Category: Strategy planning & execution

Strategy planning and implementation methods

Environmental sustainabilityStrategyStrategy planning & executionSustainability

Johnny Cay Regional Park: Strategies for Conservation in the Caribbean

Johnny Cay, a small Colombian island in the Caribbean, faces significant conservation challenges. Although the park is a protected area, currently no license system or code of conduct exists for the tour operators who bring tourists to Johnny Cay from nearby San Andres. This lack of a tourism management plan has led to negative environmental consequences on the island, which in turn jeopardizes the long-term sustainability of businesses operating in Johnny Cay Regional Park.

A Sustainable Tourism Strategic Plan for the park has been recently developed. The plan supports conservation and business development in Johnny Cay Regional Park by identifying conservation threats, creating a plan to mitigate those threats, and implementing sustainable tourism best practices.

Principal conservation threats include environmental degradation, mainly pollution, both on the island and within the surrounding waters. The island is also losing its cultural identity and turning into a daytime party spot, leading to an abundance of alcohol consumption and diminishing authentic cultural interaction. Operations must become more conservation-focused if tourism businesses hope to use Johnny Cay Regional Park as part of their long-term business strategy.

The Sustainable Tourism Strategic Plan addresses conservation threats by employing five specific strategies over the course of three years:

  1. Creation of a Sustainable Tourism Department within Coralina (The Organization for the Sustainable Development of the San Andres, Providencia, and Santa Catalina Archipelago).

This department will ensure that businesses comply with specific operational standards while operating within the park. The department will also develop training programs, implement environmental education programs, and act as a link between Coralina and tourism associations on the island.

  1. Develop a Sustainable Tourism Certification Program within Johnny Cay Regional Park

This program will serve as a tool for setting operating standards and increasing sustainability awareness among local stakeholders. The program will provide best practices and codes of conduct for businesses and use the implementation of these practices as a filter to determine who can operate within the park. Businesses will be encouraged to gradually implement best practices and will receive recognition upon successful implementation. Businesses will also receive training related to different strategies for improving their product offerings. Ideally, this will serve as a pilot program for the region with possible extensions on the nearby islands of San Andres, Santa Catalina, and Providencia in the future.

  1. Provide a Business Support Program for tourism businesses operating within the park

A relatively low standard of technical business knowledge emerged through the project’s initial assessment process. This negatively impacted total revenues and product quality while poor marketing limited the ability for businesses to attract new clients. A business support program, run through Coralina, has been proposed to provide training in business planning, marketing, and monitoring and evaluation. A competition has also been proposed through which locals will develop their own business plans and compete for initial funding based on plan quality.

  1. Develop a Communication Strategy to increase cooperation between tourism businesses and Coralina

Improving communication among local residents, tourists, businesses, Coralina, travel agents, and national tourism entities will be vital to the success of the sustainable tourism strategic plan. This communication strategy hopes to strengthen conservation efforts by ensuring that residents and visitors understand that Johnny Cay is a nationally-recognized regional park. The goal is to invoke a sense of pride within locals and operators to foster a culture of conservation. Additionally, the communication strategy aims to facilitate a smoother communication process between businesses and other entities while keeping businesses up-to-date on the implementation of the overall sustainable tourism strategic plan.

  1. Develop a system for tourism businesses to pay a concession fee for operating within the park

The plan calls for this implementation to occur in year 3, after the above strategies have had time to take hold. Each business applying for a concession will have their tax calculated based on their financial projections. A maximum tariff will be established and businesses will have to comply with certain standards in order to apply. Very clear communication and successful implementation strategies 1-4 will be vital to establishing the concession system.

Johnny Cay faces serious conservation issues that threaten the long-term viability of its corresponding tourism economy. However, with the proper strategy and training, these negative consequences can be reversed.

This blog post is from www.solimarinternational.com/resources-page/blog/itemlist/tag/Destination%20Management

StrategyStrategy planning & execution

The World Bank builds country ownership in the National Tourism Strategy of Georgia

Tourism strategic planning is a comprehensive process for determining what a business or destination should become and the steps needed to achieve that goal. Many times when consultants are hired to create a strategic plan, the plan is at risk of remaining on the shelf and never being fully implemented. Why? Because those most affected by the tourism development plan may not have been fully integrated into the development of the strategy, and may not agree with the ideas. This is an ongoing issue the tourism industry faces, and a difficult one in which to find a solution.

The World Bank and the Georgia National Tourism Administration (GNTA) recognized this problem in the past. As part of the solution, they decided to develop a tourism strategy for the Caucasus nation. The consultants were asked not to lead the development of the strategy, but rather facilitate and guide the GNTA through the strategy development process to ensure it was collaborative and comprehensive as possible.

Between the years 2009 and 2013, Georgia’s international tourism arrivals grew over 300%. This was largely in part to its envious location at the crossroads of Europe, Asia and the Middle East, as well as increasing amounts of exposure in international press as a unique, exciting destination. Georgia is the birth place of wine, has an exquisite culinary tradition, a rich early Christian history, and an abundance of natural assets – including 7 national parks. These attributes – if developed practically – demonstrate a significant strength to the country’s tourism sector within the high-value European marketplace, while improving the industry’s ability to contribute economically.

To keep pace with the increasing demand for tourism in Georgia, additional financing for private and public investments will be necessary. “The joint World Bank and IFC collaboration [in Georgia] focuses on fostering entrepreneurship and access to finance, improving the investment climate, and developing Georgia’s tourism strategy that will determine how to improve the sector’s performance, align implementation priorities and enable job growth.” said Henry Kerali, World Bank Regional Director for the South Caucasus.

Georgia’s tourism development approach has generally been focused on regional advancements rather than a cohesive national-level plan. However, to maximize tourism’s national impact, a national strategy is required that takes into consideration large scale infrastructure and marketing activities that cannot be achieved by the regions alone.

 “The tourism sector currently provides nearly 20 percent of export earnings. The national tourism development strategy is, therefore, an instrument to take full advantage of Georgia’s potential and position it globally as a rich, diversified and high quality destination.” Ahmed Eiweida, Program Leader for Sustainable Development Programs in the South Caucasus.

Where is the Georgia National Tourism Administration now?

With the support of the World Bank, the GNTA produced a 2025 strategic plan that articulates the country’s current position, its vision for the future, and the key activities required in order to get there.
To build buy-in for the strategy, the GNTA led regional workshops, communicated with inter-government committees, issued press events and integrated action plans from other tourism-related sectors. The final document describes how the GNTA and its partners will deliver creative marketing to attract to higher income markets and statistical projections on how the GNTA will achieve a minimum of 5% growth rate over the next 10 years.

Where does Georgia National Tourism want to be in 2025?

The GNTA envisions the country as a premier, year-round, high quality tourism destination – a destination centered on its unique cultural and natural heritage, its world-class customer service, and timeless tradition of hospitality. The GNTA will be at the forefront of tourism competitiveness, through strategic investments in infrastructure, education, marketing, and the development of unique Georgian visitor experiences that appeal to high-value markets around the globe.

How does the GNTA lead the tourism industry to reach it’s vision?

Extensive stakeholder consultation resulted in the identification of 50 priority actions that have been grouped around the following 8 strategic objectives.

1.Respect, enhance, and protect Georgia’s natural and cultural heritage
2. Create unique and authentic visitor experiences centered on those natural and cultural assets
3. Enhance competitiveness, through delivery of world-class visitor services
4. Attract higher spending markets, through increased and more effective marketing and promotion
5. Expand and enhance Georgia’s ability to collect and analyze tourism data and measure industry performance
6. Enhance the business environment, to facilitate increased foreign and domestic investment
7. Expand public and private sector investment in the tourism sector
8. Build partnerships between government, industry, non-governmental organizations, and communities that will be needed to achieve all of the above

What will the challenges be?

Even though the GNTA has completed their strategic plan and found positive monetary incentive to start implementation; the national and regional tourism stakeholders must work as a team to have success. And most importantly, the 2025 strategic plan will only be effective if the GNTA continues to be committed and take ownership of this visionary strategic plan.

This blog post is from  www.solimarinternational.com/resources-page/blog/itemlist/tag/Destination%20Assessment

Marketing 3.0StrategyStrategy planning & executionTourism marketing

Disney “Commandments” = Great Learning for Cities and Downtowns

I once came across the informal guidelines that have inspired and guided generations of Disney Imagineers as they design and manage the Disney theme parks and guest experiences. These guidelines are based on the original insights that Walt Disney used when he built Disneyland in 1955.  But it was Marty Sklar who documented these principles and called them “Mickey’s Ten Commandments: Ten Things You Can’t Forget When You Design a Theme Park”. Sklar was one of the unsung heroes of Disney. He joined Disney one month before Disneyland opened, and until his retirement in 2009 directed the Imagineers using these Commandments.

The Commandments are very simple and the principles can be applied to many situations related to tourism development, branding and marketing, urban planning and visitor experience management.

  1. Know your audience – Don’t bore people, talk down to them, or lose them by assuming that they know what you know.
  2. Wear your guest’s shoes – Insist that designers, staff, and your board members experience your facility as visitors as often as possible.
  3. Organize the flow of people and ideas – Use good storytelling techniques, tell good stories not lectures, lay out your exhibit with a clear logic.
  4. Create a ‘weenie’ – Lead visitors from one area to another by creating visual magnets and giving visitors rewards for making the journey.
  5. Communicate with visual literacy – Make good use of all the non-verbal ways of communication – color, shape, form, texture.
  6. Avoid overload – Resist the temptation to tell too much, to have too many objects, don’t force people to swallow more than they can digest, try to stimulate and provide guidance to those who want more.
  7. Tell one story at a time – If you have a lot of information divide it into distinct, logical, organized stories. People can absorb and retain information more clearly if the path to the next concept is clear and logical.
  8. Avoid contradiction – Clear institutional identity helps give you the competitive edge. The public needs to know who you are and what differentiates you from other institutions they may have seen. (Yes, Walt Disney was advocating the principles of branding long before they were applied to places.)
  9. For every ounce of treatment, provide a ton of fun – How do you woo people from all other temptations? Give people plenty of opportunity to enjoy themselves by emphasizing ways that let them participate in the experience and by making your environment rich and appealing to all of the senses.
  10. Keep it up – Never underestimate the importance of cleanliness and routine maintenance,
    people expect to get a good show every time, people will comment more on a broken and dirty environment.

In suggesting Disney principles and techniques I am not advocating the “Disneyfication” of cities and downtowns. Make no mistake, Disney properties are theme parks. They are not city or community downtowns where residents live, work, study and play. However, Disney locations have raised best practice standards in visitor experience design and consequently provide excellent learning opportunities for ambitious communities.   The genius of Walt Disney never ceases to amaze me, along with lessons from his systems that we can apply to communities everywhere.

This post is from http://citybranding.typepad.com/city-branding/page/2/

StrategyStrategy planning & execution

5 Common Mistakes in Business Planning

“The business of a business is business” goes the famous saying. Simply put, it means that a business needs to be practical (has a sound model, makes money) and realistic (whatever you set out to achieve, you should be able to achieve it) to operate successfully. However, growing a business that is both practical and realistic is much easier said than accomplished. Businesses are complicated and they contain a lot of moving parts. Here are 5 common mistakes you should be wary of so that your business remains practical and realistic during the planning stage:

  1. Not understanding the difference between planning and a plan

Tim Berry, the founder of Palo Alto Software stresses that the value is never in the original plan. Rather, it is in the implementation. He stresses that a plan can serve as the foundation providing a strategic direction but it is never valuable unless it is put into action. Planning is a continuous cycle, which takes a plan, puts it into action, compares the outcome with the projected results, and uses this new data to adjust the plan and set goals accordingly. It is the planning that creates value and allows a business to learn its strengths, weaknesses, opportunities, and threats as the time goes by – not the original plan. Therefore, a planning cycle should be put into place and the plan needs to be reviewed & appropriately changed on an annual basis to guide the business towards the desired end. This in turn, makes your business practical and realistic in response to the market.

  1. Ignoring market realities

The market is of a crucial importance to every company operating around the world. Susan Ward, co-owner of Cypress Technologies and an IT Consulting business, illustrates that a company can have an amazing product or a service that they would like to sell, but if the consumer is non-responsive to the product and does not want to purchase it, then the company will never be successful.

For example, if a company sells umbrellas in a place where it only rains 5 days a year, people would not purchase the umbrella. If the same company sells an umbrella in a market where it rains 200 out of 365 days a year, the demand is higher and umbrellas will likely sell. Even then, there are several other factors that need to be taken into consideration. Take a look at a business’ environments and corresponding factors in diagram below:

Adequate research into market dynamics needs to be conducted annually to understand the business climate, set realistic goals and assumptions, understand the competition, and price the products/services appropriately.

  1. Being everything to everyone

Bill Cosby has famously said, “I don’t know the secret to success; but the secret to failure is trying to please everybody.”

Pick a focus. Pick a problem to solve in the market. Solve it. It is crucial to pick a focus for your business and it is crucial to keep sight of it. It keeps things practical and realistic. Spreading yourself too thin trying to go in numerous different directions will most likely result in nothing working out too well. Ensure you have clear objectives when business planning and ensure that you tailor your plans to suit your business purpose. Whatever you pursue, make it your singular focus. Tim Berry defines strategy as “… focus. It’s as much what you aren’t doing as it is what you’re doing.” Therefore, be clear in what you do so that you can save time, money, and set goals that correspond with the purpose of the business. You don’t need to please everyone.

  1. Thinking that big picture is the key!

Tim Berry states that a “good business planning is nine parts implementation for every one-part strategy”. Therefore, while it is commendable to have a vision and a strategy, as they act as the guiding forces, a detailed action plan is very necessary to achieve the desired end. You should have a goal and underneath list all of the steps that need to be taken to accomplish that goal. More so, you should detail who is responsible, the dates and deadlines for the tasks, forecast the outcomes, design suitable key performance indicators to measure success, measure success against projections, and review the efforts to make decisions for the future of the company. The point is to put planning into action in such a way that there is accountability for each task and action, and you can measure each component. That will provide a much-detailed outlook onto what is working for the company and what areas require improvement. The big picture paints a pretty sight, but the details and implementation make that sight a reality.

  1. Treating it as a race or sprint

Being an entrepreneur is not a race. It’s a disciplined lifestyle, which demands time, persistence, and commitment. Therefore, to minimize risk, continuous business planning is essential and should become a natural rhythm rather than an activity you pursue irregularly. A plan should be carefully put into action. The actions then need to be measured. The new insight you gain should influence your plan. One also continuously needs to be wary of their market, consumer demands, their product/service offering, and pivot in response to the change to business’ environments.

A plan is not a final product, only a beginning. It’s the implementation, continuous planning, and the ability to adapt to the changes that will prove your efforts fruitful and help you retain an edge in the market.

In the end, business planning can indeed be a daunting task. As long as you ensure things are practical, realistic, and the plan is being implemented and reviewed regularly taking into account the change in business’ environments – your business should thrive.

This blog post is from: http://www.solimarinternational.com/resources-page/blog/item/164-5-common-mistakes-in-business-planning

StrategyStrategy planning & execution

Your Road Map to a Great Tourism Business Plan

Any great tourism business begins with a great “road map.” This road map serves as your business plan with actionable steps for moving forward with developing the enterprise. There are seven key components to your road map.

  1. Clear Concept- Before you can dive into the road map, the essential first step is to clearly articulate your enterprise concept. What is your enterprise? What do you do? What are you trying to achieve? What impact do you expect your enterprise to generate? Before you move further down the road map, be sure that you put some thought into these questions and can clearly define the concept of your tourism enterprise. Try to condense this concept into a simple one to two sentence pitch that clearly articulates your business concept.
  2. Market Analysis- Your market analysis includes the international, regional, and national tourism statistics and travel trends, the profiles of your target market segments, and a value chain/ industry analysis. Begin by getting an idea of the relevant tourism trends and statistics. What percentage of tourists coming to your destination region, country, or city are country nationals versus international visitors. When is the peak season that tourists come to visit? What are the typical demographics of visitors? Has the number of international tourists to your destination been increasing or decreasing? Addressing these questions will help you to better understand your market before moving forward.

From here, you can develop the profiles of your target market segments. Determine the nationality of your market, their wants and needs, their budget, etc. Think about whether your target traveler is seeking adventure and physical challenges, luxury and relaxation, or service and learning opportunities. Additionally, you will need to analyze the existing tourism industry in your destination. Especially if your enterprise will work with intermediaries; investigate the existence, success, and business models of tour operators, travel agents, and hotels; as they relative to your business concept to market or sell tourism products.

  1. Sales and Marketing Strategy- At this stage of your road map, it is important to determine strategic positioning in terms of the pricing, placement, and promotion strategies of your business. There are numerous factors, both short and long-term to consider for pricing including the value provided compared to that of competitors, the price the market is willing to pay, the revenue needed to enable the business to reach its financial goals, and profit maximization. Your placement, or distribution, may be conducted either through direct or indirect sales. Your promotion strategy will describe the sales and marketing techniques used to reach your target market and should include online and social media marketing.
  2. Competitive Analysis-Complete a summary of competing businesses and products, and determine your competitive advantage. Begin by defining your business competition- the people and businesses that offer similar products and services and seek the same markets. Research these competitors and assess their products or services on a number of factors, such as pricing, product quality, and customer service. Porter’s Five Forces Analysis is a useful tool to use for a through investigation of your competition. By assessing your business competition against your proposed enterprise, you will gain a better understanding of where your business stands and how best to leverage your strengths against your competition’s weaknesses. To determine your competitive advantage, simply outline the major advantages that your enterprise holds over the competition.
  3. Operations and Training Plan-Consider your business structure and the key personnel and training needs that will be required to support it, while also keeping in mind any legal considerations. Will your enterprise be a private company, a partnership, a limited liability corporation (LLC), a cooperative, a non-profit organization, or an association? There are pluses and minuses to each, and it is extremely important to think carefully to determine the best structure for your enterprise. Once the structure is determined, consider the number of employees needed and the roles and responsibilities of each. Consider the hierarchy of employees in your business and how profits will be shared.  Finally, the legal environment is key to consider; think about potential requirements like business registration, employee/membership agreements, permits, and insurance coverage.
  4. Community and Conservation Support- Consider sustainable tourism as a cornerstone to your business plan. Sustainable tourism has the potential to not only mitigate potentially harmful impacts of visitation to a site, but it can also support conservation of the resources upon which it depends. At Solimar, we employ a market-based approach that links jobs and revenue generated by sustainable tourism to support conservation of the resources upon which the tourism depends. To develop a sustainability plan, begin by assessing the conservation threats related to your tourism enterprise. Once these threats have been assessed, you can choose tourism conservation strategies that address those threats, such as an environmental education program or a trail monitoring and research program. Lastly, be sure to budget for the implementation of your sustainability plan, including salaries, equipment, materials, and trainings.
  5. Key Milestones and Workplan- Lastly, now that your business plan has been fully considered, you can create a timeline of the major activities related to the establishment of your enterprise and its tour products and services. Create a comprehensive list of the milestones to be completed for the successful establishment of your business and determine the order in which they shall be addressed. With each milestone completed, you are one step closer to being the proud founder of a great tourism business!

This blog post is from www.solimarinternational.com/resources-page/blog/item/163-your-road-map-to-a-great-tourism-business-plan

 

Business model innovationCollaborative business modelsInnovationMarketing 3.0Strategy

The innovation challenge in destinations

Research and innovation will have a fundamental role in the competitive improvement of destinations. Any policy for the destination development has to include a vision and an innovative orientation that brings some sort of competitive advantage.

In the Spanish economy, the tourism industry has proved to be one of the most dynamic sectors, which generates multiplying effects in the local economies in all sub-sectors directly and indirectly related to tourism. This multiplying effect together with the sector’s evolution worldwide has contributed decisively to increase competition, which in turn makes the industry develop strategies oriented towards the improvement of its competitiveness.

The new market after the changes in the offer and demand, requires tailored services and activities, with high quality standards, which makes attaining customer satisfaction more difficult than ever before. In this regard, tourism offer has to be organized according to the targeted market segments requirements in order to be successful. Unlike in past times, market penetration, promotion, price setting, product quality and quantity are variables defined by the demand and not by the offer, for it is necessary that the service and activity production in the tourism sector takes into consideration this new scenario, and so new destination models restructuring the links and relationships between stakeholders are being developed.

In any case, research and innovation will have a fundamental role in the destination’s competitiveness improvement. Any action for the successful development of the destination has to include a vision and an innovative orientation that can generate some kind of competitive advantage. The main challenges to foster competitiveness in destinations are the following:

Innovate in mechanisms and cooperation formulas and strategic partnerships. It is basic to develop mechanisms that work both from the public and the private scope, to boost new cooperation models between businesses and public-private partnership, as a way to gain profitability, dimension and commitment in the development of the tourist sector.

Innovate to improve the sector’s competitiveness. There should be techniques and strategies to improve the business and the destination’s competitiveness. This includes the development of Innovation Plans for the improvement of business models, management models, service processes and the destination’s business marketing.

Innovate for the introduction of new tourism products and consolidating the profitability of the current ones. It will be necessary to foster the creation of unique tourism products based on new business models, build upon the capacities and unique resources of the destination, with a high experiential value, using the ICT and being socially and environmentally friendly.

Leverage the resources and hidden heritage. It is crucial to develop new formulas for leveraging tourism resources that are complementary to the traditional ones, unknown or unexploited, so as to achieve the profitable consolidation so long as they create an outstanding experience and expand the revenue streams.

Innovate in destination’s promotion and communication formulas. There is nowadays a communicational saturation, which makes it necessary to face the future with promotion innovative mechanisms which allow optimization of the destination’s visibility.

Innovate in tourism product marketing. There will have to be developed new methods and tools to market tourism products, in order to favor the sector’s competitive improvement and control the dependence on external channels, in a way that guarantees some influence power. In this context, it is fundamental to develop strategies to improve the intelligence and the knowledge of the products and its results, and the client and its consuming habits.

Innovate in client relationship formulas. The strategy will have to develop new client management formulas. Starting up innovative mechanisms to do CRM is vitally important not only to retain clients, but also to achieve a more effective marketing.

This blogpost is from http://www.visionesdelturismo.es/innovacion-de-los-destinos-turisticos/

StrategyStrategy planning & execution

How cluster development applies to mature destinations

Most of the aforementioned challenges faced by mature destinations may be solved, at least partly, through an adequate cluster development strategy. Furthermore, cluster development strategies may have many other benefits for the destination. The following strategies summarize most of the approaches to cluster based developments in destinations:

New cluster development. Many destinations use undeveloped areas without any relevant resource, to build new tourism infrastructures which all together are to create a new tourism cluster. This is usually related to Theme Parks, Congress & Convention facilities or other modern buildings hosting all kinds of entertainment experiences. This is the case of the “Arts and Sciences City” in Valencia, an outstanding collection of innovative architecture facilities designed by the architect Santiago Calatrava encompassing an Opera House, a Science Museum, an Imax Cinema, an Aquarium and a Venue for various types of events.

Reconverting or relaunching existing clusters. Some destinations have unexploited natural or cultural resources, which are not leveraged as tourism attractions namely due to lack of vision or imagination. These type of developments should always be a priority, so long as they enhance the identity and uniqueness of the destination. This is the case of Shanghai’s Xintiandi and Tianzifang, two areas within the downtown’s French district with old houses and unique atmospheres, which have been reconverted as charming shopping and entertainment clusters, with many types of stores and restaurants.

Re-clustering the destination. Some destinations are perceived rather as homogeneous, or they do not have a defined characterization throughout its areas. However, the reality is that in most cases there are some distinct features in the different areas that may be leveraged to build a cluster identity. In this case, the cluster development strategy consists of enhancing and marketing the differentiated character of each cluster, providing a sense of variety to the visitor. This is what some Ski resorts do, “Theme-Parking” themselves to some extent, with distinct urban aesthetics, music, etc. to build a different atmosphere in every zone.

Cluster enhancement. As it is explained in the Whitepaper “Competitiveness Planning 3.0”, clusters should be reference units when assessing the destination’s competitiveness, and also when planning competitiveness programs. So long as each cluster may be considered as a sub-destination, with its own strengths and weaknesses, every cluster should follow its own development in accordance with its intended identity, adding more value, reducing risks and discomforts and marketing itself according to its distinct value proposition. This is the very minimum that a mature destination should do to not pass from maturity to decadence.

Based on these standard strategies, cluster development may contribute to solve some of the aforementioned challenges that are usual in mature destinations, so long as they are combined with the appropriate competitiveness programs and marketing strategies and activities. All tourism development strategies are interrelated, and so they need to be coherently weaved to be successfully implemented.

Do you think of other cluster development based strategies?

StrategyStrategy planning & executionSustainability

Clustering strategy for mature destinations

Destinations operating since decades ago reach a stage of maturity sooner or later, in which they stop growing and lose the strength and vibrancy that made them grow. At this point, depending on the conditions of the environment and will of the local inhabitants, many destinations prefer to manage this situation without growing anymore, so long as they are not willing to receive more tourists or they don’t want to extend the destination’s urban area with accommodation facilities or second residences, and keep the destination as it is to preserve its original charm, and avoid the risk of spoiling it with tourism overflows.

Other destinations, however, due to the need or will for the tourism business growth, try to find other solutions to satisfy a higher demand trying not to spoil the charm that attracts the tourism flows. Further, these destinations face many challenges such as:

  • Congestion issues in the most popular areas
  • Difficult conviviality between locals and tourists
  • Excessive dominance of tourism related businesses in residential areas
  • Lack of infrastructure renovation, which may give an image of decadence
  • Tourism expenditure stagnation
  • Seasonality stagnation due to incapacity to overcome seasonal occupancy gaps
  • Poor branding, lost reputation, low brand awareness, lack of well-defined identity, etc.
  • Lack of new tourism businesses creation

These and many other issues may be resolved through adequate tourism development planning, in which a good cluster development strategy is to have a key role in overcoming them successfully.

Which other issues affect mature destinations?

StrategyStrategy planning & execution

How do Theme Park clusters develop?

The case of Theme Park clusters is probably the most different from all other types of tourism clusters, as they have little or no relationship with natural or cultural resources, and so their development is rather similar to other industries’ clusters. They have unique dynamics and therefore require a separated analysis. Both the key success factors and the development stages of Theme Park clusters are hereby explained and illustrated through a few well known case studies.

Beyond the traditional Amusement Parks, usually targeting the local markets, Theme Parks were created to become a destination themselves, offering a more or less unique value proposition, bringing the visitor to an imaginary world or to somewhere far away, either in terms of distance or time, like those reproducing ancient civilisations. The experience of immersion within another world is what set Theme Parks apart from Amusement Parks, even if they have many attractions in common. Then, however, the ability to recreate a different world to make it also entertaining for visitors is something that few operators have.

Walt Disney was in fact the first company to leverage the imaginary world of their film stories to develop Theme Parks. Then, other film producers such as Universal Studios followed their example by leveraging their own story worlds, also in many locations worldwide. Apart from them, there have been other Theme Parks based on toy brands such as Lego, comic series such as Asterix, Smurfs or Tintin, and car brands such as Ferrari.

When analyzing the internationally competitive clusters, there may be found many things in common, related to their cluster development key success factors and phases. In this regard, there are four key success factors for the development of Theme Park clusters, of which at least three should be well accomplished:

  • Internationally competitive destination with important tourism flows and accommodation capacity, usually a city.
  • Good accessibility to the main targeted markets
  • Location with good weather conditions all year round.
  • Internationally reputable Theme Park brand (at least one).

Beyond these key success factors, there are about four typical phases in the Theme Park cluster development process:

  1. The base for the cluster development is an attractive location and compliance of at least two of the aforementioned key success factors.
  2. Development of a Theme Park
  3. Good results stimulate expansion with new facilities. These may be themed hotels, Water amusement parks, new attractions, facilities to offer new products such as MICE or Golf.
  4. New smaller Theme Parks settle down in the area to take advantage of the increasing tourism flows in the cluster.

In the Whitepaper on Clustering Strategy you may find several case studies that illustrate this theoretical approach.

Do you think of other key success factors for Theme Park clusters development?

StrategyStrategy planning & executionTourism marketing

Clustering benefits for marketing

So long as every type of environment is more or less adequate for certain types of activities, the correct matching between the location and the activities developed is a key factor for competitiveness and also for effective marketing, as it helps to build a cluster’s consistent identity, enhancing the character of the experience and also helping the tourists to envision what kind of feelings they are likely to experience.

Closely related to competitiveness and productivity, business concentration may also accelerate innovation in product development and process efficiency. Having a pool of competitors in the same geographical area facilitates benchmarking and stimulates innovation, so long as proximity leads to constant comparison and competition.

Furthermore, attractions concentration in a cluster makes it possible to design more attractive packages in the travel market, as well as to attract more transport operators –namely flights and bus regular lines-, which eventually open new markets. Competitive clusters attract also internationally branded operators –like reputable hotel chains-, which eventually contribute to the reputation and attractiveness of the cluster.

Other marketing benefits may come from the cooperation in marketing activities by the cluster’s operators. This includes market intelligence collection and management through a local “Tourism Observatory”, but also from sharing efforts and information for the cluster’s marketing planning, and operational marketing activities.

Through cluster based collaboration, all these benefits can be enhanced, due to the multiplier effects of more productivity, innovation and business growth in a cluster influences many other industries within the region.

Do you think of other clustering benefits for marketing?