DEGREE: MA TOURISM, HOSPITALITY AND EVENT MANAGEMENT

MODULE: HOSPITALITY OPERATIONS MANAGEMENT

ASSIGNMENT TITLE: DEVELOPING HERITAGE TOURISM IN

MEDITERRANEAN REGION

ASSIGNMENT TYPE: INDIVIDUAL REPORT

STUDENT NAME:
STUDENT ID:

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Learner Declaration

I certify that the work submitted for this assignment is my own and research sources are
fully acknowledged.

Student signature: Date:

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 Executive Summary

The present report has shed light on cultural heritage tourism development in the
Mediterranean Region as Spain. A brief introduction has been added to set the scenario for
the report. Furthermore, an in-depth overview of the Spanish market environment has been
given. A critical assessment of the internal and external environment has been added. A
critical assessment of the market competition as well as target audience strategies have
been detailed. A detailed description of synergies that can be developed within and outside
the country has been added. Special safety measures required to be adopted in the cultural
heritage tourism in Spain have been attached. Finally, a conclusion has been added based
on overall report findings and discussions.

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 Table of Contents

Introduction............................................................................................................................. 5

Critical Review of the Market Environment of Spain................................................................5

Critical Assessment of Internal and External Analysis..............................................................7

Critical Assessment of the Competition & Target Audience Strategies....................................8

Synergy Development Within and Outside Spain...................................................................11

Safety Measures Regarding Covid, Other Diseases, Digitalization and Sustainability............12

Conclusion.............................................................................................................................. 13

References..............................................................................................................................15

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Introduction

Cultural heritage tourism development is a major perspective for economic growth of a

country as it helps in flowing foreign currencies among different countries. People are often
likely to visit places with rich cultural and historical backgrounds to develop the experiences
of the stories people represent based on the past. Therefore, cultural, natural and historic
resources are identified in cultural heritage tourism. A country assesses and protects these
resources to increase tourist attraction which is necessary to expand the tourism industry as
well as economic development. In this report Spain is selected as the country in the
Mediterranean Region which is enriched by several heritage sites across the country.

Critical Review of the Market Environment of Spain

The cultural heritage tourism market of Spain is massive and associated with several
historical locations. For instance, Madrid, Barcelona, Bilbao, Valladolid, Valencia and
Zaragoza are the most famous tourist attractions in the country. According to the reports,
the overall international tourist arrival in Spain is 81,868,500 which includes an International
Tourism Inbound Receipts $68,114.1 Million (investinspain.org, 2022). The average receipts
in the tourism sector of Spain is $832 as the industry contributed a total of $78,464 Million
to the country’s GDP and estimated at 5.4%. Overall the tourism market of Spain
contributed 958,100 jobs across the country with a 5% share in employment
(investinspain.org, 2022).

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 Figure 1: Tourism Industry of Spain

(Source: investinspain.org, 2022)

Spain has massive visitors to the country however, the record was broken in 2017 as more
than 83 Million visitors arrived in Spain. However, the country is the second most-visited
country in the Mediterranean Region after France (Dans and González, 2019). The tourism
market of Spain is associated with rich natural and cultural factors and attractions.
Moreover, the country also has some exceptional infrastructure including high-quality
hotels and transportation services. These are the main perspectives for remaining one of the
most visited places on the planet in cultural heritage tourism. The tourism market of Spain is
a crucial factor in the Spanish economy due to the higher employment rate of 2.3 Million as
well as effective public policies (Pardo Abad, 2020). Similarly, the market is associated with
public-private collaboration which is a major perspective for maintaining cultural orientation
in the country and helps in developing sustainable and high-quality tourism development in
the country.

The government of Spain manages the costs associated within the tourism market based on
the spending of the tourists. According to the reports, around 90 Billion Euros are spent in
the Spanish tourism market to manage internal expenses of the industry (Parga-Dans et al.

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2020). Cultural heritage sites such as the Canary Islands, Andalusia, Valencia Community,
Catalonia, the Balearic Islands and Madrid are the most visited cultural heritage sites in
Spain (Huete-Alcocer et al. 2019). The tourism market of Spain placed first according to the
World Economic Forum (WEF) and was awarded as the most competitive country across 140
economies in the world in terms of cultural heritage tourism (weforum.org, 2017).

The tourism market of Spain has added Gross Values to the Spanish economy as industries
such as hospitality and food services are also related. Overall the industry has grown by 24%
after the Covid-19 pandemic and reached over 70 Million Euros in the present year (Fusté-
Forné, 2020). Similarly, the tourism market of Spain is associated with a variety of different
historical influences and mostly based on the culture from Ancient Rome. Moreover, the
cultural heritage sites of Spain are associated with different Greco-Roman parts of the world
which is a major perspective for tourists to visit the country.

Some of the major cultural heritage locations associated within the tourism market are
Prado Museum, Reina Sofia National Art Museum, and Royal Palace in Madrid, Casa Batllo
House, Montjuic Park, Catalonia National Art Museum, Barcelona, Alhambra, Granada and
Aqueduct in Segovia (Medina-Viruel et al. 2019). Similarly, the tourism market of Spain is
associated with barrier-free cities which is a major perspective for tourists to move freely in
the country. Therefore, transportation services are also emphasized in Spain which is a
major aspect associated with the tourism market.

Critical Assessment of Internal and External Analysis

Internal Analysis by SWOT

Strengths: One of the main strengths of the Spanish heritage tourism industry is attractive
tourist destinations and it is mostly popular among the EU regions. Rich culture, warm
climate and beautiful beaches are the major perspectives to attract foreign visitors to the
country. For instance, the city of Seville is the most visited place due to its natural beauty
(Castillo-Manzano et al. 2021). Similarly, Spain has bolstered its transportation,
telecommunications and food services as a high-speed transportation system helped in
tourism development in Spain (pestleanalysis.com, 2022).

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Weaknesses: The Spanish economy is one of the weakest economies in the EU as the
industry is associated with high-level debts. The amount was increased due to the effects of
Covid as most of the businesses are liable in the country (Jurado-Rivas and Sánchez-Rivero,
2019). Imbalanced employment rate in Spain is also a major problem as the tourism industry
hires and cuts out employees regularly which is not preferable (pestleanalysis.com, 2022).

Opportunities: The tourism industry of Spain is associated with long coast lines as well as
ocean breezes and sunshine. Therefore, the Spanish government is intended to apply
renewable energy processes in the tourism market which is a major opportunity for the
country (Sánchez-Martín et al. 2020). Different tidal power stations, solar plants and
windmills are being developed across several areas in Spain which could be beneficial from
an environmental perspective (pestleanalysis.com, 2022).

Threats: Tourism is good in Spain however, the growing concerns regarding Catalonia could
affect the growth. It is the north eastern province of Spain and associated with a highly
rated metropolis named as Barcelona. There are cultural differences in Catalonia and other
states in Spain and are associated with different cultures and languages (Gomez-Oliva et al.
2019). Whenever Catalonia would break down from Spain it would develop massive impacts
on the Spanish economy (pestleanalysis.com, 2022).

External Analysis by PESTLE

Political: Spain is associated with good political stability as the country is presently growing
as it developed an increase in interests in the tourism industry. It developed more foreign
interests to the country therefore, the present government stability in Spain is favourable to
foreign investors (González-Delgado et al. 2020).

Economic: The main perspective in economic perspective is the Value Added policy of Spain
is due regarding any services in the tourism sector that includes different hotels as well as
cultural events. Governmental taxes from the hotel were increased from 8% to 10% in 2013
however, it has not affected the tourism industry in the country (globaldata.com, 2022).

Social: Local tourism authorities are associated within the tourist spots in Spain that support
health issues as well as fire and escape issues. Spain developed a Social Welfare Policy in

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terms of protecting the people from illness, unemployment, maternity and retirement
(globaldata.com, 2022).

Technological: The obsolescence rate in the Spanish tourism industry is relatively low as it
attracts tourists from global locations depending upon the State-of-the-art technologies
(Larraz and García-Gómez, 2020). It is also dependable upon the public sectors and
governmental approaches are provided to invest in R&D in the tourism sector.

Legal: Spain has strong competition laws such as the Second Competition Act, 2013 and
proper employment laws which supported industrial growth of the tourism sector. Health
and Safety Act is also associated within the industry which is used as a regulatory framework
for companies operating in the sector (globaldata.com, 2022).

Environmental: Spain is supported by the Iberian Peninsula from Portugal and Atlantic
Ocean as well as the Mediterranean Sea which helped to develop fabulous coastlines to
attract tourists. Therefore, the unique and advantageous geographic location of Spain
influenced the tourism sector (globaldata.com, 2022).

Critical Assessment of the Competition & Target Audience Strategies

According to the World Economic Forum’s Travel and Tourism Competitiveness Report, the
Spanish tourism industry is vastly associated with major domestic and international
competition (Pérez-Gálvez et al. 2021). The country ranked first regarding competitiveness
of the industry as Spain has the strength to attract more tourists in the world compared
with major competitors such as France. Similarly, competition in the tourism sector is
increasing every day in the world as based on the report Spain has contributed more than
10% to its domestic GDP from the tourism sector (Pardo Abad, 2019). The employment rate
in the tourism industry is also vast which is expected to rise by 50% in the upcoming
decades due to massive visitors to the country.

Due to richness and natural resources in Spain it attracts foreign investors to improve
accommodations and other areas including protection of the cultural heritage sites.
However, the service infrastructure varies upon different accommodations and overall 1.4
Billion people visited Spain in 2018 (Martinez Pino, 2018). It can be said as a major

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competitive factor compared with other regions such as Europe as well as Eurasia. For
instance, the main competitive factors developed from locations such as Cordoba, Toledo,
Ibiza, Las Medulas, Alhambra, Santiago de Compostela, Cuenca and others (Ruiz Pulpon and
Canizares Ruiz, 2020). It involves several activities or people could learn the local culture and
history by visiting the spots. Outdoor activities such as trekking are placed at caves in Spain
for instance Cave of Altamira is one of the major locations for attracting tourists (Sánchez-
Martín et al. 2020). Moreover, Spain shares a total of 49 cultural heritage sites across the
country which is similar to France and greater than other countries in the Mediterranean
Region.

Figure 2: Competitive Framework of the Spanish Tourism Sector

(Source: Roigé et al. 2021)

Arguably, Spain has several cultural heritage sites which underlines the strengths of the
tourism sector. However, a massive number of visitors could be harmful for the heritage
sites especially for the natural heritage sites. From the perspective of the Otus Theory of
Demand and Supply it can be said that competitiveness in the Coastal regions in Spain has

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increased especially in the Mediterranean Coast (Palenberg and Paulson, 2020). It is
associated with the macroeconomic factors in Spain such as free market conditions,
production of goods and services in the tourism sector (Roigé et al. 2021). Therefore, the
inhabitants' revenues are varied from location to location in Spain as performance of
different heritage sites are different which led to the main scenario of competitive edge in
Spain.

The main target market of the tourism industry of Spain is consumers who are interested in
cultural sites, history and specific outdoor activities. For instance, the vibrant cities of
Madrid and Barcelona are based on renowned arts as well as culture, fantastic foods,
museums, shopping options and sceneries (Aznar and Hoefnagels, 2019). Similarly, Seville is
another city to experience cultural perspectives in Spain and associated from flamingo
dancing to several architectural heritages. Therefore, the tourists are motivated from these
perspectives and intended to know the local culture properly and also intended to study
more about the heritage destinations (Pérez Guilarte and Lois González, 2018). Moreover,
the target audience of the Spanish tourism industry is based on five major criteria such as
Purposeful Cultural Tourist, Sightseeing Cultural Tourist, Incidental Cultural Tourist, Casual
Cultural Tourist and Serendipitous Cultural Tourist. The target audience could be defined as
follows;

Target Audience Segmentation Description

in Spanish Cultural Heritage
Tourism

Purposeful Cultural Tourists Visit cultural heritage locations to develop a deep

cultural experience

Sightseeing Cultural Tourists Visit the sites for experiencing a destination in less
deep

Incidental Cultural Tourists Do not travel for cultural reasons however, participate
in several cultural events and activities with shallow

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 experiences

Casual Cultural Tourists Weak motive in cultural heritage tourism and develop
shallow experience

Serendipitous Cultural Tourists Do not have intention for cultural travel however take
part in different cultural activities to develop deep
experience

Table 1: Target Audience Segmentation for Spanish Cultural Heritage Tourism

(Source: Self-Created)

Synergy Development Within and Outside Spain

The major components of the tourism industry of Spain could be represented as Natural
Resources, Cultural Heritage Sites, Infrastructure, Transportation and Hospitality Resources.
Moreover, these components are useful for developing synergies in both domestic and
international markets for promoting the cultural heritage tourism of Spain (Vidal-González
and Sánchez, 2019). From the perspective of Maslow’s Hierarchy of Needs theory, it can be
said tourists are likely to stay in safe and healthy accommodations as well as likely to get
healthy and fresh foods (Hopper, 2020). Therefore, several sub sectors could be developed
in the Spanish cultural heritage tourism which would be beneficial for industrial growth and
development.

A strategic approach towards building synergies with the Hotel Industry and the Agriculture
and Food Industry would be beneficial for business development. The hotel industry and
tourist-catering services would play a major role in the economic development of Spain and
would contribute towards economic growth of Spain (Somoza-Medina and Monteserín-
Abella, 2021). Development of co-operational relations with the sub sectors would be
beneficial for increasing Proactiveness and collaborative strategies with the hotels and
restaurants in the cultural heritage locations (Dancausa Millán et al. 2019). For instance,

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Cordoba offers a variety of gastronomic foods and traditional foods based on local culture
which can create new market opportunities for promoting the tourism industry.

It could be stated as a geographical identity of the location and visitors would develop more
positive experiences. The synergies in the domestic market would be distinctive and would
support the tourism initiatives in Spain (Elche et al. 2018). Local beliefs, cultures, behaviors
and traditions would be the major part of experience and would be suitable for further
recommendations. Similarly, the hotel industry could provide better experiences with eye-
catching views to the historical locations and synergies are required to be made with them
to promote the cultural heritage tourism in Spain (Sánchez-Martín et al. 2020). It will help in
developing more intangible values to the cultural heritage tourism industry in Spain and will
make memories of sociocultural appreciation of the local culture.

Outside synergy could be developed from tying up with the Aviation industries as it would
be suitable for promoting the cultural heritage tourism in Spain. Building synergies with
companies such as Iberia, Air Europa, Vueling, LEVEL and more would be suitable to
promote the cultural heritage tourism in the country (González-Delgado et al. 2020). It can
drive socioeconomic benefits to the industry and will increase cooperation from the
international market. Foreign operations could be conducted properly in this stage which
will also contribute to the GDP of Spain (Jurado-Rivas and Sánchez-Rivero, 2019).
Accelerating aviation innovation in the country would be useful for driving critical
efficiencies associated with cultural heritage tourism. Moreover, it can enhance capability of
the sector and would also create new job opportunities to facilitate more international
trades and tourism.

Safety Measures Regarding Covid, Other Diseases, Digitalization and Sustainability

The Covid-19 pandemic has hit the major EU countries and countries such as Italy and Spain
are the major victims of the pandemic. Therefore, travel and movement restrictions were
ordered in the country which affected the cultural heritage tourism sector of Spain which is
a key factor that contributed to the downfall of the Spanish economy (Huete-Alcocer et al.
2019). Several international governments have put a ban on traveling to Catalonia and
applied a 14 days quarantine stay during their return from Catalonia. Wearing masks before

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entering Spain and sanitization are the main requirements to be taken for the cultural
heritage tourism industry in Spain. Some of the crucial safety measures taken in the Spanish
Cultural Heritage Tourism Industry are as follows;

Tourist Safety

● Spain faced terror attacks recently as the national terrorism alert is high and official
warnings must be taken seriously

● Take care of personal belongings such as bag snitching, pickpocketing are major
crimes in Barcelona

● Travel insurance must be covered during taking part in Pamplona

● Earthquakes, volcanic eruptions, bushfires and storms may be experienced as

monitoring the local media news is required (travel.state.gov, 2022)

Health

● The Covid-19 pandemic has remained a major risk in several parts of Spain

● Tourists have to call 112 for Covid safety guidelines and reporting symptoms
(travel.state.gov, 2022)

Local Laws and Regulations

● Tourists have to carry personal ID for police to confirm identity and no photography
is allowed in military sites

● Dual nationality is banned in Spain and tourists must show one passport
(travel.state.gov, 2022)

Travel

● Tourists would not require a VISA for travel purposes and only required to travel to
other purposes and staying longer than 90 days

● Currently the Covid-19 restrictions have been removed

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 ● Proof of double vaccination is not required

● Other measures except for masks and hand sanitizers of Covid have been removed

● Face masks are required during traveling into public transport (travel.state.gov,
2022)

Digitalization

● Overall 29% of the travel reservations are made through mobile phones and
customers need to use these devices for several purposes such as QR Scanning

● Internet of Things (IoT) connects regular activities in the Spanish tourism sector and
customer experience is improved through behavior interests in Spain

● Big data analytics is used for managing customer data as Data Protection Act, 2018
has been applied

● Social media usages are unlimited however, using social media for marketing
purposes may involve additional charges (travel.state.gov, 2022)

● Artificial Intelligence is used for facilitating personalized ads and services to enhance
tourist experience

Sustainability

● Socioeconomic growth of the cultural heritage tourism sector must be focused on

profitability of the sector and accelerating digital growth of the sector

● Natural as well as cultural values must be preserved and cultural and natural
heritages are priority (travel.state.gov, 2022)

● Participation as well as governance mechanisms are associated within stated as well

as the competent administrators in all levels

● The tourism industry take full responsibilities regarding the social, environmental
and economic impacts developed by the tourists

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Conclusion

In conclusion it can be said that cultural heritage tourism of Spain is dependable upon
several factors and also have consequences on the sector. A detailed view of the market is
necessary to be generated in this stage which would be useful for understanding the
potential development areas in the tourism department. Internal and external analyses are
required to be conducted for managing threats and development of new opportunities.
Implication of theoretical perspectives related to hospitality management would be
necessary to manage the sector as well as the needs of the tourists. A brief analysis of the
market competition as well as the target audience strategies are also required to manage
the sector. Development of synergies would be helpful for expanding the businesses as
proper safety measures are required to be adopted to encourage tourists to visit different
cultural heritages in Spain.

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