8 the Planning of Tourism

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The planning oftourism



Learning objectives

Understand why a tourism destination should have adevelopment plan.

Identify the components of a tourism development plan. Realize the importance of basing a plan on objective data

and identify how that data can be collected.

Define and correctly use the following terms: allocentrics,midcentrics, psychocentrics, product life cycle curve,

integrated planning, secondary research, primaryresearch, representative sample.



Why plan?The impacts of a lack of planning on a destination have been documented in the

literature. They include the following:

1. Physical impacts

damage or permanent alteration of the physical environment

damage or permanent alteration of historical/cultural landmarks and resources

overcrowding and congestion

pollution

traffic problems

2. Human impacts

less accessibility to services and tourist attractions for local residents thatresult in local resentment

dislike of tourists on the part of local residents

loss of cultural identity

lack of education of tourism employees in skills and hospitality

lack of awareness of the benefits of tourism to the destination area



Why plan?

3. Organizational impacts

fragmented approach to the marketing and development of tourism

lack of cooperation among individual operators

inadequate representation of tourism's interests

lack of support from local public authorities failure to act upon important issues, problems, and opportunities of

common interest to the community

4. Other impacts

inadequate signs

lack of sufficient attractions and events

high seasonality and short lengths of stay poor or deteriorating quality of facilities and services

poor or inadequate travel information services



Consequences of unplanned

growth

Stanley Plog offered a widely used model of what can happen to adestination without adequate plans for the future. Plog believes thatdestination areas have a life cycle as they go through a process of appealing to different segments of the market.

Allocentrics As a new destination is discovered it appeals to what Plog calls the

allocentrics. Allocentrics are self-confident, frequent travelers who prefer to fly. They also prefer destinations that are uncrowded and where theycan seek out experiences that are novel. They are very interested inmeeting people and exploring new cultures. This is similar to innovators,people who are the first to buy a new product just because it is new.

Africa would be an example of a destination appealing to the allocentric. As word of the destination gets out, more tourists are attracted. However,

these early adopters are not as pioneering as the allocentrics. Called thenear-allocentrics, they remain interested in the culture but demand moreservices. The Orient might be in this category.



Psychographic positions of destinations

Resource: Stanley Plog, Why destination areas rise and fall in popularity, Cornell Hotel

and Restaurant Administration Quarterly; Jun 2001; 42, 3; ABI/INFORM Global, pg. 13




growth

Midcentrics

As more and more people visit the area, the allocentrics move on to discover new destinations. Those who do come exhibit midcentric characteristics. Moreand more of the familiar is desired. At the same time, however, there are moremidcentrics in the population than near-allocentrics or allocentrics. Most of

Europe falls into this category. At this point the destination has gone through several stages of what in

marketing is called the "product life cycle curve". It has been introduced intothe marketplace, has established a place for itself, and has gone through aperiod of growth.

Psychocentrics

Left unchecked, destination areas can begin to appeal to psychocentrics.

Psychocentrics are unsure of themselves and have relatively lowsocioeconomic status. They do not travel much, preferring to go by car whenthey do and seek the familiar in the destinations they choose. They prefer tours and types of restaurants that they are accustomed to at home.

• Miami Beach in the United States is an example of a destination appealingto this group.




growth

As more development occurs the destination begins to resemble the areathe tourist lives in. At the same time the size of the market declines. Therate and extent of development has turned off even the midcentrics. Thedestination is into the maturity stage of the product life cycle. Businessesand destinations can tell when this is occurring.

In the growth stage of the life cycle, sales rise at an increasing rate eachyear, 5 per cent one year, 7 per cent the next, 8 per cent the next, etc. Inthe maturity stage of the life cycle, sales are increasing but at adecreasing rate, 5 per cent one year, 4 per cent the next, 2 per cent thenext, etc.

Without drastic action, the destination moves into decline. Overdeveloped,it appeals to the relatively small number of pure psychocentrics.

• Coney Island in the US might be in this category. This is an exampleof a destination that has gone through all of the stages. Onceappealing to sophisticated visitors, its former glory days are gone.

Such changes are probably inevitable if development is allowed to occur without any thought as to the future.



Psychographic positions of destinations (2001)

Resource: Stanley Plog, Why destination areas rise and fall in popularity, Cornell Hotel

and Restaurant Administration Quarterly; Jun 2001; 42, 3; ABI/INFORM Global, pg. 13



What is planning?

Role of planning

Much tourism development has occurred without a comprehensivetourism plan.

We have seen in the previous chapter that, left to chance, tourism canhave negative economic, social, cultural and environmental effects onthe destination.

Additionally, investing in tourism without a plan to guide one's actionscan be disastrous for private companies and public agencies.

The answer is an integrated plan.



Integrated planning

Importance

First, tourism is interdependent. Facilities cannot be viable unless there areattractions to pull tourists into the region. Yet we have also seen that, just as thedemand for lodging can create supply (hotel rooms), so the opposite is true.Having hotel rooms for tourists to stay in is necessary before visitors will come.

An integrated planning approach will help ensure that the type of developmentthat results will be one suited to the community. The needs and wishes of thecommunity should be taken into account as part of the planning process. Theresult will be a type of tourism that is unique to the region (and to the tourist) andone that will tend to be supported by the locals.

As noted earlier, one of the economic benefits of tourism is that it encourages thedevelopment of small family businesses.

When banks or government agencies are approached for funding they will want tosee some evidence that the proposed project will be successful.

The process of planning and the resulting analysis might be the documentationnecessary to obtain such funds.

Certainly it will be impossible to get financing without evidence of a plan.



The Planning Process

Define the system and formulate objectives

Gather data

Analyze and interpret Create the preliminary plan

Approve the plan

Create the final plan

Implement the plan



An Overview of the Tourism

Planning Process

STAGE 1

Define

the

System

In doing so,

ensure that thedefinitions for

the policy

formulation and

destination

planning are

consistent

STAGE 2

Gather

Necessary

Data

Again, much of

the data usedfor policy

formulation may

be helpful for

the planning

process

However,

additional and

much more

detailed data

will be requiredfor the planning

process

STAGE 3

Analyze &

Interpret

Data

In doing so, it is

useful to relatedata to the

specific facilities,

events, activities,

and programs that

impact on the

factors that

determine/influenc

e destination

success

STAGE 4

Create

Preliminary

Plan

The plan should

start to make clear the detailed nature

of the facilities,

events, activities,

and programs that

will deliver the

unique high quality

destination

experience that will

enhance the

competitiveness of the destination

within strategic

market segments

STAGE 5

Approve

the

Plan

It is critical to

ensure thatwhere approval is

required no

relevant

stakeholders are

overlooked

STAGE 6

Create

the

Final Plan

At this stage, the

level of detailbecomes

increasingly

rigorous and

directly related to

the specific

geography,

legislation,

financing, and

timing of the

“real world”

STAGE 7

Implement

the

Plan

This stage

allocatesresponsibility for

development

actions to specific

individuals and

organizations,

defines the exact

timing of these

actions, and

establishes

contingencies for unexpected

occurrences.

This stage also

monitors, follows

up, and evaluates



Components of planning

While the process and the output of tourism plans vary, theydo tend to have certain components.

1. Definition of needs2. Assessment of potential

3. Community support

4. Legal environment

5. Scheduling

6. Experience

7. Measurement

8. Flexibility



Barriers to planning

A number of problems are associated with planning for tourism.

Many people, especially those in free-enterprise economies,are against planning in principle. They feel that tourismplanning is an encroachment on individual businesses.

A second concern is cost. Properly executed plans dependupon extensive research that must be funded. The public sector is usually called upon to fund extensive projects.

A third difficulty relates to the extent of business activitiesassociated with tourism. Because of the many businesses andactivities involved in both the private and the public sector, it isdifficult to get a unified approach to tourism planning.



Importance of data collection

In planning something as important as the development of tourism within a region or destination, it is vital thatdecisions be based on scientific data rather than guessesor hunches.



Types of data collection

Secondary research

• In collecting data we can collect it ourselves or collect it

from previously published sources.

• Primary research is the term used for collecting datafirsthand;

• Secondary research or literature review are the terms used

when identifying data already collected.

• A variety of organizations collect and publish data on

tourism.




Primary research• Although more costly than is secondary research, primary

research enables the planner to collect data specific to the projectat hand. It can take several forms.

• Direct observation. This method consists of observing people todetermine what they like or dislike. It may involve the use of observers at a site or television or photographic recordings. Peoplecommunicate more with nonverbal gestures than with the wordsthey actually speak. This can be picked up by direct observation.This method will tell what people do but will not identify thereasons for the behavior.

• Counting. An accurate count of facility usage can be obtained by

counting the visitors. Gate receipts, turnstile readings, counters onroadways, and the number of parking spaces used can givenumbers of patrons. One limitation is that roads and facilities maybe used by both tourists and locals, and thus it may be difficult toadjust the numbers accordingly. Ideally, counting should be doneon a regular basis to give accurate data.




The most important aspect of conducting surveyresearch is the statement of the problem.

Too often data is collected because it seems "good toknow this" and an attempt to make sense of it comeslater.

The objective of the project, namely, what we needto know, should be carefully outlined first.

Surveys



Review what other researchers have done. If the objectives are similar it may be possible to use or adapt the previous questionnaire.

If a new questionnaire has to be constructed, write down, on indexcards, the information desired. Because the order of asking questionsis often important, putting the questions on separate cards allows easysubstitution of the order .

Think in advance of how the data will be presented in final form. Draw upthe tables the way they will be presented; fill in hypothetical data. Askyourself: "Does this format tell me what I want to know?" The final formatof tables will help decide how questions should be worded.

Begin with exploratory research on a sample group of people. By askingseveral representative people general questions about why they visit anarea, what is important and unimportant to them, it is possible to develop

appropriate categories of items for more widespread data collection later. It is not necessary to interview everyone. Researchers survey a

representative sample of the target market. This might involve surveyingevery tenth person, for example. Another technique is to use randomsamples.

Guidelines for developing a

survey



Guidelines for developing a

survey

A statistics book generally can provide a list of numbers generated randomly bya computer. These numbers indicate the people who should be interviewed(the second, seventh, twenty-third, etc., person to pass the interviewer, for example).

Make sure to take bias into account.

Consider the various forms of surveying such as registration methods (such ashotels do), suggestion boxes, informal surveys by mingling and talking withpeople, or using questionnaires.

Questionnaires may be self-administered, done by telephone, or face-to-faceencounters. Self-administered questionnaires are either given out, filled in andcollected on site, or handed out to be mailed back later.

On-site questionnaires are easy to administer and are inexpensive.Participation rate is usually high. Mail return questionnaires have lower response rates and have higher costs associated with having to providepostage. Using the telephone allow the researcher to cover a wide geographicarea at a relatively low cost. If the tourist had just returned from a satisfying tripthe response rate will probably be good.

Few people will stop for an interview if they are on their way somewhere else;on the other hand, tourists waiting in line may be glad of the opportunity toanswer some questions as a way of helping pass the time.





Tourism as an opportunity for economic development:

• Many government see tourism as a major opportunity for

economic development and a tool for creating a better

community.

• An engine of employment

• Wealth redistribution

• Potential in restoring blighted areas.

• Tourism becomes a potentially attractive replacement

for businesses that have shut down or moved away.

• Many communities have pursued tourism development

either without planning or without considering larger

planning or community economic development

processes.

Tourism Planning and Destination

Development



The Forms of Tourism Planning

Planning is the process of identifyingobjectives and defining and evaluating methods of achieving them.

Comprehensive planning considers economic,environmental, social, and institutional aspects of tourism development.

Many different forms of planning:

Economic development planning

Land use planning

Infrastructure planning (roads, airports, utilities) Social Service planning (education, employment, public

health)

Safety planning



Tourism and Economic

Development

Tourism planning include:

A plan to increase the foreign exchange earnings of a nation by

encouraging the growth of tourism.

A plan to designate specific areas for the development of resorts

A plan to improve local employment through the tourism industry.

Public and Private Planning

Public planning generally involves public resources and objectives,

such as creation of land, construction of highways, and other

infrastructure.

Private sector planning consists of product development, building,

finance, marketing, management and operations etc,.




Development

Tourism Master Planning

Master plan defines a strategic plan that integrates allaspects of tourism, including human resources,environmental impacts, and social and cultural impacts.

The Need for Tourism Planning

The need to have a common vision, direction andcommitment for tourism.

Tourism‟s socio-cultural and environmental impacts, and

the need for a long-term perspective in planning inassessing those impacts.

Destination survival in an increasingly competitive marketand the need to respond to change in the travel market.

Provide investment funds to private sector with a certain

stability.




Development

Tourism Planning Serves as a valuable purpose byaddressing the following issues:

The need to have a common vision, direction andcommitment

Tourism‟s sociocultural and environmental impacts, andthe need for a long-term perspective in assessing thoseimpacts

Resource problems faced by communities that may nothave the political framework or trained labor force to

create a service based industry

Destination survival in an increasingly competitivemarket, and the need to respond to changes in the travelmarket .



Levels of Tourism Planning in

the Public Sector

National Planning

Involves development and administration of nationaltourism policies.

It includes physical planning of major tourist attractions,

regions for tourism development, and transportationlines, creating national standards in areas such as health,

safety, and employment.

Local Planning

Site planning and design of buildings and landscaping

Establishing and enforcing environmental regulations

Providing services and for visitors and residents

Education training and other HR services

Marketing and promotion of local destination

Financing tourism development and tax issues.




the Public Sector

Destination Planning

Refers to planning for a geographical region that possesses sufficient

facilities, attractions, infrastructure, and workforce to attract for

visitors.

Includes, seven villages and three ancient cities

'Tourism Project of South Antalya' Turkey




the Public Sector

It represents an integrated area

Tourism accommodations

Visitor attractions

Residential Communities

Transportation links

'Tourism Project of South Antalya' Turkey



Tourism Master

Planning

www.dpi.hochiminhcity.gov.vn

THANH DA-BINH QUOI ECO-TOURISM &RESIDENTIAL AREA



Actors Involved in the

Planning Process

Key Actors in the Planning Process

Residents of host destination area

Environmental advocacy groups

Tourism-related and non-tourism related businesses

Politicians and other elected officials

Major business interest and lobby groups

Labor unions and other employee representatives

Government officials.



Organizing the Planning and

Development Process

Planning Steps

Defining the Goals and Objectives

Why developing tourism?

What benefits are expected from tourism?

Type of tourism and visitor profiles?

Limits on tourism growth?

Time frame for development?

Gathering Relevant Data

Analyzing the Data

Basic recommendations and parameters on set based on analysis

Preliminary Plan Draft, Review and Revision

Drafted based on analysis

Finalizing the Plan, Implementation and Monitoring



Elements of a Tourism Plan

Demand Analysis - Existing and Intended Visitor Market

Market Analysis

Tourist arrivals and characteristics

Travel patterns and trends (season, changes)

Supply Analysis –

Destination and its attractions

Attractions, accommodations, and facilities

Transportation network, infrastructure, and manpower

Inventory of Existing Attractions

Inventory of Facilities, services and Infrastructure Business and Legal environment



Tourism Impact Analysis

Environmental Impacts Anticipating the impacts of development is one of the most

crucial functions of a tourism plan

Physical environment impacts: Region; climate; existing landuses; project site; soils; flooding; water quality; hazardous

materials and waste. Infrastructure and public facilities: traffic and transportation;

wastewater, water supply; drainage; electrical power,;emergency services.

Socio-cultural Impacts

To what extend is the society dependent upon a moretraditional economy?

How will existing family structures and patterns fit with thepossible employment of family members?

How do residents feel about performing cultural practicesbefore foreigners?




Economic and Financial Analysis

Economic Benefits

Tourism development must be financially feasible for boththe host community government and the private sector.

Analyzing Finances Visitors‟ market segment

Visitors‟ spending patterns

Work force skills and training

Risk and Profitability

Sufficient local sources of capital for the planned projects

Restrictions on foreign ownership or control of land

Wage rates of local population

Availability of managerial-level employees




Action Plan and Recommendations

The „action plan‟ is the culmination

of the planning process and will

vary with the goals of the plan itself.

Synthesize all of the data and

analysis into a viable plan of action

for the various parties involved in

the development.

Includes strategies, guidelines,recommendations, schedules, and

even legislation and other formal

documents.



Factors Affecting Tourism

Planning Expectations and Fears

Tourism planning is a complex activity that involves many

different parties and is subject to a number of pressures and

factors that can influence the planning process.

Main concern is occur when people think that tourism will solve

a range of economic and social problems.

Government planning efforts and private sector concerns

Public skepticism and interest groups

Skepticism of the need of tourism vs. benefits of tourism

Environmental groups‟ pressure to protect the environment

Planners deal with public skepticism and interest group pressure



Study questions

Describe Plog's life cycle of a destination.

What are the stages of the product life cycle curve?

Why is integrated planning important to a destination?

What are the components of an integrated tourism plan?

What are the characteristics of a short-term plan?

What are the characteristics of a long-term plan?

List the barriers to planning.

What are the common forms of primary research? Identify some guidelines to improve survey research.

List the various methods of survey research.



Discussion questions

Discuss why a plan is necessary for the development of tourism.

What are the components of a tourism plan for a destination?Why are they important?

Compare and contrast secondary and primary tourismresearch.

Evaluate the design, usefulness, cost, and administration of thevarious methods of collecting tourism data.

Documents

8 the Planning of Tourism