PROGRAMME ACTIVITIES (2002-2005) DESTINATION MANAGEMENT CONCEPTUAL FRAMEWORK Destination is the fundamental unit, on which all the many complex dimensions of tourism are based, being the focal point in the development and delivery of tourism products and the implementation of tourism policy. It is also the basic unit of analysis in tourism. A tourism destination consists of mainly 4 dimensions: - Spatial characteristics such as scale and boundary definition - Host community elements - Management (supply) orientation - Marketing (visitor) orientation Tourism being a multidisciplinary phenomenon is influenced by a range of economic, technological, societal, legal, political and even psychological forces. The continuous quantitative growth of tourism has been accompanied in the last decades by significant quantitative changes which need new policies and strategies to reinforce the competitiveness of tourism destinations. Tourism policies normally focus on macro-level policies by creating an overall strategy for tourism development and planning and also by facilitating the conditions within which tourism can succeed. On the other hand, “destination management” is understood to be a recent conceptualization of a micro-level activity at national, regional and/or local level in which the tourism stakeholders carry out their individual and organizational responsibilities aiming to achieve the macro-level policies. “Competitiveness” is the key word for any destination manager. In general terms, the notion of destination competitiveness should be consistent with the notion of competitiveness in the international economics and international business literature. Destinations compete primarily for economic reasons with the aim of attracting more tourist expenditure, nevertheless, competitiveness is linked to the ability of a destination to deliver goods and services that perform better than other destinations on its overall “appeal” and the tourist experience offered. The study of destination competitiveness, as a relative multidimensional concept, is an emerging field and needs further understanding as a fundamental tool (not an objective) for destination management and marketing. 2 Destination Management/Marketing Organization: Over the last few decades, tourism administration has become highly decentralized parallel to the change in the role of central governments. Not only in developed countries, but also in many developing countries as well, increasing powers of decision-making is being shifted to provincial/state and local authorities. In the meantime, the key industry stakeholders have further been involved in the policy making process and actively been engaged in tourism development and destination marketing issues. The trend of decentralization of tourism management has also given a broader responsibility to the Destination Management/ Marketing Organizations ( DMO) as well as a much broader range of opportunities ensuring destination competitiveness. Promotion and marketing remain two important functions of the Destination Management Organizations. Within this context, the DMOs have the responsibility of the identification of the strategic markets, image management (measuring and monitoring the image) branding, positioning and implementing the promotion strategies. In addition to these activities, depending on the level of decentralization of tourism management in the country, DMOs, within their new and broader context of responsibilities are also in charge of tourism development and planning, creating investment opportunities and developing tourism related infrastructure, quality management, visitor management, human resource development, finance and capital management, crisis management and information and research management. As a consequence, the success of the destination (not totally) but largely depends on the performance level of the strategic and operational functions of the DMO. Programme of Work for Destination Management: The programme aims at supporting the members in their efforts directed to: - Enhance sustainable development of tourism, maximizing economic, social and cultural benefits for the local communities, Develop effective management and marketing tools to reinforce the destination competitiveness, Facilitate new product development in line with market trends, needs and interests, Undertake appropriate research to measure the economic impact of tourism as well as to identify the strategic priorities of the destination. It is recalled that the main outputs of this programme focus on: - Improved capacity of the destinations for performance in management, Disseminated know-how and good practises related to destination competitiveness and optimization of destination management, Advocacy and broader awareness with regard to decentralization and localization of tourism management with major participation of the private industry. 3 PROGRAMME ACHIEVEMENTS: ( 2002-2005) Meetings of the Task Force for Destination Management: The members of the Task Force, reflecting WTO’s intergovernmental character as well as considering the need for public-private co-operation/partnership have met four times since March 2002 and chaired by H.E. Dr. Michael Refalo, the former Minister of Tourism of Malta. (High Commissioner for Malta in the U.K) The following issues were incorporated in the agenda of the Task Force meetings: - Identifying the management-based priorities and concerns of destinations, - Competitiveness and measurement of a destination’s performance and success, - Guidelines for collecting reliable and comparable data for destination marketing, e.g. city tourism management - Results of the survey on the structure, roles and responsibilities of Destination Management Organizations, - Assessment of “destination image”, “brand effectiveness”, “positioning” as the essential tools for marketing strategies, the role of DMOs in this respect, - Strategic approach for restructuring tourism after natural disasters, cases of Hurricanes and Tsunami, proactive support of tour operators and the role of regional organizations (e.g: PATA & CTO) - Evaluating and improving Destination Web-Sites. ACTIVITIES: ECONOMIC IMPACT AT LOCAL DESTINATION LEVEL: A workshop on the “Contribution of Statistics and Economic Analysis to Effective Destination Management Strategies” was held in Antibes, Juan Les Pins, France, on 19-20 February, 2004. At this stage, the region of Europe was targeted, since this region implies more decentralized models in tourism management and has the experience in TSA at regional/local level. Aim: To stimulate the debate between the technicians responsible for measuring the economic impact of tourism at regional/local level together with the decision makers so as to highlight how statistics and economic analysis of tourism can support the identification of strategic priorities for destination management. Output: Presentations and ensuing debates highlighted: - The need to establish a bridge between statistical/analytical culture of technicians and the management mindset of policy makers and the private industry. 4 - The importance of establishing a statistics/research/information structure in the destination. The need to orient the economic analysis of tourism in accordance with the real needs of the destination The role of regional/local TSA as a tool. SURVEY ON DESTINATION ORGANIZATIONS: MANAGEMENT / MARKETING A large scale research of Destination Management/Marketing Organizations has been undertaken as the first of its kind carried out on a global basis. Aim: To develop a reliable base of knowledge about the structure, scale, status, activities, resources and priorities of DMOs on a global basis. It is intended as a benchmark survey to track the development and activities of these organizations on a regular basis. Output: The results enable us to understand the institutional framework within which the DMOs (national, regional, local) work and to measure their attitudes and actions on key policy issues. The study also revealed the degree to which DMOs had adopted and implemented an e-business strategy. In order to establish an on-going web-based source of knowledge about the Destination Management/Marketing Organizations and to observe the racking of trends, the 2nd phase of the survey will be carried on in 2006. STRATEGIC TOOLS FOR DESTINATION MARKETING : A round table on “Strategic Tools for Destination Marketing” was held during the 73rd Session of the Executive Council which took place in Hyderabad on 10 July 2004. Aim: To identify the marketing fundamentals of a destination ( destination image, destination brand, positioning and vision) in the very competitive environment and to demonstrate the crucial role of the Destination Management Organizations in using the most effective tools for successful destination marketing. Output: The round table focused on the strategic goals and marketing plans of various destinations in order to highlight the importance of image management , branding, positioning and creating a vision for the destination The meeting also analysed the process of research and market intelligence being one of the key principles for destination performance. 5 NEW MODELS FOR DESTINATION MANAGEMENT AND MARKETING STRUCTURES An international conference on “New Models for Destination Management and Marketing Structures” was held in Larnaka, Cyprus, on 21.22 October 2004. Aim: To provide a detailed understanding about the ways in which destination management and marketing are evolving in different parts of the world with the aim of increasing competitiveness of the destination and effectiveness of the Destination Management Organization. Output: The conference highlighted the key changes affecting tourism destinations ( changes in the marketplace as well as in the wider environment) and identified the challenges faced by the Destination Management Organizations at national, regional and local level in the process of building new structures and advocating new practices for a more competitive destination. The presentations and the ensuing debates reviewed many key principles for successful destination management and marketing and explored the new direction of DMOs by analysing their mission statement in the changing environment of tourism. NEW PARADIGMS FOR CITY TOURISM MANAGEMENT: FORUM: Istanbul, Turkey, 01-03 June, 2005) Having considered the most recent trends and forecasting studies indicating the outstanding growth in the demand for city destinations and having recognized that city tourism represents both a complex product and a complex experience, the Forum aimed at: i) With the participation of all the stakeholders involved in city tourism management including the NTAs and NTOs, providing an international platform for the discussion of the role of city tourism in the changing marketplace, ii) identifying the emerging trends, opportunities, needs and key challenges of city tourism policy and management together with management structures, iii) Highlighting the determining factors for city tourism competitiveness and value for effort concept. Output: The elaborations enable us to understand the diverse parameters of city tourism in order to provide a broad framework and approach in analysing the needs of all the stakeholders who take part in the management process. The forum provided the participants with a detailed understanding of the major components of city tourism ( in 6 demand and supply terms) and the paradigms for a successful management and performance, under the discussion topics like: ” emerging trends and opportunities”,” conceptual framework for competitiveness”, “reinventing the city breaks”, “city tourism and culture”, “the value for effort”, “key challenges for city tourism competitiveness”, “the events market”, “MICE Tourism”, “the convention market”, “youth travel”, ”the impact of low-cost airlines”, “advertising cities”, “consumer experience”, “dynamics for project development”, safety and security systems”, “urban quality life indicators”, “visitor’s perception for quality”, “marketing myths”, “the impact of new media”, “public-private partnership”. ACTIVITIES- 2006-07: OUTCOMES: 1) Improved capacity of destinations to develop effective and successful management/marketing tools 2) Disseminated know-how and good practices related to destination competitiveness and optimization of destination management. Advocacy and broader awareness with regard to the decentralization and localization of tourism management. Outcome 1): Key result area: Strengthening the competitiveness of destinations through developing strategic management and marketing tools Activities: a) Identification of the key factors for success in destination competitiveness and dissemination through seminars and workshops b) Highlighting the areas for further conceptual and empirical research for destination performance Outputs: Improved global knowledge and analysis of destination marketing strategies. Key result area: Monitoring consumer behaviour and tourist satisfaction in destinations Activities: Development of guidelines for a harmonized data pool for guest surveys Outputs: Consistent and comparable analysis to be used by destination managers Outcome 2): 7 Key result area: Developing effective organizational models (structures) for destinations associated with the key change drivers in the marketplace Activities: a) Comparative analysis of destination management organizations, sharing and developing know-how and good practices in workshops and seminars with all the destination stakeholders Outputs: DMO Typology, Specialized DMO Directory; benchmarking performance of DMOs over time and against competition, Key result area: City Tourism Planning and Management Activities: Quantitative and qualitative analysis of city tourism. Set of activities to illustrate good practices and new challenges Outputs: Policy and management recommendations EVENTS OF 2006-07: • • • • • • Regional Seminar/Workshop for Africa: Tourism Destination Management-Routes to Success, 27-29 March 2006, Addis-Ababa, Ethiopia Seminar on “The Impact of Low-Cost Airlines on Destination Development and Management Dubrovnik, Croatia ( dates to be fixed) International Conference on Event Management and Destinations, 15-17 November 2006, Budapest, Hungary Regional Seminar on “Urban Tourism”, Buenos Aires, Argentina ( dates to be fixed) Workshop on DMO’s:Cuenca, Ecuador (dates to be fixed) Workshop on “Monitoring Consumer Behaviour I Destinations” ( host and dates to be fixed)