Int. Module: An Introduction to Destination Management (2)

An Introduction to Destination Management

Essentials of Tourism Destination Management

Defining a Tourism Destination
A local tourism destination is a physical space in which a tourist spends at least one night.
It includes tourism products such as support services, attractions and tourist resources.


It has physical and administrative boundaries defining its management,
and images and perceptions defining its market competitiveness.


Local destinations incorporate various stakeholders, often including a host community,
and can nest and network to form larger destinations.


Destinations could be on any scale,
from a whole country (e.g. Spain),…


…a region (such as the Spanish “Costas”)…


…island (Ibiza)…


…to a village, town or city (Barcelona),…


…or a self-contained centre (e.g. Port Aventura).


The Basic Elements of the Tourist Destination

Destinations contain a number of basic elements which attract the visitor to the destination
and which satisfy their needs on arrival.

Basic Elements of the Destination
Attractions, Amenities, Image

The DMO
Leading and coordinating

Creating a suitable Environment
Marketing Delivery on the ground
Policy, Legislation, Regulations, Taxation
Getting people to visit Exceeding expectations


Attractions: The “must sees” or “must dos”. These are often the focus of visitor
attention and may provide the initial motivation for the tourist to visit the destination.
These can be categorized as natural (e.g. beaches, mountains, national parks) or cultural
(monuments, museums, theatres, cultural events). Other, less tangible factors, such as
uniqueness and emotional or experiential triggers also attracting tourists to destinations.


Amenities: These are the wide range of services and facilities which support the
visitors’ stay and include basic infrastructure such as utilities, public transport, and roads
as well as direct services for the visitor such as accommodation, catering, visitor
information, recreation facilities, guides, operators, and shopping facilities.


Image: A unique character or image is crucial in attracting visitors to the destination. It
is not sufficient to have a good range of attractions and amenities if potential visitors are
not aware of this. This image includes the uniqueness of the destination, its sights,
scenes, environmental quality, safety, service levels, and the friendliness of the people.

Destination: The Playground of Tourism


Tourism destinations are constantly changing, they rise and fall in popularity and their
success can often be influenced by changes in fashion or to external influences outside the
control of the destination.

This process can be understood in terms of a life cycle as explained by the
Tourism Destination Life Cycle (TDLC)


Destination Life Cycle

 Exploration. During this stage small number of visitors are attracted by natural or
cultural attractions; visitor numbers are limited and few tourist facilities exist.

 Involvement. During this stage there is limited involvement by local residents who
provide some facilities for visitors; recognizable tourist seasons and market areas begin to
emerge.

 Development. During this stage large numbers of tourists arrive and external
organizations such as hotels and touroperators take more of a key role.

 Consolidation. During this stage tourism becomes a major part of the local economy and
of increasing political importance. Rates of visitor growth may have leveled off and some
facilities may be in need of upgrading.


Destination Life Cycle

Stagnation. During this stage the number of visitors has peaked; the destination may no
longer be considered fashionable and there may be a high turnover of business properties.

Depending on the response of destination managers to the onset of stagnation, various
scenarios are then possible, including decline, stabilization, or rejuvenation and re-
invention.


What is Destination Management?

Destination management is the coordinated management
of all the elements that make up a destination .


The Destination Management Organization (DMO).

DMOs are a critical component of the tourism industry. Destination Management calls for
a coalition of many stakeholders and interests working towards a common goal. The
Destination Management Organization’s role should be lead and coordinate activities
under a coherent strategy to market their destination to potential visitors, both individuals
and groups, and to provide economic benefit to the community and its members.


Categories of Destination Management Organizations :

 National Tourism Authorities (NTAs) or Organizations (NTOs): Switzerland Tourism.

MySwitzerland.com

 Regional, provincial or state DMOs (RTOs): Valais Tourism.

Welcome in Valais

 Local DMOs: Saas-Fee/Saastal Tourismus.

Saas-Fee


There are various options for destination management governance:

 Department of single public authority;

 Partnership of public authorities, serviced by partners;

 Partnership of public authorities, services by a joint management unit;

 Public authority(ies) outsourcing delivery to private companies;

 Public-private partnership for certain functions – often in the form of a non-profit
making company;

 Association or company funded purely by a private sector partnership and/or trading –
again for certain functions


Traditionally responsible for destination marketing,
the role of the DMO (often Tourist Boards) is becoming far broader.

DMOs today should not only lead on marketing,
but must also be strategic leaders in destination development.
This role requires them to drive and coordinate destination management activities
within the framework of a coherent strategy.


Basic Elements of the Destination
Attractions, Amenities, Image

The DMO
Leading and coordinating

Creating a suitable Environment
Marketing Delivery on the ground
Policy, Legislation, Regulations, Taxation
Getting people to visit Exceeding expectations

The elements of the destination are supported by marketing to get people to visit in the
first place and delivery of services on the ground to ensure the expectations are met at the
destination. Underlying these activities is the need to ensure a suitable environment,
(physical, social and economic) in which to develop tourism. The Destination Management
Organization should lead and coordinate these different aspects of the destination.


1.- Creating and Ensuring a suitable Physical, Social and Economic Environment. This is
the foundation of destination management on which the marketing of the destination and
the delivery of the experience are dependent.

Creating the right environment includes:

 Strategy, Policy and Infrastructure Planning;

 Human Resources Development;

 Legislation and Regulation;

 Technology and systems development;


2.- Marketing. Destination marketing should face outwards to attract visitors to the area. It
should promote what is most attractive to potential visitors and most likely to persuade
them to come.

The key functions are:

 Strategy, research and development.

Destination promotion, including branding and image;

 Campaigns to drive business;

 Information Services Management;

 Operation/facilitation of bookings;

 Customer Relationship Management (CRM).


Promotions and Marketing Activities:

 Market research

Market planning

 Production and distribution of brochures

 Advertising

 Operation of a web site

 Direct mail and Email marketing

 Customer Relationship Management (CRM)

Travel exhibitions fairs and trade shows – organisation and attending

 Organisation of other events like familiarisation trips

Media and PR


3.- Delivery on the ground. Ensures the quality of every aspect of the visitor’s experience
once they arrive at the destination.

This includes:

 Destination coordination and management for visitor’ “quality of experience”, especially
the public realm;

 Product “start-ups”;

 Events development and management;

 Attractions development and management;

 Training and education;

 Business advice;


Destination Management Goals

 Establishing a competitive edge. Two requirements are critical for destinations to
achieve a competitive advantage over the rivals:

 Establishing a strong and unique positioning offering a different kind of experience
compared to other destinations.

 Delivering excellent quality experiences and superior value for money.

 Ensuring tourism sustainability.

 Spreading the benefits of tourism.

 Improving tourism yield.

 Building a strong and vibrant brand identity.


SWOT Analysis

 SWOT is a structured evaluation of external and internal marketplace conditions.

 SWOT is an acronym for a business analysis used to assess strengths and weaknesses
of a business, as well as the opportunities and threats in the marketplace.

 A SWOT analysis of tourism can be used by a DMO
to assess the Management of the Destination.

 SWOT analyses are incredibly valuable to decision makers within an organization
because they can help management target their marketing message
to their strengths and opportunities.

SWOT Analysis
S Strengths are the internal strengths of the destination
W Weaknesses are the internal weaknesses of the destination
O Opportunities are the external favourable things that may occur
T Threats are the external possibilities that threaten a destination

Int. Module: An Introduction to Destination Management (2)

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