Chapter 4 Tourism Planning and Development

Learning Objectives

Explain the reasons & purposes for tourism planning. Identify the barriers to tourism planning. Describe the steps in the tourism planning process. Describe and differentiate among tourism position statements, vision statements, goals, strategies, and objectives. Explain the concept and principles of sustainable tourism development. Describe the main forms of tourism development. Discuss government and private-sector roles in tourism development. Describe the role and types of government incentives for tourism development and the criteria for government financial assistance. Describe the objectives and steps in completing a pre-feasibility study and an economic feasibility study. Identify the two main groups concerned with the results of economic feasibility studies and discuss the questions they typically want answered. Explain the purposes of preparing an environmental impact assessment.

Overview

The destination area with and without tourism planning Barriers to tourism planning Purposes of tourism planning Tourism planning process Building a sustainable future for tourism The link between tourism planning and tourism development Government and private-sector participation in tourism development Analysis of individual project development opportunities

The destination area with tourism planning

Planning is a process of selection from among alternative courses of action. Five basic reasons for tourism planning:
Tourism development has both positive and negative impacts; (destination life cycle) More competitive situation; More complicated phenomenon; Tourism has damaged natural and cultural resources; Community involved.

Butlers Tourism Destination Lifecycle Model

Source: http://www.destinationrecovery.com/destinationlifecycle.html

Seven stages of destination life cycle

Like most products, destinations have a product lifecycle. Butler proposed a widely-accepted tourism destination lifecycle model which has 7 distinct stages: 1. Exploration
A destination begins as a relatively unknown and adventurous visitors initially come in small numbers restricted by lack of access, facilities, and local knowledge.
1.

Involvement
Local investment in tourism and tourism advertising start. Visitor number begin to increase and government agencies start to develop the infrastructure.

1.

Development
There is a rapid growth in visitor numbers as the destination becomes heavily advertised. The amenities are increased and improved. Visitors change to less adventurous.

Seven stages of destination life cycle

4.

Consolidation
Growth in visitor numbers will decline, although total numbers will still increase. Tourism becomes mass market

1.

Stagnation
The peak numbers of visitors will have been reached. Capacity levels for many variables will have been reached or exceeded. The area will have a well-established image but it will no longer be in fashion. There will be heavy reliance on repeat visitation and on conventions and similar forms of traffic.

1.

Decline
Visitor number decrease. External investors begin to pull out.

1.

Rejuvenation
New attractions are developed or new natural resources are used to reverse the negative trends in visitor arrivals.

Representative destination classifications

The destination area without tourism planning

Consequences of unplanned development:
Physical Human Marketing Organizational Other

Barriers to tourism planning

The objections to the principle of tourism planning; Cost of this process is high; The complexity (ownership) of tourism and the large number of government agencies involved; The diversity of tourism business (sector, size); The seasonality The high ownership turnover in tourism businesses.

Purposes of tourism planning

Five basic purposes

Identifying alternative approaches; Adapting to the unexpected; Maintaining uniqueness; Creating the desirable; Avoiding the undesirable.

Tourism planning process

Seven steps
1. 2. 3. 4. Background analysis Detailed research and analysis Synthesis and visioning Goal-setting, strategy selection, and objective-setting 5. Plan development 6. Plan implementation and monitoring 7. Plan evaluation

Step 1: Background Analysis

s s s s

Government policies, goals, objectives, and programs Existing destination mix elements and components Existing tourism demand Tourism strengths, weaknesses, problems, and issues

Step 2: Detailed Research and Analysis

s s s s

Resource analysis Activity analysis Market analysis Competitive analysis

Step 3: Synthesis and Visioning

Position statements Describe the existing situations in tourism development, marketing, organization, community awareness, and support services and activities. Vision statements Reflect the desired future states in tourism development, marketing, organization, community awareness, and support services and activities.

Step 4: Goal-Setting, Strategy Selection, and Objective-Setting

Goals Results or outcomes that the destination area tries to achieve within three to five years. Strategies Broad approaches selected to achieve tourism goals that help to translate existing conditions into desired future situations. Objectives Results or outcomes that the destination area tries to achieve within one to two years.

Step 5: Plan Development

s s

Description of programs, activities, roles, and funding Writing of tourism plan reports

Step 6: Plan Implementation and Monitoring

Plan implementation: The tourism plan is put into action by a governmental tourism agency. Plan monitoring: As the plan is being implemented, the coordinating agency checks to ensure that progress is made as originally intended. Plan evaluation: The performance on goals and objectives is measured and recommendations made for future tourism planning

Step 7: Plan Evaluation

s s

The performance on goals and objectives is measured. Recommendations are made for future tourism planning based on the results and outcomes of this plan.

Tourism Development
Sustainable Tourism Development
Tourism which is developed and maintained in an area in such a manner and at such a scale that it remains viable over an indefinite period and does not degrade or alter the environment (human and physical) in which it exists to such a degree that it prohibits the successful development and well-being of other activities and processes. Butler, R. W. (1993)

Principles of Sustainable Tourism Development

1. 2. 3.

To improve the quality of life of the host community To provide a high quality experience for visitors To maintain the quality of the environment on which both the host community and the visitors depend Ding, P., & Pigram, J. (1995)

Main Forms of Tourism Development

s s s s s

Low-impact to high-impact tourism Ecologically sustainable tourism development (ESTD) Alternative tourism Mass tourism Resort tourism

Private-Sector Roles in Tourism Development

s s s s

Idea generation Entrepreneurial role Specialized technical skills Financing

Volunteer Sector Roles in Tourism Development

s s s s

Operating attractions Creating and running events and special meals Providing travel information services Financing the development of community-oriented facilities

Government Roles in Tourism Development

s s s s s

Stimulator or catalyst for development Developer Operator Social tourism provider Regulator of tourism developments

Types of Government Incentives for Tourism Development

FISCAL INCENTIVES
s s s

Tax holidays or deferrals Remission of tariffs Tax reductions

Types of Government Incentives for Tourism Development

DIRECT AND INDIRECT INCENTIVES
s s s s s s

Nonrefundable grants Low-interest loans Interest rebates Forgivable loans Loan guarantees Working capital loans

Types of Government Incentives for Tourism Development

DIRECT AND INDIRECT INCENTIVES
s s s s s

Equity participation Training grants Infrastructure assistance Lease backs Land donations

Criteria for Government Financial Assistance

s s s s s s s s s

Competitive impact Compliance with policies and plans Developer and operator capabilities Economic contributions Environmental impact Equity contributions Feasibility Social-cultural impact Tourism impact

Objectives of Pre-Feasibility and Feasibility Studies

s

Pre-feasibility study: To determine whether a detailed economic feasibility study is justified and which topics the detailed study should address. Detailed economic feasibility study: To determine the economic feasibility of a tourism development project opportunity.

Steps in Feasibility Studies

s

Pre-feasibility study Detailed economic feasibility study: Site analysis Market analysis Economic feasibility analysis Cost/benefit analysis

Purposes of an Environmental Impact Assessment

s

To identify risks, minimize adverse impacts, and determine environmental acceptability. To achieve environmentally sound proposals through research, management, and monitoring. To manage conflict through the provision of a means for effective public participation.
Ecologically Sustainable Development Working Group. (1991)