1. Chapter 4 Tourism Planning and Development

2. Learning Objectives
Explain the reasons & purposes for tourism planning.
Identify the barriers to tourism planning.
Describe the steps in the tourism planning process.
Describe and differentiate among tourism position statements, vision statements, goals, strategies, and objectives.
Explain the concept and principles of sustainable tourism development.
Describe the main forms of tourism development.
Discuss government and private-sector roles in tourism development.
Describe the role and types of government incentives for tourism development and the criteria for government financial assistance.
Describe the objectives and steps in completing a pre-feasibility study and an economic feasibility study.
Identify the two main groups concerned with the results of economic feasibility studies and discuss the questions they typically want answered.
Explain the purposes of preparing an environmental impact assessment.

3. Overview The destination area with and without tourism planning
Barriers to tourism planning
Purposes of tourism planning
Tourism planning process
Building a sustainable future for tourism
The link between tourism planning and tourism development
Government and private-sector participation in tourism development
Analysis of individual project development opportunities

4. The destination area with tourism planning
Planning is a process of selection from among alternative courses of action.
Five basic reasons for tourism planning:
Tourism development has both positive and negative impacts; (destination life cycle)
More competitive situation;
More complicated phenomenon;
Tourism has damaged natural and cultural resources;
Community involved.

5. Butler’s Tourism Destination Lifecycle Model
Source:

6. Seven stages of destination life cycle
Like most products, destinations have a product lifecycle. 
Butler proposed a widely-accepted tourism destination lifecycle model which has 7 distinct stages:
Exploration
A destination begins as a relatively unknown and adventurous visitors initially come in small numbers restricted by lack of access, facilities, and local knowledge. 
Involvement
Local investment in tourism and tourism advertising start. Visitor number begin to increase and government agencies start to develop the infrastructure.
Development
There is a rapid growth in visitor numbers as the destination becomes heavily advertised. The amenities are increased and improved. Visitors change to less adventurous.

7. Seven stages of destination life cycle
Consolidation
Growth in visitor numbers will decline, although total numbers will still increase. Tourism becomes “mass market”
Stagnation
The peak numbers of visitors will have been reached.  Capacity levels for many variables will have been reached or exceeded.  The area will have a well-established image but it will no longer be in fashion.  There will be heavy reliance on repeat visitation and on conventions and similar forms of traffic.
Decline
Visitor number decrease. External investors begin to pull out.
Rejuvenation
New attractions are developed or new natural resources are used to reverse the negative trends in visitor arrivals.

8. Representative destination classifications

11. The destination area without tourism planning
Consequences of unplanned development:
Physical
Human
Marketing
Organizational
Other

12. Barriers to tourism planning
The objections to the principle of tourism planning;
Cost of this process is high;
The complexity (ownership) of tourism and the large number of government agencies involved;
The diversity of tourism business (sector, size);
The seasonality
The high ownership turnover in tourism businesses.

13. Purposes of tourism planning
Five basic purposes
Identifying alternative approaches;
Adapting to the unexpected;
Maintaining uniqueness;
Creating the desirable;
Avoiding the undesirable.

14. Tourism planning process
Seven steps
Background analysis
Detailed research and analysis
Synthesis and visioning
Goal-setting, strategy selection, and objective-setting
Plan development
Plan implementation and monitoring
Plan evaluation

15. Step 1: Background Analysis
Government policies, goals, objectives, and programs
Existing destination mix elements and components
Existing tourism demand
Tourism strengths, weaknesses, problems, and issues

16. Step 2: Detailed Research and Analysis
Resource analysis
Activity analysis
Market analysis
Competitive analysis

17. Step 3: Synthesis and Visioning
Position statements
Describe the existing situations in tourism development, marketing, organization, community awareness, and support services and activities.
Vision statements
Reflect the desired future states in tourism development, marketing, organization, community awareness, and support services and activities.

18. Step 4: Goal-Setting, Strategy Selection, and Objective-Setting
Results or outcomes that the destination area tries to achieve within three to five years.
Strategies
Broad approaches selected to achieve tourism goals that help to translate existing conditions into desired future situations.
Objectives
Results or outcomes that the destination area tries to achieve within one to two years.

19. Step 5: Plan Development
Description of programs, activities, roles, and funding
Writing of tourism plan reports

20. Step 6: Plan Implementation and Monitoring
Plan implementation: The tourism plan is put into action by a governmental tourism agency.
Plan monitoring: As the plan is being implemented, the coordinating agency checks to ensure that progress is made as originally intended.
Plan evaluation: The performance on goals and objectives is measured and recommendations made for future tourism planning

21. Step 7: Plan Evaluation
The performance on goals and objectives is measured.
Recommendations are made for future tourism planning based on the results and outcomes of this plan.

22. Sustainable Tourism Development
“Tourism which is developed and maintained in an area in such a manner and at such a scale that it remains viable over an indefinite period and does not degrade or alter the environment (human and physical) in which it exists to such a degree that it prohibits the successful development and well-being of other activities and processes.”
Butler, R. W. (1993)

23. Principles of Sustainable Tourism Development
To improve the quality of life of the host community
To provide a high quality experience for visitors
To maintain the quality of the environment on which both the host community and the visitors depend
Ding, P., & Pigram, J. (1995)

24. Main Forms of Tourism Development
Low-impact to high-impact tourism
Ecologically sustainable tourism development (ESTD)
Alternative tourism
Mass tourism
Resort tourism

25. Private-Sector Roles in Tourism Development
Idea generation
Entrepreneurial role
Specialized technical skills
Financing

26. Volunteer Sector Roles in Tourism Development
Operating attractions
Creating and running events and special meals
Providing travel information services
Financing the development of community-oriented facilities

27. Government Roles in Tourism Development
Stimulator or catalyst for development
Developer
Operator
Social tourism provider
Regulator of tourism developments

28. Types of Government Incentives for Tourism Development
FISCAL INCENTIVES
Tax holidays or deferrals
Remission of tariffs
Tax reductions

29. Types of Government Incentives for Tourism Development
DIRECT AND INDIRECT INCENTIVES
Nonrefundable grants
Low-interest loans
Interest rebates
Forgivable loans
Loan guarantees
Working capital loans

30. Types of Government Incentives for Tourism Development
DIRECT AND INDIRECT INCENTIVES
Equity participation
Training grants
Infrastructure assistance
Lease backs
Land donations

31. Criteria for Government Financial Assistance
Competitive impact
Compliance with policies and plans
Developer and operator capabilities
Economic contributions
Environmental impact
Equity contributions
Feasibility
Social-cultural impact
Tourism impact

32. Objectives of Pre-Feasibility and Feasibility Studies
Pre-feasibility study: To determine whether a detailed economic feasibility study is justified and which topics the detailed study should address.
Detailed economic feasibility study: To determine the economic feasibility of a tourism development project opportunity.

33. Steps in Feasibility Studies
Pre-feasibility study
Detailed economic feasibility study:
Site analysis
Market analysis
Economic feasibility analysis
Cost/benefit analysis

34. Purposes of an Environmental Impact Assessment
To identify risks, minimize adverse impacts, and determine environmental acceptability.
To achieve environmentally sound proposals through research, management, and monitoring.
To manage conflict through the provision of a means for effective public participation.
Ecologically Sustainable Development Working Group. (1991)