destination management ehl

8/2/2019 Destination Management Ehl

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Destination Competitiveness

DESTINATION MANAGEMENT


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Outline Destination Competitiveness

The Nature of Competitiveness

Economic Competitiveness

Socio-Cultural Competitiveness

Political Competitiveness

Technological Competitiveness

Environmental Competitiveness

Evolution of Travel Demand Challenges to Competitiveness


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The Nature of Competitiveness Do destination compete with each other?

If so, what makes a destination competitive?

Competition is the very nature of doing business

The nature has evolved; rules change; priorityareas shift

Emergence of new destination and the evolutionof other makes this more challenging

Destination managers must be cognizant of this


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The Nature of Competitiveness Competitiveness can be viewed from different

aspects:

Economic

Socio-cultural

Technological

Political

Environmental

Most of these are internal, based on conditionswithin the destination


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Economic Competitiveness Based on attributes that the nation possesses

Factor conditionsfactors within a destination thatcan be exploited to heighten companies

competitiveness e.g. skill of the labour force,

linguistic abilities, infrastructure, availability of rawmaterials

Demand conditionslocal market demandforproducts will enhance competitiveness, drivegrowth, innovation and competitiveness e.g. Japan,South Korea

Related and supporting industries presence orabsence of local suppliers that are internationallycompetitive.

Firm strategy, structure and rivalry

how areSource: Ritchie & Crouch, 2003, The Competitive Destination...


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Porters Diamond Model


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Socio-cultural Competitiveness The ability to attract visitors repeatedly despite

the economic and political challenges that mightexist

The characteristics of the society and the cultureof a people truly makes a destination unique

Some strong destinations lack socio-culturalappeal e.g. Canada, Scandinavia

How appealing is the destination to the market?


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Political Competitiveness

Refers to the attempt to organise in order togain control over the resources needed fortheir well-being

Indicators of Political Competitivenessinclude:

GDP

Unemployment

Extent of the rule of law Corruption

Press freedom

Measure of collective health (life expectancy, infant

mortality)Source: Ritchie & Crouch, 2003, The Competitive Destination...


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Political Competitiveness The increase in political unions:

European Union

CARICOM

North American Free Trade Agreement (NAFTA)

MECOSUR

Asia Pacific Economic Cooperation etc.

Rise of the city states that are economic, political

and social leaders e.g. New York, London, Tokyo,Seoul etc.

Population in the millions

Major players in global urbanisation

Dominant tourist centres


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Technological Competitiveness Technological adaptation is now important to

destination competitiveness

Access to and use of the internetis the mostsignificant change

Global Position Systems (GPS) also having an impact Previous changes include the use of Central

Reservation Systems

Most aspects of tourism have gone hi-tech; Need tobalance with hi-touch

Major consideration for competitiveness what dovisitors want?

Destination need to choose the best technology thatwill visitor enhance experience

Need of residents also should be considered


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Environmental Competitiveness More emphasis shifting to the environment in

determining competitiveness

Assessing the full cost of tourism on theenvironmental resources of a destination

Environmental stewardship of resources nowcritical

In this paradigm shift alternative forms of tourism

are increasing in popularity e.g. ecotourism,cultural/heritage tourism, community-basedtourism

Market driven


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Evolution of Travel Demand There has been shifts in:

Expectations

Visitor interest

Education

Activities

Resulting from shifts in demographics andsocietal values

Destination competitive challenged in the face ofthese changes

Greater need for destination management

Emphasis has to be on planning and

development


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Challenges to DestinationCompetitiveness

Destination competitiveness is also based onexternal factors

Global economic crisis

Pandemics e.g. H1N1, SARS, Bird Flu

Volatile oil prices

Weather disturbances (The Travel & Tourism Competitiveness Report2011)

Natural disasters

Crime Acts of terror

A major part of destination management isanticipating and responding to these challenges


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A Competitive Tourism

Destination

A truly competitive destination has the following

characteristics:

The ability to increase tourist expenditure

The ability to attract visitorswhile providingthem with a satisfyingmemorable experience

The ability to make a profitwhile doing this...

While enhancing the well-being of residents

and

The ability to preserve the natural capitalforfuture generations

Source: Ritchie & Crouch, 2003, The Competitive Destination...; pp 2-3

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