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MTour Thesis - Wendy London - Binding Copy

MTour Thesis - Wendy London - Binding Copy

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Published by Kim Murphy-Stewart
A comprehensive study about the development of a cruise destination. Whangarei other than the BOI for example
A comprehensive study about the development of a cruise destination. Whangarei other than the BOI for example

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Published by: Kim Murphy-Stewart on Nov 06, 2011
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Ship to shore:The cruise industry’s perception of economic riskWendy R London
AB, MSLS, JD, PGDipTour (Dist)
 
A thesis submitted for the degree of Masters of TourismAt the University of Otago, Dunedin New Zealand
Date: 24 March 2010
 
i
Abstract
This thesis considers a variety of economic risks which could potentially threaten NewZealand’s position as a competitive and sustainable cruise destination. The risks are thosearticulated by stakeholders from the cruise, broader tourism (including port and shippingagent representatives) and government sectors. More specifically, these stakeholdersinclude cruise industry representatives; cruise ship officers and staff; representatives fromRTOs, local and regional councils; and port officials. In addition, the views of two NewZealand government representatives were also solicited. The views of these stakeholdersare subsequently interpreted by the author of this thesis who is an avid cruise passenger and also involved in a commercial project to develop a website to promote New Zealandgoods and experiences to cruise passengers visiting New Zealand.The economic risks considered in this thesis are those which are evaluated and factoredinto cruise lines’ decisions as to whether to send their ships and passengers to any givendestination and the destination’s capacity to host these ships and their passengers. Theserisks are presented as falling into five distinct categories or phases of a cruise sector life-cycle, i.e. (a) product development; (b) infrastructure development; (c) distribution; (d)use and consumption; and (e) disposal. Each of the risks discussed is within thedestination’s capacity to manage those risks if appropriate mechanisms and strategies are put into place.The cruise sector in New Zealand presents an interesting context in which to examineeconomic risks and a selection of countermeasures which can be implemented to managethem, thereby providing competitive opportunities and the potential for futuresustainability for the sector. New Zealand is a remote cruise destination which representsonly a very small proportion of the global cruise market. However, its cruise activitycontinues to experience rapid growth despite the recent economic downturn. Accordingto many of the stakeholders interviewed for this thesis, this growth remains largelyunmanaged because there is no apparent structured framework for the ongoing
 
iimanagement and future development of “cruise” in New Zealand. Furthermore, theyargue that a failure to provide an appropriately managed cruise sector means that the riskswhich currently face New Zealand will continue to grow and may ultimately threaten NewZealand’s goal of becoming an increasingly competitive and sustainable cruisedestination.Five mechanisms or strategies for managing the current and potential risks to the NewZealand cruise sector are suggested by the author. Each of these strategies was signalledduring the author’s research and further developed by her based on her own cruiseexperience in New Zealand waters and drawing from her previous work as a lawyer andIT professional developing best practice and risk management strategies and systems. Thefive strategies are the formation of a properly funded over-arching coordinatingcommittee; the cultivation of a discernible cruise culture; implementation of appropriateeducation and training; the creation of a national cruise manual; and the design,development and implementation of a New Zealand cruise brand. Each of these strategiesis based on an approach to risk management which calls for a positive view of risk andhow it can be transformed into opportunity for competitive success. The traditional notionof risk as something to be avoided or which can be insured against or eliminated isrejected in part because it is counter-productive to treat risk in that way and also becausesuch treatment leads to a silo approach where risks are considered individually and nothow their collective influence can impact upon the whole. The silo approach precludesadopting a strategic approach to the identification and optimisation of risk. In other words, a tactical approach to risk indentification and risk management will very likelyresult in an underperforming and unsuccessful cruise sector. Therefore, the author concludes that a well-considered strategy needs to be adopted and appropriately funded toensure New Zealand’s continued existence as a competitive and sustainable cruisedestination.

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