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Strategy for Tourism. Part 1 Unit 1 Introduction and Overview. Module Aims.

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strategy for tourism

Strategy for Tourism

Part 1

Unit 1

Introduction and Overview

module aims
Module Aims

The aim of the module is to provide an opportunity for students to understand, apply and critically evaluate strategic analysis for tourism organisations and destinations. The examination and analysis of particular tourist organisations and destinations will provide a basis for understanding and critically evaluating the factors that can contribute to successful strategy. Students will be able to evaluate strategies, their appropriateness and the issues that will determine whether or not they are successful.

module outcomes
Module Outcomes

Intended Learning Outcomes

On successful completion of this module the students will be able to:

understand the theory and practice of strategy in tourism

develop appropriate strategies based on critical situational analysis

provide an evaluation of the strategies pursued in different tourist contexts

identify and evaluate the critical success factors

there are 12 units in this module
There are 12 units in this module

Part 1 Strategic Purpose

Introduction to strategy

Mission and purpose

Culture and strategy

Part 2 Strategic Analysis

The external environment: PEST

The external environment: Competition

The internal environment: Capability

Part 3 Strategic Choice

Strategic options

Strategic direction and methods

Strategic evaluation

Part 4 Strategic Implementation

Organising and resourcing

Managing and monitoring

Strategy in action

part 1 introduction
Part 1: Introduction

Unit 1 provides an introduction to the subject and introduces a framework for examining the whole strategy process based around four key component parts of the strategic process:

strategic purpose

strategic analysis

strategic choice

strategic implementation

These four areas in turn provide the headings for the four parts of this book.

Unit 2 examines in detail the concept of strategic mission. It analyses the aims and purposes of tourism entities and introduces the idea of stakeholders.

The relationship between culture and strategy is investigated in Unit 3

unit 1 objectives
Unit 1 Objectives

After studying this unit and related materials you should be able to understand:

the meaning of strategy

the process of strategy

the importance of strategy

the contexts and uses of strategy in tourism

competing approaches to strategy

and critically evaluate, explain and apply the above concepts.

case study 1 the tourism strategy for new zealand10
Case Study 1: The Tourism Strategy for New Zealand

The New Zealand Tourism Strategy 2015 is guided by its vision statement:

“In 2015, tourism is valued as the leading contributor to a sustainable New Zealand economy”.

But a vision needs unpacking into more specific outcomes and for NZTS 2015 these are:

“New Zealand delivers a world-class visitor experience

New Zealand’s tourism sector is prosperous and attracts ongoing investment

The tourism sector takes a leading role in protecting and enhancing the environment

The tourism sector and communities work together for mutual benefit”

strategic planning the elements
Strategic Planning: The Elements

There are four key elements of corporate strategy:

Strategic purpose

Strategic analysis

Strategic choice, and,

Strategic implementation

strategic purpose
Strategic Purpose

This is often defined by an organisation’s mission which includes:

what the organisation is trying to achieve

what its purpose or aim is

where it is trying to head for in the medium to long term.

Mission is influenced by



nature of business

nzts 2015
NZTS 2015

In the case of NZTS 2015 the mission (in this case called vision) is that:

“In 2015, tourism is valued as the leading contributor to a sustainable New Zealand economy” (p. 5)

Key contributors to NZTS 2015

The Tourism Industry Association

The Ministry of Tourism

Tourism New Zealand

strategic analysis
Strategic Analysis

This involves consideration of the major influences upon the organisation's success in terms of

Resources (capability), and

Operating environment

Strategic analysis is concerned with analysing

the strengths and weaknesses of an organisation’s internal resources and

the opportunities and threats posed by its external operating environment.

nzts 201515
NZTS 2015

NZTS 2015 identifies four significant threats in its external environment.

The impact of travel on climate change.

The greater use of IT by consumers.

The trend towards higher fuel prices.

The the highly competitive nature of tourism destinations

strategic choice
Strategic Choice

This is concerned with

generation of strategic options

evaluation of strategic options, and,

selection of strategy

nzts 201517
NZTS 2015

The strategic option favoured by NZTS has moved from mass tourism (where price is a major consideration) to quality / differentiated tourism (where visitor and host experience is a major consideration).

The “100% Pure New Zealand” brand (p. 10) remains a central part of the strategy

The following link shows the TV “100% Pure” for New Zealand

strategic implementation
Strategic Implementation

This is concerned with:

resource planning

organisational structure

logistics and implementation timetable

timetable for implementation

monitoring and review

nzts 2015 performance targets
NZTS 2015 Performance Targets

“Increasing visitor satisfaction

TARGET: Increase by four percentage points the number of international travellers who rate their overall experience of New Zealand as eight or more on a 10–point scale…

Increasing the amount visitors spend

TARGET: Increase the average amount that visitors spend per night from $130 to $160 by 2015.

Reducing seasonality

TARGET: Increase the number of international visitors who arrive in the shoulder season … at a rate that is 25% faster than the overall annual forecast growth rate every year between now and 2015…

Delivering environmental best practice

We must develop ways of measuring the amount of carbon emitted by the tourism sector …

We must develop ways of measuring how satisfied visitors are with New Zealand’s environment performance.

Creating positive community outcomes

We must develop ways of measuring how local government accommodates and promotes tourism and how residents feel about the tourism activities taking place in their communities.”

what is strategy some definitions 1
What is strategy? Some definitions: 1

"Strategy is the direction and scope of an organisation over the long term: ideally, which matches its resources to its changing environment, and in particular its markets, customers or clients so as to meet stakeholder expectations." (Johnson and Scholes, 2008)

what is strategy some definitions 2
What is strategy? Some definitions: 2

" A strategy is the pattern or plan that integrates an organisation's major goals, policies and action sequences into a cohesive whole." (Quinn, 1998)

"Five definitions of strategy are presented... - as plan, ploy, pattern, position and perspective." (Mintzberg, 1998)

what is strategy some questions
What is strategy? Some questions

A strategy needs to address the following questions:

where are we trying to go?

how can we get there?

how do we know if we've got there?

Working definition of strategy:

"the planning of a desirable future and the design and testing of suitable ways of bringing it about".

characteristics of strategic decisions
Characteristics of strategic decisions

They are:

are complex rather than simple

are integrated rather than isolated

are long term rather than short term

are proactive rather than reactive

have an impact on the whole rather than a part of the organisation

involve major rather than minor change

involve grand design rather than marginal tinkering

are made by those in positions of power in the organisation rather than subordinates

scope of corporate strategy for tourism
Scope of corporate strategy for tourism

Tourism Profit-making organisations


Government Organisations



Master Plans

Specific goals – e.g. climate change

Mega projects and Events

the importance of strategy
The importance of strategy

Avoid Strategic Drift

Survive Turbulent Environments

Avoid Organisational Fragmentation

Provide Co-ordination

co ordination strategy
Co-ordination Strategy

A national, regional or local tourism strategy often works to co-ordinate al the disparate players in the tourism economy

strategy as a prescription vs the contested approaches
Strategy as a prescription vs the contested approaches

Strategy as prescription

This grouping of approaches including the classical approach believes that a strategy can be formulated using knowledge about an entity’s situation and that the strategy can be effectively put into action.

The contested nature of strategies

Other approaches underline the messiness of the world that entities operate in, the difficulties of obtaining correct knowledge, the sometimes overwhelming power of the external environment on entities and the effects of humans on the whole process.

review of key terms
Review of Key Terms

Strategy: The planning of a desirable future and the design and testing of suitable ways of bringing it about.

Four key elements of tourism strategy: strategic purpose, strategic analysis, strategic choice and strategic implementation.

Strategic drift: When an entity has failed to monitor and keep pace with its changing external environment.

Turbulent Environments: Dynamic, diverse, difficult and dangerous.

Fragmentation: When the constituent parts of an entity do not serve a common goal.

Competing Approaches to Strategy: Strategy as prescription vs the contested nature of strategies.

case study baa
Case Study: BAA

The following link is an interview is with BAA Chief Executive Officer Stephen Nelson (2007)

What aspects of strategy are illustrated in this interview?

review questions 1
Review Questions 1

Define the term strategy in your own words. Use examples, explain the essential features which distinguish a strategy from similar concepts and use counter-examples to clarify what strategy is not.

Explain the relevance of the terms strategic drift, turbulent environments and organisational fragmentation to a named tourism entity.

Map out the four key elements of strategy for a named tourism entity.

Explain, using examples, what Mintzberg (1998) meant when he described strategy as "plan, ploy, pattern, position and perspective". Do you think his definition is an appropriate one?

What factors can make strategy a contested concept?

review questions 2
Review Questions 2

Read the following strategy statement for Ryanair (or find alternative)

and answer the following questions:

What is a strategy?

What are the key elements to a Ryanair’s strategy?

How is Ryanair’s strategy different to that of BA and which is the most successful?

  • Below is a link to a presentation showing strategic data for Ryanair
  • This is the presentation about Ryanair given to investors in the company
strategy for tourism37

Strategy for Tourism

Unit 1

Introduction and Overview

The End