Languages for Communication in International Enterprises and Organizations (LACOM)

Università degli Studi di Modena e Reggio Emilia

DIPARTIMENTO DI STUDI LINGUISTICI E CULTURALI

CORSO DI LAUREA MAGISTRALE IN

Languages for Communication

in International Enterprises and Organizations (LACOM)

THE TOURIST CARD

AS A TOOL FOR DESTINATION MANAGEMENT

LA CARD TURISTICA

COME STRUMENTO PER IL DESTINATION MANAGEMENT

Prova finale di:

Silvia Capponcelli Relatore:

Ch.mo Prof. Eugenio Caperchione

Correlatore:

Ch.mo Prof. Giovanni Bonifati

Anno Accademico 2017/2018

ACKNOWLEDGEMENTS

I would like to extend my gratitude to Professor Angeloni Silvia for her helpful suggestions as well as for providing me with useful information and contact details.

My thanks also go to Manfredini Alice, Product Manager of Bologna Welcome Card, for her willingness to make significant contribution to the present research.

RIASSUNTO

A partire dalla seconda metà del ventesimo secolo, alcuni fenomeni quali l’internazionalizzazione dei mercati, l’avvento di nuove tecnologie dell’informazione e della comunicazione, la comparsa di un’offerta e di una domanda più eterogenee, segmentate e dinamiche, hanno reso possibile una forte crescita del fenomeno turistico.

Tra i numerosi mutamenti che ne sono conseguiti, tale espansione ha comportato lo sviluppo di nuove destinazioni e la necessità di riorganizzare quelle già esistenti, attraverso interventi di pianificazione turistico-territoriale mirati. In questo contesto, negli ultimi tre decenni è emerso il concetto di Destination Management, che si riferisce a una serie di azioni strategiche orientate allo sviluppo e alla gestione delle destinazioni turistiche in un’ottica sistemica e seguendo una logica integrata.

Il presente lavoro di tesi si propone di analizzare la suddetta disciplina dapprima da un punto di vista teorico e concettuale, facendo riferimento alle funzioni e agli ambiti d’azione delle cosiddette Destination Management Organizations (DMOs), organismi di gestione della destinazione che mirano a creare sinergie e forme di cooperazione fra i soggetti coinvolti nell’offerta turistica dell’area in cui operano, attraverso una serie di risorse e strumenti. La seconda parte dell’elaborato si focalizzerà su uno di questi mezzi, le cosiddette card turistiche, spesso intese come un prodotto, o meglio, un pacchetto di servizi, che facilita l’esperienza del visitatore. A seguito di un’analisi generale dei contenuti e delle caratteristiche funzionali di queste card, si indagherà riguardo al loro effettivo e potenziare ruolo come strumenti di Destination Management, prendendo in analisi una delle principali card turistiche elettroniche da tempo affermate nel contesto italiano: Bologna Welcome Card (BWC); emessa dalla DMO locale al fine di integrare diversi fattori di attrattiva e servizi turistici stimolando la partecipazione di numerosi soggetti, all’interno di un’area territoriale entrata soltanto nell’ultimo decennio nella fase più attiva dello sviluppo turistico di una destinazione. Lo scopo della ricerca è quello di individuare, attraverso un’intervista con il product manager di BWC, il ruolo di supporto che una card può ricoprire dal punto di vista del soggetto emittente, per esempio in termini di gestione del sistema d’offerta, marketing, controllo e monitoraggio dei flussi turistici, ed altri aspetti riconducibili allo svolgimento delle funzioni di una DMO, discutendo inoltre alcuni possibili ambiti di sviluppo.

ABSTRACT

During the second half of the twentieth century, phenomena such as the internationalization of markets, the advent of new information and communication technologies, the appearance of more heterogeneous, segmented and dynamic supply and demand, have lead to a strong and ongoing tourism growth. This expansion have been causing numerous changes, including the development of new destinations and the need to reorganize already existing ones through specific tourism planning initiatives. In this context, the concept of Destination Management has been brought to light, making reference to a series of strategic actions aimed at developing and managing tourism destinations from a systemic and integrated perspective.

The present Master’s thesis first seeks to develop a better understanding of the above- mentioned discipline from a theoretical and conceptual point of view, analysing functions and scopes of action of the so-called Destination Management Organizations (DMOs), that is formal bodies in charge of creating synergies and forms of cooperation between the subjects involved in the tourism supply of the area in which they operate, making use of a series of resources and tools. The second part of this work will focus on one of these instruments, the so-called tourist cards, often understood as a product, or better, as a bundle of services, which facilitates the visitor's experience. After a general overview about composition and functional characteristics of these cards, we will investigate their actual and potential role as Destination Management tools, analysing one of the most established electronic tourist cards available in the Italian context: Bologna Welcome Card (BWC); issued by the local DMO for the purpose of integrating various attractions and services, stimulating the participation of several touristic operators in a relatively recently developed destination. The main purpose of the research is to identify, through an interview with BWC product manager, the extent to which the card plays a supporting role from the point of view of its issuing body, for example in terms of network creation, marketing, management and monitoring of tourist flows, and other aspects related to the performance of DMO’s functions, finally discussing some possible developments.

RESUMEN

A partir de la segunda mitad del siglo XX, algunos fenómenos tales como la internacionalización de los mercados, la introducción de nuevas tecnologías de información y comunicación, la aparición de una oferta y una demanda más variadas, segmentadas y dinámicas, favorecieron un fuerte crecimiento del fenómeno turístico.

Esta expansión implicó varios cambios, incluso el desarrollo de nuevos destinos y la necesidad de reorganizar aquellos ya existentes, recurriendo a intervenciones específicas de planificación turístico-territorial. En este contexto, hace tres décadas, surgió el concepto de Destination Management que se refiere a una serie de acciones estratégicas dirigidas al desarrollo y a la gestión de destinos turísticos desde una perspectiva sistémica y de acuerdo con una lógica integrada.

La presente tesis se propone de analizar en primer lugar la antedicha disciplina desde un punto de vista teórico y conceptual, refiriéndose a las funciones y a los ámbitos de acción de las Destination Management Organizations (DMO), es decir organizaciones de gestión de destinos, responsables de la creación de sinergias y formas de cooperación entre los actores de la oferta turística del área en la que operan. En segundo lugar se analizará uno de los medios a través del que estos órganos oficiales desarrollas sus funciones, las así llamadas tarjetas turísticas, generalmente concebidas como un producto, o más bien, como un conjunto de servicios, que facilita la experiencia del visitante. Tras un análisis general de los contenidos y de las características funcionales de estas tarjetas, se investigará su utilidad efectiva y potencial como herramientas de gestión de destinos, examinando una de las principales tarjetas electrónicas establecidas en el contexto turístico italiano. Se trata de Bologna Welcome Card (BWC), emitida por la DMO local con el fin de integrar a diferentes atracciones y servicios turísticos, favoreciendo la participación de varios sujetos dentro de un área territorial cuyo desarrollo turístico ha sido relativamente reciente. A través de una entrevista con el product manager de BWC, se identificará el tipo de soporte que este tipo de tarjeta ofrece desde el punto de vista del emisor, por ejemplo, en términos de gestión del sistema de oferta, marketing , gestión y monitoreo de los flujos turísticos, y otros aspectos relacionados con el desempeño de las funciones de una DMO, discutiendo también algunos posibles ámbitos de desarrollo.

TABLE OF CONTENTS

Introduction………..……….p. 1

CHAPTER 1

Destination management in a conceptual framework

1 A response to tourism trends………p.5

1.1 Globalization of competition………..……p.6 1.2 Changing consumer demand………..………p.7

1.3 Higher industry concentration………p.8 1.4 The advent of ICTs……….………p. 9

2 The tourism destination………...p.10

2.1 Basic elements……….………...p.11 2.2 The tourist product………...p.14

2.3 Destination lifecycle………..………..….p.16 2.4 Organizational structure……….….p.19

3 Managing the destination……….………..…p.22

3.1 The systemic nature………..………p.22 3.2 The stakeholders network………...…p.23

3.3 The Destination Management organization DMO………...…………p.27

CHAPTER 2

Destination management roles and challenges

1 Destination Marketing……….…...……p.31 1.1 The marketing mix………...…….………p.33

1.1.1 Promotion……….………p.35 1.2 Positioning………p.39

1.2.1 Differentiation………...……...p.40 1.2.2 Branding………...…p.41 1.3 Image………p.43

2 From marketing to management………p.45 2.1 Product development and packaging………...…p.45

2.2 Managing stakeholders’ relationship………...……p.47 2.2.1 Collaboration………...……p.47 2.2.2 Partnership……….…..………p.48

2.3 Research and monitoring……….…….……p.50

3 New challenges………...……p.51

3.1 Sustainability………p.51 3.1.1 Alternative tourism………...………p.52 3.2 Personalization……….……p.53

3.3 The influence of ICTs………p.54 3.3.1 The destination management system (DMS).………...p.55

3.3.2 Social media……….………..…p.56 3.3.3 Mobile technology………p.57

CHAPTER 3

Destination cards’ composition and features

1 Categorization………..………..p.61 1.1 Territorial application………..…………p.62 1.2 The issuing body………..……….…p.62

1.3 Time validity………..………...…p.63 1.4 Technology employed………...………p.64

1.4.1 Virtual cards………..…………..…p.65 1.5 Financial flows………...………..………p.66 1.6 Facilitations included………...…………..………..………p.67

1.7 Product variants………...………..………..p.67 1.8 Promotion and distribution channels………...…………..…p.67

1.9 Customer support………...…………..………p.68

2 Tourist cards as a tool………...………..………...p.69 2.1 Role for tourists………...………..………...……p.69

2.1.1 Fundamental characteristics………...…………...…p.71 2.2 Role for Destination Management………...……..………...……p.72

2.3 Tourist cards in Europe………...………..………...…p.75 3 Tourist cards in Italy………...………..……….…p.78 3.1 Most established Italian tourist cards…………..………....……p.80

3.2 Digitalization………...…………..………...…p.85

CHAPTER 4

Tourist cards from a destination management perspective

and the case of Bologna Welcome Card

1 Contextualization………...………..………...…p.89

1.1 Bologna Welcome (BW).………..………...……….…p.90 1.2 Recent years………..………...……….……p.91

2 Bologna Welcome Card………..…………...……….p.92

2.1 Launching………...………p.92 2.2 Description………...……..………..p.94

2.3 Composition………...……….………p.96

3 A tool for Destination Management………..…………...………..p.98 3.1 Network development………...……...………..…p.98

3.2 Marketing………...………..………p.101 3.3 CRM and loyalty………..……...………p.103

3.4 Tourist flows distribution………..…………...………..…...p.104 3.5 Branding………...………..………p.105

3.5.1 “Is Bologna”………...…………...………...…p.105 3.6 Research and monitoring………...………...………..…p.107

3.6.1 Privacy issue…...…………...……….………..…………p.109 3.7 Personalization………...………..……..p.110 3.8 Sustainability………...……….……..…p.112

4 Further possible developments………..………...p.114

4.1 Mobile App………...………...p.115 4.2 Transport sharing and mobility integration………..…………p.117

4.3 Alternative tourism………..……...p.119

Conclusion……….……..…...……p.123

Bibliography………..……….………...….…………p.127

Webography………...……….…………...………….…p.133

Appendix 1: Interview……….………...………….…p.135

INTRODUCTION

Tourism is one of the world’s largest industries and since the second half of the twentieth century it has been facing a rapid and continuous growth having a revolutionary impact on destinations and their management. With globalization generating new market interconnections and a more dynamic world economy, tourist flows volumes have increased, while visitors’ motivations and requirements have become more and more differentiated and dependent on constantly emerging trends, representing a great challenge for all those subjects involved in the sector. In this context, several tourist destinations have evolved, configuring themselves as very complex entities, requiring the adoption of an organized destination management approach to address changes and maintain their competitiveness. In the majority of the cases, this entails the involvement of Destination Management Organizations (DMOs), that is formal bodies in charge of encouraging cooperation and creating synergies among stakeholders, through a series of shared projects, initiatives and tools calling for the participation of different local actors, in a collaborative and integrated perspective.

The present research aims at examining in particular one of these tools, the so-called tourist cards, also adopted in main Italian touristic cities and in some regions. While from the visitor’s point of view they could be considered as relatively common instruments to save time and money, we’re going to demonstrate their potential importance from an issuing DMO’s perspective, first analysing in depth their functional characteristics, focusing then on the support role they might play with regard to the performance of some destination management functions. For this purpose, one of the most established electronic Italian tourist cards was analysed from a closer perspective, thanks to an interview conducted with its product manager. However, in order to fully understand the potentialities of this tool, it has proven necessary to focus the first part of the present work on providing an extensive conceptual framework about the concept of destination management in general, focusing also on the actual role and functions attributed to this discipline and to organizations of the DMO type.

In the first chapter we are going to explore the reasons behind the emergence of Destination Management as a discipline and as an integrated approach to be adopted in

light of the numerous changes affecting the sector and the structure of tourist destinations, whose complexity requires an accurate management from a coherent, integrated and qualitative perspective. We will analyse the concept of destination going beyond its geographical definition, to define it as a sort of composite product including different basic elements and having a proper lifecycle. The systemic nature of community destinations will be then discussed from the point of view of supply, in terms of a cluster of interrelated stakeholders embedded in a sort of network (Gajdošík et al., 2017), in which the establishment of a specific entity (DMO) in charge of creating synergies and forms of cooperation between different tourism actors, might be the most appropriate way of pursuing tourism development.

In the second chapter our contextual framework will be completed defining some of the main roles and functions forming part of DMOs’ domain. We’re going to explain the relationship between Destination Management and Destination Marketing, defining the destination marketing mix, with particular emphasis on promotion, and mentioning some of the most important aspects determining the positioning of a destination in the tourism market, making also reference to the concepts of destination branding and destination image. A section dedicated to other functions strictly related to management will follow, highlighting the importance of DMOs actions in terms of product development and packaging; creation of collaborative practices and forms of partnership; research and monitoring. Finally, some of the most recent challenges for DMOs will be discussed, addressing trends like sustainability, alternative tourism, personalization and the influence of new information and communication technologies, generating a new type of smart tourist, oriented towards digital solutions and more and more inclined to consider mobile devices as a fundamental vehicle in any travel phase.

In the second part of the present thesis the attention will be shifted to tourist cards, firstly examined from a general and descriptive perspective. The third chapter, in fact, will focus on analysing the composition and main features usually associated to these tools, providing a series of categorization criteria that might be used for describing and distinguishing them, on the basis of territorial application, validity, technology employed, content and other indicators, focusing on their advantages mainly from the point of view of tourists. Afterwards, we are going to provide an overview of the most inclusive, technologically advanced and well-established destination cards available at

regional or local level in the Italian tourist context, where these tools are often issued by or in collaboration with Destination Management Organizations. One of the cards mentioned in the sample taken into analysis, will be then object of this work’s final section.

Chapter four, in fact, will be focused on Bologna Welcome Card (BWC), issued by the local DMO of Bologna, the capital and largest city of Emilia Romagna Region, in northern Italy. Firstly, the card will be contextualised and described in its evolution, getting to the present composition of the circuit. Secondly, we’re going to present a series of considerations about the actual and potential role of this tool in relation to the performance of some Destination Management functions mentioned in chapter n.2. For this purpose, parts of an interview conducted with BWC product manager (and translated into English) will be reported and commented, trying to identify the extent to which the tourist card can be considered as a valid supporting tool from the point of view of an issuing DMO, introducing also some comparative examples and few more suggestions indicating possible areas of development for making this instrument more inclusive, efficient and performing.

CHAPTER 1

DESTINATION MANAGEMENT IN A CONCEPTUAL FRAMEWORK

Tourism is one of the world’s largest industries, characterized by an increasingly widespread and complex nature, evolved during the second half of the twentieth century from a marginal and locally significant activity to a widely dispersed economic giant, accounting for more than 10.4% of the global GDP ¹(www.wttc.org). As a matter of fact, tourism can exercise an enormous impact on host destinations, which therefore require a sophisticated management to realise their full potential as positive and sustainable economic, environmental, social and cultural forces (Weaver et al., 2006).

The purpose of this chapter is to provide an overview of the context surrounding the concept of Destination Management, come in to being as a discipline subsequently to some recent transformations occurred in the tourism sector.

1 A response to tourism trends

The issue of “Destination management” has been brought to light in the last three decades, as a consequence of the constant development of tourism from both the demand and the supply side and has been developed as a response to the emerging trends observed in the tourism market, from the relevant growth of tourism flows to the growing need to meet customer’s expectations and specific market segments. In this context, some major issues have emerged, mainly related to problems concerning the safeguarding of natural and cultural local resources and the community identity, and the need to build a consensus among the different actors of supply, co-ordinating their actions. These changes have revealed the need for private and public actors of tourism supply to be guaranteed with an efficient tourist flows and destination management from a coherent, integrated and qualitative perspective, as stated by Manente (2008).

According to the author nowadays, more than ever before, tourism has a revolutionary impact on destinations and their management, due to the wide range of changes that

1World Travel and Council (WTTC): travel and tourism economic impact 2018 https://www.wttc.org/- /media/files/reports/economic-impact-research/regions-2018/world2018.pdf

worldwide tourism has recently been facing and that can be attributed to the following modifications affecting the sector:

1.1 Globalization of competition

The growing interdependence between national economies is reflected in a trend towards global markets, global production, global communication and global competition. Globalization involves the evolving interconnectedness of the world, reflected in the expanded flows of information, technology, capital, goods, services and people. It can be described as a process by which national and regional economies, societies and cultures have become integrated through the global network of trade, communication, immigration and transportation (Dwyer, 2015). Tourism can be seen as one of the most affected sectors when we consider the consequences related to the globalization of the economy. In particular, the opening of new markets, the diffusion of safety and service standards and the new possibilities offered by air transport in terms of efficiency and accessibility, have had noticeable effects on tourism demand and supply, leading to a considerable growth in international tourism flows (Manente, 2008).

Moreover, globalization has generated a dynamic world economy, creating the basis for continued growth in domestic and international tourism worldwide, increasing the economic prosperity of countries because of the rising trade and investment flows generating additional world GDP, and fostering the generation of employment, thereby increasing the standard of living of people worldwide (Dwyer, 2015). On the one hand, all of this constitutes an opportunity, for all touristic places; on the other hand, it can represent a competitive pitfall, especially for already established destinations, as it determines an increase in the number of alternatives available to the consumer. This means that the competition between destinations nowadays is played on a broader level, upsetting, for example, the correlation that normally existed between seasonality and tourist practice, or between physical distance and travel costs Manente (2008).

Beyond the internationalization of markets and its effects on global competition, globalization must also be conceived as a process of international integration arising from the interchange of worldviews, products, ideas and other aspects of culture, which implies the existence of a broader concept that goes beyond the economic frame. On this wider perspective, globalization can be considered a multidimensional process,

taking place simultaneously within the spheres of economy, politics, technological developments and transportation technologies, of environmental, social and cultural change (Dwyer, 2015). For this reason, we consider that all the trends identified by Manenete (2008), and discussed in the present paragraph, are strictly related to globalization.

1.2 Changing consumer demand

The increasing international connectivity associated to globalization has also shaped modern life in a different way, diminishing the constraints of physical boundaries and extending the geographical scope of social networks, with implications for social life and human culture. This social change is related to increasing connectivity among people and countries worldwide, together with an increased awareness of these interconnections. The changing social structures include demographic variables as well as the emergence of new consumer values, which have significantly varied the structure of tourist demand, increasing the opportunities for the development of new tourism markets, making a wider range of choices available for the traveller (Dwyer, 2015).

The substantial changes characterising tourist demand, concern not only the system of desires and expectations, but also the chosen period for holidays and their duration (Weaver et al., 2006). Especially in developed countries, the growth of ‘money rich - time poor’ people implies a high demand for short time holidays. The greater pressure on ‘time’ and the rising ‘stress’ levels lead to a growing emphasis on the means of

‘escape’ through holidays (Dwyer, 2015), so that people seem to be more inclined to reduce the duration of their stay in order to be able to increase the total number of visited places during a year. Another important aspect to consider is that of raising individualism, as people tend to increasingly tailor holidays to meet their particular requirements. According to the European travel Commission (2010), as travellers become more experienced they are no longer satisfied to be processed through an impersonal, non-interactive system of ‘mass tourism’, so nowadays tourists seek the unusual and the authentic experience rather than the shared, off-the-shelf holiday package. As incomes grow, people shift their discretionary expenditures towards experiences as opposed to products. They are desirous of involvement as participators rather than spectators, seeking a variety of optional experiences, leading to a greater

emphasis on customized holidays and personalized services that can satisfy their expectations in terms of participation, self-improvement and quality.

All things considered, we can say that new consumer values that have emerged with the globalization phenomenon have important implications for tourism on both the demand and the supply side (Dwyer, 2015). Today tourists are bearers of more and more specific needs, which they aim to satisfy by selecting the option that best suits the desired social and demographic characteristics as well as lifestyle. Identifying their travel purpose is not always easy, due to the increasing differentiation of tourists’

motivations and requirements, and especially because their reason for travelling might be multipurpose (Weaver et al., 2006). In this context, tourist enterprises find themselves faced with a new evolved type of demand, which is more difficult to satisfy as it is characterized by greater dynamism and variability over time, not allowing the adoption of repetitive supply strategies (Manente, 2008). Trying to investigate these new factors influencing demand and adapt tourist offer to them, focusing on quality of goods and services rather than just on quantity, might be the right approach to adopt in order to maintain and enhance competitive advantage of a destination.

1.3 Higher industry concentration

Globalization has also lead to an easier access across borders, which for the tourism and transportation industries implied an increase of global competition. The continued deregulation and liberalization of air transport and an ‘open skies’ policy have supported the growth of international trade and tourism and, at the same time, technological advancements enabled a continued rise in mobility, making people able to move greater distances more comfortably and in less time (Dwyer, 2015). Transport can be seen both as a cause and as an effect of the growth of tourism; the improved facilities have incited tourism, and the expansion of tourism has incited the development of transport infrastructures. This simultaneous growth of the international tourism and transport market has led to a series of industrial and financial reorganization processes within the sector, which has led to the emergence of large multinational groups involved in tourism intermediation as well as in the transport sector, with considerable contractual power due to large customers’ volumes and creation of economies of scale and scope. This is also related to the presence of an increasingly aggressive supply on

the market in terms of price policies, which modifies the structure and dynamic of competition. Tourist destinations are naturally affected, even if not directly, by this process, being faced with competitors who can intercept the same market demand they traditionally refer to (Manente, 2008).

1.4 The advent of ICTs

Beyond technological advancements in the transportation industry, also developments in information and communications technology (ICT) have accelerated the pace of globalization, lowering operating costs and making it more economically feasible for firms to locate in different countries. Technology makes it possible to produce customized services on a large scale at cost competitive prices. Moreover, the advent of the Internet has been a vital development across all industries, as consumers use it to gather information on destinations, products and services offered. Rapid and profound shifts in human information flows are also associated with the rise of social media and other digital platforms that have recently experienced a huge growth, enabling cross- cultural communication and changing the perceived credibility of information sources (Dwyer, 2015). The online world has created new risks and opportunities for all industries, having also a significant impact on the tourism sector, both from the point of view of supply and demand. For organizations it represented a new way of communicating and selling their products and services, wile for tourists it consist in an excellent tool for finding information as well as generating and sharing ideas about their holiday. The web has allowed the development of new contacts between demand and supply introducing further dynamism in the sector, due to the peculiar characteristics of the Internet in terms of extension of potential markets and acceleration of the decision- making processes. The advent of the Web has also allowed operators specialized in online commerce to propose themselves as "new" tourist intermediaries, increasing the opportunities of choice and the number of information research methods (Manente, 2008).

The trends identified by Manente (2008) represent a challenge for tourism destinations ad their public or private stakeholders, which need to face them, enhancing the benefits

while minimizing the disadvantages. A widely recognised strategy to do so includes the adoption of a Destination Management approach, which can be viewed as a system of strategic and operative intentions and decisions, undertaken with the goal of managing the process of the establishment, promotion and commercialisation of the tourist product of a destination (Bulut, 2012), managing the various components of a local tourist destination in a way that ensures its economic profitability. To have a more comprehensive view on the subject, we need first of all to reflect about the concept of

“destination”, focusing on what constitutes the object of analysis, decisions and specific actions aimed at managing its evolution (Pechlaner et al., 2000).

2 The tourism destination

The concept has become subject of interest due to the great changes that the tourism sector has gone through during the last decades. The visitor’s choice has become a competitive selection among different alternatives, driven by their capacity to satisfy his needs and motivations, as well as by the comparison of prices and the quality level of the services offered. In this context, touristic places have entered into the market constituting possible alternatives, evolving from mere physical sites to become

“destinations” (Martini, 2017). Surprisingly, the term has become common in the tourism management field only in the mid 90’s and the first definition of “local tourism destination” by the World Tourism Organization (UNWTO)² dates back to 1993, and has been further refined until recent years: the term refers to a physical space in which a visitor spends at least one overnight. It also 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, images and perceptions defining its market competitiveness. Tourism destinations incorporate various stakeholders often including a host community, and can nest and network to form larger destinations. They could be on any scale, from a whole country to a region

2 The World Tourism Organization is the United Nations agency responsible for the promotion of responsible, sustainable and universally accessible tourism. As the leading international organization in the field of tourism, UNWTO promotes tourism as a driver of economic growth, inclusive development and environmental sustainability and offers leadership and support to the sector in advancing knowledge and tourism policies worldwide (http://www2.unwto.org/content/who-we-are-0).

or to a village, town or city, or a self-contained centre or attraction, such as amusement or theme parks (UNWTO, 2007).

2.1 Basic elements

The tourism destination is composed by a series of basic elements that are necessary to attract and satisfy the needs of a specific visitor or tourism segment and can be distinguished into:

- Attractions: often represent the focus of visitor attention and may be the principal motivation behind his decision to visit the destination. These can be categorised as natural (e.g. beaches, mountains), human-built (e.g. heritage monuments, religious buildings), or cultural (e.g. museums, theatres, art galleries). They could be in the public realm such as a nature park or an historical site, or could be community attractions and services such as culture, heritage or lifestyle (UNWTO, 2007). The artistic, anthropological, architectonic and cultural sites are usually considered the essential elements of a destination, strictly related to the practice of sightseeing and often considered the basis for competitiveness for their uniqueness and inimitability.

However, other artificial attractions have acquired a great importance in distinguishing destinations and raising their competitiveness. It is the case, for example, of events, fairs, sport facilities and shopping centres, which can enrich the tourism offer combining with other attractions in order to make the visitor’s stay more entertaining, stimulating, pleasant and enjoyable (Martini, 2017).

- Public and private amenities: among the basic elements that constitute a tourist destination the UNWTO (2007) also includes a wide range of services and facilities that support visitors’ stay and include basic infrastructures such as roads and public transports or direct services such as accommodation, information, guides, etc.

Martini (2017) includes this category in the definition of artificial attractions, referring to them as “non places” ³ that, although situated in a physical space,

3 Non-place or nonplace is a neologism coined by the French anthropologist Marc Augé to refer to spaces of transience that oppose to anthropological places, being created by the late capitalist society for specific ends, such as commerce or transportation, which cannot be defined as relational, historical, or concerned with identity or, more

remain independent from it. However, we must distinguish these amenities from other attractions since their attractive power is much lower. In fact, in the great majority of the cases they don’t function as proper distinctive elements of a destination due to their easy reproducibility and scarce originality, which place them far from being a consistent motivation for travelling, if not associated to the attractions mentioned above.

- Accessibility: the destination should be accessible to a large population base, considering two fundamental perspectives. On the one hand, from an infrastructural point of view visitors should be able to reach it through different means of transport (via road, air, rail, etc.) and also to easily travel within the destination (UNWTO, 2007). The level of infrastructural accessibility may depend on many factors including availability of founds, physical barriers and cooperation with other destinations as well as intervening jurisdictions to establish effective linkages. On the other hand, considering a larger scale perspective, political accessibility should be granted making reference to the specific requirements under which visitors are allowed to enter into a destination. Except in authoritarian states, where even restrictions on internal travel are imposed, political access is not a significant issue in domestic tourism (Weaver et al,. 2007). However, it is critical for international travellers, for whom ports of entry, visa requirements and other specific conditions are also considered as important indicators of the degree of accessibility of a destination (UNWTO, 2007).

- Image and character: the attractiveness of a destination depends on its unique character or image, a concept behind which stand numerous meanings. Some primary definitions of the destination image (DI) consider it as “the sum of beliefs, ideas and impressions that a person has of a destination” (quoted. in Molinillo, 2018), but literary reviewers suggest that DI is a more complex, multiple and dynamic concept, involving the conscious, multisensory and quasi-perceptual

succinctly, where the human beings remain anonymous and that do not hold enough significance to be regarded as

"places". Examples of non-places would be motorways, hotel rooms, and airports. Marc Augé introduced the term in his work Non-Lieux: Introduction à une anthropologie de la surmodernité, Le Seuil, 1992.

mental experience held by tourists about a destination (Molinillo, 2018). The image of the destination includes many aspects such as uniqueness, sights, scenes, environmental quality, peace, safety, service levels, and the friendliness of people (UNWTO, 2007). Therefore having a good range of available attractions and amenities may not be enough if potential visitors are not aware of the destination image, so it’s important to use all means possible to promote it (e.g. marketing and branding, travel media, e- marketing).

- Affordability: it is demonstrated that, all other factors being equal, reductions in cost generate increased tourist traffic into a destination and that the cost of living in it, relative to the origin area, constitutes an important component for the visitor’s travel choice, since a high proportion of the total trip costs are normally incurred within the destination (Weaver et al., 2007). For this reason pricing plays an important role, especially when it comes to competing with other destinations. Tourists’ decision is strictly related to the cost of transport, accommodation, attractions, food and tour services, but it can also depend on other economic features such as currency exchange (UNWTO, 2007). In fact, tourist flows are usually sensitive to significant exchange rate fluctuations, and when destinations find themselves to face a high national currency or currency block, such as in most of the European union, managers can attempt to offset its potential negative effect on the attractiveness of the destination through the implementation of price reductions or other incentives, in order to restore an acceptable level of affordability for the potential visitor (Weaver et al,. 2007).

- Human Resources: tourism is a labour intensive industry and social interaction plays a fundamental role in the tourism experience, whether it involves personnel or local communities. Well-trained tourism workforce and citizens, who are equipped and aware of the benefits and responsibilities associated with tourism growth, are therefore indispensable elements of tourism destination delivery and need to be managed in accordance with the destination strategy (UNWTO, 2007). At this purpose it is important, from a managerial point of view, to support local entrepreneurships in terms of transfer of knowledge and competences, promoting personnel training programs and local involvement, encouraging a positive attitude

towards visitors.

All these elements together are considered fundamental for shaping the destination experience offered and determine the destination’s appeal. The provision and quality of all these aspects will thus influence the visitor’s decisions to make their trip (UNWTO, 2007). For this reason, Martini (2017) defines them pull factors, namely those elements that operate from the inside of a destination, “pulling” the visitor and constituting his main motivation for travelling. However, we must say that tourism flows depend not only on these elements, but also on push factors, which stimulate tourism demand from where it is generated, “pushing” the visitor to temporarily abandon his place of residence, looking for a suitable host destination. Compared to pull factors they are equally important as they can include several economic, social, demographical, environmental, geographical or cultural factors. From a managerial perspective the difference stands in the fact that destinations cannot do other than adapt their strategies to push factors, while the basic elements mentioned above, besides being related to natural, anthropological or historical characteristics, they can be object of strategic actions aimed at fostering the tourist development of the destination.

2.2 The tourist product

According to the definition suggested by the UNWTO, a tourist destination represents the cluster (co-location) of products and services as well as activities and experiences, constituting the basic unit of analysis in incoming tourism. To be more precise, we can distinguish three perspectives of analysis: the geographical, according to which it is a distinctly recognizable area with geographic or administrative boundaries that tourists visit and stay in during their trip; the economic, under which we consider it a place where they spend a relevant amount of money and where tourism revenue is potentially significant to the economy; and finally the psychographical perspective, depending on visitors’ interests and perceptions, constituting the main reason for the journey (Manente, 2008).

Starting from this general definition, it is important to add that many meanings to the term ‘destination’ exist, either from sociology, marketing and management perspectives, and the identification of a destination can vary according to the

multiplicity of public or private actors involved (actual and potential tourism demand, local private tourist activities, public actors, non local tourist activities, the host community) and to their different perceptions. From the point of view of tourism demand, tourists can mature different ideas of the destination according to their decision process, their expectations and their level of satisfaction. Before the visit, in fact, their perception of the destination and of the benefits they can receive, according to their culture, system of values and socio-economic status, is the basis for their choice, and so tourist destination can be seen as “the tourist product that in certain markets competes with other products” (Bieger, 1992, as quoted in Manente 2008). The combination of goods, services, information, anthropologic and natural elements, creates, in fact, a product that finds its meaningfulness only in the unity of its elements, and whose value for the visitor is strictly dependent on the consistency of the components. However, it is only during the visit and the fruition of the destination that tourists verify if the expected benefits are real. The fact that the destination as a tourist product can be well known only after the use means that it can be conceives as an experience good or, to be more precise, “a collection of experiences gained by the traveller” (Gunn, 1972, as quoted in Manente, 2008).

From the point of view of the supply the destination can be seen not only as a place where tourist activities have been developed and then tourist products are produced and consumed, but also as a unite tourist product resulting from the joint action of different stakeholders operating in the same geographical space, offering a specific supply involving a set of resources, activities and actors of a territory as well as the local community, constituting a unified tourist offer system (Manente, 2008).

A closer look will reveal that what these perspectives have in common is the conception of tourism destination not only as a mere geographical place, but as “an amalgamation of products, services, natural resources, artificial elements and information that is capable of attracting visitors into a place” (Leiper, as quoted in Manente et al., 2008).

All these aspects are perceived in the context of a destination as a whole package, often impossible to separate from the geographical place, to an extent that destination seems to be conceived as a tourist product itself composed by several elements, and as such it needs to reach, maintain and defend its competitive positioning on the global market (Manente et al., 2008).

2.3 Destination lifecycle

The concept of destination, seen by several authors as a composite tourist product itself, includes a combination of tangible and intangible elements, such as natural, cultural and human resources, attractions, facilities, services and activities around a specific centre of interest, creating an overall visitor experience. Tourism destinations are not something static or immutable, but on the contrary, like any other kind of product, they constantly change and evolve over time, they rise and fall in popularity, and their success can often be influenced by internal or external factors outside the control of the destination (UNWTO, 2007). This process can be understood as a proper lifecycle and to explain it we’re going to make reference to one of the most cited and applied models within the field of tourism studies, the Butler sequence, presenting five different stages of destination growth, intended under free market and sustained demand conditions:

- Exploration: during this stage small numbers of tourists moved by curiosity are attracted by natural or cultural attractions and are dispersed throughout the destination following irregular visitation patterns, not influenced by any consideration of seasonality (Butler, 1980). The limited tourists number do not require the establishment of any specialised facility or service and their presence has little significance on the economic and social life of the locals. Visitors will accommodate themselves to already existing facilities, so the contact with local residents is likely to be high, which may itself represent a significant attraction. All things considered, the locals seem to maintain control and the tourism “industry” as such is still non-existent in this phase, which can be described as a kind of informal pre-tourism stage (Weaver et al., 2007).

-

Involvement: in this phase the tourist flow increases slowly and assumes some regularity. There is limited involvement by local residents, governments and public agencies who begin to provide some facilities primarily or even exclusively for visitors, including advertising, market areas and some level of organization in tourist travel arrangements. Tourist seasons can be expected to emerge and adjustments will be made in the social pattern of the local residents involved

(Butler, 1980). In this phase the still largely informal tourism sector begins to show signs of concentration and the visitor numbers are large enough to generate significant revenues. The destination maintains local control but opens the way for nonlocal participation. These developments indicate that the area is gradually being integrated more formally into the tourism system, with formal businesses becoming more involved because of the increased tourist demand (Weaver et al., 2007).

- Development: this stage is characterized by rapid tourism growth and dramatic changes involving all aspects of the sector in a relatively short period of time. Some changes in the physical landscape will be noticeable, such as the appearance of concentrated tourist districts, and several types of attraction will be developed and marketed specifically (Butler, 1980). While in the early stages tourists represented a normal part of the local routine, the continuous rise of demand in the development stage will put pressure on locals, so that also the attitude of residents towards visitors might experience a rapid transformation. In general, we can affirm that as the destination is rapidly integrated into the formal tourism system, larger non-local and transnational companies might gain control over the process, arranging and facilitating the tourists’ travel experience (Weaver et al., 2007). The consequence could be a decline of local involvement and control of development, with a greater necessity of public sector intervention for providing larger, more elaborate and up- to-date facilities.

- Consolidation: during this phase the growth rate of visitors arrival may be subject to a decline, although the total amount of tourism related activity continues to increase, creating high-density tourism districts. In some cases, the level of tourism development begins to exceed the environmental, social and economic carrying capacities of the destination, thereby indicating increased deterioration of the tourism product (Weaver et al., 2007). Due to the presence of high visitors’

concentration and mass tourism patterns, some opposition and discontent among permanent residents is expected to arouse, particularly from part of those not involved in the tourism industry in any way, who feel somehow deprived and restricted upon their activities (Butler, 1980). The destination becomes wholly integrated into large-scale, globalised tourism systems and tourism increases its

political importance, becoming a major part of the local economy, with a high degree of dependence on seasonality.

- Stagnation: during this stage the peak number of tourists and levels of associated facilities will have been reached. The destination will have a well-established image but may be considered less desirable or fashionable, being incapable of attracting new visitors, which implies a high reliance on repeat visitation. The capacity levels for many variables will be reached or exceeded with attendant environmental, social and economic problems (Butler, 1980). Surplus capacity will be available and strenuous efforts will be needed to maintain levels of visitation, leading to a high turnover of business properties and further product deterioration due to the high fixed costs involved in the sector (Weaver et al., 2007).

Figure 1: The Butler sequence (Weaver at al,. 2007, p.307)

As we can observe from Figure 1, it is evident that the stagnation phase is associated to a certain degree of stability in the visitor intake curve, indicating that this stage can theoretically persist for an indefinite period. However, it is likely that the destination will eventually experience either a further downturn or upturn:

- Decline: in this case the destination will no longer be able to compete in the marked and the number of visitors decrease. This can be due to many factors, such as the dissatisfaction of repeat tourists, the inability of local stakeholders to revitalize their offer, resident antagonism or the entrance of new competitors (Weaver et al., 2007).

The decline might also be characterized by a high rate of properties and tourist, which can create a negative impact on the attractiveness and viability of other activities, creating a sort of ‘snowballing effect’ that can lead to the substitution of tourism facilities with non-tourism related structures, with destination progressively loosing its tourist function (Butler, 1980).

- Rejuvenation: the best scenario can take place after the stagnation stage but also following a period of decline and is associated, almost always, with the introduction of new attractions, initiatives and measures aimed at recapturing the destination’s competitive advantage and uniqueness. It is not a spontaneous process, but instead the result of a good cooperation between private and public actors, their combined efforts as well as proactive strategies by destination managers and entrepreneurs (Weaver et al., 2007).

The model is structurally simple being based on the same concept of the product lifecycle curve that has long being used by economists and marketers to describe the market behaviour in purchasing consumer goods. In the same way, the S-shaped resort cycle curve proposed by Richard Butler explains the process of destination development in which change from one stage to another is usually marked by a transition rather than a sharp boundary, although specific events can act as a clear turning point. In general, we can say that destination lifecycle can be regarded as a process that is possible to redirect through appropriate management actions, so the Butler sequence can be useful to understand the possible implications of the current destination positioning and related needs of intervention. However, we must also say that small-scale destinations have proved to be more suitable to the application of the model, since in large-scale destinations tourism may tend to be scattered and concentrated only in certain areas (Weaver et al., 2007). Given all these elements, destination management represents a key strategy for both mature and emerging destinations, in order to satisfy an ever- demanding consumer, ensuring sustainable development and positive impacts, and then gaining, holding or winning back a strong position on the global tourism market.

2.4 Organizational structure

As we mentioned, destinations can be conceived on different scales mainly in terms of

geographical extension. To have a clear view over the topic however, it’s important to introduce an additional classification element, distinguishing destinations on the basis of the organizational approach adopted and the hierarchy of responsibilities and roles of stakeholders involved in their tourism development. The literature concerning destinations’ organisational structures is based on a close similarity between the business organisation of the firm and the tourism destination. According to Gajdošík (2017), this parallelism allows the application of the strategic management theories traditionally applied to firms to the management of a destination, which by selecting the appropriate combination of resources can achieve a competitive advantage, creating expected performance and yields. So far two extreme theoretical models of organisational structure of destinations were identified: community and corporate.

According to Martini (2017), the corporate destination model refers to a delimited entity that is usually centrally managed and owned by one or few business corporations, which manage for profit a strategic selection of business units of service providers incorporated by ownership and/or contracts. These corporations have a dominant influence on how the destination is operated as a strategic business unit as well as strong political power in the community. According to Bieger (as quoted in Gajdošík et al., 2017) in the most extreme cases this kind of organisational structure contains a redefinition of destination assignments and processes of business reengineering and mergers, ending in a clearly centralised business leadership of the destination. In general we can say that such destinations are more suited to a management style that is very similar to the ones applied in single companies. Moreover, financial capacity and power of the above mentioned business corporation can strongly influence the spatial and product development at destination level (Gajdošík et al., 2017). In this category are included mobile destinations (such as cruises), theme or amusement parks, vacation resorts, and other tourist destinations whose construction is the result of entrepreneurial initiatives and whose functioning is associated to private cooperation. In other words we can define corporate destination as a particular type of organizational structure that distinguishes itself for the existence of a control unit fulfilling the coordination function according to a hierarchical top-down approach, exercised by the central ownership or by a designated management company. This allows managing the destination’s elements using an integrated logic and typical corporate strategies, especially when it comes to

commercial and marketing policies. In many cases the high concentration of tourist offer within their boundaries can limit the contribution and profit of local residents and actors who are not directly involved in the property, offering economic benefits mainly to investors (Martini, 2017).

The organisational framework of the community model of destinations instead doesn’t seem to have much substance, consisting of specialised independent business units operating in a decentralised way in a certain area where no unit has any dominant administrative power or exclusive ownership. These complementary and competing stakeholders are interrelated and together shape the tourism product (Gajdošík et al., 2017). Strategic leadership is anchored in a stakeholder-oriented management and concerned with issues of sustainability of the environment, destination planning, product development, destination marketing, particular co-operation projects, etc.

(Lazzeretti et al., 2006). In this particular organizational framework, the territory as a whole is offered on the tourism market and the ownership of resources is widespread among individual units. From a methodological point of view, the management of community destinations appears to be more complex compared with that of the corporate model, and mainly lies within the competence of political and administrative institutions, often the local government or management organisations with local government participation or influence. Beyond the closer involvement of public entities, it’s important to highlight the necessity of developing a coherent tourism supply based on a systemic view that takes into account the great variety of local actors involved as well as their individual interests and objectives.

The above-analysed approaches represent two extremes in the nature of the distribution of power, responsibilities and control of resources within a destination, implying different degrees of centralization of the governance functions as well as interdependence among stakeholders. Several combined approaches also exist on the market, revealing a continuum of situations that incorporate both dimensions. In this regard it is important to say that the type of organizational structure prevailing can significantly affect the management of a destination, given that organizational measures represent one of the main management functions (Martini, 2017).

3 Managing the destination

Tourism is an extremely competitive industry and to compete effectively destinations have to provide to visitors excellent value, which depends on many aspects working together in unity. From when they arrive at the destination, until they leave, tourists’

evaluation is affected by many services and experiences including a range of public services, private products and community interactions and hospitality. For this reason it is essential that the various components of the visitor’s stay are managed and coordinated to maximise customer value throughout the visit (UNWTO, 2007).

Effective destination management should allow destinations to maximise tourism value not only for visitors, but also for all other stakeholders involved, ensuring local benefits and sustainability, taking into account that each of them benefits from tourism and contributes to it in different ways, having diversified interests and objectives, thus perceiving and valuing costs and benefits subjectively. The way to face successfully all these challenges, as well as the new challenges continuously brought to light by new trends and changes affecting the tourism sector (see paragraph n.1), is through the implementation of an effective management approach, which requires, first of all, to be aware of the fact that the destination is a system, defining and understanding its actors, linkages, interactions and competitive environment (Manente, 2008).

3.1 The systemic nature

As previously argued, the tourist product of a destination, which is often identified with the destination itself, is composed by several heterogeneous but complementary elements, goods and services, supplied by firms belonging to different industries that are mainly, but not exclusively, located in the tourist destination. The intrinsic heterogeneity of the tourist package, together with the existing complex interactions among firms, tourists and residents, reveal a systemic nature associated to tourism, which has also been recognised by the Italian legislation (Legge Quadro sul Turismo, n.

135/2001) by means of the creation of an economic policy instrument, namely the Local Tourist System (LTS): “We call local tourist systems, homogeneous or integrated tourist environments, which comprise territories also belonging to different regions, and which are characterized by the integrated supply of cultural, environmental goods and tourist

attractions, including typical agricultural and local handicraft products, or those characterised by a widespread presence of individual or associated tourist firms”

(National Tourist Law Reform, Law 29 March 2001 No. 135, as quoted in Candela et al., 2005). LTSs represented a new way to conceive and administrate the territory aiming at overcoming a previously existing fragmentation, enhancing the integration between tourism and other industries. The systemic nature of tourism and the identification with its geographical representation, that is, the destination, can potentially increase the effectiveness of the tourist system as a whole, by raising their competitiveness with respect to other tourist destinations (Candela et al., 2005). In light of this concept, management studies have recognized the need to analyse the tourist destination from a systemic point of view, thus exploring the relationships among resources, actors and activities that together form the tourism product. In this context, cooperation and integration among stakeholders operating in the tourism system seem to be fundamental conditions in order to ensure the full satisfaction of tourists' expectations, creating value for the tourism destinations as a whole as well as for the single businesses involved in its supply.

3.2 The stakeholders network

In light of the considerations outlined above, destinations can be seen as market oriented productive systems consisting of demand and supply characteristics. If we consider the supply point of view, they can be considered as a cluster of interrelated stakeholders embedded in a social network (Gajdošík et al., 2017) or, in other words, an organizational form characterized by interdependence and coordination between units that are connected by a certain type of relationship (Presenza, 2007). The higher will be the number of actors involved in the destination supply, their level of differentiation, their own and distinct needs and interests; the more will increase the complexity inherent to the tourist destination management. Indeed, the development of a destination is linked to the effectiveness of collaboration and integration among the numerous strategic subjects operating in it.

If we think more in detail about the most important stakeholders involved in the process, we can identify some major clusters, as pointed out by Della Corte (2013):