Hosting Events as a Strategy for Sustainable Destination Management - Essay Example

Hosting Events as a Strategy for Sustainable Destination Management By Introduction Tourism industry has been a major contributor to the total GDP of many countries for decades, and it has become one of the major pillars of the economy with the turn of the 21st century. Many economically developed countries including US and UK relied on the tourism sector to sustain growth when they were severely hit by the recent global recession. Today hosting events have become an integral part of tourism activities, and they contribute significantly to the socio-economic development of a region. This paper will assess the value of hosting events as a strategy for sustainable destination management. Hosting events for sustainable destination management A local tourism destination can be simply defined as a physical space where a visitor spends at least one overnight, and it includes tourism products such as attractions and support services and other tourism resources. The physical and administrative boundaries of the destination define its management whereas images and perceptions define its market competitiveness. In the current context of growing tourism sector contribution to the economic development of a region, an integrated management approach based on collective vision and strong leadership is vital to augment the scope of the destination. Destination management is an integral part of tourism development because this process is inevitable to meet the needs of foreign as well as domestic visitors effectively. According to the World Tourism Organisation, “destination management is the co-ordinated management of all the elements that make up a destination (attractions, amenities, access, marketing, and pricing.” (WHO, 2007, p. 4). Effective and joined destination management is beneficial to avoid duplication of efforts in relation to promotion, visitor services, training, and business support. In addition, destination management is a potential approach to identify management gaps that are not being addressed (Ibid, p.4). Hager and Sung (2011) claim that the concept of destination management delivers a range of benefits to the community as well as the economy and is particularly vital to respond positively to the growing need for multidisciplinary strategies aimed at local, regional, and national level tourism. In addition, destination management is beneficial to establish a competitive edge and to promote tourism sustainability. Furthermore, this collaborative management concept can assist tourism destinations to build a strong and vibrant identity. However, destination management is not a simple task as it requires extensive and collaborated efforts from different stakeholders including government, local businesses, and the community. The success of destination management greatly depends upon the extent to which a particular destination remains to be the first choice of visitors. Destination Management Organisations (DMO) perceive hosting events as a great strategy to keep visitors interested in a particular destination. Tourism industry experts say that many people travel worldwide to watch mega events, and this contributes to the popularity and overall development of a destination. In the words of some experts, “destination management includes all the strategic, organisational, and operational decisions to manage the creation and also the promotion of a territorial supply system.” (Dwyer & Wickens 2013, p.148). The authors add that there is a strong correlation between destination management and territorial marketing, which is the fundamental tool for promoting local development. The idea of territorial marketing can greatly assist the policy makers to develop potential strategies to attract resources and visitors and to use the local manpower (Ibid). In other words, it is essential to attract a large pool of visitors before framing destination management policies, and territorial marketing is a better approach to do this task. Hence, tourism policymakers worldwide rely on territorial marketing approaches to attract potential visitors to the tourist destination and thereby support their destination management operations. According to Wagen (2010, p. 6), event hosting has been identified as a key territorial marketing approach capable of supporting sustainable destination management. Hosting a major event is a great strategy to improve the status of a country or region or destination. By raising the profile of a destination, it is possible to generate sustained economic outcomes. Cities that host major events like Olympic Games can obtain a persistent increase in recognition and tourism (Jago et al 2010). For instance, cities such as Barcelona, Sydney, and Beijing have gained worldwide recognition and a set of potential economic benefits from hosting the Olympics. Even a country like China with a controversial human rights record gained greater international acceptance from hosting the Beijing Olympics (Ibid). When South Africa hosted the Rugby World Cup and later the Football World, global visitors realised the scope of South Africa as a tourism destination. The South African tourism industry used this public exposure effectively to promote its customs, traditions, and values. Today, it is easy for the country’s tourism policymakers to deal with destination management efficiently because they are really informed of the region’s potential resources that attract visitors worldwide. This raised profile can benefit the destination to attract potential investments and to contribute significantly to the economic development efforts of the region. It is important to note that the influence of hosting a major event on a region greatly depends on the current status of that particular region. To explain, hosting the Olympics was less influential for the London city, which had already enjoyed worldwide recognition and a strong reputation. However, Olympics hosting made a big difference to the perception of South Africa because the international community was less informed of the scope of the tourism sector and other industries in the country before this mega event. In addition, hosting a major event may aid a country/region to obtain broad media coverage and to keep the global tourist community enthusiastic of the place. Probably, visual media like television channels may telecast documentaries about the region prior to the event, and this extensive exposure in turn would assist the region to publicise its major tourist attractions, cultures, traditions, and values. In short, event hosting can significantly increase the popularity of a region and its attractions. According to Solberg (2014), long term investment is another advantage of hosting an event that can add value to sustainable destination management. For hosting a mega event like Olympics or Football World Cup, it is vital to invest heavily in infrastructure development and other basic facilities. Under such circumstances, the region would obtain financial assistance from International Olympic Council (IOC) or FIFA and hence there may not be scarcity of funds. The development of improved transport facilities and amenities would contribute to the tourism value of the destination and which in turn can assist the region’s tourism sector to meet the needs and expectations of visitors efficiently (Hussin, 2014). For instance, the Chinese government invested heavily in Beijing’s infrastructure development and transport facilities as part of the 2008 Summer Olympics, and this initiative really contributed to the city’s tourism efforts. When there is a developed infrastructure and transport sector, the policymakers can effortlessly frame destination management approaches to enhance the tourism growth. Another benefit of hosting a major event to destination management is that it creates new employment and investment opportunities. To illustrate, according to official figures, the Olympics and Paralympics created over 100,000 jobs in London (Prynn, 2012). The figures also show that the Games helped the British economy to increase the number of people in work to a record 29.59 million in three months to August 2012 (Ibid). In addition, the total of jobless people dropped by 50,000, to a 15-month low of 2.53 million or 7.9 percent (Ibid). Likewise, the BBC News reports that the UK economy experienced a £9.9bn boost in trade and investment from hosting the 2012 London Olympic and Paralympic Games (BBc, 2013). The UK Trade and Investment department (UKTI) states that the Games resulted in £2.5bn additional inward investment, £5.9bn additional sales from Olympic-related promotions by the Foreign Office and UKTI, and £1.5bn high value overseas contracts (Ibid). Evidently, the rise in employment and investment revitalised the London economy even when the city was undergoing dreadful recessionary pressures. Clearly, increase in employment, trade, and investment would improve the overall revenues of a region, and this situation may influence the spending behaviour of natives. When people have less income to spend or their spending capacity is limited, it would be really difficult for policymakers to deal with destination management efficiently. Furthermore, hosting a major event may assist the tourism sector to earn profits and to perform its expansion activities in an effective manner. When there is sufficient cash reserve to propel tourism sector growth, policymakers can frame proactive destination management approaches that would address the changing tourism trends. In the event of hosting a major event in a region, there will be an injection of money into the local economy in the short term (Dixon et al 2013). This short term pumping of money may assist many related industries such as hotels, resorts, and transport sector to strengthen their competitive position in the marketplace. It seems that local governments would be interested to improve the region’s sport facilities while conducting a major event so as to deliver a better event experience to participants, officials, and viewers. Such additional investments in sport facilities can greatly benefit destination management companies to plan for the future effectively and to attract more visitors. In the words of Inkson and Minnaert (2012, pp.183-184), hosting events can be considered a viable strategy for sustainable destination management. By hosting events in a thoughtful manner, it is possible to co-ordinate the fragmented supply of different tourism sector services that influence the tourists’ experience in a destination. Event hosting is a great way to create a single cohesive vision and strategy for tourism, which is the primary objective of destination management (Hall & Alan, 2008, p.128). When an event is hosted in a destination, it is easy to provide prospective and actual tourists with information about the destination; and also the destination stakeholders with the information about markets and trends. Event hosting is also a potential strategy to develop and maintain high quality resources for tourism and to create an improved image for promoting the destination. Finally, when an event is hosted successfully, it is a great experience for destination management companies to perform their tasks effectively and hence to add value to the idea of destination management. If an event is ended up in poor audience participation or failure, destination managers can identify their areas of weakness and take immediate actions for improvement. To sum up, hosting a major event can deliver a range of socio-economic benefits to the destination. This is a feasible strategy for sustainable destination management in every respect. Conclusion From the above discussion, it is clear that event hosting is an effective strategy for planning the tourism growth because a major event can entirely change the face and perceptions of a region. There is a strong relationship between destination management and territorial marketing, which is a key to enhance the tourism popularity of a region. Event hosting is an important tool of territorial marketing and is practiced by tourism sectors across the globe. When hosting a major event, there will be an increase in employment, trade, and investment. This will also boost the local economy and realisation of profits in short term. References BBC News UK (July 19, 2013) London 2012 Olympics have boosted UK economy by £9.9bn. available at: http://www.bbc.com/news/uk-23370270 Dixon AW et al (2013) Assessing the Economic Impact of Sport Tourists Expenditures Related to a Universitys Baseball Season Attendance. Journal of Issues in Intercollegiate Athletics, 6: 96-113. 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Available at: http://www.standard.co.uk/news/london/the-olympics-boom-created-100000-jobs-in-london-8214954.html Solberg HA & Preuss H (2014) Economics and Finance Major Sport Events and Long-Term Tourism Impacts. Journal of Sports Management, 21 (2). Wagen LV (2010) Events & Tourism Essentials. AU: Pearson Higher Education. World Tourism Organisation (2007) A Practical Guide to Tourism Destination Management. World Tourism Organization. Read More