Marketing Tourism Marketing Tourism DestinationsDestinationsObjectiveObjective: Introducing the meaning, : Introducing the meaning,

applications and approaches in the marketing applications and approaches in the marketing of tourism destinations. of tourism destinations.

Marketing Tourism Marketing Tourism DestinationsDestinations

This chapter is about the marketing role This chapter is about the marketing role of national tourism organizations, boards of national tourism organizations, boards or offices commonly known as NTOs or offices commonly known as NTOs which is used to describe the which is used to describe the organization assigned by the state with organization assigned by the state with responsibility for tourism matters at the responsibility for tourism matters at the national level. national level.

It may be a full ministry or a directorate It may be a full ministry or a directorate of general or a department or board. In of general or a department or board. In NTOs, government support in funding NTOs, government support in funding and official recognition is normal in and official recognition is normal in cases where the NTO is not part of the cases where the NTO is not part of the state. state.

Principal Principal MMarketing arketing RRole of ole of NTOsNTOs

TThe principal functions of NTOs include;he principal functions of NTOs include;

1.1. formulating and developing the tourist formulating and developing the tourist product or products of the destinationproduct or products of the destination

2.2. promoting them in appropriate promoting them in appropriate marketsmarkets

The role of NTO is to create and The role of NTO is to create and communicate appealing destination communicate appealing destination images and messages to prospective images and messages to prospective visitors, mainly through advertising, PR visitors, mainly through advertising, PR and print.and print.

For example, in Britain, there are four For example, in Britain, there are four bodies which meets the definition of bodies which meets the definition of NTOs. They are the British Tourist NTOs. They are the British Tourist Authority, the English Tourist Authority, the English Tourist Authority, the Scottish Tourist Board, Authority, the Scottish Tourist Board, and the Wales Tourist Board. and the Wales Tourist Board.

British Tourist Authority is responsible British Tourist Authority is responsible form the marketing Britain overseas. form the marketing Britain overseas. The tourist boards for England, The tourist boards for England, Scotland, and Wales are each Scotland, and Wales are each responsible for the development and responsible for the development and promotion of tourism in their areas. promotion of tourism in their areas.

In the USA, at federal level, the NTO is In the USA, at federal level, the NTO is the United States Travel and Tourism the United States Travel and Tourism Administration which is responsible Administration which is responsible mainly for the promotion of tourism into mainly for the promotion of tourism into the USA. the USA.

In addition, most of the US state In addition, most of the US state governments have their own tourist governments have their own tourist offices, which mainly does the promotion offices, which mainly does the promotion of US domestic tourism into their areas. of US domestic tourism into their areas.

All these national and state NTOs act as All these national and state NTOs act as policy advisers for their governments. policy advisers for their governments. All have established formal and informal All have established formal and informal links for consultation and joint action links for consultation and joint action with the tourism industry in their with the tourism industry in their countries or regions.countries or regions.

Around the world there are some 200 Around the world there are some 200 NTOs of different sizes and organizational NTOs of different sizes and organizational patterns. patterns.

Nearly all of them are engaged in one or Nearly all of them are engaged in one or more aspects of destination promotion. more aspects of destination promotion. Most of the promotional effort organized Most of the promotional effort organized by these NTOs is aimed at international by these NTOs is aimed at international markets.markets.

Research showed that larger branch Research showed that larger branch netwrorks of NTOs such as those netwrorks of NTOs such as those supported by Britain, France or Greece, supported by Britain, France or Greece, have over 30 offices in the main countries have over 30 offices in the main countries form which they receive their visitors.form which they receive their visitors.

The yearly expenditure on marketing The yearly expenditure on marketing international tourism of the NTOs is international tourism of the NTOs is between 1 million Euros and 1-10 between 1 million Euros and 1-10 million Euros. The average marketing million Euros. The average marketing budget of NTOs is around 0.003% of budget of NTOs is around 0.003% of their international tourism receipts. their international tourism receipts.

Destinations with smallest budget Destinations with smallest budget include island states, small South include island states, small South American and former East European American and former East European countries; medium range include larger countries; medium range include larger South American, larger former Eastern South American, larger former Eastern European countries and smaller European countries and smaller western developed countries; OECD western developed countries; OECD countries and major world tourism countries and major world tourism countries have the largest budget. countries have the largest budget.

Strategies Applied by Strategies Applied by NTOs NTOs

Basically, in marketing a country as a Basically, in marketing a country as a destination, the role of NTOs are;destination, the role of NTOs are;

1.1. to reach prospective visitors with the to reach prospective visitors with the help of the promotional mix by help of the promotional mix by increasing awareness and influencing increasing awareness and influencing their attitudes and purchasing behavior - their attitudes and purchasing behavior - promotional strategy,promotional strategy,

2.2. to facilitate the marketing activities of to facilitate the marketing activities of mainly private sector operators of the mainly private sector operators of the tourism industry in the promotion of tourism industry in the promotion of their own products - their own products - facilitation strategy. facilitation strategy.

A promotional strategyA promotional strategy

The strategy an NTO adopts in practice The strategy an NTO adopts in practice should change according to the stage of should change according to the stage of the development a country’s tourism. the development a country’s tourism.

Where destinations are largely Where destinations are largely unknown in the markets they seek to unknown in the markets they seek to promote, where existing tourism flows promote, where existing tourism flows are small, and where the tourism are small, and where the tourism industry within the country is mainly industry within the country is mainly weak, the NTO has to take the leading weak, the NTO has to take the leading role in playing a major role in role in playing a major role in promoting its destination’s products. promoting its destination’s products.

To be effective, the promotional To be effective, the promotional campaigns must be of sufficient weight campaigns must be of sufficient weight and impact to create the necessary and impact to create the necessary numbers of potential buyers. But if numbers of potential buyers. But if budgets are not adequate for the task, budgets are not adequate for the task, expenditure on an image-creating expenditure on an image-creating strategy may in practice be waste of strategy may in practice be waste of money. Generally, the available budgets money. Generally, the available budgets is not adequate to engage effectively in is not adequate to engage effectively in image campaigns in several markets. image campaigns in several markets.

The marketing support of international The marketing support of international operators such as airlines, hotel chains operators such as airlines, hotel chains and tour operators is essential for and tour operators is essential for success. success.

For better-known, well-established For better-known, well-established destinations such as Britain and the destinations such as Britain and the USA, the NTO should focus more of USA, the NTO should focus more of its expenditure on the strategy of its expenditure on the strategy of support and facilitation and less on support and facilitation and less on buying media space for general buying media space for general advertising.advertising.

A facilitation strategyA facilitation strategy

This strategy creates marketing bridges This strategy creates marketing bridges between an NTO and the individual between an NTO and the individual operators in the travel and tourism operators in the travel and tourism industry. Under this strategy, the basic industry. Under this strategy, the basic functions of NTOs are;functions of NTOs are; Establishing promotional priorities for specific Establishing promotional priorities for specific

markets and segments.markets and segments. Coordinating the elements of tourism products.Coordinating the elements of tourism products. Providing support for new or growth products.Providing support for new or growth products.

Creating cooperative marketing Creating cooperative marketing campaigns accessible especially for the campaigns accessible especially for the hundreds of small businesses, that hundreds of small businesses, that would otherwise be unable to would otherwise be unable to participate in marketing on a national participate in marketing on a national or international scale.or international scale.

These strategies bring the NTO and These strategies bring the NTO and its commercial sector together in its commercial sector together in joint operations.joint operations.

Forms of facilitation by Forms of facilitation by NTOsNTOs

Some of the most important Some of the most important facilitation processes used by NTOs facilitation processes used by NTOs are as follows;are as follows; Flow of research dataFlow of research data; by providing a ; by providing a

regular, user-friendly flow of research regular, user-friendly flow of research data to the tourism industry (e.g. short data to the tourism industry (e.g. short reports on market trends), an NTO may reports on market trends), an NTO may make valuable inputs to the marketing make valuable inputs to the marketing planning processes of individual planning processes of individual businesses in all sectors. These research businesses in all sectors. These research surveys is more cost effective.surveys is more cost effective.

Representations in markets of originRepresentations in markets of origin; by ; by establishing a network of offices in foreign establishing a network of offices in foreign countries, an NTO can create and maintain countries, an NTO can create and maintain vital travel trade contacts, and act as a point vital travel trade contacts, and act as a point of distribution for the destination’s products. of distribution for the destination’s products.

Organization of workshops and trade Organization of workshops and trade showsshows; ; NTOs make arrangements where NTOs make arrangements where suppliers of tourist products may meet with suppliers of tourist products may meet with prospective buyers at relatively low cost. prospective buyers at relatively low cost. Either in the market of origin or at the Either in the market of origin or at the destination, individual hoteliers, attractions, destination, individual hoteliers, attractions, suppliers of conference facilities may be able suppliers of conference facilities may be able to make contact and discuss business in one to make contact and discuss business in one or two days of intensive meetings which on an or two days of intensive meetings which on an individual basis could take weeks to organize.individual basis could take weeks to organize.

Familiarization tripsFamiliarization trips; by arranging visits for ; by arranging visits for the selected foreign travel agents, journalists the selected foreign travel agents, journalists and tour operators to the destination, NTOs and tour operators to the destination, NTOs can increase the business between the travel can increase the business between the travel trade in markets of origin and destination trade in markets of origin and destination products. They are also a method of improving products. They are also a method of improving the information available to customers at key the information available to customers at key retail outlets and gaining better display space retail outlets and gaining better display space at point of sale. The trips also serve an at point of sale. The trips also serve an important PR role and offer many opportunities important PR role and offer many opportunities for communicating key messages to influence for communicating key messages to influence people.people.

Travel trade manualsTravel trade manuals; it is customary for ; it is customary for NTOs to produce one or more trade manuals NTOs to produce one or more trade manuals which serve as references and guides for use by which serve as references and guides for use by the travel trade. A manual lists the details of the travel trade. A manual lists the details of all operators and their facilities, and prices. all operators and their facilities, and prices. These manuals provide access to foreign These manuals provide access to foreign markets at low cost. markets at low cost.

Support with literature production and Support with literature production and distributiondistribution; b; because printed materials ecause printed materials are so important in tourism marketing, are so important in tourism marketing, some NTOs produce “shells” for use by some NTOs produce “shells” for use by small businesses. These are normally full small businesses. These are normally full color leaflets that contain photographs and color leaflets that contain photographs and empty spaces that may be overprinted by empty spaces that may be overprinted by an operator’s logo and product messages. an operator’s logo and product messages.

Many NTOs sell advertising space in their Many NTOs sell advertising space in their range of brochures which they distribute range of brochures which they distribute overseas. These brochures are very cost overseas. These brochures are very cost effective advertising media which small effective advertising media which small and medium sized businesses can reach and medium sized businesses can reach international markets.international markets.

Information and reservation systemsInformation and reservation systems; by ; by using new computerized information using new computerized information technology, NTOs may assist sectors of their technology, NTOs may assist sectors of their tourism industry by establishing central tourism industry by establishing central reservation systems in support of the reservation systems in support of the brochures. Travel agents and other brochures. Travel agents and other distributors who can access products rapidly distributors who can access products rapidly through one central reservation operation are through one central reservation operation are likely to find this the only way to deal cost-likely to find this the only way to deal cost-effectively with small businesses. effectively with small businesses.

Support for new productsSupport for new products; ; NTO can help NTO can help new products to emerge and establish new products to emerge and establish themselves in their markets in the initial 2 to themselves in their markets in the initial 2 to 3 years after their launch. Smaller businesses 3 years after their launch. Smaller businesses are usually unable to afford the start-up costs are usually unable to afford the start-up costs of national and international marketing. of national and international marketing.

Consumer assistance and protectionConsumer assistance and protection; ; the marketing task does not end with the the marketing task does not end with the sale of a product. It extends into concern sale of a product. It extends into concern for customer satisfaction with the service for customer satisfaction with the service delivery. NTO can define product quality delivery. NTO can define product quality standards in consultation with operators standards in consultation with operators in tourism industry. These may include in tourism industry. These may include minimum levels of equipment to be minimum levels of equipment to be provided in accommodation, and codes of provided in accommodation, and codes of good practice, e.g. in giving buyers full good practice, e.g. in giving buyers full information in brochures. These are information in brochures. These are done in order to ensure consumer done in order to ensure consumer satisfaction and protection.satisfaction and protection.

Destination Positioning Destination Positioning Themes, Branding, Images Themes, Branding, Images

and Conceptsand Concepts Whatever is the main strategy, Whatever is the main strategy,

promotion or facilitation, for promotion or facilitation, for marketing destinations, NTOs need marketing destinations, NTOs need to choose the single-minded to choose the single-minded comunication propositions (messages comunication propositions (messages and symbols) that identify and and symbols) that identify and position or brandposition or brand their countries in their countries in the minds of prospective visitors to the minds of prospective visitors to differentiate them from the others. differentiate them from the others.

Amazing Thailand, Incredible India, Amazing Thailand, Incredible India, Turkey: Mediterranean and more, Turkey: Mediterranean and more, Croatia: The Mediterranean as it once Croatia: The Mediterranean as it once was; Greece: Live your myth in Greecewas; Greece: Live your myth in Greece are examples designed to identify are examples designed to identify destinations with unique propositions. destinations with unique propositions.

To be successful, such propositions To be successful, such propositions must be;must be; Based on genuine product values and Based on genuine product values and

attributes that can be delivered and attributes that can be delivered and experienced and that visitors recognize as experienced and that visitors recognize as authentic, not fake.authentic, not fake.

Readily understood by customers at the Readily understood by customers at the point of purchase.point of purchase.

Involve at least the leading players in the Involve at least the leading players in the commercial sector.commercial sector.

Incorporated into the promotional efforts Incorporated into the promotional efforts of a country’s regions and resorts. of a country’s regions and resorts.

Sustained over several years if they are Sustained over several years if they are to overcome the communication inertia to overcome the communication inertia and barriers.and barriers.

Systematically exploited in a co-Systematically exploited in a co-ordinateordinatedd range of sales-promotion and range of sales-promotion and customer-servicing techniques designed customer-servicing techniques designed to reach visitors on arrival at the to reach visitors on arrival at the destination as well as prospective visitors destination as well as prospective visitors in countries of origin. in countries of origin.

SourcesSources

Kotler, P.; Bowen, J. and Makens, J. (1999). Kotler, P.; Bowen, J. and Makens, J. (1999). Marketing for Hospitality and Tourism (2nd Marketing for Hospitality and Tourism (2nd ed.). Prentice Hall: NJ.ed.). Prentice Hall: NJ.

Kotler, P. and Armstrong, G. (2006) Principles Kotler, P. and Armstrong, G. (2006) Principles of Marketing (11th ed.). Prentice Hall: NJ. of Marketing (11th ed.). Prentice Hall: NJ.

Middleton, V. T. C. (2004) Marketing in Travel Middleton, V. T. C. (2004) Marketing in Travel and Tourism (3rd ed). Elsevier: Oxford.and Tourism (3rd ed). Elsevier: Oxford.

Middleton, V. T. C.; Fyall, A.; Morgan, M. And Middleton, V. T. C.; Fyall, A.; Morgan, M. And Ranchhod A. (2009). Marketing in Travel and Ranchhod A. (2009). Marketing in Travel and Tourism (4th ed). Butterworth-Heinemann: Tourism (4th ed). Butterworth-Heinemann: Oxford.Oxford.