Tourism as a System PDF

Tourism as a System Tourism as a System – every part of tourism is related to every other part. − No owner or manager has complete control of his own destiny. − But the more each one learns about the others, the more successful he can be in his own enterprise no matter whether it is run b...

Tourism as a System Tourism as a System – every part of tourism is related to every other part. − No owner or manager has complete control of his own destiny. − But the more each one learns about the others, the more successful he can be in his own enterprise no matter whether it is run by commercial business, non-profit organization, or government. − Tourism cannot be planned without understanding the interrelationships among the several parts of the supply side, especially as they relate to market demand. 2 Main Drivers of Tourism Supply Side – in order to satisfy the market demand, a nation, region, or community must be able to provide a variety of development and services. − How well this supply side matches the market is the key to reaching the ultimate in correct tourism development. − All government agencies related to tourism have the obligation of making sure their individual policies and practices provide the opportunity for linking travel market preferences with supply development. 1. Demand Side of Tourism – as any manufacturer knows, the best product to manufacture is one that is appealing or preferred by the market. This is equally true with tourism. Major Factors of the Demand Side of Tourism 1. A tourist (for business or pleasure) must be motivated to travel. 2. Financial ability to pay for services and facilities. 3. Time and physical ability to travel. 4. Forecasting of travel demand. Market Segmentation – the subdividing of a market into homogenous subsets of customers, where any subset may conceivably be selected as a target market. − 3 Basic Conditions Which Should be Met for Segmentation: 1. There must be great enough numbers in each segment to warrant special attention. 2. There must be sufficient similarity of characteristics within each group to give them distinction. 3. The subsets must be viable – worthy of attention. DGPB 4 Segments of Tourism Markets 1. Demographic Segmenting – refers to measurable personal characteristics, such as age, income, occupation, family size/life cycle and educational level. − Marketers seek to determine how these variables influence travel and the development of facilities and services. − Each situation requires a mix of these factors to determine their significance. 2. Geographic Segmenting – is used to determine differences and similarities in travel preference due to traveler location. − Location factors are important for decisions on air routes, attraction development within given travel distances, and decisions on destination development due to weather conditions. 3. Psychographic Segmenting – is a more recent method of grouping travel markets according to their values, attitudes, lifestyles, interest, activities, and personalities. − Such grouping can help both marketers and developers direct their programs and projects to meet the interests of these groups. 4. Behavioristic Segmenting – divides the travel market into groups that have similar buying habits, including travel habits and preferences, purpose of travel, and benefit sought. − By making this grouping, those who promote as well as those who plan and develop tourism can focus their efforts more precisely. − Planners and Developers (public and private) must have current information on travel market characteristics in order to understand why, where, and what development is most appropriate. 2. Supply Side of Tourism – “Supply Side” – is all the objects and services that are provided to meet demand. − It includes all those programs and land uses that are designed and managed to provide for receiving visitors. 5 Major Components of the Supply Side of Tourism 1. Attractions – constitute the most powerful component of the supply side of tourism, they make up the energizing power unit of the tourism system. 2 Major Functions: ASTIP 1. They entice, lure, and stimulate interest in travel. 2. Provides visitor satisfactions, the rewards from travel – the true travel “product.” Scope: − Attractions are those developed locations that are planned and managed for visitor interest, activity, and enjoyment. Planning Considerations: − Attractions are created and managed. − Attractions gain by being clustered. − Linkage between attractions and services is important. − Attraction locations are both rural and urban. 2. Services – Scope: − This category is most frequently called the “Hospitality Service Industry.” − Accommodations, food service, travel agencies, and other travel businesses. Planning Considerations: − Location and service influenced two markets – Travelers and Local Residents. − A balanced economic base is more stable. − Tourist businesses depend on urban infrastructure. − Businesses gain from clustering. − Fragile environments should be avoided. − Services depend on attractions. − Entrepreneurship is critical to tourism planning. 3. Transportation – Scope: − Provides the critical linkage between market source and destination. − Transportation between cities and attractions within urban areas and within attraction complexes. − Travel modes for people-movement throughout the circuit utilizing air, water, land – automobile, taxi, horse carriage (in historic districts). − Roads, highways, bridges, airports, seaports, railways are vital to transportation system. Planning Considerations: − Transportation sector must include tourism in its plans. − Intermodal travel requires new planning cooperation. − Transportation is more than engineering. − Highways require greater sensitivity to the environment. − Pedestrianism. 4. Information – Scope: − Information is to describe (the destination), like maps, guidebooks, videos, magazine articles, tour guide narratives, brochures, internet, and traveler anecdotes, road signs, and geographic positioning systems (GPS) – these can assist the traveler in finding his way and understanding what he is seeing and doing. − The Visitor Center is one form of traveler information linkage. Planning Considerations: − Information segmentation is needed. − Information systems are not promotion. − Visitor centers are essential. − A national guidance system is ideal. − Local hospitality training is needed. 5. Promotion Scope: − Intended to attract people to visit the destination. − Promotion for tourism usually encompasses four activities: Advertising (paid) Publicity (unpaid) Public Relations and Incentives (gifts, discounts) APPIP Print and Online Promotion. Planning Considerations: − Tourism promotion is a major policy and program activity. − Proliferation of online promotions – social media. − Promotion is costly. − Some promotional signs (billboards and signs along the highway intersections) have questionable value. The Tourism Planning Process – the core value of this course is to enable you to make a tourism plan. − In order for you to do that, we will discuss the basic steps in tourism planning and the kinds of information that you need to have to prepare a plan. − Finally, we will discuss the tools for analyzing internal and external factors that impinge on a destination, evaluating tourism assets and tourism sites, and making projections on demand and supply. Planning Models 1. Basic Planning Model – the most basic planning sequence was proposed by the British planning pioneer Patrick Geddes: 1. Survey – involves data and information gathering. 2. Analyze – analysis of the data collected and detection of trends that are likely to occur or continue in the future. 3. Plan – making a plan, taking into account the facts and interpretations derived from the first two steps. 2. Systematic Planning Process – by Brian McLoughlin. 1. Decide to adopt planning. 2. Set goals and objectives. 3. Study courses of action. 4. Evaluate courses of action (cost-benefit analysis). 5. Select course of action. 6. Monitor results → Step 2. Set goals and objectives. Tools & Data Requirements for Tourism Planning – the main tools that can be used for the situation analysis are published toolkits, websites, government documents, statistical reports, and existing plans. Situation Analysis Situation Analysis – section of a plan is carried out to establish where the destination stands in terms of: 1. Socio-Economic Data 2. Land Use 3. Infrastructure 4. Tourist Attraction 5. Visitors and Supply Data 6. Existing Plans and Programs 1. Socio-Economic Data: − Population at base year and at projected year. − Economic indicators at base year and projected year (GDP, GRDP). − Employment in tourism at base year and projected year. 2. Land Use: (Sources: LGU’s Comprehensive Land Use Plan): − Land use classification (forest, agriculture, settlement – urban/rural residential area), zones specified for tourism use, etc. − Area in hectares and percent to total area. − Land use maps may be prepared digitally or manually. 3. Infrastructure: − Data on Infrastructure – can be from topographic maps or from the provincial Geographic Information System. − A Planner or Engineer – can help locate infrastructure information to provide a copy of an infrastructure map. − Inventory of Infrastructure: You have to present this information on a map, which you can make using computer software or manually. Use different map symbols for planned and existing infrastructure information (e.g. solid lines for current and dotted or broken lines for planned infrastructure). 4. Tourist Attractions: − You have to list them by name, type, and category. − Then you have to map them using standard symbols. − You must also collect this useful information about the attractions, perhaps with the help of a tourism officer, like policies, historical background, and access from major airports, seaports, and land transportation terminals. − The inventory may include volume of domestic and foreign visitations if data is available. 5. Visitors and Supply Data: − Visitor Arrivals at Major Entry Points (airports/seaports) The survey on visitor arrivals at the entry point will yield data that will be useful for calculating the demand for rooms or commercial accommodation. − Visitor profile Can be analyzed from reviewing the questionnaire survey. Questions include: residence, age, gender, nights of stay, number and type of companion, places visited.  − Supply Data Accommodation Establishments (AE) Total number of rooms available by size. Total number of AE’s by type (hotel, condotel, tourist inn, serviced residence, apartelles, motel, pension house, homestay site, etc.) Number of rooms by type. Classification of AE’s by size: Large – 60 or more rooms. Medium – 20-59 rooms. Small – 19 or less rooms. Tourism Service Industries: Tour operators Travel agents Tour guides Souvenir shops Restaurants 6. Existing Plans and Programs: − In preparing new plans, you will have to refer to existing plans and programs. − This will save a lot of time and effort and avoid costly mistakes. − Look for: Comprehensive Land Use Plan Comprehensive Development Plan Provincial Physical Framework Plan Regional Tourism Development Plan National Tourism Development Plan Philippine Medium-Term Development Plan by the National Economic Development Authority (NEDA) Tools for Situation Analysis SWOT Analysis – the Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis is a grid used to identify and organize INTERNAL (SW) and EXTERNAL (OT) factors that have potential to affect the destination. 1. Strengths – these include all the things your destination is best in, as well as all the controllable factors such as attractions, local infrastructure, festivals, specific foods, beach quality, accommodation capacity and quality, strong tourism policies, etc. − Strengths can be developed around aspects of the destination that are: Unique Excellent Authentic Indigenous Original Historic Have superlative characteristics (highest, longest, smallest, etc.)  − A Strength can be the basis for the destination’s COMPARATIVE advantage and COMPETITIVE advantage. 1. Comparative Advantage – is an attribute of the destination that gives it a distinct edge over other places in a particular aspect of tourism. − Example: Siargao – has a competitive advantage as a surfing destination because of the superior quality of its surf. − This advantage is attributed to its location along the Pacific Coast of the Philippines where the winds whip up the iconic tubes that appeal to highly experienced surfers. 2. Competitive Advantage – is what people can do to make use of the comparative advantage or offset a weakness. − Example: Singapore – has few major natural assets but makes up for this deficiency through constant innovation and service quality. 2. Weaknesses – these are internal factors that are under your control but need improvement. − Example: Lack of experienced or knowledgeable staff, security issues, lack of infrastructure, or transportation access, dirty environment, and lack of local tourism plans. − In analyzing the strengths and weaknesses of a destination, the following use of the “A’s” of tourism as a framework is recommend: 1. Attractions – natural and cultural resources. 2. Advantages – existence of tourism resources not found anywhere else. 3. Access – location of the destination, travel time, transportation, terminals, infrastructure, connectivity. 4. Accommodation – hotel, homestay, camp sites, etc. 5. Amenities – banking, shopping, heath facilities. 6. Activities – what can be done at the destination. 7. Atmosphere – peace and order situation, safety. 8. Ability – quality of human resources for tourism, such marketing and service skills. 9. Administration – presence or absence of a tourism organization, ordinances affecting tourism, data gathering system for tourism planning. 10. Attitude – acceptance and support for tourism by local stakeholders. 11. Affluence – financial muscle of the destination. 12. Affordability – relative prices of goods and services in the destination. 13. Arrival – visitor traffic. 3. Opportunities – these are external factors that can enhance the viability of a destination. − Robust growth in key source markets. − National level support for tourism programs. − Growing interest in the international market in tourism products offered in your destination. 4. Threats – these are uncontrollable factors that could place your destination at risk. − Lack of up-to-date statistics from national government, − New competitors, − War/terrorism − Economic turndown in the source markets − Climate change, etc. Major Criteria for Evaluating Attractions 1. Tourist Appeal 2. Accessibility 3. Activities and Products 4. Facilities and Services Evaluation Criteria for Designating Tourism Development Areas (TDA) For the purpose of designating a TDA, facilities located in the places will be evaluated on the basis of: 1. Transportation 2. Tourism Service Facilities 3. Accommodation Establishments (AE) 4. Infrastructure The Required Data for this Evaluation 1. Inventory of Tourism Attractions 2. Number of Rooms by Type of AE 3. Development Plan of LGU 4. Maps Showing Location, Network or Service Areas of Infrastructure – airports, ports, roads, water supply, sewerage system, power supply, and telecommunications. 1. Transportation: − Travel time from airport or provincial main seaport (in hours) to TDA service center. − Conditions and capacity of airport or main seaport. − Transport services at the airport or main seaport. − Road conditions from gateway town to TDA service center. − Tourism service facility. − Visitor service facility at TDA/TDC service center or town. 2. AE Facilities within the TDA/TDC: − Number of rooms. 3. Infrastructure at TDA Service Center/Tow: − Water supply (distance) − Sanitation (sewerage system and solid waste collection) − Power (distance) − Telecommunications Targeting Methods – the Local Tourism Plan indicates future targets for: 1. Tourist Arrivals 2. Number of Rooms Required 3. Number of Jobs Generated Targets – can be set based on local estimates or the national figures, as indicated by the current national tourism development plan. 1. Target for Visitor Arrivals – can be based on average growth rate during the past several years (e.g. past 5 years). 2. Targets for Employment – are based on the assumption that in general terms, 3-5 people are employed directly and indirectly for every room of an accommodation establishment. DOT-JICA – according to this, the final targets should be made in consultation with stakeholders to get inputs regarding the following: Does the industry feel the targets are attainable? Does the public investment plan for infrastructure meet future increased demand and its attendant impacts? − Example: will there be a new airport to accommodate the projected increase in arrivals? Are there sufficient human resources available in the LGU that can be hired and trained as hotel staff? Is the capacity of the water and electricity utilities enough to accommodate the increased demand? How is a Plan Adopted? (How does a plan get to be approved?) 1. The plan has to be presented in the public hearings at the LGU Level and at the Regional Development Council before they are finally given approval for implementation. 2. After successful defense of the plan, the plan is adopted. Local Tourism Development Plans – must be prepared into a tourism development planning digest. − This document summarizes the tourism development plans of cities and municipalities and serves as a communication tool among stakeholders, decision makers, and potential investors. Components of Tourism Master Plan Each section must contain its own situation analysis, statement of objectives, strategies, action plan, and budget. A tourism master development plan may contain the following elements (or sections): 1. Gender and Development 2. Product Development 3. Infrastructure Development Plan 4. Site Plan (facilities) 5. Marketing Plan 6. Human Resource Development Plan 7. Investment Plan