TOURISM

PRODUCT
DEVELOPMENT

There are two key aspects to Tourism Product • A tourism product in a destination is an
Development: mixture of amalgam of many experiences as far as the
diff elements tourist is concerned. It is not just the hotel
1. It is not an activity undertaken in a vacuum, stayed in, the places, museums, parks,
but is part of an extensive and inter-linked restaurants, theatres, shops etc visited, or
process. the journey to and from the destination. It
2. Market research, product development and is all of these things, and more. When
marketing represent a continuum. The planning new tourism product
failure to deliver any of these key developments, it is necessary to see how
components will result in the destination the ideas fit with the existing provision.
under-realising its potential.
• Any tourism product is made up of three
The range and calibre of the tourism product factors:
offering is what attracts tourists to a destination. Yet 1. Experiential – festivals, activities,
the development of tourism products is a part of a community, event, dining and
large, inter-linked and continuing process and should entertainment, shopping, safety,
not be considered in isolation. service.
2. Emotional – human, cultural and
historic resources, hospitality.
3. Physical – infrastructure, natural
resources, accommodation,
restaurants.

For this, the focus is on those products in which

governments can most valuably play a role in
bringing to development in order to meet one or a
combination of the three main motivations for
taking a pro-active role, namely:
• comprises many products within the overall
1. to increase and speed up the sector’s destination;
economic contribution; • involves many stakeholders with differing
2. to shape development in a form that objectives and requirements;
ensures it is both sustainable and • is both a physical entity and a socio-cultural
responsible, providing good experiences for one;
the tourist but also bringing substantial • is a mental concept for potential tourists;
benefits to the local community and • is subject to the influence of current events,
safeguarding the natural environment; and natural disasters, terrorism, health scares
3. to add to the provision of leisure etc.;
recreational and other services that can • is subject to historical, real and fictitious
benefit the local community as well as events;
visitors.

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• is evaluated subjectively in terms of what C. MOUNTAIN TOURISM

represents value-for-money e.g. based on - Mountain Tourism is a type of "tourism
reality compared with expectations; and activity which takes place in a defined and
• differs in size, physical attractions, limited geographical space such as hills or
infrastructure, benefits offered to visitors mountains with distinctive characteristics
and degree of dependence on tourism – in and attributes that are inherent to a specific
fact no two tourism destinations can be landscape, topography, climate, biodiversity
treated the same, each offering its own (flora and fauna) and local community. It
unique and authentic attributes. encompasses a broad range of outdoor
leisure and sports activities".
D. URBAN TOURISM
- According to UNWTO, Urban Tourism is "a
type of tourism activity which takes place in
an urban space with its inherent attributes
As defined by UNWTO, a Tourism Product is "a characterized by non- agricultural based
combination of tangible and intangible elements, economy such as administration,
such as natural, cultural and man-made resources, manufacturing, trade and services and by
attractions, facilities, services and activities around a being nodal points of transport. Urban/city
specific center of interest which represents the core destinations offer a broad and
of the destination marketing mix and creates an heterogeneous range of cultural,
overall visitor experience including emotional architectural, technological, social and
aspects for the potential customers. A tourism natural experiences and products for leisure
product is priced and sold through distribution and business"
channels and it has a life-cycle". E. SPORTS TOURISM
- Tourism and sports are interrelated and
A. RURAL TOURISM
complementary, Sports as a professional,
- UNWTO understands Rural Tourism as "a
amateur or leisure activity involves a
type of tourism activity in which the visitor's
considerable amount of traveling to play
experience is related to a wide range of
and compete in different destinations and
products generally linked to nature-based
countries. Major sporting events, such as
activities, agriculture, rural lifestyle/
the Olympic Games, football and rugby
culture, angling and sightseeing.
championships have become powerful
B. GASTRONOMY AND WINE TOURISM
tourism attractions in the themselves -
- As global tourism is on the rise and
making a very positive contribution to the
competition between destinations
tourism image of the host destination.
increases, unique local and regional
F. SHOPPING TOURISM
intangible cultural heritage become
- Shopping Tourism is becoming an
increasingly the discerning factor for the
increasingly relevant component of the
attraction of tourists.
tourism value chain. Shopping has
converted into a determinant factor
affecting destination choice, an important
component of the overall travel experience
and, in some cases the prime travel
motivation.

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6. Strengths of the destination's own private
sector- is there a good level of local private
sector investment in tourism products and a
strong local travel and tourism sector? Or is
In order for destination authorities to approach the the destination largely dependent on
process of Tourism Product Development planning in foreign investment with its distribution
a systematic and market-led way, there are a system controlled by foreign interests?
number of fundamental initial actions to be taken. 7. Distribution System- how important is the
destination to international airlines and
Tourism product development strategy can be tour operators? What can be done to
influenced by factors that can change, or be changed strengthen those links? What further
through direct action by: changes are electronic technology likely to
bring about in the way tourists research and
1. Public bodies in the destination book their trips.
2. Other agencies (including competing 8. Perception of the destination is source
destinations; and markets-stable and safe on unstable and
3. events, many of which can be controlled by unsafe.
the destination

The Variables that can be changed include:

1. Markets and Segments- which

countries/regions does it draw on? Which
segment does it attract? What change are The main factors that determine a destination’s
taking place in the tastes and trends in strategic approach to the development of its tourism
different origin markets? Is there a good sector are:
level of domestic demand from within the
destination? 1. RESOURCES AND ATTRIBUTES - what it has,
2. Transport infrastructure and utility or can develop, to attract and satisfy
provision-how easy is it to get to and tourists in a sustainable manner – e.g. in the
around the destination? are power, water main its natural, historical and cultural
and sewage services to the standard resources;
required by tourist markets? ▪ Resources and Attributes
3. Resources to support growing tourism o The most fundamental
sector e.g. human resource skills and factors are where the
training programs; destination is located, and
4. Place on the Tourism area life cycle (TALC)- what its basic resources in
is it a newly emerging, growing or mature terms of physical
destination? What actions are necessary to characteristics and history
maintain sustainable growth. are. Most significant in
5. Competition-past, current and likely future. this regard are:
What strategies are being pursued and o the natural, cultural and
developments taking place, or planned, in other resources of the
competitor destinations and how will this destination;
impact on the subject destination? What o its size, topography and
actions can be taken to offset any erosion type of terrain;
of market demand from these competitive o
developments?

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o its location relative to 3. FACTORS OF PRODUCTION AND
major tourist source INVESTMENT - how strong are: a) the
countries/regions; destination’s factors of production (e.g.
o its susceptibility to land, labour, capital, enterprise) in respect
disruptive natural events of generating and supporting tourism
such as tropical cyclones development, and b) its standing in
and earth quakes; attracting outside investment;
o the key events and ▪ Factors of Production and
existing manifestations of Investment Potential Development
its history. cannot take place unless the
2. MARKET OPPORTUNITIES - what the market necessary factors of production are
opportunities are for the products it can available in, or can be brought to,
develop, taking account of competitors and the destination. This entails:
market tends and tastes; o land availability of the
▪ Market Opportunity scale and in the
o The availability of a appropriate locality to
sufficient market realise the product
potential that can be development and market
attracted to the potential without undue
destination and meet the negative impact on the
financial and economic environment and
objectives of the community living in the
developer/operator and vicinity;
government respectively, o labour availability in the
is a prerequisite to the form of a supply of
development of tourism trained personnel, or
products. persons that can be
o Market intelligence is, trained, to meet the
thus, a primary tool in Tourism Product
determining a Development’s needs;
destination’s Tourism o investment capital
Product Development availability for the product
strategy. developments – from
o Market research can domestic sources or,
identify the types of should the government
products that can be policy be open to it, from
developed related to the foreign investors;
resources and attributes o a strong system of local
available in the enterprise in the form of
destination, with the SMEs and larger
emphasis on those which corporations able to
are difficult to replicate in supply to, and operate in,
competing destinations. the tourism sector.

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4. POLICIES AND SYSTEMS - what priority and These have been divided into two broad groupings:
level of support the destination government
allocates to the tourism sector. 1. Fundamentals e.g. aspects that need to be
▪ Policies and Systems put into place before effective and
o its tourism sector can sustainable Tourism Product Development
operate without can take place – in other words the
disruption from political necessary ‘hardware’.
change; and 2. Principles and procedures e.g. the optimal
o it is perceived by the steps in developing and bringing a tourism
prospective tourist as a product to fruition – the ‘software’.
safe place to visit.
Variations in policies and There are three fundamental issues to which all
systems include: destination authorities need to give the most careful
o the form of political and detailed consideration, namely:
system in the destination;
o the degree of autonomy 1. Structures – establishing appropriate
given to regional and local institutional arrangements for tourism.
governments within the 2. Inter-agency coordination – tackling the
destination; challenge of coordination both between
o political and social central government departments and down
stability; the line to the regional and local
o degree of risk from administrations.
internal or external 3. Planning system – establishing a planning
conflict or terrorism; system and a full planning process that
o the role of tourism in the gives adequate guidance but encourages
economic development originality and stimulates investment.
mix – peripheral or a Tourism is unlike any other economic sector
sector on which the in that it involves the state, private sector
destination has a high and community where it takes place. Under
dependence; and such circumstances:
o its stage of overall a) planning for tourism is vital;
economic development. b) a different approach to policy and
planning is needed to that used for
other sectors;
c) in order to create an economically
successful and fully sustainable
sector over the long term, tourism
planning should be
Before looking specifically at the role, and process by comprehensive, fully coordinated
which governments can assist, in Tourism Product and undertaken over an extended
Development, it is advisable to consider the broader time frame.
picture, namely policy, planning and management of
the overall tourism sector.

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Then there are a series of principles that underpin all
sound Tourism Product Development planning and
successful operation, whether stimulated by the
public sector or arising from private sector or
community initiative: A. Tourism Organisational and Institutions
Structures
1. Understanding market tastes and trends – • The complexity of the cross-cutting
market research; nature of tourism gives rise to the
2. Market: product ‘matching’;
problem of coordination –
3. Designating tourism development
discussed later in this chapter –
areas/zones;
since tourism, by virtue of being a
4. Undertaking extensive stakeholder
temporary increase in the
consultation – including with the local population of the destination, has
communities in the areas of development –
all the needs and impacts of the
in an open manner and in a spirit of co-
permanent population – and a few
operation;
additional ones. It is a question of
5. Pursuing flagship development whether tourism should be:
opportunities;
o treated separately for
6. Identifying opportunities for clusters,
government policy and
circuits and events;
planning purposes;
7. Preparing a full product portfolio and
o linked with another
investment plan; government ministry or
8. ensuring that personnel with the
department according to
appropriate tourism technical skills are in
the destination’s
place at national, regional and local levels
development priorities; or
to carry the process of Tourism Product o incorporated within all
Development forward; and
the other sectoral
9. Drawing up a marketing and promotion
government ministries
strategy to support the tourism product
and departments of which
developments, and implement a
it is a part.
programme of marketing communications.
• If “tourism” is not specified in the
title of the government ministry or
department responsible for it,
there has been the tendency in the
past for it to be treated as an
insignificant sector by government
policy makers and planners; but if
tourism is a stand-alone ministry or
department, there arises the
problem of coordinating the needs
and impacts of the sector as they
relate to the responsibilities of
other government ministries and
departments.

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B. National and Regional Coordination No destination can, therefore, establish a product

development portfolio without:
• Coordination for tourism occurs
both horizontally (e.g. inter- 1. an extensive system for the collection,
sectoral between different analysis and interpretation of tourism
government departments and statistics related to tourism in their
agencies) and vertically (e.g. destination e.g. through border entry/exit
between different levels of points, lodging establishments, registered/
government). It is vital at central licensed attractions and activities;
level between the different 2. a programme of regular market research
ministries and departments with and ad hoc studies into the scale, structure,
responsibility for an aspect related profile, characteristics and trends in major
to tourism, as well as between and prospective source markets and
central, regional/provincial and segments.
local levels.
C. Comprehensive, Integrated and Inclusive
Planning
• Tourism has a huge range of direct
and indirect impacts – as explained
earlier since tourism takes place
where other people live, it adds to
the needs and impacts that the
permanent population has, as well
as creating the need for special
facilities such as commercial
UNWTO outlines the best practice guidelines for
lodging. Government planning,
market research as follows:
regulation etc is therefore needed.
First, the research objectives have to be clearly
stated. These could include:

1) to obtain an understanding of how

• It is the basis on which concepts visitors/potential visitors perceive the
are checked and translated into destination and its principal competitors
reality, and then supported e.g. overall awareness, strengths,
through marketing and weaknesses;
promotional action programmes. 2) to identify the markets/segments with
Understanding the tastes and greatest interest in, and potential for, the
trends in demand of tourists is one destination;
of the most fundamental 3) to identify the characteristics and profile of
requirements for successful markets/segments with the greatest
destination Tourism Product potential for the destination.
Development.
Among the different types of research required are:

1) existing product inventory/audit;

2) tourism trends overview and analysis –
international, regional and in the
destination and its competitors;

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3) visitor survey – designed to be To convince local interests that their voice is being
representative by taking account of the heard it is important that tourism planning, and
volumes of tourist flow by season and range public participation as a component of it, addresses
of destinations visited within the country; values and peoples’ perception of the “truth”, and
and not overly focus on the short-term interest
4) competitor analysis – focused on the style, management as expressed in “facts” as seen from
standard and strengths/weaknesses of the tourism planner’s viewpoint. Public consultation
products, prices, marketing approach etc. can take many forms – surveys, public meetings,
group discussions with local interests, media
features and feedback.

Given the multiplicity of interested parties in tourism

development, a prerequisite for successful planning No consideration of marketing strategy or
is achieving a balance between the various needs development of a marketing plan can proceed
and values of the entities involved and building trust without detailed understanding of the products
between them. The process of consultation and available since it will be these products for which
consensus building is, thus, a crucially important demand is sought through the campaign
element in the development of tourism and the undertaken. Products and markets are mirror images
attractions, activities and facilities that are provided of each other. In this regard, the starting point in
for visitors. product development planning typically involves the
preparation of a comprehensive assessment of the
While public consultation is a standard tourism
destination’s overall political, economic,
planning mechanism to deal with controversial
sociocultural and technological – PEST – situation,
issues, the means utilised (e.g. public meetings,
and an audit/inventory of tourism resources and
resident surveys) often serve merely to identify the
assets – natural, cultural and historical – and existing
problems rather than resolve them. In many cases
products. Combined with a SWOT analysis this
the focus has been on the technique rather than the
enables a comprehensive analysis and
process, and the process has been interestbased
understanding of the present situation to be
rather than values-based. For effective consultation,
developed.
four principles are identified by Smith (1984) and
quoted by Hall (2000): There are a number of factors that can lead to the
fragmentation of the destination’s tourism product
1. Real and regular consultation – starting
presentation and can therefore be a major
early in the planning process and inclusive
contributory element in the absence of sufficient
of all stakeholders.
critical mass of tourism products to attract
2. Development of a common information
significant inflows of visitors. The primary such
base.
factors are:
3. 3Action plans which involve multiple
stakeholders – designed to encourage a) the lack of a clear tourism development and
ongoing dialogue serving to encourage marketing strategy based on a prioritised
further co-operation and anticipate list of products assessed in respect of their
difficulties. market (and market segment) potential,
4. The use of a variety of effective and
mechanisms including mediation and b) the lack of coordination of marketing and
zoning. promotional efforts of the NTA, tourism
associations and institutions, local
authorities and private sector operators.

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This can lead to the lack of a critical mass of tourism An example of a three tier system could be as
products to attract significant inflows of visitors. The follows:
situation can be further exacerbated by:
o TDA 1 open to all forms of tourism
a) inadequate levels of marketing and development;
promotional support from the State o TDA 2 open for certain types of
agencies responsible for the tourism sector; development limited by type and scale;
b) weak coordination of existing marketing o TDA 3 maintained free of new tourism
efforts between the public and private development other than small scale by local
sectors leading to fragmentation of the communities.
destination’s tourism product presentation;
c) limited technical tourism knowledge in the
public administration – both at State and
district levels; and
d) the lack of effective coordination of the A central component of a destination’s
tourism private sector. differentiation is a flagship tourism attraction.
Flagship tourism products are those with such strong
To invest substantive financial resources in market appeal that they determine the travel
promoting a wide spread of destinations cannot be decision and choice of destination. Their role is
justified when these areas are: therefore vital to destinations.

a) not individually significant as tourist Flagship tourism products can take one, or a
destinations; combination of, three forms:
b) difficult to find/travel to; and
1) Major development
c) isolated from other possible attractions, in
- This can typically be a historic/cultural
that they do not form part of established
edifice that acts as an icon for a country
and promoted destination packages,
(e.g. the Pyramids of Egypt, India’s Taj
clusters or circuits.
Mahal) or a purpose-built visitor attraction
for an individual destination, such as the
Eiffel Tower in Paris, the London Eye or
Dublin’s Guinness Storehouse.
2) Cluster of individual products
The establishment of a tourism development - A tourism flagship can take the form of
strategy related to an expanded range of tourism complementary tourist attractions that
have the potential to develop and
products can best be achieved through the
contribute to the implementation of a
designation of a system of tourism development
coherent marketing strategy.
areas (TDAs) based on separate and distinctive
character zones. This approach, which was designed Depending on the location of the destination, its
and implemented by Tourism Development stage on the TALC, the size of its domestic
International in South Carolina, United States of population and the range and type of existing
America, has the benefit that it gives the destination attractions, criteria for a flagship cluster can be set
authority and the ability to influence – even control specifying:
– both the location and type of tourism development
that takes place. ▪ the minimum number of
attractions it should comprise;
▪ its role as a gateway, or hub, to a
tourism development area;

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▪ its ability to draw on adequate
commercial lodging in the area; B. Circuits, Roads and Trails
and ▪ Circuit or trail development as a
▪ the minimum total investment tourist attraction is not simply
required. putting together a route based on
3) Keynote event the location of various features.
- The organisation and operation of regular There has to be a central linking
or one-off major sporting, arts/culture or theme or interest, and the route
trade events (e.g. Olympic Games , Soccer should provide distinct attractions
World Cup, Expo) can serve to establish a and activities along it, with a range
destination’s reputation as an important of facilities at key places along it. It
tourism destination. is the integrated development
based on a specific theme that
makes the route attractive.
C. Events and Festivals
The organisation of events and festivals can
A. Cluster Development meet a number of destination tourism
1. linked to a flagship on the ‘hub and sector objectives:
spoke’ principle; 1. offset seasonal imbalances by
2. a grouping of attractions and holding events in the shoulder and
activities in a geographic area that off seasons e.g. Halloween Festival
is on a readily accessible route NB at the end of October
if not linked to a flagship, the 2. improving international perception
number of features needs to be and image of the country – the
greater; example of St.Patrick’s Festival,
3. a grouping of attractions and and
activities that are linked through a 3. attracting visitor segments to
common theme or interest e.g. whom the destination’s other
traditional rural lifestyle, attractions do not appeal
cycling/horse riding/hiking trails.
Product clusters are typically
delivered, and promoted, as
circuits, or trails. Most clusters and
trails would not occur without The ability of any destination to plan, implement and
some form of public sector operate tourism attractions and activities is totally
initiative dependent on the supply of appropriately educated
4. to group the multiple stakeholders, and trained personnel at all levels of government
getting them to work and and among the private sector. Central government
cooperate with each other; and, in tourism officials need to understand the working of,
some instances; and trends in, the international tourism system;
5. to support the development of the while satisfying the needs and wishes of tourists in
cluster through direct intervention the market segments being targeted is the
– the en route facilities and paramount requirement for those charged with the
amenities that travelers along the implementation and operation of tourism products.
prescribed might need.
A cadre of tourism specialists needs to be
established with their knowledge base kept upto-
date.

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In an activity like tourism where the customer is

“remote” from the place he/she is considering to
visit, or from the tourism products and service
available, marketing and promotion is a central
component of tourism. Two of the adages of tourism
marketing arising from this situation are that: “you
cannot test drive a holiday” and “in tourism, the
perception is the reality”.

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