Introduction Tourism is a unique industry. It can effectively create its own demand through the creation of attractions and provision of supporting infrastructure, following the “build it and they will come” approach. This is why tourism has become what is sometimes the main source of income for remote and/or less developed countries and destinations - in particular those with significant natural attributes that can be exploited - and is often seen as the saving grace for struggling economies, on both macro and micro levels. However, despite this recognition of tourism’s potential as an economic growth stimulant, it should also be recognised that the successful development of a tourism destination is not as easy as it sometime seems and that sustainable development of tourism infrastructure is dependent on a complex array of criteria, which are often case and destination specific. This article provides a brief overview of the fundamentals for the successful development of tourist destinations Tourism Strategy In order to create a tourism industry, on a national, regional or local level, both the natural and man-made environment must be conducive to the development of supporting infrastructure to accommodate tourist demand. The legislative environment and financial commitments must be in place as well. A tourism strategy should be created, providing a tourism management and marketing structure, supporting research and product development and giving attention to risk management. It should also set out at protecting the very environment that provides the opportunity, and deal with issues such as environmental protection, heritage issues and limitations of carrying capacity. The strategy should be aimed at placing the tourism industry in a strengthened position for more holistic development over the long term. A source of sustainable competitive advantage The first logical requirement is the very heart of the industry: the attraction itself, the “raison d’etre”. This may be a natural phenomenon such as a beach or rainforest, a cultural attraction or based on other unique destination characteristics. It may also be a man-made attraction, such as a theme park, for example. A holistic destination approach Tourism development needs to be considered in relation to facilities and infrastructure already existing in any destination. New ventures should be complimentary to existing product and augment an existing destination ‘feel’. As visitors demand more ‘experiential’ tourism, the relevance of the “whole destination” and it’s ambience will become increasingly important. Critical mass The bigger the attraction base, the broader the appeal to a more diverse cross section of people, the more interest from transport carriers in servicing the destination and so on………. Critical mass drives the marketability and connectivity of a tourist destination. Ease of access Cost-efficient access from large cities and medium sized population centres is a fundamental consideration. For regional and rural tourism attractions, ensuring a range of viable transport alternatives to meet target market affordability thresholds is critical to driving the success of any regional venture. Tourism is a competitive industry, even on a global scale. If access to a destination or attraction is too complicated, time consuming, expensive or not providing adequate capacity, even the most spectacular attraction will remain a secret to most tourists, as they will prefer competitive alternatives. Australia, for example, is considered by many as their most desirable tourist destination. However, relative distance and the associated cost of getting there are providing a significant barrier to most would-be visitors. An existing population base Related to the previous point is the need for a readily available demand base. Tourism attractions and facilities are often not solely developed for tourists, but also to appeal to the broader business and leisure markets existing within or close to the destination. Demand from a captive community helps to moderate seasonality and provides an opportunity to utilise promotion to stimulate consumption within a short timeframe, particularly in the case of accommodation establishments. Political buy in, local support There is a lot to be said for gaining the support of key political influencers, particularly at the local Government level, where most decision-making occurs. Managing the expectations of the local community, gaining their support and keeping all stakeholders informed on the progress of any venture from the very outset should help alleviate conflict. That said, sometimes communities can be ‘parochial’ and sensitive issues need to be managed with great tact and professionalism. The right financing solution Less debt, more equity – in most instances. This is moving away from debt-led models to some of the more innovative and sustainable models encountered in the late 1990s and early 2000s including mixed-use developments using residential sales of residential units to fund tourism components. Understanding demand fundamentals Understanding the demand fundamentals existing in any given tourist destination aids the modelling of realistic demand and revenue projections. The availability, timely provision and reliability of visitation data will assist financiers, developers, owners and operators in more accurately forecasting performance. Marketing prowess Marketing in tourism can be described as both science and art, or a complex interplay of the two. Developing the right marketing channels; the right contacts; understanding how the tourism distribution and promotion systems work in the regional and national context; taking a unique approach; and persistence. Attaining the mix right in the context of a regional destination and maintaining flexibility in the approach will most certainly drive performance. The right staff As a service based industry, labour and payroll costs are usually one of the highest expenses incurred by tourism businesses. Access to a skilled pool of employees is a vital consideration, particularly in regional areas. Regional ventures need to address the cost of training, importing/attracting skilled professionals from other areas and managing the likely transient flow of casual employees. The Market Evolution Cycle Once a tourist destination has commenced development and is maturing, it enters the market evolution cycle. Whether the development is carefully planned or just happened over time, at some point in time the carrying capacity of either the natural or social environment or the infrastructure may be reached. Saturation will occur, and the quality of the tourism product will decline, with a subsequent negative impact on the environment and the local community. As the quality of the attraction and/or the destination drops, so will the number of tourists visiting it. Their satisfaction level will also decrease or, worse, a less desirable type of tourism will develop. Typical evidence of this deterioration process include the following:
- deterioration of the natural ecology due to over- development and intensive use;
- pollution of beaches, lakes, rivers and underground water resulting from improper sewage and solid waste disposal;
- visual clutter of poorly designed, intrusive buildings and signs;
- pedestrian and vehicular congestion and pollution;
- insufficient capacity of utility services, such as water supply, electric power and telecommunications during peak use periods;
- changes in traditional land-use patterns, loss of open space, displacement of residents from prime land and deterioration of community character;
- damage to archaeological and historical sites and scenic areas due to over-use or poor management;
- friction and resentment between the host community and tourists because of over-crowding of the tourism area and pre-emption of amenity features by tourists so that residents cannot enjoy them; and
- social problems including crime, drug abuse and prostitution.
- increasing the carrying capacity;
- dispersing the pressure; and
- limiting access.
- expand capacities of utility services such as water supply, sewage and solid waste disposal and telecommunications;
- expand capacities of transportation facilities and road services, or limit the use of these facilities, for example by not allowing private car use on congested access roads but providing bus service access from peripheral parking lots;
- relocate high-use attraction features closer to access points to reduce transportation demand;
- disperse tourist attractions and facilities to avoid congestion;
- replace multiple individual tourist facilities with larger group facilities;
- create one-way traffic systems to regulate and improve visitor flows;
- establish new trails and improve existing ones;
- provide visitor education to modify visitor behaviour;
- establish strict land use, design and environmental regulations on proposed new developments; and
- take renewal measures to improve existing development.
- imposing self-limiting measures, such as higher prices on room rates and admission fees;
- closure of certain places, such as environmentally fragile nature areas at certain times (to allow time for rejuvenation or during critical periods such as animal breeding seasons);
- limiting parking, passenger seat availability or another type of transportation capacity;
- establishing a maximum number of accommodation units (rooms, camping sites, etc.) allowed in the areas reaching saturation levels;
- establishing a maximum number of persons to be allowed at certain tourist attraction features at any given time;
- re-routing of traffic around tourism centres and allowing only pedestrian access to popular places; and
- prohibiting construction of new facilities through zoning or permit procedures.
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