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Unlock This CourseTourism destinations need to constantly develop new products and services to stay competitive and meet changing visitor needs. This is a bit like how shops need to keep getting new things in to keep customers interested!
Key Definitions:
Destinations need to develop new products and services to:
Many stakeholders play a role in tourism product development:
Just like people, tourism products have a life cycle with different stages. Understanding where a product is in its life cycle helps destinations make smart decisions about development.
The product is new and visitor numbers are low. Marketing costs are high and profits are minimal. Example: A newly opened eco-tourism trail.
Visitor numbers increase rapidly. Word spreads, profits grow and competitors may appear. Example: A beach resort becoming popular on social media.
Growth slows, visitor numbers stabilise. Competition is fierce and profits may plateau. Example: Well-established theme parks.
The market becomes crowded. Visitor numbers may start to decline. Example: Overcrowded beaches in popular resorts.
Visitor numbers fall significantly. Facilities may become outdated. Example: Faded seaside towns that were popular in the 1970s.
The product is reinvented or repurposed. New investments bring new life. Example: Industrial heritage sites converted to cultural attractions.
Destinations use various approaches to develop new or improved tourism offerings. These methods help ensure that new products meet market needs and are financially viable.
Before developing new products, destinations need to understand what tourists want. This involves:
For example, if research shows growing interest in food tourism, a destination might develop culinary tours or cooking classes.
Destinations can use several strategies to develop their tourism offerings:
Enhancing existing products to make them better or more appealing. For example, adding interactive exhibits to a museum or upgrading hotel facilities.
Creating entirely new products to attract different markets. For example, a beach destination adding winter sports facilities or cultural festivals.
Getting existing products to more people in current markets. For example, offering discounts in the off-season or creating family packages.
Taking existing products to new markets. For example, promoting a destination to international visitors when it previously focused on domestic tourists.
Barcelona, Spain, has successfully developed its tourism products over time:
Barcelona shows how a destination can continuously develop and adapt its tourism products to remain competitive while addressing challenges.
Modern tourism product development must consider sustainability to ensure long-term success and minimise negative impacts.
Products should minimise resource use, protect natural areas and reduce carbon emissions. Example: Eco-lodges built with sustainable materials and powered by renewable energy.
Products should create local jobs, use local suppliers and generate long-term economic benefits. Example: Food tours featuring local restaurants and producers.
Products should respect local culture, involve community input and benefit local residents. Example: Community-based tourism where visitors stay with local families.
Developing new tourism products isn't always straightforward. Destinations face several challenges:
Costa Rica has successfully developed ecotourism products by:
This approach has transformed Costa Rica from a little-known destination to a global leader in ecotourism, attracting over 3 million visitors annually and generating significant economic benefits while protecting natural resources.
The tourism industry is constantly evolving. Here are some trends shaping future product development:
Virtual reality tours, augmented reality guides and smart destination apps are becoming essential parts of tourism products. For example, historic sites offering AR experiences that show how places looked in the past.
Products that minimise environmental impact and benefit local communities are growing in popularity. This includes carbon-neutral tours, plastic-free accommodations and community-based tourism initiatives.
Tourists increasingly seek genuine connections with places and people rather than generic attractions. This drives development of products like homestays, cooking classes with locals and craft workshops.
Products focused on health and wellbeing are growing rapidly. Destinations are developing spa facilities, meditation retreats, fitness holidays and nature-based healing experiences.