Destinations & Communities: Destination Performance
‘You can’t manage what you don’t measure’
The sustainability of a destination is significantly influenced by its ability to adapt to changing market conditions, use resources efficiently and deliver innovative planning and development strategies. That requires an objective review of past performance as part of an ongoing and cyclical process to monitor and evaluate a destination’s progress in achieving its goals and vision. Measuring and monitoring destination performance is important in identifying future opportunities and challenges for tourism in the destination and strategies to improve on performance over time.
Academic and industry research from around the world has shown that effective destination performance monitoring should:
Be based on key performance indicators or achievement levels that are developed and agreed in the planning and implementation phases of destination management;
Be based on a performance monitoring framework that guide activities, timing and methods and identifies key roles and responsibilities;
Identify relevant performance monitoring tools, methods or certification options to assist in measuring and reporting on performance;
Include an assessment of the organisational performance of destination management organisations as well as destination-wide performance data including visitor satisfaction;
Sustainability indicators should be used to measure the economic, social and environmental impact of tourism on the destination;
Regularly monitor potential risks to ensure that appropriate prevention, preparedness, response and recovery strategies are developed;
Measure destination performance over time against agreed industry benchmarks for best practice;
Identify strategies for continual improvement and innovation to achieve best practice and destination goals;
Communicate and report on destination performance achievements with stakeholders, including visitors;
Identify strategies to leverage performance achievements with funding agencies, suppliers and statutory bodies.
Education of the Value and Role of Tourism
Tourism is one of the world’s largest employers and yet many communities are unsure of the benefits of tourism. The economic benefits are often the easiest to measure and the most effective, however the social and environmental benefits of tourism including protection of natural and cultural assets, supporting local events and cultural practices and provision of services and public facilities should not be overlooked. For this reason effective destination managers should regularly engage in education and advocacy of the benefits of tourism with local influencers and key community stakeholders. This includes elected representatives, leaders of business and industry, community and environment groups, and residents.
Examples of successful education and awareness raising campaigns include:
Workshops and presentations with elected representatives through the Local Government Pathways Program;
Hosting ‘Tourism Week’ celebrations in the Mackay Whitsundays regions;
Promotional campaigns where local businesses highlight that “tourism is everybody’s business” (Tourism Australia);
Economic modelling of the benefits of tourism;
Signage / promotion of the businesses that benefit from tourism expenditure through signage, stamps on cheques, or notices to suppliers; and
Publications that promote the benefits of tourism such as those developed by State Tourism
Organisations and the Tourism Industry Council.
For further information on the education of the value and role of tourism see the section on ‘Contribution of Tourism’ as part of the Destination Planning phase of destination management.
Performance Monitoring and Evaluation
In an ever-changing and competitive industry, tourism destinations must be able to adapt and respond to changing conditions and capitalise on strengths and opportunities. Monitoring and assessing a destination’s performance allows for an evaluation of the destination’s success in achieving strategic priorities, providing the basis for future decision-making and performance improvement. Developing a performance monitoring program at a destination level includes consideration of:
Performance monitoring at a destination level may include reviews of:
Organisational performance of individual destination management organisations including an assessment of governance practices, employment, marketing, product development, funding, membership, investment, industry development and partnerships;
Destination-wide performance in tourism including an assessment of visitor numbers, growth, expenditure, satisfaction, destination preference and conversion and length of stay. Measuring tourism yield can also be an important indicator of performance of a destination including economic, environmental and social value of tourism to a destination;
Key performance indicators should be used as a point of comparison when assessing destination performance. KPIs should be developed as part of the strategic planning process and must be specific, timely, quantifiable and be directly linked to the destination’s strategic goals;
A clearly defined performance monitoring program or plan should be developed that clearly articulates KPIs, timing of the reviews, data collection methods, responsibilities and the process for analysing results and implementing actions following a review;
Information and reporting systems including online tools provide an effective resource for performance monitoring and evaluation.
The Sustainable Tourism Cooperative Research Centre developed the Industry Performance Analyser for Tourism (IPAT) tool for the collection and analysis of statistical and benchmarking data at a regional level. IPAT provides a flexible online data entry tool for collecting operator data and aggregating it to provide destination-wide performance data. The ASPIRE program, implemented by Queensland Regional Tourism Organisations, is based on the IPAT platform and provides an organisational performance and benchmarking tool for assessing the operational performance of destination management organisations.
A destination’s performance monitoring framework should be clearly outlined in the strategic documents guiding destination management including the ‘Research Plan’ and ‘Strategic Plan’.
Review of the Planning Framework
Destinations should undertake a review of their tourism infrastructure and investment attraction at least every three years. This review should include an infrastructure audit and identification of new investments made in tourism including public and private investment, refurbishment and ‘green-field’ development. This process is valuable in identifying potential barriers to investment including those in the planning and approvals processes of Local, State, Territory or National Governments.
As a minimum this process should include:
Quantitative analysis of supply and demand including historic and forecast figures;
Qualitative assessment of the approvals process through interviews / questionnaires of investors;
Discussions with planners regarding successful and unsuccessful planning applications;
A review of a similar destination’s investment and infrastructure growth over the same time; and
Analysis of visitor satisfaction research.
Visitor Satisfaction
As a service-orientated industry, tourism operators and destinations must continually strive to meet the demands and expectations of visitors for quality tourism products, experiences and services. Visitor satisfaction is determined by a combination of perceived value and quality, consumer expectations and actual experience. A visitor’s overall satisfaction will influence the likelihood of repeat visitation, extended length of stay, increased expenditure, enhanced yield and word-of-mouth referrals. Measuring visitor satisfaction is a key indicator of the performance of a destination and can assist in:
Providing a basis for future strategic planning for tourism development, recognising the need to align visitor perceptions and expectations with the development and delivery of appropriate products and experiences;
Identifying key gaps or areas for improvement in the tourism product / experience in the destination;
Aligning industry operator perceptions of consumer value and the consumer’s actual expectations in the delivery of tourism services;
Understanding differences in visitor expectations between different visitor markets or segments, including international and domestic visitors or individual niche market segments;
Identifying opportunities for value creation in the tourism offering and increasing yield in the destination;
Identifying key trends in visitor market expectations and demands;
Providing a basis for comparison of the destination to it’s competitors;
Identifying opportunities for leveraging key points of advantage through marketing and promotion;
Providing a quantifiable measure of a destination’s performance against its goals or Key Performance Indicators (KPIs);
Providing a quantifiable measure of a destination’s performance for funding and reporting requirements.
Visitor satisfaction surveys, such as the Regional Visitor Monitor developed by Wellington Tourism and Tourism Research Australia’s methodology for benchmarking destination performance, are commonly used as a method to track and analyse visitor demands and expectations in a destination. The Visitor Attractions Satisfaction Benchmarking Project developed by the Sustainable Tourism Cooperative Research Centre developed the Importance-Performance Analysis Grid (as below) for assessing visitor satisfaction. The application of the model aims to bridge the gap between consumer expectations and experience delivery through understanding the importance of selected product / experience attributes with overall performance or satisfaction.
Source: Modified after Matilla and James (1977), in Ritchie B et al, 2008 ‘Visitor Attractions Satisfaction Benchmarking Project’, Sustainable Tourism Cooperative Research Centre
