PROGRAMME ON DESTINATION MANAGEMENT KEY RESULT AREAS:

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CONCEPTUAL FRAMEWORK FOR DESTINATION MANAGEMENT
AND ITS IMPORTANCE FOR THE REGIONS IN EUROPE
ESENCAN TERZIBASOGLU COORDINATOR FOR
DESTINATION MANAGEMENT WORLD TOURISM
ORGANIZATION
2ND CONFERENCE OF EUROPEAN REGIONS TOURISM and
THE REGIONS OF EUROPE - NEW DEVELOPMENTS
20-22 AUGUST 2006, SALZBURG AUSTRIA
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PROGRAMME ON DESTINATION MANAGEMENTKEY RESULT
AREAS

• Sustainable destination development and planning
  at local level
• Product development and innovation
• Competitiveness and strategic management
  marketing tools
• Effective destination management structures
• Measurement of economic impact of tourism at
  local destination level
• Monitoring of consumer behaviour, segmentation,
  psychology
• Information technology and new media activities
  in marketing
• City tourism
• Creating additional competitive advantage e.g.
  events, low cost airlines rejuvenation of mature
  destinations, etc.

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THE TRAVEL MILLIONS
Average growth rate 6.5 a year
808 million
25 million
Source World Tourism Organization
4
International Tourist Arrivals, 2005
Europe 444 million 55
Asia / Pacific 156 million 19
Americas 133 million 16
Africa 37 million 5
Middle East 38 million 5
Source World Tourism Organization
Preliminary results
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International Tourist Arrival - Europe, 2005
Source World Tourism Organization
6
2005 42 Million New Arrivals Worldwide
Europe
18 million
arrivals (42)
Middle East
3 million
3
arrivals (7)
Africa
2 million
Americas
arrivals (5)
7 million
arrivals (17)
Source World Tourism Organization
Preliminary
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International Tourism Receipts, 2005
International Tourism Receipts, 2005 548
billion / US 682 billion
US 2 billion a day
Source World Tourism Organization
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Top Tourism Destinations
51
47
Preliminary results
Source World Tourism Organization
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Top Tourism Spenders
56
Preliminary results a) 2004 data
Source World Tourism Organization
10
International Tourist ArrivalsAverage growth
rate 2000-2005 ()
Source World Tourism Organization
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First Data for 2006
Source World Tourism Organization
Preliminary
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REGIONS AS TOURISM DESTINATIONSBACKGROUND AND
FRAMEWORK

• Economic globalization is highly beneficial to
  the tourism industry,
• Changing patterns of production and consumption,
• Greater competition, emergence of new
  destinations, rapid and affordable modes of
  transport, new marketing strategies and tools,
• A new approach to quality,
• New challenges for regional economies and
  territorial development requiring an effective
  policy and action at regional level,
• Tourism governance is becoming highly
  decentralized,
• Local community has a growing influence on the
  behaviour of governments,
• Key industry stakeholders have further ben
  involved in the policy making process and
  actively been engaged in tourism development and
  management issues.

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• One of the specific aims of regional policies
  Reduce the imbalances between regions and trigger
  general economic growth by creating a new
  dynamic,
• Sustainable tourism can be a key driver of a
  regions economic and social development as long
  as it is delivered by effective structures and
  through effective strategies, bringing together
  the resources of all the relevant partners
  public, private and voluntary.

• There is a climate of change in terms of wider
  political and environmental situation and in the
  tourism marketplace,
• This creates a challenging situation for
  destinations and the tourism bussiness in them,
• If you are pursuing the same strategy with the
  same structure you had five years ago, it is
  likely that, at best, you will be missing
  opportunities at worst, undermining the future
  of your tourism industry.

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TOURISM DESTINATION

• The fundemental unit, on which all the many
  complex dimensions of tourism are based,
• The focal point in the development and delivery
  of tourism products and the implementation of
  tourism policy,
• The basic unit of analysis in tourism,
• Cluster co-location of activities (products and
  services) that are linked horizontally,
  vertically or diagonally along the value-chain
  and served by public and private sector,
• Offers a broad range of products, experiences and
  services under the destination brand,
• Physical, but also intangible (image, identity,
  personality).

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Destination Management

• POLICY
• Normally focus on macro-level policies (overall
  strategy for tourism, development and planning)
• Designed for a long term perspective,
• Constructed to allow an on-going dynamic social
  and economic process,
• In orther words
• Defines the rules of the game,
• Provides guidance for all tourism stakeholders,
• Provides a framework and a clear sense of
  direction for public-private sector partnership
  and networking,
• Creates the conditions within which tourism can
  succeed,

• MANAGEMENT
• A recent conceptualization of a micro-level
  activity at national, regional and/or local level
  in which the tourism stakeholders carry out their
  individual and organizational responsibilities
  aimed to achieve the macro-level policies.

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COMPETITIVENESS AND SUCCESS

• Competitiveness is the key word for any
  destination manager.
• It is a relative and multi-dimensional concept.
• The notion of competitiveness should be
  consistent with the international economics and
  international bussiness literature.
• Includes objectively measured variables no.of
  visitors, market share, tourist expenditure,
  employment, value added by the tourism
  industry,etc,
• Includes subjective variables culture and
  heritage, quality,etc.
• Competitiveness is linked to to the ability of a
  destination to deliver goods and services that
  perform better than other destinations on the
  aspects of tourism experience.
• It is also the ability to maintain its market
  position and share relative to competitors.

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• COMPARATIVE ADVANTAGES
• Natural and/or man made resources available in
  the destination
• .Physical resources
• .Historical and cultural resources
• .Capital resources
• .Size of the local economy
• .Infrastructure and superstructure
• .Human resources etc.

• COMPETITIVE ADVANTAGES
• Ability of the destination to use or mobilize
  these resources over the long term.

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• A DESTINATION WITH DIVERSIFIED AND ABUNDANT
  RESOURCES MAY NOT BE COMPETITIVE AS ANOTHER
  DESTINATION, WHICH HAS RELATIVELY LIMITED
  RESOURCES BUT HAS THE ABILITY TO EFFECTIVELY USE
  AND ENHANCE THESE RESOURCES, STRENGTHEN THEIR
  QUALITY AND EFFECTIVENESS AND BEST ADAPT TO
  SITUATIONAL CONDITIONS !!!!!
• COMPETITIVENESS IS A TOOL, NOT AN OBJECTIVE !!!
• COMPETITIVENESS IS NO GUARANTEE FOR SUCCESS !!
• THE SUCCESS OF A DESTINATION IS ASSESSED THROUGH
  THE DEGREE OF BALANCE OR OPTIMIZATION OF
  ECONOMIC, SOCIAL, CULTURAL, ENVIRONMENTAL AND
  POLITICAL DETERMINANTS!

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• DESTINATION MANAGEMENT ORGANIZATIONS(DMO)
• A recent conceptualization of the organization
  function for destination management M means
  total management rather than simply marketing.
• DMO is highly representative of the tourist
  industry and involves public and private
  stakeholders operating a partnership model both
  in terms of representation and funding.
• Link between the success of a destination and
  the DMO
• Effective model and structure
• Vision and leadership
• Planning

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• EFFECTIVE MODEL AND STRUCTURE
• Requires more flexible governance structure most
  successful models involve a public-private mix
  combining a significant influence from the local
  authorities and the local tourist trade,
• Stronger leadership and more effective
  partnership,
• A shared commitment to delivery.
• VISION AND LEADERSHIP
• Vision is a created portrait or an overall
  picture of the desired future of the destination.
  It is the essential component of tourism policy
  and should intergrate all the elements necessary
  for destination competitiveness.
• Vision provides a direction for development
• In the visioning step, the stakeholders which in
  many cases differ in their perceptions of the
  impacts and can easily go off in different
  directions should share a common view. (strong
  sense of purpose, shared ambition)

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PLANNING ( broad steps to deliver on the vision)

• Analysis of the current situation,
• Analysis of the oppotunities and needs,
• Selecting the target market,
• Setting objectives,
• Prioritisation and selection of areas for focus
  and investment (infrastructure, human resources,
  product development, technology and systems
  development, related industries and procurement),
• Marketing plans (destination image, branding,
  positioning, distribution channels, promotion
  tactics etc.),
• Evaluate results (measure perfomance, monitor
  governance, identify gaps and respond).

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CONCLUSIONS Critical issues for a successful
destination management

• Knowledge and understanding of the needs of our
  target markets and the new tourist,
• Positioning and differentiating our destination
  and image management,
• Improvement of collecting reliable data and
  competent analysis of the data,
• Improvement of the competitiveness of the
  destination, providing through the chain,
  positive visitor experience,
• Product innovation and management,
• Capitilizing on the opportunities provided by new
  technologies,
• Greater professionalism in service levels and
  overall HR management,
• Synergy between all the stakeholders in creating
  the destination vision,
• Public-private sector partnership in the key
  areas of management and marketing,
• Continuously adapting to the dynamically changing
  macro, competitive and market environments.

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• THANK YOU.
• Esencan Terzibasoglu
• eterzibasoglu_at_unwto.org