Macro and Micro Environments

RAMK / Teija Tekoniemi-SelkäläSource: Ritchie & Crouch 2003

Global Macro Forces

RAMK / Teija Tekoniemi-Selkälä

Politicalforces

Sociocultural forces

Demographicforces

Geographicalforces

Environmentalforces

Climaticforces

Source: Ritchie & Crouch 2003

Global Macro Forces• Climatic forces

– Climate change – who benefits?– Demand from cold to warm and vice versa

• Environmental forces– Wildlife habitat preservation– Species diversity and protection, protection of vegetation– Maintanance of water quality and aquatic biodiversity– Use of pesticides and the quality of the food system

• Geographical forces– Geographic frames for destinations are quite stable– Political changes;

• Disintegration of Soviet Union and Yugoslavia

– Technological changes; • 1950ties the jet aircraft• now the space technology

RAMK / Teija Tekoniemi-SelkäläSource: Ritchie & Crouch 2003

Global Macro Forces• Demographic forces

– Demographic changes in Europe and other continents – differences betweencontintents

• Impact on especially on leisure travelling

• Sociocultural forces– Only the history of destinations is unchangable– Under change; value systems - the expansion of Western values, the way of

working, languages used in communication, food – fast food vs. slow food,

• Economic forces– Local – national – global; which can be influenced and how much?– Shift to market economy, international exchange rates, interest rates, the world

economy, the amount of savings of consumers in the banks, …

• Technological forces– Broad understanding of technology; management of companies in general,

logistical systems, computer reservation systems, Internet– How to keep up up-to-date both a hardware and software perspectives in

destinations.

• Political forces– Changes in political idealogies; fiscal (tax, finances etc.), environmental ,

immigration policies

RAMK / Teija Tekoniemi-SelkäläSource: Ritchie & Crouch 2003

Global Forces

Tourism

Destination MgntDestination

Policy

DMO

Tourism supply

-Volume of

Travel

-Nature of

Travel

-Price

Sensitivity

-Temporality

Of demand

-Resource

Stewardship

-Marketing

-Organisation

-Information

-Service

-Integrated Quality

-Safety and

Crisis Mgnt

-Sustainability

-Venture Capital

-System definition

-Values

-Vision

-Positioning/

Branding

-Development

-Analysis

-Monitoring

And Evaluation

-Audit

-Ultimate

Responsibility

-Type of org.

-Structure

-Size

-Membership

-Funding

-Voting

-Board/stafff

responsibilities

-Core resources

and attractors

-Climate and

physiography

-Culture

-Activities

-Events

-Superstructure

-Supproting factors

And resources

Source: Ritchie & Crouch 2003

Micro Environment of a Destination

Publics

Publics

Local destination management organisations

Foreign destination management organisations

Related and supporting industries

Related and supporting industries

Suppliers Tourism

And

Hospitality

companies

Marketing

Inter-

Mediaries

And

facilitators

Customers

The Other Destinations

The Destination

Source: Ritchie & Crouch 2003

Micro Environment stakeholders• Publics – public organisations

• Destination management organisation– The main stakeholder which has the ultimate responsibility of managing a destination

– Different types of governance but most commonly both public and private stakeholdersinvolved

• Related and/or supporting industries (which has a strong link with the suppliers)

– New innovations and attractions are formed through unconvetional co-operation with the related and/or supporting industries for example

• Agriculture / farming industry

• Health and beauty etc. related industries

• Sport related facilities and industries

• Cultural activities, art, theatre and entertainmetn industries

• Retail trade, shopping centres/malls (IKEA)

• Construction industry > house fairs, exhibitions

• Mine industry > mine related tourism and other types of production plants >industrial tourism

• Suppliers– Wholesale trade /suppliers of primary products, processed food, beverage, souvenir, art, clothing,

vechiles, snowmobiles, interior and building material, estates, land, fuel etc.

RAMK / Teija Tekoniemi-Selkälä Source: Applied from Ritchie & Crouch 2003

Micro Environment stakeholders

• Tourism and Hospitality companies– These companies are distiquished from the other commercial companies (related and

supporting industries, suppliers, marketing intermediaries etc.)• in that the products and services are targeted principally at tourist market and

• they have high interaction with tourists,

• however, they do not produce and deliever all of what tourists consume while visiting a destination. Since the quality of the visitor experience is also formed from non-commercial activities, such as enjoying climate and scenery

• Marketing intermediaries– Tour operators, travel agents, travel shows or exhibitions, incentive travel houses,

meetings and convention bureaus/planners, tourism information centres, informationkiosks, global distributions systems or computer reservation systems etc.

• Facilitators– Financial institutes (credit cards, travellers cheques, currency exchange), insurance

companies, advertising/marketing agencies, market research agencies, informationtechnology providers and Internet

RAMK / Teija Tekoniemi-Selkälä