Meeting Business Challenges in Tourism Destination Management


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Meeting Business Challenges in Tourism Destination Management

  1. 1. Invited Presentation to Universidad de las Américas Puebla, Mexico Fifth International Congress "Reto Negocios“ April 3-5, 2003 Dr. Brent Ritchie Chair, World Tourism Education & Research Centre, University of Calgary and Chair, World Tourism Organization, Tourism Education Council 1
  2. 2. Meeting Business Challenges in PART I Tourism Destination Management and PART II Global Tourism Education 2
  3. 3. PART I Meeting Strategic Challenges in Destination Management: Conceptual and Empirical Perspectives 3
  4. 4. First of all… <ul><li>What is Good Destination Management? </li></ul>4
  5. 5. One Measure is… <ul><li>1) Destination Competitiveness </li></ul><ul><ul><li>the competitiveness of one destination relative to other destinations </li></ul></ul>“ Puebla is but one Destination...” 5
  6. 6. <ul><li>Comparative Advantage </li></ul><ul><ul><li>resource endowments </li></ul></ul><ul><li>Competitive Advantage </li></ul><ul><ul><li>resource deployment </li></ul></ul>The Elements of Destination Competitiveness INPUT MEASURES 6
  7. 7. Another Measure is Good… <ul><li>2) Destination Performance </li></ul>7
  8. 8. How do we measure Destination Performance? <ul><li>Destination Performance </li></ul><ul><ul><li>economic measures </li></ul></ul><ul><ul><li>sustainability measures </li></ul></ul><ul><ul><li>visitor satisfaction measures </li></ul></ul><ul><ul><li>quality of management action measures </li></ul></ul>OUTPUT MEASURES 8
  9. 9. A Third Measure is… <ul><li>3) Successful Goal Achievement </li></ul><ul><ul><li>with respect to goals set by Destination Stakeholders </li></ul></ul>9
  10. 10. An Overall Model of Destination Management (DM) <ul><li>Where DM is designed to achieve: </li></ul><ul><ul><li>destination competitiveness </li></ul></ul><ul><ul><li>destination performance </li></ul></ul><ul><ul><li>destination success </li></ul></ul><ul><ul><li>destination sustainability </li></ul></ul>10
  11. 11. COMPETITIVE (MICRO) ENVIRONMENT GLOBAL (MACRO) ENVIRONMENT DCSModel-colour(v12).ppt – © RITCHIE & CROUCH, FEB 2003 Competitive Advantages (resource deployment) * Audit & inventory * Maintenance * Growth and development * Efficiency * Effectiveness Comparative Advantages (resource endowments) * Human resources * Physical resources * Knowledge resources * Capital resources * Infrastructure and tourism superstructure * Historical and cultural resources * Size of economy Crisis Management DESTINATION COMPETITIVENESS & SUSTAINABILITY 11 DESTINATION POLICY, PLANNING & DEVELOPMENT Philosophy/ Values Vision Audit Positioning/ Branding System Definition Development Monitoring & Evaluation Competitive/ Collaborative Analysis Awareness/Image QUALIFYING & AMPLIFYING DETERMINANTS Location Interdependencies Safety/Security Cost/Value Carrying Capacity Hospitality SUPPORTING FACTORS & RESOURCES Infrastructure Accessibility Facilitating Resources Enterprise Political Will DESTINATION MANAGEMENT Resource Stewardship Marketing Organization Information/ Research Visitor Management Human Resource Development Finance & Venture Capital Quality of Service/ Experience Entertainment CORE RESOURCES & ATTRACTORS Physiography and Climate Culture & History Market Ties Mix of Activities Special Events Superstructure
  12. 12. <ul><li>Appearing in June from </li></ul><ul><li>CABI Publishing (UK): </li></ul><ul><li>“ The Competitive Destination: </li></ul><ul><li>A Sustainable Tourism Perspective” </li></ul><ul><li>by </li></ul><ul><li>J.R. Brent RITCHIE (University of Calgary, Canada) </li></ul><ul><li>and </li></ul><ul><li>Geoffrey I. CROUCH (LaTrobe University, Australia) </li></ul>12
  13. 13. NOW, Let’s ask ourselves… 13
  14. 14. What are some of the STRATEGIC ISSUES in <ul><li>Enhancing Destination Competitiveness ? </li></ul>14
  15. 15. What are some of the STRATEGIC ISSUES in <ul><li>Improving Destination Performance ? </li></ul>15
  16. 16. What are some of the STRATEGIC ISSUES in <ul><li>Achieving Destination Success ? </li></ul>16
  17. 17. What are some of the STRATEGIC ISSUES in <ul><li>Enhancing Destination Sustainability ? </li></ul>17
  18. 18. FIRST… Must Provide Effective Research <ul><li>Designed to provide knowledge and understanding of new trends in tourism demand & competitive behaviour </li></ul><ul><li>Must also understand: </li></ul><ul><ul><li>the competition </li></ul></ul><ul><ul><li>what residents want </li></ul></ul><ul><ul><li>how to enhance performance </li></ul></ul>“ Understanding the tourist is critical” – but it is not everything! 18
  19. 19. ALSO, Must obtain an Accurate Measurement of the Impact of Tourism <ul><li>especially at the local level </li></ul><ul><li>but also at the regional & national level </li></ul><ul><li>NOTE: the emergence of the Tourism Satellite Account (TSA) </li></ul>19
  20. 20. A Shared Destination Vision <ul><li>there must be a consensus among stakeholders as to what kind of tourism destination residents really want </li></ul>20
  21. 21. <ul><li>A cooperative relationship & synergy among Destination Stakeholders is essential </li></ul>Shared, Effective Action 21
  22. 22. Every Destination Needs… <ul><li>A Destination Management Organization (DMO) that provides effective leadership and coordination of efforts to achieve the destination vision </li></ul><ul><li>This may be: </li></ul><ul><ul><li>a National Tourism Organization </li></ul></ul><ul><ul><li>a City Convention & Visitor Bureau </li></ul></ul>22
  23. 23. Must Not Overlook… <ul><li>Insightful policy formulation, strategic planning, and development </li></ul>23
  24. 24. A Destination Won’t Function without… <ul><li>Public/private cooperation/partnership at the destination level to ensure timely & appropriate development </li></ul>24
  25. 25. Visitation is stimulated by… <ul><li>Effective promotion/marketing to create destination awareness, knowledge, and choice </li></ul>25
  26. 26. Often overlooked is a strong program of… <ul><li>Human resources development and management </li></ul><ul><li>“ This is where Tourism Education Fits in” </li></ul>26
  27. 27. <ul><li>Destinations must understand that they don’t just provide tourism products or services… </li></ul><ul><li>“ They provide tourism/visitor experiences” </li></ul>“ the total travel experience” 27 Residence Taxi to Airport Airport Services Air Travel Car Rental Meals Hotel Theme Park Visit with Relatives Trip to Local Zoo Restaurant Meal Taxi to Airport Air Travel Taxi back Home
  28. 28. <ul><li>Each destination has a need for a critical mass of destination experiences to provide a competitive destination </li></ul><ul><li>“ What EXPERIENCES does Puebla offer?” </li></ul>28
  29. 29. <ul><li>Must recognize the ongoing need for innovative experience development and management to build, operate, and maintain the critical mass of appealing experiences </li></ul><ul><li>“ Who is responsible for developing new experiences in Puebla?” </li></ul>29
  30. 30. <ul><li>Need for implementation of new quality practices as the destination is developed </li></ul><ul><li>“ Try to get better, day by day” </li></ul>30
  31. 31. <ul><li>Must not forget the requirement for effective integration and use of current and new information and communication technologies </li></ul>31
  32. 32. <ul><li>Lately, more and more destinations are recognizing the need for environmental management; the sustainability, and stewardship of natural resources </li></ul><ul><li>“ Don’t spend your natural capital” </li></ul><ul><li>“ Care for the natural capital that you have” </li></ul>32
  33. 33. <ul><li>And also, must keep in mind the Socio-cultural management; sustainability, stewardship of socio-cultural resources </li></ul><ul><li>“ Sustainability is a multi-pillar concept” </li></ul><ul><li>“ Puebla contains a wealth of cultural resources” </li></ul>33
  34. 34. <ul><li>Crisis management – the emerging side of stewardship that has been forced upon destinations </li></ul><ul><li>Crisis management – need to maintain security/safety of destination visitors </li></ul><ul><li>“ 9/11 2001” in New York </li></ul><ul><li>and </li></ul><ul><li>More recent events in Bali, Indonesia </li></ul><ul><li>are more extremes of the need for security </li></ul>34
  35. 35. Must not forget! <ul><li>the maintenance of competitive cost/value to and within the destination </li></ul><ul><li>“ Just take a look at the Travel Section of your week-end newspaper to see the importance of price” </li></ul>35
  36. 36. Too many of us totally neglect… <ul><li>HOSPITALITY – the need to make visitors feel welcome and comfortable </li></ul>“ Smile, you’re a Tourist Attraction!” 36
  37. 37. <ul><li>And finally, don’t forget… if you do not provide a competitive destination… </li></ul><ul><li>SOMEBODY ELSE WILL!! </li></ul>37
  38. 38. PART II Meeting Challenges in Global Tourism Education The Role & Activities of the World Tourism Organization’s Tourism Education Council (T Ed Council) 38
  39. 39. <ul><li>Composition of the T Ed Council: </li></ul><ul><ul><li>100 members worldwide </li></ul></ul><ul><ul><li>leading programs of Tourism in the world </li></ul></ul>
  40. 40. What Does the T Ed Council Do? <ul><li>Seeks to Enhance the quality </li></ul><ul><li>of </li></ul><ul><li>Tourism Education </li></ul><ul><li>via </li></ul><ul><li>TedQual Accreditation Process </li></ul>
  41. 41. What Does the T Ed Council Do? <ul><li>Coordinates Research by leading scholars world wide </li></ul><ul><ul><ul><li>Personnel Needs of Tourism </li></ul></ul></ul><ul><ul><ul><li>Destination Performance Index </li></ul></ul></ul><ul><ul><ul><li>Destination Image Study </li></ul></ul></ul>
  42. 42. What Does the T Ed Council Do? <ul><li>Meets 3 times per year in Madrid </li></ul><ul><li>Coordinates Activities via e-mail </li></ul>
  43. 43. Also, Don’t Forget… <ul><li>Appearing in June from </li></ul><ul><li>CABI Publishing (UK): </li></ul><ul><li>“ The Competitive Destination: </li></ul><ul><li>A Sustainable Tourism Perspective” </li></ul><ul><li>by </li></ul><ul><li>J.R. Brent RITCHIE (University of Calgary, Canada) </li></ul><ul><li>and </li></ul><ul><li>Geoffrey I. CROUCH (LaTrobe University, Australia) </li></ul>43
  44. 44. Other Titles by J.R. Brent Ritchie TOURISM: Principles, Practices, Philosophies 9 th Edition Charles R. Goeldner J.R. Brent Ritchie Publisher: John Wiley & Sons, NY (2003) ISBN: 0-471-40061-0 44
  45. 45. Other Titles by J.R. Brent Ritchie Travel, Tourism, and Hospitality Research: A Handbook for Managers and Researchers J.R. Brent Ritchie Charles R. Goeldner Publisher: John Wiley & Sons, NY (1994) ISBN: 0-471-58248-4 45
  46. 46. <ul><li>Questions?! </li></ul>Comments?!