CU-BSC.TTM-SEM-IV-Destination marketing-Second Draft

selected archaeological sites & sanctuaries.The plan also included construction of youth hostels & tourist bungalows. For the first time in the sixth five-year plan (1980-85), the Planning Commission recognized the importance of tourism in the following words: “Tourism, both domestic and international had rapidly won considerable recognition as an activity generating a number of social and economic benefits like promotion of national integration and international understanding, creation of employment opportunities, removal of regional imbalances, augmentation of foreign exchange earnings, thus redressing the balance of payments situation, etc. It is significant that many of these beneficial aspects of domestic and international tourism have special relevance to the socio-economic scene in India as emerging in the Sixth Plan period. Tourism also tends to give support to local handicrafts and cultural activities, both in urban and rural areas. Expenditure by tourists has a multiplier effect and also generates considerable tax revenue for the government, both in the Central and State sectors. It is also relevant that the various multi-faceted socio-economic benefits of tourism are achieved with a relatively low level of investment”. In the seventh plan (1985-1990) tourism was given the identification as Industry. In the eighth plan (1992-1997) the involvement of the private sector gained much attention and importance was given to the tourism product diversification and development of all inclusive “special tourism areas”. In the ninth five-year plan (1997-2002), for the promotion and development of tourism in north eastern states was carried out with funds. Tourist circuits were developed. In the tenth five-year plan (2002-2007), vast job opportunities were created. In the eleventh five-year plan (2007-2012) assistance to Hotel Management Institutes throughout the country, plan for capacity building, market research, overseas promotion and publicity, assistance for large revenue generating projects, computerization and involvement of Information Technology. The current twelfth five-yearplans on tourism (2012-2017) adopts a pro-poor tourism approach aimed at increasing the net benefits to the poor from tourism and ensure that tourism growth contributes to poverty reduction. It also plans to improve tourism infrastructure and develop niche tourism products. The principal strategy to realize India’s enormous assets with tourism potential viz., historical sites, places of religious significance, and its vast range of national attractions, must be to focus on clusters or circuits around such assets. It encourages vertical and horizontal integration throughout the tourism industry. The milestones in Tourism Planning Progress in India:  1946: Sir John Sargent Committee on Tourism  1947: Report of Sir John Committee 51 CU IDOL SELF LEARNING MATERIAL (SLM)

 1949: Sir John Committee Suggestions, Govt. started branches of Tourism in Delhi, Calcutta, Bombay and Madras  1951-55: First Five Year Plan, No major considerations for tourism development  1956-60: Allotment for tourism with name of transportation Division  1957: Establishment of Department of Tourism  1958: Establishment of Tourism Department Council  1960: Establishment of Indian Tourism Development Corporation (ITDC)  1966: Establishment of Department of Aviation  1966: Establishment of Department of Aviation and Tourism  1967: Establishment of Ministry of Tourism and civil Aviation  1982: Declared First time Tourism Policy 1986: Establishment of National Committee on Tourism  1986: Separate Department of Tourism  1986: Tourism as an industry declared by Government  1986: Separate department with cabinet minister 1988: Establishment of Ministry of civil Aviation Tourism  1991: Tourism as a source of Foreign Investment  1992: Nation action plan for tourism  1995: Establishment of Tourism cell  1988-99: Tourism with export businesses  1999-2000: Visit India Year  2002: Launch of Incredible India  2009: Introduction of Atithi Devo Bhava campaign  2017 - Launch of Incredible India 2.0 3.5.1 Tourism Planning - Two important Committees in India Sir John Sergeant Committee (1945): 52 CU IDOL SELF LEARNING MATERIAL (SLM)

 The first effort to promote tourism in India was made in 1945, when a committee was set up by the Government of India under the chairmanship of Sir John Sergeant.  The main recommendations of the committee were the following: o Setting up a separate representative organization of tourism with regional offices in metropolitan cities and to increase of Tourists Traffics  Initiatives: o Publicity of tourism both in India and foreign countries o Preparation of guide books, folders, posters, etc L. K. Jha Committee Recommendations (1963):  The Government of India appointed an ad-hoc committee on tourism in March 1963, to investigate the reasons for decline in tourist arrivals in 1962.  Additional tourist offices abroad were opened.  Provision of shopping and entertainment facilities  Setting up three government corporations to develop hotel, Transport and entertainment facilities  The need to build 5500 additional hotel rooms within the next five years  Improvement in airport facilities  Training of immigration and customs staff  Increase tourist publicity 3.6 TOURISM PLANNING – INTERNATIONAL CONTEXT The prominent planning initiatives in terms of international context are listed as follows:  Every nation is responsible for promotion of tourism by setting up a central organization called the National Tourism Organization (NTO). E.g.: Singapore has a Singapore tourism board to market and develop the tourism industry in Singapore.  The level of involvement of the government in tourism may depend on several factors such as the economic contribution of tourism, earning foreign exchange, permitting foreign investments and rate of employment in tourism.  The setup of planning strategies to enhance interest among tourism stakeholders. 53 CU IDOL SELF LEARNING MATERIAL (SLM)

 The contribution of planning in tourism to realise economic, social and ecological consequences.  Start-up semi-official bodies or private voluntary organizations of Hoteliers, travel agents etc  Developed countries have advanced use of technology. E.g.: virtual reality in Airports. 3.7 IMPACTS OF TOURISM PLANNING The proper planning in destination will have productive changes in a destination. Meanwhile, poor planning leads to deterioration in destination image in the market. Some of the impacts are given below: 1. Physical impacts: It includes a planning in permanent or permanent alteration of the physical environment such as changes in historical/cultural landmarks and quality of facilities. 2. Human impacts: The need of planning is to educate tourism employees and local residents about the benefits of tourism to the destination. The planning aids in preserving the cultural identities of communities. 3. Marketing impacts: The planning leads to new marketing opportunities, market shares and packaging opportunities. 4. Organizational impacts: The impact of planning in organization deals with a fragmented approach to the marketing and development of tourism. 3.8 STEPS IN TOURISM PLANNING Tourism planning is goal-oriented, making an effort to achieve certain objectives by matching available resources with the needs and wants of people. A proper tourism planning involves certain processes to deliver tourism resources and information to tourists with defined steps. As planning needs a systematic approach, a series of steps are designed to develop and promote a destination. Though every destination requires a unique way of planning, the basic steps remain similar. These are the ten steps in tourism planning. Step 1: Setting goals and objectives Step 2: Identifying tourism system Step 3: Gathering of Data a. By visitor survey 54 CU IDOL SELF LEARNING MATERIAL (SLM)

b. By market survey Step 4: Analysis and generation of Alternatives Step 5: Evaluation of Alternatives Step 6: Feasibility Analysis Step 7: Impact Assessment a. Impacts on Local Government b. Impacts on the Business c. Impacts on residence Step 8: Selection of the best plan Step 9: Implementation of plan Step 10: Monitoring and evaluation Step 1: Setting goals and objectives The prominent step is to set goals and objectives with clear statements. It must address the broader purposes. Goals can be formed by collecting information from the target audience and analysing the needs and demands. Then precise objectives can be formulated. Step 2: Identifying tourism system When planning, it is important to first define its scope and characteristics. Many questions to be asked to get clear vision about the plan. For example: What does tourism mean? Which community resources and organizations serve tourists or could serve tourists? It is also important to recognize the public and private organizations involved with tourism. The tourism system can be divided into tourism resources and tourism organizations. Tourism resources include natural resources (mountains), cultural resources (ethnic practices), human resources (tourism professionals) and capital resources (capital). Tourism Organizations combine various products and services for the tourist. It deals with off-site and on-site services. Coordination, planning, technical assistance, research and regulation. Few off-site services are development, promotion and management of tourism resources. Public hearings, workshops, and advisory boards are also certain ways to obtain public involvement in tourism planning. Step 3: Gathering of Data This step is very important because it provides microscopic details about the destination. It makes the plans more appropriate. It can be achieved by doing two surveys namely visitor survey and market survey. 55 CU IDOL SELF LEARNING MATERIAL (SLM)

 Visitor survey: Visitor survey includes identification of the size and nature of visitors who are attracted or who will be attracted to that destination.  Market survey: Market survey is analysing the potential market by directly collecting feedback from the target audience or using relevant marketing survey tools. Step 4: Analysis and generation of Alternatives In this step, identify different methods and have multiple plans. It happens through brainstorming. Some of the errors made at this stage are thinking too narrowly or screening out alternatives prematurely. It is wise to involve potential tourism stakeholders to get multiple ideas and plans. Few questions may be asked to devise the plans.  How much importance should be assigned to tourism within a community or region?  How much budget is allocated and how much can be saved?  Which organizations can be included for planning?  What are the roles of public and private sectors?  Which market segments should be pursued?  What kinds of tourism products and services should be provided?  What kinds of promotion should be used, by whom, in which media, how much, when? Step 5: Evaluation of Alternatives Evaluate whether the plan is able to meet the stated goals and objectives or not. It is important to do a systematic evaluation of tourism development and marketing alternatives. Step 6: Feasibility Analysis A feasibility analysis is an evaluation of a project to determine the viability of an idea. Screen of alternatives and eliminate the plans based on feasibility analysis due to economic, environmental, political, legal, or other factors. With the remaining set of alternatives, pay more attention to the market potential, market segment and financial plan. Then analyse the competitiveness and evaluation of the local advantages and disadvantages compared to the competition is needed. If possible, forecasts for the travel market in the destination. Step 7: Impact Assessment In this step, the political, social, economic and environmental impact assessment is done and the planning techniques are devised accordingly. 56 CU IDOL SELF LEARNING MATERIAL (SLM)

 Impacts on Local Government: Tourism planning has impacts on local governments because it has to take care of the services essential to tourism development, including highways, public parks, law enforcement, protection of local resident’s rights, water and sewer, garbage collection and disposal. A fiscal impact analysis evaluates the impact of tourism on the community's tax base and local government costs.  Impacts on the Business: Businesses that are directly involving tourists benefit from sales to tourists. For example, a local textile industry may sell linens to hotels. Supply firm that serves hotels and motels catering primarily to tourists. If most products and services for tourists are bought outside of the local area, much of the tourist spending \"leaks\" out of the local economy. The more a community is \"self-sufficient\" in serving tourists, the larger the local impact.  Impact on residence: Local residents may experience both positive and negative impacts from tourism development. Hence the planning includes increased employment and income for the community. Step 8: Selection of the best plan In this step, the best plan out of alternatives is chosen to be implemented. While selecting the best plan, it is vital to check the feasibility of the plan. Step 9: Implementation of plan In this step, the plan is implemented in the market by analysing the market situation. Step 10: Monitoring and evaluation A clear monitoring in implementation of the plan is required for the success of the plan. Goals and objectives are evaluated periodically. In unforeseen circumstances, plans can be altered to meet the goals and objectives. A set of specific actions should be prescribed with clearly defined responsibilities and timetables. 3.9 SUMMARY  Uncontrolled tourism planning affects the carrying capacity of the destination.  Tourism planning models include public involvement, participatory planning, grass root planning and integrative planning. For example, Governments dedicate quality time frames in collaboration with potential tourism stakeholders to devise planning strategies and policies in order to expand the income from tourism in regional, national and international levels. 57 CU IDOL SELF LEARNING MATERIAL (SLM)

 According to Hall (1970), “Planning is concerned with anticipating and regulating change in a system, to promote orderly development so as to increase the social, economic and environmental benefits of the development process. To do this, planning becomes “an ordered sequence of operations, designed to lead to the achievement of either a single goal or to a balance between several goals.”  Tourism can be used as a tool to yield a progressive growth in a destination through proper planning and management methods.  Planning can be used to upgrade and be on par with these changing market trends.  The conceptual framework is useful to evaluate tourism plan development and implementation depending on communication between organizations at international, national and regional levels.  The constraints in tourism planning can vary from one destination to another destination. It also depends on the functions of institutions, less involvement of the local community, cultural variations, political structure, available resources and many more.  There are five major levels of tourism planning. They are International level, National Level, Regional level, Destination level and Site level.  There are five major types of tourism planning. They are Spatial Tourism Planning, Sectoral Tourism Planning, Integrated Tourism Planning, Centralized Tourism Planning and Decentralized Tourism Planning  In India, planning for the country including tourism was initiated by setting up the constitution which came into force on 26th January 1950.  In international context, every nation is responsible for promotion of tourism by setting up a central organization called the National Tourism Organization (NTO)  Steps in tourism planning: Setting goals and objectives, Identifying tourism system, Gathering of Data, Analysis and generation of Alternatives, Evaluation of Alternatives, Feasibility Analysis, Impact Assessment, Selection of the best plan, Implementation of plan and Monitoring and evaluation. 58 CU IDOL SELF LEARNING MATERIAL (SLM)

3.10KEYWORDS  NTO - National Tourism Organizations  Visitor survey: Visitor survey includes identification of the size and nature of visitors who are attracted or who will be attracted to that destination.  Market survey: Market survey is analysing the potential market by directly collecting feedback from the target audience or using relevant marketing survey tools.Two important Committees in India: Sir John Sergeant Committee (1945) and L. K. Jha Committee Recommendations (1963)  Planning at international, national, regional and local level can direct tourism policies and marketing strategies 3.11 LEARNING ACTIVITIES 1. Choose any one untapped destination in India. Try to identify and analyse the steps involved in tourism planning. ___________________________________________________________________________ ___________________________________________________________________________ 2. Select any one destination in Gujarat. Analyse the impacts of tourism planning on residents of that destination. ___________________________________________________________________________ ___________________________________________________________________________ 3.12 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Define tourism planning 2. List the four main types of influences that affect tourism development plans. 3. Mention any four constraints in tourism planning. 4. Write a short note on Sir John Sergeant Committee. 5. Describe L. K. Jha Committee Recommendations. Long Questions 59 CU IDOL SELF LEARNING MATERIAL (SLM)

1. Imagine you're writing a proposal to develop Thekaddy in Kerala as an ecotourism destination. Apply the steps involved in tourism planning. 2. “Bhangarh Fort is identified as one of the haunted forts of India.'' Analyse the impacts of Tourism planning in promoting and marketing Bhangarh Fort. 3. Elaborate on conceptual framework in tourism planning. 4. Analyse the need of tourism planning to revive the destination from the decline stage. 5. Explain the milestones in Tourism Planning Progress in India. 6. Elucidate the levels and types of tourism planning. B. Multiple Choice Questions 1. Sir John Sergeant Committee was formed in ____________ a. 1945 b. 1946 c. 1947 d. 1948 2. Tourism can be used as a tool to yield a _________ growth in a destination through proper planning and management methods a. decreasing b. inactive c. regressive d. Progressive 3. L. K. Jha Committee Recommendations was given in _______________ a. 1961 b. 1962 c. 1963 d. 1964 4. NTO stands for ____________ 60 a. National Tourism Organization b. National Tourism Optimization CU IDOL SELF LEARNING MATERIAL (SLM)

c. National Time Organization d. National Time Optimization 5. _________________ is an evaluation of a project to determine the viability of an idea. a. Free analysis b. Fit analysis c. Feasibility analysis d. Fast analysis Answers 1-a, 2-d, 3-c, 4- a, 5-c 3.13 REFERENCES Reference book  Gunn, C. A., Var, T. (2002). Tourism Planning: Basics, Concepts, Cases. United Kingdom: Routledge. Textbook references  Inskeep, E. (1991). Tourism Planning: An Integrated and Sustainable Development Approach. United States: Wiley.  Martins, Marco. (2018). Tourism Planning and Tourism phobia: An Analysis of the Strategic Tourism Plan of Barcelona 2010-2015. Journal of Tourism, Heritage & Services Marketing. 4. 10.5281/zenodo.1247519. Websites  https://research-methodology.net/planning-process-for-tourism-industry/  https://tourismteacher.com/tourism-policy-and-planning/ 61 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT - 4: TOURISM PLANNING - II STRUCTURE 4.0 Learning Objectives 4.1 Introduction 4.2 Environment and Tourism Planning 4.2.1 Environmental Considerations in Tourism Planning 4.2.2 Impacts on Environment in Tourism Planning 4.3 Environmental analysis in Tourism Planning 4.3.1 Carrying Capacity analysis 4.3.2 Limits of acceptable change (LAC) 4.3.3 Impact Mitigation Measures 4.3.4 Environmental Impact Assessment 4.4 Resources and Tourism Planning 4.5 Tourism Resources and its categories 4.5.1 Analysis of Tourism resources 4.6 Summary 4.7 Keywords 4.8 Learning Activities 4.9 Unit End Questions 4.10 References 4.0 LEARNING OBJECTIVES After studying this unit, you should be able to  Describe the basic concept of environment and resources in tourism planning  Explain environmental analysis in tourism planning  Outline resource analysis in tourism planning

4.1 INTRODUCTION In the previous unit, you have studied the basic explanation of tourism planning. In this unit you will learn about various tourism resources and analysing those resources. The tourism resources vary from region to region based on the landscape. The resources also disturbed by nature and human intervention. The unit will also cover environmental analysis in tourism planning. This resource and environment analysis will help the planners to devise feasible planning techniques without hampering the nature, thereby supports sustainability. 4.2 ENVIRONMENT AND TOURISM PLANNING Environment deals with all tangible and intangible tourism resources. In tourism planning, the environment is considered as a basic physical asset using which planning is made. The following criteria are taken into account.  Maintenance of ecological processes, biological diversity and non-renewable resources for future generations. It can be done through several preservation or conservation strategies.  Plan by analysing its long-term impacts.  Carryout cost-benefit analyses.  An environmental and cumulative impact that analyses vital prerequisites to development.  Environmental management systems need to be implemented by the organizations. 4.2.1 Environment Considerations in Tourism Planning Properly planned and controlled tourism can help achieve environmental conservation otherwise it will lead to environmental degradation. Tourism planners need to understand two related environmental concerns.  Conservation of important environmental attributes and maintenance of the overall environmental quality of the area.  Prevention, or at least minimization, of environmental problems that can result from tourism. Those problems include air, water, and noise, and visual pollution, environmental degradation. Various environmental impacts have been documented in ecologically sensitive environments such as tropical islands, marine areas, mountains, and deserts. The physical planning of tourism should utilize the environmental planning approach at all levels. General principles 63 CU IDOL SELF LEARNING MATERIAL (SLM)

and techniques of environmental planning are well established and are adaptable for tourism planning. An important segment of environmental planning for tourism is determination of the carrying capacities or use saturation levels of tourism areas. Carrying capacity indicates the optimum level of facility development and visitor use that will avoid environmental degradation. 4.2.2 Impacts on Environment in Tourism Planning Some major potential impacts of tourism on the environment have been listed below. Figure 4.1: Impacts on Environment in Tourism Planning Impact Aspect Potential Consequences Urban Form  Change in urban expansion or redevelopment  Change in residential, retail or industrial land uses (e.g., move from private houses to hotels).  Changes to the urban fabric (e.g., roads, pavements etc.) 64 CU IDOL SELF LEARNING MATERIAL (SLM)

Infrastructure  Overload of infrastructure (e.g., roads, railways, car parking, electricity grid, communication systems, waste disposal, buildings, and water supply.  Provision of new infrastructure or upgrading of existing infrastructure.  Environmental management to adapt areas for tourist use (e.g., sea walls, land reclamation) Visual Impact  Growth of the built-up area  New architectural styles  People and belongings, litter  Beautification Restoration  Re-use of disused buildings  Restoration and preservation of historic buildings and sites  Restoration of buildings and second homes. Erosion  Damage of built assets from feet and vehicular traffic (including vibration effects) Pollution  Air pollution from tourists and tourist traffic.  Air pollution from non-tourist sources causing damage to build assets Table 4.1: Impact aspects on environment and its potential consequences (Source: Hunter, Colin & Green, Howard, Tourism and the Environment: A Sustainable Relationship? Routledge, 1996.) 4.3 ENVIRONMENTAL ANALYSIS IN TOURISM PLANNING The planning process consists of several types of inter-related analysis such as  Socio-economic impact of tourism development.  Development of types of tourist attractions. 65 CU IDOL SELF LEARNING MATERIAL (SLM)

 Transportation facilities and services.  Analyse the carrying capacity of the area.  Levels of tourism development without degrading environment. 4.3.1 Carrying Capacity analysis Carrying capacity analysis is a basic technique used in tourism and developmental planning. It is done to systematically determine the upper limits of development and visitor use and optimum utilisation of tourism resources. As defined by Mathieson and Wall (1982), carrying capacity “is the maximum number of people who can use a site without an unacceptable alteration in the physical environment and without an unacceptable decline in the quality of experience gained by visitors”. Hence it can be understood that, without an unacceptable adverse impact on the society, economy and culture of the tourism area, a destination has to be developed. Carrying capacity analysis provides an essential guideline to be used in formulating a tourism plan at any level. Few types of carrying capacity are listed below: Physical carrying capacity (PCC): This is the maximum number of tourists that an area is actually able to support. In the case of an individual tourist attraction, it is the maximum number that can fit on the site at any given time and still allow people to be able to move. This is normally assumed to be around 1m per person. Formula: “PCC per a day = area (in metres squared) x visitors per metre x daily duration\" Economic carrying capacity: This is a level of acceptable change within the local economy of a tourist destination. It is also the extent to which a tourist destination is able to accommodate tourist activities without the loss of local regular work. It also includes the revenue gained through tourism development. Social carrying capacity: This relates to the socio-cultural impacts associated with tourism development. It can be described by Doxey’s Index of irritation. The indicators for over social carrying capacity are reduced visitor enjoyment and increased crime. Biophysical carrying capacity: This relates to the extent to which the natural environment is able to tolerate interference from tourists. It also concentrates on the possibility of regeneration of habitats. 66 CU IDOL SELF LEARNING MATERIAL (SLM)

4.3.2 Limits of acceptable change (LAC) Limits of acceptable change was the first of the post-carrying-capacity visitor management frameworks developed to respond to the practical and conceptual failures of carrying capacity. It is based on the idea that any tourist activity is having an impact and therefore management should be based on continuous monitoring of the sites. It is also possible that within the Limit of acceptable change framework a visitor limit can be identified. There are four major components of the LAC process:  Specification of acceptable and achievable social and resource condition  Understanding of the relationship between existing conditions and those judged acceptable  Identification of management actions which will assist in achieving these condition  Monitoring and evaluation of effectiveness programmes. This framework has nine steps. They are as follows: 1. Identify area concerns and issues. 2. Define and describe opportunity classes. 3. Select indicators of resource and social conditions. 4. Inventory existing resources and social conditions. 5. Specify standards for resource and social indicators for each opportunity class. 6. Identify alternative opportunity class allocations. 7. Identify management actions for each alternative. 8. Evaluate and select preferred alternatives. 9. Implement actions and monitor conditions. Step 1: Identify issues and concerns: The purposes of this step are as follows  Identify features of specific concern to be maintained or achieved  Identify specific locations of concern  Provide a basis for establishing management objectives  Guide allocation of the protected landscape to different opportunity classes Step 2: Develop and describe opportunity classes: The purposes of this step are as follows 67 CU IDOL SELF LEARNING MATERIAL (SLM)

 To devise a range of different opportunity classes  To facilitate the provision and maintenance of inter and intra area diversity within the protected landscape. Step 3: Select indicators for resource and social conditions: This step includes  Identification of specific variables which require inventorying and monitoring (for example, vegetation damage, soil erosion, amount of infrastructure, crowding)  Provide the basis for identifying the required management actions. Step 4: Inventory existing resource and social condition: During this step,  Collection of data on the range of resources and social conditions  Establish meaningful standards, and provide decisions Step 5: Develop standards required for each opportunity class: This step involves  Specification of standards that describe acceptable conditions.  Provide appropriate conditions for each defined opportunity class. Step 6: Identify alternative opportunity classes: This step involves the following functions.  Examine options to help define what conditions are acceptable in terms of the resource conditions.  Examine options to help define what conditions are acceptable in terms of the social conditions. Step 7: Identify management actions for each alternative: During this step the following activities are performed.  Examination of the range of management strategies that would be required for each alternative opportunity class  Determination of viability. 68 CU IDOL SELF LEARNING MATERIAL (SLM)

Step 8: Evaluate alternatives and select preferred alternative: This step involves the following activities are performed.  Finalizing opportunity class allocations  Finalizing preferred management programme. Step 9: Implement actions and monitor conditions: During this step, the management programme is implemented to achieve all the above mentioned eight steps. It includes  Monitoring ensures periodic and systematic feedback on the working of management action.  Identification of trends or variances that may require the introduction of new actions. 4.3.3 Impact Mitigation Measures Butler (1991) provides a review and critique of measures which can be used to decrease the pressures of tourism on the environment. It mainly focused on transformation from mass tourism to alternative tourism. It also insists that even the most environmentally conscious tourists can damage the environment. He stated four main approaches to impact mitigation. They are as follows. i) Changing the tourist type. ii) Changing the resource for resistance. iii) Education. iv) Curbing tourist numbers. 4.3.4 Environmental Impact Assessment In order to focus on environmental costs, many countries have included in their legislation Environmental Impact Assessment (EIA) for all projects. In similar lines, EIA is also included in tourism projects. The aim is to predict the environmental consequences of a proposed development plan. It also identifies the potential risks and takes necessary measures to avoid environmental degradation, or compensate for environmental damage that are identified in a destination. EIA also examines the following factors:  Environment auditing procedures  Limitations for natural resources 69 CU IDOL SELF LEARNING MATERIAL (SLM)

 Environmental problems and conflicts that may affect viability of tourism project  Possible disastrous effects on people, flora and fauna, soil, water, air, landscapes, and cultural sites.  Some other indicators that are used to measure environmental impacts are climate change, urban environmental quality, natural resources, eutrophication, acidification, toxic contamination, waste, and energy and transport indicators. The Environmental Impact Assessment (EIA) in India indicates the need for timely availability of reliable and authentic environmental data to achieve full benefits of EIA. Multiple agencies are involved in collection of environmental data through various projects. Environmental Information Centre (EIC) has been set up to serve as a professionally directed clearing house of environmental information that can be used by MoEF, project proponents, consultants, NGOs and other stakeholders involved in the process of environmental impact assessment in India. EIC stores the data in GIS format and caters to the need of creating and disseminating organized environmental data for various developmental initiatives all over the country in a cost-effective way. 4.4 RESOURCES AND TOURISM PLANNING A resource is a source or supply that produces benefits. From a human perspective, natural resources are assets obtained from the environment to satisfy human needs and wants. From a biological or ecological perspective, a resource is the source that satisfies the needs of living organisms. All the resources constitute of three main characteristics: 1) Utility 2) Limited availability 3) Potential for depletion or consumption. Also, resources are classified as follows 1. On the basis of origin 2. On the stage of development 3. On the basis of renewability 4. On the basis of distribution and ownership On the basis of origin: 70 CU IDOL SELF LEARNING MATERIAL (SLM)

 Abiotic resources comprise non-living things (e.g., land, water, air and minerals such as gold, iron, copper, silver)  Biotic resources are obtained from the biosphere. For examples: Forests and their products, animals, birds and their products, fish and other marine organisms. Minerals such as coal and petroleum are sometimes added in this category because they were formed from fossilized organic matter that takes longer duration. On the stage of development:  Potential Resources are known to exist for future use. For example, petroleum may exist in many parts of India having sedimentary rocks, but it remains a potential resource, until the time it is actually drilled out and comes into usage.  Actual resources are those that are being used in present times. It has been surveyed clearly, quantity and quality are determined so that it is used presently. For example, petroleum and natural gas is actively being obtained from the Mumbai High Fields.  The development of an actual resource, such as wood processing relies upon the availability of the technology and costs involved to develop. The part of the actual resource that can be developed with available technology and generates profit is called a reserve resource, while that part that cannot be developed because of lack of technology and generates very less profit is called a stock resource. On the basis of renewability:  Non-renewable Resources are formed over a very long geological span. Minerals and fossils belong to this category.  Renewable resources, such as forests and fisheries, can be reproduced relatively quickly. The highest rate at which a resource can be used sustainably is the sustainable yield. Some resources, like sunlight, air, and wind, are called perpetual resources because they are available continuously within a limited rate. On the basis of distribution and ownership:  Ubiquitous Resources: They are found everywhere (e.g., air, light, water).  Localized Resources: They are found only in certain parts of the world (e.g., copper and iron ore, geothermal power). On the basis of ownership: 71 CU IDOL SELF LEARNING MATERIAL (SLM)

 Individual Resources: Resources which are owned by private individuals are known as individual resources. Example: House, Car  Community Resources: Resources which are owned by all members of the community. Example: village pond  National Resources: All the resources which are under the control and monitor of the state or union government. Example: All mineral resources  International Resources: These are international institutions that control and monitor all areas which do not belong to any individual country. Example: Ocean resources of exclusive economic zones and no individual countries can use these resources without the concurrence of international institutions. 4.5 TOURISM RESOURCES AND ITS CATEGORIES The term tourism resources describe natural and man-made attractions, infrastructure, services, and the surroundings that attract tourists to an area and may contribute to the formulation of a tourism destination. Categories of Tourism resources i. Natural Tourism Resources ii. Man-made or Anthropogenic Tourism Resources iii. Symbiotic Tourism Resources Natural Tourism Resources: ➔Natural tourism resources constitute of all the natural elements and factors that has a high degree of attractiveness. These resources reflect their geographical environment and can be supportive for tourism purposes. ➔According to their significant features, these resources can be further classified as geomorphological, climate-based, hydrographical and bio-geographical, and as protected natural heritage. ➔Natural heritage may also be denoted in the UNESCO list, if it contributes to the Earth’s development or the development of life on Earth, if it is the habitat of endangered animal species, or if it is a wild animal reserve. Geomorphologic Resources: 72 CU IDOL SELF LEARNING MATERIAL (SLM)

➔Geomorphological phenomena represent an important natural potential of the lowland regions. These phenomena are caused by vigorous tectonic activity and fault lines along which numerous thermo-mineral springs have formed. ➔It influences a part of the rock complex, as well as the features of climate, soil, vegetation, drainage coefficient, etc. ➔Heights above sea level indicates a complex tourist attraction. ➔Coasts are the most important resource of maritime regions, because they account for the major part of tourism activities. Example.Beach tourism ➔In maritime tourism, the attraction power of islands is determined by their numbers (archipelagos). ➔the seabed is linked to the underwater (diving) activities of tourists. Divers prefer shallow sea beds that provide a greater number of attractions on the floor of the sea. ➔Submarine slopes most suited for underwater tourist activities are those that do not retain sediments or are covered in a thin layer of sediment ➔Winter Mountain tourism has developed rapidly and other branches of tourism to a lesser extent (mountaineering, rock climbing, paragliding, eco-tourism). ➔Stalactites, stalagmites, valleys,caves,rivers, oceans, seas are some examples of geomorphologic resources. Climate Resources: ➔The climate can be an enabling, as well as a constraining, factor in tourism development in specific regions as it changes the most.E.g. Global warming, UV radiations have a major impact on tourism. ➔The bio-climate affects the stay of tourists in a given region. Bio-climate features are in particular connected to the development of health tourism, and they impact on the selection of destinations, as tourists tend to choose regions that suit them the best in terms of bio- climate. ➔The mountain climate with favourable temperature,climate,snowfall and clouds has largely led to the development of winter-sports tourism. 73 CU IDOL SELF LEARNING MATERIAL (SLM)

➔Storm winds play a crucial role in traffic and may cause damage in a destination. Hydrographic Resources: ➔The tourism industry is one of the largest consumers of freshwater used for different needs. E.g.: Water supply to tourists for sanitary purposes. ➔Seawater is a resource that has great attraction for sea tourism, ocean tourism and other water-based adventure activities like kayaking, canoeing and rafting. Bio-geographical Resources: ➔The tourism economy is also focused on the natural cycles of healthy food production by restoring specific types of production like wine-growing, olive growing, animal husbandry in specific region. It also provides protection to biologically vulnerable zones and communities. Protected natural heritage Resources: Around the world, great attention is given to preservation and conservation of natural diversity from saturation. ➔Protection was provided by organizing general campaigns and declaring certain areas as protected zones where tourists are not permitted. Man-made or Anthropogenic Tourism Resources: ➔Attractions that are created by humans or their activities. ➔Anthropogenic resources may be classified as cultural assets, ethno-social resources, artistic resources and environmental resources. Cultural Resources: ➔Cultural and historical heritage refer to cultural assets. These cultural assets represent cultural tourism resources. ➔Cultural heritage in the UNESCO list must meet at least one of the criteria of the Convention on the Protection of Cultural and Natural Heritage: a cultural monument must be authentic, it must have a great impact on the culture and development of a specific period, it must be a unique example of a specific style, it must be linked to ideas and beliefs of universal importance, or it must be an example of the traditional way of life, characteristic of a given culture. 74 CU IDOL SELF LEARNING MATERIAL (SLM)

➔Cultural assets may be classified as immovable, movable, and intangible. ➔ Immovable tourism assets as tourist attractions are monumental units, archaeological sites, memorial areas and buildings, individual sacral buildings, individual profane buildings and garden architecture. ➔Movable cultural assets may be a component part of immovable cultural assets or may be kept in cultural institutions like museums, galleries, libraries, collections or in the possession of citizens. A part of these exhibits is displayed to tourists, such as archaeological findings, furniture, weaponry, clothing, stamps, letters and manuscripts, rare books, money, postal stamps, transportation means and devices, objects that illustrate the development of science and technology, etc. Movable cultural assets may also include sacral items and possessions, and works of visual and applied arts and design. ➔Intangible cultural assets are various forms of spiritual creativity that are transferred on through tradition, in particular, language, folklore, rituals, customs, traditional skills and crafts. Ethno-social Resources: ➔Ethno-social resources denote a characteristic of a people but as a resource it includes folklore, national costumes, handicraft products, gastronomic skills, tourism inclinations and other characteristics. Occasionally, ethno-social resources may be a concrete tourism product of intangible cultural assets. Artistic Resources: ➔Artistic resources are generally associated with aesthetics and creativity. E.g.: Music, drama, literature, painting, sculpture and architecture, cinematography, dance and comic strips/sequential art. ➔Tourists visit cultural institutions such as museums, galleries, libraries, theatres and concert halls. From a tourism perspective, native museums are the core as they provide tourists with information regarding the history and culture of a tourism destination. Ambient Resources: ➔Ambient resources represent the architectural facilities in a destination. E.g.: hotels, industrial facilities, housing facilities, sacral and sports facilities. 75 CU IDOL SELF LEARNING MATERIAL (SLM)

Symbiotic Tourism Resources: ➔Combination of natural and manmade resources. ➔E.g. Caves (Cave is a natural resource and light shows in the caves is manmade resource) 4.5.1 Analysis of Tourism resources Figure 4.1 Flowchart for Analysis of Tourism resources Destination review: A destination is reviewed based on the following factors and resources.  Physical features: It includes geography, climate, biodiversity areas and natural resources.  Policies: It includes tourism development, sustainable development, conservation issues, protected areas, land usage.  Social factors: It includes population profiles, community patterns, socio-economic scenario, political stability.  Market Structure: It includes the need and demand of tourists in destination, organizational structures. Assessment and Stakeholders Engagement: It includes two steps namely Step 1. Involving local stakeholders in the assessment process: It helps to understand community priorities & concerns through Workshops/Training – Consultations – Public Meetings. 76 CU IDOL SELF LEARNING MATERIAL (SLM)

Step 2. Conducting the actual assessments: It includes several components that are listed as follows.  Attractions Inventory: It is determined based on the number of attractions such as Natural attractions, Cultural attractions, Historic and Heritage attractions, Recreational activities. The inventory steps are to list the attractions, map the attractions and rank the attractions. The ranking is based on uniqueness, aesthetic or scenic, biodiversity, cultural value, historical value, uses and activities, community participation, access, product development needs.  Site & Infrastructure Analysis: It includes transportation services, accessibility, public services and evaluation of surroundings.  Market Demand Analysis: It is done to understand the existing resources and demand of tourists. Accordingly, the destination is developed further.  Supply & Competitive Analysis: It helps to understand the supply-side of tourism, functions of tourism organizations and competitive nature.  Socio-Cultural & Natural Resource Use: It supports to know the resident attitudes towards visitors, resident jobs in tourism industries, income levels, seasonality of employment, personal income generated by visitor activities, resident attitudes toward additional development.  Human & Institutional Capacity Assessment: It deals with human resources availability and institutional support.  Environmental Footprint: It is the metric that measures how much nature we have and how much nature is being used.  Cost Benefit Analysis: A cost-benefit analysis (CBA) is the process used to measure the benefits of a decision or taking action minus the costs associated with taking that action. Visioning and strategic planning: This plan development based on the findings from previous stages, conversations and surveys with stakeholders, residents, tour operators, visitors, business owners Recommendation, Next steps and Implementation: 77 CU IDOL SELF LEARNING MATERIAL (SLM)

In this process report is prepared on results and feedback from stakeholders. Accordingly, potential resources and champions are identified to move projects forward. It is followed with short term and long-term plans. 4.6 SUMMARY  Properly planned and controlled tourism can help achieve environmental conservation otherwise it will lead to environmental degradation.  Impacts on Environment in tourism planning: Urban Form, Infrastructure, Visual Impact, Restoration, Erosion and Pollution.  Carrying capacity analysis is a basic technique used in tourism and developmental planning. It is done to systematically determine the upper limits of development and visitor use and optimum utilisation of tourism resources.  Types of carrying capacity: Physical carrying capacity, Economic carrying capacity, Social carrying capacity, Biophysical carrying capacity, Environmental carrying capacity.  It is based on the idea that any tourist activity is having an impact and therefore management should be based on continuous monitoring of the sites.  A limit of acceptable change framework has 9 steps in general.  Four main approaches to impact mitigation: Changing the tourist type, changing the resource for resistance, Education and Curbing tourist numbers.  EIA aims to predict the environmental consequences of a proposed development plan. It also identifies the potential risks and takes necessary measures to avoid environmental degradation, or compensate for environmental damage that are identified in a destination.  A resource is a source or supply that produces benefits. From a human perspective, natural resources are assets obtained from the environment to satisfy human needs and wants. From a biological or ecological perspective, a resource is the source that satisfies the needs of living organisms.  Resources are classified into four divisions: On the basis of origin, stage of development, renewability and distribution and ownership. 78 CU IDOL SELF LEARNING MATERIAL (SLM)

 Steps in analysis of tourism resources: Destination review, Assessment and Stakeholders Engagement, Visioning and strategic planning and Recommendation, Next steps and Implementation 4.7 KEYWORDS  PCC - Physical carrying capacity  LAC - Limit of acceptable change  EIA - Environmental Impact Assessment  EIC - Environmental Information Centre  MoEF - Ministry of Environment, Forest and Climate Change  GIS - Geographic Information system  Stakeholders’ engagement: It represents the involvement of stakeholders in all the possible tourism activities.  Physical carrying capacity (PCC): This is the maximum number of tourists that an area is actually able to support.  PCC per a day = area (in metres squared) x visitors per metre x daily duration  Economic carrying capacity:This is a level of acceptable change within the local economy of a tourist destination.  Social carrying capacity: This relates to the socio-cultural impacts associated with tourism development. It can be described by Doxey’s Index of irritation.  Biophysical carrying capacity: This relates to the extent to which the natural environment is able to tolerate interference from tourists. 4.8 LEARNING ACTIVITIES 1. Choose any one tourist destination in Sikkim. Try to classify the tourism resources on the basis of origin, stage of development, renewability and distribution and ownership. ___________________________________________________________________________ ___________________________________________________________________________ 2. Imagine you're writing a proposal to develop Yercaud in Tamil Nadu as a nature-based tourism destination. Apply the LAC in tourism planning. 79 CU IDOL SELF LEARNING MATERIAL (SLM)

___________________________________________________________________________ ___________________________________________________________________________ 4.9 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Define carrying capacity. 2. List the main types of carrying capacity. 3. Mention four main approaches to impact mitigation. 4. Expand EIC and GIS. 5. Describe EIA. Long Questions 1. Describe the steps involved in LAC in tourism planning. 2. List and explain any ten natural resources in India. 3. Elaborate on environmental considerations in tourism planning. 4. Analyse the need of environmental impact assessment to ensure the sustainability of a destination. 5. Explain on the analysis of tourism resources. B. Multiple Choice Questions 1. LAC stands for _____________ a. Limit of acceptable change b. Limit of approved change c. Line of acceptable change d. Line of approved change 2. PCC stands for ____________ 80 a. Physical carrying capability b. Physical carrying capacity c. Private carrying capability CU IDOL SELF LEARNING MATERIAL (SLM)

d. Private carrying capacity 3. ___________ is the metric that measures how much nature we have and how much nature is being used. a. Environmental footprint b. Environmental free c. Enrich footprint d. Enrich Free 4. Resources are classified based on ____________ a. Origin b. Time c. Cost d. System 5. _______________ is done to systematically determine the upper limits of development and visitor use and optimum utilisation of tourism resources. a. Carrying capacity analysis b. Carrying capability analysis c. Control capability analysis d. Carrying capability approval Answers 1-a, 2-b, 3-a, 4-a, 5-a 81 CU IDOL SELF LEARNING MATERIAL (SLM)

4.10 REFERENCES Reference book  Rao, P. (2018). Environmental Impacts of Tourism in Developing Nations. United States: IGI Global. Textbook references  Knezevic, Rade. (2008). Contents and Assessment of Basic Tourism Resources. Tourism and Hospitality Management, Vol. 14, No. 1, pp. 79-94  Kleiböhmer, W. (2001). Environmental Analysis. Netherlands: Elsevier Science. Websites  http://ramakrishnakongalla.blogspot.com/2015/10/12.html  https://www.aianta.org/wp- content/uploads/2018/03/Kristin_Tourism_Assessment_Feasibility_Analysis.pdf  https://responsibletourismpartnership.org/limits-of-acceptable-change/ 82 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT-5:ENVIRONMENTAL AND MARKET ANALYSIS -I STRUCTURE 5.0 Learning Objectives 5.1 Introduction 5.2 Regional Environmental Analysis 5.2.1 Internal and External Environment 5.3Market Analysis 5.3.1 Tourism Marketing Analysis 5.3.2 Meaning of Market Analysis 5.3.3 Importance of Market Analysis 5.3.4 Dimensions of Market Analysis 5.3.5 Demand Forecasting Methods and Tourist Behaviour 5.3.6 Tourist Decision Making Process 5.3.7 Process of Environment and market analysis 5.4Market Analysts 5.4.1 Responsibilities of Marketing Analyst 5.5Summary 5.6Keywords 5.7Learning Activities 5.8Unit End Questions 5.9References 5.0 LEARNING OBJECTIVES After studying the unit, you should be able to  Analyse the environment using the PESTEL framework and SWOT analysis  Scan the internal and external environment of an organisation

 Describe the intangible services using the concept of market mix  Forecast demand and the tourist behaviour using several models 5.1 INTRODUCTION This unit consists of basic definitions of environmental analysis and market analysis. It provides in-depth understanding on the PESTEL framework, Porter’s Five Forces analysis, and SWOT analysis, Tourism Marketing, Dimension of market analysis, Demand forecasting methods and tourist behaviour. 5.2 REGIONAL ENVIRONMENTAL ANALYSIS According to Wheelen and Hunger (2004), “Environment analysis of organization may be defined as an environmental scan of political, economic, social, technological, legal and strategic factors to identify strategic factors”. And when doing environmental analysis, the analysis involves analysing the internal and external environment of a tourism business. Omary (2007), defines internal environment analysis as a detailed look into the organization, to determine performance levels, the areas of strength, and areas of weakness, in addition to the restrictions, through a comprehensive analysis of the current situation, input elements and the actual position of the organization, to identify the true potential, and its ability to build effective strategies contribute to take advantage of the strengths, and compensate of weaknesses. Yusuf (1999) explains that the analysis of the external environment for any organization (opportunities and challenges) is insufficient from a strategic point since it has to analyse internal environments (strengths and weaknesses). 5.2.1 Internal and External Environment  Marketing environment consists of the factors and forces outside marketing that affect marketing management’s ability to develop and maintain successful relationships with its target customers.  Strategic marketers take micro and macro environments into consideration as it plays a dominant role in a firm’s marketing strategies, campaigns and branding. 84 CU IDOL SELF LEARNING MATERIAL (SLM)

Figure: 5.1 Flow chart for Business Environment Micro environment: Micro environment is inclusive of the business itself, its suppliers, marketing channel firms, customer markets, competitors and the public. Any organization or firm will have a day-to- day transaction with its stakeholders who are also a part of the marketing firm. The favourable outcome or results of a business is highly dependent on the relationship of the firm with its micro environment. The Micro environment of a business constitutes of the following:  The Internal Environment of a Business  Suppliers  Marketing Intermediaries a) Resellers b) Physical Distribution c) Marketing Services d) Financial Intermediaries  Customers a) Consumer 85 CU IDOL SELF LEARNING MATERIAL (SLM)

b) Business c) Reseller • Government • International  Competitors  Public a) Financial public b) Media public c) Government public d) Citizen-action public e) Local public f) General public g) Internal public Macro Environment: The larger collective forces which influence the Micro environment forms the Macro Environment. Figure 5.2 Forces of organization/company 86 CU IDOL SELF LEARNING MATERIAL (SLM)

These forces cannot be under the control of the organization. Macro environment consists of the following.  Demographic Environment a) Population Size and Growth b) Demographic Characteristics and Trends  Economic Environment  Natural Environment a) Shortages of Raw Materials b) Increased Pollution c) Increased Government Intervention  Technological Environment a) Change rapidly b) Creates new markets and Opportunities c) Develop practical and affordable products d) Product Safety  Political and Legal Environment  Cultural Environment a) Cultural Diversity b) Changing Roles c) Emphasis on Health and Fitness d) Desire for Convenience e) Consumerism 5.3 MARKET ANALYSIS According to Ehmke, Fulton and Lusk (2007), “Marketing mix strategy is the strategy to make decisions in a way to promote the right product with the right price at the right place to attract and satisfy customers”. 87 CU IDOL SELF LEARNING MATERIAL (SLM)

A market analysis is a quantitative and qualitative assessment of a market. It examines the market segments, market size, and customer buying patterns, the competition, and the economic environment. 5.3.1 Tourism Marketing Analysis Marketing always focuses around the satisfaction of customer needs, wants, and requirements. It expects to identify the future needs. Tourism is a service industry; these services are intangible which can be known only after the actual experience, so it carries an amount of risk to purchase. A marketing plan contains a number of aspects of integrated, viable and strategic plan, which is known as marketing mix. Marketing mix, as stated, is a right combination of elements designed to get a particular set of consumers, buy a product at a particular price. 5.3.2 Meaning of Market Analysis Successful business plan carries out a market analysis. A comprehensive market analysis forms the basis of the development of a marketing strategy and concrete marketing measures. An effective market analysis will include an accurate description of the target market and thorough market research. The essential characteristics of a market are analysed and described through competitive analysis. The competitive analysis considers individual factors that are important for a market. 5.3.3 Importance of Market Analysis Understanding the characteristics, preference, attitudes, and opinions of visitors and the travel trades is an important starting point for any tourism destination. Market analysis assists in identifying new markets and in monitoring the performance of the tourism sector. The importance attached to market research by the company, tourist development international, has established a dedicated TDI research unit. The TDI research unit is responsible for the primary and secondary research which underpins all consultancy assignments undertaken by tourism development international. Using online research techniques, tourism development international has developed a number of dedicated research services. These include:  Tourism barometer  Visitor’s attractions survey  Business travel monitor  Travel trade survey 88 CU IDOL SELF LEARNING MATERIAL (SLM)

Marketing analysis is one of the key methods of improving customer satisfaction and knowing what factors affect your marketing strategies. Here is a list of most notable reasons for conducting a marketing analysis.  Understanding of the market and customers  Understanding of the value proposition of the product being offered  To understand consumer needs for the company’s product and price settings  Knowing the promotional advertisement or message to be used  Knowing the channel of distribution  Knowing what opportunities exist within the market. 5.3.4 Dimension of Market Analysis Market analysis strives to determine the attractiveness of a market, currently and in the future. Organizations evaluate future attractiveness of a market by understanding evolving opportunities and threats as they relate to that organization's own strengths and weaknesses. The following are some of the dimensions of a market analysis  Market size (current and future)  Market trends  Market growth rate  Market profitability  Industry cost structure  Distribution channels  Key success factors Market Size: It is defined through the market volume and the market potential. Market volume exhibits the totality of all realized sales volume of a special market. The volume is therefore dependent on the quantity of consumers and their ordinary demand. Market potential defines the upper limit of the total demand and takes potential clients into consideration. Market Trends: Market trends are the upward or downward movement of a market, during a period of time. A few techniques to measure marketing effectiveness and trends are:  Customer analysis.  Choice modelling. 89 CU IDOL SELF LEARNING MATERIAL (SLM)

 Competitor analysis.  Risk analysis.  Product research.  Advertising the research.  Marketing mix modelling.  Simulated Test Marketing Market Growth Rate: A better method is to study the specific market trend and sales growth in complementary products. Such drivers serve as leading indicators that are more accurate than simply extrapolating historical data. However, forecasting of the market growth rate is to understood by analysing historical data into the future. Important inflection points in the market growth rate sometimes can be predicted by constructing a product diffusion curve. The shape of the curve can be estimated by studying the characteristics of the adoption rate of a similar product in the past. Market Profitability: While different organizations in a market will have different levels of profitability, they are all similar to different market conditions. Michael Porter devised a useful framework for evaluating the attractiveness of an industry or market, and it is commonly known as Porter five forces analysis. Industry Cost Structure: The cost structure is important for identifying key factors for success. To this end, Porter's value chain model is useful for determining where value is added and for isolating the costs. The cost structure also is helpful for formulating strategies to develop a competitive advantage. Distribution Channel: Examining the following aspects of the distribution system may help with a market analysis:  Existing distribution channels - can be described by how direct they are to the customer.  Trends and emerging channels - new channels can offer the opportunity to develop a competitive advantage.  Channel power structure - for example, in the case of a product having little brand equity, retailers have negotiating power over manufacturers and can capture more margins. Key Success Factor: The key success factors are those elements that are necessary in order for the firm to achieve its marketing objectives. A few examples of such factors include: 90 CU IDOL SELF LEARNING MATERIAL (SLM)

 Access to essential unique resources  Ability to achieve economies of scale  Access to distribution channels  Technological progress It is important to consider that key success factors may change over time, especially as the product progresses through its life cycle. 5.3.5 Demand Forecasting Methods and Tourist Behaviour Demand estimation is very important in tourism as it is very sensitive to external developments. Perishability of tourism products necessitates accurate forecasting. Demand is defined as the level of estimated sales under defined conditions. 5.3.6 Tourist Decision Making Process Many models have been derived from these models and adapted to tourist behaviour. Commonalities in all these models:  Exhibit behaviour as a process  Focus on individual behaviour  Share the belief that consumer is rational, and behaviour can be explained  View behaviour  Information processing is key component of decision  Outcome is used as feedback that influence future purchases The important models are:  Schmoll Model (1977)  Mathieson and Wall Model (1982)  Moutinho Model (1987) Schmoll Model (1977):  Travel stimuli: Advertising and promotion - travel literature -suggestions report from other travellers - travel trade suggestions and recommendation. 91 CU IDOL SELF LEARNING MATERIAL (SLM)

 Personal and social determinants: Contains – personality features, attitudes and values, social influences and aspirations, and socio-economic status. Decides –the travel needs and desires, motivation, and expectations.  External variable: Involve- confidence in service provider-image of the destination and service- previous travel experience –assessment of objective and subjective risks connected with travel, and cost and time constraints.  Characteristics and features of service destination: these entail cost value relation, attractions- amenities offered, range of travel opportunities, quantity/quality of travel information, and type of travel arrangements offered. Moutinho Model (1987):  This is very comprehensive model of travel decision and consider three parts in buying Part I: Pre-decision and decision Part II: Post-purchase evaluation Part III: Future decision-making Mathieson and Wall Model (1982): Mathieson and Wall (1982) have proposed a 5-phase model for the consumer behaviour of tourists. Figure 5.3 Mathieson and Wall Model (1982) 92 CU IDOL SELF LEARNING MATERIAL (SLM)

In the first phase, an individual recognises their need to travel. In the second phase, they collect all the necessary information and evaluate them. In the third phase, they decide among the different alternatives. In the fourth phase, they prepare to travel and experience the journey. In the final, fifth phase, they can assess their satisfaction and get awareness. 5.3.7 Process of Environment and market analysis Experts suggest efficient use of a combination of PESTEL Analysis and SWOT Analysis to achieve a result of detailed analysis. In simple terms, this can be enabled by a three-step process. Step 1: Understand PESTEL factors Step 2: Identify opportunities and threats using SWOT analysis Step 3: Combine the results and Take action 5.4 MARKET ANALYSTS Market research analysts help companies understand what products or services people want and what those people are willing to pay for them. 5.4.1 Responsibilities of Marketing Analyst  Perform valid and reliable market research SWOT analysis  Utilize online market research and catalogue findings to databases  Devise and evaluate methods for collecting data (Surveys, Questionnaires, Opinion Polls)  Formulate a plan and present it to senior management or a client  Interpret data, formulate reports and make recommendations  Gather and analyse statistical data using modern and traditional methods to collect it  Design specific research methods such as questionnaires  Remain fully informed on market trends, other parties researches and implement best practices 5.5 SUMMARY  Macro environment includes the demographic, natural, technological, economic, political and cultural forces. 93 CU IDOL SELF LEARNING MATERIAL (SLM)

 Micro environment includes the business itself, supplies, marketing channel firms, customer markets, competitors and publics.  Marketing environment consists of the factors and forces outside marketing that affect marketing management’s ability to develop and maintain successful relationships with its target customers.  Strategic marketers take micro and macro environments into consideration as it plays a dominant role in a firm’s marketing strategies, campaigns and branding.  Marketing analysis simultaneously deals with competitive analysis. The “Five Forces Framework” is an established tool for analysing competition.  Marketing analysis is a right combination of elements designed to get a particular set of consumers, buy a product at a particular price.  Market analysts are important personnel who will help the companies understand what products or services people want and the willingness of people who pay for the company.  Demand forecasting methods and tourist behaviour necessitates accurate forecasting because of the perishability of tourism products.  Market segmentation can be defined as the process through which tourists with similar needs, wants, and characteristics are grouped together  Recent development in transport and communication created huge career options in travel agencies, hotels, airlines etc.,  Theodore Levitt who proposed the 4 Ps framework to market, right offers to the right buyers at the right time with the right prices under the right ambience and using right system 5.6 KEYWORDS  SWOT – Strength, Weakness, opportunities and Threats  PESTEL – Political, Economic, Social, Technological, Legal and Environmental  Market Trend – Upward or downward movement of market for a time period. 94 CU IDOL SELF LEARNING MATERIAL (SLM)

 Schmoll Model – takes into account influencing factors such as travel stimuli, external variables, personal and social factors as well as features of the touristic services. 5.7 LEARNING ACTIVITIES 1. Imagine you as an entrepreneur and sell a tourism holiday package by understanding the importance and concepts of marketing analysis. ___________________________________________________________________________ ___________________________________________________________________________ 2. Imagine you are a market analyst and you want to market the spiritual destinations of India. Try to list your responsibilities as market analyst to market these spiritual destinations as tourism destinations. ___________________________________________________________________________ ___________________________________________________________________________ 5.8 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. State the process of Environment and market analysis. 2. Give the importance of market analysis. 3. Write the meaning of market analysts. 4. Write a note on responsibilities of Marketing Analyst. 5. Describe Moutinho Model (1987). Long Questions 1. Elaborate on dimensions of market analysis. 2. Write a note on various elements of a company’s micro-environment. 3. Discuss various elements of a company’s micro-environment. 4. Analyse the tourist decision making process to visit MICE destinations. 5. Explain Mathieson and Wall Model (1982). B. Multiple Choice Questions 95 CU IDOL SELF LEARNING MATERIAL (SLM)

1. The ___________ consists of the factors and forces outside marketing that affect marketing management’s ability to develop and maintain successful relationships with its target customers. a. Marketing Organization b. Marketing System c. Marketing Network d. Marketing Environment 2. Which of the following terms best describes the environment that includes the forces close to the company that affect its ability to serve its customers? a. Micro Environment b. Macro Environment c. Global Environment d. Networked Environment 3. ___________ is an example of demographic environment. a. Population Size and Growth b. Tourist Perception c. Tourist awareness d. Tourist interest 4. Market analysis is ____________ a. Quantitative assessment only b. Qualitative assessment only c. Both quantitative and qualitative assessment d. Neither quantitative nor qualitative assessment 5. The first phase of Mathieson and Wall Model is 96 a. Individual gets interest to travel b. Individual recognises the need to travel c. Individual decides alternatives to travel CU IDOL SELF LEARNING MATERIAL (SLM)

d. Individual gets satisfaction from travel Answers 1-d, 2-a, 3-a, 4-c, 5-b 5.9 REFERENCES Reference book  Swarbrooke, J., Horner, S. (2016). Consumer Behaviour in Tourism. United Kingdom: Taylor & Francis. Textbook reference  Woog, L. (2010). Analysis of the Best Ager Market for the Tourism Industry. Germany: GRIN Verlag. Websites  https://blog.alexa.com/marketing-research/market-segmentation/  Successful blogging part 3: find your target market - IONOS  https://www.hippocampus.si/ISBN/978-961-7023-71-8/2.pdf 97 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT-6:ENVIRONMENTAL AND MARKET ANALYSIS - II STRUCTURE 6.0Learning Objectives 6.1Introduction 6.2Competitor Analysis 6.2.1Effective Competitor Analysis 6.3Regional Environmental Scanning 6.3.1 Importance of Environmental Scanning 6.3.2 Regional Environmental Scanning Process 6.3.3 PESTEL Framework 6.3.4 SWOT Analysis 6.3.5 Porter’s Five Forces Model 6.3.6 Porter’s Generic Strategy Framework 6.4Summary 6.5Keywords 6.6Learning Activities 6.7Unit End Questions 6.8References 6.0 LEARNING OBJECTIVES At the end of this topic, you will be able to  Describe competitor analysis  Outline regional environmental scanning and its process  Explain the Porter’s Five Forces Model

6.1 INTRODUCTION In the previous unit, you have studied basic environmental analysis of internal and external factors that have a major impact on the smooth functioning of an organization. If a business has to operate successfully, there are various analysis tools to be studied such as PESTEL and SWOT. In this unit, you will study competitor analysis and regional environmental scanning. Tourism business is polygamy in nature. It has several competitors like well-established firms, start-ups, freelancers and aspiring entrepreneurs. It is important to analyse the market to sustain in the business. The marketing plan of an organization considers the 7Ps of marketing before formulating its strategy. The 7Ps are as follows – People, Product, Price, Place, Process, Physical Evidence and Promotion. The detailed explanation of 7Ps will be covered in later units. 6.2 COMPETITOR ANALYSIS Competitive analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors. This provides both an offensive and defensive strategic context to identify opportunities and threats. Competitor analysis or competitive research is a field of strategic research that specializes in the collection and review of information about rival firms. It’s an essential tactic for finding out what your competitors are doing and what kind of threat they present to your company’s success. Most of the companies in a market field offer similar products and services which forces the businesses to gain an edge over competitors to make profits. A research firm in Boston has stated that nearly half of the business firms believe in competitive intelligence for the success of their organization. Competitive analysis is a vital part of the corporate strategy formulation. It helps in validating our identity and market value. There are two things which are a constant in the market a) Consumer needs b) Market availability, while competitive analysis helps in identifying the empty space in bridging this gap which helps firms and businesses to explore new market segments for which proper services aren’t available. Competitor Analysis helps in developing new products and services. It also helps in pitching our product or service on a wider platform to achieve higher sales. To obtain a productive result there are few questions the business must answer before performing a competitor analysis. It is as follows,  Is the target competitor worth the investment?  What are the elements that require thorough scrutiny?  Which components of the competitor have created disinterest in the minds of consumers? 99 CU IDOL SELF LEARNING MATERIAL (SLM)

 What are the sources of data collection?  What is the application of inputs from competitive analysis?  Is this going to be helpful in the improvement of my business in the short and long run?  What are the past results and efficiency of competitor analysis? 6.2.1 Effective Competitor Analysis To run an effective Competitive Analysis the following things are to be followed Determine the competitors: Data accuracy depends on identifying the exact competitors. Every aspect isn’t applicable to similar businesses. This leads to categorizing our competitors as Direct and Indirect. Direct competitors are close to the region of our operation and their products and services always have an advantage of replacing ours. Indirect competitors are the businesses that can satiate the needs of our target consumers. Since change is a constant in the market environment it is advisable to concentrate on direct competitors rather than the indirect competitors. Determine the products and services offered by competitors: Analysis includes a detailed study on the product line and its qualitative aspects. Pricing policy of the competitors are to be observed. For e.g., when we observe service providers like Jio and Airtel in India, their pricing patterns and discounts are similar to each other. The sale of our products and services are dependent on the comparison of various little details from that of the competitor. These may include elite and economic consumer groups, market share, characteristics and behavioural patterns of consumers pricing strategies, location, distribution pattern etc. Researching the sales tactics and it’s results of competitors: It can be done by observing the CRM, annual reports, marketing efforts, sales process, sales channels, multiple locations of sales, expansions and downsizing, partners, resellers, sales volume, revenue, discounts and attitude of the salesperson of the competitor. Perks and pricing of the competitor: You must create awareness on the quality of our product among consumers. Creating unique perks and also being on a look out for perks offered by competitors helps in gaining consumers. Competitive shipping costs: Cart abandonment is highly occurring due to high or expensive shipping costs. Sometimes free shipping isn’t possible for businesses. In such cases one can try to include discounts on holidays, giveaway alerts and loyalty points for freebies. Marketing by Competitors: Competitor website analysis gives essential inputs for the development of our firm. This includes referring their blogs, eBooks, webinars, videos, podcasts, info graphics, visual representations, social media presence and activeness, FAQs, slide decks, featured articles, online and offline campaigns, guides, data sheets, media kit, 100 CU IDOL SELF LEARNING MATERIAL (SLM)