Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice.

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Foreword: Destination Marketing “Marketing should focus on market creation, not market sharing” - Regis McKenna “To be wise, a man should read ten thousand books and travel ten thousand miles.” - Li Bai, Chinese poet, Tang Dynasty

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Discuss the benefits of tourism. After reading this chapter, you should be able to: OBJECTIVES Explain tourism strategies and different option for creating and investing in tourism attractions. Understand how to segment and identify visitor segments. Explain how central tourist agencies are organized.

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Best known as a football team in the National Football League (NFL), the Carolina Panthers is also an important member of the hospitality & tourism industry in Charlotte and the Carolinas. –the name Carolina Panthers was chosen to demonstrate that this team serves two states Unlike most teams that use municipal stadiums, the Panther’s owner, former Baltimore Colts player Jerry Richardson, owns the 73,504-seat stadium. –private ownership permitted product line planning for the entire stadium The Carolina Panthers Destination Marketing tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 The stadium was built in downtown Charlotte on property that had badly deteriorated and in need of urban revitalization. Huge lifelike statues of black panthers, with emerald green eyes, beautiful landscaping, nearby parking, and a Panther’s pro shop, serve as attractions for off-season visitors. While ticket sales represent the most important product, other lines were carefully planned to increase revenue & enhance the excitement and image of the team. The Carolina Panthers Destination Marketing tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 The stadium was planned to permit great views of the playing field from all seats from each of the three areas: –lower Level (less expensive) –middle Level (club level) –third Level (luxury suites). Jerry Richardson’s personal suite is not on the 50-yard line but directly behind the goalposts, –a position often thought of as “cheap” seating The Carolina Panthers Destination Marketing tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Prior to opening the stadium, “Personal Seat Licenses” (PSLs) were sold to fans, and all seats were sold out by opening day. –a PSL is not a game ticket — it allows fans to buy tickets A PSL may be sold or passed on to heirs. Originally PSLs sold for $1,500 to $3,000 but by 2007 had appreciated to $5,000 to $10,000. Luxury boxes facing the playing field surround level three of the stadium, and include a mix from private corporate suites to shared suites in which tables for four are leased by individuals or companies. The Carolina Panthers Destination Marketing tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 All suites receive first-class food and beverage attention with food prepared by four full-time chefs in ultramodern stainless-steel kitchens in the stadium. The interior portion of level three was planned as six separate dual-purpose areas, and on nongame days is use by sales meetings, reunions, and many other group functions such as high school proms. The six club areas have permanent bars for serving alcohol beverages, televisions & drop-down screens, stage areas, and wait-staff service. The Carolina Panthers Destination Marketing tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Signage is also a product line, and advertising rights are sold beginning with the name Bank of America Stadium and continuing with signage throughout. Richardson knew signage is an important product line but demanded it be provided in a noncluttered, sophisticated manner that would not offend fans & would also provide great exposure for advertisers. –no field-level signage exists at this stadium, which means that available signage is relatively expensive The Carolina Panthers Destination Marketing tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 The success of product lines is not accidental, and a professional sales team is needed to ensure success. –a five-person team is employed full time to sell the many Panthers products to corporate clients Careful attention to details in the planning and management of the complete product line of the Carolina Panthers created a unique hospitality and tourism attraction for Charlotte and the Carolinas. The Carolina Panthers Destination Marketing tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 The British Tourist Authority’s definition of tourism: –“a stay of one or more nights away from home for holidays, visitors to friends or relatives, business conferences or any other purpose except such things as boarding education or semi-permanent employment.” The world has become a global community, opening places unimaginable decades earlier, and travel is a global business with an expanding market. The world tourism industry has market leaders, but the top-ten destinations in the world accounted for only half the total tourism market in 2006. Introduction The Globalization of the Tourist Industry tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 The Top Ten The Globalization of the Tourist Industry tab Table 17-1 The World’s Top Tourism Destinations (International Tourist Arrivals)

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Market entry in tourism is open, & new destinations can acquire market share and the economic and social benefits of tourism. Successful destination planning & marketing can bring hundreds of millions and even billions of dollars in revenue to destinations. New supportive industries, jobs can be created, standards of living increased, and the interchange of cultures assists the quest for world peace. Destination marketing is a career worthy of college and university graduates. Destination Planning & Marketing The Globalization of the Tourist Industry tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Tourists travel to destinations, places with some form of actual or perceived boundary, such as physical boundary of an island, political boundaries, or even market-created boundaries A commonly packaged tour of Central America includes only two or three nations, such as Costa Rica, Guatemala, and Panama. –others are excluded for political instability or infrastructure While Australia & New Zealand are often packaged together for the North American visitor, Australia has worked hard to make it a single destination. Introduction Importance of Tourism to a Destination’s Economy tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Desire to become a recognized destination presents a difficult marketing challenge. Macrodestinations such as the United States contain thousands of microdestinations, including regions, states, cities, towns, and even visitor destinations within a town. Thousands of visitors fly to Orlando and proceed directly to Disney World, where most or all of their vacation is spent. –these tourists do not view Florida or Orlando as their destinations, but rather Disney World Becoming a Recognized Destination Importance of Tourism to a Destination’s Economy tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Tourism’s most visible benefit is direct employment in hotels, restaurants, retail establishments, and transportation. Second, less visible benefits are support industries and professions many of which pay considerably more than the visible employment opportunities The third benefit is the multiplier effect as tourist expenditures cycle through the local economy. Tourism’s fourth benefit is state and local revenues derived from taxes on tourism, and helps shift the tax burden to nonresidents. Benefits of Tourism Importance of Tourism to a Destination’s Economy tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Tourism also yields a fifth benefit, the export of locally made products. Estimates of visitor spending on gifts, clothing & souvenirs are in the range of 15 to 20% of total expenditures. Many tourist destinations provide government- supported market areas for the sale of locally produced handicrafts. –an income source to local producers and an interesting and sought-after shopping experience for visitors Benefits of Tourism Importance of Tourism to a Destination’s Economy tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Due to location, climate, limited resources, size, and cultural heritage, some places have few economic choices other than to participate in tourism. Destinations may not welcome tourists uniformly, and some engage in tourism with mixed emotions and, at times, ambivalence. This is becoming a serious issue in many parts of the US, particularly the West. –Colorado voted against using of tax revenues for tourism –residents many small communities are increasingly opposed to the use of tax receipts for tourism promotion Benefits of Tourism Importance of Tourism to a Destination’s Economy tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Destinations that fail to maintain the necessary infrastructure or build inappropriate infrastructure face significant risks. –Italy’s Adriatic coast has been devastated by publicity of brown algae growth making swimming almost impossible –some of Africa’s game parks are being turned into dust bowls by tourists in four-wheel-drive vehicles A destination’s attractiveness can be diminished by violence, political instability, natural catastrophe, adverse environmental factors, and overcrowding. –the 9/11 attacks created fear of travel to the US Management of the Tourist Destination Importance of Tourism to a Destination’s Economy tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Destination marketing is an integral part of developing and retaining a location’s popularity. Too often, planners focus only on destination developments without attention to retaining and preserving attributes that attracted travelers to the destination in the first place. Several locations have been identified as suffering from a lack of destination maintenance. –Pattaya, Thailand; Bali, Indonesia; Huatulco, Mexico. –North American destinations are also experiencing visitor overuse, including the Sedona, Arizona, area Management of the Tourist Destination Importance of Tourism to a Destination’s Economy tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 A theory offered by futurist August St. John argues that a resort destination will experience a life cycle similar to the product life cycle. –and eventually go into decline, or the destruction stage Tourism managers must manage their products and make sure that during the growth stage the foundation is built for an infrastructure that will support future tourism demands. In some cases, sustaining tourism in the mature stage may mean limiting the amount of tourists to a number that the infrastructure can handle. Management of the Tourist Destination Importance of Tourism to a Destination’s Economy tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Tourist development must balance temptation to maximize tourist dollars with preservation of the natural tourist attractions and the quality of life for local residents. –those destinations that do not manage their product may have a short life Tourist destinations that build solid infrastructures can look for increased business by expanding from a seasonal product to a multiseasonal product or by expanding the geographic base of their product. Management of the Tourist Destination Importance of Tourism to a Destination’s Economy tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Tourism planners need to take into account the capacity of a location’s environment to support all [of the area’s residents, not just tourists]. –without such planning, a destination can be damaged to the point that travelers will stay away Sustainable tourism can mean giving up current revenues from tourism by limiting capacity to ensure a demand for tourism in the future. Sustainable tourism is a concept of tourism management that anticipates & prevents problems that occur when carrying capacity is exceeded. Sustainable Tourism Importance of Tourism to a Destination’s Economy tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 –inventory the social, political, physical, and economic environment –project trends –set goals and objectives –examine alternatives to reach goals –select preferred alternatives –develop implementation strategy –implement –evaluate Sustainable Tourism - Carrying Capacity Importance of Tourism to a Destination’s Economy tab Carrying capacity is determined by an environmental impact assessment (EIA), typically with these steps:

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Ecotourism is one of the fastest growing niche markets in the travel industry & generally viewed as representing sustainable tourism. It occurs only when government & private industry cooperate in planning and strict enforcement of regulations and laws. Modified Environments are ecotourism subsets, such as resorts, ski lodges, golf courses, and city centers that have developed habitats on their grounds that encourage wildlife. –Peregrine falcons have learned to thrive in US cities Sustainable Tourism - Ecotourism Importance of Tourism to a Destination’s Economy tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Rather than manicured lawns & plants with no food value to animals, some resorts are encouraging natural areas, nesting sites, and artificial reefs. –guests are usually thrilled to see wildlife on the grounds Admittedly, problems can occur as deer populations explode or dangerous predators from poisonous snakes to crocodiles & cougars find the grounds to their liking. Sustainable Tourism - Ecotourism Importance of Tourism to a Destination’s Economy tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Many communities that directly depend on tourism fail to coordinate important sectors of the economy. Estes Park, Colorado, offers an example: –retirees and other residents are upset by tourism traffic –residents want a rustic mountain getaway with modern conveniences, provided through tourism-based revenue Communities with these divisions face continuous discord among important constituencies. –successful long-run tourism destinations require cooperation in planning among constituencies Industry and Community Cooperation Importance of Tourism to a Destination’s Economy tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Many adjustments lie ahead for hospitality providers and their guests, as the number of concerns about global warming and demand for carbon-neutral vacations increases. –the challenge is already difficult at some luxurious resorts with plentiful energy-intensive amenities Because leisure travel is emotional & discretionary, guests have come to expect amenities and services without questioning the environment. The emphasis on CO 2 emissions will not be popular or acceptable to all guests. Carbon-Neutral Vacations Importance of Tourism to a Destination’s Economy tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Some guest privileges formerly taken for granted and now being questioned. Carbon-Neutral Vacations Importance of Tourism to a Destination’s Economy tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Tourist competition is fierce amid a growing and constantly changing tourist market, where, in addition to strong tourist destinations, declining places upgrade, and new places appear. There are countless examples of destinations rediscovering their past, capitalizing on the birthplace of a famous person, an event, battle, or other “hidden gems.” Some destinations are not likely to be international tourist destinations, but can be effective tourist products in the regional tourism market. Introduction Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 See this feature on page 509 of your textbook. tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 With the current US trend toward shorter but more frequent vacations, many places within two hundred miles or so of major metropolitan areas have found new opportunities to access the tourist market. –tourism bureaus tout the theme, “Stay Close to Home” –Louisiana’s Office of Tourism spent $6 million promoting a summer travel bargain program to a 500-mile market Cities are also creating tourist attractions. –Darling Harbour in Sydney is a major tourist attraction –in the Dallas metroplex a trail system is being developed for & horseback riding along the Trinity River Close to Home Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Like other consumers, tourists weigh costs against benefits of specific destinations, and investment of time, effort & resources against reasonable return in education, experience, fun, relaxation & memories. –destinations must respond to the travel basics of cost, convenience, and timeliness Convenience includes travel time from airport to lodging, language barriers, cleanliness and sanitary concerns, access to amenities, and special needs. Timeliness means risk factors like political instability civil disturbances, currency fluctuations, safety, etc. Cost versus Benefit Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Events & attractions are the primary strategies used by tourist destinations to attract visitors, and may be offered by nearly every community despite size. –Pukwana, SD, pop. 287, features a Turkey Trot and lawn mower race & both have received national publicity –the annual Sturgis Motorcycle Rally attracts hundreds of thousands of visitors this South Dakota town of 6,442 Organizations commonly responsible for tourism usually have responsibility for planning & organizing events designed to bring visitors to the community. Events Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Many times, local organizations plan annual events designed for the enjoyment of community members. –sponsors often expect financial assistance from tourism funds, but these events may attract few outside visitors Local organizations may have worthy ideas for events to attract visitors and should be supported. –if tax-based support is provided, the organization must adhere to guidelines By law, government tourism funds generally must be spent on activities that bring outside visitors and monies to the community. Events Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 –adequate organization & experience to plan, organize, and market the event –a marketing plan, including a description of target markets –a quantitative objective for number of expected visitors –a method to derive a count or estimate of the number of visitors who attended the event Events Tourism Strategies and Investments tab Events vary in complexity & contribution to a community’s tourism base, and organizations planning such events must have these characteristics: Organizers may require payment to bring the event, or changes/improvements in infrastructure and services before agreeing to bring the event.

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 –the event must attract a minimum number of visitors –complement & enhance cultural nature of the community –should be replicable in future years, ideally annually –part-time paid workers should be from the community –events must avoid destruction of private/public properties –use services of local companies as much as possible –events should provide guests for local hotels if bed tax monies are used in their promotions –should allow/encourage participation by local residents Events Tourism Strategies and Investments tab Professional event planners within tourism agencies establish requirements for desirable events:

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Tourism planners should conduct an audit of the existing resources of their communities to determine opportunities for events. Beyond economic value, events help create an identity for a community. –urban newspapers & suburban weeklies often publish lists of events occurring within a day’s driving distance –state and local tourism offices do the same –nearly every European country now has a 900 number you can call in the US for event information Events Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Events attracting a desired market & harmonious with local culture can have beneficial results. –particularly if it regularly reoccurs over a period of years One-time events, or those requiring substantial capital investment for a community may not offer sufficient economic returns. A common reply by promoters is that public relations value of the event outweighs cost considerations. –carefully, objectively analyze this before acceptance Events must also be examined for cultural/societal impact they may have on the host community. Event Marketing Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Reprinted by permission of Elsevier Science, Inc., Juergen Gnoth and Syed Aziz Anwar, “New Zealand Bets on Event Tourism,” Cornell Hotel and Restaurant Administration Quarterly 41, no. 4 (2000): 82–83, © Cornell University. Event Planning - A Decision Framework Tourism Strategies and Investments tab What strategic factors relate to this event? What is the profile of visitors? What is the expenditure profile? What are the economic and social costs and benefits of the event? What is the event’s profile? See an expanded version of this feature on pages 511-512 of your textbook.

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Attractions may be natural such as Niagara Falls or manufactured such as The Shopping Areas of Buckingham Palace, Hong Kong, or the Vatican. Many nations have recognized the value of natural attractions & have created national or state parks to protect them. –the sheer numbers of visitors wishing to experience attractions threatens the ability to protect them Historic attractions such as the pyramids of Egypt and Mexico are also at risk with increased visitor numbers. Attractions Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Long-run success of tourism will depend on manufactured attractions to satisfy travel desire. New attractions are continuously needed, which requires tourism investment. 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. Regardless of cost, urban renewal planners seek to build tourism into their city’s revitalization. –Boston’s Quincy Market; New York’s Lincoln Center Attractions Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Ability to concentrate attractions, facilities, and services in a convenient, accessible location is essential to create a strong destination pull. Tourist expansion is highly dependent on public investments, woefully inadequate without private investment and market mechanisms to respond to changing consumer needs and wants. In centrally planned economies, governments control, plan, and direct tourist development. –tourism is necessary to earn hard currencies for trade & development and serves national purposes Attractions Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 –public authority is required to clear, develop, and write down land costs & make infrastructure investments –the destination must often subsidize or provide tax incentives for investment in hotels, transit, etc. –restoration is often carried out by nonprofits, like the National Historic Trust and the US Park Service Attractions Tourism Strategies and Investments tab Many nations promote private investment through joint ventures, foreign ownership, and time sharing for individual investors. Destination tourism in the US depends on public & private partnerships or joint developing in planning, financing, and implementation.

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Tourist destinations can become dated, tacky, and undesirable for contemporary travelers. –the Waikiki area on the island of Oahu fell victim to this The city made a major commitment to bring it back as a great destination, and as of mid-2007, $2 billion had been spent renovating Waikiki, with another $1 billion committed. Rejuvenating a destination requires cooperation of various government entities and several sectors of private enterprise. –including heavy involvement by the hospitality industry Rejuvenating a Destination Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 In much of the world, cities & towns have finally realized the tremendous value of their river, lake and ocean waterfronts. Many were used for warehouses, docks, power generation & heavy industry, and were ugly, dangerous, often polluted areas. Cities such from Los Angeles to Hamburg, Germany have discovered gold in redeveloping these areas. –for upscale housing, restaurants, hotels, shops, and even maritime commerce all within a relatively small area Waterfront Attractions Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 –they must expand public services. –they must promote tourism internally to citizens, retailers, restaurants, financial institutions, the public/private sectors –they must invest in recruiting, training, licensing, and monitoring tourist-related businesses and employees Investment - More than Money Tourism Strategies and Investments tab The development of areas such as waterfronts for multipurpose living is an extension of the natural attraction that cities have always held for travelers. –it should not be a surprise that people attract people Destinations find they must make more than financial or hospitality investments to attract tourists.

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 –casinos can take business from other venues –revenues from local residents often leave the area as profits for out-of-state corporations –casinos don’t provide the kind of societal benefits as a biotech firm, a hospital, a university or other enterprises –casinos foster societal problems like pathological gambling Casinos as Attractions Tourism Strategies and Investments tab States & municipalities look at jobs and tax revenues, and in 2006, commercial casinos employed 366,000 people, paid over $5 billion in direct gaming taxes. Many observers say this is not all good news, and that, among other things:

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Research has shown that casinos do not take business away from local restaurants and they do create jobs. A poorly planned casino can be a determent to the area whereas a properly planned one can be beneficial to the region. From a tourism perspective, and maximized benefits, gaming works best when it is part of several tourism attractions for the area, not the only attraction. –gaming funds can be a source to create tourist destinations –a casino can also serve as a catalyst to revitalize a tourist area fallen on hard times Casinos as Attractions Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Legalized gambling on American Indian reservations is called “The Native American Success Story.” –operations & businesses supporting provide 600,000 jobs, with revenues being estimated at $22.6 billion. Not all observers see them as healthy for the broader community & critics say they exist despite the fact states & neighboring areas haven’t legalized casinos. Because these locations are often remote rural communities, they attract the bored, lonely, and not wealthy, who become addicted to gambling, thus creating financial hardships for their families. Indian Gaming Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Many visitor destinations are in fact only stopover destinations for travelers on their way elsewhere. Singapore has more than twice the number of annual visitors than its population, but visitors stay less than 3 days and 21% are in transit or stopover guests. Cities at the edge of large metroplex areas such as Lewisville, Texas, north of Dallas, also serve as stopover destinations. –many visitors prefer to stop outside a metroplex at a convenient roadside motel rather than attempt to find lodging in the city center Stopover Tourism Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 –a growing percentage of retirees in many nations has vastly expanded the tourism business –increasing numbers of two-career couples has resulted in a trend toward shorter, more frequent vacations –business travel now includes mixed business & leisure Segmenting and Monitoring the Tourist Market Tourism Strategies and Investments tab A decision to spend disposable income on travel vs. furniture, a boat, or other purchase alternatives involves important psychological determinants. These determinants can be used as segmentation variables, along with demographics and lifestyles.

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 To capture the trend toward shorter vacations within driving distance of home, new local & regional tourist attractions have been growing –as have family-oriented resorts Foreign visitor travel is an increasingly important segment of the North American travel industry, since the decline of the US & Canadian dollars. Changing lifestyles & are a dynamic challenge for the tourism industry in light of demographic trends and income shifts. Segmenting and Monitoring the Tourist Market Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Tourism planners must consider how many tourists are desired, which segments to attract, and how to balance tourism with other industries. –choices will be constrained by climate, topography, resources, history, culture, and facilities Tourist marketers must know customers, their needs & wants, determine which target markets to serve, & decide appropriate products, services, and programs. –not every tourist is interested in a particular destination –instead of a shotgun approach, destinations must take a rifle approach and sharply define target markets Segmenting and Monitoring the Tourist Market Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 In an era in which most people in industrialized nations are urban or suburban dwellers, farm and ranch tourism has become increasingly important. –particularly true in many European nations, North America, and Australia/New Zealand –in a state known for skiing, agricultural activities boost Colorado’s tourism outside of winter months Over 20% of those surveyed took more than three agritourism trips each year. –tourists from outside Colorado reported spending an average of $860 per trip & in-state tourists, $368 Agritourism Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 As a result Russian willingness to allow tourists on their missions, there is now a travel agency, Space Adventures, specializing in space tourism. –in April 2001, Dennis Tito became the first space tourist when he paid $20 million to fly on the Soyuz taxi mission to the International Space Station A number of private companies have been formed to provide trips into space for tourists, including Virgin Galactic, formed by Sir Richard Branson, founder of Virgin Atlantic Airline. Space Tourism Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Space travelers will have to undergo elite cosmonaut training, in a vehicle named SS2, which will climb to 50,000 feet altitude under a mother ship. After release, the SS2 will free fall for a few seconds, fire its rockets, and accelerate into a vertical trajectory climb to 360,800 feet. Those aboard the SS2 will enjoy a thousand-mile horizon of the earth in zero gravity during a two- and-a-half hour flight. Space Tourism Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Potential tourists tired of traditional tourism opportunities are a huge, growing market for multi-day trekking (hiking). Hiking has a religious basis in pilgrimages to significant religious sites such as the Camino de Santiago de Campostela in northern Spain. –in 1990, the Cathedral registered 4,918 hikers (pilgrims), but today over 100,000 people are recorded each year Millions of pilgrims visit Hindu, Buddhist, Islamic, & other religious sites, and though most arrive by some form of modern transport, many prefer to walk. Multi-Day Hiking and Religious Pilgrimages Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Trails are available for special-interest hikers with cultural, scientific, religious, or gastronomical interests, such as wine tours. –some trails such as the Milford in New Zealand are so popular that visitor numbers are restricted Extended hikes are supported by tourism throughout the world as they disperse visitors, lessen negative aspects of tourism, and provide economic support to rural communities. –long, arduous treks will be completed in entirety by very few tourists, but many are likely to hike portions of the trails available Multi-Day Hiking and Religious Pilgrimages Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Thousands of individuals choose to spend vacations assisting others, particularly in underdeveloped nations, an activity called purpose-driven tourism. Many churches & synagogues sponsor work vacations for volunteers, to repair or build facilities, work in orphanages, teach children sports or games & assist many other ways. Nonaffiliated individuals also volunteer through groups such as Globe Aware, to “give back”. –and see their trip as a way to experience a country on a deeper level Volunteer Vacationing Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Medical tourism is a fast & lucrative segment of tourism, as people travel internationally to gain access to less expensive health care. In 2003 there were 350,000 medical tourists, six million by 2010, a number expected to grow to 16 million by the year 2017. In an effort to stay young, Baby Boomers are seeking cosmetic surgery & dental work, elective procedures not covered by insurance. –creating a booming business for these procedures in Mexico, Central America, Asia, and Eastern Europe Medical Tourism Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 International healthcare also provides access to experimental procedures or treatments prohibited by law in one’s home country. –such as experimental cancer treatments and treatments using stem cells Some insurance companies in North America are offering their customers, who qualify for healthcare, the option to have it done at an international location. –as an incentive, they will waive the deductable & co-pay, and provide airfare and lodging during & after treatment –they sell both the cost savings and the opportunity for a free vacation to their client Medical Tourism Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 A destination can identify target markets two ways. –one is to collect information about its current visitors The second approach is to audit the destination’s events & attractions and select segments that might logically have an interest in them. One cannot assume current visitors reflect all the potentially interested groups, as tourist segments are attracted by different features. After a destination identifies its natural target markets, planners should conduct research to determine where these tourists are found. Identifying Target Markets Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Analysis can uncover many or few natural target markets, and if many are identified, relative potential profit from each should be evaluated –if too few, investment may be needed in infrastructure and events & attractions Tourism marketers know even though an area may attract an activity-specific segment, there is great potential in providing reasons for others to come. –today, the top attraction in Las Vegas is shopping and entertainment, not gambling. Identifying Target Markets Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 While the historical concept of travel has been to go someplace for a purpose, it can be argued that for many contemporary pleasure travelers, the real destination is the vehicle of travel such as a cruise ship, river paddle ship, or a special railroad. These “moving destinations” offer a variety of events for passengers, and dining is particularly important, and pleasure of moving about in a special mode of travel is the primary travel purpose –upon reaching in-transit ports, not all passengers choose to leave a cruise ship Self-Contained Attraction and Event Destinations Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 See this feature on pages 523-524 of your textbook. tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Several classifications have been used to describe different visitor destination segments. –common classifications, based on if the tourist travels with a group or independently are group-inclusive tour (GIT) and independent traveler (IT) Classification of Visitor Segments Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 –Organized mass tourists. GIT. Little or no influence over the travel experience other than to purchase one package or another –Individual mass tourists. GIT. Somewhat more control over their itinerary. For instance, they may rent a car to visit attractions –Explorers. IT. They plan their own itineraries and make their own reservations –Drifters. IT. These people, the backpacker group, seldom, if ever, are found in a traditional hotel Classification of Visitor Segments Tourism Strategies and Investments tab Some classifications describing tourists by degree of institutionalization and impact on destinations:

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 –Visiting friends/relatives. VFR are people that stay in the homes of friends or relatives –Business travelers. Often any form of business including conventions, trade shows, job seeking & other reasons –Pleasure travel. An all-encompassing classification, which may be of limited use without further segmentation –Business and pleasure travelers. Many convention and business travelers plan to incorporate a period of relaxation prior to or after their business Classification of Visitor Segments Tourism Strategies and Investments tab Some classifications describing tourists by degree of institutionalization and impact on destinations:

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 –Tag-along visitors. The presence of tag-along children has created a sub-industry of child care & entertainment. –Grief travel. A segment more important as society ages. –Education and religious travel. Includes students, those on a pilgrimage & missionaries, and may be of limited use in tourism planning unless further segmented. –Pass-through tourists. Extremely important visitors to states such as Kansas and Nebraska and to cities in Texas that serve as convenient rest or overnight stopping areas. Classification of Visitor Segments Tourism Strategies and Investments tab Some classifications describing tourists by degree of institutionalization and impact on destinations:

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Another well-known tourist classification system is Plog’s categorization, with designations similar to the groups mentioned previously. –but ranged from psychocentric to allocentric Plog observed that destinations are first discovered by allocentrics (backpackers or explorers). As the natives discover the economic benefits of tourism, services & infrastructure are developed –allocentrics are turned off & find another unspoiled destination Classification of Visitor Segments - Plog Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Classification of Visitor Segments - Plog Tourism Strategies and Investments tab Figure 17-1 Plog’s categorization of destinations. The height of the curve indicates the number of travelers in each category. Reprinted by permission of Elsevier Science, Inc., “Why Destinations Rise and Fall in Popularity,” by Stanley C. Plog, Cornell Hotel and Restaurant Administration Quarterly, 14, no. 4, p. 58, ©1974 by Cornell University. The nature of visitors changes, with each new group somewhat less adventurous than the preceding group. Finally, a destination becomes so familiar the least adventurous group of psychocentrics finds it acceptable.

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 One job of a tourist organization is to increase the accessibility of a destination. Destinations need to closely monitor the relative popularity of their various attractions by determining the number and type of tourists attracted to each. Marketing information systems help identify and predict environmental trends that are responsible for these changes. Information should be collected on the changes in the wants of existing markets, emerging markets, and potential target markets. Monitoring the Tourist Markets Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Tourist organizations need information to stay competitive, and tourist products must change to meet the needs of the changing market. Emerging markets must be identified and served. New markets that can be served by the existing tourist product must be identified. Tourist organizations trying to accomplish these tasks without good information are at a disadvantage. Monitoring the Tourist Markets Tourism Strategies and Investments tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Destination images are heavily influenced by pictorial creations in movies or TV, by music & in some cases by popular entertainers and celebrities. –The Sound of Music is still used by Austria –Australia’s booming tourist business used actor Paul Hogan of the hit film Crocodile Dundee Television affects destination attractiveness. –the pub site for the TV hit Cheers became an overnight tourist bonanza in Boston –PBS serializations of English dramas opened Britain to American audiences Competition Involves Image-Making Communicating with the Tourist Market tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Destinations have formed partnerships with travel, recreational & communication businesses on joint marketing efforts. They advertise in national magazines and travel publications and work with business-travel promotions to link the growing business-leisure segment of the traveling public. Many states have located welcome centers along major interstate highways, and states target their own residents with brochures, maps & calendars of events. Competition Involves Image-Making Communicating with the Tourist Market tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Effective destination imaging requires congruence between advertising and the destination. Glossy photographs of sunsets, beaches, buildings, and events need to have some relationship to what tourists actually experience. –otherwise, destinations run the risk of losing tourist goodwill and generating bad word-of-mouth Many tourist destinations have discovered that it is important to show residents interacting with tourists in their advertisements. Competition Involves Image-Making Communicating with the Tourist Market tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 The designation of World Heritage Sites by UNESCO is important to world tourism and very important to selected sites. –in 2007, a total of 851 sites were listed, 660 cultural, 166 natural, and 25 mixed Each site belongs to the country in which it is located, but it is considered to be of international interest to preserve and protect these sites. The program designates & hopes to help conserve sites of outstanding cultural or natural importance to the common heritage of humanity. UNESCO World Heritage Sites Communicating with the Tourist Market tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 An effective way of communicating with potential travelers is by offering packages. Tourist organizations must develop a package of attractions and amenities, as travelers make comparisons about the relative advantages and disadvantages of competing destinations. When combined with other activities such as golf, shopping, dining, and museums, many packages can be developed for different visitor segments. –a destination may promote one, a few, or many of its attractions Developing Packages of Attractions and Amenities Communicating with the Tourist Market tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Despite the best efforts of a destination to portray a positive image via public relations & advertising, image building is affected by reports of disturbing societal problems, including human rights abuse. –charges of human rights abuse directly affect tourism development and growth The government of Myanmar viewed its people as “contributing labor” to the development of the tourism-related infrastructure. –international human rights observers viewed this development as forced labor Developing Packages of Attractions and Amenities Communicating with the Tourist Market tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Making a destination tourist friendly is the task of a central tourist agency, which may be public, quasi- public, nonprofit, or private. Outside the United States, this agency is often run by the central government, state, or province, together with local government officials. The European Travel Commission, a twenty-four- nation group bent on luring U.S. visitors to Europe, coordinates promotional activity in the United States. Developing Packages of Attractions and Amenities Communicating with the Tourist Market tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Countries & states usually have government or quasi-government agencies that market destination tourism. –on the national level, these are referred to as national tourism organizations (NTOs) The NTO can formulate and develop the tourist product or products of the destination and promote them in appropriate markets. It can base its approach to development and promotion on market research and thus achieve a close match between the products and the markets. National Tourism Organizations Communicating with the Tourist Market tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 –flow of research data –representation in markets –organization of workshops and trade shows –familiarization trips –participation in joint marketing schemes –support for new or small businesses –consumer assistance and protection –general education National Tourism Organizations - Functions Communicating with the Tourist Market tab The NTO is responsible for the following functions: Like other organizations, NTOs must develop a mission statement, goals, and a strategy.

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 –past experiences in the region with regard to tourism must be considered –the regional tourism organization must be prepared to adapt the region’s mission –the region’s tourism resources make certain missions possible and others not –the preferences of the region’s major tourism publics must be considered –the mission must be based on the region’s distinctive competencies National Tourism Organizations - Mission Guidelines Communicating with the Tourist Market tab The following guidelines were developed to assist in formulating a mission statement:

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Goals provide direction to the organization, such as the following typical tourism goals: –economic; consumer –environmental and natural resources –government operations. The objective of national strategy formulation is to translate current conditions in the region into desired situations. Destinations marketers who are able to influence site selection of groups such as associations can expect invaluable visitors’ income for the community. National Tourism Organizations - Goals Communicating with the Tourist Market tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 The US does not have a federally funded NTO. –the Travel Industry Association (TIA) serves many of the same functions for the United States as an NTO It produces the official U.S. travel & tourism Web site www.discoveramerica.comwww.discoveramerica.com –and does receive some support from the government for the development and maintenance of the site National Tourism Organizations - The US Communicating with the Tourist Market tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 To have a chance of being selected as a meeting site, a destination must be included in the initial decision process. –careful study & research is needed of those responsible for site selection to find who the real decision makers are –many state or provinces have their own tourist organizations The owner & manager of hospitality organizations such as a hotel, restaurant, or attractions that entice tourists should work with STOs to see how they can promote their business. Regional Tourism Organizations Communicating with the Tourist Market tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 City, county, or area convention and visitors bureaus (CVB) promote tourism on the local level. Because they promote a specific destination, they are called a destination marketing organization (DMO). –their major focus is to bring meetings & conventions to local facilities & hotels with meeting space Sometimes the DMO and the convention center management are two separate organizations, which calls for close communication between the two organizations. Regional Tourism Organizations Communicating with the Tourist Market tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Travel missions are commonly organized by government or quasi-government tourism promotion bureaus, and have two general categories: Exploratory missions - the primary objective is to explore new business opportunities and to develop new markets. Travel sales missions - where participants intend to make direct business contacts and close sales. Whether on a travel mission or not, promoting a visitor destination is always a team effort. Regional Tourism Organizations - Travel Missions Communicating with the Tourist Market tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Agritourism. Agriculture-based tourism that includes farms, ranches, and wineries. Allocentrics. Persons with a need for new experiences, such as backpackers and explorers. Destinations. Places with some form of actual or perceived boundary, such as the physical boundary of an island, political boundaries, or even market- created boundaries. Destination marketing organization (DMO). A group that promotes a specific destination, often a local convention and visitors bureau (CVB). KEY TERMS tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Familiarization trip (Fam trip). A trip where travel agents or others who can send business to a tourist destination attraction, cruise, or hotel are invited to visit at a low cost or no cost. Infrastructure. The system according to which a company, organization, or other body is organized at the most basic level. Macrodestinations. Destinations such as the United States that contain thousands of microdestinations, including regions, states, cities, towns, and visitor destinations within a town. KEY TERMS tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Medical tourism. One of the fastest growing and most lucrative tourism markets. The tourists spend a large amount on medical treatment, stay in top hotels, and often travel around the country after their surgery. Multiplier effect. Tourist expenditures that are recycled through the local economy, being spent and spent again. National tourist organizations (NTOs). A national government or quasi-government agency that markets destination tourism. KEY TERMS tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Psychocentrics. Persons who do not desire change when they travel. They like to visit nonthreatening places and stay in familiar surroundings. Tourism. A stay of one or more nights away from home for holidays, visits to friends or relatives, business conferences, or any other purpose, except such things as boarding, education, or semipermanent employment. KEY TERMS tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Choose an event (festival, concert, play, etc.) in your area that draws tourists. Look into how the event is promoted and the benefits it brings to the community. Is this event effectively promoted? –if yes, why? –if no, how could it be improved? EXPERIENTIAL EXERCISES Try This ! tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 Support for this exercise can be found on the Web site for Marketing for Hospitality and Tourism, www.prenhall.com/kotler www.prenhall.com/kotler INTERNET EXERCISES Try This ! Find two different sites of tourism marketing organizations; national, state or convention and visitor bureaus. Evaluate how effective you feel these Web sites are in promoting the destination. – explain your answer tab

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice Hall - Upper Saddle River, NJ 07458 17 END CHAPTER END

Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice.

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Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice.

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Presentation on theme: "Marketing for Hospitality and Tourism, Fifth Edition By Philip Kotler, John Bowen and James Makens © 2010 Pearson Higher Education, Inc. Pearson Prentice."— Presentation transcript:

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