Unit 4- Development of tourism (3).docx

**UNIT 4** **Development of a tourism destination** **Travel** To go from one place to another, as by car, train, plane, or ship; take a trip; journey: to travel for pleasure. To move or go from one place or point to another. KEY COMPONENTS 5 A's of tourism is about the 5 major components of to...

**UNIT 4** **Development of a tourism destination** **Travel** To go from one place to another, as by car, train, plane, or ship; take a trip; journey: to travel for pleasure. To move or go from one place or point to another. KEY COMPONENTS 5 A's of tourism is about the 5 major components of tourism on which it is depended and judged. These 5 A's are: 1. Attraction: It includes all those factors which attract a tourist. It could be a place, nature, lakes, beach, monuments etc. 2. Accessibility: It is how to access or reach to that place of attraction. Ways to reach. 3. Accommodation: Place to stay or accommodate while travelling for rest or overnight stays. 4. Amenities: All the other services which we require while travelling for good and comfortable living while travel such as food, drinking water, sanitary, etc. 5. Activities: It includes activities which a place or attraction holds such as nature walks, history & architecture, boating, views, health, etc. **What makes a successful tourist destination?** The world is filled with successful **tourist destinations**, with many places drawing in millions of people every year from all across the world. London, Paris, Cannes, New York City, and Monaco are just a few of the places that are famous worldwide for being **tourist hotspots**. The question is, why are these places so popular? Can any destination flourish as well as the above with some **strategy**? The first important aspect of a tourist destination is the **environment**. Architecture, cleanliness, beauty, and a unique appearance are all components of the **environment of a place**, and each is integral to creating the right appearance. **Presentation of a place** visually is perhaps one of the most important factors in creating a successful **tourist destination**, as people will judge a destination in a matter of seconds upon arrival. **Industry** is another sector of a location that is important to consider. This includes everything from art galleries to sport, from manufacturing to film. **Industry** is at the heart of a location, and is a big motivator for **tourists** to visit. However, **Industry** may be more important to local people than it is to tourists travelling long distances, as tourists may stick to visiting **landmarks**. **Landmarks** are also a huge asset when attempting to attract **tourists**, however, there are many successful **tourist destinations** that do not have them. With all the right ingredients, a **tourist destination** can become it's own **landmark**. **History** is another asset which is beneficial to a place but not compulsory. **History** is one of the components that make certain destinations so popular, however, with many locations their **history** is either ignored or overlooked, yet they still remain **popular destinations**. The **local community** must also play a part in making a **successful tourist location**. The mind-set of **stakeholders** is a huge influencer in the success of a **destination**, as their attitude towards **tourists** can affect their behaviour towards them. Friendly locals can be a factor in making people want to return to a **destination**, and an unfriendly reception can stop people coming back at all. Finally, it is the **branding** used which combines all of the above aspects to create the **ultimate tourist destination**. A talented **Branding Agency** will dig out what a location has to offer so that a place can showcase its' **true essence** and gain a **personality**. A powerful and compelling **brand** has the power to turn any regular location into somewhere special. Every place has the potential to succeed, it is merely a matter of finding the **spark** and **igniting** it to create success. ROLE OF PRIVATE AND PUBLIC SECTOR A business is an organization selling a product or service to a consumer to gain a benefit from the trade. Travel and Tourism business organizations are formed to earn profit and increase the personal wealth of the organizations in exchange for their product and services. In addition to different types of activity in the business, there are also various forms of business organization, with different legal characteristics. The main two type organization in travel and tourism is Private sector and Public sector. The private sector includes private limited company, partnership, limited liability partnership, sole proprietor, and franchise. It is involved in inbound, outbound and domestic tourism industry. However public sector includes government controlled, local government controlled and membership organizations. As above mentioned, in Travel and Tourism industry there are there are two main type of organization which is important to explain. They are: - Private sectors - Public sectors **Private sector** Private companies and organizations produce goods and services to the consumer with the aim of making profit for the owners and shareholders of the private enterprise. Christine King (2005) describes private sector as 'Private sector businesses are owned by individuals, either as sole traders, partnership or limited companies. Their main aim is to make a profit to pay the owners or shareholders who invested their money into the organizations'. Most of the organizations in the travel and tourism industry is owned and operated in the private sector. One of the examples is Marriott International, Inc**.**  Marriott International, Inc is an international hospitality company formed in 1927. They manage, franchise, own and develop Marriot brand hotels and resorts around different areas of the world. They are in the private sector and are set up as a private limited company. Private limited company is a type of company whose shares is not traded on a stock market and may only be sold if other shareholders agree. The capital in such a company is only contributed by the owners and shares cannot be issued to the general public. The shares of a private limited company are not traded on the stock exchange. Also shareholders may not be able to sell their shares without the agreement of the other shareholders. Maximum shareholders allowed are 50. Therefore more capital can be raised but growth may be limited. **Public sector** Organizations which are run by the government are known as the public sector. The public sector is a part of the state that deals with the production, ownership, sale, provision, delivery and allocation of goods and services by and for the government or its citizens. In travel and tourism public sectors play a vital role making more aware of publicity with the business environment. It also helps to promote destinations and provide range of services to encourage tourism development. As being a public limited company, it can raise funds and capital by selling its shares to the general public. A public limited company can have five or more owners. Shareholders are the owners of the company. It has board of directors that is elected by shareholders and the company is managed by this elected board of directors. Development of tourism infrastructure requires heavy investment in wide-ranging and diverse activities. Many of these activities are in the form of public utilities like power, water, gas and transport etc. These services are so vital to the society that government intervention is considered inevitable even in those countries which follow \"free market\" policies.\ \ Due to its diversity, tourism has to inter-face with several other sectors of the economy. The Government has to play a major role in channelling of funds to various National and Local departments for undertaking development and maintenance of Roads, Highways, Motorways, Bus Terminals, Railways, Air-services, Sea-ports etc. Provision of land at concessional rates and supply of utilities in the tourism priority areas is also essential. In the absence of these basic requisites, private sector initiatives would not sprout, let alone grow. Therefore, comprehensive long and short term plans for development of tourism super-structure are to be identified, co-ordinated and implemented by the Government.\ \ Apart from investing in provision of basic services, the Government identifies tourism products, preserves heritage, environment and ecology. Market forces cannot be expected to ensure that environmental degradation will not occur. Public funds are to be provided for launching awareness programmes, and for undertaking requisite preservation efforts.\ \ \ Public Sector tourism organisations at the National and the Local levels shall continue to play leading and catalyst role in development of tourism infrastructure (eg hotels, restaurants, road-side facilities, resorts, amusement parks, theme parks, etc) in the areas where private sector is either shy to invest or where Government desires to bring the benefits of tourism development to local population.\ \ Encourage foreign and domestic investors by facilitating and providing incentives but at the same time by regulating them to save ecology, environment, religious & cultural traditions and ideological limits of the country besides ensuring that locals are being benefited from such investment.\ \ Rationalise taxation and land policies in the tourism sector in all the federating units.\ \ Introduce regulations ensuring social, cultural & environmental sustainability, safety and security to tourists.\ \ **[Investigating the travel and tourism sector:]**\ \ **[Private sector organisations:]**\ Most travel and tourism businesses belong to the private sector. The main objective of private sector organisations is to make profit. Tourism is said to be the world\'s largest employer, and in the UK 10% of the employment is in the tourism sector. \ Some examples of Private sector organisations are:\ 1.) Thomas Cook              \ 2.) Alton Towers\ 3.) Holiday inn\ 4.) Virgin Trains\ 5.) British Airways\ 6.) London Eye\ \ **[Public sector organisations:]**\ Public sector organisations are funded by the national and local government. The aim of the public sector is to educate, inform and provide a service to its customers. DCMS (Department of culture, media and sport).\ Some examples of Public sector organisations are:\ 1.) Museums\ 2.) Visitor information Centres\ 3.) National gallery \ 4.) Regional development organisations\ \ **[Voluntary sector organisations:]**\ Voluntary sector organisations are often charities or trusts. They are funded mainly through their members, entrance fees to attractions, fundraising and donations. The aims of voluntary sector organisations are to preserve, protect and promote their cause. They are usually staffed by a mixture of paid managers, workers and volunteers.\ Some examples of Voluntary sector organisations are:\ 1.) The National trust\ 2.) Tourism concern\ 3.) Friends of Williamson\'s\ 4.) The Sealed knot **Tourism Life Cycle Model** **Tourism Life cycle model**. **Butler** proposed that most **tourist** resorts go through a six stage **model** and he called this the **tourism life cycle model**. It states that most **tourist** resorts start on a very small scale and get bigger and bigger until stagnation occurs. 1 **Exploration** The exploration stage begins when a small number of visitors who are adventurous and attracted by the destination's unique or considerably different natural and cultural features arrive. 2 I**nvolvement** As the number of tourists increases, more of the local residents get involved to provide facilities for the tourists, thus resulting in additional income for the providers. While there is still limited interaction between tourists and local residents, the developing tourism industry leads to the provision of basic services, which also benefits the local residents. At this stage, some advertising to attract tourists can be anticipated, thereby inducing a definable pattern of seasonal variation. **3 Development** This stage is characterized as one where large numbers of visitors arrive. The number of tourists will probably equal to or exceed the permanent local population. Local involvement and control of development begins to decline rapidly while external companies provide up-to-date facilities. **4 Consolidation** During the consolidation stage, tourism has become a major part of the local economy. However, the rate of increase of visitors has declined although the total numbers continue to increase, such that the total visitor numbers exceed the number of permanent residents. Deterioration of the quality-of-life and the negative impacts of tourism activities may be felt by the residents. 5. **Stagnation** At this stage, the peak number of visitors will have been reached, and most are repeat visitors. Capacity levels for many attractions and facilities will have been reached or exceeded, resulting in environmental, social, and economic problems (Butler 1980, 2004 ). **6 Decline** In this final stage, the destination will not be able to compete with newer attractions and will face a declining market. The place will no longer appeal to vacationers. Property turnover will be high, and tourist facilities and accommodation begin to be converted to non-tourist-related structures (Butler 1980 ). **6 Rejuvenation** The rejuvenation stage corresponds to the renovation phase or the reintroduction of the product with new features phase in the product life cycle. This stage is usually not reached without the active involvement of destination planners and marketing organizations coupled with a complete change in the attractions and facilities on which tourism is based. Often, additions of man-made attractions are necessary. However, if neighboring and competing areas follow suit, the effective-ness of the measures will be reduced (Butler 1980 ). **The Six Stages of Tourist Area Evolution** +-----------------------------------------------------------------------+ | 1: The Exploration Stage | | | | - Small numbers of tourists | | | | - Based on primary tourist attractions. These maybe natural or | | cultural. | | | | - No secondary tourism attractions. | | | | - Tourism has no economic or social significance to local | | residents. | | | | 2: The Involvement Stage | | | | - Local residents become involved in tourism | | | | - Emergence of secondary tourism facilities such as guest houses. | | | | - A tourism season may develop. | | | | - Pressure develops for governments to improve transport for | | tourists. | | | | 3: The Development Stage | | | | - High numbers of tourists that may exceed the local population | | during peak periods. | | | | - Heavy advertising will create a well-defined tourist market. | | | | - Local involvement and control of tourism declines rapidly. | | | | 4: The Consolidation Stage | | | | - Tourism growth slows but the numbers of tourists exceeds the | | local population. | | | | - The area\'s economy is tied to tourism | | | | - Marketing and advertising will be wide-reaching. | | | | - Major franchises and tourism chains will be represented. | | | | - Resort areas will have a well-defined **recreational business | | district**. | | | | - Tourism arouses opposition and discontent from some local people. | | | | 5: The Stagnation Stage | | | | - Visitor numbers have reached their peak. | | | | - **Carrying capacity** has been reached or exceeded. | | | | - Tourism causes environmental, social and economic problems. | | | | - The resort becomes divorced from its geographic environment. | | | | - | +-----------------------------------------------------------------------+ The Final Stage of the Butler Model\ After reaching stagnation, Butler saw that rejuvenation or decline as possible alternatives. The last stage of his model offers five scenarios between complete rejuvenation and total decline:\ \ A: Successful redevelopment leads to renewed growth.\ B: Minor modifications to capacity levels lead to modest growth in tourism.\ C: Tourism is stabilised by cutting capacity levels.\ D: Continued overuse of resources and lack of investment leads to decline.\ E: War, disease or other catastrophe causes an immediate collapse in tourism. Stage 6: The Decline Scenario - Unable to compete with newer tourism attractions - Holidaymakers replaced by weekend or day-trippers. - Tourism facilities replaced by non-tourism activities. Stage 6. The Rejuvenation Scenario - Requires a complete change in tourism attractions. - Previously untapped tourism resources maybe found. According to the 1980 Butler model, tourism areas leaving stage five, will either decline or rejuvenate - either way, the tourism area has evolved into the sixth stage of its development. It is misleading to identify a seventh stage in Butler\'s model. HOMEWORK **Research examples of destinations that are at different stages of the development process. Local, national and international examples should be used as well as different types of destination (e.g. beach resort, mountain area, city, ski region). Students could be encouraged to consider the stage of development of those destinations they have visited, their local area, nearby resorts and popular national and international resorts before researching new destinations.**