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Chapter 4

Chapter 4. Destination Development. Objectives. Determine what attracts tourists to different destinations List and describe each of the steps involved in the planning and development stages of a destination

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Chapter 4

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  1. Chapter 4 Destination Development

  2. Objectives • Determine what attracts tourists to different destinations • List and describe each of the steps involved in the planning and development stages of a destination • Identify the four stages of the product life cycle and apply them to a specific case in destination development

  3. Objectives • Distinguish between the multiplier effect and revenue leakage. • Discuss the physical, economic, and social impacts of tourism • Explain how tourism can help preserve a local culture • Identify the possible negative effects of destination development on a local environment.

  4. What makes a place worth traveling to? • People usually travel to destinations to participate in at least one of three sectors of the tourism industry: • Adventure tourism and recreation (e.g., White water rafting, hunting, fishing, skiing, golfing) • Attractions (e.g., galleries, historical sites, museums, theme parks) and natural wonders • Meetings, events, and conferences (e.g. conventions, training sessions, festivals)

  5. Components of Tourism Destinations • There are five necessary TOURISM DESTINATION COMPONENTS that make a location a viable tourist destination: • 1) Natural resources: A tourism destination must have the climate, terrain, water, and vegetation to support activities for visitors.

  6. Components of Tourism Development • 2) Infrastructure: Once a destination has been identified for development, an infrastructure (heat, electricity, water, roads, communication, etc.) must be built to support visitors. • 3) Superstructure: Once the infrastructure is in place, a superstructure can be built. (Buildings and attractions: CN Tower, Notre-Dame Basilica, etc)

  7. Components of Tourism Development • 4) Transportation systems: Once the infrastructure is in place, and the superstructure has created places worth linking, the transportation systems can be organized to tie everything in a destination together. • Some will include transportation systems within the Infrastructure category.

  8. Components of Tourism Development • 5) Hospitality of the Hosts: A destination will not flourish if tourists do not feel welcome. So an important component of destination development is making sure the destination gains a reputation for hospitality.

  9. Destination Development • Destination Development begins with an idea and the selection of a site. Who gets the idea to develop an area as a tourist destination? • Governments • Entrepreneurs

  10. The Planning Stage • Planning can be broken down into five main components: • Market analysis- Studying travel trends and tourist preferences in order to find if your destination is worth traveling to. • Site Assessment – Answers two main questions: “What do we have?” and “What else do we need?” (May need infrastructure and Superstructure)

  11. The Planning Stage • Financial studies: Developers must estimate the project’s cost. Also, where are they getting the money they need? • Environmental impact studies: Must consider how the development and influx of travelers will affect the natural and built environments

  12. VOCABULARY!!!! • Please copy down this important interruption: • CARRYING CAPACITY: The amount of living creatures a certain piece of land can accommodate before it starts to degrade from over-use.

  13. The Planning Stage • Social Impact Studies: Studies of how the tourists will impact the local communities. Will the permanent residents resent the commercialization of their home? With careful planning, an area can become a tourist destination with minimal negative impacts. Or, the planning process will let you know development is NOT a good idea.

  14. Different types of Development • Integrated: The whole thing shows up rapidly, specifically as a tourist destination thanks to one single developer. It is an isolated distinct location and very costly to create. (Example: Disney World)

  15. Different types of Development • Catalytic: Many developments from separate developers. One centralized development sets up the infra/superstructure, creating a possibility and need for other developments. Usually the initial developer runs the show, and sets standards. • (examples: Whistler, BC; Banff, Alberta)

  16. Different types of Development • Coattail: Commonly found near existing natural or cultural locations. It is basically a free-for-all with no central authority. Many small businesses start up, and compete with each other. • (examples: Cavendish, PEI; Halifax Waterfront)

  17. The Role of Government • Tourism can be an important source of revenue for all levels government. • They have, therefore, become very involved in tourism planning, often awarding donations to businesses and tourist organizations, as well as taking on much of the development themselves.

  18. Macro-governmental • UNWTO: United Nations World Tourism Organization. • Objectives include improving people’s access to education and culture through travel and to raise standards of living in developing countries by promoting tourism in those areas.

  19. National Tourism Organizations • NTOs promote their own countries as tourist destinations. They vary as much as the countries they reside in. • Some are independent government ministries while others are pieces of expansive departmental bureaucracies.

  20. National Tourism Organizations • Even though they are different, they often provide similar functions: • Promote inbound tourism • Conduct research into tourism • Draft development plans • License and regulate hotels, travel agencies, tour guides, interpreters, etc. • Train hotel staff, tour guides, interpreters, etc. • Operate resort facilities

  21. Provincial and Local Tourism Organizations • Provinces and cities promote tourism for the same reasons as national organizations: $$$ • Every province and territory has a TOURIST OFFICE to develop and distribute promotional literature and attract publicity (travel writers, popular media, etc.)

  22. Greater Government Involvement • Government involvement is generally a positive thing. • Governments of developing nations may have a better idea of what will help/hurt their people than foreigners would.

  23. Product Live Cycle Theory • Every Product (or in this case, tourist destination) follows a similar path: • Inception: The product is invented or the destination is discovered. • Growth: Word spreads, hotels, restaurants open. Local residents usually involved, though a well thought out plan is usually rare.

  24. Product Life Cycle Theory • Maturity: Height of popularity. Local residents begin to lose control, big industries move in. • Decline: Oversaturation of tourists, exceeds carrying capacity. Destination loses appeal that drew people in in the first place. • Not all destinations go through this in the same way, some even avoid decline, like Disney World.

  25. Economic Impacts Regardless of why people travel, we all spend money Tourism Spending in Canada in 2007 was 70.6 Billion dollars. One job in twelve, world wide is a tourism related position. 10.1 % of Canadian workers. Tourism is the worlds largest growth industry.

  26. Tourism Dollars/Multiplier Effect The flow of tourism dollars can get complicated. Separated between direct spending (Hotel, Rental Cars, restaurants, recreation/entertainment, souveniers/misc) and indirect spending (each industry needs to pay suppliers and employees who pay for their own supplies and clothes and rent, etc).

  27. Tourism Multiplier The actual amount that a country’s economy grows ends up as more than the initial money spent by the tourist. The initial spending keeps being spent down the line, again and again, allowing multiple people to be able to benefit from the same dollar. An economy isn’t just the amount of dollars, but the flow of those dollars.

  28. Leakage The economic term for $$$ that flow OUT of the immediate local economy because of the multiplier effect. Some items tourists purchase have to be imported from other areas, causing $$$ to leave the local economy. More imports mean greater leakage, and therefore less money staying to circulate in the local economy.

  29. Leakage? Where would leakage be a big problem? Where would it be a minor issue? How could we stop this process and benefit local economies more? ?

  30. Tourism and the Balance of Payments Balance of Payments is the difference between their imports and their exports. TOURISM IS AN EXPORT INDUSTRY (you are providing a service or a product to foreign markets for foreign dollars. Only difference is that tourism makes people bring their dollars to you)

  31. Tourism and the Balance of Payments We import more than we export. Lots of leakage Canada usually runs a negative balance on its tourism industry. Which means….

  32. Where Does the Money Go? Imported food for tourism Imported goods for tourism Locals get a taste of imported items and now want them for themselves, causing more leakage beyond the tourism sector Other raw materials to support influx of tourists

  33. Where Does the Money Go? Foreign investors in tourism industry Multinational corporations that own tourism superstructure

  34. Necessary Leakage PROMOTION! Can’t be avoided if the area wants to attract more tourists. Countries and businesses will pay for advertising in foreign markets to promote their industry.

  35. Social Impact Success or failure is usually measured economically. There has been a growing concern for years regarding the social, cultural, and physical impacts. Destination development causes social change, both positive and negative.

  36. Like what? How could extra money and tourists affect the society of a small mountain town? Changing employment patterns Increased incomes Rising property values

  37. Like what? RESENTMENT!!!!!!!! Usually a bigger deal in areas where tourism is the communities main source of income. What stage of the product life cycle would this happen at?

  38. Cultural Effects Demonstration Effect: The host community adopts the social and cultural values of visiting tourists One example: Many westerners travel to east Asia, and many cultures there have a deep love for western (specifically American) culture. Often times the visitors can adopt the values of the host culture. (Cross-adoption) Example: North American interest in foreign cuisine.

  39. Good or Bad? What do you think? Can this be a bad thing? Some believe the demonstration effect is eroding traditional cultures, destroying the reason many people travel. Can you think of any positive aspects of increased contact? Increased contact can create a demand for indigenous cultural products.

  40. Physical Impacts Destination development can affect the physical environment as well. Problems could include environmental destruction, too much stress on existing infrastructure causing pollution and congestion. Can also create and intensify conflicts over land use.

  41. Physical Impacts How could destination development HELP the local environment? Improvements to local infrastructure (water supplies, sewage, roads) Conservation efforts have saved endangered species in order to preserve the local beauty and attraction of some destinations Some developments cause landscaping that can help the local environment thrive.

  42. Deterrants What can cause people to NOT want to develop a tourist location? Fear of/current tourist overcrowding Pollution Environmental degradation Political Instability Fluctuating currency Disease epidemics “Terrorism”

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