Chapter 4 Tourism Planning and
Development
Learning Objectives
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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.
Overview
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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
The destination area with
tourism planning
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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.
Butler’s Tourism Destination
Lifecycle Model
Source: http://www.destinationrecovery.com/destinationlifecycle.html
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:
1. 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.
2.
Involvement
Local investment in tourism and tourism advertising start. Visitor number
begin to increase and government agencies start to develop the
infrastructure.
3.
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.
Seven stages of destination life cycle
4.
Consolidation
Growth in visitor numbers will decline, although total numbers will still
increase. Tourism becomes “mass market”
5.
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.
6.
Decline
Visitor number decrease. External investors begin to pull out.
7.
Rejuvenation
New attractions are developed or new natural resources are used to reverse
the negative trends in visitor arrivals.
Representative destination classifications
The destination area without
tourism planning
Consequences of unplanned development:
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Physical
Human
Marketing
Organizational
Other
Barriers to tourism planning
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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.
Purposes of tourism planning
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Five basic purposes
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Identifying alternative approaches;
Adapting to the unexpected;
Maintaining uniqueness;
Creating the desirable;
Avoiding the undesirable.
Tourism planning process
Seven steps
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Background analysis
Detailed research and analysis
Synthesis and visioning
Goal-setting, strategy selection, and
objective-setting
5. Plan development
6. Plan implementation and monitoring
7. Plan evaluation
Step 1: Background Analysis
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Government policies, goals, objectives, and programs
Existing destination mix elements and components
Existing tourism demand
Tourism strengths, weaknesses, problems, and issues
Step 2: Detailed Research and Analysis
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Resource analysis
Activity analysis
Market analysis
Competitive analysis
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.
Step 4: Goal-Setting, Strategy Selection,
and Objective-Setting
Goals
 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.
Step 5: Plan Development
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Description of programs, activities, roles, and funding
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Writing of tourism plan reports
Step 6: Plan Implementation and Monitoring
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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
Step 7: Plan Evaluation
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The performance on goals and objectives is measured.
Recommendations are made for future tourism
planning based on the results and outcomes of this
plan.
Tourism Development
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)
Principles of Sustainable Tourism
Development
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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)
Main Forms of Tourism Development
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Low-impact to high-impact tourism
Ecologically sustainable tourism development (ESTD)
Alternative tourism
Mass tourism
Resort tourism
Private-Sector Roles in Tourism
Development
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Idea generation
Entrepreneurial role
Specialized technical skills
Financing
Volunteer Sector Roles in Tourism
Development
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Operating attractions
Creating and running events and special meals
Providing travel information services
Financing the development of community-oriented
facilities
Government Roles in Tourism
Development
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Stimulator or catalyst for development
Developer
Operator
Social tourism provider
Regulator of tourism developments
Types of Government Incentives for
Tourism Development
FISCAL INCENTIVES
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Tax holidays or deferrals
Remission of tariffs
Tax reductions
Types of Government Incentives for
Tourism Development
DIRECT AND INDIRECT INCENTIVES
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Nonrefundable grants
Low-interest loans
Interest rebates
Forgivable loans
Loan guarantees
Working capital loans
Types of Government Incentives for
Tourism Development
DIRECT AND INDIRECT INCENTIVES
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Equity participation
Training grants
Infrastructure assistance
Lease backs
Land donations
Criteria for Government Financial
Assistance
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Competitive impact
Compliance with policies and plans
Developer and operator capabilities
Economic contributions
Environmental impact
Equity contributions
Feasibility
Social-cultural impact
Tourism impact
Objectives of Pre-Feasibility and
Feasibility Studies
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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.
Steps in Feasibility Studies
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Pre-feasibility study
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Detailed economic feasibility study:
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Site analysis
Market analysis
Economic feasibility analysis
Cost/benefit analysis
Purposes of an Environmental Impact
Assessment
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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)