Development of Regional Tourism Competitiveness Framework in the Asia and the Pacific
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1 The 7 th UNWTO/PATA Forum on TOURISM TRENDS AND OUTLOOK Development of Regional Tourism Competitiveness Framework in the Asia and the Pacific October 21, 2013
2 The Asia and the Pacific Region Asia-Pacific Region is the part of the world in or near Western Pacific Ocean. The region varies in size depending on context, but it typically includes at least much of East Asia, Southeast Asia, and Oceania (Wikipedia). Londo n Paris Amsterdam Frankfurt Bahrai n Dalian Tianjin Beijing Tokyo Shanghai Osaka Hongkong Hanoi Singapore Jakarta Manila Sidney LA Panama Toront o NY SaoPaul o - 2 -
3 Definition of Regional Tourism Definition of Regional - a phenomenon in which the `region' (as opposed to the `nation') is the focus of attention, and where `regionalization' (as opposed to `national development') is the objective of growth (Chang, 2001). Region vs. Regionalization Regionalization Region an integration process the linking together of different locales, cities, or countries Source: Chang (2001) Chang, T.C. (2001). Configuring new space: exploring Singapore s regional forays. Environment and Planning A, 33(9),
4 Three Types of Region Formal Region Formal region one which ties together locales that have commonly distinguishable characteristics, whether climate, culture, or community (Johnston et al, 1991, p. 392). Ex) Tourism triangles(indonesia-malaysia-singapore Growth Triangle) Regions Functional region one that is created because it serves a larger purpose or function be it trade,, or industry Ex) ASEAN Tourism Association (ASEANTA) Functional Region Imaginary Region Imaginary region a social construct - an imaginary configuration constructed by politicians for strategic goals. Ex) Asia-Pacific region Source: Chang (2001) In, functional region can be divided by urban, rural, island, echo, shopping, quality, adventure, culture, medical, MICE, and so on.
5 Classified Tourism Group by Functional Region (sample) Sanghai Shopping Medical Cheju MICE Sanghai Island
6 Activity Relatedness Regional Tourism Matrix: Forms of Tourism/Activity Relatedness Functional Tourism Matrix High Sports Shopping MICE Convention Exhibition MICE Adventure Eco- Food-health Leisure Cruise Festival Entertain Rural Cultural Food Macro MICE Health Low Nature Urban Wellness Culinary Low Forms of Tourism High - 6 -
7 Definition of Competitiveness Definitions Competitiveness Competitiveness is measured by the ability of the organization to stay in business and to protect the organization s investments, to earn a return on those investments, and to ensure jobs for the future. Destination Competitiveness A general concept that encompasses price differentials coupled with exchange rate movements, productivity levels of various components of the tourist industry and qualitative factors affecting the attractiveness or otherwise of a destination. The Travel and Tourism Competitiveness Index The TTCI provides a basis for implementing policies to improve destination competitiveness on a country by country basis
8 Characteristics of Destination Competitiveness Tourist destinations are the central elements of the system. Features of destinations can be classified under two main headings. Primary features include climate, ecology, culture and traditional architecture. Secondary destination features are those developments introduced specifically for such as hotels, catering, transport and entertainment. Together these two main groups of features contribute to the overall attractiveness of a tourist destination. Destination competitiveness can be evaluated both quantitatively and qualitatively
9 Types of Competitiveness Levels Types of Competitiveness Level Categorization Prior studies Levels National/City Competitiveness Regional Competitiveness Tourism Destination 1. WEF -World Economic Forum 2. IMD-International Institute for Management Development 3. Simmie and Carpenter 4. Rovdrt Huggins Associates 5. WTTC-World Travel and Tourism Council National Competitiveness Assessment National Competitiveness Assessment City Competitiveness and Sustainability City Competitiveness Assessment International Monitoring Tourism Competitiveness Not fit with UNWTO Goals Lack of Regional Index 1. Tourism Destination Competitiveness Assessment (Dwyer & Kim) 2. Tourism Destination Competitiveness & Sustainability Assessment (Ritchie & Crouch) Outcomes WEF Index WCE Index KHU Index China s BTC Index Cooperative Index Needs! System of Measures for Excellence in Destinations (SMED).
10 Review on Tourism Competiveness Study WEF Index KHU Index World Economic Forum s competitiveness index does not take into account the different characteristics of nations and their relative criteria. KHU Research focuses only on cities and ranking cities, which UNWTO tries to avoid due to unnecessary disputes and excessive competition. China s BTC Index China s Best Tourism Cities scheme only focuses on Chinese cities and cannot easily be applied on a State level. WCE Index World Center of Excellence for Destination s research is not confined to Asia-Pacific countries, making it difficult to reflect the region specifically in indexing and evaluation. Even though various Competitiveness Indexes of Tourism by different organizations are well developed, it does not fully conform to UNWTO s regional goals due to their limited focus and drawbacks. 1. Theoretical Implication- the collaboration of various experts and organizations in the region, a reliable regional competitiveness index for of UNWTO can be developed. 2. Practical Implication-making it easy to reflect and applicable for a specific region in indexing and evaluation and useful feedback to the required from urban cities 10
11 Needs for Developing RTC Framework Background of Development of Regional Tourism Competitiveness Framework in Asia and the Pacific UNWTO 1 has two important areas of focus in advancing throughout the world: sustainability and competitiveness. 2 Although there have already been many attempts to design a set of criteria for measuring competitiveness, none of these are 100% effective or conform adequately with the UNWTO s purpose. 11
12 RTCI (Regional Tourism Competitiveness Index) Development
13 Procedure 1) Reviewing previous research of work done on the development of competitiveness indicators 2) Conducting surveys and interviews towards stakeholders in the region 3) Identifying the hurdles and the support 4) Identifying cases and drawing implications 5) Developing Tourism Competitiveness Model, which can be applied to the region 6) Holding forums and conferences and providing policy implications for the region at the Global Economy Tourism Forum
14 Check Points to Developing RTCI Competitiveness is a very broad construct encompassing all social, cultural, and economic variables affecting the performance of a nation in international markets. Reflecting this macro perspective (OECD, 1997). The index include all relevant indicators and these indicators should be given adequate weighting based on their contribution to the development of. The indicators developed should take into account the advancement of developing countries. An assessment of competiveness consider the current circumstances of each country. 14
15 Identifying Common Indicators for RTCI (Example) Each different sub-indicators are subset of master RTCI indicators. For example, the shopping RTCI requires a unique indicator that is likely to be a subset of master RTCI indicators. Reuse the RTCI indicators overcome many of the problems of traditional approach. Common indicators Function specific indicators S1 S4 S3 S2 S5 E4 B5 B4 C1 E1 C4 D1 E2 C3 B2 E3 C2 D1 B1 A1 B3 Master RTCI indicators Shopping Rural Heritage E1 C2 D1 B1 A1 S1 B2 S5 C1 S4 E1 C4 D1 S3 E3 C3 E4 S3 B3 B4 RTCI sub-indicators Selected adequate region Shopping Tourism RTCI Rural Tourism RTCI Heritage Tourism RTCI
16 Developing Unique Indicators for RTCI (for example, shopping destination) Characteristics of Product Product Reliability Product Variety Domestic /Urban Price Tourism Price Tourism Price Value Store Service Price Service Employee Service Store Location Store Sign Store Environment Price Sign Fixed Price System Reasonable Price Foreign Language Ability Hospitality Product Knowledge Additional Service Information Catalogue CRM Website
17 Measurement Framework for RTCI Data Collection - Collecting data based on determined indicators for measuring competitiveness of Asia Pacific regions Standardization - The standard formula for converting measured data is as follows: Weighting Factors Evaluate Competitiveness - Computation of standardized score with weighted factor derived from AHP method (sum of scores on each dimension X weights for each dimension) - Evaluating the competitiveness with weighted factors by comparing sum of scores of each destination
18 RTCI Measurement Model Quantitative/qualitative indicators for regional competitiveness (RTC) are selected through Delphi survey. Extracted factors are rearranged to develop sub dimension for RTC. Then develop each weight using AHP, and each indicators are multiply by the weights of each dimension. Finally, each regions (cf: city or state) are ranked. Quantitative indicators Qualitative indicators Manufacturing GRDP High-tech Air connectivity Place x 1 x 2 x 3 x 4 x 5 AHP w 1 w 2 w 3 w 4 w 5 RTC sub-dimension: Tourism Urbanization (Y 1 ) Delphi Y 1 = x 1 w 1 + x 2 w 2 + x 3 w 3 + x 4 w 4 + x 5 w
19 Thank you!
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