A Practical Guide to Tourist Destination Management

A Practical Guide to Tourism
Destination Management
Copyright © 2007 World Tourism Organization
Calle Capitán Haya, 42
28020 Madrid, Spain
A Practical Guide to Tourism Destination Management
ISBN: 978-92-844-1243-3
Published and printed by the World Tourism Organization, Madrid, Spain
First printing 2007
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Table of Contents
© 2007 World Tourism Organization – ISBN 978-92-844-1243-3
Preface .............................................................................................................................. ix
Acknowledgement............................................................................................................. xi
1 An Introduction to Destination Management.................................................................. 1
1.1 Defining a Tourism Destination...................................................................................... 1
1.1.1 Introduction...................................................................................................... 1
1.1.2 The Basic Elements of the Tourist Destination.................................................. 1
1.2 Defining Destination Management................................................................................ 2
1.2.1 The Destination Management Organisation (DMO)........................................... 2
1.2.2 What is Destination Management?................................................................... 4
1.2.3 How Does Destination Management Work?..................................................... 6
1.2.4 Public/Private Partnerships.............................................................................. 8
1.3 Why Manage the Destination?...................................................................................... 9
1.3.1 Why Does the Destination Have to be “Managed”?.......................................... 9
1.3.2 Advantages of Managing a Destination............................................................ 9
1.4 Tourism Destination Management: Similar But Different to Other Industries.................. 10
1.4.1 Unique Features of the Tourism Industry........................................................... 10
1.4.2 The Implications of Being Unique..................................................................... 11
1.5 Sustainable Tourism Development................................................................................ 12
1.5.1 A Framework for Sustainable Tourism Development......................................... 12
1.5.2 Responsible Tourism Practices: Keys to Destination Sustainability.................... 14
1.5.3 Tools for Managing Resources......................................................................... 15
1.6 Destination Life Cycle: Various Stages of Development and
Why it is Important to be Aware of Them.......................................................... 16
1.7 Types of Tourism.......................................................................................................... 17
1.8 The Customer Journey................................................................................................. 18
1.9 Maximising Visitor Satisfaction: A Value Chain Approach.............................................. 20
1.9.1 Introduction...................................................................................................... 20
1.9.2 Primary Activities.............................................................................................. 21
1.9.3 Foundation Activities........................................................................................ 23
1.10 A Framework for Developing a Destination Management Strategy................................ 25
1.11 Strategy Check List...................................................................................................... 26
2 The Strategic Foundations: Assessing the Situation and Setting a Vision,
Goals and Objectives......................................................................................................... 27
2.1 The Situation Analysis: Assessing the Destination’s Competitiveness............................ 27
2.1.1 Introduction...................................................................................................... 27
iv A Practical Guide to Tourism Destination Management
2.1.2 Research is Key............................................................................................... 27
2.1.3 Elements of the Situation Analysis.................................................................... 28
2.2 Identifying Competitors and Tracking the Competitive Environment.............................. 33
2.2.1 Introduction...................................................................................................... 33
2.2.2 Who Are Your Competitors?............................................................................. 33
2.2.3 Finding Competitor Intelligence........................................................................ 34
2.2.4 Benchmarking Against Competitors................................................................. 34
2.2.5 Watching the Competitive Environment............................................................ 35
2.3 Setting a Vision, Goals, Objectives and Core Strategies............................................... 36
2.4 Turning Visions and Goals Into Actions......................................................................... 37
3 Positioning and Branding the Destination....................................................................... 41
3.1 Competitive Positioning of Destinations........................................................................ 41
3.1.1 Introduction...................................................................................................... 41
3.1.2 Unique Selling Propositions and Unique Emotional Propositions...................... 42
3.1.3 Positioning Implications for Destination Management....................................... 44
3.2 Destination Branding.................................................................................................... 45
3.2.1 The Strategic Role of the Destination Brand..................................................... 45
3.2.2 Branding Challenges for Tourism Destinations.................................................. 45
3.2.3 Benefits of Effective Destination Branding........................................................ 46
3.2.4 Key Factors for Success.................................................................................. 46
3.2.5 Understanding Your Targeted Market............................................................... 47
3.2.6 Brand Building Process.................................................................................... 47
3.2.7 Developing the Brand Identity.......................................................................... 49
3.2.8 Designing the Brand Architecture..................................................................... 50
3.2.9 Internalising the Brand..................................................................................... 51
4 Marketing the Destination................................................................................................. 53
4.1 Current Market Trends.................................................................................................. 53
4.2 Market Segmentation: The Basis of the Marketing Strategy.......................................... 55
4.2.1 Segmentation Tools......................................................................................... 56
4.2.2 Targeting.......................................................................................................... 57
4.3 The Marketing Mix........................................................................................................ 57
4.4 Planning the Promotions Strategy................................................................................ 58
4.4.1 Introduction...................................................................................................... 58
4.4.2 Designing the Promotional Programme............................................................ 59
4.4.3 The Promotional Mix........................................................................................ 60
4.5 Destination Promotion for Leisure Tourism.................................................................... 61
4.5.1 Consumer Advertising...................................................................................... 61
4.5.2 Personal Selling (see section on distribution for an explanation
of the travel channel)........................................................................................ 62
4.5.3 Special Promotions.......................................................................................... 65
4.5.4 Promoting Events............................................................................................. 66
4.5.5 Public Relations and Communication............................................................... 67
4.5.6 Communication and PR in Times of Crisis........................................................ 68
Table of Contents
4.5.7 Producing Promotional Materials...................................................................... 70
4.6 The Distribution System for Leisure Tourism................................................................. 72
4.6.1 Introduction...................................................................................................... 72
4.6.2 The Traditional Travel Distribution System......................................................... 72
4.6.3 The Emerging Distribution Net.......................................................................... 73
4.6.4 Working with the Travel Trade Channel............................................................. 74
4.7 Destination Promotion for Business Tourism................................................................. 75
4.7.1 Segments........................................................................................................ 75
4.7.2 Working with Destination Ambassadors........................................................... 76
4.7.3 Bidding............................................................................................................ 76
4.7.4 Support to Clients............................................................................................ 77
4.7.5 Subvention Funding......................................................................................... 78
4.7.6 Working with Convention Centres.................................................................... 78
4.7.7 Key Industry Players......................................................................................... 79
4.8 Seeking Promotional Synergies With Other Sectors...................................................... 79
4.8.1 Introduction...................................................................................................... 79
4.8.2 Benefits of Synergistic Relationships................................................................ 79
4.8.3 Ways of Promoting Synergies........................................................................... 80
4.9 Pricing ........................................................................................................................ 81
5 Developing Destination Products..................................................................................... 83
5.1 Product Strategies....................................................................................................... 83
5.1.1 Introduction...................................................................................................... 83
5.1.2 Implications for Product Strategy..................................................................... 84
5.1.3 Product-related Goals of the DMO................................................................... 84
5.2 Managing the Destination Product Life Cycle................................................................ 85
5.2.1 Introduction...................................................................................................... 85
5.2.2 Extending the Product Life Cycle..................................................................... 85
5.3 Product Portfolios and New Product Development....................................................... 87
5.3.1 Process for Developing a Product Portfolio...................................................... 87
5.3.2 New Product Development Process................................................................. 88
5.4 Promoting Tourism SMME Development...................................................................... 89
5.4.1 Introduction...................................................................................................... 89
5.4.2 Support Areas for Tourism................................................................................ 90
5.4.3 Support Organisations..................................................................................... 91
5.4.4 Some Ideas for Special SMME Support Initiatives............................................ 91
5.4.5 Women’s Employment and Participation in Tourism.......................................... 94
5.5 Events as Major Potential Tourism Stimulators.............................................................. 94
5.5.1 Introduction...................................................................................................... 94
5.5.2 Destination Events Strategy............................................................................. 95
5.5.3 Devising a DMO Portfolio of Events.................................................................. 96
5.6 Packaging Experiences................................................................................................ 97
5.7 Tourism Management of Natural, Cultural and Indigenous Heritage.............................. 98
5.7.1 What is Heritage?............................................................................................. 98
5.7.2 Why Manage a Heritage Site?.......................................................................... 98
vi A Practical Guide to Tourism Destination Management
5.7.3 Managing a Heritage Site................................................................................. 99
5.7.4 Managing Visitor Behaviour.............................................................................. 101
5.7.5 Interpretation.................................................................................................... 102
5.8 Visitor Stewardship....................................................................................................... 103
5.8.1 Introduction...................................................................................................... 103
5.8.2 Fostering Visitor Stewardship........................................................................... 104
5.9 Stimulating Tourism Investment.................................................................................... 105
5.9.1 Introduction...................................................................................................... 105
5.9.2 Investment Incentives....................................................................................... 105
5.9.3 Administering Incentives................................................................................... 107
5.9.4 Packaging and Promoting Investment Opportunities........................................ 107
6 Ensuring the Quality of the Visitors’ Experience............................................................. 109
6.1 Ensuring Quality and Standards................................................................................... 109
6.1.1 Introduction...................................................................................................... 109
6.1.2 ‘Lookers’ to ‘Bookers’...................................................................................... 109
6.1.3 At the Destination............................................................................................. 110
6.1.4 Benchmarking.................................................................................................. 111
6.2 Workforce Development............................................................................................... 111
6.2.1 Introduction...................................................................................................... 111
6.2.2 Considerations for Training and Skills............................................................... 112
6.2.3 A Workforce Annual Training Plan Cycle........................................................... 113
6.3 Working with the Community........................................................................................ 114
6.3.1 Introduction...................................................................................................... 114
6.3.2 Communicating with the Community................................................................ 114
6.3.3 Maximising a Community Partnership.............................................................. 115
6.4 Getting to the Destination............................................................................................. 116
6.4.1 Developing Air Routes...................................................................................... 116
6.4.2 Airports............................................................................................................ 116
6.4.3 Immigration Services........................................................................................ 117
6.5 Getting Around the Destination..................................................................................... 117
6.5.1 Introduction...................................................................................................... 117
6.5.2 Roads and Road Signage................................................................................ 117
6.5.3 Public Transport and Taxi Systems................................................................... 118
6.6 The Role of Visitor Information Centres......................................................................... 120
6.6.1 Introduction...................................................................................................... 120
6.6.2 Key Roles of the Visitor Information Centre....................................................... 120
6.6.3 Considerations for Visitor Information Centres of the Future............................. 121
6.7 Access for All............................................................................................................... 123
7 Destination E-Business and Information Management.................................................. 125
7.1 The Market and Technological Context......................................................................... 125
7.1.1 Importance of the Internet................................................................................ 125
7.1.2 Information and Knowledge Management........................................................ 125
Table of Contents vii
7.2 E-Business................................................................................................................... 126
7.2.1 External Dimensions......................................................................................... 126
7.2.2 Internal Dimensions.......................................................................................... 127
7.2.3 Benefits of E-Business..................................................................................... 127
7.3 Destination E-Business: Model and Programmes......................................................... 128
7.3.1 Delivering Services to a Wide Range of Users.................................................. 128
7.3.2 Steps Towards IM and E-Business Programme................................................ 130
7.4 E-Marketing and CRM.................................................................................................. 130
7.4.1 Benefits of E-Marketing.................................................................................... 130
7.4.2 E-Marketing and CRM..................................................................................... 130
7.5 New Methods of Accessing Information....................................................................... 132
7.5.1 Introduction...................................................................................................... 132
7.5.2 New Media Access Devices............................................................................. 132
7.5.3 Best Practice Examples................................................................................... 133
8 Organising for Destination Management......................................................................... 135
8.1 Roles and Responsibilities in Destination Management and Marketing......................... 135
8.2 Vertical and Horizontal Linkages: The Co-ordinating Role of the Regional DMO............ 135
8.3 Corporate Governance................................................................................................. 136
8.4 Delivering the Strategy and the Destination Management Plan..................................... 139
8.5 Business Planning and Budgeting................................................................................ 140
8.6 Standards for Governance........................................................................................... 140
8.7 Monitoring and Evaluation............................................................................................ 142
List of Acronyms................................................................................................................ 143
Other Sources..................................................................................................................... 145
Useful Websites.................................................................................................................. 147
Bibliography....................................................................................................................... 149
Preface
© 2007 World Tourism Organization – ISBN 978-92-844-1243-3
Destination management is a subject of growing importance as destinations compete to provide the highest quality of experience for visitors; and to manage the impacts of tourism on host communities and environments. To compete effectively, destinations have to deliver wonderful experiences and excellent value to visitors. The business of tourism is complex and fragmented and from the time that visitors arrive in the destination, until they leave, the quality of their experience is affected by many services and experiences, including a range of public and private services, community interactions, environment and hospitality. Delivering excellent value will depend on many organisations working together in unity. Destination management calls for a coalition of these different interests to work towards a common goal to ensure the viability and integrity of their destination now, and for the future.
Many destinations now have Destination Management Organisations or DMOs to lead the way.
Traditionally responsible for destination marketing, the role of the DMO (often Tourist Boards) is becoming far broader. DMOs today should not only lead on marketing, but must also be strategic leaders in destination development. This role requires them to drive and coordinate destination management activities within the framework of a coherent strategy. Promotion must attract people to visit in the first place; creating a suitable environment and quality delivery on the ground will ensure that visitors’ expectations are met at the destination and that they then both recommend the destination to others and return themselves on a future occasion.
This publication, the first UNWTO publication on the subject of destination management, represents a major contribution to developing professionalism in the field of destination management. It is intended as a practical guide, showing how concepts of destination management may be translated into practice, with models, guidelines, and snapshot case studies. It is essentially an overview of destination management; given the breadth of the subject, it cannot necessarily cover all these aspects in the fullest detail. The publication therefore also includes a brief section on further reading and useful websites. Whilst this report will be of considerable interest to academics as well as practitioners, it is certainly not intended as an academic text. We acknowledge the work of other experts and academic leaders who have contributed to the field of destination management; their work may provide readers with a broader conceptual understanding of the subject of destination management.
The report is full of sensible guidance and principles for destination management. However, there is a particular theme that I should like to emphasise – one that reoccurs throughout the report – that successful destination management is based on effective partnership between the many organisations, public and private, that together deliver quality of experience to visitors. Bringing those players together into a team requires strong leadership – from a champion for tourism who has stature within the destination community. This is a vital ingredient for success in every destination.
For ease of reference, each chapter can be read on its own, but the reader will gain maximum value by reading through the document as a whole, viewing each aspect within the context of the whole subject.
Acknowledgements
© 2007 World Tourism Organization – ISBN 978-92-844-1243-3
This report is the product of a partnership of experts, brought together by TEAM Tourism Consulting.
Dr. Mike Fabricius of The Journey Tourism Advisors, has been the Principal Author. Dr. Roger Carter, TEAM’s Managing Partner, has been co-author and editor. Dr. Davina Stanford, TEAM Researcher, has co-ordinated the whole publication, bringing together the wide range of contributions, including the material for the 64 case studies and authoring several sections.
We extend our thanks to them and also to the individual contributors: Gaëlle Connolly, Lorna Easton,
John Hendrie, Mady Keup, Gui Lohmann, David MacIntyre, Sarah Osborne, Richard Smith, Peter
Varlow.
Thanks are due also to Professor Don Hawkins, Sarah Osborne, John Pritchard and Sue Warren for
reviewing the document and commenting on drafts; and to Kerstin Schmidtke for administrative
assistance.
Finally, we would like to thank the numerous organisations and individuals who contributed material
for case studies, and gave agreement for us to share the benefit of their experience.
Esencan Terzibasoglu
Coordinator of Destination Management
Chapter 1
© 2007 World Tourism Organization – ISBN 978-92-844-1243-3
An Introduction
to Destination Management
1.1 Defining a Tourism Destination
1.1.1 Introduction
A local tourism destination is a physical space in which a tourist spends at least one overnight. It
includes tourism products such as support services and attractions and tourist resources within one
day’s return travel time. It has physical and administrative boundaries defining its management, and
images and perceptions defining its market competitiveness. Local destinations incorporate various
stakeholders often including a host community, and can nest and network to form larger destinations.
Destinations could be on any scale, from a whole country (e.g. Australia), a region (such as the Spanish
‘Costas’) or island (e.g. Bali), to a village, town or city, or a self-contained centre (e.g. Center Parc or
Disneyland).
This document is intended to be useful to destination managers within this range of scales: that said the
optimum level for destination management in most countries is below the national level.
1.1.2 The Basic Elements of the Tourist Destination
Destinations contain a number of basic elements which attract the visitor to the destination and which
satisfy their needs on arrival. These basic elements can be broken down into attractions (the ‘must sees’
or ‘must dos’) and the other remaining elements . These are summarised in Figure 1. The provision and
quality of these elements will be influential in the visitor’s decisions to make their trip.
Figure 1 Destination experiences
Destination appeal and experiences offered are shaped by:
Attractions Public and
Private
Amenities
Accessibility Human
Resources
Image and
Character
Price
Attractions. These are often the focus of visitor attention and may provide the initial motivation for
the tourist to visit the destination. These can be categorised as natural (e.g. beaches, mountains, parks,
weather), built (e.g. iconic buildings such as the Eiffel tower, heritage monuments, religious buildings,
conference and sports facilities), or cultural (e.g. museums, theatres, art galleries, cultural events). They
could be in the public realm such as a nature park, cultural or historical sites or could be community
attractions and services such as culture, heritage or lifestyle. Other, less tangible factors, such as
uniqueness and emotional or experiential triggers are also attracting tourists to destinations.
Amenities. These are the wide range of services and facilities which support the visitors’ stay and include
basic infrastructure such as utilities, public transport, and roads as well as direct services for the visitor
Cho, B. H. (2000), ‘Destination’, in J. Jafari (Ed.), Encyclopaedia of Tourism, Routledge, London and New York.
A Practical Guide to Tourism Destination Management
such as accommodation, visitor information, recreations facilities, guides, operators and catering and
shopping facilities.
Accessibility. The destination should be accessible to a large population base via road, air passenger
services, rail or cruise ships. Visitors should also be able to travel with relative ease within the destination.
Visa requirements, ports of entry, and specific entry conditions should be considered as part of the
accessibility of the destination.
Image. A unique character or image is crucial in attracting visitors to the destination. It is not sufficient
to have a good range of attractions and amenities if potential visitors are not aware of this. Various
means can be used to promote the destinations image (e.g. marketing and branding, travel media, emarketing).
The image of the destination includes uniqueness, sights, scenes, environmental quality,
safety, service levels, and the friendliness of people.
Price. Pricing is an important aspect of the destination’s competition with other destinations. Price
factors relate to the cost of transport to and from the destination as well as the cost on the ground of
accommodation, attractions, food and tour services. A tourist’s decision may also be based on other
economic features such as currency exchange.
Human Resources. Tourism is labour intensive and interaction with local communities is an important
aspect of the tourism experience. A well-trained tourism workforce and citizens who are equipped and
aware of the benefits and responsibilities associated with tourism growth are indispensable elements of
tourism destination delivery and need to be managed in accordance with the destination strategy.
1.2 Defining Destination Management
1.2.1 The Destination Management Organisation (DMO)
Destination management calls for a coalition of many organisations and interests working towards
a common goal. The Destination Management Organisation’s role should be to lead and coordinate
activities under a coherent strategy. They do not control the activities of their partners but bring together
resources and expertise and a degree of independence and objectivity to lead the way forward. It
follows that DMOs must develop a high level of skill in developing and managing partnerships. Though
DMOs have typically undertaken marketing activities, their remit is becoming far broader, to become a
strategic leader in destination development.
Tourism Victoria, Australia: Goals of a destination management organisation
Tourism Victoria is the State Government authority responsible for developing and marketing Victoria
as a premium tourist destination for Australian and international travellers. Tourism Victoria is a
statutory authority within the Department of Innovation, Industry, and Regional Development.
Tourism Victoria’s mission, in partnership with the industry, is to “Maximise employment and the long-term economic benefits of tourism to Victoria by developing and marketing the State as a competitive tourist destination”.
To achieve this mission, the Board of Tourism Victoria has set the organisation four broad goals:
Marketing Goal. To increase visitor numbers, length of stay and visitor expenditure by positioning Victoria as a distinct and competitive tourist destination.
Leadership Goal. To take a leadership role in the tourism industry, encourage professional standards and the development of cooperative arrangements which maximise industry effectiveness.