This document discusses tourism products and destinations. It defines tourism products as anything that satisfies a tourist's needs, including tangible things, places, people, events and organizations. Destinations are comprised of various attractions, amenities, services and facilities that cater to tourists. Developing a successful destination requires comprehensive planning that considers factors like market demand, environmental and social impacts, infrastructure requirements, and financial feasibility.
The 10 Most Influential CMO's Leading the Way of Success, 2024 (Final file) (...
Unit 1 pg
1.
2. Tourism products in its generic sense
or in general can be a thing, a place, a
person, an event or an organization
which satisfies the needs of a tourist.
Therefore the products have need
satisfying capabilities.
Anything even water & food,
transportation, or a tourist directory
may be called tourism products.
A place may be defined as a city,
town, village, river bank, sea coast,
ecological places etc.
A person also comes under the
category of tourism products
3. According to Kotler,
“A product is anything of consumption
offered to satisfy the need or want of a
person. Products are a bundle of utilities
required by a tourist. This includes even
physical products which are very much
related to the services offered & we call
them as service products.”
4. According to Foster, “Tourism products
include a great range of packages & travel
facilities & in addition other non material
intangible things
5. Transport- Air, rail, ship, taxi, luxury coach,
cruise
Attraction- parks, zoo, heritage centers,
monuments, physical landscape.
Accommodation- hotel, motel, guest centers,
apartments, villas, cabins, camps, youth hostels,
youth camps or beach resorts.
Catering- these includes restaurants, dhabas,
café, fast food, public services, moving hotels.
7. - Government organisation
-regional tourists organisation
- Local or community bodies
- information centers
- Tourism council
- tourism department
- Visa & passport offices
- custom & excise services
- Medical services
- safety & security services
8. - Tourism products are of tangible &
intangible in nature
Inseperability
Perishability
Absence of ownership
Variability of tourism products
Unstable demand
10. Man made attractions
Artistic - paintings - cultural
Art forms- historical monuments
Archeological sites- sculptures
Converted activities & objects
Entertainments
Cinemas - race courses - theaters
Night clubs - theme parks - zoo
Sports
Adventure sports: Aero based, water based, land based
Tennis courts - Sports training centres
Polo - Jeep safari - Camel safari
Transport
Coaches - railways - cruises
airplanes
Others
Shopping (duty free) - handicrafts
11. A place or set of places to which tourists go and in
which they may stay as a prime objective of their
visit.
A destination comprises a core of facilities
amenities services fashioned to cater the needs of
the tourist i.e 5As
Attraction
Accommodation
Accessibility
Amenities
Ancillary services
12. Traditional concepts
Destination is a place where people spend their
holidays
Characteristic elements
Place(Structure and development of tourism region)
People(Demographics, motivation,participation and
destination)
Holiday(Tourists holiday activities)
13. A)Visitor perspective
An area where people choose to spend their
holidays and the resulting impacts of their
activities
Characteristic elements are
Area(city,tribal region)
Choice(individual motivation, alternative
places, holiday companions) and
Impacts(Economic,socio cultural,ecological)
14. Managing the demand for tourism and its
impacts on the destination
Characteristic elements are
Management of demand(access,quality control)
Management of Impacts(capacity
analysis,planning,zoning)
15. Destination is an amalgamation of several
components
Formulation and implementation involves a
team of experts
Large scale development involves huge planning
Masterplan includes Destination strategy,
detailed design, infrastucture
requirements,Types of analyses,technical
description and impact of resort development
16. Master plan comprises series of steps
Site selection
Understanding the history
Ownership
Applicable zoning regulations of the land holdings
Also information such as
Estimated cost of land
Development/Construction cost
yearly cash flows for projected economic life
of resort
capital gains
need to be gathered
17. Success of holiday recreation depends on
LOCATION. The choice of an appropriate
location is prime important for destination
developers.
Location can be set about in two ways
-Seemliness of the site as per nature of
use.(Range of activities intended to be
consummated)
-Accessibility of the site
18. Prescribed site area
Land for expansion for ancillary services and
adds attractiveness and status for the site
Climate-Eg. outdoor activities
Building specifications-Eg. Indoor sports,
Conference, museums etc
Services and utilities-Majority of the activities
need basic services like Water, electricity,
communication
19. The identification of the following is important and
they rely on the activity under consideration
(Eg.Theme Park)
Area of land or water
Size and
Form
20. Influenced by factors like
o Attractiveness-(visitors compare broad
surroundings with one another and it differs from
visitor to visitor)
o Accessibility-from market area of origin to
destination and accessibility to the site
21. Safety and security
based on design layout and management
( Eg. provision of Life belts and free
movement of children)
Quality and range of activities
Visitors are happy to pay for quality
provisions
Expect range of activities like
shopping,entertainment
22. Computerized mapping
Applicable in situations where there is a Clear
resource requirement is applied by setting the
criteria on the basis of activity requirements
identified earlier in the process
Potential surface analysis
Aerial surveys
23. Once alternative sites are identified, the
next step is their site evaluation
Commonly used methods are
Carrying capacity
Scoring
24. Max Number of people that can be accommodated at a site
without an inadmissible change in the quality of physical
environment and without an undesirable diminution in the
quality of experience gained by the visitors
While evaluating a particular site its carrying capacity in the
context of following has to be considered
Physical Carrying capacity
Ecological Carrying capacity
Perceptual Carrying capacity
Economic Carrying capacity and
Social aspects
25. An approach implying an assessment of every
individual site against the criteria setup on
the basis of preconditions of the activity and
the visitors likely to experience activity.
26. Involves use of land for
Resorts
Apartments
Condominiums
Free standing residencies
House for employees etc
Also for attractions like
Botanical gardens
Zoos
Landscaping etc
27. Land Development should be gainful for
visitors
Developers and
Community
Villages or towns holding attractions are also included in Land
development
Land development should weigh on both
o Welfare of the people likely to be employed in new facilities ,their life
style and economic welfare
o Satisfaction of the, expectation of the visitor and developer
28. For all facilities (roads, attractions,
Entertainment, security)required for a
destination land development take in long range
plans.
It may also include community Clubs,
greenbelts, Golf courses and other facilities.
Balance to be maintained amongst historic, socio
economic, aesthetic and ecological concerns.
Control in form of Size and Type of Buildings in
down town areas
29. Facilitates financial and social cost benefit analysis
Considered in two aspects i.e Demand and Supply
Market for project output (Tourist demand to the country)and
marketability of project output (Tourism supply)
Level of demand can be accesed by analysing the trends
(eco,soc,pol,dem,beh) and indicating how the nature and to what
extent(years) in the tourist market to the country.
Primary demand which pulls other demand is the demand for the
project
In evaluating the demand ,characteristics of the region has to be set by
project analyst giving a brief description about the proposed
location,its population,business activities and ancillary characteristics.
30. Marketability becomes important due to fragmented(Uneven)
nature in terms of
Size,
location and
ownership
with features of tourism like
inflexibility of supply,
perishability of services,
fixed location and financial investment,
level of risk and return on investment.
These are affected by Changes in Tourist attitude,
competitive condition,socio economic forces and govt
activity
Marketability of the product ought to be capable of
attracting target market to promise fair profit and potential
future growth
31. Market study is a basic prerequisite for
justifying conceptual plan
Market study helps in reducing investment
uncertainity and improving investment
decision
32. Market study helps in finding answers for
Pattern of changes in cost
Trend of visitor market
Accessibility,
degree of competitiveness
Advantage of the project
Experiences of comparable destination in hotel occupancy and other
facilities
Revenue generation units
Sales velocity
Quality and
price range
33. Based on the answers of market study market analyst
concentrates on
Size
Scope
Timing
Nature
Tentative price range and
Quality
To be provided at the destination
34. Project concerning destination development may necessitate
development of infrastructure, accommodation and other facilities
Financial aspects in a project may involve problems like
cost over run,
cash flow,
initial investment,
high debt etc.
The success of land facility leads to profitability of hotels
Due to uncertainties in future and lack of entrepreneurship the pvt
sector feels like learning the experiences of the public sector before
investing
FA Conducted parallel to non tourism projects
35. The modus operandi of such an appraisal is to adapt an inventory of
revenues and expenditures, including both capital and operational
,discounting the cash flows for each year and apply specific
techniques for project viability
Commonly employed appraisal approaches are
Net present value
Internal rate of return
Both are discounting techniques meant to provide present value of
future cash flows and Timing for cash flows
36. NPV furnishes exact monetary value and effective in choosing mutually
exclusive projects
IRR provides profitability in % and simple to interpret
Financial appraisal comprises thorough financing plan for the requisite
capital investments, pro forma income statements and predicted cash flows
Financial evaluation also serves as the core of social cost benefit analysis and
economic analysis in which benefit from the activity to a region is taken as a
whole
The central concept in cost benefit analysis in pricing the benefits and cost of
project is that of opportunity cost
Benefits from the activity are reflected by satisfaction of needs of the project
There are non quantifiable benefits like enhanced
income,employment,foreign exchange etc
Criteria for project to prove financially feasible are
NPV must be positive or greater than Zero
IRR exceed the cost of capital
37. Comprehensive description of the technical layout of project
including all the relevant infra/super structure elements should be
worked out for costing
Role of each component has to be defined
Nature , volume of materials, equipment and labour content should
be detailedPROJECT CONSTRUCTION SCHEDULE should be
composed by either bar chart/PROJECT EVALUATION AND
REVIEW TECHNIQUE/CRITICAL PATH METHOD
Approximate costs of each component has to be worked out(by
square foot)
Cost for similar construction can also be a guideline
Sum total of cost of project and subproject is the investment cost of
the project (contingency 10% has to be made to offset cost overrun
owing to time lag inn starting and completion of the project)
38. Role of economic analyst is to check with engineers to know the
anticipated land development and construction cost and then analyze the
nature of fit of development and construction cost with the pricing
structure suggested by market analyst.
If the cost and market rate are in harmony, the economy analyst attempts
to figure out the cost details of the project with the help of architects and
engineers
Such an info provides an assessment of total investment including data on
gross project investment,
construction cost on depreciation basis,
capital requirement schedule at regular intervals
39. If the cost and market price turns to be unfitting the economic
analyst discuss the developers issues like
Allowable level of quality sacrifice to lower construction cost
Probability of creating an unparalled product to defend higher
pricing
Possible reduction in recreation facilities
Impact of lower quality or unique products on the marketability of
the product etc
to chalk out the alternative strategies
40. With all these deliberations ,the destination development cost
may be brought down to satisfy the highly competitive market
It may also be resolved by the uniqueness of the proposed
product will convince the visitor to pay the higher price
Next step is the Identification of financial inputs-project
profitability in terms of profitability index(Benefit cost ratio)
41. Profitability index is the relationship between the present value of the
expected cash inflows discounted at the desired rate and the cost of
investment
Helps in collating projects of diverse size and economic life
An investment proposal is considered viable if present value of aggregate
future cash inflows is more than the present cash outflow by way of
investment cost and social cost
Of the two proposals one with higher surplus of discounted cash inflows as
well as social over the cash outflow and social cost is preferred
PI=Present value of cash Inflows/ Present value of
cash Outflows
42. Researchers advise the use of computerised
model to forecast the profitability of the
destination
43. Analysis of impact of destination development on environmental
and social patterns has been introduced in destination development
plan
Development plan has emerged as interdisciplinary approach
Characteristics of this approach are inputs from planners and
architects at early stages of analysis ,setting the tone for the
development, by designing a conceptual master plan and indicating
the type of input that market analyst can offer.
Market/economic analyst are responsible for working out the
rationalization(validation) of the nature, size and timing of the
conceptual plan
44. Tourism has strong intricate but fragile relationship with
environment, the prime features offering attractiveness to the
destination
Environment can be biologically defined as the life support
system of an organism community a species or other life system
complexes
In tourism it is perceived as a health of the tourist spot, resource
generation and long range infra structural development.
Env and ecology not only determines type of tourism, tourist
traffic flow, potential tourist activity but also overall magnetism
of the destination
45. Env is the thread of unity between community, visitor and destination
On failing of above conflict occurs
Tourism has central impact on env (pos & neg) which affects the economic
base of industry itself in natural areas
There is a general support for symbiotic relationship between two. (Tourism
and env)
Developers focus on revenue and tourists focus on environment protection.
Natural resorts are turning into commercially managed resorts
46. Destination development takes into account the env and ecological
affects of the development and the factors that disturb ecological
balance.
Env and ecology has both cost and benefit-economic and social
Development of islands pose climatic problems
Concept of system economy(quality tourism) growing fast than scale
economies(mass tourism)
If env issues are not dealt in planning stage it may lead to loss of
attraction itself
Poor planning and ineffective management destroys the env
Therefore harmonious balance has to be maintained
47. Travel is linked with communities-Hosts and guests
Community aiming at tourism should realize that there will be
impacts
Tourism development and its resultant activity besides the
economic gains would have certain socio cultural env impacts
It can be great benefit also be a stress
Dissimilar conflicting interest has to be considered to avoid
development at the cost of one group and to disperse benefit in
a right manner
48. It is significant but also imperative in
destination development.
Depends on Number as well as quality
of activities to be offered
49. Govt enter into tourist development in various levels like
Central, state or local
Intensity varies with the mode of participation and range of
activities covered
Tourism policy is an outcome of activities planned at different
levels
Public participation is crucial due to land development which
leads to increase in value of area
Most tourist developments require state and public money to
be invested for provisioning of utilities
50. In developing countries the pvt sector is reluctant to
take the initiative of investment in tourism
In such conditions the govt takes the lead by investing
in tourism in order to get it started which acts as pump
priming for pvt participation.
Govt also provide incentives in form of loans for govt
approved developments at lower than market rate of
interest, various concessions, subsidies etc.
51. Identified 5 areas of active consideration of govt. They are
Maximizing net foreign exchange earnings
Attracting foreign investment
Ensuring employment openings for residents
Designing befitting land use policies
Securing commensurate air transportation
for achieving objectives such as
Developing the economy through tourism
Fostering social and cultural development
Safeguarding and protecting nature
Preparing citizens for tourism
52. Destination passes the lifecycle indicating changes
in the destination to meet the supplementary visitor
needs
Govt through NTO should undertake alternative
roles consistent with a destination stages of
development
Implementing a Tourism policies at national level
is a prerogative of the govt exhibiting a diverse of
priorities and circumstances.
53. Development design bears relevance to following factors
Political
Socio cultural
Environmental
Economic
Size of the resort is bound to be influenced by
•Underlying theme
•Characteristics of the location
•Setting and the product and
•The nature of the outstanding activity of the area
54. The engenderment of marketable tourist product in a given
region is determined by decision centers internal and
external(foreign)
Resorts are established in locations with unique features
The size of the resort is bound to be influenced by
The underlying theme
Characteristics of the location setting and the product
Nature of the outstanding activity of the area
Resort should be tailored in a circuit of an activity
55. Societal and behavioral attitudes change in course of time making once
flourishing resorts hardly sought after
Problematical issue is the revitalization of winningly appealing old places
Accessibility to the destination
For a successful launching and take off of project understanding resources
and analyses of generating markets are required to determine a range of
products
Ancillary demands helps in extending the tourist stays should be
considered as an integral component
The market share secured is influenced and determined by
attractions available and
the comparative advantage over contending resorts
in terms of accessibility and price levels
56. With this info the conceptual planning phase is
purposed to be structured around the
following
The projects intents and objects
The resources to be developed
The equipments to be created
The social and environmental implications
The measures proposed to redress the adverse
impacts
The govt role in the form of financial aid or other
57. The stepping in of state funding rests on
factors like
Existence of general political policy of aid for
development
Capacity of the regions or locations for
enterprise
The fact that specialized investors are able to
generate competition between the prospective
host communities
58. Whatever the funding project is the
developer need to keep in view several
things determined by
natural perspective
State of appurtenances
The economic conditions during the different
manufacturings
There is possibility of exceeding thresholds
by means of added expenditure i.e adding an
attraction delicate natural landscape or
countryside may opt for hosting a larger
tourist population
59. The most crucial pressure is seasonality
dimension of a product
The facility available during off peak season
results in a demanding problem of adaptation
as the services required by the customer may
venture economic loses due to low demand
Having recourse to the image aspect, an
important instrumentation of commercial
communication, the resort env ought to
adapt itself to the market segment with a
touch of creativity
60. Unduly customer image is inappropriate and
ineffective too
An over abridged image is also risky
Problem arises when complex groups with
varied tastes due to urban diversification
seeks for a richer image
The capital gained in the form of a promising
image and exquisite standing during a season
may by no means prove to be adequate
enough to ensure favorable income during
one more spell of the year
61. To avoid overlapping and vagueness in image
coining, the management and promotion
should be left with tourist offices
Activity relating to the field of information is
challenging, since it collects
all the direct info from target market using an
appropriate add strategy and
continual feed back of customers opinion through
surveys
All the info should be precise and exact
The reliability acquired is the key indicator of the
service quality of the targeted market
62. The basic economy of tourist resort revolves
around two approaches
Economic benefit through multiplier effect
Direct-tourist spending
Indirect-expenditure on purchases by tourism
related business
Induced-Purchase by employees of tourism
business
Long term induced indirect benefits to the
community
63. a) Identification of tourist resources
For the identification of a tourist development in a
site two plans are in usage
The inference drawn from current practices
Likeliness with analogous sites
An examination of site’s resources primarily relates
to the following
Tourist attractions
Climatic conditions
Infrastructure and facilities
Land reserves
Labour availability
64. Apart from the above features qualitative
elements are also important they are
Urban or rural quality,
Quality traits of architecture and landscape
Cultural traditions
Social and economic conditions
Local residents
Attitude towards tourism etc
65. B)development planning
Choice of facilities to be incorporated in the
resort
The values to be preserved are aggregated
in a plan of explicit long and short term
measures
This may relate to natural and built heritage,
the cultural values and the grandeur and self
respect of the host.
66. Well defined development plan is expected
to be relevant to
The radical access equipment
The public utilities
The guest facilities
Entertainment, shopping and cultural facilities
Housing for employees and residents
Information and training the host population
marketing
67. C)Financing the project
Once the minutest details are worked out the next aspect is
financing
The funding of critical equipment especially with the returns
prolonging over a long period of time
is mainly encountered with two problems
The function of imported capital
The function of public funds
The people making sacrifice in terms of tax payments should
undoubtedly be benefitted the most from concerned project.
The public funding agencies would be keen on the reinvestment
of the gains in public facilities associated with augmenting a
major business or in furtherance of a development programmes
68. d)Image ,awareness and details
The promotion of resorts image has to be
coordinated by means of an uninterrupted, steady
and determined effort of public relations and use
of media.
Word of mouth Communication propogated by
contented customers, employees and host
population
Internal communication within the community can
help mobilize all residents to welcome tourists
69. Public services should be geared up
Monitoring of tourist without any disturbance or
toning down the undue expenses is also
essential to get a proper feedback about their
experience of the product
Suggest and facilitate appropriate remedial
measures besides the timely up gradation of the
product