DIMENSIONS OF TOURISM POLICY

OBJECTIVES

To understand tourism policy and its goals To present policy frameworks and contexts To highlight the need for integration of

between private and public agencies and other enterprises

To understand policy implications for different stages of the tourism destination life cycle.

What is Policy?

“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 a means of coordinating objectives to

maximize benefits and minimize costs. has both a micro-component and a macro-

component

Why is Policy Important?

To provide overall goal stability in an organization or a destination.

To reduce repetitive thinking

To improve consistency of decisions.

What is Tourism Policy?

“…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

NATIONAL POLICIESNATIONAL POLICIES

TOURISM POLICIESTOURISM POLICIES

TOURISM POLICY TOURISM POLICY TOOLS & INSTRUMENTSTOOLS & INSTRUMENTS

OVERALL FRAMEWORKOVERALL FRAMEWORK

NATIONAL POLICY OBJECTIVES: Examples (Adapted from Baum)

Generation of foreign revenue/ improve Balance of Payments

Provide employment Improve national economy: poverty alleviation Create awareness about the country: generate

international goodwill Support environmental/historic conservation Contribute to infra-structural development Revive cultural traditions and art Contribute to sustainable development

National Tourism Policies: Examples (Akehurst et al 1993)

Reduce seasonality Increase certain foreign markets Redistribute tourism in the country Improve quality of tourism product Diversify tourism products Improve training and professionalism in tourism Encourage joint ventures

POLICY TOOLS: Examples

Regulation of enterprises Target marketing Zoning of land Information systems for domestic tourists Grants to private sector to develop new

products Taxation Tax incentives

The Context of Tourism Policy

From government as decision maker to government as facilitator (government vs. governance)

Integration of all destination policies Shifts in tourism from mass tourism to

customized, sophisticated tourism Policy shift to focus on community well-being

Changing Frameworks for Tourism Policy

DEMAND INPUTS MANAGEMENT ENVIRONMENT

•Sun•Massification•Lack of tourists’ own criteria•Non-differentiated markets

•Complex motivations•Individualism•High expectations•Complex segmentation

•Integrated technologies•High-tech/high-touch•Labor key for quality•Environment iskey to quality

•Isolated technologies•Cost-savingtechnology•Labor as cost•Environmental issues irrelevant

•Competition thro innovation•Product design to meet customer requirements•System economies•Managing capacity

•Price competition•Selling production•Economies of scale •Maximize production

•Procedures•Re-structuring•Internalizing externalities

•Norms and rules•Fast economicgrowth•Uncontrolled externalities

Source: Fayos-Sola, 1996

OLDOLD

NEWNEW

Stakeholders in Tourism Policy Creation

Policy formulationTourism PolicyTourism Policy

Funding agencies

Government agencies

Interest groupsHost CommunityProfessional

associations

Private Industryall sectors

Environmental, economic, social, political, technological arenas

TouristsVolunteer groups

Why is Government Involved?

economic reasons: GNP, balance of payments, taxation, employment

resources of tourism belong to residents

individuals and firms tend to look out for their own interests

tourism is an agent of social change

Layers of Government Involvement

internationalregional

Ministry of transport Ministry ofculture & arts

Ministry of…

national

local

What is Tourism Planning?

Most simply - planning is the implementation of policy

brings in the elements of economic feasibility and social acceptance.

a tourism plan is a document that has been the focus of political debate and is publicly available.

WTO Study of Tourism Plans

Over 1,600 tourism plans were studied Approximately one third were not

implemented It was very rare for plans to give

priority to social aspects over profitability

Most plans were not supported by specific legislation

Five Types of Plans that Relate to Tourism (WTO)

General national plan - includes tourism National infrastructure plan - includes

tourism

National Tourism Development plan Tourism Infrastructure Plan National Promotion and Marketing plan

Approaches to Tourism Planning

master plan approach continuous and incremental approach integrative approach

Policy Issues at Different Stages of Development

What is the “right” number of tourists? Who are the “right” tourist types How much contact between residents and

tourists? How much support to give to private

sector/entrepreneurial development? Who is in control of decision making?

Destination Life Cycle

Time

# tourists

rejuvenation

reduced growth

decline

immediate decline

stabilisation

explorationexploration

involvementinvolvement

developmentdevelopment

consolidationconsolidation

stagnationstagnation

After Butler and Swarbrooke

Critical range

Case: Culture and Tourism Policy

Cultural considerations– co-existence (when tourism does not dominate

the economy)– exploitation (culture is generator of revenue) – imaginative reconstruction (preservation without

being overcome by commercialism)

Examples of Public and Private Sector Interplay: Denmark & Singapore

Denmark: – Wonderful Copenhagen (WoCo): product &

service development in captial city; coordinator of networks for industry

– Danish Tourism Board (DTB): national promotion & information provision

Singapore:– Singapore Tourism Board (STB): promotion,

information provision and regulation

Contrasting Policies

Denmark & WoCo– Promotion– Controls Info centers– No licensing– Encourages product

development– Infrastructure builder– Initiator of networks for

industry– No censoring– Seeks to use residents’

tastes as a lead FACILITATOR

Singapore & STB– Liaison w other state

agencies– Licensing of tour guides &

travel agencies– Product development – Cooperation with travel

agents: subsidizes promotional material

– Organizes activies and festivals

– Seeks to balance commercial and cultural

INITIATOR w CONTROL

Sustainable Tourism Development

“…is tourism which is developed and maintained 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 wellbeing of other activities and processes.” Butler 1993.

The Concept of Carrying Capacity

Physical Environmental Economic Sociocultural Infrastructure Perceptual

Role of Tourism Organizations: national

Destination Information Provision Marketing and Promotion Collection of tourism statistics and data Tourism product grading Tourism product development Training Tourism Policy development

THENMALA CASE