Destination Management

MBA (T&H) Semester 3, 2006

Unit I
NITHM,
Telecom Nagar, Gachibowli
Faculty: Dr. E. Sivanagi Reddy

Introduction
1
 Prescribed Text
N. Leiper (2004), Tourism Management (3rd
ed.), Pearson Education Australia. (available
in the VU City Flinders Bookshop).

Support Text
D. Weaver & L. Lawton (2006), Tourism
Management (3rd ed.), John Wiley & Sons
Australia, Ltd

2
 Reference Text

Indicators of Sustainable Development for
Tourism Destinations – A Guide Book
Madrid, 2004.

3
Other Useful Resources

General References

Academic and Trade Journals

Reports and Conference
Proceedings

Tourism web sites - Library
info link to tourism resources
and web sites

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What is this subject
all about?

1. Tourism

2. Destination

3. Management
5
 “Tourism”
 Multidisciplinary/interdisciplinary
approach to studying tourism.

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 Definition of the
Tourist Industry
The tourist industry consists of all
those firms, organisations and
facilities which are intended to serve
the specific needs and wants of
tourists. (Leiper 1979)

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 Components of the
Tourist Industry
 Transportation
 Attractions
 Accommodation
 Food and beverage
 Travel agencies
 Tour companies

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 Is Tourism an
Industry?
 The term industry implies the production of
similar products or services for sale
 Tourism involves so many components such as
food, travel, accommodation but these are not
solely tourism
 Tourism is really a collection of industries

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Tourism as a
“System”

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Leiper’s Basic Whole
Tourism System

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 Leiper’s Geographical
Approach
TR3
TDR2
TDR2
TR4
TR2

TR1
TGR TDR1

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 A Case Study: characteristics of elements of
the Eco-Tourism System

Generating region: Demand for Eco – Tourism

• Is purposeful
• Is poorly documented
• Desires first hand experience/ contact with
nature/ culture
• Has the motive to study, admire and enjoy
nature/ culture
• Can be segmented in many ways.
• Comes from those who are more likely to
be well educated have a higher in come
and be slightly older than the average
tourist . 13
 Destination Region
Destination for Eco-Tourism

Are relatively undisturbed areas.

Have attractions of scenery, flora & Fauna
and indigenous culture.

Allow eco-tourism to deliver economic and
conservative benefits to the local people.

Develop eco-tourism with a view to
conserving natural / cultural systems.

Apply integrated planning and management
techniques.

Encourage local ownership of facilities.
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 Transit Zone

Transport for eco-tourism should be of
low impact to the environment in terms
of noise, emission, congestion, fuel
consumption and waste.

Encourage the use of locality owned
transport companies.

Promote the conservation ethic.

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The Tourist

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 Tourist Categories

 Range
 Purpose
 Duration
 Number in the party

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 Other Considerations

 Three types of tourism:

 Domestic
 Inbound
 Outbound

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 Technical Definitions
Tourist
 A person visiting a location at least
40km from his usual place of residence
for a period of at least 24 hours and not
exceeding 12 months. (Australian
Definition)

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 More Technical
Definitions (WTO)
 International Tourist
 A temporary visitor to the country staying at least 24 hours
and not more than 12 months whose purpose could be
classed as leisure, business, family or meeting with the
following exceptions:
 Border workers, nomads and refugees

 Transit passengers

 Members of the armed forces

 Diplomats and consular representatives

 Immigrants

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 Major Characteristics
 Tourism is a labour intensive industry.
 It is located mainly in the private sector, and it
consists of a predominance of small
businesses companies.
 Compared with many other industries, there
are relatively few barriers to entry.
 It is a decentralised industry, capable of
diversifying regional economies.

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The scope of this
subject is global.

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 Scope

 Regional
 State
 National
 International

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 The Economic Significance
of Tourism (WTTC)

Tourism is one of the worlds largest and fastest
growing ‘industries’ (equal to agriculture or mining)

Total world arrivals reached 763 million in 2004
(1950 - 25m; 1970 - 166m; 1990 - 441m)

Tourism contributed 10.6% of the world’s economic
activity and 12% of total exports

2005 - tourism employed 222 million people
worldwide (8.3%) of total employment

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Inbound Tourism to Australia: Export Earner

ngs
r ni
Ea lia
o t
r st r a 
p
Ex or Au
f
 gs
n in
r
a lia
t E
r stra
po
Ex or Au
f

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 2. “Destination”
“Destination is where the most
significant and dramatic elements of
Tourism occur and where the inbound
tourism industry located. It is at the
destination where the attractions and
all the other support facilities needed
by the visitor are found.”

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Common features of tourist
destinations
Destinations are amalgams
Destinations are cultural
appraisals.
Destinations are inseparable, i.e.
tourism is consumed where it is
produced.

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 Amalgams – the 4 A’s
Attractions – Variety (man made / natural)
Amenities – Accommodation, food & Beverages,
entertainment, retailing and other services.
Access – Local transport, transport terminals.
Ancillary Services, in the form of local organizations.

Complementarity of destination components is to be

properly controlled by the destination managers.

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 Cultural Appraisals
Visitors expect the destinations to be
attractive worth the time and money
they spend during the visit.
As the taste and fashion change, so they
are reflected in the tourist changed for
fearsome places to attractive
landscapes, which later became popular
tourist destinations.

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 Inseparability
Tourism is consumed where it is
produced.
Destination is Perishable - if it not used
it is lost
The availability of beds, restaurant seats
and attraction tickets can not be stored
in the off season for sale in the peak
season.
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 Multiple Use

Destination amenities are shared

by the residents, workers and
tourist throughout the year, but at
same time, or all times the year
tourist use there amenities.

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 Variety of Destinations
A continent like Europe
A Country like India
A State like Andhra Pradesh
A City like Hyderabad
A Pilgrim centre like Tirupathi
A historical site like Nagarjuna Sagar
A Monument like Taj Mahal
And many more like beaches, waterfalls, valleys,
mountains, hills stations, resorts, theme parks etc.

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Adventure Spots

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Agro Farms

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Farm Lands

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Antarctic Region(South Pole)

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Arctic Region (North Pole)

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Beaches

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Business / Convention centre

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City like Singapore

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Venues of Cultural Events

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Spas

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Health/ Medical/Wellness centres

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 Dark Areas

Culloden Battlefield 50
Ground Zero
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Teracotta Warriors at Xian 52
Areas of Natural attraction

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Enclaves

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Tribal Zones

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Factories

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Industry

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Places known for Food Tourism

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Golf Course

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Green Valleys

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Heritage Centres

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Historical Monuments

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Vacation sites

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Islands

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Jungle

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Leisure Spots

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Houses of Literarians

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Marinas

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Unique Landscapes

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Pilgrimage Centers

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Rural Areas

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Planetarium

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Sports Tourism

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Spiritual Centers

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Wild Life Sanctuaries

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Vineries

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 Swot Analysis
Assesses Tourism Potential & Helps
Managers to decide
what have we got ?
what do we want to do with it ?
how do we measure success?
A Swot analysis gives a crescent picture
of the destinations assets & Short
comings and reveal opportunities and
challenges it faces.
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Guidelines for a Swot Analysis

Strength:
o Destinations assets – Local &
Complimentary attractions,
o Natural & Cultural attractions
o Infrastructure and Support services.

Community Support (Participation).

Workforce: availability, Skill Levels.

Management Capacity: Skill levels,
Funding available.
98
 Opportunities

Economic opportunities for business,
employment product and Market
opportunities, Unique, authentic
products, Product Market Match, niche
Markets.

Community Enhancement: Socio –
Cultural benefits.

Conservation: Tourism’s Contribution to
natural and Cultural heritage.
99
 Weaknesses

Lack of tourist appeal: Lack tourism
attraction, Poor accessibility, Lack of
infrastructure.


No vision: Uncertainties in direction, Lack
of understanding or Cohesion in
destination community.

Prepondness: Lack of plans, training
needs, funds, alternative priorities.
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 Treats and Constraints

Environmental impacts: Disturbance of loss
of habitat, increased use of resources waste.

Cultural degradation: Daily lives, Customs
and Practices, disrupted.

Poor quality: Tourist dissatisfaction, Lack
of Standards.

External treats: Regulations, Travel
Security, Environmental impacts.

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
A Swot analysis thus helps to clarify the
risks and opportunities and can assist in
discussion of which indicators are most
likely to be of use to address the
sustainability of the destination and its
desired tourism.

It helps to have a long term vision for a
destination.

102
 Who
manages
tourism?

103
 Who Manages Tourism?

 Is tourism managed by persons employed

in organisations such as travel agencies,
tour operators, theme parks, airlines, hotels,
national and regional tourism agencies….?
 Is “tourism” wholly or partially
industrialised?

104
 DESTINATION STAKEHOLDERS

Any one or any group who believe that they are
involved in tourism or affected should be considered
as a stake older.

all those individuals and groups who have a vested
interest in Tourism at a destination.

Planning and management mechanism draws the
stake holders together and ensuring that the
destinations develops strategically.

The future destinations evolve using the technology
offering authenticity and professionalism in services.

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 Potential stakeholders in Tourism
at local destinations
1. Communities

Local community groups

Native and cultural groups

Traditional leaders

Private sector employees

Property and building owners (living
within or outside)

Tenants

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 2. Public Sector

Municipal Authorities

Regional authorities (e.g planning areas,
conservation authorities, coastal zone, regional
tourism and its key assets)

Other ministries and agencies in areas affecting
tourism (e.g transport, natural resources,
environment, culture, infrastructure, planning,
health etc)

Agencies with an interest in the planning or
maintenance of specific attractions (e.g parks,
protected areas, museums, market places,
cultural sites and events)
107
 3. Private Sector

Tour operators and travel agents.

Accommodation and other service
providers.

Transport and other services.

Guides, interpreters and outfitters.

Suppliers to the industry

Tourism and trade organisations.

Business development organisations.
108
 4. NGOs

Environment groups (in the destination and out side
but with an interest).

Conservation groups (e.g. wetlands, native species,
parks, cultural heritage).

Other interest groups (e.g hunters, fishers, sports and
adventure associations).

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 5. Tourists


Organizations representing tourists interests as the
point(s) of origin.


International tourism bodies.

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THANK YOU

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