This document discusses special considerations for planning and developing resorts. It covers identifying stakeholders and determining market feasibility, obtaining financing, forms of resort ownership, social and economic impacts, absorbing newcomers, and measures to reduce congestion. Competencies include outlining stakeholder perspectives, describing the market feasibility process, explaining financing hurdles, and identifying nine ownership forms.

1. Chapter 3
Special Considerations in
Planning and Development
World of Resorts: From Development to Management
Third Edition
(424TXT or 424CIN)
© 2010, Educational Institute

2. Competencies for
Special Considerations in
Planning and Development
1. Identify the various stakeholders in a proposed resort
development and outline how their perspectives generally
differ.
2. Describe the process and tools used to determine the
market feasibility of a proposed resort development.
3. Explain the elements involved and hurdles the developer
must typically overcome in order to obtain financing for a
resort development.
4. Identify nine forms of resort ownership and explain
reasons for the growing use of the interval/fractional
ownership model.
© 2010, Educational Institute (continued) 2

3. Competencies for
Special Considerations in
Planning and Development
(continued)
1. Describe common social impacts of resort development,
how they can be measured, and how negative impacts can
be mitigated or better controlled.
2. Describe various economic impacts on a community of a
resort development, including (when possible) how to
measure them.
3. Describe important physical and environmental impacts of
a resort development on its location.
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4. Nine VALS-Classified Market Segments
1. Survivors
2. Sustainers
3. Belongers
4. Emulators
5. Achievers
6. I-am-me’s
7. Experientials
8. Societally conscious
9. Integrated
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5. Criteria in Lenders’ Evaluation of
a Resort Loan
1. Capital requirement of the overall resort development
2. Potential of the project as a solid business enterprise
3. Income and cash flow projections
4. Expertise of the operator
5. Owner’s ability to repay
6. Security for the loan
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6. Nine Forms of Resort Ownership
1. Individual ownership
2. Interval/fractional ownership
3. General partnership
4. Limited partnership
5. Joint venture
6. Corporate form
7. One or more entities
8. Management agreement
9. Equity participation
© 2010, Educational Institute 6

7. Cottington’s Conclusions About the
Social Impacts of Resort Development
• Loss of self-respect among husbands of working
women.
• Jealousy of some husbands whose wives had to
dress up to serve hotel guests.
• Increased anxiety and illness among females who
were unaccustomed to and unprepared for the
increased pressures and responsibilities of
working for the first time.
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8. Smith’s Conclusions About the Social
Impacts of Resort Development
• Increased family income visibly raised the
standard of living in the community.
• New skills and salaries gave the employed women
a sense of increased self-worth and
accomplishment.
• Expanded social contacts with fellow employees
and tourists produced and expanded awareness of
the outside world among the women workers.
© 2010, Educational Institute (continued) 8

9. Smith’s Conclusions About the Social
Impacts of Resort Development
(continued)
• Family roles appeared to be changing for the
better as husbands assumed more of the household
and child-rearing chores.
• Husbands were beginning to respect their wives as
competent individuals able to hold good jobs.
• Increased income and an expanded world view
might result in more opportunity for higher
education for the workers’ children.
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10. Factors Determining Absorption of
Newcomers into a Resort Community
• How well newcomers fit into the cultural fabric of
the community
• Urban/rural character and size of the community
• Degree of unemployment in the area
• Added burden on existing social services imposed
by newcomers
• New demands for housing and supporting
infrastructure
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11. Reasons the Resort Industry Leaks
Its Revenues
• Resorts are heavy consumers of imports
• Resorts are often financed outside of the host
community
• Resort jobs attract a large number of newcomers
and seasonal workers who are not permanent
residents
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12. Ways to Increase Economic
Benefits in a Resort Community
• Add new attractions/services to stimulate
guest/visitor spending
• Develop full-service lodging over limited-service
forms
• Target market segments with higher propensity to
spend
• Outsource locally
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13. Four Kinds of Impacts of Resort
Development
1. Physical/chemical/biological elements of land,
water, and air
2. Ecological system, including terrestrial and
aquatic species, flora, fauna, and fragile life forms
3. Archeological resources, including ancient burial
sites and recovery of artifacts
4. Visual environment in terms of landscape or
townscape
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14. Measures Taken to Relieve Local/
Visitor Congestion in Resort
Destinations
• Commissioning of carrying capacity studies for
determining public policy on limits to growth
• Restricting the length of visits in high-demand, sensitive
natural attractions to reduce the impact of human footprint
• Allocation of quotas to distributors for specific attractions
to ensure fairness of access; imposition of sellers’ fees;
pre-ticketing measures
• Imposition of user fees on popular attractions to abate
demand and use funds to help pay for wear and tear
caused by human traffic
© 2010, Educational Institute (continued) 14

15. Measures Taken to Relieve Local/
Visitor Congestion in Resort
Destinations
(continued)
• Stricter zoning and requirement of master plans for
resorts, including projections of future growth and
expansion needs
• Special traffic provision for major public facilities,
such as convention centers, exhibition halls, museums,
arenas for sporting events, parks, etc.
• Active traffic management in the destination with the
use of technology and special procedures to deal with
temporary congestion during peak traffic periods
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