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Luciano Millan National High School

STI

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tourism development theories tourism planning economic theories tourism

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This document provides an overview of various theories related to tourism development, including Laissez-faire, Modernization, Trickle-Down, Neoliberal, Dependency, and Irridex Model theories. The theories explore different perspectives on how tourism impacts economies and societies. It also details tourism planning platforms and approaches.

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TH1907 TOURISM DEVELOPMENT THEORIES There are existing theories on tourism development that may serve as a guide on what approach can be taken in tourism planning. Refer to the following for the theories and their definitions. Laissez-Faire Theory “Laissez-fair...

TH1907 TOURISM DEVELOPMENT THEORIES There are existing theories on tourism development that may serve as a guide on what approach can be taken in tourism planning. Refer to the following for the theories and their definitions. Laissez-Faire Theory “Laissez-faire” is a French word for “leave it be.” This theory has the assumption that the tourism industry works best when left to the responsibility of the market forces. This is also known as the liberal economic theory which means that no intervention should come from the government when it comes to policies and regulations involving tourism operations. The market forces of the tourism industry are left on their own terms as it encourages growth of tourism businesses and emphasizes economic returns (profit). However, it is also capable of destroying the destinations due to the excessive exploitation of its resources. Modernization Theory This theory emphasizes that tourism contributes to an area’s economic progress and transformation from traditional to modern. It uses tourism as an instrument for technological developments, improving the local community’s knowledge and skills, and adjustments in the way of living and culture in order to adapt to the increasing diversity of visitors. Modernization of infrastructure and facilities is also required under this theory as the needs of international tourists become more advanced. These upgrades also benefit the local community. However, concerns surrounding modernization are also raised as it tends to make heritage sites disappear with the thinking that modern structures are a better sight than the old ones. Trickle-Down Theory This theory has the assumption that economic growth leads to the improvement of living conditions in an area. Tourism growth should be able to improve the lives of everyone that is affected, from hotel managers down to souvenir vendors. This theory is related to the tourism multiplier effect, which is the revenue generated by inbound tourism that flows into a destination and injects new resource into the economy. Neoliberal Theory This theory suggests that the economy functions best when there’s minimal intervention from the government. Compared to the Laissez-Faire Theory, this theory accepts the government’s function to regulate but doesn’t accept the idea of the government competing with the private sectors by operating in the same business sense. Dependency Theory This theory sees tourism, particularly international tourism, as the modern-day colonialism. It argues that tourism makes developing nations dependent on developed nations in terms of technology, skills, and products to satisfy the international tourism market demands. In turn, the local economy suffers through leakages which results in a lack of employment opportunities for the locals, an increase on imports, and the need of services from foreign professionals. This is also evident when the developed nations exploit the resources of the developing nations which actually worsen the living conditions of the latter. Irridex Model Theory This theory is in relation with Doxey’s Irritation Index model where the negative social impacts of tourism is the highest concern. It suggests that the local community’s attitude towards tourism deteriorates as the negative impacts of tourism become more and more evident. Another concept related to this theory is social carrying capacity, which is the local community’s ability to tolerate the social effects of tourist visits within their area. 02 Handout 1 *Property of STI  [email protected] Page 1 of 6 TH1907 TOURISM PLANNING PLATFORMS Tourism planning is affected by how tourism is viewed. The tourism planning process usually begins with identifying the following elements: The nature of tourism The issues involving tourism Possible solutions on how these issues should be addressed. Once the aforementioned elements are identified, a platform can be formed. Platform is described as a common theme or focus of a specific study which, in this case, is tourism planning. There are five (5) tourism planning platforms that currently exist as of this writing. The first four (4) were introduced by Jafari in 1999, and the other one was mentioned by Todes in 2011 (Cruz, 2014). These are the following: Advocacy Platform This platform focuses on the positive impact that tourism brings. It is a known fact that tourism can cause massive improvement within an area such as creating employment, foreign exchange income, modernization on infrastructure, etc. The tourism policy under this platform may involve something that mentions tourism as a tool for national development. The advocacy platform also depicts tourism as a “clean industry,” or something that does not produce harmful substances that may pollute the environment. Tourism under this platform is also viewed as a tool for cultural revitalization and something that brings people together into a mutual understanding. These core beliefs in the advocacy platform emphasize that tourism should be enthusiastically pursued and prioritized. The effects of using this platform normally result in mass tourism. Theories that relate to this platform are the modernization and trickle-down theories. Cautionary Platform This is the exact opposite of the advocacy platform where tourism is viewed as a bad thing and focuses on the negative effects of mass tourism. This platform criticizes tourism, especially mass tourism, as something that creates dependency and leakages that takes the wealth of an area. This also views tourism as causes of the following: Hides the level of poverty in an area (through the development of high-rise hotels, airports, and shopping centers) Low-paying and seasonal jobs Loss of cultural traditions Exploitation of vulnerable groups of society (women, children, poor) Resentment of local communities on visitors Pollution and loss of biodiversity. These assumptions prompt this platform to avoid pursuance of further tourism development. This also supports the dependency and irridex model theories. Adaptancy Platform This platform acknowledges the negative impacts of mass tourism. However, it also emphasizes that the negative impacts tourism brings can be minimized, if not avoided at all. This platform encourages the pursuance of alternative tourism, which is described as a low-volume and low-impact form of tourism. Alternative tourism is the anti-thesis of mass tourism that has two (2) sets: Environmentally-oriented tourism – This includes forms of tourism that enhance the welfare of the environment, such as ecotourism and green tourism. 02 Handout 1 *Property of STI  [email protected] Page 2 of 6 TH1907 Socially-oriented tourism – This refers to the form of tourism that enhances the welfare of society, such as community-based tourism, ethnic tourism, and volunteer tourism. Knowledge-based Platform This platform has a more holistic approach to its views on tourism. It relies on the rawest and most rational information over moral opinions of others. This heavily supports the critical analysis of tourism which does not involve labeling certain forms of tourism as either good or bad. For example, it may view mass tourism as good when properly managed and ecotourism as bad when it is mismanaged. The concept of sustainable tourism conforms to this platform as it involves thorough education and research. Social Justice Platform Todes (as cited in Cruz, 2014) describes this platform as “something that embraces participatory processes involving open dialogue, inclusivity, resource distribution, equity, equality, pro-poor planning, gender sensitivity, and responsiveness to diversity.” It encourages those involved in the tourism planning process to see themselves as someone who is a catalyst for positive social change and a protector of the weaker members of society. The principles under this platform encourage a more community-approach in tourism planning and development. TOURISM PLANNING APPROACHES Majority of tourism destinations started as undiscovered areas where any form of planning was non-existent. This was simply because the habitants of the area did not see it as a necessity since the number of visitors were relatively low and there was no demand. Tourism was not simply the priority during those times, and local governments did not really allocate funds for tourism development. However, as the tourism industry started to progress and gain its popularity, different approaches were applied concerning tourism planning and development in order for destinations to be and remain competitive. The differences between tourism destinations were also a factor as to why different tourism planning approaches were developed. Ad-Hoc Planning This tourism planning approach is used only when the need arises, such as preparation in local festivals or when an important visitor is coming. There is no established tourism agenda in this approach, and its planning is on a case-by-case basis. Integrated Tourism Planning This approach integrates tourism in the overall development of a destination. It implies that tourism development must be linked to the economic, social, cultural, natural, and human resources of the destination. Tourism must coexist with the existing economic activities and values of the local residents. Boosterist Approach This approach heavily promotes tourism as an instrument for economic development. Its main objective is to generate maximum revenues from tourism through mass tourism. The main functions surrounding this approach are tourism capacity expansion and promotional campaigns. The indicators of success by using this approach are increase in tourist arrivals, room occupancies, and airline bookings. Product-led Development This approach suggests that focusing on the development of tourism infrastructure, facilities, and amenities first will naturally attract tourists. It simply supports the idea of “build something and the market will automatically take notice of it.” 02 Handout 1 *Property of STI  [email protected] Page 3 of 6 TH1907 Spatial Planning Approach This approach is a type of product-led development approach that focuses on a destination’s layout and design. It divides tourism into spatial units, or the spaces covered in tourism planning and where tourism is developed. Spatial units may include gateways or main access points such as airports, communities, access routes, attraction areas. According to Gunn and Var (as cited in Cruz, 2014), there are three (3) identified spatial units in tourism: Site scale – This scale refers to the level of tourism planning at an individual tourism property, such as hotels, resorts, or restaurants. Destination scale – This scale refers to the level of tourism planning within a community and its surrounding areas. Regional scale – This scale refers to the level of tourism planning at an entire province, region, or country. Another way to identify spatial units according to Japan International Cooperation Agency and Department of Tourism (JICA-DOT) (as cited in Cruz, 2014) is as follows: Tourism Sites (TSs) – specific areas that tourists visit and experience Tourism Development Area (TDA) – area/s that may contain one (1) or several tourism sites Tourism Development Cluster (TDC) – area/s that contain a significant number of tourism sites which can meet long-term development possibilities, such as geographical features, range of potential tourist attractions, etc. Demand-led Approach The perspective in this approach is to know the customers and satisfy them with their demands. This approach bears two (2) importance: The need for a market-centered tourism product design; and Projecting tourism market demands to serve as a basis for expanding the destination’s physical capacity. The tourism planning process must fully understand the characteristics and requirements of the tourism market. These may include stages in the life cycle, religion, culture, etc. These characteristics can be used as bases for identifying the available tourist attractions that can match the requirements of the tourism market. Bureaucratic-/Government-led Approach This approach puts the government as the central force in tourism planning and development. Several types of policy instruments that can be used in this approach are the following: Advocacy – This refers to strategic plans, accreditation schemes, investment schemes, etc. Monetary – This includes travel taxes, terminal fees, income tax, etc. Government action – This may include infrastructure development, marketing promotion, education, etc. Laws – This may include regulations for construction projects, foreign investment regulations, etc. There are two (2) types of bureaucratic approach: Central planning approach – This approach is where all functions in the tourism planning process are carried out by national-level departments and agencies. The state makes the policies and controls everything in the process. Developed planning approach – This is where local government units assume control of the entire tourism planning process within their respective areas. 02 Handout 1 *Property of STI  [email protected] Page 4 of 6 TH1907 Middle Path Approach This approach is mostly associated with the nation of Bhutan. It is the opposite of the boosterist approach as this focuses more on low-volume, high-yield tourism. This also imposes strict control on the type and volume of tourists that may enter and minimizes the negative effects of tourism. In Bhutan, tourist expenditure is higher than usual because this approach eliminates the entry of budget-type tourists, for they comprise the bulk of the tourism market. Bhutan believes that these restrictions help in preventing alterations of the Bhutanese culture. Environmental Approach This approach works best in areas that have natural attractions, especially those that are not beyond the reach of commercial industries or protected by specific types of laws (protected areas, ancestral lands, etc.). It uses the concept of carrying capacity in the tourism planning process, which is defined as “the maximum number of people that may visit a tourist destination at the same time without causing destruction of the physical, economic, and socio-cultural environment and an unacceptable decrease in the quality of visitors’ satisfaction” (Cruz, 2016). The most notable dimension of carrying capacity used in the tourism planning process is the physical carrying capacity, which is the maximum number of people that can fit on a site at any given time and still enables people to move (Cruz, 2014). Carrying capacities may vary depending on the area, the type of tourism that is being developed, as well as tourist attitudes, expectations, and behaviors. Another useful concept in this approach is the Limits of Acceptable Change (LAC). It attempts to set limits on the conditions that are ideal for an area, then sets up management strategies to attain the area’s desired conditions. Compared to carrying capacity, which sets a ceiling, LAC sets a range for factors such as social, ecological, physical, and economic that are acceptable. A good example of a successful output from this approach is ecotourism. Social Approach This approach heavily emphasizes the important role of stakeholders in the tourism planning process. Stakeholders should direct the benefits and control over the area’s natural resources towards the community and other sectors within the locals. Participatory/Stakeholder Approach This approach is where relevant stakeholders deliberate and make decisions in the tourism planning process. It helps promote the sense of ownership among stakeholders. This enables them to input their ideas from personal experiences and skills that may avoid issues affecting the entire tourism planning process. It also avoids the pitfalls that may be caused by ignorance or inexperience of some stakeholders. The downside of this approach is that it is vulnerable to arguments. Stakeholders have different agendas and opinions; this often results in disagreements that slow down, if not entirely halt, the entire tourism planning process. Community-based Approach This approach is community-centric as it emphasizes that local communities should have full control of a tourism enterprise and that their interest should be placed above the other stakeholders’. The idea behind this approach is that the local community will always be committed to developing its own domain regardless if the plan is good or not because they live there and will likely remain. The concept of this approach is similar to the theory of social learning and interpersonal interaction. This is when knowledge is brought over the community by someone and they, in turn, share their personal knowledge and experiences. Both the local community and the person or entity that bought the knowledge will have a 02 Handout 1 *Property of STI  [email protected] Page 5 of 6 TH1907 mutual learning process. The importance and value of the knowledge are recognized by both the entity and the local community. Pro-poor Approach It is defined as “a tourism that generates net benefits for the poor” (Cruz, 2014). This approach ensures that the poor are prioritized and the benefits of tourism developments are directed to them. It does not let the trickle-down effect theory happen automatically. The government or other agencies involved in the process intervene with the channeling of tourism benefits directly to the poor. Some of the principles that need to be followed in order for the pro-poor approach to succeed are as follows: Participation by poor people in decisions affecting their livelihood priorities A holistic livelihood approach – tourism is seen as part of the livelihood options in an area, a main economic activity, or as a supplement to existing livelihood activities Equity – distribution of benefits and costs Flexibility – pace or scale of development may be adjusted depending on the situation Commercial realism – pro-poor approach does not need to be small-scale; linking small tourism businesses with mainstream tourism enterprises will help ensure their feasibility Lessons from poverty analysis, environmental management, good governance, and small enterprise development should be passed on to build knowledge on this approach. Fair Trade Tourism Approach This approach is a response to the failure of delivering sustainable livelihoods and development opportunities in developing nations. Its concept is similar to the pro-poor approach. Fairtrade helps with sustainable development by providing better trading conditions and protecting the rights of small scale businesses. Sustainable Tourism Approach Sustainable tourism is defined as “management of all resources in such a way that economic, social, and aesthetic needs can be fulfilled while maintaining cultural integrity, essential ecological processes, biological diversity, and life support systems” (Cruz, 2016). This approach emphasizes that tourism development should not damage or exhaust any of the finite natural and/or cultural resources of a destination. This is in order for the future generation to enjoy the same resources that are currently providing different kinds of experiences. Tourism development under this approach is supported by three (3) dimensions: environment, economy, and society. References: Cruz, R. (2014). Tourism planning and development. Manila: Rex Bookstore, Inc. Cruz, R. (2016). Tourism impacts and sustainability. Manila: Rex Bookstore, Inc. Lansangan-Cruz, Z. (2015). Tourism: Planning and development. Mandaluyong City: National Book Store. Tourism Guidebook for Local Government Units. (2017). Retrieved from Department of Tourism website: http://www.tourism.gov.ph/guidebookandmanual.aspx on October 1, 2019 02 Handout 1 *Property of STI  [email protected] Page 6 of 6

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