Tourism Destination Development Strategy

The destination strategy process

2. Develop a strategic framework: after assessing everything, we need to set a goal and a plan that goes along with it. We should be able to point out our vision for the destination and from there we can set one by one goals to gradualy achive that vision. More specifically, we will have to sketch out the plan for positioning, branding and product designing for our target market as well as customers.

3. Implementing plans: deploy specific programmes
and projects, budget indicators and monitoring mechanisms to implement the strategic framework. Some program could be mentioned are marketing programme, tourism development programme.

1. Situation assessment: This is the 1st step in the strategy process in which we evaluate current status of the destination and every fators involve with it (market analysis, resource and infrastrucutre evaluation, review industry structure, assess rivalry, customers research...)

4. Performance management and evaluation: Monitoring and evaluation mechanisms to measure and evaluate strategic performance. This is the step that is going to reveal weather the strategy really have an impact on the business or not.

Destination situation analysis

A thorough assessment should be made of the destination’s
competitiveness, by using a SWOT (strength, weaknesses, opportunities and threats) method and consider 5 core factors:

  • the macro evironment
  • destination resources
  • destination markets
  • supporting industries
  • industry structure

Formulating vision, strategic objectives and competitive strategy

1. The macro environment: the outside environment of the industry always change at an escalating rate, thats why we need to assess these changes to forecasr the impact on our business strategy. The changing elements include: Economic Sociodemographic Political Technological Ecological

2. Evaluate destination resources: Maximising the destination’s tourism resources and turning the inherent resources into competitive advantages is critical to the success of the destination strategy. Destination resources include: tangible, intangible, human and financial resources. Through evaluation, we should be able to know: scale of the product, USPs, capacity, quality, potential investment.

3. Assess destination markets: should be focusing on these aspects: market trends, segments, gaps and impacts

4. Assess supporting industry and industry structure: Destination tourism competitiveness depends heavily on the ability of related industries such as public
and private transport, retail, manufacturing suppliers. Element should be assessed include: competitive maturity, price, facilities diversity, facilities quality, technological astutesness

Setting a Vision, Goals, Objectives and Core Strategies: vision for the destination should have features like: inspiring, imaginative and well awared by stakeholders, achievable and consistent, formulated with broad stakeholder participation. To achive the vision, smaller goals must be broken down and be medium/long term focused; Be a realistic and consistent guide to action; build upon the destination’s strengths and take the best of the available growth opportunities.

Competitive strategy

Identify competitors: While it could be argued that all tourism destinations compete for a slice of the global tourism market it is true that competition between certain specific destinations is a lot fiercer, depending on a range of criteria. Using criteria in table 5, the destinations that have highest average point will likely to become top rivals.

Finding Competitor Intelligence: the Internet has made it possible for DMOs to obtain extremely valuable market and competitor research free of charge or at a very limited cost

Benchmarking Against Competitors: benchmarking helps your destination to measure progress and performance over time on the market and compare it directly to your rivals. This way, your destination can effectively mesure whether the tourism strategy is working and how well you have done in achieving
your targets. Some typical way to benchmark is look into datas like volume and value spend of tourists, market share, annual growth.

Watching the Competitive Environment: other than your rivals, there are also other factors that you need to be aware of in a competitive enviroment

  • Threat of Entry
  • Complementors
  • Current Competitors
  • Supplier and Buyer Power

Implementing strategy: the action/investment plan itself needs to address a number of elements including:

  • The scope of the plan – its timescale and remit
  • Strategic direction
  • Specific objectives and targets
  • Action programmes relating to marketing, visitor service, activities, attractions and experiences.