ETC-UNWTO Joint International Seminar on

Tourism Product Development12-13 May 2011 - Dublin, Ireland

FUNDAMENTALS & PRINCIPLES OF TOURISM PRODUCT DEVELOPMENTPeter Mac Nulty - Tourism Development International (TDI)

ETC-UNWTO Handbook on Tourism Product Development

Consultants: Peter Mac Nulty & Robert Cleverdon Tourism Development International (TDI)

Focus of Handbook Research & Analysis

The Product Offer is the Core of a Destination, Tourism Product Development (TPD) and Marketing are Inter-related and Inter-dependent, Heavier Focus on Destination Marketing than on TPD, Aim of TPD Handbook to correct this Imbalance, Examination of Different Practices Survey of 52 NTAs/NTOs, Personal Interviews with Destinations & Operators, over 100 Case Studies, Literature Review.

Contents

Defining Tourism Product Development

Fundamentals and Principles

Case Studies

Tourism Product Development (TPD)

TPD part of an extensive and interlinked process macro (overall destination), micro (individual TPDs), Market research, product development and marketing represent an ongoing continuum, necessary to realise a destinations full potential.

Definitions, Influences and Determinants

Defining Tourism Product DevelopmentProcess:Assets of a destination are moulded to meet the needs of customers.

Tourism product includes:Natural or man made attractions, hotels, resorts, restaurants, theatres, activities, festivals and events.

Defining Tourism Product Development cont.FOCUS OF HANDBOOK ON PORTFOLIO OF THINGS FOR VISITORS TO SEE AND DO. Active pursuits such as sports, water-based activities, hiking/ walking/cycling etc., Pastimes related to natural and cultural heritage, organised entertainments, health and wellness; and Recurring festivals and events.

Destination Tourism Development FrameworkWhere are we and how well do we compare? Destination competitiveness Competitor performanceDemand/customer patterns and segments Resources Supportive industries Industry structure & rivalry

Where would we like to be?

How do we get there?

Stay ahead?

Vision, goals, objectives and core strategies

Target market strategy Positioning and branding strategy

Development Programmes Spatial tourism Development plan Projects Attractions HR/awareness Infrastructure SMME /entrepreneurship Safety

Institutional Management and Monitoring

Integrated Implementation Framework

Key success factors & capabilities

Marketing programmesProduct Promotion Target Market Price Place

Macro environment:Technological Economic Political Socio-cultural Natural

Requirements of a Tourism DestinationProviding Infrastructure for Tourism A successful Tourist Destination requires infrastructure Accessibility Transport System: Route, Terminals, Vehicles Natural, man-made, artificial, purpose built, heritage Things to do: outdoors/ indoors, land/ water/ air-based Accommodation and catering facilities, retail and other tourist services Banks, Telecommunications, Post, etc.

Attractions

Activities

Amenities

Ancillary Services

The Tourism Destination and its CharacteristicsComprises many products within the overall destination, Involves many stakeholders with differing objectives and requirements, Is both a physical entity and a socio-cultural one, Is a mental concept for potential tourists, Is subject to the influence of current events, natural disasters, terrorism, health scares etc., Is subject to historical, real and fictitious events,

The Tourism Destination and its Characteristics cont.

Is evaluated subjectively in terms of what represents value-for-money,Reality compared with expectations,

Differs in size, physical attractions, infrastructure, benefits offered to visitors, and Degree of dependence on tourism, No two destinations can be treated the same, each offering its own unique and authentic attributes.

Tourism Value Chain

Illustrates a number of unusual characteristics compared with other industries, Tourism is a complex industry to plan and manage.

Tourism Value Chain

Tourism Value Chain - Parties directly involved

Tourism Value Chain - Parties indirectly involved

Variables influencing Tourism Product DevelopmentEconomic Technological Political Demographic Globalisation vs. Localisation Socio-Environmental Awareness Living and Working Environments Search for Authentic Experiences Marketing Safety of Travel

Determinants of Strategic Approach to Tourism Sector

Resources & Attributes, Market Opportunities for the Products it can Develop, Taking Account of Competitors and Market Tastes, Strength of Destinations Factors of Production, Priority and Level of Support the Government Allocates to Tourism, Competitors Actions & Outside Events.

Fundamentals and Principles of Tourism Product Development Planning

3 Fundamental Issues needed before effective TPD can take placeTourism Organisation and Institutional Structures Inter-Agency Co-ordination Comprehensive, Integrated and Inclusive Planning

Role of Government in TPDEstablish Conditions for Economic Growth, by Facilitating & Supporting Sectors with Competitive Advantage, Create Appropriate Institutions, System of Inter-agency Coordination, and Planning & Management Processes, Intervention Range:Enabling Transport, Training, Provide Incentives, Create Positive Image.

Wide Variation Depending on Priority Attached to Tourism, Destination Marketing Primary Activity, TPD Minimal Activity.

Importance of Macro Level Strategy & Planning

Destination Planning for the Tourism Sector is Vital, Tourism Planning Requires a Different Approach from Other Sectors, Planning Needs to be Fully Comprehensive & Coordinated, Tourism Planning is a Long Term Process Revolving & Iterative.

NTAs/NTOs with Dedicated Product Development FunctionTotal North/ West Europe Yes, have Dedicated Product Development Function No, Product Development linked to other Functions No reply 47% 46% South/ Central Europe 42% Regions Africa Americas Asia/ the Pacific/ Middle East 29% Tourism Lifecycle New/ Emerging Growing Established

50%

67%

60%

46%

44%

51%

55%

58%

50%

33%

57%

40%

50%

56%

2%

-

-

-

-

14%

-

5%

-

Ways in which TPD is Co-ordinated

Co-ordination between Ministry of Tourism and other ministries Co-ordination between NTA/NTO and regions/RTOs/local government Creation of enabling tourism policy/legal framework Financial Incentives/Grants to influence TPD National Strategic Tourism Development Plan/Roadmap for TPD Monitoring and evaluation of TPD NTA/NTO provide support through coordination bodies NTA/NTO/RTO guidelines on environmental planning TPD co-ordinated by RTOs/Regions Market Research/Liaison with foreign markets/travel trade Training Programmes Product Development Seminars/Workshops

44% 33% 14% 12% 12% 10% 8% 8% 8% 8% 6% 6%

The Australia ModelDepartment of Resources, Energy +Tourism (DRET) Tourism Ministers Council (TMC) Standing Committee on Tourism Tourism Working Groups Destination Management Planning Digital Distribution Indigenous Tourism Industry Resilience Investment and Regulatory Reform Labour and Skills Research and Development Advisory Board Tourism Access Tourism Quality Council Australia

Principles & Procedures for TPDMarket Research Market: Product Matching Stakeholder Consultation & Collaboration Tourism/Product Development Areas Flagships/Hubs Clusters/Circuits/Events Product Portfolio & Investment Plan Human Resource Development Marketing & Promotion

Case Studies

Case Studies Innovative Planning Approaches

Nordic Innovation Centre, Oslo/ Norway

Case Studies Innovative Planning Approaches

Bank of Tourism Potentials, Slovenia

Case Studies Innovative Planning Approaches

Tourism Research Innovation Project, Canada

Case Study Application of Market ResearchMalaysia Rural Tourism Master Plan

Case Study Product Market MatchingCircuit Development Transylvania, RomaniaBlack Church Brasov

Sibiu

Fortified Church of Biertan

Case Study Community Consultations

Greenville Product Development Concept Plan, USA

Case Study Stakeholder Collaboration

The Anjou Region, France

Case Study Tourism Product Development AreasThe South Carolina Tourism Action Plan, USA

Case Study Tourism Product Development Areas cont.

Case Study Flagship Attraction

The Archabbey of Pannonhalma, Hungary

Case Study Urban RegenerationThe Guggenheim Museum, Bilbao, Spain

Case Study Cluster Development

Lake Vrtsjrv Foundation, Estonia

Case Studies Routes and TrailsThe Route of Santiago De Compostela, Spain

Case Studies Routes and TrailsPalace on Wheels project , India

Case Studies Routes and Trails

Mekong Discovery Trail, Cambodia

Case Study Festivals and Events

The St Patricks Festival in Ireland

3 Fundamental Issues needed before effective TPD can take placeTourism Organisation and Institutional Structures Inter-Agency Co-ordination Comprehensive, Integrated and Inclusive Planning

Thank you for your attention !Peter Mac Nulty- Managing Director, Tourism Development International peter@tourismdev.com Dublin, 12-13 May 2011