Tourism constitutes one of the core components in the economic growth and development of most economies (Tarlow 2002). A report released by the United Nations World Tourism Organisation [UNWTO] in 2010 shows that the industry has undergone remarkable growth and diversification over the past six decades. The sector ranks amongst the fastest growing industries in the world.
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The report shows that the tourism industry has contributed over 9.2% to the global Gross Domestic Product [GDP]. The UNWTO asserts that the industry will experience an annual growth rate of 4% over the next decade (Turner 2013). The growth in the tourism industry will emanate from the increased investment in various tourism sectors, such as the upsurge in the number of tourism destinations.
The industry has experienced a number of challenges over the past few years; however, it has depicted a high degree of resilience. For example, in 2012, the industry demonstrated remarkable resilience despite the prevailing global economic turmoil such as the sovereign debt crisis in the Euro Zone, which had adverse effects on some of the global tourism industry.
The industry experienced substantial growth with regard to international travel. It is estimated that the industry led to the creation of over 260 million jobs in 2012. According to the UNWTO’s forecast, the industry’s direct contribution to the global GDP is expected to be 4.4% per annum from 2013 to 2023. Thus, its total contribution to the global GDP by 2023 will be US$ 3,249.2 billion.
The size of direct employment within the sector is expected to increase by 2% per annum, which amounts to approximately 125.288 million job openings. On the other hand, the number of jobs created indirectly by the sector is expected to increase by 2.4% per annum (Turner 2013).
The industry’s growth is associated with the high rate at which respective governments are adjusting the rules governing international trade such as elimination of punitive taxation levels and the implementation of less restrictive visa regimes. Furthermore, the volume of investment in different sectors of the industry has increased significantly.
It is estimated that investments in the tourism industry will grow by an annual rate of 5.3% over the next decade. Thus, an additional $1,341.4 billion will be invested in the industry by 2023 (Turner 2013). The tourism industry is comprised of a number of sectors, which include the attraction, accommodation, travel intermediaries, and the transport sectors.
These sectors have attracted numerous investors over the years. However, their long-term sustainability and competiveness is dependent on the extent to which the industry players align their operations with the prevailing industry trends (Zhong, Deng & Xiang 2007).
This report illustrates that changes and challenges that firms in the tourism industry will experience. The report focuses on the attractions sector.
The report will evaluate how the firms in the sector can adjust their operations in order to maximise the benefits and minimise the costs of tourism activities. In order to gain a better understanding of the industry, the report will focus on the case of the attractions sector in Melbourne, Australia.
Overview of the changes and challenges facing the tourism attractions
The attractions sector constitutes one of the core areas of the tourism industry. The attractions include the natural and artificial aspects that are designed in order to attract visitors, hence generating revenue. The attractions sector is comprised of heritage homes, botanical gardens, water parks, casinos, aquariums, cultural attractions, and historical sites.
Furthermore, the attractions sector entails entertainment and educational facilities. In order to be effective in generating the required revenue, it is imperative for governments to ensure that the tourist attractions are managed optimally. This goal can only be achieved if the respective authorities invest in tourism attractions.
The Australian tourism industry contributes a significant proportion to the country’s economic performance. In order to sustain its contribution to the country’s economic growth, it is imperative for the relevant authorities to stimulate spending amongst domestic and foreign tourists. However, domestic tourism accounts for the largest proportion of tourism spending in Australia.
A study conducted in 2008 shows that domestic tourism accounts for 75% the total tourism spending in Australia. This has arisen from the development of a tourism culture amongst Australians.
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It is estimated that a substantial proportion of households in Australia have incorporated tourism in their consumption. Australians spend approximately 3.25% of their income on domestic tourism. The chart below illustrates the trend in the level of spending amongst Australian.
|Purpose for travel||Overnight visitors |
|Day visitors |
|Total $ billion|
|Visiting friends and relatives||3||9||12|
Table 1: domestic tourism expenditure in Australia 2010/2011 (Turner 2013)
Melbourne, Victoria, is one of the tourism destinations in Australia. Hooper and Zyl (2011) assert that Melbourne was ranked amongst the most popular tourist destinations for the Chinese. The high rate of economic growth and development in India and China is an indicator for potential increment in the number of Chinese and Indian visitors in Melbourne.
Furthermore, there is a high probability of increment in the propensity for tourism products given the growth in the world economy. Dwyer et al. (2008, p.13) assert that by ‘2020, the world economy is projected to be 80% larger than it was in 2000 and average per capita income will be roughly 50% higher’.
The high rate of globalisation is one of the overarching megatrends that will shape the global economy due to improvement in telecommunication, elimination of physical boundaries, and democratisation of financial markets.
Thus, it is imperative for the Australian government to ensure adequate tourist attractions in Melbourne in order to meet the market demand. However, the occurrence of economic downturn may affect adversely the competitiveness of the tourism industry (Schiff & Becken 2010).
The attractions sector will also be affected by social trends such as change in consumer behaviours (Cohen, Higham & Cavaliere 2011). One of the factors that will stimulate this change relates to generational change. For example, the emergence of Generation Y poses a threat to the success of different sectors. Dwyer et al. (2008) emphasise that generation Y easily switches its loyalty and it is more brand-conscious.
Furthermore, another major social change that will influence the attractions sector relates to change in the consumer values and lifestyles. Consumers are increasingly seeking a variety of experiences (Gossling, Scott, Hall, Ceron & Dubious 2011). A study conducted by the UNWTO in 2002 shows that the consumers’ demands for tourism products vary between comfort, adventure, and education (Cohen, Higham & Cavaliere 2011).
Despite the table above showing that the Australians consume a significant proportion of their income on domestic tourism, the last decade has experienced a reduction in the volume of household spending on domestic tourism.
Hooper and Zyl (2011, p.26) assert that the ‘decline in domestic holiday spending has been driven by a marked change in the travel behaviour of Australians’. Most Australians are increasingly appreciating outbound travel, which has increased overseas travel to over 20%. Australians are increasingly travelling overseas for education, business, holiday, and employment purposes (Frost, Laing, Wheeler, & Reeves 2010).
Furthermore, the attractions sector is also experiencing a threat emanating from political trends (Olsen 2006). One of these threats relate to the growing menace of international terrorism. Hall, Timothy, and Duval (2004) assert that terrorism poses a real threat to tourists’ behaviours. In order to abate this trend, it is imperative for governments to implement tight security measures and at the same time foster international travel.
The current environmental trends will also have significant impact on tourism attraction in Melbourne (Buswell 2009). One of the most notable tourist attractions in Melbourne is the Royal Botanic Gardens, which is approximately 38,000 hectares with more than 50,000 plant species.
Additionally, the garden has a natural water system that is comprised of lakes and islands such as the Fern Gully, Central Lake, the Ornamental Lake, and the Nymphaea Lily Lake. The Garden has gained remarkable reputation over the years as the world’s finest garden. Subsequently, it attracts different categories of visitors.
The high rate of climate change being experienced today is a major threat to such tourist attraction sites in Melbourne. One of the reasons that explain the high rate of global warming entails the depletion of the ozone layer due to chlorofluorocarbons [CFCs]. Dwyer et al. (2008, p.40) assert that climate change ‘has become and will continue to be one of the most concerning and controversial environmental challenges of our time’.
Moreover, the increase in demand for agricultural land will put significant pressure on tropical forests around Melbourne, which are key tourist attraction sites. If not well managed, there is a high probability of the natural tourist attractions in Melbourne experiencing significant depletion, hence leading to loss of biodiversity. Consequently, Melbourne will lose its attractiveness as a tourism destination.
The tourism industry has experienced remarkable evolution arising from the high rate of technological innovation. In order to stimulate economic growth, governments are under an obligation to improve the competitiveness of their tourist attractions. This goal can be achieved through investment in information and communication technology.
Beemer and Gregg (2008) emphasise that one of the key strategic questions in the quest to achieve competitive advantage relates to how best an institution deploys information technology. The above analysis shows that the tourism attraction sector is experiencing remarkable changes that are likely to have significant impact on the competitiveness of the respective tourism destinations.
Discussion and critical analysis
Different models have been formulated in an effort to explain the various phases through which tourism destinations go through. One of these models includes the Tourism Area Life Cycle [TALC] model, which was formulated by Butler in 1980 (Berry 2006).
The model argues that tourism destinations go through phases, which include the involvement, exploration, development, consolidation, stagnation, and decline or rejuvenation.
The exploration stage is characterised by lack of tourist attractions and related tourist developments in a particular area (Butler 2006). Thus, the tourism potential of an area is not exploited adequately due to lack of facilities. On the other hand, the involvement stage is characterised by increased appreciation on the tourism potential of the identified destination.
During the involvement stage, local entrepreneurs identify the potential business opportunity with regard to tourism in the area and start providing services that support tourism. For example, entrepreneurs invest in businesses such as restaurants and hotels, which play a fundamental role in catalysing tourism in the area.
The establishment of the first tourism facilities in the respective areas leads to the creation of a ‘neighbourhood effect’, which is evidenced by an increment in infrastructural, recreational, and commercial facilities (Pornphol & McGrath 2010). The involvement stage leads to the development stage, which is evidenced by an increment in the number of visitors in the particular tourist destination.
During the development stage, the tourist attraction destination may experience an increment in the number of international tourists compared to the local tourists.
Harrill (2004, p.23) asserts that during the development stage, ‘the local population appears to tolerate the negative impacts associated with tourism due to its substantial economic effects’. The increment in the number of tourists within a particular tourist destination supports the local cottage industries such as the agricultural, manufacturing, and construction industries.
The consolidation stage is characterised by a reduction of the land available to construct various tourist facilities such as accommodation, hotels, and road networks. The consolidation stage is also characterised by the tourist destination reaching international standards. Additionally, the rate of growth with regard to the number of tourists visiting the area decline (O’Toole 2011).
However, the destination continues to experience an increment in the number of tourists. The high rate of investment with regard to tourist facilities such as accommodation, transport facilities, and restaurants leads to oversupply, which forces prices of tourist facilities downwards.
The stagnation stage is characterised by a reduction in the rate of growth in tourist attractions due to limited area for expansion. Subsequently, more tourist facilities start being established in inland areas. Moreover, the stage is also depicted by degradation in the attractiveness of the tourist attractions due to their establishment in an uncontrolled manner.
The post-stagnation stage may be characterised by a decline or rejuvenation of the available attractions. A decline occurs if the available attractions are not in a position to compete in the global attractions sector (Lundtorp & Wanhill 2001).
Alternatively, the attractions sector may experience rejuvenation arising from increased investment in alternative forms of attractions. Havaldar (2010) asserts that tourist destinations are keen to avoid the stagnation and declining stages.
Impact of increase in the number of tourists
The industry trends evaluated above shows that the global tourism industry is experiencing rampant changes and challenges. As one of the tourist destinations in Australia, Melbourne will not be shielded from the projected changes and challenges. Over the past few years, Melbourne has experienced a significant increment in the number of tourists.
The high rate of economic growth in the emerging economies such as China and India has stimulated the industry’s growth. A report released by the Australian Bureau of Statistics shows that the number of tourists from China increased by 26.5% between November and September 2012 (Travel 2012).
Another study conducted by Tourism Victoria shows that Chinese tourist accounted for the largest percentage [$ 685 million] of the total tourist expenditure in Victoria in 2010 (Travel 2012). Other key markets that promoted the industry’s growth in 2012 include Singapore and Hong Kong.
The number of visitors from these two countries increased by 14.5% and 11.4%, respectively; furthermore, the Australian tourism industry will also experience substantial growth due to an increase in the number of tourists from the US and Japan, which recorded a 13.1% and 6.6% increment respectively (Travel 2012).
Victoria has continued to appeal to a large number of visitors due to its magnificent tourist attractions such as diversity of landscapes and nature. Subsequently, the tourist destination’s appeal has led to an increment in the number of tourists.
During the period ranging between 2008 and 2013, the number of international overnight visitors in Victoria increased by an average annual rate of 6.1%. In 2013, the total number of international overnight visitors increased to 1.96 million, which represents a 5.6% increment above the national average (International Visitor Survey 2013).
The International Visitor Survey (2013, par.11) is of the opinion that the ‘unique and differentiated brand positioning for Melbourne, which is Australia’s capital of cool, continues to be effectively communicated to the global audience’. Subsequently, there is a high probability of Melbourne experiencing a significant increment in the number of visitors.
This aspect will pose a challenge to Melbourne in meeting the tourists’ demand. First, the destination will receive different tourist categories, which means that the destination must implement effective strategies to manage the emerging demands and tastes. Furthermore, the destination will be required to establish effective tourism facilities in order to manage the large number of tourists.
Failure to manage the large number of tourists will affect the sectors’ competitiveness, and hence the industry’s long-term sustainability. The increasing complexity and intensity of competition in the industry highlight the importance of effective management on the tourist destinations (Scott & Becken 2010).
In order to minimise the likelihood of negative impact on the tourism industry by the increasing number of tourists, it is imperative for the Australian government and other investors in the sector to consider adopting effective tourism management strategies. Some of the strategies that they should consider are evaluated below.
Improvement of destination attributes and motivations
Changes in consumer tastes, preferences, and lifestyle have a remarkable impact on the consumers’ purchasing decision (Kazmi 2008). Therefore, it is critical for organisations in the tourism attraction sector to ensure that their products and services align with the tourists’ tastes and preferences. Similarly, firms in the tourist attractions sector should ensure that they improve their products and services.
The high rate of climate change indicates that Melbourne should not only rely on tourist attractions that are directly subject to climate change (Hamilton, Madison & Tol 2005). However, the industry players should diversify their tourism products and services in order to remain competitive. Authorities in Melbourne should integrate different products in their tourism product portfolio. Some of these products are discussed herein.
Shopping and leisure opportunities
A study conducted by Tourism Research Australia in 2009 shows that domestic tourism accounts for 74% of the total GDP due to tourism activities in the country (Kattiyapornpong & Miller 2012). However, the size of tourism contribution to the country’s GDP has contracted over the past decade. It is estimated that the contribution of tourism to the total GDP has declined at an annual rate of 0.7%.
On the other hand, domestic overnight trips have decline at an annual rate of 1% (Kattiyapornpong & Miller 2012). Despite this aspect, the industry has experienced a remarkable increment in the number of tourists over the past few years.
In order to create destination loyalty amongst the domestic and international visitors, it is essential for stakeholders in the sector such as the Victorian government and private investors to invest in shopping and leisure tourist attractions. Kattiyapornpong and Miller (2012) assert that shopping is one of the core tourist activities, as evidenced by the high rate at which tourists indulge in shopping for diverse products.
A report released by Tourism Research Australia in 2012 shows that 80% of the total number of international tourists purchase different products for pleasure (Kattiyapornpong & Miller 2012). Some of the products purchased include souvenirs and gifts (Prideaux & Moscardo 2006).
Melbourne’s attractiveness has been enhanced by the strong retail industry. However, the industry’s potential has not been exploited adequately with regard to tourism. The industry has a high potential of offering domestic and international tourists an opportunity to shop for high quality and exclusive products.
Additionally, the Victorian government should consider positioning the retail industry in Melbourne an attractive destination for leisure and business tourists (Richards & Palmer 2012).
One of the ways through which the government can exploit the shopping potential is by establishing free zones in Melbourne. The free zones will provide investors with an opportunity to establish businesses in the designated areas at a relatively low cost. Thus, domestic and international visitors in Melbourne will have an opportunity to shop for diverse products.
Furthermore, the Victorian government should consider liaising with recognised local and international businesses in organising trade fairs. In 2008, Melbourne announced its collaboration with L’Oreal, which is a renowned firm in the fashion industry.
This move led to the establishment of the L’Oreal Melbourne Fashion Festival (LMFF), which attracted over 362,000 domestic and international tourists. Such festivals will improve Melbourne’s attractiveness as a shopping and leisure destination.
Investment in arts and culture
According to Ritchie and Crouch (2003), art is increasingly becoming a fundamental tourist attractions component. This trend is mainly common in the urban areas. Thus, there is a high probability of Melbourne improving its attractiveness considering the high rate of urbanisation being experienced today.
Dwyer et al. (2008, p.29) asserts that more ‘than 95% of the total world population will be found in the rapidly expanding urban areas’. Therefore, it is essential for public and private investors in Melbourne’s tourist attractions sector to improve art and culture as one of the key components of urban tourism.
Art and culture can be exploited through different avenues. For example, investors within the industry should diversify into the film industry, art galleries, live performances, and cultural festivals. Melbourne is characterised by attractive sceneries that can be exploited during the process of film shooting.
Therefore, investors should tap the tourists’ attraction potential of the film industry by organising international film festivals. These festivals will attract a large number of film enthusiasts around the world.
Therefore, the sector will experience remarkable growth. Moreover, firms in the sector should also consider exploiting the cultural diversity within Melbourne by organising cultural festivals, whereby different communities around the area will have an opportunity to display their culture and traditions.
Campo-Martíne, Garau-Vadell, and Martínez-Ruiz (2009) are of the opinion that Melbourne is a cosmopolitan city, which makes it the Australia’s cultural capital. Moreover, a number of renowned firms that specialise in arts and culture are located in Melbourne.
Thus, firms in the tourist attractions sector in Melbourne should establish cultural theatres within the city. Such festivals will attract a large number of local and international tourists such as the West End Cultural Event London, UK (Ritchie & Crouch 2003).
In an effort to strengthen the Melbourne’s attractiveness as an international cultural centre, the Victorian government invested in the construction of public cultural facilities. Such facilities will play a fundamental role in improving the Melbourne’s competitiveness in the international tourists’ attractions sector.
Thus, there is a high probability of the tourism destination experiencing an increase in the number of domestic tourists (Prayag & Ryan 2011).
Over the past few years, Melbourne has depicted a trend whereby investors in the tourism sector are exploiting the opportunities presented by arts and culture. Subsequently, the city was granted the title, ‘World Literary Capital’ by the United Nations Educational, Scientific and Cultural Organisations [UNESCO] in 2008.
Additionally, the city hosted Wonders of Ancient Mesopotamia in 2012 in which different artefacts dating back to the ancient civilisation were showcased. This move has played a critical role in improving the city’s attractiveness to local and international tourists such as students, writers, artists, and researchers.
Considering the diversity associated with arts and culture, it is imperative for Melbourne to diversify into different arts and culture tourist-attraction products (Jenkins & Pigram 2006).
Investment in sports
Melbourne should exploit its sports facilities in enhancing its attractiveness to domestic and international tourists. Hinch and Higham (2011, p.79) emphasise that Melbourne ‘has continued to gain immense exposure as a sport tourism destination’.
One of the factors that increase its attractiveness to sports tourism relates to the well-established infrastructure, which enhances its ability to meet the visitors’ transportation, sporting, and accommodation needs.
The city has a number of tourism facilities such as the Telstra Dome, Flemmington Racecourse, Melbourne Cricket Ground, and the Australian Tennis Centre. Therefore, Melbourne should invest in additional sports facilities in order to attract diverse sports tourists.
Wildlife, zoos, national parks and reserves
In order to attract environmental enthusiasts, Melbourne should adopt effective management strategies to manage its national parks, game reserves, and zoos. This move will improve the destination’s global reputation (Royal Botanic Gardens Melbourne 2014). The destination should also exploit its attractiveness by improving its beaches, coastlines, and other scenic lookouts (Frost et al. 2010).
Investment in information technology
The significance of the tourism industry and the potential for growth are key indicators of the industry’s competitiveness (Buhalis 2000a). Subsequently, it is imperative for tourism destinations to invest in effective information technologies in order to improve their attractiveness.
The information technologies will play a fundamental role in the tourist destination’s marketing campaign (Buhalis 2000b). Farsari (2001, p.2) asserts that the ‘use of information technology in the tourism industry has been an issue of growing importance during the last years’.
Melbourne should integrate emerging information communication technologies in order to manage the large number of tourists. This goal can be achieved by adopting digital mediums such as blog and chat rooms in communicating with the tourists. Adopting these mediums will enhance the effectiveness with which potential tourists collaborate with the tourism destinations.
Subsequently, firms in the tourism attraction sector will be in a position to adopt user-generated content in improving their tourist products and services (Drewniany & Jewler 2008). Firms can also utilise information communication technologies in managing the large number of tourists (Johnson, Scholes & Whittington 2008).
For example, the sector players should develop a web-based database that will improve the effectiveness and efficiency with which the organisations in the sector provide attractive products and services.
Examples of such systems include the Destination Management Organisations [DMOs]. By using such technologies, the tourism destination will be in a position to understand the tourists’ needs through the data generated from the database.
Considering the increase in the number of tourists, it is critical for tourism destinations to improve the effectiveness and efficiency with which tourists are served while accessing the various tourist attraction sites (Dwyer 2004). This goal can be achieved by implementing effective Transaction Processing Systems (TPS).
The TPS will enable the tourism destinations to be effective in recording transactions, which can be used later in the policy formulation process (Petti & Passiante 2004). In addition to the above technologies, Melbourne should also adopt Geographic Information Systems [GIS] applications in planning its tourism and recreational facilities (Gregory 2000).
Farsari (2001, p.3) emphasise that the ‘GIS applications provide tourist destinations with an opportunity to manipulate data and spatial attributes and provide necessary value added information, which improves allocation of resources amongst conflicting demands’.
Melbourne is characterised by attractive tourist attraction sceneries such as parks and zoos. Therefore, the sector is experiencing an increment in the number of tourists, which might require expansion of some of the tourist attraction sites for example, through construction of cultural theatres. However, such decisions might affect its competitiveness due to loss of biodiversity.
Decisions on such sensitive issues can be made by employing the GIS application, which has the capacity of identifying tourism attraction areas that should be undisturbed by any form of development.
Destination risk management strategies
Gunn and Var (2002) are of the opinion that tourism destinations should adopt effective destination risk-management strategies in order to remain competitive. One of the risks that face Australia relates to the occurrence of climate change. The large number of domestic and international tourists visiting different tourist attraction destinations in Melbourne may contribute to increment in the rate of climate change.
Hall (2008a) argues that tourism increases the rate of climate change through three main areas, which include depletion of natural resources, pollution, and physical impact. Han and Zhuge (2001) argue that tourism can lead to increased pressure on local resources such as food and energy. During the high seasons, the tourist destinations experience intense pressure to meet the tourists’ expectations (Curtin 2010).
Increase in the number of tourists might culminate in land degradation due to increased construction of various recreational facilities (Hall & Lew 2005). Such activities may lead the degradation of the scenic landscapes (Hall 2008b). Pollution is another major cost that is associated with increment in the number of tourists.
Some of the common forms of pollution associated with tourism include air, sound, and water pollution. For example, transport to the tourist attraction destination leads to the emission of chlorofluorocarbon gases, which deplete the ozone layer. Thus, the likelihood of experiencing climate change due to environmental pollution in increased.
In a bid to sustain its competitiveness in the global tourism industry, the private and public institutions in the Victoria’s tourism attraction sector should invest in effective risk management strategies (Manente 2008). One of the strategies that they should consider entails investing in effective climate-change management strategies such as focusing on achieving environmental sustainability (Scott, Gossling, & Freitas 2008).
For example, firms in the attractions sector should invest in technologies that will minimise emission of the CFCs. In addition, they should educate visitors on the importance of protecting the environment in their destination marketing processes.
This move will play a fundamental role in sustaining the natural scenes, for example by eliminating littering of solid waste and other behaviours such as trampling on vegetation (Scott, Hall, & Gossling 2012).
The report shows that the tourism industry is one of the most important economic sectors in the world. Its significance is evidenced by its contribution to the global GDP either directly or indirectly. The industry has undergone remarkable growth over the past decades, which is projected to continue into the future.
The industry’s growth has been experienced in all the tourism sectors, which include attractions, travel intermediaries, and accommodation. Currently, the industry is experiencing a myriad of challenges and changes emanating from the global business environment.
Some of the changes and challenges are associated with technological changes, increase in the number of tourists due to the high rate of economic growth being recorded in different economies, change in the consumers’ behaviour, and environmental changes.
As one of the tourist destinations in Australia, Melbourne has not been shielded from these challenges. The sector has experienced a significant increment in the number of tourists from different parts of the world. A significant proportion of tourists in Melbourne come from India and China. Furthermore, Melbourne also receives tourists from the US and European markets.
The large number of tourists’ arrivals in Melbourne presents a major challenge to the private and public investors within the sector. One of the main sources of challenge relates to diversity in the tourists needs and expectations. Despite this aspect, the tourist destinations have an obligation to meet the visitors’ expectations.
In order to sustain its competitiveness in the global tourism industry, it is imperative for investors in the Melbourne’s tourist attraction sector to consider the following.
Diversification of tourist attraction products
The increase in the number of tourists in Melbourne will pose a challenge to the tourist destinations’ attractiveness to visitors. In order to address the visitors’ expectations, Melbourne should diversify its tourist attractions by fostering different forms of tourism such as art and culture, sports, shopping, and leisure opportunities. It is also imperative for tourist attractions to undertake continuous market research in order to understand the market needs. This aspect will play a fundamental role in improving the sectors’ long-term competitiveness.
Risk management strategies
In order to minimise the likelihood of losing its competitiveness in the global tourism attractions sector, it is imperative for tourist destinations to invest in effective risk management strategies. One of the areas that the tourist destinations should focus on relates to climate change.
Investing in information technology
Tourist attraction destinations should exploit the benefits associated with information technology such as information communication technology.
The information technologies should be adopted in their marketing management practices. Adopting technology will play an essential role in improving the capacity of the tourist destinations to manage the increase in the number of tourists, for example by establishing a database, hence increasing their tourism planning processes.
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