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Chapter 6 Tourism Development
Chapter 6 Tourism Development
Chapter 6 Tourism Development
Chapter 6 Tourism Development
Chapter 6 Tourism Development
Chapter 6 Tourism Development
Chapter 6 Tourism Development
Chapter 6 Tourism Development
Chapter 6 Tourism Development
Chapter 6 Tourism Development
Chapter 6 Tourism Development
Chapter 6 Tourism Development
Chapter 6 Tourism Development
Chapter 6 Tourism Development
Chapter 6 Tourism Development
Chapter 6 Tourism Development
Chapter 6 Tourism Development
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Chapter 6 Tourism Development

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PowerPoint slides for The Tourism System 7th ed. by Robert C. Mill and Alastair M. Morrison, published by Kendall/Hunt, 2012.

PowerPoint slides for The Tourism System 7th ed. by Robert C. Mill and Alastair M. Morrison, published by Kendall/Hunt, 2012.

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  • 1. The Tourism System 6th edition Chapter 6Kendall Hunt Publishing Company Tourism Development Chapter 6 Tourism Development © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint Contents  Describes tourism development with a particular emphasis on encouraging sustainable tourism.  Discusses government and private-sector roles in tourism development .  Reviews the techniques of pre-feasibility studies, economic feasibility studies, cost/benefit analyses, and environmental impact assessments. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 1
  • 2. The Tourism System 6th edition Chapter 6Kendall Hunt Publishing Company Tourism Development Purpose Having learned about the concept and principles of sustainable tourism development, students will be able to describe a process for evaluating individual tourism project development opportunities. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint Learning Objective 1: Sustainable Tourism Development Explain the concept and principles of sustainable tourism development. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 2
  • 3. The Tourism System 6th edition Chapter 6Kendall Hunt Publishing Company Tourism Development Building a Sustainable Future for Tourism: Sustainable Tourism Development According to Manning and Dougherty, sustainable development “means the use of natural resources to support economic activity without compromising the environment’s carrying capacity, which is its ability to continue producing those economic goods and services.” Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint Building a Sustainable Future for Tourism: Principles of Sustainable Tourism Development  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 UNWTO Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 3
  • 4. The Tourism System 6th edition Chapter 6Kendall Hunt Publishing Company Tourism Development Learning Objective 2: Main Forms of Tourism Development Describe the main forms of tourism development. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint Building a Sustainable Future for Tourism: Main Forms of Tourism Development  Low-impact to high-impact tourism  Ecologically-sustainable tourism  Alternative tourism Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 4
  • 5. The Tourism System 6th edition Chapter 6Kendall Hunt Publishing Company Tourism Development Building a Sustainable Future for Tourism: Main Forms of Tourism Development  Ecotourism  Deter or minimize negative environmental and social- cultural impacts.  Take place within “relatively untouched” natural areas.  Contribute to the conservation of areas.  Improve the local economy of adjacent communities.  Primarily address visitors who maintain a certain “non- consumerism”, nature-loving, and ethical conscience toward tourism.  Mass tourism  Resort tourism Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint The Link between Tourism Planning and Tourism Development  Tourism planning process produces goals, strategies, and objectives for tourism development.  Tourism plan provides overall guidelines for development and outlines broad development concepts.  Tourism plan identifies individual project development opportunities.  Note: However other developments will occur that were not contemplated in tourism plans. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 5
  • 6. The Tourism System 6th edition Chapter 6Kendall Hunt Publishing Company Tourism Development Learning Objective 3: Government and Private-Sector Participation in Tourism Development Discuss government and private-sector roles in tourism development. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint Private-Sector Roles in Tourism Development  Idea generation  Entrepreneurial role  Specialized technical skills  Financing Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 6
  • 7. The Tourism System 6th edition Chapter 6Kendall Hunt Publishing Company Tourism Development Volunteer Sector Roles in Tourism Development  Operating attractions  Creating and running events and special meals  Providing travel information services  Financing the development of community-oriented facilities Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint Government Roles in Tourism Development  Stimulator or catalyst for development  Developer  Operator: (1) Bankruptcy; (2) Pilots or Demonstration Projects; (3) Profitability Concerns; (4) Social Tourism  Social tourism provider  Regulator of tourism developments Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 7
  • 8. The Tourism System 6th edition Chapter 6Kendall Hunt Publishing Company Tourism Development Learning Objective 4: Roles and Types of Government Incentives in Tourism Development Describe the role and types of government incentives for tourism development and the criteria for government financial assistance. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint Fiscal Incentives for Government  Tax holidays or deferrals  Remission of tariffs  Tax reductions Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 8
  • 9. The Tourism System 6th edition Chapter 6Kendall Hunt Publishing Company Tourism Development Direct and Indirect Incentives from Government  Non-refundable grants  Low-interest loans  Interest rebates  Forgivable loans  Loan guarantees  Working capital loans  Equity participation  Training grants  Infrastructure assistance  Leasebacks  Land donations Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint Criteria for Government Financial Assistance  Competitive impact  Compliance with policies and plans  Developer and operator capabilities  Economic contributions  Environmental impacts  Equity contributions  Feasibility  Sociocultural impact  Tourism impact Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 9
  • 10. The Tourism System 6th edition Chapter 6Kendall Hunt Publishing Company Tourism Development Learning Objective 5: Pre-feasibility and Economic Feasibility Studies Describe the objectives and steps in completing a pre- feasibility study and an economic feasibility study. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint Analysis of Individual Project Development Opportunities: Objectives of Pre-Feasibility Studies  The objectives of a pre-feasibility study are to determine whether:  The information available is adequate to show the project will not be viable or will not be attractive to investors or lenders.  The information available indicates that the project is so promising that an investment decision can be made on the basis of the pre-feasibility study itself; that is, a detailed study is not needed. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 10
  • 11. The Tourism System 6th edition Chapter 6Kendall Hunt Publishing Company Tourism Development  The objectives of a pre-feasibility study are to determine whether:  A preliminary assessment of potential environmental, social or cultural impacts shows that these potential impacts are significant and unacceptable to the local community.  Aspects of the project are so critical to its viability that they must be analyzed as part of the detailed economic feasibility study.  The availability of factors critical to the viability of the project (such as availability of a specific site) must be confirmed prior to a detailed economic feasibility study. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint Analysis of Individual Project Development Opportunities: Objectives of Economic Feasibility Studies  To determine the economic feasibility of a tourism development project.  To evaluate the proposed site for the project or to locate a suitable site for the project.  To analyze the project’s market potential.  To produce recommendations on the scale, sizes, facility types, and quality levels of operation of the project. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 11
  • 12. The Tourism System 6th edition Chapter 6Kendall Hunt Publishing Company Tourism Development Analysis of Individual Project Development Opportunities: Steps in Economic Feasibility Studies  Project description  Pricing  Revenues  Expenses and profits (losses)  Capital costs  Cash flow  Return on investment (ROI) Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint Learning Objective 6: Groups Concerned with Feasibility Study Results Identify the two main groups concerned with the results of economic feasibility studies and discuss the questions they typically want answered. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 12
  • 13. The Tourism System 6th edition Chapter 6Kendall Hunt Publishing Company Tourism Development Analysis of Individual Project Development Opportunities: Main Groups Concerned with Feasibility Studies The two main groups concerned with the results of economic feasibility studies are:  Developers and investors  Lenders Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint Analysis of Individual Project Development Opportunities: Developer and Investor Questions  Which of several alternative site locations is the most appropriate?  Is a specific site appropriate for the development?  If not, is there another site available that would be suitable?  Is market demand large enough to support the project?  What are the optimum scale and components of the project? Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 13
  • 14. The Tourism System 6th edition Chapter 6Kendall Hunt Publishing Company Tourism Development Analysis of Individual Project Development Opportunities: Developer and Investor Questions  What style of operation and quality levels should be provided?  What revenues and expenses will the project experience?  What will the capital costs be?  Will the project produce a satisfactory return on investment?  Should the developers and investors proceed with further analysis? Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint Analysis of Individual Project Development Opportunities: Lender Questions  The same questions as for developers/investors are of concern to the lenders, and:  How much money will be loaned to the developers and investors?  Do the developers and investors have sufficient equity to invest in the project, given the financing required?  Will the project produce sufficient operating profits and cash flow to cover the interest and principal payments when they become due? Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 14
  • 15. The Tourism System 6th edition Chapter 6Kendall Hunt Publishing Company Tourism Development Learning Objective 7: Purposes of Environmental Impact Assessment Explain the purposes of preparing an environmental impact assessment. Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint Analysis of Individual Project Development Opportunities: Purposes of an Environmental Impact Assessment The main purpose of an environmental impact assessment (EIA) is to identify in advance factors that may affect the ability to build a proposed tourism development and the environmental attributes that will be affected by the development (Manning and Dougherty). Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 15
  • 16. The Tourism System 6th edition Chapter 6Kendall Hunt Publishing Company Tourism Development Analysis of Individual Project Development Opportunities: Purposes of an Environmental Impact Assessment  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 Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint Analysis of Individual Project Development Opportunities: Detailed Design and Construction  Preparation of preliminary architectural concepts  Preparation of preliminary architectural design  Preparation of final architectural design  Construction Copyright - VisitScotland/ScottishViewpoint © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 16
  • 17. The Tourism System 6th edition Chapter 6Kendall Hunt Publishing Company Tourism Development THE TOURISM SYSTEM Chapter 6 Chapter Summary Highlights  Development in tourism should follow sustainable tourism development principles.  Government fiscal and financial incentives play a major role in many destinations in encouraging tourism development.  Pre-feasibility and detailed economic feasibility studies should be completed.  Environmental impact assessments are a key tool in tourism development. © 2013 Photos: Copyright - VisitScotland/Scottish ViewpointRobert C Mill and Alastair M Morrison © 2013 17

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