A National Framework For Best Practice Destination Management Planning

2007

CONTENTS
1. 2. 3. 4. 5. 6. 7. 8. 9. DMP: Background ....................................................................................................................3 DMP: International context .....................................................................................................3 DMP: Australian context..........................................................................................................3 DMP: A Nationally Consistent Framework ...........................................................................4 DMP: Concepts .........................................................................................................................4 DMP: Benefits ...........................................................................................................................5 DMP: Key Characteristics .......................................................................................................6 DMP: Overview of a typical process .......................................................................................7 Implementation ..........................................................................................................................8

10. DMP: Best Practice Examples .................................................................................................8 11. Further Information - Useful links References ....................................................................8

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1. DMP: Background Domestic tourism accounts for around 70% of total tourism expenditure in Australia. However, recent research has shown that the domestic tourism industry is facing a number of challenges. Australians are not travelling domestically as they once did, due to strong competition for the consumer dollar and for leisure time. Furthermore, the gap between outbound and domestic travel is widening as international destinations become more competitive and low cost carriers make them more accessible. In August 2007, Tourism Ministers endorsed an Action Plan setting out practical actions to address issues confronting Australia's domestic tourism industry. The research and consultations that underpin the Action Plan indicate that there is a widening gap between what consumers expect from domestic tourism and what is being offered. The most effective way to address these challenges is coordinated effort from all stakeholders: all levels of government; and industry. In this context, Destination Management Planning (DMP) emerged as an effective mechanism for improved cooperation and collaboration with local industry and strengthening partnerships with regional economic development agencies/boards and education and training providers. This document provides a contemporary best practice Destination Management Planning Framework to assist all tourism agencies and destinations in ensuring the sustainability and competitiveness of tourist destinations for communities, business operators, industry stakeholders, and consumers. It is based on the large body of work being done on various aspects of DMP both around Australia and internationally. 2. DMP: International context The development of locally and regionally relevant Destination Management Plans (DMPL) is supported by the United Nations World Tourism Organisation (UNTWO), with DMPLs being implemented in many tourist destinations around the world. The UNWTO hosted a Destination Management Conference "Creating Competitive Advantage for your Destination" in Hungary in February 2007. With the support of the UNWTO, the European Commission has developed an "Action Plan for more Sustainable European Tourism". On the subject of Destination Management Planning, that Action Plan comments:
"Many of the challenges set by sustainability, and the actions required, can best be addressed by the different stakeholders working together at a destination level. It is here that the needs of the environment, the local community and businesses come most closely together. It is much easier to take an integrated and holistic approach when working at this level. Furthermore, it is increasingly recognised that the concept of a destination, within which a wide range of facilities and activities together make up the complete experience, is critical in influencing consumer choice."

3. DMP: Australian context The concept of DMP has been strongly supported by the Australian and State/Territory Governments. Through their collective involvement in the development of the abovementioned Action Plan, these agencies have developed this strategic and integrated approach to tourism planning, and encourage tourism organisations at all levels of destination management to integrate the concepts and processes suggested. The Department of Industry, Tourism and Resources also supports destination development in regional Australia through its Australian Tourism Development Program (ATDP). More than $31 million in ATDP funding has been allocated to 191 projects across Australia, many of which have elements of DMP in their project plans. Page 3 of 10

4. DMP: A nationally consistent framework The National Tourism Investment Strategy Consultative Group, in its report to the Minister for Small Business and Tourism in March 2006, encouraged the "consistent development of destination management plansthat could be assessed collectively to identify economies of scale for private sector investors". Additionally, sound DMP provides developers, investors, businesses, and communities with a degree of certainty and predictability about future development in an area. The Consultative Group also found that "given the diversity of activities within the entire supply chain of the tourism industry it has often been difficult for Australian and State Governments to adopt a whole of government approach to tourism, tourism marketing and destination planning, particularly in regional areas." Development of a nationally consistent DMP framework will facilitate a whole of government approach to tourism, allowing governments to more effectively identify and respond to changing needs for services, infrastructure, education and training throughout regions and facilitate local area and industry engagement with government programs and initiatives. 5. DMP: Concepts DMP is a management system that provides a tourism organisation with the tools to produce sustainable and competitive tourism in a destination. DMP is organised around defined visitor destinations, each with its own natural and unique tourism assets, and unique development, marketing, and management needs. DMP is a step forward from traditional destination marketing roles and provides a more holistic and integrated approach to understanding the tourism potential of each destination, and the best methods of maximising that potential. DMPLs are developed after a comprehensive process of research within the destination, consultation, feedback, planning, and review. Grass roots level participation from local tourism organisations, tourism boards, local government, and operators is essential in the preparation of DMPLs. DMPLs should be linked upward to State/Territory level strategic tourism plans. Destination Management Planning is defined here as being inclusive of all of the practices and principles known as:

Destination development planning: Critical assessment of the destination's tourism potential and monitoring of progress; Effective consultation and collaboration with all stakeholders; Focus on attracting investment and infrastructure projects; Workforce planning to generate local employment and to ensure that there are adequate workers to service demand; and - Long term tourism strategies to grow the industry.
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Destination marketing: - Ongoing research; - Identifying and targeting the correct markets, including new and emerging markets; - A raised awareness in the target market(s) of the qualities of the tourism destination; and - Increased visitation and yield. Destination management: - Protection of the natural and unique tourism assets of the destination; - Ensuring quality visitor experiences; - Industry leadership; and - Growing a unique and sustainable tourism industry within the destination.

Figure 1 illustrates the relationship between these three principles. This Destination Management Planning Framework (DMP Framework) encompasses the economic, Page 4 of 10

environmental and community practices and principals called on in the above three disciplines and is considered to be 'Best Practice' in DMP.

Destination Development Planning

Critical assessment of tourism potential Consultation and collaboration Investment and infrastructure

COMPETITIVE TOURISM DESTINATION

Destination Marketing Destination Management

Research Target markets Awareness Visitation and yield

Protection of assets Quality experiences Sustainable growth

FIGURE 1: 6. DMP: Benefits

Destination Management Planning - Concepts

The potential benefits for destinations, communities, business operators and tourism agencies that can be achieved through an effective and nationally consistent approach to DMP include: Improved destination competitiveness - Increased destination appeal resulting in increased visitation and yield; - Advantage over other destinations; and - Ongoing investment in tourism. Increased visitor satisfaction - Delivering on the brand promise; - Increased repeat visitation; and - Enhanced destination reputation. Economic, social and environmental sustainability Increase in tourism's contribution to destination's economy; Community support for tourism development; Controlling tourism's environmental impacts; and Long term industry viability. Page 5 of 10

 Effective partnerships Strong partnerships (community, industry, government, development agencies etc) are an important factor in many better performing tourism regions. The benefits include: - Avoiding duplication of resources; - Bringing a focus to developing the full visitor experience from arrival through to departure; - Increasing the profile of tourism in regional destinations; and - Minimising conflicts between tourism and other sectors. Continuous improvement This Framework encourages the implementation of DMP as a process of continuous improvement rather than a once off "set-and-forget" activity. The benefits include: - Early awareness of emerging trends; - Development of innovation and new technology; and - Constant refreshing of destination brand. 7. DMP: Key Characteristics Although it is recognises that no two destinations are the same, and that each destination or region will require those aspects of DMP that best suit its unique tourism assets and circumstances, the following points are provided to assist destinations in tailoring a DMPL that will ensure their sustainability and competitiveness. The core of effective DMP is the commitment of all those that will be implicated in the outcomes of the DMPL, and involves them in the decision-making and implementation of the DMPL, including establishing a strategic vision and setting objectives that:

Clearly contribute to achieving the vision; Are realistic, achievable and measurable, and are based on the best available information; Take a holistic and integrated approach to the broader social, environmental and economic development goals for the destination; Identify global forces that may have an impact on the destination; Include both short and medium-term activities, as well as long term planning; Deliver economic benefits: - tourism potential: identifies the destination's key success factors, strengths of current tourism supply/demand, external factors and constraints, and opportunities for growth; - business operations: improves potential for business operators (tourism and non-tourism) to improve profitability and operational efficiency; - local supply chains: maximises the proportion of tourism income that is retained locally; - employment: improves the quality of jobs in tourism and how the sector is perceived as a career choice; - enables economic growth in an area and, where relevant, assists in the restructuring and/or diversification of local economies; and - identifies and facilitates private-sector tourism investment opportunities within the destination. Align with community aspirations: manages the pressure of change in the interest of the overall well-being of the community. This may include managing: - challenges to the quality of life for local residents; - provision of infrastructure and public amenities; - local residents' willingness to welcome visitors; and - responsible behaviour by tourists towards local communities. Page 6 of 10

Strengthen environmental management: - contributes to the conservation and enhancement of natural and cultural heritage assets; - identifies appropriate carrying capacities and visitor management plans; - encourages energy and water-use efficiency; - promotes and facilitates reduction, reuse and recycling of waste materials; - seeks to minimise pollution, traffic congestion and litter; and - encourages responsible behaviour by tourists towards the environment. Encourage innovation: - Increases business productivity and efficiency; and - Drives economic growth. Facilitate collaboration: - Enabling effective leadership and partnerships within which the different stakeholders can communicate and work together. Encourage and facilitate continual improvement (capacity building in the destination) This may include: - For individual businesses: improved business practices; - For the destination: improved management skills for destination managers; collection of data to facilitate performance benchmarking; and - For the labour force: enhanced opportunities for skill development, employment and career options; future planning for a sufficient available workforce. Develop business operators' and destination managers' ability to anticipate and respond to risk and crisis; and Encourage political will for an ongoing, progressive and innovative approach to tourism DMP.

8. DMP: Overview of a typical process Although the processes and outcomes of Destination Management Planning (DMP) will vary between regions and destinations, a 'typical' process would take the following steps: Current Situation - Research and Assessment: - Demand-side research: identification and profiling of target tourism markets (existing and emerging); visitor expectations and satisfaction; consumer perceptions; effectiveness of current marketing communications; assessment of external factors affecting the markets. - Supply-side research: assess the full range of tourism activities (products, services, experiences, partnerships) already undertaken in the destination. - Gap analysis: between supply and demand. Identify Stakeholders: Those with an interest in and/or ability to influence the outcomes of a DMP process for the destination. This list would broadly include: - private sector tourism and non-tourism businesses; - local community interests; - tourism organisations local, regional, state/territory and national; - local and regional economic development agencies and Area Consultative Committees; - industry and consumer associations and peak bodies; - environmental and cultural heritage bodies; - local education and training bodies; and - whole of government: local, state/territory and national. Stakeholder Consultations: Identify stakeholders' interests and issues, ability and/or constraints to participating in a DMP process, and preferred outcomes. The facilitation of this stage of DMP can benefit greatly from the involvement of experts in the field. Page 7 of 10

Stakeholder consultations should consider all of the design and development elements of DMP as described above, that are relevant to the destination. Strategic Choices: based on outcomes from research and consultation - Stakeholder consensus on the tourism potential for the destination, and whether DMP will benefit the destination. Note that in some cases where an assessment is made that there is insufficient tourism potential for DMP to be useful, it could also be argued that a DMP process could assist in fostering a fledgling tourism industry in a destination; and - Determine the key strategic objectives for the DMPL. The DMPL: Capture these outcomes in a Destination Management Plan, taking account of consistency with (and adding value to) existing non-tourism development and management strategies and plans operating at the state, regional and local levels. Leadership: Establish all necessary leadership roles, ongoing relationships, management systems, research and reporting processes necessary to implement the development, management, and marketing activities identified. Resources: Where the process highlights additional resources are required to implement DMP activities, the means of providing or attaining those resources must be identified (note that this may include financial and/or in-kind support). Review: DMP should include a continuous process of monitoring against the agreed objectives and regular review in the light of results achieved and changing circumstances, both externally and within the destination

9. Implementation A key element of the Action Plan endorsed by Federal, State and Territory tourism ministers in August 2007 calls for: Development and roll out of a Best Practice Destination Management Planning Framework encompassing States, Territories, RTOs, and Local Government. The research and consultation undertaken in the development of the Action Plan identified that many destinations would benefit from the implementation of a comprehensive DMPL, and access to appropriate expertise and advice to assist with that process. The specialist experience and advice that can assist tourism agencies in the implementation of DMP already exists in the market place. It resides with practitioners in the private and public sectors that have worked for a number of years and have valuable experience in developing and implementing contemporary DMP in many destinations around Australia. That experience and expertise can be accessed by sharing experience and existing best practice processes between State, Territory and Regional Tourism Organisations, some examples of which are outlined below. A number of useful links have also been provided for further information and assistance in developing a DMPL for your destination. 10. DMP: Best Practice Examples To be advised by STOs 11. Further Information, References and Useful links Research Projects Australian Regional Tourism Research Centre, Sustainable Regional Tourism Destinations Project, http://www.regionaltourism.com.au/ARTRC/destinations/dest_project.html

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Strategic Plans and Guides - International United Nations Environment Program, Local Agenda 21: a planning framework for local communities, http://www.uneptie.org/pc/tourism/policy/destination-mgmt.htm European Commission, Tourism Sustainability Group, 2007, Action for More sustainable European Tourism, http://ec.europa.eu/enterprise/services/tourism/doc/tsg/TSG_Final_Report.pdf Department for Communities and Local Government: London, 2006, Good Practice Guide on Planning for Tourism, http://www.communities.gov.uk/publications/planningandbuilding/goodpracticeguide Investment & Development Office, Ontario Ministry of Tourism and Recreation, 2003 Premierranked Tourist Destinations: A Self-guided Workbook, http://www.tourism.gov.on.ca/english/IDO/IDO_images/prtd-workbook.pdf Australian Government Resources Tourism Australia: http://www.tourism.australia.com AusIndustry: the Australian Government's agency for delivering products, services and information that support industry, research and innovation, http://www.ausindustry.gov.au Department of Industry, Tourism and Resources: http://www.industry.gov.au/tourism Department of Transport and Regional Services: http://www.dotars.gov.au Business.gov.au: a whole-of-government service providing essential information on planning, starting and running a business, www.business.gov.au Grantslink: Australian Government portal, with links to a variety of grant programmes for individuals, businesses and communities: http://www.grantslink.gov.au State and Territory Tourism Organisations Australian Capital Tourism: http://www.tams.act.gov.au/play/tourism Tourism NT: http://www.tourismnt.com.au/nt/nttc Tourism Queensland: www.tq.com.au South Australian Tourism Commission: http://www.tourism.sa.gov.au Tourism NSW: http://corporate.tourism.nsw.gov.au Tourism Tasmania: http://www.tourismtasmania.com.au Tourism Victoria: http://www.tourismvictoria.com.au Tourism Western Australia: http://www.tourism.wa.gov.au Publications Ritchie, J. R., and Crouch, G. I., 2006, The Competitive Destination A Sustainable Tourism Perspective, CAB International, Oxfordshire Page 9 of 10

Conference Presentations United Nations World Tourism Organisation, February 2007, International Conference on Destination Management, http://www.destinationmanagement2007budapest.com

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