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Destination Competitiveness
DESTINATION MANAGEMENT
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Outline Destination Competitiveness
The Nature of Competitiveness
Economic Competitiveness
Socio-Cultural Competitiveness
Political Competitiveness
Technological Competitiveness
Environmental Competitiveness
Evolution of Travel Demand Challenges to Competitiveness
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The Nature of Competitiveness Do destination compete with each other?
If so, what makes a destination competitive?
Competition is the very nature of doing business
The nature has evolved; rules change; priorityareas shift
Emergence of new destination and the evolutionof other makes this more challenging
Destination managers must be cognizant of this
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The Nature of Competitiveness Competitiveness can be viewed from different
aspects:
Economic
Socio-cultural
Technological
Political
Environmental
Most of these are internal, based on conditionswithin the destination
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Economic Competitiveness Based on attributes that the nation possesses
Factor conditionsfactors within a destination thatcan be exploited to heighten companies
competitiveness e.g. skill of the labour force,
linguistic abilities, infrastructure, availability of rawmaterials
Demand conditionslocal market demandforproducts will enhance competitiveness, drivegrowth, innovation and competitiveness e.g. Japan,South Korea
Related and supporting industries presence orabsence of local suppliers that are internationallycompetitive.
Firm strategy, structure and rivalry
how areSource: Ritchie & Crouch, 2003, The Competitive Destination...
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Porters Diamond Model
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Socio-cultural Competitiveness The ability to attract visitors repeatedly despite
the economic and political challenges that mightexist
The characteristics of the society and the cultureof a people truly makes a destination unique
Some strong destinations lack socio-culturalappeal e.g. Canada, Scandinavia
How appealing is the destination to the market?
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Political Competitiveness
Refers to the attempt to organise in order togain control over the resources needed fortheir well-being
Indicators of Political Competitivenessinclude:
GDP
Unemployment
Extent of the rule of law Corruption
Press freedom
Measure of collective health (life expectancy, infant
mortality)Source: Ritchie & Crouch, 2003, The Competitive Destination...
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Political Competitiveness The increase in political unions:
European Union
CARICOM
North American Free Trade Agreement (NAFTA)
MECOSUR
Asia Pacific Economic Cooperation etc.
Rise of the city states that are economic, political
and social leaders e.g. New York, London, Tokyo,Seoul etc.
Population in the millions
Major players in global urbanisation
Dominant tourist centres
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Technological Competitiveness Technological adaptation is now important to
destination competitiveness
Access to and use of the internetis the mostsignificant change
Global Position Systems (GPS) also having an impact Previous changes include the use of Central
Reservation Systems
Most aspects of tourism have gone hi-tech; Need tobalance with hi-touch
Major consideration for competitiveness what dovisitors want?
Destination need to choose the best technology thatwill visitor enhance experience
Need of residents also should be considered
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Environmental Competitiveness More emphasis shifting to the environment in
determining competitiveness
Assessing the full cost of tourism on theenvironmental resources of a destination
Environmental stewardship of resources nowcritical
In this paradigm shift alternative forms of tourism
are increasing in popularity e.g. ecotourism,cultural/heritage tourism, community-basedtourism
Market driven
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Evolution of Travel Demand There has been shifts in:
Expectations
Visitor interest
Education
Activities
Resulting from shifts in demographics andsocietal values
Destination competitive challenged in the face ofthese changes
Greater need for destination management
Emphasis has to be on planning and
development
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Challenges to DestinationCompetitiveness
Destination competitiveness is also based onexternal factors
Global economic crisis
Pandemics e.g. H1N1, SARS, Bird Flu
Volatile oil prices
Weather disturbances (The Travel & Tourism Competitiveness Report2011)
Natural disasters
Crime Acts of terror
A major part of destination management isanticipating and responding to these challenges
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A Competitive Tourism
Destination
A truly competitive destination has the following
characteristics:
The ability to increase tourist expenditure
The ability to attract visitorswhile providingthem with a satisfyingmemorable experience
The ability to make a profitwhile doing this...
While enhancing the well-being of residents
and
The ability to preserve the natural capitalforfuture generations
Source: Ritchie & Crouch, 2003, The Competitive Destination...; pp 2-3