WEEK 10: GUIDELINES ON
THE MODEL APPROACH TO
TOURISM PRODUCT
DEVELOPMENT
COURSE PACK
NOTE TO READER:
This Course Pack is intended for academic use by the academic community of the College of
Hospitality and Institutional Management, Our Lady of Fatima University. Any alterations to
the document renders the pack invalid, unless duly edited by the Course Developer.
First Edition, 2021
Arjay A. Punongbayan, CTP, CGSP
CHAPTER 4B
Guidelines on the
Model Approach to
Tourism Product
Development
UNIT OF COMPETENCY: Describe the strategies and the process of tourism
product development
Learning Outcomes: 1. Draft the Tourism Product Development Plan
Course Pack Contents: Tourism Product Development Planning Consultation
The Tourism Product Development Plan
Moving From the Macro to the Micro Level
Guidelines on the Model Approach to Tourism Product Development
Tourism Product Development Planning Consultation
Tourism products need to meet visitor expectations in terms of taste and standards. They must
provide satisfactory returns for investors and profits for operators. They must also be
acceptable to the local communities of the areas on which they are located or take place.
Getting acceptance and support from the residents of tourism development areas requires:
1. explanation both of the merits and impacts of possible developments through aseries
of consultative events, and willing engagement in dialogue with local communities; and
2. openness to the views expressed through these consultations and demonstration of
willingness to make adjustments to proposed developments, or take other appropriate actions,
where the case for change or alternative approaches is well made.
As noted in the prior sections, public consultation can take many forms – surveys, public
meetings, group discussions with local interests, media features and feedback from these
activities. The choice of methods of consultation will depend on numerous factors such as the
scale and location of the proposed development. Where the new attraction or activity is in an
area with a high population and/or where the natural environment is likely to be impacted,
extensive consultation will be necessary. Similarly if a string of developments is under
consideration in execution of a regional plan, then consultation will need to be thorough and
embracing of all elements of local society. For one off developments of relatively modest scale,
an announcement in local media followed by an open forum meeting at which all interested
parties are invited to participate may be sufficient.
The pitfalls to avoid in stakeholder consultation for new product developments include:
• relying extensively on impersonal methods – nothing beats senior planning officials and
project proponents consulting with local communities in person;
• failure by central government officials to brief themselves fully about local
circumstances – local stakeholders are more likely to be won over to the proposed development
if its proponents, especially those from central government, indicate a full appreciation and
knowledge about the economy, society and issues of the community where the development
is being proposed;
• failing to work through local tourism officials – consultation should indicate a seamless
interconnection from the centre to the local level of government;
• failing to involve the existing local tourism stakeholders – ultimately all tourism operators
are interlinked and constitute local product clusters so new products can both complement and
supplement existing ones;
• failing to consult with the grassroots in communities – this is how the community’s
values can best be identified and product development shaped in line with what the community
will welcome as a valuable asset;
• undertaking inadequate consultation – a range of means of consultation is necessary
as not everybody who would like to attend will also be available if only one consultative event
is undertaken, while others may adopt a ‘wait and see’ attitude only expressing their views after
seeing a media feature about the proposal.
The structure indicated earlier in this chapter can represent the most effective way of ensuring
that product development is fully integrated with other existing and planned developments in
the broad region. Such a structure involves the establishment of a product development
implementation committee with close links with central government and neighboring areas,
both within and adjoining the destination, to follow through product development proposals,
including the consultation with local interests. The inclusion of representatives from New
Zealand on Australia’s Standing Committee on Tourism is an illustration of the recognition that
tourists do not structure their trips according to administrative boundaries, and that neighboring
countries are interdependent.
The Tourism Product Development Plan
• Tourism Product Development as part of overall tourism development planning
As indicated in earlier sections of the handbook, the interdependence of the different elements
of tourism necessitates the comprehensive and integrated planning for tourism. A new product
developed in isolation cannot have any certainty that it will succeed since it will depend inter
alia on:
• access to the site;
• the availability and recruitment of appropriate personnel;
• the extent to which it complements and supplements the existing (and other planned)
tourist attractions and activities in the area; and
• how competing destinations might respond to the development.
Tourism product development is part of tourism development planning which itself is a
component of a destination’s overall socio-economic planning. The product development
process for the standard destination consists of a series of steps in the planning process:
1. Place Audit comprising a series of basic destination analyses (e.g. PEST, SWOT,
TALC) to produce a clear and detailed picture of the present situation and the likely future
options for growth and the threats to these opportunities being realised. The analyses should
be undertaken in full initially and reviewed and revised on a continuing basis.
2. Vision and Goals based on a clear understanding of what the destination society wants
the community to become, and where tourism fits within the vision. Long term horizon.
3. Strategic Directions identified to achieve the overall vision and the specific goals for
tourism (and other sectors). Mid-to-long term, taking account of the long lead times for much
tourism infrastructure, necessitating a clear understanding of likely future trends and
developments that will impact the destination.
4. Development Plan outlining the range of developments necessary to achieve the
strategies, including those related to tourism attractions and activities as well as the range of
support developments necessary to bring these to fruition. Mid-term planning (3–5 years) is
required because the continuously changing environment for tourism is likely to render detailed
specification for a longer term out-of-date. The Development Plan needs to be reviewed
annually and adjusted as necessary e.g. a rolling, iterative process.
5. Investment and Funding Plan identifying the portfolio of investments needed to bring
the plan to fruition, the likely sources of finance, and the incentives that might be available to
encourage and facilitate private sector investment.
6. Implementation and Control specifying the actions necessary to bring the proposed
developments in fulfilment of the strategies to fruition. The action plan will identify each step
and the entity that will lead the action and those that will play a supporting role. Though the
action plan may be spread over a three year period, it should be divided into annual programs
so that progress can be monitored expeditiously and any remedial steps taken to address
actions that have not been fully realised.
The selection of the optimal Tourism Product Development strategy
In identifying the strategy > development plan > implementation process related to Tourism
Product Development, a country may select a number of strategies geared to expanding the
provision of things At the same time, it may seek to establish one or more flagships, recognising
that these can boost a destination’s image; while, creating series of clusters and circuits.
Two of the most important principles in selecting the products to be encouraged are:
1. Creating a ‘mix’ of tourism products because having a range of things for tourists to
see and do can help to lessen dependence on a small number of markets and market
segments, as well as reducing seasonality and meeting the desires of those tourists who want
a range of experiences when choosing a destination. While their predominant reason for taking
a holiday may be the beach or the skiing, many of them are demanding ‘more’ by way of
supplementary attractions and activities in the destination. Ireland identifies the following
categories of tourist experience: urban culture, gastronomy, ‘wellness’, ‘soft adventure’, arts
and events, self improvement, heritage, rural culture, and ‘hidden’ Ireland. Its product mix seeks
to exploit each of these aspects in order to give tourists a more fulfilling experience when
visiting the country.2
2. Getting the right ‘mix’ of tourism products is of the utmost importance because one
or more flagships can act as attractors bringing tourists into the destination while clusters and
circuits based on themes and/or geographic areas can provide the extra dimension to the
destination’s offering and help spread the benefits of tourism across the destination rather than
have it concentrated in the resort area. Any product developed in isolation from a destination’s
existing offering is unlikely to realise its full potential. By broadening the appeal of the
destination and complementing existing products new developments can attract more tourists
to the area than if they were not linked to the other products available.
Review, adjust and add products
Much stress has been laid on the fact that tourism is both evolving and changing in response
to the many influences and determinants outlined in chapter 2 – and that, furthermore, these
developments are both occurring rapidly and involving major shifts in trends. One of the key
factors that causes these changes in the marketplace is product developments in competing
destinations.
This scenario makes it imperative for destinations to closely monitor its tourism sector and how
well its tourist product offering meets the requirements of its visitors vis-à-vis its main
competitors, and how new product developments in other destinations affect the
competitiveness of the destination. While long term planning is a prerequisite for successful
destination tourism development, it is equally important for destinations to have the flexibility to
adjust and add to its tourist product inventory in line with market tastes and trends.
Implementing the plan
Strategy needs to be converted into an action plan with clear implementation responsibilities
allocated
– easier to do in small destinations than in larger ones! The action plan should list each
action along with details of: who is responsible; how the action is to be implemented; what
budget will be needed; and over what time frame will the actions be undertaken. A short-term
horizon is needed for Tourism Product Development and marketing action plans because of
the need to be able to respond to the many influences on, and determinants of, a destination’s
tourism sector which cannot be anticipated when the initial plan is drawn up.
Members of the regional tourism development implementation committees should be drawn
from across the region, chosen to represent the key agencies involved in the development and
promotion of tourism to the area e.g. Chambers of Commerce, local municipalities, community
leaders, parks, arts and culture, nature-based and historical entities, tourism and hospitality
operators.
The regional tourism development implementation committees should liaise:
• with the central product development division;
• local authorities in the region;
• with corresponding organisations in adjacent product development areas and in
neighbouring countries, where relevant;
• with existing bodies directly or indirectly involved with some aspect of tourism; and with
prospective investors/developers wanting detailed briefings on the region’s tourism
prospects.
As the region grows and becomes a substantial destination in its own right, responsibility for
the development of tourism in the region may be best achieved through the consolidation of
existing agencies into a single regional tourism organisation, though its relationship with the
central product development division and the product development forum should not change.
Creating the skills to deliver tourism products
No plan can be implemented without personnel who are knowledgeable about the marketplace,
the needs of tourists and the technical skills required to bring a project idea to fruition. Human
resource development in the area of tourism through education and training programmes is a
prerequisite for the development and operation of sustainable Tourism Product Development.
The following education and training activities are based on Fáilte Ireland’s six principles for
human resource development in its Tourism Product Development strategy:
• Support workplace-focused learning: Support product development through workplace-
focused learning interventions e.g. ‘action learning’, learning networks and on-site learning.
• Identify new skills needed: Identify the skills needed as customer demands change and
products evolve e.g. a destination may identify new opportunities requiring specific skills e.g.
adventure activities, health and wellness products. The destination authorities should play a
role in interacting between education providers, relevant professional bodies, and regulatory or
standards boards.
• Provide training for SMEs: Provide targeted training for SMEs to strengthen electronic
technology skills as a key enabler of product research, product development and product
promotion.
• Support craft skills training: Support crafts skills training as a key input to the tourism
product. Effective craft skills are essential to maintain consistent standards across the sector.
It is particularly important that further education deals with the emerging trends in tourism.
• Review management training: Conduct a fundamental review of systems and practices
in management training and education in the tourism sector.
• Establish ‘start-up’ incubation fund: Establish a program to provide ‘start-up’ and
incubation business assistance to suppliers of products in new opportunity areas.
Financing the plan
A critically important component of the plan will be the investment and funding aspect. The
possible sources of finance need to be investigated and the applicable terms and conditions
established before the plan is published. In this way, conversion of the plan components into
an action programme can be realistic and achievable.
There are strong motivations for the public sector to invest in tourism infrastructure and
facilities. On one hand, the provision of basic infrastructure – particularly transport services –
serves to bring in more tourists, income and jobs for the local economy; while the public
exchequer benefits from tax revenues from workers (and the businesses that the infrastructure
has helped to sustain) and reductions in unemployment benefits. While it is not essential for
a single agency to be responsible for all types of public sector investment in, or related
to, tourism, such investment for tourism projects should be co-ordinated through a
single body.
Moving From the Macro to the Micro Level
Much of the process outlined for the model destination focuses on the broad – macro – level,
rather than the specifics for individual product developments. There are three interlinked
reasons for this approach:
1. the development and investment conditions need to be in place and appropriate for new
developments;
2. new product proposals need to be in line with the destination’s policy and strategy for
the sector; and
3. they should have a good ‘fit’ with the existing product range, serving to complement and
extend the appeal of the destination.
Unless these conditions are met it is unlikely that the product developments will be truly and
fully sustainable.
There is, of course, no break between the overall planning for the destination and the
assessment and implementation of individual products. The process is interwoven but for the
purposes of clarity, the chart below illustrates the different steps necessary at both the macro
and micro levels and the optimal linking mechanism.
Figure 4.1 Macro and micro tourism product planning process
Macro development plan Link Micro (individual product)
Product concept identity
Market research (studies,
intelligence)
Consultation National/regional/local
(public, private/social
partners, community)
community)
Pre-feasibility and feasibility studies
Co-ordination to determine viability,sustainability
mechanisms and prospectiveinvestment
Implementation (full
co-ordination)
Source: Tourism Development International.
Table 4.2 Key steps in developing individual tourism products
1. Product concept By entrepreneur, community, local council, regional tourism coordination committee
development through ‘brainstorming’ looking for gaps in the supply of tourism products, local
attributes that can provide a competitive advantage etc.
2. Informal assessment Consultation with national/regional/local government, private sector operators e.g.
chambers of commerce, trade associations, individual suppliers to and operators in
leisure, lodging, restaurants, attractions and retail, and local residents
3. Market research Observation (e.g. of users of similar attractions/activities, and of the present ‘mix’ of
visitors to the area), desk research (e.g. market intelligence comprising tourism
statistical and studies for similar attractions/activities accessed through the NTA/NTO
or other source), primary research (as partner in omnibus or sole commissioner), field
visits (e.g. to comparable attractions/activities in other locations)
4. Formal assessment Market (e.g. is there a sufficient market? does the product have a distinctiveness that
will give it a USP? will it constitute a good ‘fit’ with, and add to, other tourist products
in the area?) strategy and support (is it in line with the destination’s overall tourism
development strategy? are there any incentives or other support available?)
sustainability (e.g. will it be approved by the local population? will it provide good
economic and recreational opportunities for local residents? will it be ecologically
sound with a low carbon footprint? are the necessary resources for its development
and operation– particularly workers – available locally?) economic and financial (e.g.
will it be financially viable? will it make a significant economic contribution to the
local area and broader region? will it be financially viable? are there ready sources of
finance
not forwardavailable?)
this document outside of ETC extranet.
5. Feasibility study Detailed design drawings, preparation of detailed market analyses and assessments,
and financial projections for presentation to prospective funders
6. Planning application Submission and approval of design concepts and development plans
7. Development Letting of contracts for the construction and management of the product
development
8. Marketing and Preparation of marketing and promotion plan in consultation and full coordination
promotion with national and regional tourism promotional agencies, initial public relations and
promotions
9. Product launch Initial soft opening for local residents followed by full launch with media and travel
trade invited (e.g. national and international, as appropriate)
