S-1: Welcome to video #21 in my series of presentations that will attempt to “demystify tourism”. I’m Dr. Stan McGahey, the creator and narrator of the videos. Their content is based on my experiences in more than 80 countries on 6 continents.
S-2: Development brings a tourism plan to fruition by adding value to resources and creating the conditions for success. It provide the components, such as the four operating sectors that satisfy tourists in a profitable, sustainable, and competitive manner. It means creating infrastructure and superstructure, as well as institutional elements to manage and promote the destination; plus tourism legislation, marketing plans, funding mechanisms, investment incentives, education/training programs, etc.
S-3: UNWTO defines STD as “tourism that takes full account of its current and future economic, social, and environmental impacts, addressing the needs of visitors, the industry, the environment, and host communities.“ The forerunner of sustainability was unbridled resource development, tempered somewhat by conservation. The 1972 United Nations Conference on the Human Environment, brought the issue of sustainability to the world stage. The 1987 Brundtland Report, propelled it into the global spotlight, and the 1992 Rio Summit produced Agenda 21, a global plan of action promoting sustainable development.
S-4: Tourism development depends on strong public-private sector cooperation. Government stimulates development by creating favorable conditions for private sector success. It should never do anything that private sector businesses can do. Government activities include planning, regulation, impact assessments, incentives, and infrastructure. It also owns natural resources and cultural resources, so it manages attractions and sometimes transportation services.
S-5: Private sector develops and operates most tourist products. It generates ideas, creates projects, invests capital, negotiates incentives, prepares business and marketing plans, and takes financial risks. Based management skills, it reaps profits or suffer losses.
S-6: The only reason to develop tourism anywhere is to benefit the local people. So development must consider community support. Local people create the ambiance, serve as owners, managers, and staff, and elect political leaders. SIGs, NGOs, and non-profits generate support or opposition to development.
S-7: Project development flows from destination vision and policy statements, planning goals, and master plans. Ideas are often included within master plans or generated by entrepreneurs. Private sector projects expect to make profit, while public sector projects are considered essential for development. All projects must be analyzed for Triple Bottom Line acceptability and are subject to government approvals.
S-8: A pre-feasibility study is conducted by the government, a developer, or a consultant, to determine project viability. The purpose is to determine if a project will have a sufficient return on investment. Equity, capital costs, debt, interest rates, revenue, and cash flow are also important. An economic feasibility analysis includes project description, site analysis, market analysis, financial analysis, and maybe a cost-benefit analysis, each using surveys, indicators, and calculators.
S-9: An environmental impact analysis identifies attributes that might impede approval of a project or its success. The objective is to minimize adverse environmental impacts, resolve conflicts, propose environmental safeguards, and determine physical/biological acceptability. EIAs are required by governments, performed by consultants, and paid by developers. Public hearings gather community input.
S-10: Mass tourism was used by destinations around the world. Natural and cultural resources were plentiful, and the primary impact of concern was economic. As tourism grew and negative socio-cultural and environmental impacts increased, sustainability was discovered. Mass tourism is characterized by hordes of tourists, haphazard development, architectural pollution, diminished natural beauty, decreased quality of life of residents, short-term gain, decline of destination quality, and manipulation of the community by outside investors.
S-11: Sustainable tourism means low-impact tourism. Many destinations try to incorporate its principles into their planning, management, and operations. Since each destination has its own background, products, and goals, the concept goes by many names: responsible tourism, nature tourism, green tourism, indigenous tourism endemic tourism, ecotourism, adventure travel, village tourism, and slow tourism.
S-12: Development winds up the tourism industry, and makes it go! Sustainable development walks the fine line in the conflict between development, and conservation, as it attempts to do both. Now, I invite you to watch Video #22: Tourism Investment Incentives. Thank you!