Eco-tourism in New Zealand - Research Paper Example

Executive Summary Eco-tourism has emerged as the fastest growing segment in the industry as consumers have become conscious of responsible travelingalong with seeking thrill and relaxation. New Zealand offers fantastic oppurtunities in marine-based tourism which includes whale watching and swimming with dolphins. Tourists across continents undertake the long journey to NZ because of the oppurtunities it offers but with the changed situations and the challenges that eco-tourism poses, the tour operators have to attract them through dissemination of the right information. This requires communicating the restrictions without discouraging the audience. This enhances the importance of the right marketing communications mix which includes using technology to convey the customer feedback and collaborating with the government agencies. The industry is thriving and there is scope for new entrants so emphasis on personal selling would help Dolphin Explorers to expand its reach. Table of Contents 1. Background 1 1.1 Introduction 1 1.2 New Zealand - eco tourism 2 1.3. Dolphin Explorers 2 2. Challenges and competitive forces in marine-based tourism 2 2.1 Buyer power 3 2.2 Industry structure 3 2.3 Threat of entrants 4 2.4 Bargaining power 5 3. Marketing Communications plans 5 3.1 Advertising 5 3.2 Public Relations 6 3.3. Personal Selling 6 3.4 Sales Promotion 7 4. Conclusion 7 References 8 1. Background 1.1 Introduction The nature of tourism has changed in recent times as new markets and new kinds of tourism has emerged (Herbig & O'Hara, 1997). Eco tourism has emerged among these as the fastest growing segment within the travel and tourism industry. Eco tourism involves travel to experience natural environments or settings. The demand for eco tourism increased as customers shifted from mass tourism enriching and individualistic experiences (Diamintis & Ladkin, 1999). It has been defined as "responsible travel which conserves the natural environment and sustains the wellbeing of local people" (Herbig & O'Hara, 1997). It is a segment of the travel that appeals to the environmentally conscious and has low impact on the surrounding area while contributing to the local economy. Nevertheless, the reality is quite different and New Zealand has particularly experienced social, cultural and economic impact. 1.2 New Zealand - eco tourism The inbound eco tourism market in New Zealand has experienced overall growth and eco tourism in NZ focuses on marine environments, particularly marine mammals, botanical, geological and ornithological resources (Higham & Carr, 2003). Wildlife tourism too also forms a significant element in ecotourism and involves seabirds, marine mammals and native avifauna. The growth and proliferation of eco tourism operations has created difficulties for this sector in NZ. Ecotourism can deprive the local people of the resources that they have been using (Herbig & O'Hara, 1997). Besides, once the local economies become dependent on eco tourism, any downturn in tourism impacts their stability. Ecotourism can result in the commercialization of the culture. On the social side ecotourism, with higher disposable incomes in the hands of the local people can give rise to alcohol related disturbances. Thus, for eco-tourism companies promoting tourism and sustaining the company poses a great challenge. 1.3 Dolphin Explorers - Auckland, NZ Dolphin Explorers (DE) is a privately owned company that operates daily tours offering swimming with dolphins and whale watching experiences (Lck & Higham, 2003). This is the main focus of the company for which visitors travel for 30 hours across continents. DE places great emphasis on the educational values of the tours and hence their staff are experienced and have extensive knowledge of all marine mammals found in the Gulf. Through specifically designed educations programs the children and other tourists are provided enough details on mammals, wildlife and habitats. To combat the challenges posed in promoting eco-tourism, DE has developed the following marketing communications plans keeping in mind the parameters that tourists look for while dedicating itself to preserve the wider marine environment. 2. Challenges and competitive forces in marine based tourism Competitive forces shape strategy in every industry and so is it applicable in eco-tourism. Competitors include the customers, suppliers, potential entrants and substitute products and the collective strength of these forces determine the marketing strategy (Porter, 1979). The competitive forces determine the industry profitability because they influence the prices, costs and the investments. The threat of substitution and buyer power influences the price that DE can charge. Buyer power can also influence the cost and investment because powerful buyers demand costly service. The bargaining power of suppliers determines the cost of raw materials and other inputs. Competition influences the prices as well as the cost of competing in the sector. To deter entrants price war initiates at times. Based on these factors an analysis of the eco-tourism potential in NZ can help design the marketing communications plan for DE. 2.1 Buyer power According to Carol Patterson There is a general interest among the people in 'greening' their lifestyle and this includes recreation and travel choices (cited by Mader, 2007). This has enhanced the demand for eco tourism accommodation and experiences and hence companies can be successful if they have the marketing plans in place. This requires identifying business oppurtunities, developing proper safety and customer services practices, attracting investors and working with trade associations. The travelers need to be convinced of the benefits of choosing an eco-tourism destination. 2.2 Industry structure NZ is one of the few countries where swimming with dolphins and seals are permitted. It is possible to swim with four captive common dolphins at Napier Marineland (Constantine, 1999). The image of NZ has recently been promoted in different ways like The New Zealand Way and a recent re-imaging as 100% Pure New Zealand (Cloke & Perkins, 2002). The government is now promoting NZ as a thrilling and adventurous destination and unspoilt natural settings have been demarcated for the purpose. Oppurtunities for operators in NZ in the area of eco-tourism are boundless. Eco-tourism competition destinations for NZ include Australia, South Africa, Namibia and Botswana (McManus, 1999). NZ markets itself as 'a dangerous destination for young people'. According to NZ Tourism Board about 5-30% of its tourists participate in some form of eco-tourism - whale watching, swimming with dolphins or visiting a seal colony. NZ receives over 100,000 visitors in marine-based tourism annually (Higham & Carr, 2004). 2.3 Threat of entrants Since whale watching was launched in 1987, any number of permits has been granted there is unquantified increase in the viewing of marine mammals from private recreational vessels (Constantine, 1999). Recent proliferation of tour operators has exerted pressure upon the whale watching industry. Policing is difficult and even non-permitted vessels also operate freely and interact with the marine mammals but no action can be taken against them leading to tension between permitted and non-permitted tour operators. At the same time, the permitted operators find commercial disadvantages by obtaining the permits (Lusseau & Higham, 2004). They become equal stakeholders and hence are responsible for the sustenance. 2.4 Bargaining power Marine mammal-based tourism in NZ is wide ranging, species-diverse industry that has increased the demands for boats, land and air-based platforms (Constantine, 1999). As competition has intensified DE would have to maintain strict cost control in engaging third party vessels. Hence they should consider their own investments as far as possible. 3. Marketing communication plans The marketing communication mix that includes advertising, personal selling, sales promotion and public relations have to keep changing as the situation demands (Avlonitis & Papastathopoulou, 2000). 3.1 Advertising Advertising should reflect the changing needs and product positioning has to be done keeping in mind the target audience. Audience is generally influenced by press reports - both positive and negative than by advertisements (FitzGerald & Arnott, 1999). This has enhanced the importance of communicating critical information to the visitors. Marine mammal behavior changes occur due to interactions with vessels (Lusseau & Higham, 2004), with humans and aircrafts (Constantine, 1999). Marine mammal's reactions range from changes in movement pattern, increases in dive intervals and increases in swimming speed. The mammals are affected by the proximity to people and close interaction with boats. Aircraft noise is also known to affect some marine mammals (Constantine, 1999). These have to be communicated through advertisements. 3.2 Public Relations To make eco-tourism sustainable and maintain two-way communications, collaboration with the government is essential. The private operators have to work in close association with the government. Tourism New Zealand (TNZ) has realized the importance of enhanced relationships with the stakeholders (Morgan, Pritchard & Piggott, 2003). Channels of communication have to be refined and new media has to be developed for the exchange of information. Roadshows can be a very effective way to attract the local tourists and create a corporate database to support relationship management and communication activities. 3.3 Personal selling It is very essential to engage visitors and locals. Visitors that travel long distance to experience eco-tourism know why they are traveling and what to expect. They are increasingly concerned about the climate change and they do seek information on this issue as it could affect their travel plans. Marketing communications theory suggests that it is not enough to listen to the customer, it is essential to understand the customer (Olorunniwo, Hsu & Udo, 2006). DE must have thorough understanding of the new avenues available for dialogue and promotion (Planeta, 2007). Maintaining of blogs could be an ideal way to allow access to information of experiences to potential travelers. DE could think in terms of customer feedback blogs using the new web2.0 technology to revolutionize the way visitors are guided. Decisions are formed through social networks and online communities and hence this could be a high priority in marketing communication plans designed by DE. 3.4 Sales promotion Apart from informing and reminding, marketing communication has to perform the function of persuasion, which is difficult through the traditional model. Marketing through the internet offers a departure from the traditional marketing environments (Hoffman, Novak & Chatterjee, 2000). Internet brings in the maximum bookings and hence the website should be interactive. The safety of participants has to be communicated as tourist must have a way of assessing the risks that they place themselves in (Cater, 2006). The communication should clearly state managing actual risks and maintaining optimum thrill levels. 4. Conclusion Eco-tourism in NZ offers tremendous growth potential and requires the right marketing plans. Effective communication and information dissemination along with collaboration with the government can go a long way is achieving the objectives. Using web2.0 technology would help in attracting the potential eco-tourists as they receive customer feedback which is preferable over advertisements. References Avlonitis, GJ & Papastathopoulou, P 2000, 'Marketing communications and product performance: innovative vs non-innovative new retail financial products', International Journal of Bank Marketing, vol. 18, no. 1, pp. 27-41. Cater, CI 2006, 'Playing with risk Participants' perceptions of risk and management implications in adventure tourism', Tourism Management. vol. 27, pp. 317-325. Cloke, C & Perkins, HC 2002, 'Commodification and Adventure in New Zealand Tourism', Current Issues in Tourism, vol. 5, no.6, Constantine, R 1999, 'Effects of tourism on marine mammals in New Zealand. Department of Conservation', Retrieved online 02nd December, 2008 from http://www.doc.govt.nz/upload/documents/science-and-technical/sfc106.pdf Diamintis, D & Ladkin, A 1999, 'The Links Between Sustainable Tourism and Ecotourism: A definitional and operational perspective', Retrieved online 02nd December, 2008 from http://cmstest.jcu.edu.au/business_prod/idc/groups/public/documents/journal_article/jcudev_012705.pdf FitzGerald, M & Arnott, D 1999, 'Understanding demographic effects on marketing communications in services', International Journal of Service Industry Management, vol. 7, no. 3, pp. 31-45. Herbig, P & O'Hara, B 1997, 'Ecotourism: a guide for marketers', European Business Review, vol. 97, no. 5, pp. 231-236. Higham, J & Carr, A 2003, 'Defining Ecotourism in New Zealand: Differentiating Between the Defining Parameters within a National/Regional Context', Journal of Ecotourism, vol. 2, no. 1, Hoffman, DL Novak, TP & Chatterjee, P 2000, 'Commercial Scenarios for the Web: Opportunities and Challenges', Retrieved online 02nd December, 2008 from www.jcmc.indiana.edu/vol1/issue3/vol1no3.html Lck, M & Higham, J 2003, 'Marine ecotourism in the New Zealand urban context: Emerging trends, new challenges and developing opportunities', Retrieved online 02nd December, 2008 from http://www.ttra.com/applications/DocumentLibraryManager/upload/Marine%20ecotourism%20in%20the%20New%20Zealand%20urban%20context.pdf Lusseau, D & Higham, JES 2004, 'Managing the impacts of dolphin-based tourism through the definition of critical habitats: the case of bottlenose dolphins (Tursiops spp.) in Doubtful Sound, New Zealand', Tourism Management, vol. 25, pp. 657-667. Mader, R 2007, 'The Business of Ecotourism', Retrieved online 02nd December, 2008 from http://www.transitionsabroad.com/publications/magazine/0711/the_business_of_ecotourism.shtml McManus, G 1999, 'Ecotourism - born to be wild', NZ Business, Retrieved online 02nd December, 2008 from http://findarticles.com/p/articles/mi_qa5373/is_/ai_n21449747 Morgan, NJ Pritchard, A & Piggott, R 2003, 'Destination branding and the role of the stakeholders: The case of New Zealand', Journal of Vacation Marketing, vol. 9, pp. 285 Olorunniwo, F Hsu, MK & Udo, GJ 2006, 'Service quality, customer satisfaction, and behavioral intentions in the service factory', Journal of Services Marketing, vol. 20, no. 1, pp. 59-72. Planeta 2007, 'Global perspective of ecotourism', Retrieved online 02nd December, 2008 from http://www.scoop.co.nz/stories/PO0707/S00173.htm Porter, ME 1979, 'How competitive forces shape strategy', Harvard Business Review, No. 79208, pp. 93-101. Read More