Tourism Destination Quality Management - Part 1

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Heli Tooman, Ph.D. Tourism Destination Quality Management 1 Quality Boost for Tourism 1. What does quality stand for? H.Tooman 2010 2 ! Topics: ! The concept of and discussion about quality. ! The principles and models of quality management. ! Practical work: ! What does quality stand for? ! What does tourism destination quality management stand for? The current state of Estonian tourism, its tendencies, pros and cons H.Tooman 2010 3 ! The Estonian Tourism Development Plan for 2007-2013 sees quality development and creating a quality system for Estonian tourism as one of its priorities. ! In order to boost the competitiveness of Estonia as a tourism destination in Europe the quality of tourism products and services must be raised. NB! Take a look at the data of Enterprise Estonia Tourism Development Centre, The Bank of Estonia and Statistics Estonia! Problems of Estonian tourism quality Most common problems: H.Tooman 2010 4 ! Lack of customer focus, often inadequate and shaky service quality ! Insufficient motivation and orientation on service ! It is often difficult to find qualified and motivated workforce ! Not enough high-class and flexible training possibilities ! The uniformity of tourism products ! Entrepreneurs’ limited sense of quality and process focused management ! Entrepreneurs’ insufficient focus on business ! Entrepreneurs’ insufficient experience in marketing and provision of services ! Insufficient focus on servicing employees ! Insufficient cooperation on all levels

description

Tourism Destination Quality Management - training material - PART 1. The material has been developed by PhD Heli Tooman - Pärnu College, University of Tartu, Estonia. The material has been developed with partial EU funding in Leonardo da Vinci -funded project Quality Boost for Tourism.

Transcript of Tourism Destination Quality Management - Part 1

Page 1: Tourism Destination Quality Management - Part 1

Heli Tooman, Ph.D.

Tourism Destination Quality Management 1

Quality Boost for Tourism

1. What does quality stand for?

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!  Topics: ! The concept of and discussion about quality. ! The principles and models of quality management.

!  Practical work: ! What does quality stand for? ! What does tourism destination quality management stand for?

The current state of Estonian tourism, its tendencies, pros and cons

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!  The Estonian Tourism Development Plan for 2007-2013 sees quality development and creating a quality system for Estonian tourism as one of its priorities.

!  In order to boost the competitiveness of Estonia as a tourism destination in Europe the quality of tourism products and services must be raised.

NB! Take a look at the data of Enterprise Estonia Tourism Development Centre, The Bank of Estonia and Statistics Estonia!

Problems of Estonian tourism quality Most common problems:

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!  Lack of customer focus, often inadequate and shaky service quality !  Insufficient motivation and orientation on service !  It is often difficult to find qualified and motivated workforce !  Not enough high-class and flexible training possibilities !  The uniformity of tourism products !  Entrepreneurs’ limited sense of quality and process focused management !  Entrepreneurs’ insufficient focus on business !  Entrepreneurs’ insufficient experience in marketing and provision of services !  Insufficient focus on servicing employees !  Insufficient cooperation on all levels

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Problems of Estonian tourism quality Problems that are less talked about:

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!  A narrow grasp of tourism and its impacts on the economic, social and cultural environment and the reputation of the destination

!  Insufficient knowledge of tourism products as wholesome visiting experiences, the development mechanisms and effects of their quality.

!  Viewing tourism and tourism quality through the perspective of tourism enterprises rather than destinations

!  Insufficient cooperation between public, private and the third sector

The importance of tourism quality

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!  Tourism as an economic field is extremely sensitive about quality. Visitors that have been disappointed in one tourism product or experience are likely to blemish the reputation of Estonia as a whole

!  The opportunities for travelling are broadening – people will not visit a destination or tourism establishment of poor quality twice nor will they recommend it to others

!  Tourism is a vastly changing and developing economic field. Both tourism developers (politicians and decision makers) and entrepreneurs must be aware of and follow the trends when trying to boost the competitiveness of tourism destinations and giving products their competitive advantage.

The token of Estonian tourism

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!  Any token does not work! !  The sign of Estonian tourism

can only be a service culture based on sincere hospitality and excellent quality but also the skill of sending a right message to the potential visitor.

!  We have no better alternatives than this!

Quality – inevitable or just trendy?

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! We all have heard the word ! Most of us talk about it ! Many of us do not understand it ! Many of us are aware of its seriousness ! Many of us do not know what should be done ! Many of us understand, know, do and have succeeded

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Practical work 1 What does quality stand for?

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! Group work (15 min for preparation) !  Pick one of you as a secretary and one as the presenter of

the work ! Write down all the words that in your opinion associate

with the word “quality” !  Assort the words logically !  Present your work

Quality – aiming for perfection

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What is quality?

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Quality is the relationship between requirements and the actual performance. It is the difference between what we

expect and what we get. Quality helps us tell the difference between good and bad, tolerable and

intolerable, the ones lagging behind and the ones on the top. Quality is based on values and it is expressed by

variety. (Towards a European Vision of Quality – The way forward )

Values

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!  Values are the main ideas of preference in situations where two or more ways of action are possible.

!  Money is worthless when it comes to basic values. Such values together with human needs and desires represent our specific expectations and requirements

For example: When protecting a human life is considered to be a value then it is expected that all products and services include precautions. Products and services we receive are a value to us if they are useful and apt to our basic values.

Source: Towards a European Vision of Quality – The way forward

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Values

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!  Secondly, value has a meaning when it is used for bargaining when something is received in exchange for something else, money for example.

!  Products and services that we receive are a value to us when they are useful and apt to our basic values. ! Most developed countries have learned that by declaring that

they compete with higher quality rather than lower prices they can ask higher prices for excellent quality.

Values

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!  Thirdly, quality itself can be seen as a value. Different societies and social movements in human history have created and declared values such as freedom, individuality and respect for fellow citizens.

!  Similarly to that the movement of quality has also expressed and promoted certain values: ! Goodness in everything, ! The ethics to give one’s best and expect only the best,

respecting professionalism, beauty and skills.

Quality values

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Customer focus. !  Businesses exist to serve clients and public institutions to

serve citizens. !  Focusing on the client (“client in” instead of “goods out”)

means recognizing variety and competition. Existance depends on successful functioning that is decided upon by clients.

(Towards a European Vision of Quality – The way forward )

Quality values

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Constant improvement ! Constant improvement means that the ideas and

standards that steer the procedures are not everlasting. They must be subject to critical judgement and challenges that are based on observation and feedback.

! Organizations are not machinery managed top-down but living organisms.

!  It is important to rope all employees in for quality – quality is everybody’s business.

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Quality values

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!  Sustainable development – social, economic and environmental sustainability

!  Management by realities ! According to the Western scientifical tradition quality is based

on observation, measurement and perseverance ! Considering the finiteness of measuring intellectual and

especially human emotions, quality management should be based on facts, analysis and testing

! Management based on facts means that information must move freely.

The philosophical and practical perspectives of quality

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!  The philosophy of quality brings up two questions: ! How do we know what quality stands for? and ! Who are “we”?

!  Quality is a human perception that only exists in role play: !  client-producer: economic and mercantile quality !  citizens-power: the quality of governance ! Organizations or parts of them – the environment they act in:

organizational quality

How do clients know what quality is?

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!  Client is and actor in three roles: the selector, the payer and the user.

!  These roles are connected internally but they have intersections in a wider perspective as well: !  client as the elector is linked to the institutional framework

such as the open market, financial freedom and the law of contract;

!  client as the payer is linked to economic prudence and property transfer;

! Client as the user stands for consumption value, usage and its possible external impact.

A quality person

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!  A quality person supposedly prefers: !  a flawless product or service to one with flaws; !  a comfortable product or service to an uncomfortable one.

!  A quality person is also looking for quality outside mercantile deals – in every aspect of human relations. This is why values can not only be considered from the economists point of view but the views of philosophers must also be taken into account.

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Quality as an economic concept

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!  Quality as an economic phenomenon – client’s idea of mercantile value as the motivator of demand has existed for as long as people have manufactured and traded.

!  It is most eminent in the conditions of the open market where clients are able to apply their right to choose between several alternatives.

Actual quality

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!  If the quality of the exchanged product is limited by visible and measurable properties, the product becomes an immanent element of economics and trading (i.e. not going beyond this world)

!  There is also another area of application that could be called transcendental quality. One could say that quality is not the spirit (expectations) nor the matter (the product that met the expectations) but a third, independent state that can not be defined but you know it when you see or experience it.

Transcendent Transcendental

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!  Transcendent - something that exceeds the boundaries of cognition, something in itself. Its antonym is immanent, cognitive.

!  Transcendental - something pre-cognitive. “Immanent” is the antonym for this well.

!  The duality “transcendent-immanent” is on horizontal, on the same level, together they evolve and together they dissolve, one is hidden and the other one visible, one is the shadow and the other one the light.

Transcendent: 1. Surpassing others, preeminent or supreme. Exceeding or surpassing in degree or excellence 2. Lying beyond the ordinary range of perception. Beyond and outside the ordinary range of human experience or understanding; "the notion of any transcendent reality beyond thought"

Actual quality

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!  In market economy clients have the freedom to prefer whatever they like both in transcendent and immanent category.

!  For the manufacturer of products and services the question becomes extremely practical: information about what is considered as quality must be gathered and turned into plans that lead to outputs which then can be set against initial goals.

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Service culture as a value

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!  Modern people live and work in the conditions of a service society where one of the characteristics of culture is a civilized service culture that presupposes civilized competencies.

!  Service culture as a value can thus not be excluded from quality values. Both the visible/immanent and the transcendent aspects belong under it.

The definition of service culture

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! What we need is an organizational culture labeled with service culture, a “culture” where good service is recognized and where the servicing of both internal and external clients is considered a natural way of life and one of the principal values of every person.” (Crönroos 2001)

!  In an issue from 1990 the last word from that definition was “norm”. What has changed since then?

How can an entrepreneur know what is considered quality?

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!  Flawless manufacturing as quality is also known as conformance quality.

!  The quality of plans and drafts brings out the other aspect of quality also known as functioning quality. ! Quality is based on the high quality of a plan or draft. ! The functioning quality includes the scientific and technical

progress of mankind but it also brings along serious restrictions since it presupposes that citius, altius, fortius is always the best way.

How can a manufacturer know what is considered quality?

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!  The qualities of conformance and function are tied to the production and planning of goods and services. The growing competition in the market of customers has again brought up a third aspect – customer’s quality.

!  This point of view in its drastic form suggests that quality is anything that is considered quality by the client. Several marketing methods are used to acquire that information.

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How can a manufacturer know what is considered quality?

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! Customer’s quality has improved the lives of people in many ways but it also comes with serious restrictions. !  Excessive customer focus leads to shortsighted commercialism

and brutal price competition. This is why the client’s freedom of choice has been restricted by laws – this kind of approach could be taken as the quality of a party, a system or the environment.

!  Party quality can be looked at as a relationship between client satisfaction and its general consequences.

Organizational quality

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!  How should an organization be shaped, maintained and managed so that it would produce a qualitative product or service not only once but constantly; not only in simple but also in changing circumstances and conditions.

A complete quality teddy

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According to the modern theory and practice the necessary efforts for inducing quality can be depicted as a huge teddy bear: !  the big belly representing professional skills, !  the feet representing the economic and esthetical aspects of

quality, !  the hands the technical management of quality, !  and finally the head that stands for the philosophy of quality.

What does service quality consist of?

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The Nordic school: Grönroos – Gummesson’s integrated quality model (1987): ! The quality of service design, production and distribution ! Technical quality. What will the client get? !  Functional quality. How will he get it? The quality of service

process and relations. !  Image, expectations and experience ! These elements make up the quality perceived by the client, his

satisfaction

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What does service quality consist of?

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The Northern-American school: Zeithaml, Parasuraman and Berry (since mid 1980-s) – service quality is the difference between client’s expectations and experience

!  The most common model for measuring and evaluating quality is SERVQUAL (1988, the last version from 1995)

!  It is adapted to the field of tourism: HISTOQUAL (1996, historical buildings-specific), LODGSERV (1991, housing industry), HOLSAT (1998, health resorts, recreation grounds), DINESERV (2001, restaurant industry)

Quality management

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! Quality management is the process of giving promises and fulfilling them.

!  The most important principles of quality management are: customer focus, the inclusion of people, process based approach, a systematic approach to management, continous betterment, fact based decision-making, mutually beneficial relations with partners. •  Oakland, J. S. (2006) Total Quality Management. Theory and

Practice. Tallinn: Külim, 483 p.

Deming’s wheel of continuous betterment: PDCA: P plan, D do, C control, A act!!!

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Building quality dwells from client

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!  The voice of client is listened to, the importance of client’s expectations is weighed, necessary connections are found and adapted to the previous when building quality.

!  There is no point in talking about quality when there is no customer and process focused approach to quality.

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Quality plan

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!  Quality plan is a document that states by whom, when and which procedures and associative processes must be applied to different projects, products, services or contracts

!  Quality planning is a part of quality management that focuses on putting up quality goals and defining the necessary processes and resources that are needed to reach them.

Quality plan is based on a thorough self-evaluation

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!  A quality plan cannot evolve from nothing or come into being only from the ideas and thoughts of a leader

!  Quality planning starts from self-evaluation where all employees must be included in.

Self-evaluation Criteria 1 Leadership

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1.1. Vision and mission have been worked out and stated in the organization 0 1 2 3 4

1.2 Values (value judgements) and the good wills of practice have been worked out in the organization 0 1 2 3 4

1.3 Strategic and functional goals have been defined in the organization based on vision, mission and values 0 1 2 3 4

1.4. The strategic and functional goals of the organization are connected to action plans and processes 0 1 2 3 4

Self-evaluation Criteria 1 Leadership

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1.5. The organization has defined all the important parties 0 1 2 3 4

1.6. The organisation includes all parties in working out its vision, mission, values and goals 0 1 2 3 4

1.7. The organization forwards its vision, mission, values, strategic and functional goals to all its parties 0 1 2 3 4

1.8. The organization adapts vision, mission and values to the changes in external conditions 0 1 2 3 4

1.9. Employees of the organization are supported in achieving their goals and fulfilling their plans in order to achieve the long-term goals of the organisation 0 1 2 3 4

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Self-evaluation: The starting points for evaluation

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O – Activities have not been started (no such activity). There might be some ideas but no actions have followed.

1 – A little progress, there is little proof of planned actions/approaches (P – plan, planning), there is occasional evaluation/control over the results achieved

2 – Considerable progress, clear proof of actions/approach having been planned in advance and put into practice (D –do). There still are some aspects that have not been considered.

3 – Actions/approach have been planned, put into practice and overlooked (C – check). There are regular reviews of moving towards the goal but still some aspects have not been considered.

4 – Complete functioning, all aspects have been considered. Actions/approach have been planned, put into practice, overlooked based on data comparison and corrected if needed (A – act, correcting activities) and integrated into the functioning of the organization

Other self-evaluation criteria

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2. Employees – how does the organization lead, develop and open up the potential of both employees as individuals and of teams and plans actions in that field.

3. Resources – how does the organization plan and manage external and internal relations and internal resources (finances, assets, materials, gadgets)

4. Processes supporting the client’s journey – how does the organization plan, manage and better its processes in order to support its clients’ journeys

Other self-evaluation criteria

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5. Outcomes: 1)  Clients – what are the results concerning the external clients of

the organization (feedback, client satisfaction etc) 2)  Employees – what are the results concerning employees (general

satisfaction, managing satisfaction, working conditions, inclusion, motivation etc), staff turnover, developing skills etc

3)  Sustainability – what are the results concerning the financial sustainability of the organization in the following areas: economic, social and environmental

Defining areas of improvement

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!  Important areas of improvement can be defined as a result of the self–evaluation. It is advisable that defining them would take place by consensus, this means that everyone would have a chance to speak out. Areas of improvement that get the most “votes” will be focused on.

!  Logic – you can’t do all at once! Some areas are far more important than others!

!  Certain goals will be set in order to improve the chosen areas and a detailed plan will be formulated (actions, dates, people responsible for them, control mechanisms etc)

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Models for evaluating quality

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!  The basis of the management quality award (EFGM) is the existance of causal connection between the quality of management and long-term success. It is the basis for the national quality awards of 23 European countries, including Estonian Quality Award. www.efqm.org; www.ejk.info

!  Balanced scorecard. A system for communicating strategy and measuring success that measures financial, client, process and learning aspects. Many global companies (Hewlett-Packard, IBM, Mobil, Shell, Texaco) and also Estonian companies (Tartu Õlletehas, AS Andmevara), Estonian Government Office, Enterprise Estonia, Tartu University etc from the public sector www.balancedscorecard.org

The Integrated Model of Service Quality (Parasuraman et al 1985)

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How to use this wisdom of quality in tourism destination quality perspective?

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!  All the previous information was mainly about the quality of companies and products.

!  The quality programmes used in Estonian tourism are company or product focused

!  If and why is there a need for a wider perspective in relation to the broadening of the concept that a tourism product is a wholesome visiting experience?

!  In the Estonian National Tourism Action Plan (2006) the following definition for tourism product has been given: ! Tourism product is a wholesome visiting experience that

consists of different products and services that a visitor consumes during his/her trip.

Tourism product is a wholesome visiting experience

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!  A tourism product usually consists of different services: transport, accommodation, meals, events, sightseeings and activities, but also infrastructure, hospitality, atmosphere and other hardly detectable components.

!  All tourism services can be sold whether as independent services or as a combined package. This means that tourism companies together with many connecting companies and organizations are mutually dependent. Each of them illustratively “produces” their share of a wholesome visiting experience a.k.a. a tourism product.

!  What else in addition to the aforementioned affects the visiting experience in a destination? Remember – a visitor perceives the whole thing, he is not imprisoned in one or the other enterprise. What does he rely on when assessing tourism destination quality?

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How to understand the quality of tourism?

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!  Tourism quality is a complex and faceted phenomenon that is perceived and evaluated by the client through several factors, including: !  the quality of destination (a very wide concept – destination

country, region, city, county etc + many other factors); !  the quality of accommodation, transport, food, services etc !  service quality throughout the whole journey !  the feeling you have after a visiting experience and so much

more

Pracitical work 1 What does tourism destination quality stand for?

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! Group work (15 min for preparation) !  Pick one as a secretary and one as the presenter of the

work ! Write down all the words that in your opinion associate

with the word “tourism destination quality” !  Assort the words logically !  Present your work

Topic 1 test questions

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!  What is quality? !  What are the problems of Estonian tourism quality? !  Why has the need for more attention on tourism quality appeared? !  What are quality values? !  Which factors make up quality perceived by people? !  What do the words immanent and transcendent quality stand for? !  Why does the philosophy of quality set the following questions: 1) How do we know

what quality is? and 2) Who are “We”? !  How do you characterize a Quality Person? !  What does quality management stand for? !  What is the Deming Wheel? !  What does service quality consist of? !  Why is it important to start quality planning from self-evaluation? !  How are the improvement areas of quality chosen? !  What are the most common quality evaluation models? !  What does tourism destination quality stand for?