Chapter 17 destination marketing

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Destination Marketing

Concepts Related to Chapter 17

Tourism Tourism - a stay of one or more nights away from home for

holidays, visitors to friends or relatives, business conferences or any other purpose except such things as boarding education or semi-permanent employment (British Tourist Authority)

“Tourism comprises the activities of persons traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes.” (World Tourism Organization)

Trips taken that are 50 miles or more (one-way) away from home (U.S.) or 25 miles+ (Canada)

Definition of a tourist: The text is in Bulgarian language and says: "The tourist is a man who always chooses the most difficult way to go somewhere he has no reason to go (business to do)".

Tourism – A Global Business

Do you know…

Which country is the top destination (largest tourist arrivals) last year?

Which country received the largest amount of tourist receipts/payment last year?

Which country’s residents are the top spenders in tourism?

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International Tourist Arrivals 2013(Top 10 Tourism Destinations)

Source: Data as collected by UNWTO, June 2014

International Tourist Arrivals

RankTotal

(Million)% Change

12/11% Change

13/121 France 83.0 1.8 ..

2 United States 66.7 6.3 4.7

3 Spain 57.5 2.3 5.6

4 China 57.7 0.3 -3.5

5 Italy 46.4 0.5 2.9

6 Turkey 35.7 3.0 5.9

7 Germany 30.4 7.3 3.7

8 United Kingdom 29.3 -0.1 6.4

9 Russian Federation 25.7 13.5 10.2

10 Thailand 22.4 16.2 18.8

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International Tourism Receipts 2013(Top 10 Tourism Destinations)

Source: Data as collected by UNWTO, June 2014

International Tourist Receipts

Rank Total (Million)% Change

12/11% Change

13/121 United States 126.2 11.7 10.62 Spain 56.3 14.0 3.93 France 53.6 16.2 1.34 China 50.0 5.8 1.45 Macao (China) 43.7 38.3 18.16 Italy 41.2 10.9 3.17 Thailand 33.8 12.1 23.18 Germany 38.1 8.2 4.59 United Kingdom 36.2 24.6 13.2

10 Hong Kong (China)

33.1 8.1 17.7

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International Tourism Top Spenders 2013(Tourism Source Markets)

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International Tourism Expenditure

RankTotal (US$

billion)% Change

12/11% Change

13/121 China 102.0 37.3 23.8

2 United States 83.5 6.7 3.3

3 Germany 81.3 2.5 2.3

4 Russian Federation 42.8 36.5 28.9

5 United Kingdom 51.3 2.1 3.5

6 France 39.1 -5.8 4.9

7 Canada 35.0 6.2 3.2

8 Australian 28.0 2.1 8.8

9 Italy 26.4 -0.3 -1.0

10 Brazil 22.2 4.6 12.9

Source: Data as collected by UNWTO, June 2014

UNWTO 2020 Visionhttp://dtxtq4w60xqpw.cloudfront.net/sites/all/files/docpdf/unwtohighlights12enlr_1.pdf

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WTO 2020 Vision 1.6 billion tourist arrivals worldwide Top tourist receiving/generating regions

Europe Asia and the Pacific The Americas Africa, Middle East

Fast-growing region/countries: Eastern Europe, China, India

By 2020, travel and tourism will be responsible for one in 10 jobs worldwide (World Travel and Tourism Council)

The World in 6 Pictures

This is only in China/Japan

This is only in Maldives

This is only in India

This is only in Mexico

This is only in Texas

This is only in Thailand

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The Tourism Destination Destinations are places with some form of

actual or perceived boundary Physical boundaries Political boundaries Market-created boundaries (e.g. South Pacific tour –

Australia and New Zealand)

Macrodestinations - the United States contains thousands of microdestinations, including regions, states, cities, towns, and even visitor destinations within a town

What are the benefits and problems associated with tourism to the destination?Benefits?Problems? Negative impacts?

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Benefits of Tourism to Destinations

Direct employment Support industries and professions Multiplier effect (ehhhh?)

Int’l tourism as an export/import (check the next slide) Adds $ to one economy, deducts from another

= we desire International visitors

Output multiplier effect (check the slide after next) When new $ is re-spent in local economy Leakage = $ that leaves the local economy

Source of state and local taxes (hotel room taxes 12-15%, air ticket taxes, restaurant taxes, etc.)

Stimulates exports of place-made products (15-20% expenditure on gifts, clothing, and souvenirs)

Tourism Exports and Imports

U.S. commodity export U.S. tourism export

USA Japan USA Japan

• In 2011, international traveler spent $153 billion in the U.S., and travel spending abroad by Americans totaled $110 billion. The result: $43 billion trade surplus

Commodity flow

Payment flow

Tourist flow

Payment flow

Leakage

TourismSpending

Multiplier Effect

Potential Negatives of Tourism

Economic over-dependence = lack of diversity

Social-cultural impact Increases local cost of living (police, housing, sewage, etc.)

Social Carrying Capacity Demonstration effect; Loss of Culture and Traditional jobs; Loss of

authenticity (decline in tradition); Best jobs go to foreigners; Infrastructure and superstructure developed for tourists only; Commercialization and materialism; Crime and moral character change (sex tourism); Loss or change of Language

Environment impact: it can hurt the resources that attract! Air Pollution; Noise Pollution; Crowding; Vegetation/Wildlife

harm; Historic site deterioration

Tourist Destination – Sustainable Development

If you think your beach is crowded…

How about the U.S. as a destination?

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What do you know about the U.S. tourism?

Your perception of the U.S. as a destination?

What are the top 10 international markets to the U.S. tourism industry?

Travel/tourism ranks No. 1 among all U.S. industry exports. Travel is among the top 10 industries in 48 states and D.C. in terms

of employment. The average overseas travelers spends $4,300 when visiting the

U.S. and stays more than 17 nights Top 5 fastest-growing markets to the U.S. by 2016 (16*/11): China

(274%), Brazil (135%), Russia (131%), Australia (94%), and Argentina (70%)

http://www.ustravel.org/sites/default/files/page/2009/09/USTravelAnswerSheet_June2012.pdf

Destination Marketing Association International (DMAI)http://www.youtube.com/watch?v=f0dR3n1aW3s

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Top International Markets to the U.S. (Arrival)

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Rank Country Arrival (2012) Arrival (2013) % Change

1 Canada 22,700,000 23,390,000 3%

2 Mexico 14,510,000 14,340,000 1%

3 UK 3,760,000 3,840,000 2%

4 Japan 3,700,000 3,730,000 1%

5 Brazil 1,790,000 2,060,000 15%

6 Germany 1,880,000 1,920,000 2%

7 China 1,470,000 1,810,000 23%

8 France 1,460,000 1,500,000 3%

9 South Korea 1,250,000 1,360,000 9%

10 Australia 1,120,000 1,210,000 7%

Source: U.S. Dept. of Commerce, Office of Travel and Tourism Industrieshttp://travel.trade.gov/pdf/2013-Top-10-Markets.pdf

Rank Country Spending (2012) Spending(2013) % Change

1 Canada 25.47 Billion 27.0 Billion 6%

2 Japan 16.51 Billion 18.0 Billion 9%

3 UK 12.69 Billion 13.7 Billion 8%

4 Mexico 10.00 Billion 10.5 Billion 5%

5 Brazil 9.29 Billion 10.5 Billion 13%

6 China 8.75 Billion 9.8 Billion 12%

7 Germany 6.88 Billion 7.5 Billion 9%

8 Australia 5.45 Billion 6.1 Billion 12%

9 France 5.32Billion 5.9 Billion 11%

10 India 4.91 Billion 5.6 Billion 14%

Top International Markets to the U.S. (Spending)

Source: U.S. Dept. of Commerce, Office of Travel and Tourism Industrieshttp://travel.trade.gov/pdf/2013-Top-10-Markets.pdf

Managing the U.S. Tourism Marketing

National tourist organizations (NTOs) US Travel Association http://www.ustravel.org/OTTI http://tinet.ita.doc.gov/Corporation for Travel Promotion/Brand USA

http://www.youtube.com/watch?v=0c56qzrRznU&feature=player_embedded http://www.thebrandusa.com/ http://www.youtube.com/watch?v=bcfbdiiEQDM

Destination Marketing Organizations (DMOs)Public, quasi-public, nonprofit, or privateState, local government, CVBs, agencies

http://www.columbiacvb.com/ https://www.youtube.com/watch?v=LeToRBl6YF0&feature=c4-overview-vl&list=PLmLB1EGAMRVm8TWEgCl0yhpgEwUHhwdd-

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Destination AttractivenessRelate to the best travel experience of your own, what components should be combined to make a destination attractive?

Destination AttractivenessNatural Beauty and climate

Cultural and social characteristics

Accessibility of the region

Attitude toward tourists

Infrastructure of the region

Price levels

Shopping and commercial facilities

Sport, recreation, and educational facilities

Segmenting Tourism Markets

Agritourism http://www.youtube.com/watch?v=iUK6PCDb-ZI Space tourism http://www.youtube.com/watch?v=LOkqR4CK7Qc Volunteer vacationing http://www.youtube.com/watch?v=KxW0Y-

blw84 Medical tourism http://www.youtube.com/watch?v=oYVUPNFzhS8 Many others…

Education tourism Religious tourism Culinary/food tourism Dark tourism Shopping tourism

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Attractions / Events Natural vs. Man-made attractions Casinos as attractions Cruise ships, special railroads such as the Orient Express

Dining, games, gambling, theatre, musicals, participatory murder mysteries, seminars, dances, etc.

Events as a marketing tool for a destination London Olympics 2012 http://www.youtube.com/watch?v=z6uc4A2-cc0

Classification of Visitor Segments

Most commonly usedGroup Inclusive Tour (GIT) Independent Traveler (IT) Business vs. leisure travelerVisiting Friends/Relatives (VFR)

Plog’s psychographic categorization

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Personality Types

2.5% 4%

16% 16%61%

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Plog’s categorization of destinations

Conclusion: Today’s Major Points

Tourism’s impact on destination World tourism – top markets U.S. tourism and destination marketing Segments of tourism market Classification of visitor segments

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