Overview Presentation on Destination Management and A Conceptual Framework for an Index of Destination Competitiveness

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Overview Presentationon Destination
ManagementandA Conceptual Framework foran
Index ofDestination Competitiveness
Presented by J. R. Brent Ritchie ? Geoffrey I.
Crouch Presentation to the WTO Think Tank on
Tourism Destination Management Dec 3, 2002
Madrid
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PanoramaBlock IBasic Tourism Destination
ManagementDefinitions and Concepts One
Perspective
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One Perspective onDestination Management
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PanoramaBlock IIConceptual FrameworkandAnaly
sisfor a DestinationCompetitiveness Index (DCI)
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A Map of Major Types of Destinations

• by Jurisdiction
• e.g. nation or country
• province or state
• localized region(Western Canada Chesapeake Bay
  Costa del Sol)
• city or town
• unique location (National Park)
• major attraction (Disney World)

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A Map of Major Types of Destinations

• by Type of Experience
• e.g. Sun/Sea experience
• Adventure experience
• Family Travel experience
• Educational or Learning experience
• The Quick Get Away experience
• The VFR (Visit Family /Friends Relatives)
  experience
• Special Event experience

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Building a Destination Competitiveness Index (DCI)
Background (where we started)
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Destination Competitiveness Index

• About the DCI
• DCI Model
• DCI Report
• DCI Timeline

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About the DCI

• MissionTo provide DCI users with information to
  assist in making strategic decisions and
  formulating policy

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About the DCI

• Objectives
• To analyze and rank ability of countries major
  destinations to
• effectively develop and manage tourism
• provide satisfactory visitor experiences
• conduct tourism in an economically, culturally,
  environmentally, and politically sustainable
  manner

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About the DCI

• Objectives
• To provide a standardized vehicle for
  benchmarking within and between destinations
• To raise awareness of tourism as a major
  component in the well-being of societies

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About the DCI

• Destination Countries and major urban areas
• with WTO focus is on Countries
• with IACVB focus is on Major Urban Areas, or
  City States

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About the DCI

• Competitiveness A destinations overall
  performance vis-à-vis other destinations, on four
  critical measures
• Economic Performance
• Sustainability
• Visitor Satisfaction
• Management Action

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About the DCI

• IndexA statistical compilation of key
  indicators, which represent over 160 quantitative
  and qualitative criteria

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About the DCI

• Based on the Ritchie Crouch Competitiveness/Sust
  ainability Model
• Derived from
• theoretical considerations
• the research literature
• input from senior industry managers

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The DCI Model
Index
Core Indicators
Criteria
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The DCI Model

• Criteria Allocation Specifies to which of the
  four key indicators a criterion contributes
• Criteria Source Based on 5 major components and
  35 elements in the Ritchie Crouch
  Competitiveness/Sustainability Model
• Criteria Type Quantitative and Qualitative
• Criteria Data Collection Expert Opinion, Visitor
  Survey, Resident Survey, Secondary Data

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The DCI Model

• Indicator 1 Economic Performance
• Criteria
• 24 out of 163 total index criteria
• 20 quantitative and 4 qualitative criteria
• Some Criteria Examples
• Total visitor expenditures (secondary data)
• Ratio of travel/tourism employee compensation to
  overall employee compensation (secondary data)
• Ease of starting a tourism-related business
  (expert opinion)
• Travel and tourism GDP/overall GDP (secondary
  data)

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The DCI Model

• Indicator 2 Sustainability
• Criteria
• 60 out of 163 total index criteria
• 7 quantitative and 53 qualitative criteria
• Some Criteria Examples
• Preservation of natural capital (expert opinion)
• Maintenance of ecological integrity (expert
  opinion)
• Resident access to tourism infrastructure
  (resident survey)
• Level of political support in facilitating
  tourism efforts(expert opinion)
• Taxes generated from tourism expenditures
  (secondary data)
• Visitor perception of destination having reached
  its tourism carrying capacity (visitor survey)

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The DCI Model

• Indicator 3 Visitor Satisfaction
• Criteria
• 32 out of 163 total index criteria
• 2 quantitative and 30 qualitative criteria
• Some Criteria Examples
• Perceived richness of destination culture and
  history(visitor survey)
• Satisfaction with overall destination quality of
  service(visitor survey)
• Level of repeat visitation (secondary data)
• Perception of resident hospitality (visitor
  survey)
• Quality of the destination experience (visitor
  survey)

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The DCI Model

• Indicator 4 Management Action
• Criteria
• 47 out of 163 total index criteria
• 10 quantitative and 37 qualitative criteria
• Some Criteria Examples
• Satisfaction with destination management (DM)
  action in dealing with competitive
  pressures(expert opinion)
• Quality of involvement in human resource
  development programming and support(expert
  opinion)
• Satisfaction with destination materials to help
  with trip planning (visitor survey)
• Number of quality special events (secondary data)
• Average visa fees per visitor (secondary data)

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The DCI Report

• Overall DCI Ranking Weighted and un-weighted
  results
• DCI Indicator Ranking Four key measures of
  competitivenessat a given point in time
• Destination Progress Index (DPI) Ranking Key
  criteria which measure progress are included in
  this sub-index
• Year-to-year (YTY) Country/Urban Centre Analyses
  (Analysis of Index change over time)
• Destination Strength and Weakness Charts
• While the DCI Report provides numerous dimensions
  of competitiveness and progress, users of this
  study will be strongly advised to examine the
  individual criteria whichare of most relevance
  to their particular destination.

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The DCI Timeline

• Index Research
• Criteria Selection and Screening
• Survey Design and Data Collection
• Data Analysis and Report Generation

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The DCI Timeline
August September 2002
September 2002 March 2003
March 2003 October 2003
October 2003 December 2003
Survey Design and Data Collection
Criteria Selection and Screening
Index Research
Data Analysis and Report Generation
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The DCI Timeline

• Index Research Includes index formulation,
  theory and best practices

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The DCI Timeline

• Criteria Selection and Screening
• Selected based on data accessibility, reliability
  and relevance
• Derived from theoretical considerations, the
  research literature, and input from senior
  industry managers
• An expert panel will review criteria as a final
  screen and will assign weightings based on index
  importance. These expert opinions will be used
  in calculating the Weighted DCI Index.

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The DCI Timeline

• Survey Design and Data Collection
• Surveys will be designed for three specific
  populations in-destination experts, visitors,
  and residents.
• With the assistance of partnering organizations,
  appropriate survey recipients will be identified.
  Surveys will be translated, pre-tested,
  distributed, completed and collected.
• Relevant secondary data will be also gathered.

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The DCI Timeline

• Data Analysis and Report Generation
• Data will be standardized and calculated
  utilizing statistical approaches common within
  index construction.
• DCI reports, which include multiple measures of
  destination competitiveness and progress along
  with individual criterion scores for user
  analysis and decision making, will be assembled
  and distributed.

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The Destination Competitive Index (in review)
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PanoramaBlock IIIAnalysis of theStructure of
a Destination
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• Destination Definition
• -- Jurisdiction Based
• -- Market Based

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Functional Structure of a Destination
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Identification of SpecificDestination
Stakeholders
A Stakeholder Definition
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Thank youQuestions?