Lesson 6: Components of Destination Planning
Completion requirements
Unit 2
Destination Planning
Lesson 6: Components of Destination Planning
"A clear vision, backed by definite plans, gives you a tremendous feeling of confidence and personal power." ~ Brian Tracy
A Tourism Plan is a blueprint that guides and focusses the local tourism industry, community, and government.
Creating a tourism destination plan is not a one-person job. In fact, it requires a team effort with help from the tourism industry professionals, economic advisors, and government officials.
First, the businesses define their goals. Why do they want to increase tourism? What makes this place unique and valuable for tourists? What kind of tourists do they want to attract? Where will the tourists go? What profit, number of visitors, and number of jobs are expected? All of these questions need to be answered during the planning stage.
The tourism business plan has many components, however, we will focus on five specific areas:
- Market Plan
- Site Assessment
- Financial Plan
- Environmental Plan
- Social Impact Plan
More information about each of these areas is linked at the right. Click on the + icons to expand the cell.
A marketing plan needs to include a description of all products and services to be offered and an analysis of the market, trends, competition, and identification of the target markets. It should also highlight the sales and promotional
strategies.
Market research will gather, record, and analyze data about potential problems and opportunities which in turn, will help to formulate the marketing plan decisions. This will help give a clear understanding of the proposed product experience, potential customers, and the business environment.
Market research will gather, record, and analyze data about potential problems and opportunities which in turn, will help to formulate the marketing plan decisions. This will help give a clear understanding of the proposed product experience, potential customers, and the business environment.
Potential tourism sites should be considered to understand how they will best enhance the local community and culture, the economic benefits, and the effect on society while at the same time minimizing negative impact. This might be done
by direct observation, mapping, oral interviews, questionnaires, focus, or discussion groups.
Areas to include within site assessment are:
Areas to include within site assessment are:
- Visitor experience
- Cultural, religious, and natural preservation
- Community and economic development
- Education and awareness
The purpose of a financial plan is to establish financial projections for the construction phase as well as establishing a financial plan for the operational phase of the tourism business.
A financial plan needs to include projected income statements, cash flow statements, and balance sheets that provide detailed monthly operating forecasts for the first year of operation and annual forecasts for the next two or three years. The plan should also include an opening balance sheet and statement of construction, start-up costs, and sources of financing. A discussion of debt and equity financing sources and their corresponding ratio analysis are also required. If the business is privately owned, they may also include personal net worth statements for the shareholders.
A financial plan needs to include projected income statements, cash flow statements, and balance sheets that provide detailed monthly operating forecasts for the first year of operation and annual forecasts for the next two or three years. The plan should also include an opening balance sheet and statement of construction, start-up costs, and sources of financing. A discussion of debt and equity financing sources and their corresponding ratio analysis are also required. If the business is privately owned, they may also include personal net worth statements for the shareholders.
Part of the planning components needs to include the business environmental position. An outline must be created to address social and environmental obligations in the areas such as volunteerism, recycling, and alternative energy sources.
Savings in energy consumption, water use, and waste handling can also amount to thousands of dollars annually. Developing and implementing a successful green plan can help the environment as well as have a very positive effect on the
business' financial bottom line.
An important aspect must include the sustainability of the local environment foThe transitionm health with the least amount of damage to the environment. With a focus on the environment, how we protect it and our social obligations in a community, a green plan for tourism businesses makes good sense. A successful green plan will identify and evaluate opportunities to improve the operation's green performance.
An important aspect must include the sustainability of the local environment foThe transitionm health with the least amount of damage to the environment. With a focus on the environment, how we protect it and our social obligations in a community, a green plan for tourism businesses makes good sense. A successful green plan will identify and evaluate opportunities to improve the operation's green performance.
Tourism offerings depend greatly on environmental and cultural resources. As the tourism industry typically offers resource-based activities that constantly interact with the natural systems, tourism has to ability to initiate significant changes in the surrounding physical environment.
Potential negative tourism impacts that must be considered during the planning stage include:
Potential negative tourism impacts that must be considered during the planning stage include:
- The transition of traditional lifestyle to modernism
- Deterioration of local identity and value system through the meeting of different cultures
- Loss of traditional economies in favour of tourism-related economy
- Potential displacement of local residents in favour of tourism development
- Loss of authenticity of local arts and crafts
- Increased crime
- Low paying jobs
