DESTINATION MANAGEMENT

Destination Competitiveness

Outline
 Destination Competitiveness

 The Nature of Competitiveness
 Economic Competitiveness  Socio-Cultural Competitiveness  Political Competitiveness  Technological Competitiveness  Environmental Competitiveness

 Evolution of Travel Demand

 Challenges to Competitiveness

The Nature of Competitiveness
 Do destination compete with each other?

 If so, what makes a destination competitive?
 Competition is the very nature of doing business  The nature has evolved; rules change; priority

areas shift  Emergence of new destination and the evolution of other makes this more challenging  Destination managers must be cognizant of this

The Nature of Competitiveness
 Competitiveness can be viewed from different

aspects:
 Economic  Socio-cultural  Technological

 Political
 Environmental

 Most of these are internal, based on conditions

within the destination

Economic Competitiveness
 Based on attributes that the nation possesses  Factor conditions –factors within a destination that

can be exploited to heighten companies’ competitiveness e.g. skill of the labour force, linguistic abilities, infrastructure, availability of raw materials  Demand conditions – local market demand for products will enhance competitiveness, drive growth, innovation and competitiveness e.g. Japan, South Korea  Related and supporting industries – presence or absence of local suppliers that are internationally competitive.  Firm Crouch, 2003, The Competitive Destination... Source: Ritchie & strategy, structure and rivalry – how are

Porter’s Diamond Model

Socio-cultural Competitiveness
 The ability to attract visitors repeatedly despite

the economic and political challenges that might exist  The characteristics of the society and the culture of a people truly makes a destination unique  Some strong destinations lack socio-cultural appeal e.g. Canada, Scandinavia  How appealing is the destination to the market?

Political Competitiveness
 Refers to the attempt to organise in order to

gain control over the resources needed for their well-being  Indicators of Political Competitiveness include:
 GDP  Unemployment  Extent of the rule of law

 Corruption
 Press freedom  Measure of collective health (life expectancy, infant mortality…)
Source: Ritchie & Crouch, 2003, The Competitive Destination...

Political Competitiveness
 The increase in political unions:
 European Union –  CARICOM –  North American Free Trade Agreement (NAFTA)  MECOSUR

 Asia Pacific Economic Cooperation etc.

 Rise of the city states that are economic, political

and social leaders e.g. New York, London, Tokyo, Seoul etc.
 Population in the millions  Major players in global urbanisation  Dominant tourist centres

Technological Competitiveness
 Technological adaptation is now important to       

destination competitiveness Access to and use of the internet is the most significant change Global Position Systems (GPS) also having an impact Previous changes include the use of Central Reservation Systems Most aspects of tourism have gone hi-tech; Need to balance with hi-touch Major consideration for competitiveness – what do visitors want? Destination need to choose the best technology that will visitor enhance experience Need of residents also should be considered –

Environmental Competitiveness
 More emphasis shifting to the environment in   

determining competitiveness Assessing the full cost of tourism on the environmental resources of a destination Environmental stewardship of resources now critical In this paradigm shift alternative forms of tourism are increasing in popularity e.g. ecotourism, cultural/heritage tourism, community-based tourism Market driven

Evolution of Travel Demand
 There has been shifts in:
 Expectations  Visitor interest  Education  Activities

 Resulting from shifts in demographics and

societal values  Destination competitive challenged in the face of these changes  Greater need for destination management  Emphasis has to be on planning and development

Challenges to Destination Competitiveness
 Destination competitiveness is also based on

external factors
 Global economic crisis  Pandemics e.g. H1N1, SARS, Bird Flu  Volatile oil prices

 Weather disturbances
2011)

(The Travel & Tourism Competitiveness Report

 Natural disasters  Crime

 Acts of terror

 A major part of destination management is

anticipating and responding to these challenges

A Competitive Tourism Destination
A truly competitive destination has the following characteristics:
 The ability to increase tourist expenditure  The ability to attract visitors while providing

them with a satisfying memorable experience  The ability to make a profit while doing this...  While enhancing the well-being of residents and  The ability to preserve the natural capital for future generations
Source: Ritchie & Crouch, 2003, The Competitive Destination...; pp 2-3