destination performance index: indicators of performance

Destination Performance Index:Destination Performance Index:

Indicators of Performance Indicators of Performance and Success and Success

for Destinationsfor Destinations

Presented by:

J. R. Brent Ritchie Presentation to the WTO Task Force for Destination Management

March 6, 2003 – Berlin

B. Ritchie March 2003 Slide # 2 of 49

CO

MP

ETIT

IVE (

MIC

RO

) EN

VIR

ON

MEN

TG

LO

BA

L (M

AC

RO

) EN

VIR

ON

MEN

T

DESTINATION POLICY, PLANNING & DEVELOPMENT

Philosophy/ Values

Vision Audit

Positioning/Branding

SystemDefinition

DevelopmentMonitoring &Evaluation

Competitive/Collaborative

Analysis

DCSModel-colour(v12).ppt – © RITCHIE & CROUCH, FEB 2003

Awareness/Image

QUALIFYING & AMPLIFYING DETERMINANTS

Location InterdependenciesSafety/Security Cost/Value Carrying Capacity

Hospitality

SUPPORTING FACTORS & RESOURCESInfrastructure Accessibility Facilitating Resources Enterprise Political Will

ComparativeAdvantages

(resourceendowments)

* Human resources

* Physical resources

* Knowledge resources

* Capital resources

* Infrastructure and tourism superstructure

* Historical and cultural resources

* Size of economy

CompetitiveAdvantages

(resourcedeployment)

* Audit & inventory

* Maintenance

* Growth and development

* Efficiency

* Effectiveness

Information/Research

VisitorManagement

Finance&

VentureCapital

Qualityof

Service/Experience

CrisisManagement

Entertainment

CORE RESOURCES & ATTRACTORSPhysiographyand Climate Culture & History Market TiesMix of Activities Special Events Superstructure

DESTINATION MANAGEMENT

Organization Marketing ResourceStewardship

HumanResource

Management



(resource endowments)

The competitive strengths which are primarily due to the resource endowments which have been accorded by nature as well as the historical and economic evolution/ development of the destination



(resource deployment)

The competitive advantages which are primarily due to the skill, efficiency, and effectiveness with which existing resources are being utilized by those responsible for destination policy, strategy,and management


Global (Macro) Environment

Those factors in the global, economic, political, technological, cultural, and social environment over which the destination has little or no control, but which influence the competitiveness and well-being of the destination in a significant way


Competitive (Micro) Environment

Those behaviours of the present or potential visitor market, and collaborating and competing firms, which must be identified and understood, and adapted to, if the destination is to offer the critical mass of experiences that will attract a sufficient number of appropriate visitors so as to make the destination profitable and ensure the well-being of its residents



Awareness/Image





CORE RESOURCES & ATTRACTORSPhysiographyand Climate Culture & History Mix of Activities Special Events Entertainment Market TiesSuperstructure



SUPPORTING FACTORS & RESOURCES

HospitalityInfrastructure Accessibility Facilitating Resources Enterprise Political Will



Philosophy/ Values

Vision AuditPositioning/

BrandingSystem

DefinitionDevelopment

Monitoring &Evaluation


Analysis


B. Ritchie March 2003 Slide # 11 of 49DCSModel-colour(v12).ppt – © RITCHIE & CROUCH, FEB 2003

D E S T I N A T I O N M A N A G E M E N T

ResourceStewardship

MarketingOrganization Information/Research

VisitorManagement

HumanResource

Development

Finance&

VentureCapital

Qualityof

Service/Experienc

e

CrisisManagement


CO

MP

ETIT

IVE (

MIC

RO

) EN

VIR

ON

MEN

TG

LO

BA

L (M

AC

RO

) EN

VIR

ON

MEN

T


Philosophy/ Values

Vision Audit

Positioning/Branding

SystemDefinition

DevelopmentMonitoring &Evaluation


Analysis


Awareness/Image



Hospitality

SUPPORTING FACTORS & RESOURCESInfrastructure Accessibility Facilitating Resources Enterprise Political Will


(resourceendowments)

* Human resources

* Physical resources

* Knowledge resources

* Capital resources

* Infrastructure and tourism superstructure

* Historical and cultural resources

* Size of economy


(resourcedeployment)

* Audit & inventory

* Maintenance

* Growth and development

* Efficiency

* Effectiveness

Information/Research

VisitorManagement

Finance&

VentureCapital

Qualityof

Service/Experience

CrisisManagement

Entertainment

CORE RESOURCES & ATTRACTORSPhysiographyand Climate Culture & History Market TiesMix of Activities Special Events Superstructure

DESTINATION MANAGEMENT

Organization Marketing ResourceStewardship

HumanResource

Management

DPI

Slide # 13 of 49

Background…(where we started)

DPI

Slide # 14 of 49

DPI

Slide # 15 of 49

DPI

Slide # 16 of 49

DPI

Slide # 17 of 49

DPI

Slide # 18 of 49

DPI

Slide # 19 of 49

Destination:Destination: Countries and major urban areas Countries and major urban areas

Performance:Performance: A destination’s overall A destination’s overall performance vis-à-vis other destinations, on four performance vis-à-vis other destinations, on four critical measures: critical measures:

• Economic PerformanceEconomic Performance• SustainabilitySustainability• Visitor Satisfaction Visitor Satisfaction • Management ActionManagement Action

Index: Index: A statistical compilation of key indicators, A statistical compilation of key indicators, which represent over 160 quantitative and which represent over 160 quantitative and qualitative criteriaqualitative criteria

About the DPIAbout the DPI

DPI

Slide # 20 of 49

Objective: Objective: To allow Destination ManagersTo allow Destination Managers(of countries and major urban destinations)(of countries and major urban destinations)to benchmark their ability to:to benchmark their ability to:• effectively develop and manage tourismeffectively develop and manage tourism• provide satisfactory visitor experiencesprovide satisfactory visitor experiences• conduct tourism in an economically, culturally, conduct tourism in an economically, culturally,

environmentally, and politically sustainable mannerenvironmentally, and politically sustainable manner

Mission: Mission: To provide DPI users with information to To provide DPI users with information to assist in formulating policy and making strategic assist in formulating policy and making strategic decisionsdecisions


DPI

Slide # 21 of 49

Based on the Ritchie & Crouch Based on the Ritchie & Crouch Competitiveness/Sustainability ModelCompetitiveness/Sustainability Model

Derived from:Derived from:• theoretical considerationstheoretical considerations• the research literaturethe research literature• input from senior industry input from senior industry

managersmanagers


DPI

Slide # 22 of 49

The DPI ModelThe DPI Model

DPI

EP VS S MA

Index

Core Components

Performance Indicators

DPI

Slide # 23 of 49

DIAGNOSTIC TOOL: DIAGNOSTIC TOOL: Through performance benchmarking, provides a Through performance benchmarking, provides a consistent and reliable way to compare a consistent and reliable way to compare a destination’s tourism performance relative to other destination’s tourism performance relative to other destinations in a comprehensive manner.destinations in a comprehensive manner.

INCREASED VISIBILITY: INCREASED VISIBILITY: The DPI will reinforce the importance of tourism to The DPI will reinforce the importance of tourism to governments, business and the general public governments, business and the general public through media exposure.through media exposure.

Why is the Destination Why is the Destination Performance Index important?Performance Index important?

DPI

Slide # 24 of 49

IMPROVED KNOWLEDGE:IMPROVED KNOWLEDGE:

Index construction process will raise critical issues Index construction process will raise critical issues central to destination management knowledge and central to destination management knowledge and allow better understanding of the key drivers of allow better understanding of the key drivers of management action.management action.

ENHANCED SUSTAINABILITY: ENHANCED SUSTAINABILITY:

Sustainability indicators, crucial to the Index, will help Sustainability indicators, crucial to the Index, will help managers and policymakers focus on key issues which managers and policymakers focus on key issues which enhance long-term destination sustainability and enhance long-term destination sustainability and performance.performance.

Why is the Destination Why is the Destination Performance Index important?Performance Index important?

DPI

Slide # 25 of 49

Government:Government: The DPI provides essential information for government leaders to benchmark tourism The DPI provides essential information for government leaders to benchmark tourism policiespolicies

Tourism Industry:Tourism Industry: The DPI guides investment and marketing plans and strategies The DPI guides investment and marketing plans and strategies

Visitors: Visitors: The DPI offers sophisticated visitors a tool to analyze potential destinationsThe DPI offers sophisticated visitors a tool to analyze potential destinations

General Public: General Public: The DPI raises awareness of tourism’s importance among the general publicThe DPI raises awareness of tourism’s importance among the general public

Media: Media: The DPI allows the media to report on tourism destination developments, raising the The DPI allows the media to report on tourism destination developments, raising the visibility of the entire field visibility of the entire field

Academia:Academia:The DPI collects a significant wealth of data that can be used for further researchThe DPI collects a significant wealth of data that can be used for further research

Who will use the Who will use the Destination Performance Destination Performance

Index?Index?

DPI

Slide # 26 of 49

““Something that helps you to understand where you Something that helps you to understand where you are, which way you are going and how far you are are, which way you are going and how far you are from where you want to be” (Hart 1997)from where you want to be” (Hart 1997)

““The aim of indicators is to produce what is The aim of indicators is to produce what is measurable and show us something” (DCMS 1999)measurable and show us something” (DCMS 1999)

““An indicator’s… purpose is to show you how well a An indicator’s… purpose is to show you how well a system is working. If there is a problem, an indicator system is working. If there is a problem, an indicator can help you determine what direction to take to can help you determine what direction to take to address the issue.” (www.sustainablemeasures.com)address the issue.” (www.sustainablemeasures.com)

What are Indicators?What are Indicators?

DPI

Slide # 27 of 49

RelevantRelevant• Measuring what is intended to be measuredMeasuring what is intended to be measured

• Enables comparisonEnables comparison

UnderstandableUnderstandable

• Useful to users and observersUseful to users and observers ReliableReliable

• Ability to trust indicator valueAbility to trust indicator value

• TemporalityTemporality

Based on Accessible DataBased on Accessible Data• TimelyTimely

• AvailableAvailable

• Cost effectiveCost effective

Characteristics of Effective Characteristics of Effective IndicatorsIndicators

DPI

Slide # 28 of 49

Contribute to one of the four core Contribute to one of the four core componentscomponents

Based on one of 35 components in the Based on one of 35 components in the Ritchie and Crouch Competitiveness / Ritchie and Crouch Competitiveness / Sustainability ModelSustainability Model

Both Quantitative and QualitativeBoth Quantitative and Qualitative

Sourced from Expert Opinion, Visitor Surveys, Sourced from Expert Opinion, Visitor Surveys, Resident Surveys, Secondary DataResident Surveys, Secondary Data

DPI IndicatorsDPI Indicators

DPI

Slide # 29 of 49

Index Core Component:Index Core Component: Economic Economic PerformancePerformance

Performance Indicators:Performance Indicators:• 24 out of 163 total index criteria24 out of 163 total index criteria• 20 quantitative and 4 qualitative criteria20 quantitative and 4 qualitative criteria

Indicator Examples:Indicator Examples:• Total visitor expenditures Total visitor expenditures (secondary data)(secondary data)

• Ratio of travel/tourism employee compensation to overall Ratio of travel/tourism employee compensation to overall employee compensation employee compensation (secondary data)(secondary data)

• Ease of starting a tourism-related business Ease of starting a tourism-related business (expert opinion)(expert opinion)

• Travel and tourism GDP/overall GDP Travel and tourism GDP/overall GDP (secondary data)(secondary data)

The DCI ModelThe DCI Model

DPI

Slide # 30 of 49

Index Core Component:Index Core Component: Sustainability Sustainability Performance Indicators:Performance Indicators:

• 60 out of 163 total index indicators60 out of 163 total index indicators• 7 quantitative and 53 qualitative indicators7 quantitative and 53 qualitative indicators

Indicator Examples:Indicator Examples:• Preservation of natural capitalPreservation of natural capital• Maintenance of ecological integrityMaintenance of ecological integrity• Resident access to tourism infrastructure Resident access to tourism infrastructure (resident survey)(resident survey)

• Level of political support in facilitating tourism effortsLevel of political support in facilitating tourism efforts(expert opinion)(expert opinion)

• Taxes generated from tourism expenditures Taxes generated from tourism expenditures (secondary data)(secondary data)

• Visitor perception of destination having reached its tourism Visitor perception of destination having reached its tourism carrying capacity carrying capacity (visitor survey)(visitor survey)


DPI

Slide # 31 of 49

Index Core Component:Index Core Component: Visitor Satisfaction Visitor Satisfaction Performance Indicators:Performance Indicators:

• 32 out of 163 total index indicators32 out of 163 total index indicators• 2 quantitative and 30 qualitative indicators2 quantitative and 30 qualitative indicators

Indicator Examples:Indicator Examples:• Perceived richness of destination culture and historyPerceived richness of destination culture and history

(visitor survey)(visitor survey)

• Satisfaction with overall destination quality of serviceSatisfaction with overall destination quality of service(visitor survey)(visitor survey)

• Level of repeat visitation Level of repeat visitation (secondary data)(secondary data)

• Perception of resident hospitality Perception of resident hospitality (visitor survey)(visitor survey)

• Memorability of the destination experienceMemorability of the destination experience


Index Core Component:Index Core Component: Management Action Management Action Performance Indicators:Performance Indicators:

• 47 out of 163 total index criteria47 out of 163 total index criteria• 10 quantitative and 37 qualitative criteria10 quantitative and 37 qualitative criteria

Indicator Examples:Indicator Examples:• Satisfaction with destination management (DM) action to Satisfaction with destination management (DM) action to

competitive pressures competitive pressures (expert opinion)(expert opinion)

• Average visitor length of stay Average visitor length of stay (secondary data)(secondary data)

• Level of involvement with human resource development Level of involvement with human resource development programming and support programming and support (expert opinion)(expert opinion)

• Satisfaction with destination materials in helping with trip planning Satisfaction with destination materials in helping with trip planning (visitor survey)(visitor survey)

• Quality of core attractors Quality of core attractors (visitor surveys, objective measures)(visitor surveys, objective measures)

• Quality of supporting factors Quality of supporting factors (visitor surveys, objective measures)(visitor surveys, objective measures)

• Quality of destination management Quality of destination management (expert opinion)(expert opinion)


DPI

DPI

Slide # 33 of 49

Overall DPI Ranking:Overall DPI Ranking: Weighted and un-weighted results Weighted and un-weighted results

DPI Indicator Ranking:DPI Indicator Ranking: Four key measures of performance Four key measures of performance

Destination Progress Index (DPI) Ranking:Destination Progress Index (DPI) Ranking: Key criteria which Key criteria which

measure progress are included in this sub-indexmeasure progress are included in this sub-index

Year-to-year (YTY) Country/Urban Centre AnalysesYear-to-year (YTY) Country/Urban Centre Analyses

Destination Strength and Weakness ChartsDestination Strength and Weakness Charts

* * While the DPI Report provides numerous dimensions of While the DPI Report provides numerous dimensions of competitiveness and progress, users of this study will be competitiveness and progress, users of this study will be strongly advised to examine the individual criteria which strongly advised to examine the individual criteria which are of most relevance to their particular destination.are of most relevance to their particular destination.

The DPI ReportThe DPI Report

DPI

Slide # 34 of 49

The Destination Performance The Destination Performance Index:Index:

Your Partnership is CrucialYour Partnership is Crucial Focus Group NeedsFocus Group Needs

• Indicator Screening and WeightingIndicator Screening and Weighting

Survey NeedsSurvey Needs

• Language TranslationLanguage Translation

• Identifying Survey RecipientsIdentifying Survey Recipients NTO ExecutivesNTO Executives Tourism Industry LeadersTourism Industry Leaders VisitorsVisitors ResidentsResidents

• Survey AdministrationSurvey Administration Mailing and collecting surveysMailing and collecting surveys Submitting results to University of Calgary for analysisSubmitting results to University of Calgary for analysis

Based on Accessible DataBased on Accessible Data

• TimelyTimely

• AvailableAvailable

• Cost effectiveCost effective

DPI

Slide # 35 of 49

Index ResearchIndex Research

Indicator Selection and ScreeningIndicator Selection and Screening

Survey Design and Data CollectionSurvey Design and Data Collection

Data Analysis and Report GenerationData Analysis and Report Generation

Tasks in Developing the DPITasks in Developing the DPI

DPI

Slide # 36 of 49


Index Research: Index Research: Included index formulation, Included index formulation,

theory and best practicestheory and best practices

IndexCore

ComponentsSurvey

DataHard Data Weighted

WEF Growth Competitiveness Index 3 140 34 Yes

IMD World Competitiveness Index 4 115 128 No

Environmental Sustainability Index 5 8 60 No

UNDP Human Development Index 3 0 4 No

Genuine Progress Index 3 0 24 Yes

Destination Performance Index 4 130 33 Yes and No

DPI

Slide # 37 of 49


Criteria Selection and Screening: Criteria Selection and Screening:

• Selected based on data accessibility, reliability and relevance.Selected based on data accessibility, reliability and relevance.

• Derived from theoretical considerations, the research Derived from theoretical considerations, the research

literature, and input from senior industry managers.literature, and input from senior industry managers.

• An expert panel will review criteria as a final screen and will An expert panel will review criteria as a final screen and will

assign weightings based on index importance. These expert assign weightings based on index importance. These expert

opinions will be used in calculating the Weighted DPI Index.opinions will be used in calculating the Weighted DPI Index.

DPI

Slide # 38 of 49


Survey Design and Data Collection: Survey Design and Data Collection:

• Surveys will be designed for three specific populations: Surveys will be designed for three specific populations:

in-destination experts, visitors, and residents.in-destination experts, visitors, and residents.

• With the assistance of partnering organizations, appropriate With the assistance of partnering organizations, appropriate

survey recipients will be identified. Surveys will be survey recipients will be identified. Surveys will be

translated, pre-tested, distributed, completed and collected. translated, pre-tested, distributed, completed and collected.

• Relevant secondary data will be also gathered.Relevant secondary data will be also gathered.

DPI

Slide # 39 of 49


Data Analysis and Report Generation:Data Analysis and Report Generation: • Data will be standardized and calculated utilizing statistical Data will be standardized and calculated utilizing statistical

approaches common within index construction. approaches common within index construction.

• DPI reports, which include multiple measures of destination DPI reports, which include multiple measures of destination

performance and progress along with individual criterion performance and progress along with individual criterion

scores for user analysis and decision making, will be scores for user analysis and decision making, will be

assembled and distributed.assembled and distributed.

The Destination The Destination Performance IndexPerformance Index

DPI

EP VS S MA

The Destination The Destination Performance Index:Performance Index:

Supplementary Supplementary InformationInformation

DPI

EP VS S MA

DPI

Slide # 42 of 49

Performance Indicators: Performance Indicators: WeightingWeighting

To estimate the relative importance of To estimate the relative importance of each factor of competitiveness in the each factor of competitiveness in the modelmodel

To examine how factor importance To examine how factor importance might vary as a function of the context might vary as a function of the context (such as target markets, form of (such as target markets, form of tourism, etc.)tourism, etc.)

DPI

Slide # 43 of 49


Survey managers of Destination Survey managers of Destination Management OrganizationsManagement Organizations

Gather their opinions regarding the Gather their opinions regarding the relative importance of relative importance of competitiveness factors based on their competitiveness factors based on their experience with their own and experience with their own and competing destinationscompeting destinations

DPI

Slide # 44 of 49


Using the Analytic Hierarchy Process Using the Analytic Hierarchy Process – a theoretically sound decision – a theoretically sound decision analysis techniqueanalysis technique

Employs Employs Expert ChoiceExpert Choice software software

Hierarchically evaluates the Hierarchically evaluates the importance of decision criteriaimportance of decision criteria

DPI

Slide # 45 of 49


Participants run Participants run Expert ChoiceExpert Choice using using data comprising the model of data comprising the model of destination competitivenessdestination competitiveness

Guides participants through the process Guides participants through the process of evaluating the hierarchy of criteria of evaluating the hierarchy of criteria using pair-wise comparisonsusing pair-wise comparisons

Software, model data, and results are Software, model data, and results are distributed and returned electronicallydistributed and returned electronically

Pooled results are analysed to derive Pooled results are analysed to derive importance measuresimportance measures

DPI

Slide # 46 of 49

DPI

Slide # 47 of 49

StakeholderStakeholderCity/Local GovernmentCity/Local Government Hospitality IndustryHospitality Industry

Hotels/Hotel AssociationHotels/Hotel Association MediaMedia

Regional/County GovernmentRegional/County Government Public FacilitiesPublic Facilities

Attractions/Attraction AssociationAttractions/Attraction Association Regional CVBsRegional CVBs

State/Provincial Tourism DepartmentState/Provincial Tourism Department Visitors/TouristsVisitors/Tourists

MembersMembers Advertising AgencyAdvertising Agency

Board of DirectorsBoard of Directors Arts/Arts AssociationArts/Arts Association

Convention Centre/Banquet FacilitiesConvention Centre/Banquet Facilities Destination Management Destination Management CompanyCompany

Community/Citizens/ResidentsCommunity/Citizens/Residents Meeting PlannersMeeting Planners

Restaurants/Restaurant AssociationRestaurants/Restaurant Association Non-Tourism IndustryNon-Tourism Industry

Chamber of CommerceChamber of Commerce Other Policy Makers in AreaOther Policy Makers in Area

University/CollegeUniversity/College RecreationalRecreational

SponsorsSponsors Retail Stores/AssociationRetail Stores/Association

Local Economic Development AuthorityLocal Economic Development Authority VolunteersVolunteers

AirlinesAirlines OtherOther

Federal GovernmentFederal Government Source: Sheehan & Ritchie (2001)

Questions?!Questions?!

destination performance index: indicators of performance

Documents

capital resources

human resources

cultural resources

knowledge resources

physical resources

existing resources

destination profitable

resources enterprise