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Chapter 18 Destination Marketing The Globalization of the Tourist Industry

Chapter 18 Destination Marketing The Globalization of the Tourist Industry. 625 million tourists traveled internationally in 1998 These tourists spent over $444 billion Tourism accounts for 8% of total world exports Tourism employs more people than any single industrial sector

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Chapter 18 Destination Marketing The Globalization of the Tourist Industry

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  1. Chapter 18Destination Marketing The Globalization of the Tourist Industry • 625 million tourists traveled internationally in 1998 • These tourists spent over $444 billion • Tourism accounts for 8% of total world exports • Tourism employs more people than any single industrial sector • Tourism has infrastructure (lodging, transportation, and restaurants) investment estimated to exceed $3 trillion. Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

  2. The Tourism Destination • Destinations are places with some form of actual or perceived boundary • such as the physical boundary of an island • political boundaries • Macro destinations such as the United States contain thousands of micro destinations • including regions • states • cities • towns Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

  3. Benefits of Tourism • Direct employment in hotels, restaurants, retail establishments, and transportation • Support industries and professions • Multiplier effect as tourist expenditures are recycled through the local economy • Tourism helps shift the tax burden to nonresidents Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

  4. Management of the Tourist Destination • Destinations that fail to maintain the necessary infrastructure or build inappropriate infrastructure run significant risks • A destination’s attractiveness can be diminished by • violence • political instability • natural catastrophe • adverse environmental factors • overcrowding Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

  5. Sustainable Tourism Sustainable tourism is a concept of tourism management that anticipates and prevents problems that occur when carrying capacity is exceeded Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

  6. Environmental Impact Assessment (EIA) • Inventory the social, political, physical, and economic environments • Project trends • Set goals and objectives • Examine alternatives to reach goals • Select preferred alternatives • Develop implementation strategy • Implement • Evaluate Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

  7. Tourism Strategies and Investments Fierce Competition • Rediscovery of a destination’s past • Shorter vacations, or long weekends Investment in Tourist Attractions: Tourism investment ranges from relatively low cost market entry for festivals or events, to multimillion-dollar infrastructure costs of stadiums, transit systems, airports, and convention centers. • Destinations must respond to travel basics of cost, convenience, and timeliness. Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

  8. Psychological Determinants of Demand Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

  9. Identifying Target Markets • Collect information about current visitors • Audit the destination’s attractions and select segments • Conduct research to determine where these tourists are found Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

  10. Classification of Visitor Segments Roles and Status Group inclusive tour (GIT) Roles and Status Independent traveler (IT) Individual mass tourists Explorers Allocentrics Drifters Psychocentrics Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

  11. Figure 18-1 Plog’s categorization of destinations Source:Plog, “Why destinations rise and fall in popularity,” Cornell Hotel and Restaurant Administration Quarterly, 14(4), p.58 copyright 1974 by Cornell University. Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

  12. Communicating with the Tourist Market • Image Making • Developing packages of attractions and amenities • National Tourist Organizations (NTAS) • Outside the United States, this agency is often run by the central government, state, or province, together with local government officials. Marketing for Hospitality and Tourism, 3e ©2003 Pearson Education, Inc. Philip Kotler, John Bowen, James Makens Upper Saddle River, NJ 07458

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