Tag: Tourism Strategy

Tourism is not static. It ebbs and flows, along with changing cultures, preferences and tastes. Destinations often struggle with adapting to the dynamic mindset of tourists, however. There are a number of techniques to mitigate seasonality in strategic destination planning, but what exactly are these?

A little story, when I was eight, I experienced the impact of tourism seasonality for the first time. I went to Sorrento, a picturesque beachside town on Melbourne’s Mornington Peninsula. During my summer visit, I observed numerous tourists enjoying the beaches. They patiently queued up outside restaurants and ice cream shops. Additionally, all the stores were open, catering to the needs of tourists who were purchasing souvenirs and various items.

This time, things were different. Many shops were closed, including the ice creamery. There were a few restaurants open, but only half full. The beach only had a few individuals walking along the sand, and the ambience was more relaxed and mellow.

Maya Bay, a popular area in Thailand that had to be closed off due to overtourism and seasonality.
Maya Bay, a popular area in Thailand that had to be closed off due to overtourism and seasonality (Photo Credit: MikeClegPhoto/Pixabay)

“Mum, where are all the tourists?” I said,

“Not many tourists come in Winter; it’s too cold for the beach; it’s the low season.” Mum exclaimed,

“But, Sorrento has many other great activities to do, so it should attract tourists throughout the year!”

The idea that came to me as an eight-year-old is something that tourism professionals have struggled with for many years.

How can we tell tourists that there is no such thing as the ‘best season’? How do we tell them that our product is engaging and enjoyable outside peak times so that they keep coming? In addition, in some cases, how do we deter individuals from coming during peak times to prevent overtourism? These are the considerations needed to curtail seasonality in strategic destination planning.

What is the meaning of seasonality?

Seasonality‘s definition in tourism relates to the volatility of tourist numbers in a destination over time due to natural and institutional factors. Natural factors predominately include the weather and climate, which may affect elements of experience within a destination.

The cherry blossom season in Japan occurs in late March or early April. It is a well-known example of natural seasonality in tourism. Thousands of tourists come to see the cherry blossoms, causing airfares and hotel prices in Japan to increase significantly. 

Institutional factors are related to specific events which may occur at different times of the year. In my home city of Melbourne, Australia, a major example is the Australian Open. This is an annual major tennis tournament that attracts swarms of tourists both domestically and internationally.

Kinkakuji in Japan. Japan is a destination negatively affected by seasonality.

Kinkakuji in Kyoto, Japan, a destination that grapples with the effects of overtourism and seasonality. (Photo Credit: Kevin Li)

What is the effect of seasonality?

Seasonality’s effects on destinations can be far-reaching, affecting the environment, society, and the economy. High demand in peak times puts strain on locales and can cause long-term damage. In low seasons, tourism-dependent places may experience poverty, a decline in material living standards, and overall despondency.

Overtourism: Strain on local resources and services during peak season

During peak season, certain places get overwhelmed by too many tourists, which strains local services and infrastructure. This is what is called ‘overtourism’, which has been an issue affecting destinations for decades. This is a key development focus that Solimar International partners with destinations to prevent.

In particular, this has intensified in some destinations following the end of the end of COVID-19 lockdown. Overtourism heavily affects Venice in Italy and Barcelona in Spain, particularly during the summer months. These destinations have experienced environmental damage, alienation of local residents, and impacts on the capacity of local services. The impact of too many tourists can bother residents, making them dislike tourists more and worsening the tourist experience.

Overtourism can be so bad that it also threatens the local ecology, both fauna and flora. 

For example, tourism destroyed Thailand’s Maya Bay after the movie “The Beach” made it famous in 2000. This was particularly because the vast majority of tourists would visit the bay during Thailand’s ‘cool season’, meaning a concentration of tourists around this time period.

Tourists and boats damaged coral, causing marine animals like sharks to leave and the bay to lose its natural beauty. It took a major closure and regeneration project at Maya Bay to return it to its pristine glory.

However, even after these works, the area is still at risk. Some say that current efforts to curtail tourist numbers are not enough to protect it. There are calls to close Maya Bay off to tourists completely in peak season. The need for drastic measures to keep tourism sustainable and mitigate seasonality in strategic destination planning is increasingly apparent.

Economic hardship during the low season

When destinations enter their low season, demand for local goods and services often decreases substantially. This depends on the destination’s reliance on its tourism industry.

For destinations with high social and economic reliance on tourism, the results can be very alarming. When visitor numbers drop, people may lose their jobs and income, putting pressure on their household budgets.

Places with high seasonality have difficulty getting outside investment because people think they won’t make as much money overall. This is because spending and growth are not consistent, even if the place has a popular holiday season.

Seasonal employment

One pivotal challenge facing destination management organizations is the intricate puzzle of seasonal employment. Places with fluctuating demand use temporary contracts to hire more staff during busy times. However, the company releases these staff members when demand decreases.

Some people, such as adventurous working holidaymakers, find these contracts suitable. But in certain areas, they become the main source of income for residents throughout the entire year. The consequence? A pervasive shadow of seasonal unemployment looms over destinations, casting a gloomy veil of poverty. Notorious among these are ski destinations, where extended closures outside peak times exacerbate the issue.

In addition, many places struggle to staff their businesses adequately during peak periods. This happened most recently in 2021-2022 with the easing of COVID restrictions in the USA. However, this is not the first time it has happened, and it will likely be an issue for future ski seasons. Thus, developing a sustainable employment solution is vital when curtailing seasonality in strategic destination planning.

What are some strategies to mitigate seasonality in strategic destination planning?

Seasonality can really bring destinations to their breaking point. At Solimar International, we work with destinations to develop comprehensive strategies to prevent this. No single technique will eliminate seasonality; however, using a careful mix of different techniques can mitigate the issue. These techniques can include economic, marketing, and societal dimensions to tackle seasonality in strategic destination planning from all sides.

The Louvre. Whilst seasonality remains moderate in Paris, where the Louvre is, overtourism is high, and is a key concern for the protection of the Louvre's artwork.

The Louvre, a very prominent tourist destination in Paris, France, often overrun by tourists, especially in peak holiday seasons. This can affect the integrity of the artwork inside. (Photo Credit: Pixabay)

Strategic destination planning technique 1: Implementation of a seasonal pricing strategy

When the weather is not conducive for tourism, there must be another compelling reason to visit the destination. Altering prices is a great way to encourage people who want to travel on a budget. Increasing prices in peak season to subsidize cheaper prices in low season means that average income remains the same.

Most hotels often use demand-based pricing to maintain steady revenue flows. Airlines also use seasonal pricing and service offerings to increase yields from tourism. Local businesses can make use of seasonal pricing in their service offering.

In peak season, restaurants can increase their menu prices, entry fees, and range of services to attract greater yield. During slow times, businesses can link together to offer affordable package deals that attract visitors and increase spending. This incentivization allows the destination to defy seasonality in strategic destination planning, increasing yields from tourism to benefit the local economy.

Strategic destination planning technique 2: Target locals and domestic tourists

Locals are fantastic people to target when attempting to combat seasonality. Low barriers to tourism, such as lower cost and distance, increase their propensity to travel in off-peak times. These times of the year are quieter and are likely to attract locals who wish to have a more relaxing experience.

An example was the Victorian travel voucher scheme, which encouraged tourism within Victoria, Australia, in late 2020. The vouchers gave a $200 discount on tourism in regional Victoria, if customers met certain requirements. Customers had to spend at least $400 on activities, lodging, or tours in regional Victoria to use them.

This helped regenerate tourism after a period when tourism numbers were at an all-time low. The DMO used this plan during the aftermath of the COVID-19 lockdown. However, destination managers can also use it to fight against seasonal changes. In Australia, this strategy is part of a broader narrative to create a ‘tourist mindset‘, bolstering domestic visitation.

With a strong domestic tourism economy, cheaper, shorter travel leisure trips help to fill in gaps in low periods, aiding stability. This is particularly important in areas with high economic reliance on tourism.

Strategic destination planning technique 3: Development of a broader product and package range

Creating tourism products and packages for low and shoulder season tourism are great ways to combat seasonality. Every destination has something to offer at all times of the year, even if it is not their hallmark product.

A great example of this are “four season resorts” (and no, we are not just talking about the lavish hotel chain), where unique experiences are offered at all times of the year.

Guests can enjoy skiing in winter, swimming in summer, and other indoor activities like ice skating or leisure treatments. Operators can also create special deals for conferences and MICE events for low season to fill in the gaps. Ensuring that there are no times when the tourist does not have a reason to go is key in combatting seasonality in strategic destination planning.

A prominent example of this is, coincidentally, the “Four Seasons” Resort in Whistler, British Columbia. While most prominently a ski resort for winter months, it also offers experiences in fall, summer and spring. Combined with adjusting season rates and other seasonality adjustments, the resort brings in visitation year-round. This preserves jobs and ensures stability for the destination, even if there are minor fluctuations in seasonality patterns.

Whistler, Canada, the location of an all-seasons resort that aims to mitigate seasonality

Whistler, Canada, the location of an all-season resort that caters to tourists throughout the year, not just the winter peak. (Photo Credit: Brigitte Werner/Pixabay)

Key takeaways to eliminate seasonality in strategic destination planning

The bottom line is tourism will happen if tourists are happy and will slow if they are not. The key to any successful strategy lies in how customers respond. This comes down to the needs of the tourism segment in your market and the external environment. Listening to both customers and the needs of society and the environment is vital in creating a sustainable tourism strategy.

For price-sensitive tourists, seasonal pricing of airfares or hotels may be an effective approach. However, in areas frequented by more affluent tourists, enhancing the quality and breadth of tourism offerings can serve as a better incentive.

Monitoring peaks and troughs in tourism activity and their repercussions on the broader economy, society, and environment is paramount. If local communities, infrastructure, and natural ecosystems are adversely affected by fluctuating tourist numbers throughout the year, proactive measures are necessary.

If you’re considering a trip, it’s an opportune moment to reconsider your travel timing and approach. Sustainability concerns aren’t solely the responsibility of destination marketing organizations; significant changes can stem from individual behavioral adjustments. Opting for off-peak travel times and educating yourself about current issues in your destination can contribute to mitigating adverse impacts.

Solimar’s tourism expertise helps you create a captivating story that promotes tourism all year, not just in peak season. Want to help implement sustainable tourism solutions? Learn more about our virtual internship opportunities here

Tourism is truly a booming industry and affects many people around the world. Some destinations have flourished, but many have had to endure the negative aspects of tourism. Taking into account all of the global issues we face nowadays, such as climate change and pandemics, it is now more crucial than ever to assure a destination is thoroughly planned and effectively managed. In this blog we cover the question of what a destination development plan is, what process it undergoes and why every destination needs one.

What is Destination Development?

The development of a destination is the process of evolving the location’s supply side of tourism in order to meet the area’s tourism demands. This can be achieved by adding supporting infrastructure, including accommodations, transport, technological advancements, but also intangible aspects like workforce development. Destination development will automatically occur when the demand for a destination increases; so it is vital to ensure it is a strategically executed process.

Why is it important to plan a destination’s development? 

Planning a destination’s development is a crucial process, which provides tourism organizations with the needed tools to achieve a common goal. In any destination the necessary steps must be taken early on in the process to prevent unhealthy growth. 

How do destinations change over time?

Destinations can evolve quite drastically over time, especially emerging destinations. Emerging destinations typically have more local participation. As they become more developed, they get an influx of foreign investors and business owners who can change the feel of a destination.

What are the social impacts of tourism?

It is more or less inevitable for a destination with an attractive tourist offer to become popular. Take for example an emerging destination. With an increase in visitors, more and more outside business interests will see it as an opportunity. Once international interest for the area starts to increase, new challenges and barriers emerge for service providers as they don’t have the training and knowledge to capture markets coming from outside the country.

Without a destination development plan that considers growth, as well as the needs of tourists and service providers, destinations are going to miss that market entirely. This can lead to another investor from the outside with the necessary expertise taking advantage of the growing market.

This in return will entirely change the visitor experience. The destination will lose its authenticity: its uniqueness and with that its ability to compete and differentiate itself from other destinations. 

How can tourism planning help the environment and its protection?

Generally global tourism isn’t known for being environmentally friendly. Increased demand leads to an increase in travel, as well as the destruction of nature to acquire greater space and resources. Even further, this is all done for the few “good” months of the year, in which tourism is optimal.  

However, by introducing a tourism strategy, it is then possible to minimize these effects and maximize the environment’s protection. 

By including a careful assessment of the region’s environmental problems as well as possible threats it could face with an increase in tourism into the destination analysis, one can set a clear goal. One can include these critical environmental aspects into the objectives and incentivize the creation of policies that can protect the destination’s environment. 

In addition, tourism generates two key resources that can be harnessed to protect the environment. 

  • Increased financial income: Earmark a portion of the profits and direct them towards local environmental conservation activities.
  • People’s engagement: Reach agreements with local beneficiaries to make an individual commitment to support the project outcome. 
Set the roots for sustainable destination development
Set the roots and groundwork for sustainable and maintainable growth early on.

What is a Destination Development Plan?

Destination Development Plans (DDPs), also known as Destination Development Strategies or Destination Management Plans, are all closely related tourism plans.

Tourism plans are holistic strategies, dedicated to a defined tourist area, which based upon intricate destination research and a market analysis, form destination specific objectives and correlating approaches. The strategy is designed to create a guiding plan to develop and manage a destination to its specific needs and reach a common goal.

The strategy should always have an outcome in mind to maximize local economic profit and set the groundwork for sustainable and maintainable growth.

Solimar International refers to the term Destination Development Plan, as for most of their sites, development is a major part of the objective. 

What does a Destination Development Plan generally include?

Destination Development Plans can generally be split into two halves. 

  1. Situation Analysis: A detailed evaluation of the destination’s current state. This would include information on existing tourism assets, available tourism services, the industry’s performance and its competitors, as well as involved parties for tourism policy, management, marketing and investment. 
  2. Future Goal: Concluded from the analysis, the future goal is both the desired outcome for the development of the destination as well as the means to get there. It is vital to agree upon a shared vision and form several strategic objectives to focus on.
Chasing a shared destination vision
Make sure you chase a shared and reasonable goal.

How do you make a plan for a Tourism Destination?

The process of making a plan for a tourism destination can differ. This is greatly affected by the type of stakeholders that are involved and especially whether the destination already has a Destination Management Organisation. However they usually all follow similar steps of action.

In the Visit Tunisia Project, where Solimar was contracted to develop a National Tourism Strategy and six regional destination development plans aligning with the national strategy, the process underwent the following steps.

Developing a destination should go step by step
Destination development planning should be a step by step process.
  1. Understand the place and all of its attractions.

    This is especially important for consulting companies like Solimar. Foreign entities cannot just come in and create a plan for a destination; in order to gather on-site knowledge and incorporate different local perspectives in the plan, it is imperative to involve local stakeholders in the process.

  2. Understand the visitor.

    This step will directly influence the path a destination will take. It is important to figure out what kinds of people visit the destination, for how long and when. Once this is understood, it will provide vital information on visitors’ behavior and how to better attract your target audience. This will shape the future of a destination.

  3. Inventory what services are available. 

    It is crucial to understand the destination’s existing human capital, as well as infrastructure (including accommodations, tourist facilities, transportation, signage, retail, hospital facilities, payment options etc.)

  4. Bring it all together with the SWOT Analysis.

    The SWOT Analysis is a final conclusion, drawn from the situation analysis, which displays all of the internal, as well as external positives and negatives to a destination: the strengths, weaknesses, opportunities and threats.

  5. Develop the future vision and its major objectives. 

    With the accumulated in-depth knowledge from the situation analysis, you have the groundwork for what the obtainable future vision will be. The main goal will then be divided into several clear objectives and the needed approaches. Here the destination asks itself, in what direction should this development go? 

  6. Set the plan up for success by ending with an Action Matrix.

    The process of making a DDP already brings its own benefits, however it can easily be abandoned once development begins. Therefore it is indispensable to create a plan of action to accomplish the objectives aimed for. Each strategic initiative should have several actions dedicated to it. For each action it is important to identify the partners responsible for its implementation and create a timeline (near-, mid-, and long-term).

What entities are involved in the process of making a Destination Development Plan?

The question of who is in charge of making a destination development plan, as well as what kinds of entities get involved, mainly comes down to whether the destination already has a DMO which in addition needs sufficient resources and knowledge to complete such a process. In the case where there is not a DMO or they don’t have enough of an experienced workforce, they hire a consultant such as Solimar.

Apart from the DMO or consulting company, there are three separate levels of partners involved in the process of making a destination’s strategy. 

  • Donor: With emerging destinations especially, donors make up the first layer. For example, in the case of the “Visit Tunisia Project,” the donor is USAID. 
  • National level partners: Government institutions or independent organizations given the power by the government to manage the tourism sector or other intersecting sectors. Examples of these include the Ministry of Tourism in Namibia, the Forest Department of Liberia  or the Ministry of Environment in Uganda. 
  • Local industry associations, such as tour guide associations, hotel owner associations or artisanal associations. This third level, especially for emerging destinations without an established tourism organization, creates a deep connection with local stakeholders and lets the local community be represented.

What is the purpose of a Destination Development Plan?

The general purpose of a destination development plan is to guarantee a long-term positive outcome for a destination. It takes into account a destination’s assets as well as opportunities that it’s missing out on. Among the goals of the destination development plan, one is to ensure the destination is competitive and delivers a strong product to satisfy visitors. However more importantly, it creates the framework and guidelines for sustainable development of the destination.

What are the main objectives of tourism planning in a Destination? 

The main objectives for any tourism plan are to:

  • Increase visitor satisfaction
  • Assure a destination’s competitiveness (and foster its uniqueness)
  • Maintain participation and integration of local communities
  • Use of resources and the environment in a sustainable manner
  • Protect cultural heritage 
  • Stimulate Economic growth

In order to achieve these goals, destinations will set up several objectives tailored to its specific needs.

What are the benefits of destination planning?

In addition to making a destination competitive, proper tourism planning will provide perspectives for local communities, ensure the protection of environmental and cultural resources and protect the destination from being overwhelmed by the industry.

So by taking a destination’s assets into account these strategies serve as a guidance tool to tourism organizations. If executed correctly, this creates benefits for more than just economic growth. Planned destinations can:

  • Involve the local community and provide income
  • Minimize environmental impact and drive some of the profits towards its protection
  • Support a destination to stay true to its traditions and uphold its culture
  • Improve understanding of different cultures and relations between guests and hosts
  • Prevent over-tourism
  • Make it more than just another “beach experience”
Destination Development Plans guide the process for the desired direction
Destination development plans help define the desired direction and reach the goal.

What makes Solimar International’s help effective? 

Although each destination is different, the process of making a destination development plan doesn’t change significantly. Not only is the knowledge needed regarding how such plans are structured, but experience and knowledge of the tourism industry is also necessary.

Through Solimar’s vast experience, gained from 200 projects and over 500 destinations, the organization boasts the complete suite of tools needed to help destination’s reach a sustainable goal. This knowledge includes: 

  • Developing a well-defined and well-successful formula for such plans
  • Incentivizing the participation of various stakeholders and create a space for collaboration
  • Having the understanding of the most effective marketing tools that exist 
  • Being well-networked within the private sector of the tourism industry and being well versed in investment promotion
  • Having repeated experience with the later implementation of such plans

If you want to learn more about how tourism can help destination’s develop in the right way, and how our work makes a difference, check out our Virtual Internship Program!

A Tourism Improvement District (TID) is a revolutionary way to fund destination marketing programs. They are typically run by local businesses that collaborate and invest collectively to support the growth and development of their destination’s tourism industry. Depending on where you are in the world, the concept of a Tourism Improvement District has several different names. The United States first started using this term in West Hollywood in 1989. The UK and other destinations soon followed, by developing similar public-private partnerships sometimes called “Business Improvement Districts” or “Tourism Marketing Districts”.  Though they have different names, the goal is the same – increase the number of overnight visitors using business and services.

Lodging businesses are usually heavily involved, charging each visitor a per-night occupancy tax (also called a lodging tax, room tax, hotel tax, or tourist tax) usually ranging from 1-5% of the total bill. These funds raised are then directed to a destination marketing organization/destination management organization (DMO), and must be used on programs that increase paid nights spent in the destination. The TID tends to fund services such as marketing programs, tourism promotions, and projects to regenerate the destination to make it more attractive to prospective visitors. The period of the district varies, ranging from one year to a ten-year term, with some contracts lasting even longer. A 2016 survey of tourism districts revealed that most districts took between six and twelve months to form.

West Hollywood Tourism Improvement District Case Study

West Hollywood is the city where it all began and the home of the first TID (and now one of ninety-five of California’s cities that have a TID). In 2013, West Hollywood revived its previous TID and increased the hotel’s levy from 1.5% to 3%. The levy was then given to the West Hollywood Travel and Tourism Board where they used these funds to form strategic plans to promote the identity of West Hollywood, create a destination marketing strategy targeting potential visitors, and undertake advertising solely focused on the travel industry. In 2014, they implemented a three-year plan with the following objectives:

  • Increase demand of the destination
  • Strengthen domestic and international awareness
  • Improve and grow partnerships
  • Be a leader in developing the destination
  • Reinforce a culture of innovation

To achieve these objectives, they spent a total of $6,289,440 with the hotel levy contributing a staggering $5,900,000.

A 2015-2016 annual report by the West Hollywood Travel and Tourism Board, noted there were 1.38 million visitors to West Hollywood during this year. These visitors spent a total of $737,212,000, and directly supported 5,289 tourism industry jobs. In 2017-2018, West Hollywood saw record-breaking visitor numbers and spending, with over 3.59 million visitors, spending $1.73 billion, with an increase of employment supporting total 7,958 jobs. These numbers indicate how vast growth occurred in just two years.

Beyond West Hollywood, TIDs have developed other global destinations such as Visit Britain registering a 4 million increase in visitor numbers annually, and Visit Barbados showing an additional 2 million visitors per year. Once a Tourism Improvement District is implemented, destinations must be sure to maintain focus on the implementation of a tourism development strategy for consistent tourism promotion. Businesses in a destination need to collaborate and sync their efforts, to consider innovative ways to effectively market their destination.

 

 

“We rely confidently on Solimar's deep technical experience and professionalism as tourism consultants. You always are exceeding our expectations.”
Leila Calnan, Senior Manager, Tourism Services Cardno Emerging Markets

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