What is Destination Management ?

‘Destination Management’ is a long-standing retail concept, but it is relatively new to the Australian tourism industry. It is a concept that has considerably broadened awareness of what constitutes a successful and sustainable tourism location.

The term ‘destination’ refers broadly to an area where tourism is relatively important and where the economy may be significantly influenced by tourism activity. A destination can be a city or township such as Melbourne or Ballarat, or a geographic region such as the Great Ocean Road or the Yarra Valley, or even a retail precinct such as Chapel Street in South Yarra.

A ‘destination’ is the definable geographic space in which the entire tourism ‘experience’ takes place - a location with a pattern of attractions, related tourism facilities and services that should be of sufficient scale to allow for successful marketing and promotion. The experience that consumers are seeking often involves several destinations. It is, therefore, important to avoid destination ‘myopia’ by working collaboratively with the other areas that may comprise the total experience.

Visitors’ overall experiences comprise a complex range of elements, including expectations, transport, information, accommodation, a welcoming host community, security and other services. The key to destination planning and management is understanding what today’s consumer is seeking and the aspirations they wish to fulfil. It requires an understanding that not all destinations will suit all market segments.

Finding the right market segment/s that will best respond to a destination’s ‘offer’ is fundamental to success. In many cases, the capacity to modify the destination experience through the addition of new attractions, activities and visitor facilities can better position the product to suit the market segments.

See module 1 in this series ‘Understanding Visitor Needs’ for more information about product-market matching.

The modern approach

Previously, destinations tended to focus mainly on promotion to maximise visitation. In an era when holiday and day trip choices were more limited, promotion was often all that was needed to capture the visitor dollar. However, travel options have increased exponentially. Discount domestic and international airfares, combined with a leap in petrol prices, means that it can be as cheap for Victorians to holiday on the Sunshine Coast as it is to take the family for a week to Lorne. The impact of technology during the past seven years has also dramatically altered the provision of visitor information, both prior to and after arriving at a destination.

Some councils and tourism organizations have started to appreciate the need to better manage the whole visitor ‘experience’ and realise that success can translate into repeat visits, longer stays, increased spending and positive word of mouth. Conversely, destinations that have undergone visual degradation through inappropriate planning, development and management are being increasingly rejected by consumers.

In recent years, towns such as Daylesford and regions such as the Mornington Peninsula have transformed their old-style holiday areas into more complete visitor destinations. Perhaps the most obvious example is Melbourne city’s evolution in just 15 years from a dated shopping centre into a multi-faceted, vibrant, year- round visitor destination.

Many areas now also recognise that increasing the monetary yield from each visitor can be more economically, environmentally and socially beneficial to their area, rather than blindly pursuing visitor numbers alone. This approach can not only lessen the impact on the residential community, but can lead to the development of some innovative and creative ways for tourists to better appreciate the local environment and the community they have chosen to visit. For example, Arnhem Land (N.T.) heavily restricts and controls its visitor numbers via a permit system. This means that its visitors must undertake an approved guided tour, which not only increases the economic yield, but enables the visitors to enjoy a deeper and more personal interaction with the local indigenous people.

On the other hand, attractive locations close to capital cities constantly struggle under the burden of servicing seasonal waves of low-yielding day trippers.

Information centres, signing, transport and recreation areas are still high profile items for local council attention, but successful tourism areas now also consider consumer research, industry structures, leadership, crisis management and environmental protection, in an effort to build a sustainable industry. Above all, development of a sustainable destination must also focus on the needs and aspirations of the local community.

‘Sustainable’ destinations

There is an increasingly strong relationship between sustainability and a destination’s competitiveness. According to a recent study by the Travel Industry Association of America, the majority of the travelling public (61%) agree that that their travel experience is better when destinations preserve their natural, historic and cultural sites and attractions. Being regarded as ‘sustainable’ or as a ‘green destination” is now regarded as a competitive advantage.

Consequently, some destinations now place strong emphasis on their green credentials in tourism marketing initiatives. The Portland Oregon Visitors Association’s marketing activities focus on the city’s environmental credentials, including its appeal as a venue for “green meetings.” Closer to home, New Zealand’s clean green tourism image has been found to be worth hundreds of millions dollars to the country’s economy.

The City of Vancouver defines a sustainable city as one that protects and enhances its immediate and long-term wellbeing. “…. a community that meets the needs of the present without compromising the ability of future generations to meet their own needs.” It’s about balancing and integrating the social, economic and environmental components, as well as managing the interaction between the needs of the visitor, the industry and the local community.

Click here to read further about the wider notion of sustainability in developing a tourism destination