Title page

TABLE OF CONTENTS

1 INTRODUCTION....................................................................................3

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2. STRATEGIC PLANNING.........................................................................4

2.1 Definition and goals of strategic planning:.........................................4

2.2 Tourism Planning Process.................................................................5

2.3 Barriers to Tourism planning development.........................................5

2.4 Strategic Tourism Planning Process...................................................6

2.5 Sustainable Tourism.........................................................................9

2.6 Importance of sustainable tourism...................................................10

2.7 Importance of Sustainable Tourism in Spain and the Bahamas..........11

3. COMPARISON BETWEEN STRATEGIC PLANNING IN THE BAHAMAS AND SPAIN:.................................................................................................12

3.1 Tourism Planning in Spain:..............................................................12

3.2 Tourism Planning in the Bahamas:...................................................14

4. CONCLUSION AND RECOMMENDATIONS:............................................16

REFERENCES........................................................................................17

1. Introduction

Tourism has always been a great pleasure to people all around the world. According

to Mathieson and Wall (1982), tourism is a temporary movement of people out of

their regular destinations. It also covers their actions while staying at the

destination. Also the facilities which are installed to assist them also fall under the

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category of tourism. Tourism is the relationship that is created between tourists,

hosts, the suppliers and the government due to the actions relating to attracting the

tourist (Macintosh and Goeldner, 1986). In the words of World Tourism Organization

(UNWTO, 1995) Tourism means

“travelling to destinations beside one’s regular destinations for twenty-four hours

but not to one year for the purpose of business, travel and other intentions”.

Tourism has a huge potential too. Tourism adds up almost 11% of the world GDP

(WTTC, 2011). It has the capability to enhance economic, social and political

growth. In many countries, the growth in infrastructure has been possible due to the

advancement of tourism. United Nation’s World Tourism Organization (UNWTO) has

affirmed that in 2009 alone, almost $852 Billion has been earned as revenue

through tourism all around the world. The industry employs 1 in every 15 persons

either directly or indirectly (UNWTO, 2010).

Such a crucial industry for the world economy must be well maintained. The

sustainability and growth of tourism depends on the strategic planning and policies.

But in most of the cases, no effective policies are created or implemented for the

maintenance of the industry. Even if there exists policies in different regions, they

are often not sustainable and differ from each other. To ensure the perfect growth

and sustainability of environment, United Nation’s World Tourism Organization is

working (UNWTO, 1995). For the comparison, two countries like Spain and The

Bahamas has been chosen. The report tries to provide an insight about strategic

planning and the overall strategic planning process and its impact on the society. It

also provides an overview of sustainable tourism approaches, its benefits and the

comparison between the effects of strategic tourism planning between the two

selected countries, Spain and the Bahamas.

2. Strategic Planning

2.1 Definition and goals of strategic planning

Many authors have defined planning process in different perceptions. However, they

all point to one single intention, the achievement of a set of goals. According to Dror

(1973), planning is determining a set of decision and action process for future which

will assist in achievement of a set of goals. According to Hall (2000), Planning

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means making policies and decisions regarding all the aspects of the organization’s

future operations and activities. Integrating all the operations makes the planning

more realistic and appropriate than making decisions individually.

However, prioritizing the different issues of the business and organization is equally

important (Campbell et.al, 2002). This is where Strategic planning comes forward.

Veal (2002) argued that strategic planning is the initial and most important aspect

for an organization to achieve its short term and long term goals. According to him,

strategic planning is the strategy to ensure that more emphasis is given to acquire

long term and medium term goals of the organization over shorter term goals.

Like any other industry, tourism industry also needs strategic planning and

determination of long-term, medium-term and short-term goals to ensure the

growth and prosperity of the industry worldwide. The importance is increased due

to the benefits reaped by different countries around the world. And due to its

importance in employment, GDP growth, revenue and foreign currency generation,

the continuous success of the industry is intensified. Without perfect planning such

a potential industry might go astray. According to Murphy (1991), the main

objective of strategic tourism planning is to make changes in the policies and

strategies of tourism through which social, cultural, environmental and economic

welfares towards the society becomes easy. The objectives are only achieved by

maintaining the balance among the operations and plans.

At this matter, Cooper et al (2008) stated that in order to ensure the positive growth

of the tourism development planning, all the parties of a certain society such as

public, private and local communities must work together.

2.2 Tourism Planning Process

The tourism planning process ensures growth and sustainability of tourism

development in a country. Successful planning and perfect coordination among the

communities and both public and private sectors of a country ensures the

sustainability of development of tourism in a country or region. The tourism

development and planning process, the barriers and purposes of the planning

process are explained below.

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2.3 Barriers to Tourism planning development

Although tourism planning is a must for the development and advancement of

tourism, often many tourism authorities do not plan well enough. There a few

barriers which hinder the development of tourism. These barriers pose threat to the

overall tourism industry in a specific region. Successful planning helps to eradicate

these barriers to development. The main barriers which prevent the development of

tourism are provided below:

Controversies regarding the principles of tourism

High cost of implementation

Complexities of ownership in tourism industries

Bureaucracy regarding the government initiatives

Uncertainty regarding the size and large amount of parties involved

Seasonality in the business

High turnover of ownership

These barriers are explained in the next page.

In most of the countries, there lay controversies regarding the principles of tourism.

Since the principles of tourism are abstract in manner, there are many schools of

experts who have pointed out different principles. Some of them often contradict

with each other. Since there is no single and uniformed set of principles and

approaches, the contradictions often hinder proper development.

The proper planning of tourism needs good infrastructural support in the country.

And it is often expensive. The high cost of implementation often delays the

development and planning process.

There is often high turnover of ownership in this sector. Also there lay complexities

regarding the ownership of the organizations working in the industry. As the

complexities increase, the development process gets hampered. The more times

the ownership turns over, the actions of the individual organizations changes. So

the previous planning is often inactive and unsuccessful. The time lags hamper the

overall development.

Cooper et al (2008) have opined that proper development of tourism can only be

achieved when all the related parties in the society co-ordinate and co-operate.

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These parties involve public sector, private sector and both the local and

international community. The co-ordination of all these parties is not easy. And they

often come at a price of bureaucracy. The initiatives of the government are a must

for this industry. The involvement of government eases the functioning of the plan.

But at the same time, bureaucracy increases. Thus it hinders development.

There are often a large number of parties involved in the planning and

implementation process. Also an important consideration is the seasonality of the

industry. The uncertainty of the actual size of the parties and industry obstructs

development. The uncertainty of the seasonality and limit of future assumptions

limit the success of the plan causing a probable shift in the actual planning which

increases loss of time, money and labor.

2.4 Strategic Tourism Planning Process

The strategic tourism planning has a few basic processes. These processes are

followed through 7 stages (Cooper, 2005). The steps of tourism planning are:

Analysis of background

Analysis and research

Synthesis and visioning

Objective determination and strategy determination

Development of plan

Implementation and monitoring of the plan

Reviewing the plan and changing unsuccessful strategies

The first step includes background analysis. This step includes identifying the need

for a plan and policies. The need of a plan might emerge from the changing need of

customers, government, the organization or the community as a whole. The

changing circumstances might demand to create or change a new or existing plan.

Also, crisis and emergencies might also require the authorities to formulate and

implement a plan or policy (Hall and McArthur, 1998; Hall, 2000).

The second step calls for a detailed research and analyses on the basis of the need.

Every plan needs data for success analysis. At this step of the cycle, data has to be

collected through primary or secondary data collection tools. The data analysis has

four major parts; Resource analysis, Market analysis, Activity analysis and

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Competitor analysis. At first, the authority must determine the existing and

probable availability of resources. These resources will be used to formulate the

plan. So correct assumptions of the availability is a must for the success of the plan.

Next the market analysis helps to determine the existing tourism market, behavior

and attitude of the tourists, their need and satisfactions etc. The analysis also helps

to get a clear idea of the future demand by the potential customers and helps to

fulfill them. Thirdly, the activity analysis helps to determine the present activities of

the parties among the industry. Also it is possible to determine the activities

necessary to formulate and the lacking of activities which are essential for customer

satisfaction. And lastly, competitor analysis creates an idea of the competitors

among and outside the industry and gives a competitive edge to the user of the

data.

The third step is called synthesis and visioning. These steps include two basic

elements namely, position statement and vision statement. The position statements

describe the present situation of the industry, the development process,

organizations working in the industry, competitors, customer awareness etc. This

builds the base of the development by providing realistic data on the present and

existing situation of the industry. The vision statements reflect the expectation of

the parties. They describe the expected situation of the overall industry and each of

its associates within a predetermined period of time.

Next step is called objective determination and strategy determination. At this step,

the planning objectives, goals and strategies are considered and identified. Without

specific and predetermined objective or goals, no plan can succeed. According to

Knowles et al. (2001), the goals must be simple to understand and achievable. No

unrealistic and impossible goals should be identified. If all the goals are understood

and valued equally by the government, organizations and other related parties only

then can the plan be successful (Murphy 1991, Cooper 2005). After determining the

goals, the next part is to decide probable alternatives on how to attain those goals.

Alternative strategies must be identified with the adversities in mind. This will help

to alter any decision on the occurrence of an undesirable event.

On the basis of the determined goals, objectives and decided possible strategies to

acquire the goals, plan and policy are developed. The plans and policies are usually

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selected from a set of alternatives. The plans which seem to be most potential to

acquire the objectives are usually selected. But furthermore, the costs and benefits

associated with the plans are considered. If a plan is both potential in achieving the

target, provides most benefit and needs the lowest possible cost and labor to

implement, the plan(s) is selected (Cooper , 2005).

Following the development of plan, the implementation stage comes. In this stage,

the plans selected are implemented. The resources are put into actions and

constant follow-ups are done to identify any problems in implementation. By the

time the implementation stage is reached, all the legal and regulatory frameworks

start working in the process. During this phase, many confusions and imbalances

are met. These are addressed according to the resources available and possible

business environmental situations (Cooper, 2005).

The final stage or phase of the process is supervision and re-evaluation. In the first

five phases of the development process, the ideas and plans had been theoretical.

In the implementation stage, the theory meets reality. So in the implementation

stage, there lie many deviations from the actual plan. The supervision and re-

evaluation stage works to reduce these deviations. Often the plans deviate due to

lack of addressing important aspects of the plan. These problems can be easily

found out in the implementation stage and changed accordingly in the following

stage. Also, the plans might deviate due to undesirable events such as breakout of

epidemics, instable political condition of the country, terrorist attacks or even at the

simplest situation, bad weather condition. If the plans are not changed according to

the changed condition, it is bound to fail. In the implementation phase, the actual

impacts and usefulness of the plan are measured and evaluated. If there needs to

be any changes, they are done at this stage (Cooper, 2005).

Planning leads the tourism to success. But often even with great plans industries fail

and suffer. The main reason is the lack of implementation of plan and lack of

realistic views in the plan. According to World Tourism Organization (1980), a

survey of more than 1600 tourism plans showed that in almost 33% of the cases

potential plans were considered but not implemented (Wilkinson, 1997). And in the

words of Pearce (1989), “Tourism planning can lead the industry and society to a

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greater success but only if their implementations are observed properly.” So,

adequate flexibility should be ensured in the plan to allow any emergency

modifications (Cooper, 2005).

2.5 Sustainable Tourism:

According to UNWTO (2005), Sustainable tourism is the tourism which considers and

realizes the impacts of tourism and activities on the economic, social, cultural and

environmental values and also fulfills the needs of all the parties involved.

According to UNESCO (2011), Sustainable tourism refers to tourism that values and

takes into account all the parties involved, the sustainability of the nature and the

host country’s cultural heritage as well. The first formal definition of sustainable

tourism was provided in Brundtland Report (World Commission on Environment and

Development, 1987), and later was intensified in United Nations Conference on The

Environment and Development (CNUMAD) in Rio de Janeiro conference in 1992

(Torres-Delgado, 2010).

Bell and Morse (2003) have opined that tourism sustainability in a specific region

can be achieved through following a few steps. At first, the historical tend data

should be analyzed; second, the data should be compared to the recent data.

Thirdly, some references on the basis of the principles should be suggested. And

lastly, attention must be given to the possible best and worst case scenario and

sensitivity analysis.

Although many experts believe that a theoretical framework for evaluation of the

sustainability must be created (Castellani & Sala, 2010;Crabtree & Bayfield, 1998;

European Commission, 2003; Gahin, Veleva, & Hart, 2003; Smeets &Weterings,

1999), it is definite that the sustainability approach largely depends on the user’s

positive attitude (Hunter, 1997; Naredo, 2004).

According to UNWTO (2005), sustainable tourism approach helps to sustain and

distribute the benefits to all the stakeholders. To ensure sustainability, sustainable

tourism approach should therefor:

Make appropriate use of the natural resources.

Consider the culture and heritage of the host country.

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Establish and maintain an approach to distribute the benefit and

employment opportunities to the dwellers of the host region.

2.6 Importance of sustainable tourism:

The sustainable tourism is important for every party involved in the overall tourism

process. Its importance has been addressed by World travel and tourism council.

Economic Benefits:

Tourism is a prime source of earning for many countries. Almost all countries

earn 38% of their foreign exchange revenues by better export of tourism

goods and services (WTO, 2012).

Sustainable tourism contributes to governmental revenue. These

contributions can be differentiated into direct and indirect. Direct

contributions involve travel and eco-tax. Whereas indirect ones involve taxes

earned by selling the goods and services.

Sustainable tourism contributes in employment generation. According to WTO

(2012), 7% of the world population earns their living though employment

from tourism and sustainable tourism enhances the benefits earned.

Social and other Benefits:

Sustainable tourism influence better living facilities to the local community by

enhancing infrastructural investment and development of other modern

urban facilities.

Local economies are also influenced by tourism. The tourists often buy goods

and services form the local vendors. Thus the contribution, although not

easily measurable is multiplied in the local area over and over again. A study

of WTTC mentioned that it almost contributes equal to 100% direct

expenditure (http://www.biodiversity.ru).

Through tourism revenues, the authority can invest in nature protection. Thus

it increases direct investment and better management of natural resources.

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2.7 Importance of Sustainable Tourism in Spain and the Bahamas:

Sustainable tourism is obviously necessary for the development of tourism in both

the countries. 10% of Spain and almost 60% of Bahamas’s GDP relies on tourism.

So, it has a great influence on the social, economic, cultural and above all

infrastructural wellbeing of these two countries. If all these factors are not brought

under consideration, it will have a negative impact on the overall conditions of the

countries. Both of the countries understand the importance and have taken

adequate steps to adopt sustainability in tourism. Spain has formulated many plans

to ensure sustainable development. Of them The Spanish Strategy for Sustainable

Development (Spanish Ministry for the Environment, 2003) and Plan for Spanish

Tourism 2020 Horizon and Spanish Tourism Plan 2008–2012 by Spanish Ministry of

Industry, Tourism and Commerce are the prominent and effective ones.

Compared to Spain, the Bahamas has also adopted and accepted sustainability

approach very recently. The growing concern for environment protection has turned

them to a sustainable approach (Bahamas National Trust, 2013). Both the country’s

approaches are appreciable and if continued, will surely benefit them by providing

better environmental efficiency, greater tourist attraction, and greater revenues

and above all better social and infrastructural development.

3. Comparison between Strategic planning in The Bahamas and Spain:

This Section of the report attempts to compare the tourism of two countries, The

Bahamas and Spain. These two countries are different in tourism in many aspects.

While The Bahamas is famous for its mass marketing and artificial attractions; Spain

is best known for its natural beauty, national heritage, cultures, festivals and the

historical architecture. As the tourism attractions differ in the regions, so does the

tourism marketing and planning approach of their authorities. Their planning

approaches are explained below:

3.1 Tourism Planning in Spain:

The tremendous rise of tourism in Spain began in the early 1990’s due to

diversification of supply and spatial dispersion process. The natural beauty and

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cultural heritage of Spain accelerated the growth of tourism in the country (Vera

and Marchena, 1998).

Since the 1960’s tourism boom in Spain, both the demand and supply of hospitality

industry has increased (Hall, 1994). The need for a planned tourism development

has been rising since then. But for a long time there had been no organized plan for

tourism development in Spain (Bote, 1994). Until the early 1990’s, there had been

little effort given to provide a formalized and centralized planning policy.

The first few plans for development of tourism in Spain were provided between the

years 1964 to 1975. Between these times, three 4-year plans were formulated in

Spain. The aim was to make tourism industry of Spain a more productive and

effective contributor in the national economy (Richardson, 1976). But the policies

were more centralized with little space for individual regional development. It

created regional imbalance among the potential tourism regions of the country

(Tamames, 1978). The policies imposed excessive emphasis on promotion and little

resources were allocated for regional infrastructural development (Bote and

Marchena, 1996; Figuerola, 1999). The plans lacked proper town planning and land

development and did not have enough infrastructural assistance (De Tera´n, 1982).

After the oil crisis in 1973, need for a decentralized policy approach increased. The

need for land integration policy along with tourism policy was realized. Two types of

regional and local plans were introduced by the tourist administration. One for the

inland areas where there were fewer resources, another for coastal naturally

enriched areas. But the policy was hindered by recession (Bote and Marchena,

1996). The idea was to decentralize the planning system according to the need of

the regions.

In 1982, a new policy was initiated which would reduce the authority of the central

tourism planning body and emphasize equally on both public and private

investment in tourism (Bote and Marchena, 1996; Figuerola, 1993). Also policies

were initiated to emphasize on specialized tourism sectors like snow tourism, golf

tourism etc (Costa and Jime ´nez, 1999). At this time the municipal authorities also

took initiatives to sustain effective town planning (Ezquiaga, 1994). Due to

reduction of growth in tourism, State Tourism Administration of Spain introduced

“White Book of Spanish Tourism” where new and improved policies were proposed

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(Secretarı´a General de Turismo, 1990). Later in 1993 a new “Master

Competitiveness Plan for Spanish Tourism” was introduced nationally (Ministerio de

Comercio y Turismo, 1994).

After 1994, sovereign laws have been formulized and implemented in the country

according to different regions. The authority became more conscious about the

environmental issues and some even started to impose environmental taxes on the

tourists. But in recent years Spain lost its competitiveness (WEF, 2009 & 2011). The

tourism industry of Spain is experiencing their worst time in the history and is going

to face a long term change in the tourism cycle of the country (Butler, 2011). As a

result Spain has brought many changes in their recent policies. It has decided to

increase its tourism budget for a competitive environment like many other countries

in the world (WTO, 2012). It is trying to utilize its excellent weather to attract health

tourism (NITP, 2012). Also the rising popularity of eco-tourism is attracting the

authority. Also the authority realizes the necessity of use of ICT and technology in

modern tourism. That is why in the “Lisbon Treaty” and “Madrid Declaration” Spain

and EU declared tourism as a top priority sector and created an extensive allowance

in the framework of European Union’s budget 2014-2020 (NITP, 2012).

Although the tourism strategies are weakening in the present, it must be noted that

it’s effective planning has provided it success. Tourism in Spain accounts for 10% of

the country’s total GDP and employs 11% of the total labor force (NITP, 2012). In

2007, Spain became the second most visited country. Spain’s potential in tourism

has satisfied United Nations to open UNWTO’s headquarters there. UNWTO

confirmed in 2010 that their tourism GDP was US$53 billion which is second highest

in the world (UNWTO, 2012).

3.2 Tourism Planning in the Bahamas

In comparison to Spain, the Bahamas had organized their tourism planning early

enough. In the early 1970’s the tourism authority in the Bahamas had formulated a

plan that would develop their tourism. The main reason was that the Bahamians

wanted to build their economy on tourism. This is the reason that 60% of their total

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GDP is based on tourism and it employs more than 50% of their workforce (The

World Factbook, 2011; Encyclopedia of the Nations, 2010).

Bahamian economy is largely dependent on tourism and offshore banking services.

Although the Bahamas had formulated a tourism policy in 1970s, their plans and

strategies were ambiguous and thus led them to jeopardy. There was extreme

investment in tourism. This had led to excessive hotel and casino establishment

(Ramsaran, 1979; Wilkinson, 1997).

Although their economy is largely dependent on export and services of tourism,

Bahamians did not formulate a perfect plan. Their initial plan was flawed because it

did not have specific determined objectives or strategies. In 1981, the Bahamians

first brought tourism plan under consideration. Also, they did not take under

consideration of the possible global recession. Since the country’s economy lies on

the foreign customers (mostly US and Canadian residents), the global recession and

terrorist attack in USA had reduced their revenues and profit to a great instance.

Their main assumption regarding the demand of tourism in Bahamas was that the

warm Caribbean weather will attract the tourists and it would emerge as a summer

tourism market. Needless to say, none of the assumption could stand (Dames &

Moore, 1981; Wilkinson, 1997).

In 1984, the tourism ministry of the Bahamas formulated a plan where emphasis

was given on attracting customers. This idea led them to believe that their country

is going to be a prime spot for tourism. This false idea increased investment in hotel

and infrastructure and reduced agricultural activity. The forecasted number of

tourists still does not go to the Bahamas. Thus the overestimation has only

increased cost and liability (Wilkinson, 1997). The overestimation of customer

demand has also increased their marketing cost. Their marginal marketing cost

exceeded the marginal benefit gained from it. So, the marketing development plan

has failed (Wilkinson, 1997). The problem has intensified due to the rigidness of the

government and the lack of public-private proprietorship and policy formulation.

Over optimism and unplanned infrastructural development resulted in such a poor

condition of the tourism development in the Bahamas. According to Wilkinson

(1997), Bahamas need to rethink their estimates and bring about positive changes

14

in the plan. Also they must balance public and private contribution in the sector.

Only then can they succeed, otherwise they will continue to suffer loss.

4. CONCLUSION AND RECOMMENDATIONS

Tourism planning is an important aspect for the development of tourism. The main

purpose of tourism planning is to predict the uncertain future and act accordingly

(Gunn, 2002). Although it helps in tourism development, if planning is not done

accurately and gives a false idea, the result might be hazardous. So, it is necessary

that all the considerations are considered while formulating the plan.

It must also be told, that in order to achieve the goals and objectives, only planning

is not enough. Planning and proper implementation helps the users to cross all the

uncertainties and adversities. It must also be born in mind that every group of

people in the society must work together to achieve the objectives and reach a

desired target (Cooper et al, 2008). Social, political, ecological, cultural and

economic all factors are affected through tourism. All these factors must be

considered while planning. Also, it must be said that there is no single plan for all

the scenarios and circumstances. So, policies should have adequate flexibility and

alternative strategies must be considered to ensure that no unwanted situation can

hinder the prospect of the industry. The case studies have shown if a plan is

properly addressed and implemented, it can take the country to the peak of

success. But if they are not properly addressed, they might as well ruin such an

important industry and its potentials.

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