COMMUNITY TOURISM PLANNING AND

DEVELOPMENT

Makerere University Business School

By

Asuman Kabuzi
 The Community Tourism Product.

1. Unique characteristics of CBT product/Services.

2. Components of the tourism product.
3. CBT Product Demand and Supply.
4. Pricing a CBT Product.
Community Based Tourism Product
“This is a type of tourism that emphasizes the involvement of
local communities in the tourism experience….”

A community tourism product is a tourism activity or service that is

designed, developed, and managed by local communities with the aim
of providing visitors with an authentic, immersive, and sustainable
travel experience.
 GENERAL CHARACTERISTICS OF A CBT PRODUCT

1. Intangibility
2. Perishability
3. Heterogeneity
4. Inseparability
5. Experience-based
6. Seasonality
7. Price sensitivity
8. Cross-cultural interaction
 UNIQUE CHARACTERISTICS OF A CBT PRODUCT

1. Community Involvement
2. Authenticity
3. Sustainability
4. Local Economic Benefits
5. Social Benefits
6. Flexibility

Overall, community-based tourism products offer an alternative to conventional tourism, providing a more
sustainable, authentic, and locally-owned travel experience that benefits both visitors and the local
community.
 Components of the CBT Product.
A tourism product can be thought of as a package of services and experiences that are marketed to travelers.
The components of a tourism product can vary depending on the type of tourism being offered and the
specific destination.

1. Accommodation: This includes a range of options from hotels and motels to vacation rentals and
camping sites.
2. Transportation: This includes options for getting to and around the destination, such as flights,
trains, buses, rental cars, and public transportation.
3. Activities and attractions: This includes a range of options for entertainment and sightseeing, such
as theme parks, museums, historical sites, natural attractions, adventure activities, and cultural
events.
4. Ancillary Services: This includes a range of options for convenience and comfort, such as spa
treatments, tour guides, language translation, and travel insurance.
Components of the CBT Product.
 CBT Product Demand and Supply.
“The total number of persons who travel, or wish to travel, to use
tourists facilities and services at places away from their places of
work or residence….”

It is influenced by a variety of factors, including economic

conditions, personal income, travel costs, availability of information
about destinations, cultural and natural attractions, and political
stability.
 FORMS OF TOURISM DEMAND.

Effective or Actual Demand: People actually traveling at a point of time. It

actually happens.

Suppressed Demand – People not interested in travel.

Deferred/Postponed Demand- People who wish to travel, but are not traveling
presently due to temporary reasons, of self or supply end.
Potential Demand- People who could travel if motivated. They can travel
anytime.

No Demand: People are not willing to travel for their personal reasons.
 DETERMINANTS OF TOURISM DEMAND.

Education and Awareness

Age, Gender, Religion
Income and employment.
Paid holiday
Family Influence & Nature of Family-joint.
Cost of Travel.
Cost of Products.
Competitive Prices.
Exchange Rates.
Seasonality.
Accessibility, location and distance.
 DETERMINANTS OF TOURISM DEMAND.

Attractions Available.
Urban or Rural population or Economy.
Image – organic and induced.
Promotion: travel channels, awareness, deals.
Technology and development
CRS technology Development Level
Credibility.
 DETERMINANTS OF TOURISM DEMAND.

Safety and Security.

Attraction and Events.
Quality of Product.
Travel Formalities.
Government regulation on supply and tourists.
Visas, formalities, health checks, currency, prohibitions.
Transport regulation, accessibility, bilateral agreements.
 TOURISM SUPPLY

The supply of all assets, services and goods to be enjoyed or bought

by visitors and occasioned by the journeys of visitors.
 COMPONENTS OF TOURISM SUPPLY

Infrastructure (telecommunications, accommodation and transport).

Superstructure (include facilities constructed primarily to support
visitation and visitor activities.).
Attractions (theme parks, museums, buildings, ski-slopes).
Marketing/Promotion and Destination Image.
 FACTORS AFFECTING OF TOURISM SUPPLY
Economic
Political
Geographical
Legal
Technological
Social
 CONCLUSION
Tourism demand and supply are interrelated and affect each other. The level of demand for a particular
destination affects the supply of tourism products and services that are offered in that destination. If there is a
high demand for a destination, businesses are likely to expand and offer more tourism products and services to
meet the demand. Similarly, if there is a low demand for a destination, businesses may reduce their offerings
or exit the market altogether.

The relationship between tourism demand and supply can also be affected by external factors such as
government policies, economic conditions, natural disasters, and global events. For example, changes in
government policies such as visa restrictions, travel advisories, or tax regulations can affect the level of
demand for a destination. Economic conditions such as a recession or a sudden increase in oil prices can also
affect both demand and supply in the tourism industry.

Overall, the tourism industry is a complex system that is affected by a variety of factors, and the interplay
between tourism demand and supply is crucial for the success of any destination.
 PRICING A CBT PRODUCT
Price is the amount of money or other resources that a buyer (Tourist)
is required to pay in order to obtain a tourism services or product. Price
is the value that is assigned to a Tourism product.

Pricing is a critical element of any business strategy and has a

significant impact on the success of a CBT Product in the market. Price
affects both the demand for a CBT product as well as the profitability
of the Community.
 PRICING STRATEGIES OF A CBT PRODUCT

There are various pricing strategies that a community initiative can

adopt. These are adopted based on how the initiative runs and what
they go through to prepare the CBT Product.
 PRICING STRATEGIES OF A CBT PRODUCT
Cost-based pricing.
Value-based pricing.
Competitor-based pricing.
Penetration pricing.
Skimming pricing.
Bundle pricing.

Among others…………………………………!!
 PRICING STRATEGIES OF A CBT PRODUCT
Cost-based pricing: This strategy involves determining the cost of producing or
preparing CBT product and then adding a markup to the cost to arrive at a final price.

Value-based pricing: This strategy involves setting prices based on the perceived value
of the CBT product to the customer. The price is determined by the benefits that the
CBT product offers, the quality of the product, the brand reputation, and the level of
customer service provided.

Competitor-based pricing: This strategy involves setting prices based on the prices of
similar CBT product offered by competitors. The price is usually set at a similar level to
competitors or slightly lower or higher depending on the Communities strategy.
 PRICING STRATEGIES OF A CBT PRODUCT
Penetration pricing: This strategy involves setting a low price for a new CBT product
to attract customers and gain market share. The low price may be temporary and is
designed to encourage customers to try the product or services being offered by the
Community.

Skimming pricing: This strategy involves setting a high price for a new CBT product to
capture the most revenue possible from the early adopters of the product or services. The
price may be lowered over time as the product or service becomes more widely adopted.

Bundle pricing: This strategy involves offering CBT products or services together as a
bundle at a discounted price compared to buying each item separately.
 THE NEED FOR PRICING
Revenue generation: The price of a CBT product determines the amount
of money a community can generate from its customers.

Brand image: A high-priced CBT product may convey a message of

quality and exclusivity, while a low-priced product may indicate
affordability and accessibility.

Customer perception: A high price may give customers the impression

that the CBT product is of high quality, while a low price may be
associated with lower quality.
 THE NEED FOR PLANNING
Competitiveness: A business that sets a price that is too high may lose customers to
competitors with lower prices, while a community that sets a price that is too low may
struggle to cover its costs and remain profitable.

Profitability: Pricing is essential for a community to generate profits. A community must

ensure that its prices cover its costs and provide a reasonable profit margin. The right
pricing strategy can maximize profitability and help a business achieve long-term success.

“In conclusion, pricing is a critical aspect of any community that can influence revenue
generation, brand image, customer perception, competitiveness, and profitability. It is
essential to set prices strategically and to regularly review and adjust pricing to remain
competitive in the market.”
 Conclusion
It is important to note that each pricing strategy has its own merits
and demerits and should be chosen based on the specific
circumstances of the CBO and market. A successful pricing strategy
requires careful consideration of the costs and benefits of each
approach, as well as an understanding of the customer and the
competition.