activities: Environmental regulations (Boracay rehabilitation & carrying capacity policies) Financial transactions, waste disposal, and emergency response services Boracay: Post-Travel Post-Travel & Feedback Actors: Online Review Platforms (TripAdvisor, Google Reviews) Media & Bloggers LGU/NGA/DMO Activities: Tourists leave feedback and reviews. Tourism stakeholders adjust services based on feedback. Has a reverse flow of products and consumers Goods and services comprising the tourism product are largely found at the place of production (destination) stationary It is the consumer (tourist) who has to travel and is transported to the destination to consume (use) the product. After consuming the product, tourists export or take away their experiences and a few gifts from the destination. Intangible No free trial Decision to visit is based on images, word-of- mouth, social media reviews, etc. As a planner, one should incorporate strategies for managing expectations and maximizing visitor satisfaction. With long gestation periods No overnight success in destination development Tourism plan must cover a medium to long-term horizon and commitment Capital intensive Especially at the early stages of destination development Need to build infrastructure, facilities, and human expertise Some may involve costly components such as land reclamation, airport construction, township development, importation of extremely expensive advanced technology, etc. Plan must be able to present realistic estimates of the financial requirements, identify sources of financial assistance, and possible fiscal and non-fiscal government incentives. Feasibility studies Culture and nature as its main assets Free but finite Thus, need for protection/conservation mechanisms Tourism plans must therefore incorporate strategies for natural and cultural protection at the pre-development stage Legislative controls on setbacks, building heights, architectural designs, preservation of historic towns, density limits, and waste management Subject to external factors Largely uncontrollable Political situation, war, weather, natural calamities, currency fluctuations, economic shocks, international relations, etc. Tourism planners must be able to spot key drivers of tourism growth or decline, and identify strategies that will help a destination take advantage of opportunities and prepare contingency measures for worst-case scenarios. Tourism planners must also temper optimism with pragmatism Tourism may not always be the best development option Exerts impacts Environmental, socio-cultural, and economic Lack of proper planning may lead to damages or catastrophes, instead of development Planners help avoid undesirable changes from occurring by drawing up precautionary measures at the earliest stage of tourism development (e.g., Environmental Impact Assessment, Benefits-Costs Analysis, Regulatory Impact Assessment) Dynamic and competitive Tourism planners must keep tack of the latest trends in tourism product development, including changing tourist profiles. Strategies for healthy competition and collaboration Agglomeration, Supply and Value Chain linkages Involves stakeholders Stakeholders provide valuable inputs in planning in terms of knowledge, experiences, and insider information. Social acceptability of the plan is crucial for successful implementation. Importance of Tourism Planning Importance of Tourism Planning Fundamental to having a good tourism development program Tourism plan and development program can provide plans and strategies for areas in which the government and the private sectors have little or no experience on how to develop these areas. Articulates tourism development priorities and describes the sequence of development to optimize time and resources Provide bases for the approval of requests for infrastructure projects, and technical and financial assistance by the government, private, NGOs, or international funding/support institutions (e.g., ODA) Importance of Tourism Planning Tourism plan is essential to coordinate the different industries/sectors to provide better goods/services; thus, satisfying the needs of the tourists and the general public. Direct and indirect benefits of tourism can be achieved through a cohesive tourism plan, including environmental conservation through the improvement of tourist destinations, facilities, and infrastructure. For sustainable use of resources for tourism amidst economic growth Factors for Effective Tourism Planning and Development Factors for Effective Tourism Planning and Development 1. Availability and quality of tourism-relevant data 2. Availability of tourism planning expertise 3. Type and variety of tourism resources 4. Culture of the destination residents 5. Geographic location and spatial distribution of tourism development units 6. Target markets 7. Stage in tourism area life cycle (TALC) 8. Tourism development paradigm 9. National tourism policy and legislation 10. Perceptions and attitudes of stakeholders 11. Awareness of external forces 12. Financial capital requirement 1. Availability and quality of tourism-relevant data affect the level of accuracy of estimating supply capacity, forecasting demand, and monitoring outcomes 2. Caliber of planning expertise determines the quality of planning outputs Expertise can only be built over long years of education and professional experience. 3. Type and variety of tourism resources limit options for tourism product development Destinations can capitalize on unique cultural or natural assets by developing tourism products around them. 4. Culture of destination residents impacts the kind of tourists attracted to it Examples: Malaysia for Islamic religion and culture Philippines with predominantly Catholic religion and culture How destinations may compete (Felipe de Leon Jr.): Originality - Being the first to have a particular attraction Indigenousness - Having something that can only be found in your destination Authenticity - Being true to traditions and methods of preparation (not contrived) Uniqueness – Unlike anything else Historicity - Being significant for a particular event Magnitude - Being the tallest, smallest, biggest, scariest, or anything superlative Excellence - Having the highest quality 5. Geographic location and spatial distribution of tourism development units Location has direct relation regarding concerns on climate, security, vulnerability to natural disasters, and infrastructure requirements. Climate affects the seasonality of tourism, the range of activities that can be offered to the tourists, the kinds of foods available, and the types of buildings that can be constructed. Location also affects real and perceived security. Spatial distribution affects the cost of travel, duration of tours, and cost of providing utilities and public services. 6. Target markets influence the kind of amenities and services that are offered in the destination PH top tourism market Japan (1970s-80s) -> South Korea (1980s-2000s) -> China (2010s)-> South Korea (2020s) Philippine Tourism Revenue and Visitor Arrivals in 2024 (DOT, 2025) Total arrivals in 2024: 5,949,350 (up 9.15% from 5,450,557 in 2023). 91.42% (5,438,967) were foreigners, while 8.58% (510,383) were overseas Filipinos. South Korea remained the top source market (1,574,152 visitors, 26.46% market share). United States ranked second (1,076,663 visitors, up from 1,041,305 in 2023). Japan experienced 22.84% growth (444,528 visitors, up from 361,862 in 2023). China showed signs of recovery (313,856 visitors, up from 264,922 in 2023). Other top contributors: Australia (299,286), Canada (269,300), Taiwan (213,833), Singapore (198,471), United Kingdom (178,656), and Malaysia (99,881) Philippine Tourism Revenue and Visitor Arrivals in 2024 (DOT, 2025) Market Trends and Contributing Factors Growth from South Korea was driven by enhanced air connectivity, cultural exchanges, and incentive travel programs. U.S. visitor growth was supported by direct flights (San Francisco & Seattle to Manila), cultural and adventure tourism, and improved connectivity. Japan’s increase was due to aggressive tourism campaigns and partnerships with travel agencies. China’s recovery was facilitated by new flight routes, cruise tourism, and visa waivers. Philippine Tourism Revenue and Visitor Arrivals in 2024 (DOT, 2025) Emerging and Recovering Markets Middle Eastern markets showed strong recovery: UAE (668.34% recovery rate), Qatar (832.87%), Saudi Arabia (66.54%), Oman and Bahrain (200%+ recovery rates) Top 25 source markets that fully recovered vs. 2019: Australia (102.63%), Canada (109.26%), Hong Kong (106.79%), Italy (143.02%), Spain (111.08%), Guam (200.19%), New Zealand (100.50%), Switzerland (102.01%) Philippine Tourism Revenue and Visitor Arrivals in 2024 (DOT, 2025) Record-High Tourism Revenue The Philippines achieved an all-time high tourism revenue of ₱760.50 billion in 2024. This represents a 9.04% increase from ₱697.46 billion in 2023. Surpassed pre-pandemic levels (₱600.01 billion in 2019) by 26.75%, achieving a 126.75% recovery rate. Growth attributed to job creation, economic resilience, and rural livelihood development. Philippine Tourism Revenue and Visitor Arrivals in 2024 (DOT, 2025) International Visitor Spending and Stay Duration International tourists spent an average of $2,073 per capita. Average length of stay increased from 9 nights (2019) to over 11 nights (2024). 70% of international visitors were repeat tourists, indicating strong destination loyalty. 7. Stage in the TALC Butler’s Tourism Area Life Cycle (TALC) Stages in TALC 1.Exploration 2.Involvement 3.Development 4.Consolidation 5.Stagnation 6.Decline/Rejuvenation Stage 1. Exploration Small numbers of tourists Allocentrics and explorers with individual travel arrangements and irregular visitation patterns Primary tourist attractions (natural and cultural) and no specific facilities for visitors Tourism has no economic or social significance to local residents. Stage 2. Involvement Local residents begin to provide facilities primarily or even exclusively for visitors. Emergence of secondary tourism facilities (i.e., guest houses) and a tourist season Some level of organization in tourist travel arrangements can be expected Initial pressures develop for governments to improve transport for tourists Stage 3. Development Heavy advertising will create a well-defined tourist market area. Local involvement declines rapidly and there are area physical changes they may not approve. Natural and cultural attractions developed and supplemented by man-made imported facilities High numbers of tourists that may exceed the local population during peak periods Stage 4. Consolidation Tourism growth slows but the numbers of tourists exceeds the local population. Major part of area’s economy will be tied to tourism and marketing will be wide-reaching Tourism arouses opposition and discontent from some local people. The tourism cities will have well-defined recreational business districts Stage 5. Stagnation Peak numbers of visitors reached Capacity levels reached or exceeded, with environmental, social, and economic problems Area with well-established image but it will no longer be in fashion Natural and genuine cultural attractions superseded by imported ‘artificial’ facilities Stage 6. Decline/Rejuvenation Five possible scenarios ranging from decline to rejuvenation Decline Scenario: Unable to compete with newer tourism attractions and tourism facilities are replaced by non-tourism activities. Rejuvenation Scenario: Takes place through (a) addition of a man-made attraction or (b) taking advantage of previously untapped natural resources.  The stage in the TALC has an effect on the prevailing attitudes of residents to tourists and development strategies. Doxey Irridex Model suggests that residents’ attitudes toward tourism deteriorate from euphoria in the introduction stage to apathy in the growth stage, irritation in the maturity stage, and antagonism in the decline stage of tourism development. 8. Tourism Development Paradigm a standard/perspective in looking at tourism development defines the choice of issues, goals, and strategies of tourism development Example: Pro-poor Biocentrism Pro-equality Pro-equity 9. National Tourism Policy and Legislation set parameters to what can and cannot be done, and priority areas for tourism development RA 9593 (Tourism Act of 2009) “The State declares tourism as an indispensable element of the national economy and an industry of national interest and importance, which must be harnessed as an engine of socioeconomic growth and cultural affirmation to generate investment, foreign exchange, and employment, and to continue to mold and enhanced sense of national pride for all Filipinos.” Features of Philippine Tourism Policy (RA 9593) Nationalist orientation Sustainable tourism development Ecologically sustainable, responsible, participative, culturally sensitive, economically viable, and ethically and socially equitable for local communities International target markets Tourism product diversification Private sector participation and focus on agri-tourism 10. Perceptions and Attitudes of Stakeholders affect the degree of support the stakeholders give to tourism development 11. Awareness of External Forces affects the viability of planned tourism projects covers socio-cultural, technological, environmental, economic, and political dimensions Some external developments which could impact tourism: Trend toward instant gratification, health and fitness consciousness Aging population in the source markets Rise of China, India, and Russia in the world economy The convergence of technology; broader access to Internet; and the growing use of social media Climate change; global warming; deforestation; species extinction Passage of pro-tourism laws General Agreement on Trade in Services (GATS) 12. Financial Capital Requirement major consideration in whether or not to proceed with tourism development may be loans, grants, appropriation from government, private sector investment, NGO donations, individual philanthropy, or public-private sector partnership