A Guide to the NEST Destination Management Tool

Transcription

1 G1 A Guide to the NEST Destination Management Tool N E S T Network Evolution for Sustainable Tourism

2 Preface This is part 1 of a set of 4 guides that constitute the Destination Management Model developed in the NEST project. NEST was implemented over a period of 2 years in 4 Nordic local tourism destinations Lillehammer (NOR), Söderslätt (SWE), Suomenlinna (FIN) and Præstø Fjord (DEN). The NEST Destinations Vital Statistics A local tourism destination is a physical space in which a visitor spends at least one overnight. It includes tourism products such as support services and attractions, and tourism resources within one day's return travel time. It has physical and administrative boundaries defining its management, and images and perceptions defining its market competitiveness. Local destinations incorporate various stakeholders often including a host community, and can nest and network to form larger destinations. WTO Tourism Destination Management Think Tank, 2002 Lillehammer Præstø Fjord Suomenlinna Söderslätt Framework Cooperation of Cooperation of Præstø, Within Helsinki Cooperation of Vellinge, Lillehammer, Gausdal Fakse and Rønnede City Council Trelleborg, Skurup, Svedala and Øyer municipalities municipalities and Ystad municipalities Area km km 2 3 km km 2 Type of destination Rural Rural & coastal Coastal Rural & coastal Resident population No. of tourist overnights (2002) No. of day visitors (2002) Unknown Unknown Project coordinator Norwegian School RAMBØLL Dept. of Geography, International Institute for Industrial of Management (BI) Helsinki University Environmental Economics (IIIEE) Local coordinator Lillehammer Miljø East Denmark Tourism Governing Body of Vellinge Municipality Suomenlinna NEST stands for Network Evolution for Sustainable Tourism. The aim of the project has been to analyse the role that social networks of tourism professionals, public authority officials and other key stakeholders can play in promoting a sustainable tourism development in local tourism destinations, and to develop a management tool to facilitate this process. The NEST project has been co-financed by the Nordic tourism industry and Nordic Industrial Fund. Sustainable tourism development is a development that meets the needs of present generations of users of the Nordic tourism industry, without compromising the ability of future generations to meet their own needs. Sustainable tourism development contains 3 mutually dependent dimensions: an economic, a social and an environmental dimension. A sustainable development entails that a better integration of the 3 dimensions is established. Towards a Sustainable Nordic Tourism, Proposal for a Common Nordic Sustainable Tourism Strategy, Tema Nord 2001:546 The views expressed should not be regarded as stating an official position of the Nordic Industrial Fund or the Nordic Council of Ministers. The other guides in the NEST Destination Management Model, and more information on the NEST destinations can be found at: For more information on NEST contact Ian Salter, RAMBØLL: ins@ramboll.dk 2

3 Why Does Your Destination Need Management? Managing a local tourism destination in terms of having a clear idea of its performance is an important task, though an often-neglected one. It s important because the destination is the product that the tourists identify with when they organise their holiday. Visitor surveys carried out during the NEST project showed that the tourists come to Nordic destinations primarily because of the nature and the environment but also because of the cultural heritage and the social aspects. It s therefore impor- tant to manage these aspects in the destinations in order to realise the full potential of the tourism industry and to ensure its sustainability. The aim of this guide is to present the NEST Destination Management Tool. Using this guide, you will have the basic essentials necessary to start managing tourism in your destination, and to keep it on track. Destination Networks Traditionally tourism management focused on working with accommodation in a region, mainly involving the local hotels and campsites. However, the destination experience is more than just the accommodation it encompasses the countryside, towns and shops, infrastructure such as roads, as well as transport. These organisations also need to be involved in the destination management to ensure that the different aspects are sufficiently covered. Tourism Economy Tourism Industry Accommodation, Catering, Entertainment, Recreation, Transportation, Tour Operators, Tourist Information Centres and Regional Development Agencies Retail Trade, Printing, Publishing, Financial Services, Sanitation Services, Furnishings and Equipment Suppliers, Security Services, Rental Car Manufacturers, Administration, Ship Building, Aircraft Manufacturing, Resort Development, Glass Products, Iron & Steel, Computers, Beverage Supply, Laundry Services, Plastics, Oil & Gas Supplies, Chemicals, Textiles, Metal Products, etc. The diagram above shows the composition of the private sector of the tourism industry and economy. The term tourism industry is reserved for those organisations that earn the majority of their income directly from tourism. The term tourism economy includes all the organisations that indirectly benefit from tourism in the destination (although they might not think of themselves as profiting from tourism). The NEST Destination Management Tool is based on the networking concept. Social networks, which gather the various interests in the destination s tourism economy and industry, offer a means of bringing the various interests together around a common table to discuss developments in the destination. The Network s Role In the NEST Destination Management Tool, the role of the network is to plan, implement and evaluate activities that can promote the sustainability of a destination. As such the network is the driving force behind work with sustainable development in the destination. Much research has been done into the dynamics of social networks and their use in tourism development. The results indicate that social networks offer: Public authorities the chance to manage their destinations decentrally. Organisations the chance to demonstrate a socially responsible approach. A grow bed for innovation and product development in the destination. The chance to exchange experiences and follow-up on work being done. In the NEST project, the networks used in the local destinations typically consisted of the following types of members: Campsites and hotel owners Regional Development Agencies Tourism Information Centres Museum staff Local Agenda 21 coordinators Ranger and Green Guides both from private companies and public authorities Nature conservationists from County Councils 3

4 Networks Dynamics A good way of starting-up a network is to organise a public meeting to present ideas for the future development of the destination, and the need for a sustainable development of tourism in the future. At the meeting, the network can be formed from interested individuals. Membership of the network should be free, each person contributing with their own time. The place for the meeting can be rotated between the members of the network, so that the costs of coffee etc. are shared. It s a good idea to identify an anchorperson for the network relatively early on. That person should live in the area and have a thorough knowledge of the constraints on tourism in the destination, as well as the opportunities. The anchorperson is typically from a public authority; as they are normally able to allocate resources for the extra work that this task entails. The anchorperson is responsible for sending out invitations to take part in the network meetings, taking notes and writing the Minutes of the Meetings. Other work should be assigned to different members of the network. Obviously taking part in a Destination Network requires a commitment from those involved, in terms of their time. Funding is available to support networking in tourism destinations, and applying for this funding could be one of the first activities of the network (see G2. A Guide to Financial Support for Nordic Tourism Destinations and Businesses). Golden Rules for the Destination Network The network cannot be exclusive it must be open to all those that want to participate. Conflicts of interest may arise, for example between competing accommodation units try to see the bigger picture working with the destination will benefit all. Develop an agenda for each meeting. Remember to leave plenty of room for discussion at the meetings. Take Minutes of each meeting and circulate to all in the network. The NEST Destination Management Tool The NEST Destination Management Tool is presented here. It s based on the Deming quality management cycle. Using the tool, a Destination Network should first of all carry out the start-up phase and then progress into the management cycle itself. The cycle starts with the planning phase, which is followed by an implementation phase and checking and corrective action phases. When these activities are complete, one wheel of the cycle will have turned and the destination will return to the planning phase. The tool is therefore a continuous loop, promoting continual improvement in the sustainability of tourism in the destination. The NEST Destination Management Tool represents an ideal state for the destination management. However, working with sustainable tourism is a long term commitment, and experience shows that fulfilling all of the activities described in the management tool in one turn of the cycle is very ambitious. For this reason, we have developed G4. A Guide to Tourism Excellence, Step-by-Step. This guide enables a Nordic tourism destination to benchmark its level of excellence against a standard, in terms of the activities that it has implemented, and thereby set its level of ambition. Start-up: Network formation Tourism Potential Analysis Vision process Destination Strategy Corrective Action: Revise actions if necessary Report to Destination Network Planning: Baseline Analysis Action Plan Checking: Check implementation of actions in Action Plan Implementation: Implement Action Plan Report to Destination Network 4

5 Start-up Network Formation The first activity should be to establish a core network that will work with tourism development and sustainability in the destination. To be able to do this, it will first of all be necessary to define the destination area, if this has not been done already. A local tourism destination can either cover part of the area within one council, for example the island of Suomenlinna in Finland, which is within Helsinki City Council, or it can cover an area that spans several municipalities, for example Söderslätt in Skåne, which covers 5 municipalities. For practical reasons, it s a good idea if the destination boundaries follow the municipal borders, as this will ease data collection in the planning phase. The destination s definition is crucial for identifying the organisations that should be involved in the destination management. Key members of the network include representatives from public authorities in the destination, as they have access to the political process which is the main decision making body in the destination. Without political support, it will be difficult to achieve anything. Other key members include the Tourist Information Centres as they have direct contact with the tourists and know their expectations, as well as the tourism accommodation providers. Contact can then be taken to the relevant organisations identified, explaining the basic idea of working with the sustainability of tourism in the destination, and the core network formed. Later on in the start-up phase, it could be a good idea to expand the network membership by holding a public meeting to present the vision and strategy for the destination. Increasing the size of the network will increase the resources available to the network. Tourism Potential Analysis The first activity that the destination network should undertake is a Tourism Potential Analysis (TPA) for the destination and to document this in a report. The table below explains the components that the TPA should include: Component Information needed Why? Destination geography Graphic image showing destination boundary. Give the destination an identity and give the network members a Background information on destination population, feeling of belonging. employment etc. History of destination Basic description of historical development of destination Can identify potential points of interest that can be used in the vision and points of interest for example the Danish destination making process, and also in future tourism product development. Cultural NEST project was the base for a charismatic rebel tourism is a primary market for Nordic countries. who fought a Swedish invasion force in 1600s. Stakeholder analysis Names and addresses of all tourism enterprises and Useful for identifying potential members of network and correspondence. establishments in the destination and authorities. Tourism facts Gather available data on tourism in the destination. Relevant information on annual overnights, country of origin of tourists, The information can be gathered from the County Council visitor numbers at local attractions, tourist satisfaction etc, is useful to or from the national statistical organisations. confirm the type of tourism. SWOT analysis Using all the above points a SWOT analysis can be made. The SWOT analysis condenses all the information provided by the other (Strengths, Weaknesses, The strengths and weaknesses are internal to the destina- components and identifies the core areas of tourism potential, Opportunities, Threats) tion and therefore it s possible to control them. The as well as areas that need to be worked with. opportunities and threats are external to the destination and therefore more difficult to influence for example threat to international travel from terrorism. The TPA is a snapshot of tourism in the destination. As such it provides the foundation for the network, by identifying relevant organisations and by giving information needed to initiate the vision and strategy process. The TPA can be deepened by carrying out a Visitor Survey. This would provide a unique insight into the type of tourists that are coming to the destination, what their expectations are and whether they are satisfied with the quality of the tourism products that the destination has to offer. For the results of a draft visitor survey carried out in the Danish NEST destination, please see the NEST website: Vision Process In the vision process, the network should develop a vision for the future of tourism in the destination. The vision could include descriptions of: A scenario of tourism in the destination in The core values that attract the tourists and will be used to characterise the destination in the future for example well being or oasis. These values must be built on in the destination strategy. The type of tourist that the destination wants to attract. How tourism will benefit the local communities. 5

6 The Destination Network should meet to discuss the vision for the destination and to achieve a consensus. Without a consensus it will be difficult to work constructively in the destination. Destination Strategy Based on the vision, a concrete strategy can be made for the destination. It should be centred on the values specified in the vision document. To be effective, the strategy needs to be processed and validated in the political system in the destina- Planning Baseline Analysis The Destination Network needs to measure the performance of the tourism industry in the destination, in terms of its impacts on the sustainability of the local region. The main aim of the Baseline Analysis is to fix the start point for work in the destination, and to identify any opportunities or problems that need to be addressed in the action plan. Experience shows that the first Baseline Analysis is resource intensive, taking approximately 6 weeks full time work. Although once the first has been done, it only has to be updated in the future. Structure The Baseline Analysis is a great method for gathering lots of relevant information on tourism and its impact on the sustainability of the destination into one report. It s recommended that the report is structured in this way: tion, i.e. by the various councils. Without this, the strategy will have little impact. The strategy should include: A definition of what is understood by sustainable tourism. A commitment to sustainable development of tourism in the destination. A commitment from local municipalities to support the strategy. Short term and long term targets for tourism in the destination. Future activities in the form of the Action Plan (see below). Tourism and the Economy - Information on overnight stays in relevant accommodation categories; the total expenditure by tourists in the destination per year and the number of tourists from different nationalities. Natural and Cultural Heritage - Information on protected pre-industrial heritage sites in the destination; nature conservation initiatives in destination and bathing water quality. Tourism and the Environment. - Information on water, heat and electricity consumption in tourist accommodation; waste from tourist accommodations. For more guidance and inspiration from the work done by the NEST destinations, please visit the NEST website: SustainableTourism Indicators Sustainable Tourism Indicators are measurements of the performance of the destination in different categories. The NEST project has developed 21 sustainable tourism indicators. These are listed below and can be used in the Baseline Analysis. Indicator Measurement (for a given year) 1 Area of destination km 2 2 Resident population Number of people 3 Tourists Number of people 4 Room occupancy rate Room occupancy rate in % 5 Tourism s economic contribution to local economy %age of total local economy (in destination) 6 Employment in tourism industry Total number of man years 7 Range of labelled local products Number of products labelled 8 Attractions Number of tourist attractions 9 Ecolabelled ecotourism or other tourist package activities Number of products 10 Natural/cultural/historical guided tours Number of tours carried out 11 Ecolabelled restaurants Number of restaurants 12 Accommodation businesses with ecolabel or certified Number of businesses environmental management system 13 Blue Flag beaches and marinas Number of beaches and harbours 14 Protected nature conservation areas % of destination s total area 15 Red listed animal species Number of species 16 Signage translated to different languages % of signage in destination translated into different languages 17 Bike path and footpaths km 18 Bicycle hire Total number of bikes for hire 19 Eco-friendly produced marketing information % of the total number of publications that is produced in an eco-friendly manner 20 Action plan approved for sustainable tourism Yes or no 21 Security Total number of thefts (house, car and shop) and violence against person reported to the police in destination 6

7 Data Collection Methods Unless the destination is an island, data collection may well prove to be difficult. Information on for example hotel overnight stays gets reported from the larger accommodation businesses in the destination to the national level, where it s aggregated into overall figures. It s then difficult to find out what the original figure was unless you are willing to pay the national statistics body! One means of solving the issue of data gaps is to send a questionnaire to the accommodation businesses in the destination. This will give figures on the overnights stays, where the tourists come from and also room occupancy rates. Experience shows that not all enterprises have the time necessary to complete and return questionnaires. A quick phone call to them by the person responsible for gathering the information may get the information required. However, it s likely that estimates will have to be made to enable a general figure to be developed. Another challenge is to develop a figure on tourism expenditure. The tourist organisations in most Nordic countries have key figures for how much tourists staying in the different categories of accommodation spend per day. If the number of overnights per category is known in the destination, then a simple calculation can be made to derive total expenditure. Action Plan The results of the Baseline Analysis should be presented at a network meeting, and then a discussion generated on what opportunities or problems need to be worked with more in the next phase of the management cycle. This will result in an Action Plan for the destination. The Action Plan should be detailed enough to describe the tasks required for each action, who is responsible for the task as well as for the overall action, a timeplan for the actions and a budget. It s also a very good idea to develop some indicators to measure the success of the actions in achieving their objectives for example the number of new signposts set-up. The Action Plan should be seen as an appendix to the Destination Strategy Implementation The task at this stage in the management tool is to implement the priority action(s) identified in the Action Plan. This work phase could typically take place during the low season for the destination, depending on which type of tourism it caters for, and the urgency of the action at hand. In the NEST project, the issues that the Destination Networks decided to work with included environmental management in hotels and tourist attractions, and labelling of locally produced rural products. During the implementation of the priority actions, it s a good idea to hold coordinating meetings in the Destination Network, to follow progress. Each action might also require the establishment of sub-networks to implement the individual tasks. Checking and Corrective Action Revise Actions After a specified period of time the actions can be reviewed to determine their success. This can be achieved by referring back to the success indicators developed for the priority actions, as described in the Action Plan. Report to Destination Network The various action owners should report back to the Destination Network on the progress made in their actions, and decisions can be made as to whether the action is completed or needs to prolong its lifetime. Continuation After the Checking and Corrective action phases have been completed, the first full turn of the management cycle will have been taken. The next step, in continuation of the management tool, is to begin a new Planning phase. Ideally, this will start with the update of the Baseline Analysis to identify new opportunities/problems to be tackled in the next implementation phase. The Baseline Analysis will therefore lead to new projects entering the Action Plan. 7

8 Contact Points For more information on destination management, it is recommended that you visit the following specific websites: NEST (be inspired by work done by destinations so far in NEST project) DestiNet (theme on Management Systems) Towards quality rural tourism, Integrated Quality Management of rural tourist destinations, European Commission, Brussels, 1999 (downloadable at DestiNet theme on Quality in Tourism) Images: Nordic Council of Ministers, East Denmark Tourism, RAMBØLL, Helsinki University and Vellinge Municipality Production: Skalbo Communications, Tel: