Tourism planning

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Tourism planning

  1. 1. WHAT IS PLANNING? • Focuses on change • Needed to accommodate future change • Planning produces a set of decisions which allow for the preparation of future action • Planning could be for roads, balance sheets, destinations, from the perspective of a private firm, nationally etc.
  2. 2. A DEFINITION OF PLANNING “Planning is the process of identifying objectives and defining and evaluating methods of achieving them. By comprehensive planning we mean planning which considers all of the tourism resources, organizations, markets, and programs within a region. Comprehensive planning also considers economic, environmental, social, and institutional aspects of tourism development.” Stynes and O’Halloran, Michigan State University (1987)
  3. 3. TOURISM PLANNING PROCESS • Issue/problem definition • The process of problem definition (e.g. there are not enough tourist attractions, the airport is too small or perhaps there is not enough interest in investment, etc.) • Policy formulation • Policy implementation • The problem is superseded or redefined • Policy Outcome
  4. 4. TOURISM’S GROWTH, DEVELOPMENT AND NATURE • Tourism is changing at a rapid pace. • It can give an economic boost to society, different parts of the economy, culture, etc. However, tourism can equally have a detrimental effect upon the environment. • Tourism supports the production of goods and services. • Usually only front-end tourism is observed, but there are many indirect effects – multiplier effects • Tourism is a fragmented product (and a fragmented industry). It affects both the public and private sector. It is unlike the manufacturing industry which is self-contained for example. • Tourism affects many different parts of the economy, some obvious, such as accommodation and transportation, others less so, such as the landscape or farming.
  5. 5. TOURISM’S GROWTH, DEVELOPMENT AND NATURE • Probably the key reason for the development of tourism is foreign exchange. Excellent examples are Spain and the Maldives (Indian Ocean) which have developed and modernised due primarily to tourism. • Tourism is an “invisible export” industry. Tourists from the US, France, etc are invisible exports. Whilst they are not physical exports in the manner of cars or inanimate objects, their impact is considered the same. All countries with international tourism face similar problems and challenges.
  6. 6. TOURISM’S GROWTH, DEVELOPMENT AND NATURE • Tourism is dominated by SMEs (small mediumsized enterprises). • It includes a multitude of leisure-time activities. • Tourism supply is a result of productive activities and services. These services meet tourism demand (or that is the general idea). • Tourism supply is expressed in tourism consumption.
  7. 7. POSITIVE AND NEGATIVE IMPACTS OF TOURISM POLITICAL • The Balearic Islands’ (Majorca, Minorca, Ibiza, Formentera, etc) government fell as a result of its tourist policy. Majorca’s tourist policy failed and led to a change of government. • Tourism has been used as a means of establishing international acceptability (e.g. Turkey, Cuba) ECONOMIC • Large leakages of capital, expensive damage to environment or strains on local infrastructure • Increases in employment and indirect employment
  8. 8. POSITIVE AND NEGATIVE IMPACTS OF TOURISM SOCIAL • • Tensions between locals and holidaymakers. In the Costa del Sol and Andalusia holidaymakers have appreciated the area so much that they have purchased property there – also see property purchasing in the WESTERN CAPE TECHNOLOGICAL & CULTURAL • • Potential loss of identity as places become more westernised. Improvements in technology and the establishment of small businesses such as web cafés. ENVIRONMENTAL • • Destruction of natural environments, water shortages, loss of natural areas. Increase in awareness and education of natural protection and the development of sustainable tourism
  9. 9. TOURISM EMPLOYMENT Many Positive aspects: • It is easily developed. • It has many sectors/opportunities. • Work is flexible: there is both part-time and seasonal work, and it provides employment for unskilled labour. • Tourism is a labour-intensive industry: its “personal” service can not be replaced by machine labour. • It is seen as an interesting industry for its workers. • It has a “low-entry cost”: it costs approximately two thirds less than the cost of the set up of a factory job. • It has destination-area (i.e. local) impacts.
  10. 10. NEGATIVE IMPACTS • The tourism product is a perishable product: it has a life-span. For example, hotel rooms are perishable products. If a company makes 100 holidays and sells 90, there are 10 it never can sell. • Tourism is subject to unpredictable external influences, for example the weather, politics, economics, natural disasters etc. For example, foot and mouth disease prevented countryside tourism in England for around 2 years. • The capital costs to produce are not significant if success is achieved. A successful destination, such as Majorca, required few objects to start, and produced a considerably high yield. On the other hand, it can be an expensive mistake.
  11. 11. IS TOURISM SIGNIFICANT? • Tourism constitutes more than 9.3% of the world GDP (gross domestic product) - US$6, 630.4bn (Total contribution) • International arrivals worldwide have grown by 5% in 2013 reaching a record of 1, 087 million (additional 52 million international tourists in 2013) • It is estimated that it generates 261, 394, 000 jobs (101, 118, 000 direct) • Travel & Tourism investment in 2012 was USD764.7bn, or 4.7% of total investment. It should rise by 4.2% in 2013, and rise by 5.3% pa over the next ten years to US$1,341.4bn in 2023 (4.9% of total). • Source: http://www.wttc.org/site_media/uploads/downloads/world2013_1.pdf
  12. 12. HOW SIGNIFICANT IS TOURISM? • International tourism in emerging & developing markets has grown at an average rate of 6-8% over the past decade. Twice the rate of industrialized countries. • Tourism is a crucial contributor to these countries’ income - up to 70% for the world’s poorest countries. • Development financing from global Trade; Poverty Alleviation and Climate Response should recognize the long term potential of tourism as a sustainable growth engine. • With international travellers projected to almost double by 2020, the most significant increases are expected to take place in markets like China, India and destinations in South-East Asia. • Source: World Tourism Organization 2008
  13. 13. PLANNING FOR TOURISM – GENERAL PRINCIPLES Three general principles: • Anticipate. Projections need to be made: will tourism grow or shrink? • Regulate. Tourism in SA is in many ways not highly regulated, although it is indirectly in other ways but this is slowly changing. • Monitoring. A collection of data is made to see how the industry is performing.
  14. 14. PLANNING FOR TOURISM – GENERAL PRINCIPLES In addition: • We try to enhance the tourist experience. • We try to contribute to the wider sustainability of the destination/place without causing long term side effects or being detrimental to the host population.
  15. 15. AIM OF PLANNING • The aim of planning is to balance public and private sector interests. • The private sector is profit-driven. • The public sector is more concerned with managing growth.
  16. 16. TOURISM POLICIES • What are the aims of tourist policy? Who are its targets? • Tourism policy implies the direction and objectives an organisation wishes to pursue over a set period of time. • SA: expansionist policies. • Some countries consider that they have enough tourism. • Some tourist policies may be not-for-profit
  17. 17. GOVERNMENT INTEREST • A key interest is to curb outflow. • The government tries its best to boost domestic tourism for obvious reasons. • Governments may attempt to maximise the opportunities of the domestic population to travel – SHO’T LEFT & VAYA MZANZI • Inbound tourism is encouraged to intake foreignexchange earnings. In association with this, SA Tourism has tourist offices abroad. • “Social tourism” policies are sometimes adopted, such as enabling holidays within the governmental country. For example, in Spain, retired people are allowed subsidies to holiday within Spain.
  18. 18. GOVERNMENT INTEREST • Tourism can be useful for seeking political acceptability, such as in Turkey and Vietnam. • In the USSR and the former Eastern Bloc tourism was tightly controlled to deter it’s own citizens from travelling. • Spanish Dictator General Franco also used tourism as a vehicle to gain political acceptability during the 1960’s. • Libya also opened up to tourism as a means of attempting to improve international relations
  19. 19. STATE INVOLVEMENT • Competition needs to be encouraged and regulated. • The state provides infrastructure. In most countries, the state provides airports, planning, regulation; it plans for tourism development. Most airports think in terms of expansion, of a growth strategy. • The public interest is planned for (supposedly) by the state.
  20. 20. STATE INVOLVEMENT • Most countries have a NTO (National Tourism Organisation or National Tourism Office). In SA, this is “SA Tourism”. Most of these are funded, and this funding is often 2-way or 3-way. • In SA, the state funds the NTO. In many other countries however, NTO’s are funded by the private sector. Usually NTOs are provided by a hybrid of funding bodies. • Usually the tourism body “resides” in a department or ministry (a larger body than a department) – not so in SA
  21. 21. CRITICISMS OF PUBLIC SECTOR AND RECREATION TOURISM DEVELOPMENT RESPONSES • As a political activity, tourism policy can be criticised, due to changes with: • Attitudes (national attitudes could be strongly against tourism within their country). • Too narrow or too broad outlooks • Political Ideology • Tourism policy tends to be complex and convoluted • Tourism is usually not the core focus of the planning process. There is a cross-agency responsibility. • Public sector responses are ad-hoc: they tend not to be planned with an over-arching plan, but incrementally – this can be dangerous
  22. 22. CLASS EXERCISE • BACKGROUND OF THE AREA: • Highly populated, mostly informal settlement • Box manufacturing company that employs about 200 workers (mostly from the nearby community) • Approximately 15 locally owned guesthouses that are not appealing to tourists and are not sustainable • One national monument • 3 old and run-down churches • Three primary schools • Two high schools • One world cup stadium • Roads typically in bad condition except near the stadium • One separate sports field that was supposed to be used for youth development but closed to the public and not looked after • Somewhat unreliable public transport service that includes taxis and buses
  23. 23. CLASS EXERCISE – TASK INFO • TASK: • You are an investor that wants to build a soccer themed theme park in the area • Will need some of the land on which the manufacturing plant is located as well as a nearby primary school • Come up with a short proposal that includes an idea or ideas on how this can benefit the local community as well as contribute to South Africa’s growing tourism industry. • Focus on one aspect and try to come up with an innovative solution that will make your proposal more appealing to the community, government, local businesses, and other potential investors

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