Tourism Planning

Micro Perspective of Tourism and Hospitality

Planning
 It is a dynamic process of determining goals, systematically
selecting alternative courses of actions to achieve those
goals, implementing the chosen alternatives, and evaluating
the choice to determine if it is successful.
Consequences of Lack of Tourism
Planning or Poor Tourism Planning
Physical Impacts
1. Damage or permanent alteration of the physical environment
2. Damage or permanent alteration of historical/ cultural landmarks and resources
3. Overcrowding and congestion
4. Pollution
5. Traffic problems
Human Impacts
1. Less accessibility to services and tourist attractions for local residents resulting in
local resentment
2. Dislike of tourists by local residents
3. Loss of cultural identities
4. Lack of education of tourism employees in skills and hospitality
5. Lack of awareness of the benefits of tourism to the destination area
Marketing Impacts
1. Failure to capitalize on new marketing opportunities
2. Erosion of market shares due to the actions of competitive destination areas
3. Lack of sufficient awareness in prime markets
4. Lack of clear image of destination area in potential markets
5. Lack of cooperative advertising among individual operators
6. Inadequate capitalization in packaging opportunities
Organizational Impacts
1. Fragmental approach to the marketing and development of tourism, often involving
“competitive splinter groups”
2. Lack of cooperation among individual operators
3. Inadequate representation of the tourism industry’s interests
4. Lack of support from local public authorities
5. Failure to act on important issues, problems, and opportunities of common interest
to the industry
Other Impacts
1. Lack of sufficient attractions and events
2. High seasonality and short lengths of stay
3. Poor or deteriorating quality of facilities and services
4. Poor or inadequate travel information services
Tourism Planning in
Developed Countries
In general, planning for tourists is less difficult in developed countries than it is in
developing ones. Planning is important and should provide a quality environment for
both tourists and residents. The planning process for tourism development is the same
as in city or regional planning. Most problems involve policy decisions on alternative
land uses for the health and welfare of the citizens. In countries with less control over
the economic sector, guidelines and ordinances can restrict private development to
prescribed areas, while in others, all developments can be directed by the central
government.
The encouragement of tourism is an important responsibility of government
organizations. Target countries or states can be identified as potential tourist generators
through research and market analysis. Proper planning includes government
assistance in direct advertising to attract tourists.

In developed countries, planning a construction of infrastructure facilities is a must,

particularly in areas that do not have them. For regions that have existing infrastructure,
the planning process planning should include alternatives to improve or further develop
it.
Tourism in Developing
Countries
Tourism is important in bringing the much-needed foreign currency to developing
countries. For a number of countries, tourism receipts contributed largely to the national
income. Other advantages are increased employment opportunities and the
development of infrastructure. Roads, water, and sewage systems provided for tourists
also help local industries. Government involvement in tourism planning is important not
only for developing infrastructure but also in determining the cultural impact of tourism
in the environment and people. All ill-planned tourism industry will create problems of
visual monotony, uniformity, and the leveling of the landscape. Thus, it is necessary for
governments to be involved in all stages of tourism, from preliminary planning to market
promotion. If private investment is lacking, the state should become involved.
Planning in developing countries should consider the cultural impact of tourism on the
area. Many times, the culture may be so fragile that tourism can greatly influence it
particularly in developing countries. In a developing society, people tend to adopt the
lifestyle of the tourists changing their clothing, food, and other customs. In this way, the
local culture is greatly influenced or altered.
Roles and Responsibilities
for Tourism Planning
In communist countries, all planning is done by the national
government. In democratic countries, the government and the
private sector play a valid role in the tourism planning.
Experience shows that the process of joint participation and
close cooperation of the private and government sector
produces the best results and that plans are more likely to be
successfully implemented if the private sector is actively
involved in the planning process.
Tourism planning should take place at many levels within a country. The
starting point for the tourism planning process in any country should be
the development of a national tourism policy. This policy represents the
basic foundation from which more specific goals, strategies, objectives,
objectives, and plans are developed. Thus, all planning efforts should be
complementary to the national tourism policy. All tourism plans should be
reviewed and modified at the expiration of their time spans. Since
change is inevitable and continuous, it follows that tourism policy making
and planning have to be dynamic processes.
Barriers to Planning
1. Many people are against planning in principle, particularly within the free-
enterprise system. Many businessmen view tourism planning as an encroachment
into their domain and are skeptical of its real value.
2. It is expensive. Effective tourism planning must be based upon detailed resource
analysis and market research.
3. The tourism industry is complex and diverse. A large number of government
departments have activities that impinge on tourism. Unlike the automobile
manufacturing business, the tourism industry cannot be readily identified. Although
the frontline recipients of tourism expenditure such as hotels, airlines, resorts,
restaurants and commercial attractions are obvious, others like retail stores and
banks are not normally seen as part of the tourism industry. Another complication is
that many tourism businesses receive their income both from visitors and from local
residents.
4. Tourism is characterized by few large businesses and various smaller
enterprises. There is also the tendency for individual operators to consider
themselves as being in the hotel industry or restaurant industry rather than
accepting their broader role in the tourism industry.
Tourism Planning Process
1. Background-analysis phase
2. Detailed research and analysis phase
3. Synthesis phase
4. Goal setting, strategy selection, and objective setting phase
5. Plan development phase
Background Analysis
 The first step in the tourism planning process is a situational analysis
that provides the basic direction for the succeeding steps.
 This is the logical launching point for most tourism plans since most
destination areas, whether they are countries, states, provinces,
regions, or local communities, have some existing tourism activity and
regulatory/ policy framework for the industry.
 Tourism policy goals are usually classified into 4: economic,
consumer/ social, resource/ environmental, and government
operations.
 There is a hierarchy of goals and objectives in tourism policy making
and planning. The tourism policy goal or goals are the long-term targets
in the destination area that provide the frame and rationale for
supporting goals and objectives. At each level in the hierarchy, the
goals and objectives become more specific and more action-oriented.
Existing programs or activities of both the public and private sector
organizations should also be identified in the background analysis.
 The background analysis produces an inventory or list of the area’s
tourism resource components.
Categorization of Tourism Resource Components
Component Subcomponent
Natural Features Landscapes
Scenery
Unique features
Flora and fauna
Buildings

Historical and Cultural Features Sites

Themes
Communities/ sub communities
Attractions

Tourist Operations and Facilities Accommodation

Food service
Events
Information centers

Hospitality Services Reservation systems

Commercial stores and services (banks, retail stores)
Transportation systems (road, rail, airport)
Underground services
Population and workforce
Ethnic community

Human Resources Attitude toward tourism

Employment/ unemployment
Industries

General Socioeconomic Economic conditions

Social problems
Present Land Uses Land ownership
Planning and zoning regulations
Future growth and development
 The thirds step in the background analysis is a description of existing tourism demand
in the destination area using readily available secondary or published sources of
information. Ideally, this information gives a profile of demand along the following
lines.
Modes of travel to and within the destination area and past usage volumes (aircraft, bus, train, ship, private
automobile):
1. Visitation volumes and patterns by month or season
2. Geographical origins of tourists
3. Geographical destinations of tourists
4. Tourist demographics such as age, income, education, occupation and travel party composition
5. Trip purposes
6. Activity participation
7. Market segments (families with children, singles, tour groups, business groups)
8. Length of stay in the area
9. Tourist expenditure within the area
10. Usage of facilities such as accommodation, attractions, events, and recreational facilities
 The final step in the background analysis is a review of the major
strengths, weaknesses, and problems and issues within the destination
area’s existing tourism industry. It should be introspective, critical and
objective. It should involve various individuals, including public sector,
tourism officials, selected tourism industry operators, and selected
representatives from tourism industry organizations. Their opinions will
provide a degree of objectivity and broad industry experience that may
not be readily available in the area itself.
Detailed Research and
Analysis
 A valid tourism plan cannot be formulated without research. Research
should be concentrated in four (4) distinct areas namely: resources,
markets, activities, and competition.
 Using the inventory of tourism resource components as base, the first
step in the resource analysis involves the preparation of maps
identifying the location of major resources. The capacities of the various
tourism resources are then measured. Although the capacities of some
of the tourism resource components are easily measured such as guest
rooms, restaurant seats, camp sites and golf courses, the capacities of
others such as boating in the lakes and rivers, beaches, and historical
landmarks are not.
 The last stage of the resource analysis is the resource classification. This is a ranking
or grading of the scope of appeal of the tourism resources of the destination area.
Thus, the individual resources or zones within the destination are described as being
of international, national, regional or local significance or as having international,
national, regional or local market appeal.
 The second component of the detailed research step is the activity analysis. Activities
include all the things the tourist can do while visiting the destination area, ranging
from recreational pursuits like skiing to more passive pursuits such as shopping and
sightseeing. It is necessary to classify the activities according to their range of appeal.
It is also important to identify the months of the year in which these activities can be
pursued. Because many destination areas suffer from the problem of seasonality, this
part of the analysis helps to determine those activities that will generate demand
outside of peak periods.
 A good tourism plan will include some original research on the existing and potential
markets for the destination area. The original research carries out one or more
surveys of existing tourists and potential tourists. Surveys of existing tourists are
normally carried on while they are within the destination area. Normally, the personal
interview technique is used ether at exit/ entry points or at important tourism facilities.
 A variety of survey techniques can be utilized to research potential markets. These
include personal interviews, group sessions, telephone interviews and mail-out and
mail-back questionnaires. They can be directed towards the individual-pleasure
travelers in a specific geographic market (household surveys) or aimed at the
channels of distribution (tour wholesalers/ operators and travel agents) and other
travel influences (convention planners, club/ affinity group executives, corporate travel
departments). This research helps determine the attitude towards future travel to the
destination area, levels of awareness of the area’s tourism resource components,
images of the area, the major competitive destinations, and the steps needed to
attract potential visitors. It can also provide an opportunity to “market test” new tourist
attraction/ packaging/ activity ideas.
 A tourism plan must consider the competitive advantages and future
plans of other areas as well as its own. Destination areas closer to a
prime market are called INTERVENING OPPORTUNITIES because the
tourist must pass them to reach the subject destination area.
 The detailed market research can assist in identifying the most
competitive destinations, their individual strengths and weaknesses,
and the steps to be taken to make the subject destination area unique
among its competitors.
Synthesis
 Defined as the reasoning from the general to the particular (or from
cause to effect)
 The third step of the tourism planning process is where major
conclusions regarding the previous work are formulated. It is one of the
most important and creative steps in the process.
 A comprehensive tourism plan will produce conclusions on five (5) distinct subjects:

1. Tourism development
2. Tourism marketing
3. Tourism industry organization
4. Tourism awareness
5. Other tourism support services and activities
 The first step in the synthesis phase is the PREPARATION OF POSITION
STATEMENTS on each of the five subjects.
 POSITION STATEMENT - indicates “where we are now” with respect to development
marketing, industry organization, awareness and other support services. These may
be expressed in one sentence or documented in several pages.
 The second step is to determine “where we would like to be” or the desired future
situation. It is useful for the destination area to verbalize these desired states in terms
of tourism development, marketing, industry organization, awareness and support
services.
 Tourism plans provide the “bridge” between the present situation in a destination area.
They provide the means to an end.
Goal Setting, Strategy Selection
and Objective Setting
 The fourth step in the tourism planning process is to define the planning
goals, strategies and objectives. They must be complementary to the
policy goals and objectives.
 Once the planning goals have been set, there are various approaches
or strategies that can be employed to achieve them. Within a specific
destination area, different approaches or strategies may be used for the
sub-areas within it. Some sub-areas may have economy-oriented
strategies.
Plan Development
 The last step of the tourism planning process is the development of the
plan. The plan includes the action needed to achieve the objectives,
implement the strategy, and satisfy the planning goals. A
comprehensive plan deals with the development, marketing, industry
organization, awareness and support services.
 It takes each of the plan objectives and specifies the following:

1. The programs and actions required to achieve each plan objective

2. The roles and responsibilities of the public and private sector is carrying out these
programs and actions
3. The specific development and marketing concepts and opportunities that will help
achieve certain objectives
4. The funds required to carry out specific programs and actions
5. The sources of these funds
6. The timetable for carrying out specific programs and actions within the plan
7. The method for monitoring the success of the plan on a periodic basis during its term
 Once the tourism plan has been laid out in detail, it is then
written in formal reports, either by a private tourism consulting
firm or by public sector tourism officials. The tourism plan
reports are presented in two parts. The first is the summary
report containing the plan itself, while the second is a more
detailed technical report containing all the research, findings
and conclusions produced during the planning process. The
reports are usually prepared in draft. These are then reviewed
and revised by public and private sector representatives
before they are finalized for publication.