Destination Competitiveness: Managing Emerging and Traditional Tourist Attractions in Macau - Case Study Example

DESTINATION COMPETITIVENESS: MANAGING EMERGING AND TRADITIONAL TOURIST ATTRACTIONS IN MACAU; CHINA Student’s Name Course Title Name of Instructor Institutional Affiliation State Date Destination Competitiveness: Managing Emerging and Traditional Tourist Attractions in Macau Introduction In the recent years, the tourism industry has undergone tremendous changes due to the emergence of new tourists’ attractions in the society. Apart from the traditional tourist attractions such as historical sites, wildlife, natural environment and the culture of the people, the presence of emerging tourists’ attractions such as shopping tourism, casinos and amusement parks have brought a great impact on modern tourism (Michelson & Paadam 2016, p. 151). The paper examines how to manage emerging and traditional tourism attractions in Macau; a densely populated region in China. Regions such as Hong Kong and Dubai have become major tourist destinations due to emerging tourism attractions. The changes in the field of tourism have thus brought the need to adopt effective measures of managing tourism destinations as well as the analysis of tourism destination competitiveness in both the local and the global market. Overview of Destination Product Development Macau is a Special Administrative Region of China. The region has experienced a tremendous growth due to the presence of emerging tourism attractions such as shopping tourism and casino. The casino tourism has therefore played a significant role in improving the economy of Macau. The region receives a high number of tourists annually due to the presence of casino tourism. The main centers for shopping for casino include the Grand Lisboa Casino and the Senado Square. These regions provide state of the art casino where tourists can gamble among themselves or with the locals. The demand for the casino tourism has increased recently due to the increasing recognition of Macau as an international tourist destination. Moreover, Macau is densely populated thus increasing the number of people who seek the services of the gambling industry. The key differences in emerging and traditional tourism in Macau are the nature and way of consumption. Emerging tourism such as shopping tourism is based on the adoption of technology. Casinos that are used for gambling are developed using advanced technology. Therefore, the advancement in technology is a major trigger that can enhance the quality of emerging tourism attractions (Scott et al. 2008, p.9). However, the traditional tourism attractions such as the culture of the Chinese people and the Portuguese in Macau does not involve the integration of technology. The destination lifecycle for Macau depends on the time of the year. According to the Chinese calendar, several festivals such as the Dragon Boat Festival, Macau Grand Prix, are held at different times of the year. During such times the demand for shopping tourism in Macau increases than other times of the year. The major competitor of emerging and traditional tourism is Macau is Hong Kong city. Hong Kong also provides consumer-oriented casino and other forms of emerging tourism. Moreover, the city has traditional tourism attractions such as Hong Kong Disneyland amusement park, Victoria Peak, and Tian Tan Buddha. Despite the presence of stiff competition from other tourist destinations such as Hong Kong, Macau has managed to dominate the tourism industry due to high population and effective destination management. The adoption of modern technology has enhanced the capability of Macau city to produce high quality emerging tourism such as casino and shopping tourism. The supply diversity in Macau involves the various tourism attractions such as shopping tourism and natural phenomena. For example, the city of Macau has casinos and amusement parks. Moreover, the Chinese culture and history is also a major tourist attraction phenomenon in Macau. Other forms of traditional tourism include the Lunar Chinese New Year, the Dragon Boat Festival, Macau Cathedral and the Ponde de Amizade bridge in the south coast. Situational Analysis There are diverse factors that have contributed to the competitiveness of Macau as a leading tourist destination for both emerging and traditional tourism attractions. The STEP factors that have contributed to the success of tourism in Macau include: Socio-Demographic/Cultural Factors Macau is the most populated region in the whole world. With a population of 650, 900 according to the 2016 census, even the domestic tourists alone have contributed to the success of the region as a major tourist destination (Capone 2016, p.119). The region experiences a high immigration rate thus boosting the tourism industry. Moreover, Macau experiences the highest tourist visits per year due to the emerging and traditional tourism attractions. Despite the high population, the local government has established effective urban planning that has ensured the building of accommodation for the tourists (Benur & Bramwell 2015, p.214). Macau also has the lowest rate of mortality hence resulting in an increase in the demand for tourism attractions which has boosted the competitive of the region. Technological Factors The presence of advanced technological infrastructure has led to the production of high quality emerging tourism attractions. The casinos such as the Grand Lisboa casino and several amusement parks in Macau has been build using modern technology hence resulting in improved quality. China is one of the most technologically developed nation hence the country has recognized the need to implement technology in various sectors of the economy. Therefore, the adoption of advanced technology has created a sustainable environment for the creation of emerging tourism attractions hence ensuring competitiveness Macau as a tourist destination. Economic Factors Macau has experienced a growth in its economy over the years. According to Kempiak et al. (2017, p.383), the 2013 financial estimates revealed that Macau had a Gross Domestic Product of $ 80.765 billion hence becoming one of the richest in the world. The economy of the region has improved due to the competitiveness of the tourism industry. The presence of sufficient economic resources has enabled the country to adopt effective strategies for improving the tourism industry. Another economic factor that has increased the competitiveness of Macau as a tourist destination is its strategic location within China. Environmental Factors The nature of the environment also plays a significant impact on the competitiveness of a tourist destination. For example, the presence of a tourism attraction sites such as emerging and traditional tourism attractions depend on their location in the environment. For instance, the emerging tourism attractions such as casinos, shopping tourism, and amusement parks are usually located in the urban centers where there are technological infrastructures such as plenty of electricity. The strategic location of the emerging tourism attractions in the environment plays a great role on their consumption by the tourists. This allows sightseeing and traveling to the remote parts of the country. Macau region has therefore adopted strategies aimed at improving the environmental conditions in the region so as to enhance the emerging and traditional tourism. The environment, therefore, contributes to the competitiveness of a tourist destination. Political/ Legal Factors The political landscape of a tourism destination also is critical in determining the success and competitiveness of the particular destination. Macau is an autonomous region that has a separate administration from the government of China. Since the region depends on tourism, the relevant authorities have adopted favorable policies that have boosted tourism activities in the region. For example, laws have been passed that provide invectives to companies that have established emerging tourism attractions in Macau. The local government has also been at the forefront of promoting the emerging and traditional tourism in the region (Capone 2016, p.121). The creation of a sustainable environment has therefore improved the competitiveness of Macau as an important tourist destination. The factors that can be prioritized include technological and cultural factors. The technological factors are important since the emerging tourism attractions such as Casino and shopping tourism depend on the quality of the technology in the region. Therefore, Macau region should embrace advanced technology with the aim of improving its competitiveness. Moreover, cultural factors can also boost the operations of Macau as a tourist destination. The culture of the Chinese and Portuguese that characterize the region can provide a suitable tourism attraction. Strategic Direction The strategic approaches undertaken by Macau region to improve the emerging tourism attractions include: Resource based approach Resource based approach is important for destination positioning. The provision of casino gambling services and shopping tourism has enabled Macau to become a global tourism center. The tourism destination provides consumer-oriented tourism products and services. Macau has realized the importance of studying the nature of tourism industry. Therefore, the region has participated in the collection of data from the stakeholders, customers, competitors, environmental and industry analysis (Elliott-White & Fin 2007). Through the collection of information and analysis of information from various stakeholders and consumer needs, Macau has been in a position to undertake an effective market research that has contributed to its success in the market. Through surveys and interviews, the tourism destination has gathered critical information that has led to the knowledge of the nature of the market and the expectations of the consumers as well as the industry as a whole. SWOT Analysis Another strategic direction that Macau has adopted is the analysis of the strengths, weakness, opportunities and threats in regards to the competitors such as Hong Kong city. The opportunities that the region has included the presence of a high population that consume the emerging tourism attractions such as Casino and shopping tourism (Engeset & Heggem 2015 p.223). The major threats to the business include the presence of stiff competition from other established tourist destinations such as Hong Kong. The strengths in Macau region include availability of advanced technology that has enhanced Casino gambling centers. Other tourist destinations such as Moreover, the region has an efficient management that oversee the shopping tourism. The weakness in Macau include lack of awareness of the importance of the modern tourism products such as casino and amusement parks. The region also offers expensive tourism products and services that has discouraged the global tourism consumers leading to a reduction in the number of tourists in the region. However, Hong Kong provides a relatively cheaper tourist services as compared to Macau. Definition of Objectives, Goals, Strategies and Operations Plans Macau has developed goals, objectives, and strategies that are oriented towards achieving success in the market. The industry has embraced both short term and long term goals that will shape the performance of the destination in future. The strategic location of the emerging tourism attractions in the environment plays a great role in their use by the tourists. Moreover, the adoption of focused goals, missions, objectives and plans have therefore led to the adoption of a clear strategic plan for the tourist destination. Differentiation Approach Through the implementation of the differentiation strategy, Macau has managed to provide a highly competitive tourism products and services. For example, the use of advanced technology has enhanced the efficiency of the casino centers as well as shopping tourism. Macau therefore provides a more superior tourism services as compared to its competitors such as Hong Kong. Hong Kong has emphasized on the quality of the emerging tourism attractions such as casinos and amusement parks. Although the tourism destination has adopted advanced technology aimed at improving the quality of the emerging tourist attractions, the region has failed to produce consumer-oriented tourist services. This factor has given Macau an advantage thus improving the share of the market, moreover, it is the only place that casinos are legal for commercial purposes. This is because the government and its agencies are responsible for the adoption of laws and adoption of policies that regulate the operations of the tourism industry. In Hong Kong, Casinos are prohibited. The assessment of various tourism destinations of undertaken through interviewing tourists who have visited destinations such as Macau. Moreover, surveys can be used to collect data on the comments by tourists. Data can also be gathered from social networking sites about the interaction between the customers and the tourist destinations. The greatest competitive strength that has helped Macau to be recognized internationally is effective destination management. The introduction of emerging tourism attractions such as shopping tourism and amusement parks have led to an increase in the demand for the tourist attractions (Williams & Richter 2002, p.409). Macau has also allocated sufficient financial resources for promoting the tourism industry as well as for creating a sustainable environment for tourists who visit the region to consumer both emerging and traditional tourist attractions. Just like Macau region, several local and international tourist destinations have promoted both emerging and traditional tourism attractions. Locally, Hong Kong is a major tourist destination. Internationally, the Philippines, Middle East, and Swaziland are some of the greatest tourist destinations in the world. The competitive factors of both domestic and international tourist destinations are different. This is because they deal with different types of consumers. The tourism industry at the international level is highly competitive hence the need to adopt more competitive and consumer-oriented approaches of service and product delivery. Conclusion Effective management of emerging and traditional tourism attractions can transform tourism industry in the society. Through the analysis of the competitiveness of the tourism destinations, the stakeholders in the tourist industry can create a sustainable environment for the consumption of both emerging and traditional tourism attractions. Laws should be passed that provide support to firms that have established emerging tourism attractions. The government agencies should be at the forefront of promoting the emerging and traditional tourism in favorable destinations such as Macau. The adoption of an efficient management system can, therefore, improve the competitiveness of tourist destinations through attracting both domestic and international tourists. Appendix a) Figure showing the increase in the number of tourists visiting Macau in the last five years. Source: Macau Tourism Management Board 2016 Reference List Benur, A & Bramwell, B 2015, ‘Tourism product development and product diversification in destinations’, Tourism Management, 50, 213-224. Capone, F 2016, Tourist clusters, destinations and competitiveness, Oxon: Routledge Engeset, AB & Heggem, R 2015, ‘Strategies in Norwegian Farm Tourism: Product Development, Challenges, and Solutions’, Scandinavian Journal of Hospitality and Tourism, 15(1-2), 122-137. 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