Chapter 1 The Destination Mix

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The Tourism System 7 th edition Kendall Hunt Publishing Company Chapter 1 The Destination Mix Robert C Mill and Alastair M Morrison © 2013 1 © 2013 1 Part 1. Destination: Planning, Developing, and Controlling Tourism An identification of the procedures that destination areas follow to set policies, plan, control, develop, and cater to tourism, with an emphasis on sustainable tourism development. Part 2. Marketing: Strategy, Planning, Promotion, and Distribution An examination of the process by which destination areas and tourism businesses market services and facilities to potential customers with an emphasis on the effective use of promotion and distribution channels. Part 3. Demand: The Factors Influencing the Market A consumer behavior approach to market demand emphasizing the internal and external influences on travelers including needs, motivation, and perception; the alternatives to travel; the marketing by tourism organizations; and the process by which travelers make buying decisions. Part 4. Travel: The Characteristics of Travel A description and analysis of major travel segments, travel flows, and modes of transportation used. PART 1 DESTINATION Chapter 1 Destination Mix © 2013 Photos: Copyright - VisitScotland/Scottish Viewpoint

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PowerPoint slides for The Tourism System 7th ed. by Robert C. Mill and Alastair M. Morrison, published by Kendall/Hunt, 2012.

Transcript of Chapter 1 The Destination Mix

Page 1: Chapter 1 The Destination Mix

The Tourism System 7th edition

Kendall Hunt Publishing Company

Chapter 1

The Destination Mix

Robert C Mill and Alastair M Morrison © 2013 1

© 2013

1

Part 1. Destination: Planning, Developing, and Controlling

Tourism An identification of the procedures that destination areas follow to set policies,

plan, control, develop, and cater to tourism, with an emphasis on sustainable

tourism development.

Part 2. Marketing:

Strategy, Planning, Promotion, and Distribution

An examination of the process by which destination areas and tourism businesses market services and facilities to potential

customers with an emphasis on the effective use of promotion and distribution channels.

Part 3. Demand: The Factors Influencing the Market

A consumer behavior approach to market demand emphasizing the internal and

external influences on travelers including needs, motivation, and perception; the alternatives to travel; the marketing by tourism organizations; and the process

by which travelers make buying decisions.

Part 4. Travel: The Characteristics of Travel

A description and analysis of major travel

segments, travel flows, and modes of transportation used.

PART 1 DESTINATION

Chapter 1 Destination Mix

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The Destination Mix

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Contents Explores the destination mix concept and its

component elements. Explains the relationships among the destination mix

elements. Identifies the strengths and deficiencies of a tourism

destination area.

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Purpose Students will be able to identify the strengths and weaknesses of a tourism destination.

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Learning Objective 1: Interdependencies in the Destination Mix Explain the interdependencies between the five destination mix elements.

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The Destination Mix The destination mix consists of five elements: Attractions Facilities Infrastructure Transportation Hospitality resources

Attractions are the central aspect of tourism. They generate demand for all other elements. All elements must be present for a destination to be successful.

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Learning Objective 2: Destination Mix Element Structure Identify the important elements of attractions, facilities, infrastructure, transportation, and hospitality required for a tourism destination.

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Attractions Draw people to them Can be developed almost anywhere Primary attractiveness of a destination

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Attractions: Scope Primary Destination #1 motivation for tourist visits Aims at satisfying visitors over a span of

several days Secondary or Stopover Destination Attracts visitors for a shorter span of days Interesting stop on way to primary destination

Destinations can be both primary and secondary at the same time, for different segments of the market

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Attractions : Ownership Government: Owns 85% of U.S. outdoor recreation lands Primary motivation not always tourism

Non-profit: Preserve attractions, can mean great things for

tourism May back out if the venture becomes too

commercialized Private: For-profit Short-run profit maximization may be detrimental

to the long-term success of the destination

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Attractions : Permanency Site attractions Long duration Cannot be moved

Event attractions Shorter duration Can be moved Cost less to develop than site attractions

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Attractions: Drawing Power From how far away can the attraction draw visitors? Designations: Local State/Province/Territory Regional National International

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Attractions: Natural Resources Landscape and scenery: What is the human imprint? Is it detrimental?

Visitor’s viewpoint: natural resources are free of charge

Variety can be more attractive than sheer impressiveness: Varied landscape (Great Britain) may draw more

visitors that a single great feature (the Alps) cannot

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Attractions: Climate Though climate is a big seller, the destination must be

accessible as well The destination should offer something that visitors

cannot get at home Visitors like to be kept informed of the bad weather

conditions that they have left Recreational facilities: The destination should have a variety of options, not

just a single option

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Attractions : Culture Today’s way of life is tomorrow’s culture To be attractive, the destination must advertise its

culture as radically different from the visitor’s home culture

To U.S. tourists, historical culture is extremely appealing: The Amish (“Pennsylvania Dutch”) Western ranch country (“Cowboys”) Colonial Williamsburg

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Attractions: Historical Resources War: Battlefields, monuments (“dark tourism”)

Religion: Churches, shrines, pilgrimages

Habitation: Houses of famous historical or cultural figures, or

dwellings that replicate historical living conditions Film-induced tourism: Lord of the Rings in NZ Government: Seats of government, museums

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Attractions : Ethnicity Abroad: First-generation travelers:

Stay with friends, family. Spend less Non-first-generation travelers:

Often wish to visit the “home country” Spend more on creature comforts

At home: Ethnic festivals Attractions of the home state:

Friends, family, sentimental value

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Attractions: Accessibility Some destinations owe popularity to high accessibility

(Brighton in UK vis-à-vis London) Measured in: Time Cost Frequency Comfort

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Development and Design of Attractions Services and facilities: Tend to grow up around the attraction If an area is already developed, it may affect the

placement of a new attraction Attraction clustering: Visitors desire to do more in one place Destination more likely to satisfy more people Destinations arrived at by boat, plane or train are

more likely to develop clusters of attractions

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Development and Design of Events Reasons for staging events: Celebrate holidays, seasons, historic events Make money Provide cultural or educational experiences Generate community pride

Objectives must be set and agreed upon: Ranking helps to resolve subsequent conflicts Helps identify the most important objectives

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Facilities Tend to support rather than induce growth If the level of services is lacking, the destination will

not be considered by the visitor Facilities can be the attraction: Example: a resort hotel that draws visitors and

satisfies their needs Burj Al Arab Hotel in Dubai

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Facilities : Lodging Sleeping accommodations: Anywhere from a five-star hotel to a campground Almost half of U.S. visitors stay at a friends’ or

relatives’ places Mode of transportation affects lodging:

Wagons – inns a day apart Automobiles – the appearance of the motel Planes, trains etc. – clusters of hotels around

stations and airports

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Facilities : Food and Beverages Much of tourist spending is on food and beverages Menus may be designed to incorporate local foods to

lower costs and increase visitor interest Note: food may also be an attraction! Example: seafood

at Jimbaran Beach in Bali

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Facilities : Support Industries Catch-all category which includes duty-free shops,

laundries, guides, festival areas, recreational facilites Tend to be small businesses To help develop support industries: Enforce zoning and operating regulations Control ownership of facilities by leasing them to

individual entrepreneurs

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Infrastructure Water Power Communication

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Sewerage/drainage Health care Security

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Transportation Modes: how can you get there? Road, sea, air, rail

Ways: how do you travel there? Roadways, seaways, airways, railways Highway and motorway systems

Terminals Coordination between air, rail and buses essential

Technology Intelligent Transportation Systems (ITS) help

coordinate ground transportation

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Hospitality Resources The “general feeling of welcome” a visitor experiences Hospitality training: Attitude toward self Attitude toward others Attitude toward subject matter

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Teaching Specific Resources Training people to adopt certain behaviors may affect

their attitudes Special sessions where employees act out hospitable

behaviors may help them on the job

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Community Awareness Programs Benefits of tourism need to be made relevant to

members of the community Community needs to be made comfortable with tourism

activities Members of the community need to understand the

visitor

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Authenticity and Cultural Commodification Authenticity is a Western concept associated with past

and contrasting with modernity When local culture is turned into an attraction for

tourists, it becomes a commodity Cultural commodification can lead to a loss of

authenticity “Keeping the old ways” may mean lack of community

economic development But tourism can make people more proud of their culture

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Learning Objective 3: Destination Competitiveness Identify the crucial elements that make a destination competitive.

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Competitive Destinations: Definition “What makes a tourism destination truly competitive

is its ability to increase tourism expenditure, to increasingly attract visitors while providing them with satisfying, memorable experiences, and to do so in a profitable way, while enhancing the well-being of destination residents and preserving the natural capital of the destination for future generations” (Ritchie and Crouch)

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FutureBrand: Country Brand Index (CBI) Attractions Authenticity Culture Ethos Geography Infrastructure Governance Economy

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Destination Competiveness Models (Dwyer et al.): Destination management Nature-based resources Heritage resources Quality service Efficient public services Tourism shopping Government commitment Location and access E-business Nightlife Visa requirements Amusement/theme parks

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Destination Competitiveness Models (Pine & Gilmore): Active participation Passive participation Absorption Immersion

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Destination Competitiveness Models (Ontario): Product: Distinctive core attractions Quality and critical mass Satisfaction and value Accessibility Accommodation base

Performance: Visitation Occupancy and yield Critical acclaim

Futurity: Destination marketing Product renewal Managing within carrying capacities

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World Economic Forum Travel & Tourism Competitiveness Index (TTCI) (replaced Competitiveness Monitor) Sub-index A: T&T regulatory framework Sub-index B: T&T business environment and

infrastructure Sub-index C: T&T human, cultural, and natural

resources

See: http://gcr.weforum.org/ttci2011/

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Destination Competitiveness Models (Ritchie & Crouch) TOURISM COMPETITIVENESS = f Destination Appeal Destination Management Destination Organization Destination Information Destination Efficiency

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Destination Competitiveness Attributes (Crouch) Physiography and climate Mix of activities Culture and history Tourism superstructure Safety and security Cost/value Accessibility Special events Awareness/image

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Destination Management A measure of how effective the marketing and management

efforts are to maximize the positive attributes of the destination while minimizing the negatives or barriers.

Destination Organization A function of various internal organizational actions and the

creation of strategic alliances aimed at improving the destination’s attractiveness to tourists.

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Determinants of destination attractiveness (Crouch & Ritchie) Natural features Climate Culture and social characteristics General infrastructure Basic services infrastructure Tourism superstructure Access and transportation facilities Attitudes about tourists Cost/price levels Economic and social ties Uniqueness

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Deterrents to visitation of a destination (Crouch & Ritchie) Security and safety (political instability; high crime

rate) Health and medical concerns (poor sanitation; lack of

reliable medical services) Laws and regulations (visa requirements; currency

controls) Cultural distance (inability to communicate;

restrictions on behavior)

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Benchmarking (to gain competitive advantage)

Performance measurement (complaints; satisfaction levels; repeat visitor percentage, etc.)

Destination benchmarking: Internal (against prior performance) External (against similar destinations) Generic (against accepted international standards)

New Ideas: To improve visitor satisfaction that will result in a

competitive advantage

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THE TOURISM SYSTEM

© 2013

Chapter Summary Highlights

Chapter 1

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To be a successful tourist destination, there must be a blend of certain elements. Attractions are the most important of these elements as they are needed to bring people in. Destinations must also have adequate facilities, infrastructure, and transportation to make

visitors comfortable and safe. Hospitality on the part of local people helps ensure a satisfied customer who will want to

return. Competitiveness of a tourism destination is a function of the market segments targeted and the

product mix at the destination (destination mix).