2008 Seldjan Timur, Donald Getz - A Network Perspective On Managing Stakeholders For Sustainable Urban Tourism
2008 Seldjan Timur, Donald Getz - A Network Perspective On Managing Stakeholders For Sustainable Urban Tourism
www.emeraldinsight.com/0959-6119.htm
Managing
A network perspective on stakeholders
managing stakeholders for
sustainable urban tourism
445
Seldjan Timur
Department of Business Administration, Faculty of Business and Economics, Received 5 July 2007
Eastern Mediterranean University, North Cyprus, Turkey, and Revised 24 August 2007
Accepted 4 January 2008
Donald Getz
Haskayne School of Business, University of Calgary, Calgary, Canada
Abstract
Purpose – This study aims to examine the current network of inter-relationships of stakeholders
representing government, the community and the tourism and hospitality industry, and their
perceptions of critical stakeholders in destination development.
Design/methodology/approach – While the network analysis enabled examination of the
interconnectedness of stakeholders, the stakeholder approach identified the critical stakeholders in
destination development. These two approaches helped determine how the existing relationship
structures of destination stakeholders might influence sustainable destination development.
Findings – The destination marketing/management organizations (DMOs) and stakeholders with
access to or possession of critical resources have the highest centrality in urban destinations. In all
three clusters, local government and DMOs are perceived to hold the greatest legitimacy and power
over others in destination development. It is also found that there is a lack of “bridges” between the
three clusters of industry, government and the community.
Research limitations/implications – The study demonstrates the use of a network analysis
methodology as a potential tool for researchers and managers in examining destination stakeholder
relationships.
Practical implications – DMOs, hotels and attractions stakeholders have the most crucial roles in
achieving inter-stakeholder collaboration for sustainable destination development, particularly
because the many and diverse industry actors trust or depend on them.
Originality/value – There are very few studies that have applied both network and stakeholder
perspectives to destinations to examine the structure of inter-stakeholder relationships and the
potential influence of this relational structure on sustainable destination development.
Keywords Stakeholder analysis, Urban areas, Tourism
Paper type Research paper
Introduction
There is a large body of literature on sustainable tourism. However its application to
urban settings is relatively new. The research on sustainable tourism has concentrated
on natural environments and protected areas, despite the fact that most of the world’s
International Journal of
population lives in urban areas and the majority of travel happens in cities (World Contemporary Hospitality
Tourism Organization, 1999). The market of urban tourism is rapidly expanding Management
Vol. 20 No. 4, 2008
(Paskeleva-Shapira, 2003). The favorable market conditions tempt many city planners pp. 445-461
to make the tourism and hospitality industry (hereinafter the industry) development an q Emerald Group Publishing Limited
0959-6119
important part of urban policy. The growth of the industry in urban destinations DOI 10.1108/09596110810873543
IJCHM presents various challenges such as protection of environment, conservation of
20,4 heritage, preservation of social fabric and cultural values, and maintenance of a desired
quality of life for residents.
The development of tourism that is sustainable in economic, environmental, social
and cultural terms has been repeatedly recommended but researchers have found that
the management and implementation of sustainable tourism (ST) requires the
446 involvement of many partners, and that this collaboration between diverse stakeholders
is both complicated and difficult to achieve (Paskeleva-Shapira, 2001). Managing ST
requires interactions between the public sector (i.e. government bodies such as city
planners, transportation department, etc.), the private sector (tourism and hospitality
firms) and the local residents. This study aims to uncover the current interrelationships
of stakeholders representing three partners of ST development. Respondents in three
cities, representing diverse stakeholders from the industry, government and the
community, were examined as to their existing interconnectedness.
In the ensuing sections, stakeholder theory and the network perspective will be
discussed to provide a foundation for identifying critical stakeholders in destination
development. The network perspective helps determine whether identified critical
stakeholders have existing relationships with the other members of destination
networks. Having discussed the existing links among stakeholders from three clusters
and identified the critical stakeholders, the study concludes by questioning which
organization should take the lead in establishing stakeholder networks in sustainable
destination development.
Sample cities
Three urban tourism destinations, Calgary (Alberta, Canada), Victoria (British
Columbia, Canada) and San Francisco (California, USA) were chosen for empirical
investigation. While a study of a single destination network would be instructive, a
comparison of three cities with varying tourism infrastructure and different planning
approaches yields more understanding.
The City of Calgary was the logical starting point, being the home city, but was also
notable in having a substantial tourism industry yet possessing no tourism policy or
plan. However, the city has substantial environmental programs developed by the
environmental management and community strategies departments at the City Hall.
The City of Victoria was selected because the annual report of the Tourism Victoria
indicated that the principles of sustainability were being applied in this urban area.
The primary reason in choosing San Francisco was the “Sustainability Plan for the
City of San Francisco” that had been developed by the municipal government. In 1996,
over 350 San Franciscans, community activists and people representing many city
government agencies, over 100 businesses, and academia gathered in working groups
and drafted a plan to achieve a sustainable society. In 1997, the goals and objectives of
the sustainability plan became policy of the City and County of San Francisco (www.
sustainable-city.org).
IJCHM A comparison of the major tourism-related features of these three urban
20,4 destinations is provided in Table I.
Data collection
Network analysis requires either the collection of data from all members, or the use of
450 samples (Scott, 2000). In the current research it became clear that it would be almost
impossible to achieve a complete census that would permit examination of all
relationships between stakeholders. There were a finite number of government
agencies to canvass, but a potentially huge and unreachable number of organizations
in the tourism industry and host environment clusters.
To examine existing destination stakeholder relations, a list of stakeholders was
developed a priori using sources such as World Tourism Organization (1993) and
major tourism textbooks. The list consisted of stakeholders from the industry,
government and the community. The alternative was to have a different list named by
every respondent, which might have resulted in some very incomplete answers.
Of the identified target population, a total of 578 (190 in Calgary, 195 in Victoria, and
193 in San Francisco) questionnaires were mailed to stakeholders representing three
partners of ST in the three cities. The surveys were mailed, with instructions that they
be completed by top management. To increase the response rate, non-respondents were
followed up according to the Dillman’s (1978) “total design method”. Two weeks after
the questionnaires were mailed to the respondents, a reminder postcard was sent,
followed by a re-mailing of the entire package to those stakeholders that did not
respond within three weeks. A total of 173 (70 respondents from Calgary, 62 from
Victoria, and 41 from San Francisco) returned surveys were useable.
Partly owing to the sampling design, a majority of responses came from one
stakeholder cluster – the tourism industry. Within that cluster there were fewer
respondents from tourism services or advertising, compared to accommodation and
attraction companies. Unfortunately, one key organization, the San Francisco
Convention and Visitors Bureau (SFCVB) did not respond to this study.
The exact numbers in each cluster are not critical to the network analysis, nor is it
essential that a sample be random. Redundancy in the sample ensures that
all-important links in the network are identified. Saturation is quickly reached,
although minor and peripheral linkages might be missed. Major inter-cluster linkages
are also revealed. Even though a key stakeholder did not respond, many other
respondents identified their links to the SFCVB. The in-degree measure that is used to
operationalize centrality enabled SFCVB to receive ties but they were no longer able to
indicate theirs. But, it is the overall structure and patterning of the network that is of
most interest.
Calgary (www. Approx. 1 million Not-for-profit 11,100 (accommodation Calgary Stampede Nearly 5 million (2006)
tourismcalgary.com) (2006) association; city has one rooms) (2006) (annual event)
board position Business travel is
predominant
Gateway to the
Canadian Rockies
Victoria (www. Approx. 330,000 Not-for-profit 7,000 (accommodation Cultural attractions 3.5 million (Greater
tourismvictoria.com) (Greater Victoria – association; city has one rooms) (2006) Cruise port Victoria – 2006)
2006) board position Provincial capital
British heritage
San Francisco (www. Approx. 750,000 (2003) Not-for-profit; all 32,850 (hotel rooms) Major business and 15.8 million (2006)
sfcvb.org) business leaders (2006) leisure travel
destination
Gateway to wine
country
stakeholders
Managing
Table I.
IJCHM
20,4
452
Figure 1.
Calgary network
Managing
stakeholders
453
Figure 2.
Victoria network
IJCHM
20,4
454
Figure 3.
San Francisco network
Network maps Managing
In Figure 1, Tourism Calgary (the local DMO) and cultural attractions are near the stakeholders
center of the network, closely surrounded by the travel trade, recreational operators,
car rentals, Calgary Airport Authority (CAA), tourism services, Calgary downtown
association, and hotels. Peripherally located in this network are local institutions,
Calgary Convention Center, non-governmental organizations (NGOs), community
groups, B&Bs, natural attractions, motels, rail industry, and Calgary Economic 455
Development Authority.
The Victoria network map (Figure 2) illustrates that Tourism Victoria (the local
DMO), cultural attractions, hotels, motels, recreational operators and institutions were at
the center of the network, while Victoria Conference Center, NGOs, tourism services,
travel trade, and air carriers surrounded them. Also, Figure 2 shows there were no
relational ties (i.e. joint tourism business projects/programs) between, for example, cruise
companies and car rentals, or between B&Bs and the national tourism organization.
In San Francisco’s network (Figure 3), SFCVB, cultural and natural attractions, the
City of San Francisco, hotels and travel trade were at the center of the network;
Moscone Convention Centre, NGOs, recreational operators, entertainment
organizations, and the Chamber of Commerce surrounded them; transportation,
B&Bs, airport authority and institutions were at the periphery. The cruise stakeholder
group was an “isolate” in the San Francisco contact network.
Different patterns of relationships between destination stakeholders were identified
in the three cities. Although network maps displayed DMOs at the center of each
destination’s contact network, other stakeholders that were centrally located in each
city were different. This suggested that key destination stakeholders could be different
in each city and there is no one single network structure for destinations. Calgary has
fewer stakeholders located at the center. Meanwhile, Victoria had a more diverse group
of stakeholders located at the center of the network. A diverse group of stakeholders
would be better not only for representation and involvement of various groups’
interests, expectations and goals in sustainable tourism strategies and policies but also
to ease the challenges that might be faced during the implementation phase.
A second point concerns “who” these central stakeholders were in the networks.
The Calgary network showed that the CAA is one of the significant business partners
in Calgary. This idiosyncratic character of the Calgary network could be explained by
referring information collected through interviews conducted during the first stage of
this study. The CAA is highly involved in tourism and recognizes the importance of
establishing strong contacts with diverse tourism actors.
Victoria’s “inner circle” stakeholders included recreational operators, motels and
local institutions such as financial and consulting companies and the university, along
with the core urban tourism stakeholders such as Tourism Victoria, cultural
attractions and hotels. Interconnectedness of a diverse group of stakeholders reflects a
different character in Victoria. Unlike the other two cities, educational and financial
institutions were also among the central players in Victoria network.
It was also observed that, overall, the San Francisco network had fewer links. This
was partly related to the lower response rate. But, it could also reflect the unique
characteristic of stakeholder relationships in San Francisco. During the interview stage,
it was found that the relatively larger size of San Francisco’s tourism and hospitality
industry was perceived as one of the complexities of the industry. The concerns
IJCHM regarding the size of San Francisco’s tourism and hospitality industry complicated
20,4 establishing contacts to different sectors of the industry. There were very limited
relationships among destination stakeholders within and between clusters. With fewer
links, San Francisco network illustrated a more sparse network than Calgary and
Victoria networks. The local government authority also displayed a different
characteristic in San Francisco’s network. The respondents perceived government as a
456 key player in San Francisco. Although there is no known collaboration between the
industry members and the government other than the regular funding contract between
them this finding might be a result of the sustainability plan that might have positioned
the city as an active player in their environment.
The network maps that provide a summary of the relational ties are also considered
to reflect the basic structure of how the industry interactions in cities function. As will
be seen in the ensuing section, centrality within the network is not accidental, it is a
function of influence or power and it is accompanied by a high degree of perceived
legitimacy. Regardless of small variations that would occur as sampling methods and
response rates vary, results strongly suggest that the positions of stakeholders located
at the center of the networks will be relatively enduring, while the positions of those
peripherally located could be unstable.
Centrality
Network theory argues that structural position in the networks determines
stakeholders’ status or influence in the system. According to Cobb (1988) a
well-connected player in a network has a strategic advantage. Thus, higher centrality
stakeholders are able to manage information flows and influence others. By contrast,
an “isolate” may find itself without significant input, or unable to get timely
information about crucial decisions affecting tourism development.
According to the in-degree based centrality, DMOs were the stakeholders with the
highest centrality in the three cities. They had more contacts to other members of the
network than did the other stakeholders. High centrality measures give the local DMOs
advantaged positions. But the centrality of an actor in a network refers to more than
just interconnectivity, because there is power obtained through the network structure
(Krackhardt, 1990; Wasserman and Faust, 1994). The more the other stakeholders are
dependent upon the DMOs for what they need the more likely it becomes that
stakeholders will view the DMOs as being influential. Furthermore, other powerful
stakeholders become aligned with them. This, in turn, makes the DMOs appear even
more powerful and they could be considered “super powers”.
The other influential stakeholders in Calgary network were the provincial tourism
marketing organization and the hotels stakeholder groups. Having more ties with
hotels stakeholder group indicate that the destination is dependent on their product.
In Victoria, in addition to the local DMO, stakeholders had more ties with the
cultural attractions subsector. With such a strategic advantage, cultural attractions are
more likely to influence destination development in Victoria than other stakeholders.
A more diverse group of stakeholders has this strategic advantage to influence
destination development in San Francisco. The attractions sector included cultural
attractions, natural attractions and entertainment stakeholder group. Again, it is
observed that stakeholders with access to or possession of critical resources have the
highest centrality in the tourism network.
Critical destination development stakeholders Managing
The respondents in each city perceived DMOs to be appropriate, desirable or legitimate stakeholders
stakeholders for destination development. A total of 96 percent of respondents in
Calgary, 94 percent of respondents in Victoria and 93 percent respondents in San
Francisco indicated that their local DMOs should be included in destination
development. Furthermore, in each city, respondents in all three clusters identified
local DMOs to be legitimate. The attractions sector in each city was also perceived to 457
be legitimate. The government agents were the other legitimate stakeholders. In fact,
the findings from three urban destinations suggested that high centrality stakeholders
across destination networks were also perceived to hold high legitimacy degrees for
destination development. However, the results emphasized that DMOs had important
roles in destination development.
In terms of powerful destination stakeholders, the responses from three cities and all
three clusters showed similar results. About 97 and 83 percent of respondents
perceived their local tourism organizations to possess a “very high” and “high” degree
of power over others in destination development. The findings suggested that high
centrality destination stakeholders were also among the top five most powerful ones.
As the network theorists suggested, centrality did refer to power obtained through the
network’s structure (Barley et al., 1992). The empirical findings supported the
argument that high centrality stakeholders were perceived to have more influence than
those that were more peripheral.
Analysis also suggested that local governments’ involvement in destination
development is appropriate, since they are among the most powerful stakeholders. In
practice, the trend is toward decreasing levels of government involvement in tourism
(Swarbrooke, 1999). Tourism organizations are being privatized, and industry-led
organizations put emphasis on destination marketing rather than destination
development.
The hotel stakeholder group was also perceived to be a powerful player in
destination development by each cluster in each city. This could be because of the
influence they have over DMOs, which stems from their corporate status and financial
power. Furthermore, since hotels are the major contributors to the superstructure of
urban destinations, the destinations are dependent upon their product.