How to develop and manage a tourism destination. Juan Carlos Belloso Future Places

Transcript

1 How to develop and manage a tourism destination Juan Carlos Belloso Future Places

2 Tourism is no economic panacea and is best suited as a supplement to the local economy.

3 Planning for Sustainability

4 Sustainable Development Sustainability principles refer to the environmental, economic and socio-cultural aspects of tourism development, and a suitable balance must be established between these three dimensions to guarantee its long-term sustainability.

5 Sustainable Tourism Development Sustainable tourism development meets the needs of tourists and host regions while protecting and enhancing opportunities for the future. It is envisaged as leading to management of all resources in such a way that economic, social and aesthetic needs can be fulfilled while maintaining cultural integrity, essential ecological processes, biological diversity and life support systems. World Tourism Organisation

6 Planning for Sustainability

7 Step 1: What do we want to do? what are we aiming to achieve in the short term? in the long term? why do we need to do this? what time frames are we working to?

8 Tourist Area Life Cycle

9 Step 1: What do we want to do? How many inbound tourists does the destination want to attract? What alliances do you want to create? How many jobs, for whom, at what pay scales, and for what seasons What is the anticipated percentage increase of income for local residents? How many tourists are too many?

10 Challenge

11 The World (Re)Discovers Saudi Arabia?

12 Step 2: Who is or needs to be involved? Sources: Sabre Holdings, 2010, TUI, Deloitte via David s Brown presentation titled: Sustainable Tourism - Impacts On and Off the Beaten Path

13 Sources: Sabre Holdings, 2010, TUI, Deloitte via David s Brown presentation titled: Sustainable Tourism - Impacts On and Off the Beaten Path

14 Step 3: What is Known?What Have We Got

15 Tourism Resource Audit Natural Flora Landscape Fauna Climate - Weather Cultural Heritage Religious Indigenous Culture Events Festivals Tournaments Business - Others Activities Recreational Services - Facilities Services Transport Accommodation Reception Catering - Other

16 DON T JUST LIST YOUR RESOURCES

17 Evaluate!

18 Types of Tourism Resources Stage 1 Resource Evaluation What Could a Visitor See in this area which might be of interest? What are the different types of attractions they could visit? What type of services would they require? What different activities could they do during their stay? If staying overnight, what accommodation is available?

19 Step 4: What makes the region/place special?

20 Result: Value Statement

21 Step 5: What are the issues?

22 Key Areas to Consider visitor & community experience environment/ heritage management and impacts infrastructure issues market/marketing issues tourism product availability economic cost/benefit issues training/capacity building strategic and resource context approvals and regulation

23 Step 6: Analyzing issues Key analytical methods may include: market analysis heritage conservation analysis SWOT analysis situational analysis cost benefit analysis priority analysis

24

25 Step 7: Objectives to Guide Action- Where We Want to Go

26 Be Specific Measurable Achievable Realistic Time bound

27

28 Step 8: What are your ideas and options? Consider options by 1. Developing ideas 2. Presenting ideas or options for testing 3. Analysing issues further, if needed 4. Developing recommended option/s 5. Seeking agreement on preferred option/s

29 Step 9: How to Do it?- Action Plan

30 Step 9: How to Do it?- Action Plan

31 Step 10: Statement of Directions Think of it as an Executive Summary or Conclusion including: the key heritage and tourism assets of the region, place or product the key issues and the agreements and outcomes reached between parties

32

33

34 Building a Destination Marketing Strategy A Best Practice Approach

35 Where We Are Now & What Have We Got? Understanding tourism demand & supply Who Do We Want? Selecting the Tourist How Do We Get Them? Developing a Marketing Plan Keeping the Tourist Destination Welcome & Customer Care Measure Success Performance Monitoring & Evaluation

36 Where We Are Now & What Have We Got

37 Tourist Area Life Cycle

38 Who Do We Want?

39 Know Your Customer Desk research of secondary sources Sales, bookings, and reservation records Visitor information records, e.g., guest registration cards, booking form data, call center orwebsite data Trade association data Intergovernmental organizations reports (UNWTO, WTTC) Commercial analysis available from subscriptions Press clippings about competitor activities Qualitative or exploratory research Focus group discussions to identify perceptions Attendance at trade shows Observation of visitor behavior at or around a site Trends in the external operating environment of travelers Quantitative research Traveler behavior pattern studies Surveys of visitor perceptions Customer satisfaction surveys Industry surveys of perceptions and challenges

40 Selecting the Tourist Nature-Based + Cultural Oriented Travelers Eco-Tourism at the Core? Families with Kids + Seniors + Young Couples + Youth/Backpackers Foreign Tourists Vs Domestic Vs VFR Europe, US, Asia Intra-Regional Travelers Business & Leisure

41 How Do We Get Them?

42 Build your Competitive Advantage

43 Sell more of the existing product to repeat tourists or to sell the existing product to new tourists from exisisting tourist segments Sell a new product to existing tourist segments Sell the existing product to new tourist segments Sell a new product to new tourist segments

44 Santa Armenia: Claus Where is coming Sandaramet to town: Made North Her Pole Shifts Wines to Siberia!

45 Establish Your Destination Identity & Positioning Statement

46

47

48 Create Innovative Experiences and Quality Content

49

50

51

52 Storytelling based on Emotions

53

54 It s not an one-way communication anymore

55

56 Follow the Journey

57 The Visitor Journey

58

59 Be Where Your Customers Are

60

61

62

63

64 Keeping the Tourist

65 It s not all about them

66 Attitudes towards Tourism

67 Attitudes towards Tourism

68 Measuring Success

69 Destination Management Organizations: Role & Characteristics

70 Role of DMOs Developing a DMO iteratively relies on identifying and redefining a destination vision through collaboration.

71 Basic Responsibility = Tourism Promotion? Developmental Planning Tourism data Research & Analysis Tourism Product Development & Management Marketing, Sales & Promotion Empowerment & Support of Local Tourism Industry

72 Role of DMOs

73 F R O M D E S T I N A T I O N M A R K E T I N G T O D E S T I N A T I O N M A N A G E M E N T

74 Thank You

75 Destination Management Organizations: Role & Characteristics

76 Role of DMOs Developing a DMO iteratively relies on identifying and redefining a destination vision through collaboration.

77 Role of DMOs

78 Destination Management Organizations

79 Myth #1 A strictly national (or regional) affair.. DMOs exist & operate at all geopolitical levels

80 Almost all local destinations have relevant structures

81 Myth #2 Public Bodies only? Mixed Structures Mixed Funding

82 Μύθος #3 Υψηλό Κόστος & Αμφίβολα Αποτελεσματα Το Κόστος Λειτουργίας ενός DMO καθορίζεται & εκτιμάται σχετικά με τα οφέλη που τελικώς αποφέρει στον τουριστικό προορισμό και στους εταίρους που τον απαρτίζουν

83 Μύθος #3 Υψηλό Κόστος & Αμφίβολα Αποτελεσματα Το Κόστος Λειτουργίας ενός DMO καθορίζεται & εκτιμάται σχετικά με τα οφέλη που τελικώς αποφέρει στον τουριστικό προορισμό και στους εταίρους που τον απαρτίζουν

84 Μύθος #3 Υψηλό Κόστος & Αμφίβολα Αποτελεσματα Το Κόστος Λειτουργίας ενός DMO καθορίζεται & εκτιμάται σχετικά με τα οφέλη που τελικώς αποφέρει στον τουριστικό προορισμό και στους εταίρους που τον απαρτίζουν

85 Μύθος #3 Υψηλό Κόστος & Αμφίβολα Αποτελεσματα Το Κόστος Λειτουργίας ενός DMO καθορίζεται & εκτιμάται σχετικά με τα οφέλη που τελικώς αποφέρει στον τουριστικό προορισμό και στους εταίρους που τον απαρτίζουν

86 Myth #3 High Operational Costs & Questionable Efficiency A DMO s operational cost is determined & evaluated based on the benefits it brings to the destination and to its stakeholders

87 Μύθος #3 Υψηλό Κόστος & Αμφίβολα Αποτελεσματα Το Κόστος Λειτουργίας ενός DMO καθορίζεται & εκτιμάται σχετικά με τα οφέλη που τελικώς αποφέρει στον τουριστικό προορισμό και στους εταίρους που τον απαρτίζουν

88 Μύθος #3 Υψηλό Κόστος & Αμφίβολα Αποτελεσματα Το Κόστος Λειτουργίας ενός DMO καθορίζεται & εκτιμάται σχετικά με τα οφέλη που τελικώς αποφέρει στον τουριστικό προορισμό και στους εταίρους που τον απαρτίζουν

89 Μύθος #3 Υψηλό Κόστος & Αμφίβολα Αποτελεσματα Το Κόστος Λειτουργίας ενός DMO καθορίζεται & εκτιμάται σχετικά με τα οφέλη που τελικώς αποφέρει στον τουριστικό προορισμό και στους εταίρους που τον απαρτίζουν

90 Μύθος #3 Υψηλό Κόστος & Αμφίβολα Αποτελεσματα Το Κόστος Λειτουργίας ενός DMO καθορίζεται & εκτιμάται σχετικά με τα οφέλη που τελικώς αποφέρει στον τουριστικό προορισμό και στους εταίρους που τον απαρτίζουν

91 Μύθος #3 Υψηλό Κόστος & Αμφίβολα Αποτελεσματα Το Κόστος Λειτουργίας ενός DMO καθορίζεται & εκτιμάται σχετικά με τα οφέλη που τελικώς αποφέρει στον τουριστικό προορισμό και στους εταίρους που τον απαρτίζουν

92 Μύθος #3 Υψηλό Κόστος & Αμφίβολα Αποτελεσματα Το Κόστος Λειτουργίας ενός DMO καθορίζεται & εκτιμάται σχετικά με τα οφέλη που τελικώς αποφέρει στον τουριστικό προορισμό και στους εταίρους που τον απαρτίζουν

93 Myth #4 Non Profit organizations BUT The majority of DMOs have a major income from commercial activity service/ product sales

94 Μύθος #3 Υψηλό Κόστος & Αμφίβολα Αποτελεσματα Το Κόστος Λειτουργίας ενός DMO καθορίζεται & εκτιμάται σχετικά με τα οφέλη που τελικώς αποφέρει στον τουριστικό προορισμό και στους εταίρους που τον απαρτίζουν

95 Myth #5 Basic Responsibility = Tourism Promotion Developmental Planning Tourism data Research & Analysis Tourism Product Development & Management Marketing, Sales & Promotion Empowerment & Support of Local Tourism Industry

96 The Challenge

97

98

99

100

101

102

103

104

105 R.O.I. more critical today than ever before.

106 What would be the role of DMOs in 10 years from now?

107 we need to go back to the future

108 F R O M D E S T I N A T I O N M A R K E T I N G T O D E S T I N A T I O N M A N A G E M E N T

109 Not just a good promoter.. aiming to achieve Service Excellence

110 and become the stage manager

111 not just a good promoter..

112 DMOs will need to: Do less and enable more Develop and share the tools Promote less, and attract more Focus on partnerships, development, management and innovation Focus on ROI Need to make their declining marketing resources, used jointly and deliver more tourism spend

113 Where We Are Now & What Have We Got

114 Tourist Area Life Cycle

115 Challenge Becoming a Destination within the Destination

116 What Have We Got? Natural Flora Landscape Fauna Climate - Weather Cultural Heritage Religious Indigenous Culture Events Festivals Tournaments Business - Others Activities Recreational Services - Facilities Services Transport Accommodation Reception Catering - Other

117 Who Do We Want?

118 Know Your Customer Desk research of secondary sources Sales, bookings, and reservation records Visitor information records, e.g., guest registration cards, booking form data, call center orwebsite data Trade association data Intergovernmental organizations reports (UNWTO, WTTC) Commercial analysis available from subscriptions Press clippings about competitor activities Qualitative or exploratory research Focus group discussions to identify perceptions Attendance at trade shows Observation of visitor behavior at or around a site Trends in the external operating environment of travelers Quantitative research Traveler behavior pattern studies Surveys of visitor perceptions Customer satisfaction surveys Industry surveys of perceptions and challenges

119 Selecting the Tourist Nature-Based + Cultural Oriented Travelers Eco-Tourism at the Core? Families with Kids + Seniors + Young Couples + Youth/Backpackers Foreign Tourists Vs Domestic Vs VFR Germany, France, GB, China Intra-Regional Travelers Business & Leisure

120 How Do We Get Them?

121 Build your Competitive Advantage

122 Sell more of the existing product to repeat tourists or to sell the existing product to new tourists from exisisting tourist segments Sell a new product to existing tourist segments Sell the existing product to new tourist segments Sell a new product to new tourist segments

123 Product Quality Price Leadership Distribution Communications

124 Santa Armenia: Claus Where is coming Sandaramet to town: Made North Her Pole Shifts Wines to Siberia!

125 Establish Your Destination Identity & Positioning Statement

126

127 Create Innovative Experiences and Quality Content

128

129

130

131 Storytelling based on Emotions

132

133 It s not an one-way communication anymore

134

135 Follow the Journey

136 The Visitor Journey

137

138 Be Where Your Customers Are

139

140

141

142

143 Keeping the Tourist

144 Five Key Themes for Keeping the Tourism Destination Welcome Godfrey & Clark Customer Care STRATEGY Tourist Focus Authenticity Quality Innovation Integration PROCESS PEOPLE

145 Virgin America Tweet by Tweet

146

147

148 Quality Services - Manchester Info Centre

149 It s not all about them

150 Attitudes towards Tourism

151 Attitudes towards Tourism

152 Measuring Success

153 Thank You Manolis Psarros CEO/aboutourism

154 Global Tourism Trends: A Destination Perspective

155 #1 Global Growth but Modest Global economic growth remains polarized, with emerging economies growing strongly & developed countries stagnating Arrivals from BRICs continue boosting tourism while Europe & the US are still vulnerable to austerity measures & traveller caution

156 #1 Global Growth but Modest International tourism Receipts grew by 4% to 1,75 trillion USD in 2012

157 #1 Global Growth but Modest So did International tourism Arrivals: 4% growth to 1.35 billion in 2012 Arrivals are expected to grow at 3-4 % for 2013

158 #1 Global Growth but Modest

159 #1 Global Growth but Modest

160 oil prices to remain elevated throughout 2013

161 #2 Focus on Emerging Markets The BRICs will dominate the next 10 to 20 years of global tourism, growing twice as fast as the average country China = the new number one tourism source market in the world (UNWTO)

162 #2 Focus on Emerging Markets China 47.1 million tourists traveled from China in 2012 Of these, 17.0 million (36.2%) traveled to long haul destinations Chinese tourist arrivals to Europe in 2012 totaled 5.7 mill 33.4% of the Chinese long haul outbound market. Chinese tourist arrivals to Northern Europe = 6.5% of Chinese arrivals to Europe in 2012 (ETC, 2013)

163 #2 Focus on Emerging Markets Russia Russian tourists now comprise around 5% of international arrivals in all European destinations, up from less than 3% in 2005 (ETC, 2013)

164 BUT it is not just the BRICs anymore!

165 The numbers sure are juicy: in 2013, the GDP of emerging markets will exceed advanced markets for the first time (measured in Purchasing Power Parity terms) to USD 44.1 trillion versus USD 42.7 trillion (Source: IMF, October 2012).

166 N11 = the Next Big Thing Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, Turkey, South Korea & Vietnam Growth economies driven by: large, growing populations with solid domestic consumption & Infrastructure investments

167 #3 Multi-Destination Vacations Because travellers want to get the most out of their vacations, there has been an up tick in multi-destination vacations

168 #4 Not Just Seeing but Learning The popularity of educational travel will continue to thrive in Travellers are interested in learning and doing, not just seeing.

169 #5 Multi-Generational Travel Families travel together. grandparents taking their kids and grandkids, not just to Disney, but on Safari, for instance

170 #6 Your Money Matters Travellers seek for more social/nature responsible travel packages with direct benefits for the local communities But they are not willing to pay EXTRA for it! The expectation is that it is the responsibility of the destination itself and of the private operators to develop the appropriate sustainable tourism policies & activities

171 Have you got what it takes?

172 #8 Last-Minute Vacations Demand for last minute offers & deals is growing and so is their search online

173 #9 Alternative Transport Driven by the increased cost of flying, travel will begin to develop alternative options. A number of new luxury trains have launched in the past year, causing a renewed interest in rail travel that will increase throughout 2013.

174 #10 Off-Season Travel India in May ( the prices are great, and the temperature is in the 80s and there are few visitors at the sites ); Botswana during the Green Season ( wonderful birding after the Big Rains ); Brazil and Turkey in October (pre and post tourist seasons); Moscow during Christmastime; and China in March and April ( decent weather and few visitors )

175 #11 End of the Earth Journeys Russian Far East, Greenland; Central Asian spots such as Uzbekistan; and offshore destinations such as the Falkland Islands and Papua New Guinea

176 #12 Slow Travel Expect to see more businesses promoting slow, memorable travel where getting there is an important if not the most important element of the holiday.

177 #13 Personalization at a new level Travel services increasingly start to take full advantage of all the data available through technology to deliver a truly bespoke experience, effortlessly Moving beyond mere recommendations and towards almost strangely accurate and tailored service delivery e.g. British Airways Know Me program = Data-Centric Personalization

178 #14 Technology at the Core

179 Mobile is moving to center stage, as consumers take up smartphones & tablets and a growing share of web traffic comes from the portable devices

180

181 The Age of Tablet Begun 31% of US owns a tablet computer 107% growth in tablet ownership in 2012 from 2011 (emarketer) 55% of ALL Travelocity mobile bookings came from tablets (Travelocity Data)

182 Smart TVs are expected to drive Travel Bookings. Growth is driven by consumers desire to access internet through their TV NTOs, travel retailers, hotels, airlines and car rental players can establish a presence on smart TVs through apps and internet TV channels, as well as sponsoring travel programmes

183 Social Media is particularly important in the first & last stages of the decision cycle with 88% of travellers under 34 using Facebook to inspire their destination choice (Text100, 2012). Stikkymedia, 2012

184 Facebook is not necessarily a Strategy anymore.. What s your niche?

185 Almost every traveler likes watching online videos about voyages and featured destinations, according to Google The 46% of leisure travelers that watch online video to make up their minds about the future trip rises all the way up to 68% if it s a business trip.

186 Research shows that.. Google found that consumers 74% had brand recall when the advertiser s integrated strategy carried across mobile, TV and online.

187 #15 Time for a Digital Detox? 80% of US smartphone users do not leave home without their device in 2012 While people +35 feel overwhelmed with the growing penetration of technology and the array of choices.