The Management of Tourism Destination Pertemuan 9-10 Matakuliah: G1174/Tourism Management and Planning Tahun: 2007

Bina Nusantara Topics The significant of management and their application in tourism destination The role of management to cater the need of tourists

Bina Nusantara Objectives 1. To explain the principles of management in tourism destination 2. To demonstrate the application of management in tourism destination

Bina Nusantara Managing tourism busines: Key principles Tourism management involves harnessing the power over resource (6’s M – man, money, machine, method, material, market) and the organisation to bring some degree of order to the tasks that must be undertaken to function and achieve its objectives.

Bina Nusantara The purpose of management in tourism Profitability, which can be achieved through higher output, better services, attracting new tourists, and cost minimalisation Raising public awareness and undertaking activities for the wider public good Efficiency, to reduce expenditure and inputs to a minimun to achieve more cost- effective outputs Effectiveness, achieving the desired outcome, not necessarily a profit-driven.

Bina Nusantara What to be managed? The heterogenity (ie. Diversity), perishability (ie. A tour cannot be stored and sold at a different time) and intangibility of tourism services make management a challenge.

Bina Nusantara Key problems in tourism management 1. The tourists must travel to the product to consume it 2. The operator has little influence over the tourism activities (holiday)

Bina Nusantara Management Function and Area Management function: – Planning – Organising, Actuating and Directing – Controlling and Evaluation Management area – Marketing – Operation – Human resources – Financial

Bina Nusantara Tourism Planning Approach 1. Continuous, incremental and flexible approach 2. System approach 3. Comprehensive or (holistic approach 4. Environment and sustainable development approach 5. Community approach 6. Implementable approach 7. Application of a systematic planning approach 8.Co-operative approach

Bina Nusantara Organising In organising, destination are classified based on – Form and type of destination – Function of destination: primary and secondary – Parameter: conservation and satisfaction – Management system: supporting and development effort Classification of destination management – Class A: highly potential – Class B: medium – Class C: adequate

Bina Nusantara Form of destination organisation Government - owned and managed by government ie. National Park, Heritage building, etc. Private –owned and managed by private ie. Theme park, Leisure centre, etc. Collaboration between government and private ie. Resort, etc. The public, act as stakeholder of the destination, ie. Community based tourism, ect.

Bina Nusantara Controlling and Evaluating One way of controlling and evaluating the tourism management is by assessing the tourism impact in the destination. Tourism is widely knows as a major agent of changes in economic, environment and socio-culture, either positively or negatively, Some are controllable but some can not, still all effects can be evaluated and preventive action can be taken.

Bina Nusantara Marketing tourism as a management function The focus of marketing belies on the fact that tourism consumption is based upon the provision of services. The marketing acts as link between visitors with the suppliers.

Bina Nusantara Managing operational issues in tourism The focus of operational issues belies on the adequacy of facilities and services. It focuses on interrelated areas: – Capacity – Standards – Scheduling – Inventory, and – Control

Bina Nusantara Managing human resource and service delivery In tourism, visitors purchase the skills, service and commitment of a range of human contributors to the experience that they are about to embark upon. The challenge facing the tourism destination will only be met successfully by a well-educated, well-trained, bright, energetic, multi-lingual and entrepreneurial workforce who understand the nature of tourism and have a professional training.

Bina Nusantara Managing financial issues Tourism exist from the interaction, trade and exchange goods, services and knowledge to create wealth or other output. Benefit (in terms of profit) is the main driver of many businesses. Tourism should be profitable but not over-exposed which lead to degradation.

Bina Nusantara Conclusion Managing tourism is a dynamic activity. Changes and more changes or even disruption is a challenge of managing a fast-charging business. All management function in all area of management are interrelated to achieve the objectives, both from visitors’ and community’s perspectives.