BML309: Sustainable Destination Management
Module Learning Outcomes ยง Identify and critically assess the main approaches to Sustainable
Destination Management
ยง Critically evaluate the basic principles and practices related to
Sustainable Destination Management through applied project work
ยง Practically apply the VICE/VERB model and demonstrate how the
objectives of sustainable tourism can be achieved and operationalised within the context of a destination environment
ยง Synthesise good practice in sustainable destination management from
a variety of destination environments
Module Structure § Week 1: Introduction: The Competitive Destination § Week 2: Destination Management Strategies [1] § Week 3: Destination Management Strategies [2] § Week 4: Developing Tourism Partnerships: Community and
Stakeholder Engagement § Week 5: Reading Week § Week 6: Managing Destination Quality § Week 7: Managing Destination Sustainability § Week 8: Experience Development
Module Structure ยง Week 9: Fieldtrip/Guest Speaker (TBC) ยง Week 10: Destination Marketing and Branding ยง Week 11: Destination Monitoring and Benchmarking ยง Week 12: Managing Destinations in Crisis
Module Assessment § Assessment 1: Group Strategy (50%) § Submission 1pm – Wednesday 9th May
§ Assessment 2: Job application § Presentation (30%) and interview (20%) § Scheduled for Friday 11th May
BML309: Sustainable Destination Management
The Competitive Destination
Aims ยง To critically evaluate the characteristics of sustainable and competitive
destination
ยง To critically assess the factors influencing the competitiveness of a
destination
ยง To examine frameworks for understanding competition, with reference
to comparative advantage, competitive advantage and destination success
ยง To introduce and evaluate the Model of Destination Competitiveness
(Ritchie and Crouch, 2005)
ยง To identify alternative models examining destination processes
The Competitiveness Destination Activity 1: Identify: [a] What are the key elements of a sustainable and competitive destination? [b] What factors influence the level of competitiveness within a destination?
The Sustainable Destination: The VICE/VERB Model ‘the objective and detailed evaluation of the economic impact of tourism can be a long and complicated task’
The Sustainable Destination ‘the objective and detailed evaluation of the economic impact of tourism can be a long and complicated task’
The Competitive Destination ‘the objective and detailed evaluation of the economic impact of tourism can be a long and complicated task’
[Source: Ritchie and Crouch, 2005, p. 2]
Key Areas of Competitive Strength Economic ยง Resource and investment
Political ยง Political strength, stability and support (micro and macro)
Technological ยง An increasingly important factor in the promotion and
distribution of the travel experience for many destinations
ยง Destination Management Systems, Social Media, Apps ยง Adoption and use of technology by SMEs
Key Areas of Competitive Strength Socio-Cultural § Social and cultural characteristics are critical for creating a
destination that people want to visit (outweighing any political or economic considerations)
Environmental § The environmental dimension of destination performance
and competitiveness e.g. Sense of Place
§ Environmental integrity of the destination § New Zealand ‘Qualmark’/ ‘Green Tourism Business Scheme’
Key Areas of Competitive Strength Economic – The ‘Porter Diamond’ § Factor conditions - the nation’s position in the factors of
production, such as skilled labour or infrastructure
§ Demand conditions - the nature of home market demand for the
industry’s product or service
§ Related and supporting industries - the presence or absence in
the nation of supplier industries and other related industries that are internationally competitive
§ Firm strategy, structure and rivalry - the conditions influencing
how companies are created, organised and managed, and domestic rivalry
[Source: Ritchie and Crouch, 2005]
Key Areas of Competitive Strength Economic – Factors of Production § Human resources - availability, skills, costs, work ethics and
standard working conditions of available human resources
§ Physical resources - diversity, uniqueness, abundance,
attractiveness of natural features
§ Knowledge resources - available know-how; for example LDCs
have to import knowledge when developing the tourism sector
Key Areas of Competitive Strength Economic – Factors of Production § Human resources - availability, skills, costs, work ethics and
standard working conditions of available human resources
§ Physical resources - diversity, uniqueness, abundance,
attractiveness of natural features
§ Knowledge resources - available know-how; for example LDCs
have to import knowledge when developing the tourism sector
Key Areas of Competitive Strength Economic – Factors of Production § Capital resources - available capital resources; predominance
of SMEs places an emphasis on personal savings and investment
§ Infrastructure and tourism superstructure - infrastructure (e.g.
roads, utility services etc) and tourism infrastructure which serve visitor orientated needs and goals
§ Historical and cultural resources - tangible (e.g. ruins,
monuments etc) and intangible (tradition/customs) historical and cultural resources
Key Areas of Competitive Strength Economic – Factors of Production § Capital resources - available capital resources; predominance
of SMEs places an emphasis on personal savings and investment
§ Infrastructure and tourism superstructure - infrastructure (e.g.
roads, utility services etc) and tourism infrastructure which serve visitor orientated needs and goals
§ Historical and cultural resources - tangible (e.g. ruins,
monuments etc) and intangible (tradition/customs) historical and cultural resources
Defining Destination Competitiveness Competitiveness § Ritchie and Crouch (2005)
‘What makes a tourism destination truly competitive is its ability to increase tourism expenditure, to increasingly attract visitors while providing them with satisfying, memorable experiences, and to do so in a profitable way, while enhancing well-being of destination residents and preserving the natural capital of the destination for future generations’
Defining Destination Competitiveness Comparative Advantage v Competitive Advantage § Comparative Advantage § Relates to differences in the endowment of factors of
production
§ Competitive Advantage § The destination’s ability to use these resources effectively
over the long-term
§ Relates to the effective utilisation of resources (comparative
advantages) - therefore highlighting the importance of a clear tourism vision amongst all stakeholders and a clear destination management and marketing strategy
Defining Destination Competitiveness Frameworks for Understanding Competition ยง Porter (1980): Forces Driving Competition Between Firms
[Source: Ritchie and Crouch, 2005, p.15]
Defining Destination Competitiveness Frameworks for Understanding Competition ยง Additional Factors ยง Chance - alters the circumstances and
introduces opportunities for some and threats to others
ยง Competitiveness is therefore defined as the
ability to respond effectively to crisis situations
ยง Government - indirect impact on the
determinants of advantage
Defining Destination Competitiveness
[Source: Ritchie and Crouch, 2005, p.17]
Defining Destination Competitiveness Poon (1995) Competitive Strategies § Competitive Strategies are critical, because: § Comparative advantages are no longer natural § Tourism is a volatile, sensitive and fiercely competitive industry § The industry is undergoing rapid and radical transformation § What is at stake is not just tourism, but the survival of tourism-
dependent economies
§ The future development and viability of tourism-dependent
economies will depend not only on tourism, but on the entire service sector
Defining Destination Competitiveness Poon (1995) Competitive Strategies ยง Four key strategies for destinations: ยง Put the environment first ยง Make tourism a lead sector ยง Build a dynamic private sector ยง Strengthen distribution channels in the market place
The Competitiveness Destination Activity 2: Identify: • Expand on Poon’s key strategies - how can they be achieved?
Defining Destination Competitiveness Poon (1995) – Principles of Competitive Strategies
Defining Destination Competitiveness Poon (1993) – Put the Environment First
Defining Destination Competitiveness Poon (1993) – Make Tourism a Lead Sector
Defining Destination Competitiveness Poon (1993) – Strengthening the Marketing Channels
Defining Destination Competitiveness Poon (1993) – Develop a Dynamic Private Sector
Defining Destination Competitiveness Poon (1993) – Develop a Dynamic Private Sector
Defining Destination Competitiveness Limitations § Poon’s principles are too broad and general to be managerially
useful
§ A deeper understanding of destination competitiveness is
required
§ However, ‘the information that should guide the decision-
maker in dealing with the targeting of competitive [tourism] resources is lacking in this critical area’ (Haati, 1986, p.13)
Linking Competitiveness to Performance
A Model of Destination Competitiveness
[Source: Ritchie and Crouch, 2005, p.63]
A Model of Destination Competitiveness
[Source: Ritchie and Crouch, 2005, p.80]
A Model of Destination Competitiveness
[Source: Ritchie and Crouch, 2005, p. 93]
A Model of Destination Competitiveness
[Source: Ritchie and Crouch, 2005, p. 96]
A Model of Destination Competitiveness
[Source: Ritchie and Crouch, 2005, p. 96]
Models of Destination Competitiveness
[Source: Butler, 1980]
Models of Destination Competitiveness
[Source: Clegg, 1996]
Models of Destination Competitiveness
[Source: Howie, 2003, p. 63]
Destination Management Handbook/Toolkit
Learning Outcomes: By the end of this session, you should be able to: § Critically evaluate the characteristics of sustainable and competitive
destinations
§ Critically assess the factors influencing the competitiveness of a
destination
§ Examine and critically discuss frameworks for understanding
competition, with reference to comparative advantage, competitive advantage and destination success
§ Discuss and evaluate the Model of Destination Competitiveness § Identify alternative models that examine destination competitiveness § Be familiar with the structure and content of the Destination
Management Handbook