The Management of Tourism Destination

Pertemuan 9-10

Matakuliah : G1174/Tourism Management and PlanningTahun : 2007

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Topics

• The significant of management and their application in tourism destination

• The role of management to cater the need of tourists

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Objectives

1. To explain the principles of management in tourism destination

2. To demonstrate the application of management in tourism destination

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Managing tourism busines: Key principles

• Tourism management involves harnessing the power over resource (6’s M – man, money, machine, method, material, market) and the organisation to bring some degree of order to the tasks that must be undertaken to function and achieve its objectives.

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The purpose of management in tourism

• Profitability, which can be achieved through higher output, better services, attracting new tourists, and cost minimalisation

• Raising public awareness and undertaking activities for the wider public good

• Efficiency, to reduce expenditure and inputs to a minimun to achieve more cost-effective outputs

• Effectiveness, achieving the desired outcome, not necessarily a profit-driven.

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What to be managed?

The heterogenity (ie. Diversity), perishability (ie. A tour cannot be stored and sold at a different time) and intangibility of tourism services make management a challenge.

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Key problems in tourism management

1. The tourists must travel to the product to consume it

2. The operator has little influence over the tourism activities (holiday)

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Management Function and Area

• Management function:– Planning– Organising, Actuating and Directing– Controlling and Evaluation

• Management area– Marketing– Operation– Human resources– Financial

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Tourism Planning Approach

1. Continuous, incremental and flexible approach2. System approach3. Comprehensive or (holistic approach4. Environment and sustainable development

approach5. Community approach6. Implementable approach7. Application of a systematic planning approach8. Co-operative approach

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Organising

• In organising, destination are classified based on– Form and type of destination– Function of destination: primary and secondary– Parameter: conservation and satisfaction – Management system: supporting and development effort

• Classification of destination management– Class A: highly potential– Class B: medium– Class C: adequate

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Form of destination organisation

• Government - owned and managed by government ie. National Park, Heritage building, etc.

• Private –owned and managed by private ie. Theme park, Leisure centre, etc.

• Collaboration between government and private ie. Resort, etc.

• The public, act as stakeholder of the destination, ie. Community based tourism, ect.

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Controlling and Evaluating

• One way of controlling and evaluating the tourism management is by assessing the tourism impact in the destination.

• Tourism is widely knows as a major agent of changes in economic, environment and socio-culture, either positively or negatively,

• Some are controllable but some can not, still all effects can be evaluated and preventive action can be taken.

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Marketing tourism as a management function

• The focus of marketing belies on the fact that tourism consumption is based upon the provision of services.

• The marketing acts as link between visitors with the suppliers.

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Managing operational issues in tourism

• The focus of operational issues belies on the adequacy of facilities and services.

• It focuses on interrelated areas:– Capacity– Standards– Scheduling– Inventory, and– Control

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Managing human resource and service delivery

• In tourism, visitors purchase the skills, service and commitment of a range of human contributors to the experience that they are about to embark upon.

• The challenge facing the tourism destination will only be met successfully by a well-educated, well-trained, bright, energetic, multi-lingual and entrepreneurial workforce who understand the nature of tourism and have a professional training.

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Managing financial issues

• Tourism exist from the interaction, trade and exchange goods, services and knowledge to create wealth or other output.

• Benefit (in terms of profit) is the main driver of many businesses.

• Tourism should be profitable but not over-exposed which lead to degradation.

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Conclusion

• Managing tourism is a dynamic activity.• Changes and more changes or even disruption is

a challenge of managing a fast-charging business.

• All management function in all area of management are interrelated to achieve the objectives, both from visitors’ and community’s perspectives.