The Strategic Foundations: Assessing the Situation and Setting a Vision, Goals and Objectives

The Strategic Foundations: Assessing the Situation
and Setting a Vision, Goals and Objectives

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Targets and monitoring where relevant.
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2.1 The Situation Analysis: Assessing the Destination’s Competitiveness

2.1.1 Introduction

Market and competitive research and analysis
=> SWOT analysis
=> Development of destination vision, goals and action

Research’s goal:

market-orientated

Identify potential market opportunities

realistic assessment of the destination’s resources;

analysis of other destinations
=> competitive analysis undertaken

2.1.2. Research is the Key

Conducting a proper situation analysis requires an investment in high quality research

=> Examine the dimensions of tourism performance (5 questions)

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How is the tourism product performing?
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What are the overall dimensions of tourism demand and impact?

Market performance – e.g. occupancy, visitor numbers.

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Yield and profitability.
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Peaks and troughs
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Sources

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Occupancy surveys
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Attraction surveys
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National Tourism Surveys on domestic and inbound visitors.

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Tourism Satellite Accounts (TSAs).
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Local Economic Impact models
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2.1.3. Elements of the Situation Analysis

1. Macro environment

Realities facing

outside the control of the destination marketer

environment is changing at an escalating rate

2. Evaluating existing and potential tourism resources

Maximising and turning the inherent resources into competitive advantages is critical to the success of the destination strategy

FACTOR

• Tangible resources

• Intangible resources

• Financial resources

• Human resource

QUESTION

The scale of the tourism product;

The key motivation themes and their relative strengths, the unique selling points (USPs);

The capacity of tourism resources;

The quality of tourism resources;

Current and potential investment.

Identified though

Product databases;

Audits;

Site visits;

Capacity studies.

3. Assessing market trends and performance

Market performance evaluation of the destination should include an evaluation of the destination’s performance relative to its competitors

ASPECTS

Market trends. Global movements, demand consistency and fluctuations, etc.

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Source markets and segments
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Market gaps
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Market impact
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Total Market Review:

research to pull together information on the global tourism market

give a broad overview of the marketplace

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which to look at potential markets
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Current Market Review:

It is important to know who is coming now.

Sources:
Vistors survey, Database analysis

4. Assessing related and supportive industries

Destination tourism competitiveness depends heavily on the ability of related industries (retail, vehicle, etc.)

ability of the tourism industry

Institutional “thickness” and competitive maturity

the interest of developing and promoting the destination while competing with one another;

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The price competitiveness
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Innovation and diversity of facilities and services;

The quality and standards of facilities and services;

Technological astuteness & The ability of the industry to capitalise on new one

SWOT Analysis

SWOT analyses should focus minds on real strengths, significant weaknesses, the best potential opportunities, and the greatest external threats.

2.2. Identifying Competitors and Tracking the Competitive Environment

2.2.2. Who are your competitors?

All tourism destinations compete for a slice of tourism market

ranked by a range of criteria

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Source markets
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Distance from our key source markets
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Products and experiences promoted
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Market segments targeted
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Growth performance
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Peak tourism months
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2.2.3. Finding Competitor Intelligence

Require valid and reliable information and knowledge of competitors. (very expensive)

The Internet has made it possible for obtaining extremely valuable market and competitor research

2.2.4. Benchmarking Against Competitors

Benchmarking is an essential element of measuring your destination’s progress and performance.

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Tracking performance over time
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Comparing with other destinations
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The application of public resources
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Evaluating tourism strategy
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Data for benchmarking purposes:

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The volume/ value of tourists
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Market share of key source markets
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Annual average % growth compared to competitors

Accommodation capacity growth/ occupancy rates

Tourism seasonality/ geographical spread.

2.2.5. Watching the Competitive Environment

The aspects effect on the destination competitiveness:

2.4. Turning Visions and Goals into Actions

Supplier and Buyer power (ex: price, financial ability, quality…)

Threat of Entry (ex: quality and cost of new destinations)

Complementors (Additional products/ services)

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Current Competitors
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The Vision and Goals require actions to be pursued

actions should initially be related to the strategic goals and to the DMO structure

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The process should be inclusive
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Involve as many of the DMO and wider tourism community stakeholders as possible

Preparation of the action/investment plan follows the development of the strategy

The development of the action/investment plan should involve appropriate stakeholders or key players

The action/investment plan itself needs to address a number of elements including

The scope of the plan – its timescale and remit;

The process and the partners – who is the plan for and who is involved

Strategic direction - plan trying to achieve?

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Specific objectives and targets;
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Action programmes (marketing, info service, etc)

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Implementation processes;    
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Monitoring and review
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In relation to the action programmes, the plan needs to identify

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Projects/programmes of activity;
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A description of those programmes and what they will involve;

The lead agency with responsibility for delivery;

Other partners involved in delivery of funding;

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Funding- amount and sources;
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Timescales for delivery, and possibly key milestones;

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Targets and monitoring where relevant.
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2.3 Setting a Vision, Goals, Objectives and Core Strategies

The vision should be

Inspiring, imaginative and speak to aspirations of stakeholders;

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Achievable and consistent;
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Formulated with broad stakeholder participation

The goals should

Break the vision into defined outcomes;

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Be medium/long term focused;
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Address key levers identified in competitive and macro analysis;

Be a realistic and consistent guide to action;

Build upon the destination’s strengths and take the best of the available growth opportunities;

Eliminate the weaknesses + guarding against the threats in the external environment;

Based on the goals a range of specific objectives can be formulated.

should adhere to the SMART principle (Specific, Measurable, Achievable, Realistic, Timebound)

example of strategies for SWOT in 2.1

example of SWOT of imaginary destination

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