Benchmarking Utilization in Regional Planning of Tourism Development Martin Luštický, Martin Musil University of Economics, Prague Faculty of Management in Jindrichuv Hradec Research Projects • IGA 06/2010 “Draft of a system for evaluation of the regional programme documents in tourism“ – Draft new complex procedure which enables local governments to evaluate quality of their tourism development strategies • IGA 05/2011 “Evaluation of the tourism regional planning results“ – Integrate new evaluation criteria into pre-defined evaluation procedure – Apply evaluation procedure in practice Tourism Destination Competitiveness • Existing and potential visitation to any destination is linked to destination’s overall competitiveness • Indicators of destination competitiveness – Situational Conditions – such as competitive environment, safety, global environment – Endowed Resources – such as nature, culture – Created Resources – such as tourism infrastructure, shopping, entertainment – Supporting Factors – such as quality of service, hospitality – Destination Management – DM organization, destination policy and planning, HR development Benchmarking in Tourism • Benchmarking in tourism can be classified into these spheres – Benchmarking of non-profit oriented tourism organizations • National or regional tourist boards/organizations • Attractions operated by public authorities or other forms of non-profit oriented businesses (e.g. museums, galleries, theatres, operas, etc.) – Benchmarking of profit-oriented tourism businesses • Accommodation suppliers • Restaurants • Tour operators and travel agencies • Other profit-oriented tourism service providers – Destination Benchmarking • National benchmarking • Regional benchmarking • Local (rural or urban) benchmarking Benchmarking as a Evaluation Technique of Tourism Strategies • Benchmarking method can be ranked among comparative evaluation technique • Benchmarking is considered as an important tool for enhancing the quality by learning process • It has the ability to support an achievement of sustainable competitive advantage • Benchmarking can be described as a structured process by which an organization seeks to identify and replicate “best practices” to enhance its strategic position Research Method • There is one important problem in the sphere of regional planning – stipulation of objective criteria for making an evaluation. These criteria should be derived from general requirements on a quality of evaluated subjects. • The evaluation process can be described as a comparison of the evaluated subject’s state with pre-defined criteria which create socalled comparison level. • The basis for tourism development strategies evaluation is comprised by three general requirements (so-called quality spheres) – the requirement of strategy suitability with a regard to the strategic position of the region – the requirement of strategy acceptability for key stakeholders – the requirement of strategy feasibility Research Method: Step 1 and 2 • Elaboration of the quality spheres into the partial requirements – The initial set was made with the help of an extensive literature review – This set was verified and reviewed by the key regional actors with the help of the Likert scale • Transfer of the requirements into the measurable criteria – The method of Quality Function Deployment was used as a transfer principle – The importance of concrete criterion was derived from point evaluation of the requirement importance (0 – 5 points) and from point evaluation of the intensity of the link between the requirement and derived criterion (0 – 1 point) – The importance of the criterion is given by this formula Research Method: Step 3 and 4 • Evaluation procedure – Each criterion was assigned by the key characteristics which should be reached by this criterion – The evaluator made an assessment of the criterion fulfilment by tourism development strategies on the rating scale enabling to assess how intensively the criterion meet the key characteristics • Evaluation method – Distributive phase – the partial evaluations from the individual evaluators are converted into a common table – Delegated phase – the evaluators may transfer their relative vote strength according to the individual assessment of own skills, knowledge or experience necessary for the evaluation – Synthetic phase – the partial evaluation is adjusted to the resulting relative vote strength of individual evaluators Research Method: Step 5 • The aim of the evaluation process is to select the best regional development strategies on the basis of objective and unified criteria. – The Kepner-Tregoe Decision Analysis was used as a suitable decision-making tool • Selection of the strategies is done through the point value of the partial evaluation of individual criterion, its importance, with a respect to the relative vote strength of individual evaluators • The overall quality of tourism development strategies can be expressed as the sum of the resulting values of the individual criteria. The Examples of Evaluative Criteria • Strategy suitability (total 15) – Target groups are described in the document – Document takes into account the impact of selected global factors – Document deals with internal resources to achieve the desired future state – Document contains a clear synthesis of the results of external and internal analysis – Objectives correspond with the SMART parameters – Arrangements for achieving the vision are suggested in the document • Strategy acceptability (total 14) – Arrangements support the quality evaluation systems – Arrangements support co-operation and co-ordination of tourism subjects – Arrangements support environmentally friendly behaviour – Arrangements support wellness and relaxation activities – Arrangements support on-line reservation systems • Strategy feasibility (total 4) – Document identifies the necessary resources to implement the proposed activities – Document sets a timetable for implementation of proposed activities – Responsibility of individual entities for implementation of proposed activities is set – Document proposes a system of monitoring of implementation of proposed activities Pilot Application • The following strategies were randomly chosen as a test sample – North East England Tourism Strategy (Great Britain) – Tourism Development Strategy in the South Bohemian Region (Czech Republic) – Strategy of tourism development of the Bratislava region (Slovak republic) • The evaluation process was made by four evaluators – members of the research team Overall Results • The evaluation based on three main requirements points out the Czech tourism development strategy as the best document. • However, even it can take examples of good practices from other strategies – such as – compiling the SWOT analysis – supporting the modern communication tools – assuring the successful implementation of the strategy itself Examples of the Best Practices • Strategy suitability – Well-defined initial conditions, including linkages with other strategies at the state level (CZE) – Well-elaborated internal and external analysis (SVK) – Well-defined SMART parameters of the goals (CZE) • Strategy acceptability – Excellent communication with the visitors (GBP) – Support of the on-line information and reservation systems (SVK) – Promotion of sustainable forms of tourism and active holidays (CZE) • Strategy feasibility – Identification the necessary resources for strategy implementation (GBP) – Detail schedule for strategy realization (GBP) Next Steps of the Research • Implementation of the evaluation process to a userfriendly online application • Utilization of this application for benchmarking process of the selected European tourism destinations • Creation of the international benchmarking database of the best examples from tourism management • Linking the results of our evaluation with the level of tourism destination competitiveness – How strong is the connection between planning quality and destination competitiveness? – Are there any typical “planning patterns“ of successful destinations? Thank you for your attention and have a nice day! Martin Luštický Department of Public Sector Management Faculty of Management in Jindrichuv Hradec University of Economic, Prague e-mail: Lusticky@fm.vse.cz