Application of the Audit Concept for Destination Diagnosis

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Application of the Audit Concept for Destination
Diagnosis
REINVENTING A TOURISM DESTINATION Dubrovnik,
October 18-21, 2002

• Geoffrey I. Crouch LA TROBE UNIVERSITY,
  AUSTRALIA
• J. R. Brent Ritchie UNIVERSITY OF CALGARY,
  CANADA

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Introduction

• 10-year research collaboration into the
  components of destination competitiveness
• developed a conceptual model

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Introduction

• two primary bases for competitiveness
• comparative advantage
• competitive advantage
• two conditioners
• global (macro) environment
• competitive (micro) environment

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Introduction

• five determinants of competitiveness
• core resources and attractors
• supporting factors and resources
• destination policy, planning and development
• destination management
• qualifying and amplifying determinants

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Introduction

• aim was to create a tool to aid the management of
  destination competitiveness
• possible uses of the model
• as a communication tool
• as a framework for management
• as a basis for conducting a destination audit
• purpose of paper is to focus on this last use
  that is, a Destination Audit

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The Philosophy of the Audit Concept

• audits play a vital role in civilized society
• accounting audits
• statutory audits
• private audits
• three general types of audit
• financial report audit
• compliance audit
• performance audit

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The Philosophy of the Audit Concept

• the performance audit is of interest here
• examples of performance audits include
• communications
• management
• marketing
• operations
• environment
• social

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The Philosophy of the Audit Concept

• four ideal audit characteristics
• comprehensive
• systematic
• independent
• periodic

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The Nature of a Destination Audit

• audit of the destination, not of an organization
• aimed at preventing rather than fixing problems

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The Nature of a Destination Audit

• key principles
• part of regular routine of good management
• carefully structured appraisal of the destination
• preventative, not curative
• diagnostic and prognostic
• attention to problems and to opportunities
• many varied stakeholders

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Preparing for a Destination Audit

• desk research
• field research
• structured process

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Implementing the Audit

• must evaluate the evidence used in terms of
• assertions about existence or occurrence
• assertions about completeness
• assertions about roles and responsibilities
• assertions about valuation or measurement
• assertions about presentation or disclosure

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Implementing the Audit

• independence and audit approaches
• self-audit
• audit from across
• audit from above
• audit office
• audit task force
• outside auditor

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Destination Diagnostics

• systematic measurement methods are required
• paper tabulates possible operational audit
  measures covering
• objective industry measures
• subjective consumer measures
• further research