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Invited Presentation Invited Presentation to to Universidad de las Américas Universidad de las Américas Puebla, Mexico Puebla, Mexico Fifth International Congress Fifth International Congress "Reto Negocios“ "Reto Negocios“ April 3-5, 2003 April 3-5, 2003 Dr. Brent Ritchie Chair, World Tourism Education & Research Centre, University of Calgary and Chair, World Tourism Organization, Tourism Education Council 1

Meeting Business Challenges in Tourism Destination Management

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Page 1: Meeting Business Challenges in Tourism Destination Management

Invited PresentationInvited Presentationtoto

Universidad de las AméricasUniversidad de las AméricasPuebla, MexicoPuebla, Mexico

Fifth International CongressFifth International Congress"Reto Negocios“"Reto Negocios“April 3-5, 2003April 3-5, 2003

Dr. Brent RitchieChair, World Tourism Education & Research Centre, University of Calgary

andChair, World Tourism Organization, Tourism Education Council

11

Page 2: Meeting Business Challenges in Tourism Destination Management

Meeting Business ChallengesMeeting Business Challengesin

PART IPART I Tourism Destination Tourism Destination

ManagementManagementand

PART IIPART II Global Tourism EducationGlobal Tourism Education

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Page 3: Meeting Business Challenges in Tourism Destination Management

PART IPART IMeeting Strategic Challenges in Meeting Strategic Challenges in

Destination Management:Destination Management:

Conceptual andConceptual andEmpirical PerspectivesEmpirical Perspectives

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Page 4: Meeting Business Challenges in Tourism Destination Management

First of all…First of all…

What is What is Good Good Destination Destination Management?Management?

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Page 5: Meeting Business Challenges in Tourism Destination Management

One Measure is…One Measure is…

1) Destination 1) Destination CompetitivenessCompetitiveness the competitiveness of one the competitiveness of one destination relative to other destination relative to other destinationsdestinations

““Puebla is butPuebla is but

one Destination...”one Destination...”

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Page 6: Meeting Business Challenges in Tourism Destination Management

Comparative AdvantageComparative Advantage–resource endowmentsresource endowments

Competitive AdvantageCompetitive Advantage–resource deploymentresource deployment

INPUTMEASURES

The Elements of Destination The Elements of Destination CompetitivenessCompetitiveness

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Page 7: Meeting Business Challenges in Tourism Destination Management

Another Measure is Good…Another Measure is Good…

2) Destination 2) Destination PerformancePerformance

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Page 8: Meeting Business Challenges in Tourism Destination Management

How do we measure Destination How do we measure Destination Performance?Performance?

Destination PerformanceDestination Performance–economic measureseconomic measures–sustainability measuressustainability measures–visitor satisfaction measuresvisitor satisfaction measures–quality of management actionquality of management action measures measures

OUTPUT

MEASURES

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Page 9: Meeting Business Challenges in Tourism Destination Management

A Third Measure is…A Third Measure is…

3) Successful Goal 3) Successful Goal AchievementAchievement with respect to goals set by with respect to goals set by Destination StakeholdersDestination Stakeholders

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Page 10: Meeting Business Challenges in Tourism Destination Management

An Overall Model ofAn Overall Model ofDestination Management Destination Management (DM)(DM)

Where DM is designed to achieve:Where DM is designed to achieve:–destination competitivenessdestination competitiveness–destination performancedestination performance–destination successdestination success–destination sustainabilitydestination sustainability

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Page 11: Meeting Business Challenges in Tourism Destination Management

CO

MP

ETIT

IVE (

MIC

RO

) EN

VIR

ON

MEN

TG

LO

BA

L (M

AC

RO

) EN

VIR

ON

MEN

T

DESTINATION POLICY, PLANNING & DEVELOPMENT

Philosophy/ Values

Vision Audit

Positioning/Branding

SystemDefinition

Development Monitoring &Evaluation

Competitive/Collaborative

Analysis

DCSModel-colour(v12).ppt – © RITCHIE & CROUCH, FEB 2003

Awareness/Image

QUALIFYING & AMPLIFYING DETERMINANTS

Location InterdependenciesSafety/Security Cost/Value Carrying Capacity

Hospitality

SUPPORTING FACTORS & RESOURCESInfrastructure Accessibility Facilitating Resources Enterprise Political Will

CompetitiveAdvantages

(resourcedeployment)

* Audit & inventory

* Maintenance

* Growth and development

* Efficiency

* Effectiveness

ComparativeAdvantages

(resourceendowments)

* Human resources

* Physical resources

* Knowledge resources

* Capital resources

* Infrastructure and tourism superstructure

* Historical and cultural resources

* Size of economy

DESTINATION MANAGEMENT

ResourceStewardshipMarketingOrganization Information/

ResearchVisitor

Management

HumanResource

Development

Finance&

VentureCapital

Qualityof

Service/Experience

CrisisManagement

Entertainment

CORE RESOURCES & ATTRACTORSPhysiographyand Climate Culture & History Market TiesMix of Activities Special Events Superstructure

11

Page 12: Meeting Business Challenges in Tourism Destination Management

Appearing in June fromAppearing in June fromCABI Publishing (UK):CABI Publishing (UK):

““The Competitive Destination:The Competitive Destination:A Sustainable Tourism Perspective”A Sustainable Tourism Perspective”

byJ.R. Brent RITCHIE (University of Calgary, Canada)

andGeoffrey I. CROUCH (LaTrobe University, Australia)

12

Page 13: Meeting Business Challenges in Tourism Destination Management

NOW,NOW,Let’s ask ourselves…Let’s ask ourselves…

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What are some of theWhat are some of theSTRATEGIC ISSUES inSTRATEGIC ISSUES in

Enhancing Destination Enhancing Destination

CompetitivenessCompetitiveness??

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Page 15: Meeting Business Challenges in Tourism Destination Management

What are some of theWhat are some of theSTRATEGIC ISSUES inSTRATEGIC ISSUES in

Improving Destination Improving Destination

PerformancePerformance??

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Page 16: Meeting Business Challenges in Tourism Destination Management

What are some of theWhat are some of theSTRATEGIC ISSUES inSTRATEGIC ISSUES in

Achieving Destination Achieving Destination

SuccessSuccess??

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What are some of theWhat are some of theSTRATEGIC ISSUES inSTRATEGIC ISSUES in

Enhancing Destination Enhancing Destination

SustainabilitySustainability??

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Page 18: Meeting Business Challenges in Tourism Destination Management

FIRST…FIRST…Must Provide Effective ResearchMust Provide Effective Research Designed to provide knowledge and Designed to provide knowledge and

understanding of new trends in understanding of new trends in tourism demand & competitive tourism demand & competitive behaviourbehaviour

Must also understand:Must also understand:– the competitionthe competition– what residents wantwhat residents want– how to enhance performancehow to enhance performance

““Understanding the tourist is Understanding the tourist is critical”critical”

– but it is not everything!– but it is not everything!

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ALSO, Must obtain an ALSO, Must obtain an Accurate MeasurementAccurate Measurement

of the Impact of Tourismof the Impact of Tourism

especially at the local levelespecially at the local level but also at the regional & but also at the regional &

national levelnational level NOTE: the emergence of the NOTE: the emergence of the

Tourism Satellite AccountTourism Satellite Account (TSA) (TSA)

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Page 20: Meeting Business Challenges in Tourism Destination Management

A Shared Destination VisionA Shared Destination Vision

there must be a consensus there must be a consensus among stakeholders as to what among stakeholders as to what kind of tourism destination kind of tourism destination residents really wantresidents really want

2020

Page 21: Meeting Business Challenges in Tourism Destination Management

A cooperative relationship & A cooperative relationship & synergy among Destination synergy among Destination Stakeholders is essentialStakeholders is essential

Shared, Effective ActionShared, Effective Action

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Every Destination Needs…Every Destination Needs…

A Destination Management A Destination Management Organization (DMO) that Organization (DMO) that provides effective leadership and provides effective leadership and coordination of efforts to achieve coordination of efforts to achieve the destination visionthe destination vision

This may be:This may be:– a National Tourism Organizationa National Tourism Organization– a City Convention & Visitor Bureaua City Convention & Visitor Bureau

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Page 23: Meeting Business Challenges in Tourism Destination Management

Must Not Overlook…Must Not Overlook…

Insightful Insightful policy policy formulation, formulation, strategic strategic planning, and planning, and developmentdevelopment

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A Destination Won’t Function A Destination Won’t Function without…without…

Public/private Public/private cooperation/partnershipcooperation/partnershipat the destination level to ensure at the destination level to ensure timelytimely& appropriate& appropriatedevelopmentdevelopment

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Visitation is stimulated by…Visitation is stimulated by…

Effective promotion/marketing to Effective promotion/marketing to create destination awareness, create destination awareness, knowledge, and choiceknowledge, and choice

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Page 26: Meeting Business Challenges in Tourism Destination Management

Often overlooked isOften overlooked isa strong program of…a strong program of…

Human resources development Human resources development and managementand management

““This is where Tourism Education Fits in”This is where Tourism Education Fits in”

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Page 27: Meeting Business Challenges in Tourism Destination Management

Destinations must understand that Destinations must understand that they don’t just provide tourism they don’t just provide tourism products or services…products or services…

““They provide tourism/visitor experiences”They provide tourism/visitor experiences”

““the the totaltotal travel travel

experience”experience”

ResidenceResidence

Taxi to

Airport

Taxi to

Airport

Airport Service

s

Airport Service

s

Air Travel

Air Travel

CarRental

CarRental Meal

sMeal

s

Hotel

Hotel

ThemePark

ThemePark

Visit with RelativesVisit with Relatives

Trip toLocal Zoo

Trip toLocal Zoo

RestaurantMeal

RestaurantMeal

Taxi toAirportTaxi toAirport

AirTravel

AirTravel

Taxi backHome

Taxi backHome

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Each destination has a need forEach destination has a need fora critical mass of destination a critical mass of destination experiences to provide a experiences to provide a competitive destinationcompetitive destination

““What EXPERIENCES does Puebla offer?”What EXPERIENCES does Puebla offer?”

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Must recognize the ongoing need for Must recognize the ongoing need for innovative experience development innovative experience development and management to build, operate, and management to build, operate, and maintain the critical mass of and maintain the critical mass of appealing experiencesappealing experiences

““Who is responsible for developingWho is responsible for developingnew experiences in Puebla?”new experiences in Puebla?”

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Need for implementation of new Need for implementation of new quality practices as the quality practices as the destination is developeddestination is developed

““Try to get better, day by day”Try to get better, day by day”

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Must not forget the requirement Must not forget the requirement for effective integration and use for effective integration and use of current and new information of current and new information and communication technologiesand communication technologies

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Lately, more and more destinations Lately, more and more destinations are recognizing the need for are recognizing the need for environmental management;environmental management;the sustainability, and stewardship of the sustainability, and stewardship of natural resourcesnatural resources

““Don’t spend your natural capital”Don’t spend your natural capital”

““Care for the natural capital that you have”Care for the natural capital that you have”3232

Page 33: Meeting Business Challenges in Tourism Destination Management

And also, must keep in mind the And also, must keep in mind the Socio-cultural management; Socio-cultural management; sustainability, stewardship ofsustainability, stewardship ofsocio-cultural resourcessocio-cultural resources

““Sustainability is a multi-pillar concept”Sustainability is a multi-pillar concept”

““Puebla contains a wealth ofPuebla contains a wealth ofcultural resources”cultural resources”

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Page 34: Meeting Business Challenges in Tourism Destination Management

Crisis management – the emerging Crisis management – the emerging side of stewardship that has been side of stewardship that has been forced upon destinationsforced upon destinations

Crisis management – need to Crisis management – need to maintain security/safety of maintain security/safety of destination visitorsdestination visitors

““9/11 2001” in New York9/11 2001” in New Yorkandand

More recent events in Bali, IndonesiaMore recent events in Bali, Indonesiaare more extremes of the need for securityare more extremes of the need for security

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Must not forget!Must not forget!

the maintenance of competitive the maintenance of competitive cost/value to and within the cost/value to and within the destinationdestination

““Just take a look at the Travel SectionJust take a look at the Travel Sectionof your week-end newspaperof your week-end newspaper

to see the importance of price”to see the importance of price”

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Too many of us totally neglect…Too many of us totally neglect…

HOSPITALITY – the need to make HOSPITALITY – the need to make visitors feel welcome and visitors feel welcome and comfortablecomfortable

““Smile, you’re aSmile, you’re a

Tourist Tourist Attraction!”Attraction!”

““Smile, you’re aSmile, you’re a

Tourist Tourist Attraction!”Attraction!”

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Page 37: Meeting Business Challenges in Tourism Destination Management

And finally, don’t forget…And finally, don’t forget…if you if you do notdo not provide a provide a competitive destination…competitive destination…

SOMEBODY ELSE WILL!!SOMEBODY ELSE WILL!!

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Page 38: Meeting Business Challenges in Tourism Destination Management

PART IIPART IIMeeting Challenges in Meeting Challenges in

Global Tourism EducationGlobal Tourism EducationThe Role & Activities of the The Role & Activities of the

World Tourism Organization’s World Tourism Organization’s Tourism Education Council Tourism Education Council

(T Ed Council)(T Ed Council)

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3939

Composition of the T Ed Council:Composition of the T Ed Council:

– 100 members worldwide100 members worldwide

– leading programs of Tourism in the worldleading programs of Tourism in the world

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What Does the T Ed Council Do?What Does the T Ed Council Do?

1.1. Seeks to Enhance the qualitySeeks to Enhance the quality

ofof

Tourism EducationTourism Education

viavia

TedQualTedQual Accreditation Process Accreditation Process

Page 41: Meeting Business Challenges in Tourism Destination Management

4141

What Does the T Ed Council Do?What Does the T Ed Council Do?

2.2. Coordinates Research by Coordinates Research by leading scholars world wideleading scholars world wide

Personnel Needs of TourismPersonnel Needs of Tourism

Destination Performance IndexDestination Performance Index

Destination Image StudyDestination Image Study

Page 42: Meeting Business Challenges in Tourism Destination Management

4242

What Does the T Ed Council Do?What Does the T Ed Council Do?

Meets 3 times per year in MadridMeets 3 times per year in Madrid

Coordinates Activities via e-mailCoordinates Activities via e-mail

Page 43: Meeting Business Challenges in Tourism Destination Management

Also, Don’t Forget…Also, Don’t Forget…

Appearing in June fromAppearing in June from

CABI Publishing (UK):CABI Publishing (UK):

““The Competitive Destination:The Competitive Destination:

A Sustainable Tourism Perspective”A Sustainable Tourism Perspective”by

J.R. Brent RITCHIE (University of Calgary, Canada)and

Geoffrey I. CROUCH (LaTrobe University, Australia)

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Page 44: Meeting Business Challenges in Tourism Destination Management

Other Titles by J.R. Brent RitchieOther Titles by J.R. Brent Ritchie

TOURISM:Principles, Practices, Philosophies9th EditionCharles R. GoeldnerJ.R. Brent RitchiePublisher: John Wiley & Sons, NY (2003)ISBN: 0-471-40061-0

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Other Titles by J.R. Brent RitchieOther Titles by J.R. Brent Ritchie

Travel, Tourism, and Hospitality Research:A Handbook for Managers and ResearchersJ.R. Brent RitchieCharles R. GoeldnerPublisher: John Wiley & Sons, NY (1994)ISBN: 0-471-58248-4

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Questions?!Questions?!

Comments?!Comments?!