Lecture 2
Destination Management
Dr. Petros Kosmas, Lecturer
Varna Free University
BA Tourism Management
Nicossia, 2011
Lecture Two
Explores the issues involved in the development
of new attractions, including feasibility studies, financing, business planning and project
management.
Summary
Development of visitor attractions
Feasibility study objectives
(main ~ and additional ~)
Feasibility study contents
(market analysis, site selection and funding)
Sourcing information
(quantitative & qualitative research; primary & secondary data)
Factors influencing success of visitor attractions
(organization and its resources, product, market and management)
Funding/financing visitor attraction projects
(direct & indirect funding from private, public and voluntary sector)
Business Planning
Business Planning
Introduction
The Business Plan is usually a follow-on from a
Feasibility Analysis;
It incorporates information compiled for the feasibility
analysis;
Establishes a clear guideline for future development of
the business;
Must be seen as a working document that is used to
regularly measure performance;
Business Planning
Introduction
The Business Plan must be reviewed and updated as
the operation grows and the business environment
changes;
Is essential when financing is required,
forms the core information for loan funding
applications.
Often called “Action Plan” although this is just a part of
the business plan
A business failing to plan, is a business planning to fail.
Business Planning Introduction
Market Study
Site Selection
Financial
Viability
Business
Plan
Feasibility
Study
Idea
viable?
STOP
interesting?
STOP
Implementation
?
Why Plan?
Identify what business you are in;
To determine where you are now;
Determine where you want to be in the future
- 12 months / 3 years / 5 years
(clear, measurable objectives);
Identify how to get there
- how do you achieve those objectives?
(action plan);
Why Plan? cont.
Adapt the business to changes in the market;
Gives every person in the organization an
understanding of the common objectives and
identifies what the benefits are of achieving
those objectives;
Gives the financiers confidence in what you are
doing;
Allows a structured approach and not ‘hit or
miss’.
Case Study
Business Plan Outline
Business Plan Outline
case study
The Business
The Market
The Marketing Plan
- Business Objectives
- Market Research
- Marketing Objectives
- Marketing Strategy
Operations
Financial information
Monitoring
****Provides an overview of the main headings of a business plan
Business Plan Outline“
No commonly agreed structure
Represents the main headings by concentrating on the
core activities of every business enterprise
Additional headings are possible
- depend on the business you are involved in
and the purpose of the business plan
(internal, external purposes or a mixture of …)
The scope of the business plan and the extend of every
single part of the plan varies strongly
What does planning
encompass?
Business is primarily about one thing only,
determining what it is the consumer wants
and providing it at a profit.
Strategic positioning;
Market research;
Marketing strategy;
Financials;
Human resource management;
Operational planning.
!
Strategic Positioning
Analysis of business environment:
What is the pattern of growth in your sector?
Which elements of the industry are doing well?
Is the industry easily affected by change?
Who are your competitors?
How are they doing?
Who will be your competitors tomorrow?
Are there viable substitutes for your product?
Market Research
Recognise that the market is not stagnant
and that things change;
How can we provide a product if we do not understand
what the markets wants?
Recognise that all tourism ventures are effected
by a range of issues including:
economic conditions, trends, level of domestic and
international tourism, seasonality, appeal of the
area, other facilities and infrastructure, resident
population, local economy, attitude to tourism.
Marketing Strategy
Customer questions to consider:
Who they are?
Where do they come from?
What they buy?
Why they buy?
Where they buy from?
What is the best combination of product features?
Distribution channels;
Strategic relationships;
Marketing Plan, actions and strategy.
Financials
Critical part of Business Plan;
Should cover following:
Cash flow,
Projected revenue;
Pricing structure and costs,
Profit & loss projections,
Long-term capital requirements.
Human Resource Management
Recruitment policy:
Job inquiries, resume handling, etc.;
Job descriptions: skill requirements, task outlines,
performance criteria, regular review procedures;
Training and skill development:
in-house, on-the-job, external;
Salary and pay management, taxation, workcover, etc.
Operational Planning
Is a critical part of the successful day-to-day
operation of a tourism business;
Allows staff (and management):
clear understanding of the tasks that need to be
conducted to run the business efficiently;
Allows management:
the ability to plan, document, review and
update operational issues;
>>>
Operational Planning cont.
Includes:
Operational standards & procedures;
Human resource task management;
Resource and equipment management;
Risk and emergency management;
Environmental, or sustainable tourism management.
Documented procedures do not have to be overly detailed or
complex, they can be simple and still be effective.
Resource & Equipment
Management
Instructions for equipment use:
- setup, normal usage, cleaning, troubleshooting;
Resource management:
daily maintenance, cleaning schedules – room service,
restaurant setup, grounds, water, heating etc.
Suppliers and transport requirements.
(Operational requirements: staff numbers, skill
requirements;)
Periodic maintenance schedules, safety checks, repairs;