Tourism Planning and Marketing Excel Books Copyright © 2014, Excel Books All Rights Reserved EXCEL BOOKS A-45, Naraina, Phase I, New Delhi - 110 028 Published by Anurag Jain for Excel Books, A-45, Naraina, Phase-I, New Delhi - 110 028 and printed by him at Excel Printers Pvt. Ltd., Plot No. 317, Sector-7, Phase-II, IMT Manesar, Gurgaon - 122 050 CONTENTS Lesson 1 Concept and Introduction........................................................................................................... 1 1 Concept and Introduction LESSON 1 CONCEPT AND INTRODUCTION CONTENTS 1.0 Aims and Objectives 1.1 Introduction 1.2 Concept of Policy 1.3 Formulating Tourism Policy 1.4 1.3.1 Objectives 1.3.2 Approach to Policy Formulation Techniques of Plan Formulation 1.4.1 Consideration of Development Objectives and Policies 1.4.2 Survey and Analysis Inputs 1.4.3 Tourist Attractions 1.4.4 Tourist Facilities and Land Area Requirements 1.4.5 Transportation Facilities and Services 1.4.6 Other Infrastructure 1.4.7 Integrated Analysis and Synthesis 1.4.8 Land Availability 1.4.9 Major Opportunities and Constraints 1.5 Let us Sum up 1.6 Lesson End Activities 1.7 Keywords 1.8 Questions for Discussion 1.9 Suggested Readings 1.0 AIMS AND OBJECTIVES After studying this lesson, you should be able to: Understand tourism policy and its goals Present policy frameworks and contexts Know about the current concepts of policy and its importance Appreciate the approaches for policy formulation 1.1 INTRODUCTION "A course or method of action selected from alternatives in light of given conditions to guide and determine future decisions ". ( WEBSTER ) A normative science. Goal-oriented planning. 2 Tourism Planning and Marketing A means of coordinating objectives to maximize benefits and minimize costs. Both a micro-component and a macro-component. The policy is important: To provide overall goal stability in an organization or a destination. To reduce repetitive thinking. To improve consistency of decisions. Tourism Policy is: The complex of tourism related decisions which, integrated harmoniously with the national policy for development, determines the orientation of the sector, and the action to be taken. - Acerenza 1985. Tourism policy development is a process that covers at least 3 elements: Goals and objectives for the destination. Available resources: economic, environmental, social, cultural, human resources. Consideration of the impacts of tourism on the destination; and their measurement and monitoring. 1.2 CONCEPT OF POLICY According to a dictionary definition, policy is “any course of action followed primarily because it is expedient or advantageous in a material sense. When put into a political theme – public policy is a concept, whereby the government or a political party will determine decisions, actions and other matters that will prove advantageous to society in general. Policies are the principles that underline the actions that will take place to solve public issues. This may be administered through state or federal action such as legislation, regulations and administrative practices”. The starting point for anyone who is producing policies is to realize that there needn't always be consistency in them. This is mainly because the values of society are continuously changing, and policies being the representation of society's preferences and ideals, must change with them. It is at this broad level that policy becomes a complex interplay of "social and economic decisions, prevailing ideas, institutions and individuals, technical and analytical procedures, and general theories about the way policy is made”. All of these factors when taken into account will determine how the new policy will affect the following: Private Citizens Companies Corporations Associations In general, the purpose of government is to add value to the lives of the people it serves, and through good policy making, this can be achieved. Policies should express and embody society's needs and values, and this is achieved through the comprehensive use of politics involving cooperation from groups outside the government body. The tourism policy of a country provides the most explicit indication of the governmental approach to sustainable tourism development and the role that all stakeholders in the tourism industry need to play. As part of tourism policy, organizations can be set up which are able to set objectives, formulate plans and implement programmes. Policy makers also need reliable information and good-quality data on a timely basis in order to appreciate the complex and long-term interactions that tourism has to maintain with the rest of the economy. If information or data are lacking, then the importance of the contribution of tourism to sustainable socio-economic development tends to be overlooked. In many countries of Asia and the Pacific, the national tourism organizations do not receive enough resources, and their capabilities therefore remain limited. Tourism policy and the work of the national tourism organization should be able to emphasize the interrelationship that involves a number of concerns related to sustainable tourism development, such as human resources development, the economic impact of tourism, environmental management, infrastructure, travel facilitation and cooperation at the regional or sub-regional levels. 1.3 FORMULATING TOURISM POLICY Tourism emerged as the largest global industry of the 20th century and is projected to grow even faster in the 21st century. India has immense possibilities of growth in the tourism sector with vast cultural and religious heritage, varied natural attractions, but a comparatively small role in the world tourism scene. A New Tourism Policy, which builds on the strength of the national Tourism Policy of 1982, but which envisages new initiatives towards making tourism the catalyst in employment generation, environmental re-generation, development of remote areas and development of women and other disadvantaged groups in the country, besides promoting social integration is, therefore, vital to our economy. It would lead to larger foreign exchange earnings and create conditions for more Foreign Direct Investment. The mission is to promote sustainable tourism as a means of economic growth and social integration and to promote the image of India abroad as a country with a glorious past, a vibrant present and a bright future. Policies to achieve this will be evolved around six broad areas, such as, Welcome (Swagat), Information (Suchana), Facilitation (Suvidha), Safety (Suraksha), Cooperation (Sahyog) and Infrastructure Development (Samrachana). Conservation of heritage, natural environments, etc. and development and promotion of tourist products would also be given importance. 1.3.1 Objectives The objectives of tourism development are to foster understanding between people, to create employment opportunities and bring about socio-economic benefits to the community, particularly in the interior and remote areas and to strive towards balanced and sustainable development and preserve, enrich and promote India's cultural heritage. One of the major objectives is the preservation and protection of natural resources and environment to achieve sustainable development. Given the low cost of employment creation in the tourism sector and the low level of exploitation of India's tourism potential, the new tourism policy seeks to expand foreign tourist arrivals and facilitate domestic tourism in a manner that is sustainable by ensuring that possible adverse effects such as cultural pollution and degradation of environment are minimized. The New Tourism Policy also aims at making the stay of foreign tourists in India, a memorable and pleasant one with reliable services at predictable costs, so that they are encouraged to undertake repeated visits to India, as friends. This would be in tune with India's traditional philosophy of giving the highest honour to a guest (Atithi Debo Bhava). 3 Concept and Introduction 4 Tourism Planning and Marketing Coherent and realistic tourism development policy establishes the basis for developing and maintaining tourism and is an essential element of the national or regional tourism plan. Applying decision making within the framework of adopted policy is much more beneficial than taking ad hoc responses to opportunities and problems as they arise. The types of tourism development policies examined in this section refer to the type and extent of tourism that should be developed in an area and any special factors to be considered in its development, including those for sustaining the natural and cultural resources of tourism. 1.3.2 Approach to Policy Formulation Tourism development policy is determined in the plan formulation stage of the planning process. It is first formulated on a preliminary basis, with evaluation of alternative policies, and then finalized after it has been tested for its suitability in achieving the objectives of developing tourism and its feasibility of implementation. In a large country or region, different policies may be adopted for different areas, but these together comprise an overall policy statement for the area. Policy is determined based on several considerations. The objectives of developing tourism provide the most important basis for establishing policy because policy is the expression of how the objectives can be achieved. For example, if the objective is for minimization of socio-cultural impact, then the policy may be for highly controlled, limited tourism development. More generally, tourism policy must reflect the overall development policy and plan of the country or region so that tourism is an integrated sector. The background review of existing policy and planning will have provided the basis for this integration. For example, a general policy may call for increased economic development in a particular region of the country, and therefore the tourism policy will give priority to development in that region if it has tourism potential. The political and economic ideology of the country or region also affects policy as related to the respective roles of the public and private sectors in developing tourism. Policy also evolves from the survey, analysis, and synthesis of any present tourism development patterns and infrastructure, tourist attractions, and tourist markets. Socioeconomic and environmental factors are very important considerations in policy determination, especially the social and environmental absorptive or carrying capacity of the area. Although international tourism and often some aspects of domestic tourism are developed primarily for their economic benefits, tourism policy must be based on all considerations so that it is developed in a balanced manner. The government should assume the lead role in determining tourism policy because policy affects the entire country and its communities and must balance economic, environmental, and social concerns. National and community objectives should prevail over individual, group, or sector interests, while still recognizing the right of those interests to be considered. However, the private sector should be involved in the policy decision-making process, and the resulting policy should provide a framework within which the private sector can effectively function. Just as importantly, the government should also involve the community or its spokesmen in this policy decision-making and not impose policy on the people. Check Your Progress 1 What is the mission of the tourism policy in India? …………………………………………………………………………………. …………………………………………………………………………………. 1.4 TECHNIQUES OF PLAN FORMULATION In formulating the structure plan it is essential to apply a systematic approach to provide a rational basis for planning, but the planner must also be imaginative in finding new and different solutions to problems when necessary. The experience of similar tourism areas or particular aspects of tourism development that are similar in other places can often provide useful ideas in formulating the plan. Mapping is essential and, as is the case with the planning analysis, the overlay mapping technique (or use of computer mapping), which shows relationships of the plan inputs and components is very useful. The various inputs to, and approaches applied in, formulating the plan are reviewed in the following sections. 1.4.1 Consideration of Development Objectives and Policies The objectives and policies set forth the overall parameters for the type of development to be planned and provide a guide for formulating the plan. For example, if the objective is to minimize socio-cultural impact and the policy is to greatly control and limit development, then retreat resort, special interest, and alternative forms of tourism can be considered; if the objective is to minimize environmental impact and the policy is to maximize integration of facilities with the natural environment, then low-density, low-rise accommodation can be considered; or if the objective is to optimize economic benefits and the policy is to develop substantial tourism but still with environmental and social controls, then large, well-planned, integrated resorts may be the suitable development form. As indicated previously, the objectives and policies at this stage are often preliminary and feedback from evaluation of the alternative structure plans may result in modification of the objectives and policies. 1.4.2 Survey and Analysis Inputs Survey and analysis inputs are very important in the systematic formulation of the plan and must be considered in both the quantitative and qualitative sense. There are various inputs found from the survey, analysis, and synthesis to make in the plan formulation. 1.4.3 Tourist Attractions The survey and evaluation of existing and potential tourist attractions and related activities indicate the type and location of major attractions, which is a basic input to the plan. If the major attractions are location-based, such as national parks or archaeological or historic sites, they will obviously be a major consideration in determining other recommendations such as the location of transportation facilities and tourism development regions or areas. The type and location of tourist attractions also largely determine the tour routes and tour programming for sight-seeing tourist activities. If it has been decided to develop special types of attractions such as a large convention center, theme park, gambling casino (as a primary attraction), or major sports facility, a location analysis study for these features will need to be conducted. 1.4.4 Tourist Facilities and Land Area Requirements The projected types and amounts of accommodation and other tourist facilities and their land area requirements are important inputs for the plan formulation. The tourist facility land area requirements are distributed in the plan, based on several considerations: The forms of tourism development to be applied; The integrated analysis and synthesis of physical, economic, and social factors (including carrying capacities of potential tourism development areas); Type and location of tourist attraction features; 5 Concept and Introduction 6 Tourism Planning and Marketing Location of existing and already planned tourist facilities; Location of existing and already planned transportation and other infrastructure development; Present overall development policies and plans; and Availability of land in the potential development areas. 1.4.5 Transportation Facilities and Services Existing and already planned transportation facilities and services become an important input to the plan because, in order to minimize capital investment requirements, the existing major transportation system should be used to the greatest extent possible for tourism. The transportation analysis will have indicated improvements required to the existing system, as well as new transportation facilities and services necessary to develop the projected level of tourism. 1.4.6 Other Infrastructure The analysis of the availability of other existing infrastructure in terms of type, extent, and location may be an influencing factor in the plan formulation, especially if the principle is applied to tourism of utilizing existing infrastructure to the greatest extent possible. The capacity and location of water supply systems and of water resources, such as underground water resources, may be an especially important consideration. 1.4.7 Integrated Analysis and Synthesis The integrated analysis and synthesis of environmental, social, and economic factors along with the tourist attractions, facilities, and infrastructure, which shows the interrelationships of the various elements in composite map form is basic input to the plan formulation in order to decide where tourism development can be appropriately located. Considerations deriving from the integrated analysis and synthesis may include, for example: The location of existing and planned urban areas, resource areas such as for agriculture and mining, airport zones and significant conservation areas to be preserved will generally preclude those places from being considered for major tourism development; The environmental analysis and especially the determination of carrying capacities will indicate optimum levels of tourism development that can take place in potential tourism areas and identify those places that should not be developed for environmental hazard reasons; The climatic and topographic patterns will identify places more and less suitable for tourism; The socio-cultural patterns will indicate the present and projected population distribution and areas where labor supply will be available and places where attitudes or traditions of residents may be an influencing factor in deciding on the type and extent of tourism; and The analysis of economic patterns will show where economically depressed areas are located that require development such as tourism. 1.4.8 Land Availability The availability of land for tourism development in particular areas, even though they are not currently developed with other uses or represent an important resource, must be considered with respect to land tenure, that is, will its owner make it available for development and, if so, will its cost be at a level to make the proposed development economically feasible. In some cases of multiple ownerships of a major development site, a consideration is determining how feasible it will be to assemble the separately owned parcels into a single unit necessary for integrated planning and development. 1.4.9 Major Opportunities and Constraints The determination of major opportunities and problems or constraints for tourism will provide a focus in the plan preparation for taking advantage of the opportunities and trying to resolve the constraints. For example, if there is an outstanding type of tourist attraction unique to the country or region, it should be given much emphasis in the plan formulation, or if a significant constraint is accessibility to and within the area, transportation would be given major emphasis in the plan's recommendations. Check Your Progress 2 State True or False: 1. Coherent and realistic tourism development policy establishes the basis for developing and maintaining tourism and is an essential element of the national/ regional tourism plan. 2. Tourism development policy is determined in the plan formulation stage of the planning process. 3. It is stated that domestic tourism must be established first in a developing country before planning for development of international tourism. 1.5 LET US SUM UP Policy has a major role in the process of development and it fosters understanding between people, to create employment opportunities and bring about socio-economic benefits to the community, particularly in the remote or interior areas, as a result of which it strives towards balanced and the sustainable development to enrich and promote the tourism industry. Another major objective is the preservation and protection of natural resources and environment to achieve the goal. 1.6 LESSON END ACTIVITIES 1. Prepare a specimen format of policy statement for the development of tourism industry in your region. 2. Keep yourself constantly updated about tourism policies from newspapers and industry journals or newsletters. 1.7 KEYWORDS Resources: Supplies of goods, raw materials etc. Impacts: Strong effects Destination: Place to which somebody is going Monitoring: Supervising any task Sustainable: Maintainable Conservation: Prevention from loss/damage Heritage: That may be inherited Environment: Surroundings Facilitation: Making easy 7 Concept and Introduction 8 Tourism Planning and Marketing Integration: Combining Cultural: Social affairs of people Evaluation: Find out Carrying capacity: Strength of the place Accessibility: Entry 1.8 QUESTIONS FOR DISCUSSION 1. What do you mean by Tourism policy? Explain the major role played by it in the process of development. 2. Describe the role of all the stakeholders in the process of formulation of tourism policy. 3. What is a tourism policy and how is it prepared? What are the contents of a master policy? Is it needed for developing every tourist spot? Check Your Progress: Model Answers CYP 1 Mission of the Tourism Policy: The mission is to promote sustainable tourism as a means of economic growth and social integration and to promote the image of India abroad as a country with a glorious past, a vibrant present and a bright future. CYP 2 1. True 2. True 3. True 1.9 SUGGESTED READINGS New Inskeep, Edward, Tourism Planning: An Integrated and Sustainable Development Approach, (1991) VNR, New York. Ashworth, G. J., The Tourist Historic City. Retrospect and Prospect of Managing the Heritage City, (2000) Pergamon, Oxford Dept. of Tourism, GOI Investment Opportunities in Tourism (Brochure). Sharma, J. K., Tourism Development. Design for Ecological Sustainability, (2000) Kaniska Publication, New Delhi. Maclean, Hunter, Marketing Management (Tourism in your business)