John L. Crompton University Distinguished Professor, Regents Professor, Presidential Professor for Teaching Excellence Texas A&M University Sanya, Hainan,

Central Issues in Tourism Research and Development

John L. CromptonUniversity Distinguished Professor, Regents Professor,

Presidential Professor for Teaching ExcellenceTexas A&M University

Sanya, Hainan, October 2014

Business Travel

Recreation and Park Attractions in a Jurisdiction

Tourism

Opportunities for Local Residents

Visiting Friends and Relatives – Personal Business

Conference and

Convention Travel

Pleasure Travel –

Sphere of Interest

Segments of Travel and their Inter-relationship with Parks and Recreation

Recreation and park attractions NOT operated

by a public agency

MICRO LEVEL

Tourism Research Areas

MACRO LEVEL• Attractions• Trip patterns• Motives/benefits sought• Positioning

• Forecasting

DESTINATION HOST-GUEST INTERACTIONS

Individual tourists’ post trip evaluations• Service Quality/Satisfaction

Impacts of tourists on host community• Economic• Social• Environmental

POPULATIONAbility to TravelInterest in Travel

TRANSPORTATIONINFORMATION

AND PROMOTION

ATTRACTIONS



AND PROMOTION

ATTRACTIONS

Arts Theaters, Art Galleries, Museums, Performing Groups, Music Concerts

Heritage Places Ethnic Cultural Places, Shrines/Churches, Historical Sites and Structures, Educational Instructions, Industry Factory Tours

Parks National, State, Regional, Local, Beaches, Theme Parks

Recreation Events and Festivals, Aquatic and Coastal Areas, Outdoor recreations (e.g. camping, fishing, hunting), golf, tennis, skiing, sailing, softball), Fitness and Wellness Centers

Arenas College Sports, Professional Franchises, Concerts and Exhibitions

Other Gambling Places, Cruise Ships

A Taxonomy of Tourist Attractions



AND PROMOTION

ATTRACTIONS

AN ATTRACTION IS NOT, IT BECOMES

IT NEEDS A TOURISTA SIGHTA MARKER which provides

information about a sight

A MARKER could be a guidebook, slide show, information tablet, travelogue,

etc.

IF attractions are close together, THEN people travel a further distance AND stay longer/spend more.

WHY?

Efficient.Tourists’ costs per experience are reduced:

Economies of scale

Law of Cumulative Attraction


Attractions located in two separate areas


Two attractions located in the same area


Five attractions located in the same area

MICRO LEVEL



• Forecasting




Alternative Spatial Patterns of Pleasure Vacation Trips

HOME

A₁

Single destination pattern


HOMEA₁


B₂D₂

F₂

C₂E₂A₂

En route pattern


HOMEA₁


B₂D₂

F₂

C₂E₂A₂

En route pattern

B₃ A₃F₃

C₃E₃

D₃Base camppattern


HOME

A₄

F₄ E₄

D₄

C₄B₄Regional tourpattern


HOME

A₄

F₄

E₄

D₄

C₄

B₄

Regional tourpattern

B₅

F₅E₅

D₅

A₅C₅

Trip chainingpattern


Six attractions visited in one trip

MICRO LEVEL



• Forecasting




Marketing Myopia

Narrow, short-term thinking

TN LevittHBR July-August 1960

Marketing MyopiaNarrow, short-term thinkingPeople do not want

services/products; they want the benefits these services/products give them.

TN LevittHBR July-August 1960

What business are we in?

SLIDE

SLIDE

MOVIES 1950s

“Movies implied a specific, limited product. This produced a fatuous contentment, which from the beginning led producers to view TV as a threat. Hollywood scorned and rejected TV when it should have welcomed it as an opportunity to expand the entertainment business.”

(Levitt 1960)

Disney Entertainment

Walt Disney Film Studios ABC television network ESPN, Disney Channel, ABC Family 14 theme parks and resorts Cruise line NHL Anaheim Ducks Consumer product merchandising, toys,

clothing

What Business Are We In?

Charles Revson:

“ In the factory we make cosmetics. In the store we sell hope.”

Social interaction with friends and family kin. Social interaction with previously unknown

others. Ethnic and cultural identity A gain in prestige; social recognition; status.

The mastery of particular skills may be regarded as a form of “conspicuous consumption,’ which brings forth peer group recognition.

Excitement; an adrenaline rush; exhilaration. Ego-satisfaction of achievement and

accomplishment; a desire to be successful.

Security; to be part of a group that gives a sense of belonging, connectedness to others, and sense of affection.

The feeling of being important and having responsibility; growth of self-worth and self-confidence.

Fantasy; illusion; offering temporary escape from the realities and routines of everyday life.

Relaxation and alleviation of stress and tension, which may be obtained from hard or no physical effort.

Catharsis from “flow” to alleviate negative tensions, anxiety, anger and unwanted adrenaline.

Acquisition of knowledge; satisfaction of curiosity.

Feeling of well-being and vitality that derive both from exercise and physical fitness, and from mental alertness.

Regression; the desire to “let your hair down” and act in a puerile, adolescent way.

Aesthetic enhancement derived from being in an attractive natural environment.

Challenge and risk, which lead to self-exploration, self-discovery, and self-development and may be obtained from sailing or skydiving, or from acting, dancing, or fly fishing.

Why am I doing this?

Why Do People Go Fishing?

To: Experience the outdoors Develop skills Pit wits with the fish Be with friends Share skills with others – especially children Mental change and relaxation Escape from pressures of everyday life Take a trophy Get food

Motivations for Pleasure Travel (1979)[Benefits tourists want] Escape from a perceived mundane

environment


environment Exploration and evaluation of self


environment Exploration and evaluation of self Mental relaxation


environment Exploration and evaluation of self Mental relaxation Prestige


environment Exploration and evaluation of self Mental relaxation Prestige Enhancement of family relationships


environment Exploration and evaluation of self Mental relaxation Prestige Enhancement of family relationships Social interaction with others beyond the family


environment Exploration and evaluation of self Mental relaxation Prestige Enhancement of family relationships Social interaction with others beyond the family Curiosity; desire for more knowledge


environment Exploration and evaluation of self Mental relaxation Prestige Enhancement of family relationships Social interaction with others beyond the family Curiosity; desire for more knowledge Regression to juvenile behavior

MICRO LEVEL



• Forecasting




Positioning is a relative rather than absolute concept (c.f. image)

Differentiates between: destinations/attractions Market segments

Positioning

Benefits sought by different visitor groups from the lower Rio Grande Valley of Texas

GoodProspects

First-timeVisitors

RepeatVisitors

Factor I:Social Contact

Factor II:Curiosity

Factor III:Temperature

-.214b -.076b .178a

.190a .058a -.143b

-.037b .121a -.077b

MICRO LEVEL



• Forecasting




Performance = Expectations Acceptable SQ/S

Performance > Expectations High SQ/S

Performance < Expectations Low SQ/S

Satisfaction (S) and Service Quality (SQ)

Satisfaction = tourist’s quality of experience

Difference Between Satisfaction and Service Quality


Service Quality = tourist’s perception of the quality of opportunity/service provided by the supplier



Service Quality = tourist’s perception of the quality of opportunity/service provided by the supplier

SQ Intervening Factors Satisfaction


e.g. weather mood companions

Tangibles

Five Dimensions of Service Quality

Appearance of physical facilities, equipment, personnel, and communication materials

Tangibles

Reliability


• Appearance of physical facilities, equipment, personnel, and communication materials

• Ability to perform the promised service dependably and accurately

Tangibles

Reliability

Responsiveness


• Appearance of physical facilities, equipment, personnel, and communication materials• Ability to perform the promised service dependably and accurately

• Willingness to help customers and provide prompt service

Tangibles

Reliability Responsiveness

Assurance




• Knowledge and courtesy of employees and their ability to convey trust and confidence

Tangibles

Reliability Responsiveness

Assurance

Empathy




• Knowledge and courtesy of employees and their ability to convey trust and confidence

• Caring, individualized attention the firm provides its customers

MICRO LEVEL



• Forecasting




Context1810 players on 133 teams participated in the tournament. All were from out-of-town. Because it was an elimination tournament, the length of time that the teams stayed in the community varied from 4 to 7 nights. 697 players’ parents were interviewed.

Financial DataIncome: Entry fees $300 x 133 $39,900Tournament costs and staff time $119,617

Net loss ($79,717)Economic Data

Total expenditures in the local area by the 1810 players and their family/friends $2,039,000Economic impact on sales $3,731,000Economic impact on income $1,162,000

Return on investmentFor each dollar invested, residents’ income increased by $14.58 (1,162,000/79,717). Facility cost $12 million; payback period to residents is 10 tournaments of this size.

A comparison of the Financial and Economic Returns to a City from an Amateur Softball Association Girls 18 & Under Class A National Softball Championship Tournament

The Conceptual Rationale For Undertaking Economic Impact Studies

FINISH START

For community residents who pay

taxes

Community residents & visitors pay

taxesTo a city council

Which uses them to subsidize

development of recreation

programs and facilities

That attract out-of-town visitors

Creating income and jobs in the

community

Who spend money in the local economy

Inflow of Revenues

Outflow of Funds

Parks attract non-resident visitors to the area

These visitors spend money in the local area

This new money creates income and jobs for area residents

State Parks as “Economic Engines”

Mustang Island State Park

(145,711 visitor days)

Salaries and operating expenses $809,500

Revenue $632,000

Net Loss $177,500

Example of a Park as an Economic Engine

BUT49% of visitor days (i.e. 71,566) are from outside the county and on each visitor day they spend $9.76 each outside the park but inside Nueces County i.e. &678,500

BUT49% of visitor days (i.e. 71,566) are from outside the county and on each visitor day they spend $9.76 each outside the park but inside Nueces County i.e. &678,500

New money into the county:$809,500 + $698, 500 $1,508,000

Impact on sales (1.71):$1,384,000 + $1,190,000 $2,574,000

Impact on personal income:$753,000 + $631,000 $1,384,000

Impact on employement:25 jobs + 21 jobs 46 jobsAverage pay for each job is $30,088

So

Every $1 of net state funds invested in Mustang Island State Park yields $7.83 in income for Nueces County residents ($1,384,000/$177,500)

The cost to the state of each job created is $3,850 ($177,500/46 jobs)

MICRO LEVEL



• Forecasting




Documents

John L. Crompton University Distinguished Professor, Regents Professor, Presidential Professor for Teaching Excellence Texas A&M University Sanya, Hainan,