Critical success factors for leveraging mega-events as an element of tourism destination competitiveness: a case study from the 2010 FIFA World Cup™

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Content: Critical success factors for leveraging mega-events as an element of tourism destination competitiveness: a Case Study from the 2010 FIFA World CupTM EA Kruger & ET Heath Department of Tourism Management, University of Pretoria, Pretoria, South Africa EA Kruger (corresponding author) Lecturer, Department of Tourism Management Tel: +27(12) 4203957 Fax: +27(12) 4203349 [email protected] Prof. ET Heath Department of Tourism Management Tel: +27(12) 4204000 Fax: +27(12) 4203349 [email protected] 1
Critical success factors for leveraging mega-events as an element of tourism destination competitiveness: a case study from the 2010 FIFA World CupTM South Africa's hosting of the 2010 FIFA World CupTM came at a time when hosting of a mega-event has become a sought-after status for countries worldwide. However, no destination is guaranteed success and long-term competitiveness by being offered the once-off opportunity to host a major international event. This study aimed to determine stakeholders' perspectives on the ways in which a megaevent could contribute to destination competitiveness. Existing literature on destination competitiveness and mega-events were studied to furnish an initial set of apparent key success factors for the leveraging of mega-events. The relevance of these factors was then tested through the collection of primary and secondary qualitative data from a host city on the eve of the 2010 FIFA World CupTM in South Africa. Stakeholders were also contacted two years after the event to test the relevance of the perceived contributions in retrospect. The results indicate how a mega-event has the potential to advance destination strategy development, but may also present various areas in which limited contributions could be incurred. Keywords: destination competitiveness; stakeholder perspectives; mega-events; 2010 FIFA World CupTM, case study Introduction Within the international business environment, competitiveness is a well- known and widely applied concept (Ritchie & Crouch 2003:12). It started gaining importance in the tourism industry and specifically in the field of strategic destination marketing and management in the late 1990's. As a result, various researchers developed comprehensive models (Dwyer & Kim 2003; Hassan 2000; Heath 2002; Jonker 2003; Ritchie & Crouch 2003) that aim to integrate the multitude of dimensions and indicators that form part of the concept destination competitiveness. Within these models no individual indicator's possible contribution should be considered `cast in stone' and there will always be opportunity for further research. It can also be stated that the study of individual indicators, such as events as an attractor, may only be 2
regarded as a meaningful contribution to the field of destination competitiveness if it is done within a holistic context and if the findings have purposefully been linked to existing models of competitivenesS. Literature review The literature explored in the study originated from two fields, namely tourism destination competitiveness and events studies. Focus was on the most popular and recent work, in order to form an understanding of the most recent approaches to measuring and managing destination competitiveness. The events literature was explored with the aim of adding event-specific knowledge to the broader tourism management themes; thereby focusing on events literature that had relevance to destination marketing and management and overall destination competitiveness. Overview of and approaches to tourism destination competitiveness For the purpose of this study, the definition of destination competitiveness, as proposed by Ritchie and Crouch, was adopted. "A destination's ability to increase tourism expenditure, to increasingly attract visitors while providing them with satisfying, memorable experiences, and to do so in a profitable way, while enhancing the well-being of destination residents and preserving the natural capital of the destination for future generations." (Ritchie & Crouch 2003:2). In an effort to determine the different academic approaches towards destination competitiveness, two types of competitiveness research could be identified. The first group relates specifically to the way in which certain elements can be used to further enhance a destination's levels of competitiveness. The second group relates to discussions of existing models. 3
Table 1 provides a summary of the literature studied on destination competitiveness. The evaluation of individual elements and indicators, as has been done by the first group of studies mentioned, remains a viable endeavour. It can be argued that, in order for a study of mega-events, from a strategic destination management perspective, to make a meaningful contribution, it has to be done from within the established models of destination competitiveness. Four prominent and frequently cited models of competitiveness were explored and events were found to be included as an element in all four models (Dwyer & Kim 2003:378; Hassan 2000:241; Heath 2002:339; Ritchie & Crouch 2003:63). It was decided to use the Conceptual Model of Destination Competitiveness of Ritchie and Crouch as a basis for the study's empirical work, seeing that it is "... without a doubt, the most comprehensive framework so appeared in several publications over a period of 10 years ..." (Mazanec, Wцber, & Zins 2007:87). The strategic role of mega-events within destination marketing and management Most destinations host a number of different events on an annual basis and, except for the roleplayers directly involved, most of these events go largely unnoticed. There are some events however, that stand out because of their national and/or international recognition and promise of grandeur (Smith 2010:263). These are known in the wider literature as mega-events; events that by their nature yield "extraordinarily high levels of tourism, media coverage, prestige or economic impact for the host destination." (Damster & 4
Tassiopoulos 2005:12). Exploration of events literature specifically focused on these types of events. According to Getz, the study of events is neither new nor exclusive to tourism, but has "... long existed within several disciplines, manifested in research and theory development ..." (2008:405). Various aspects of events have been studied, with the majority being from an event management perspective. The studies that do take an event tourism angle, focus mainly on marketing or event impacts (Getz 2008:409). Mega-events per se have "long been defined and analyzed in terms of their tourist attractiveness and related image-making or developmental roles" (Getz 2008:407). It has only been over the last decade however (in the run-up to the 2000 Summer Olympic Games in Sydney) that there has been a significant move toward gaining a greater understanding of the `legacies' of such events for host destinations (Preuss 2007:210) and on event leverage as opposed to event impacts (Chalip 2006:112). Despite this growing awareness of the need to analyse mega-events in their entirety as happenings that have multi-dimensional positive and negative implications for host destinations, very little work could be found that focus specifically on mega-events as contributors to overall destination competitiveness. Getz even states that "... many planned events are produced with little or no thought given to their tourism appeal or potential ..., and sometimes there is simply no relationship established between events and tourism" (2008:408). Getz (2008:403) states that "The role and impacts of planned events within tourism have been well documented, and are of increasing importance 5
for destination competitiveness." He continues to state that events are usually regarded as "... an application of or speciality within national tourism offices and destination marketing/management organisations ..." (2008:406). Such events affect and are in turn affected by many factors within the destination. They hold a range of possible benefits and disadvantages for the destination, with the economic and social impacts being the most prominent and most widely researched (Chalip 2006:112; Steyn 2007:10; Wood 2005:38). The impacts also extend to include cultural, physical, technical and psychological impacts (Ritchie 2000; Wood 2005:38); all of which do not necessarily culminate into positive long-term benefits for the host destination (Preuss 2007:210). No destination is guaranteed success and long-term competitiveness by being offered the opportunity to host a major international event. In some instances a mega-event can cause more harm than good to the destination at large (Chalip 2004; Preuss 2007:210). Destination managers and event organisers may not be able to, through a given mega-event, replicate the legacies previously created by similar events and it is often difficult to predict event legacy (Preuss 2007:213). Even though successful host destinations may serve as benchmarks for others, they may not necessarily be at the forefront of competitiveness in terms of all the multiple dimensions encompassed in an international destination. Apparent critical success factors to leverage mega-events for destination competitiveness What needed to be established were the factors of critical importance when destination managers propose to employ mega-events as part of their competitive strategy. Such critical success factors (CSFs) will be the 6
resources, skills and attributes of a destination that are essential to deliver success in the marketplace (Lynch in Jonker 2003:61). Event-related CSFs will be specific areas of success which, if they deliver satisfactory results, will insure sustainable competitive performance for the destination (Jonker 2003:61). From the ensuing literature review on destination competitiveness, the researchers concluded on five apparent CSFs to effectively address any issue at a strategic level of destination management. They include: (i) addressing events as strategic destination priority; (ii) clarifying the stakeholder roles and relationships; (iii) managing the relevant host destination resources; (iv) ensuring alignment with the overall destination marketing strategy; and (v) consideration for environmental issues. In order to meaningfully relate events to these aspects of destination competitiveness, there needs to be a clear understanding of all the aspects encompassed in an event. Events literature and case studies were explored to add key performance areas to the CSFs, according to the nature of megaevents and event-related issues. The literature study identified a multitude of factors that could form part of a set of CSFs to effectively leverage megaevents as an element of destination competitiveness (refer to Table 2). The task at hand was now to determine whether these elements were regarded as important by industry stakeholders, and whether they would contribute to an event's perceived impact on destination's competitiveness. The next section 7
will continue with the methodology employed for the empirical component of the study. Methodology empirical research was conducted within the City of Tshwane (hereafter referred to as CoT or the City) in Gauteng, South Africa, as the chosen case study. A multi-method research choice was employed to collect and analyse both primary and secondary qualitative data from the case study (Saunders, Lewis, & Thornhill 2007:145). By using the combination of data collection methods, the different views present in the case study could be established more reliably (Saunders et al. 2007:119) and also assisted with establishing the validity of the findings. The initial study was cross-sectional and data collection took place before the beginning of the event, with the aim of understanding this host city's readiness and preparation for the event. Documentary secondary data was used and written material was purposefully sampled from the CoT Tourism Division. It included strategy documents, workshop reports and promotional material dating from 2005 until 2010. For primary data collection, semi-structured interviews were conducted; lasting between 45 minutes and 2 hours. A total of 20 participants from across the various sectors, chosen through a combination of purposeful, snowball and discriminant sampling were interviewed. Heterogeneous or maximum variation sampling was used to create a balanced portfolio of information-rich participants from the tourism/event industries, as well as from both the public and private sectors. Care was also taken to select individuals that serve on different levels within organisations (from top management to departmental level). This inclusion of diverse Individual Cases allowed for more effective 8
identification of the key themes (Saunders et al. 2007:232). For the follow-up survey undertaken in 2012, public and private sector tourism stakeholders in Tshwane were requested to, in retrospect, state whether they agree or disagree with the perceived contributions that were identified in 2010. They were also requested to comment on any other positive legacies not mentioned then, as well as any areas in which the perceived/expected benefits did not materialise. Findings and discussion of the initial stakeholder interviews CSF 1: Addressing events as a strategic destination priority "You need a good team and a good strategy. You have to have committed people guided by strong leadership - politically and operationally. You have to have qualified, skilled people at the head of the process". Within the City of Tshwane (CoT), the process of establishing an RTO was progressing slowly. Six participants stated that the absence of such an entity was a critical issue that needed to be addressed within the CoT. Not only did it affect the City's `general' competitiveness, but also specifically in terms of the destination's ability to optimally leverage the 2010 FIFA World CupTM. It created a situation where Government's politically motivated development mandates were given primary consideration for the 2010 FIFA World CupTM (as indicated by five stakeholders). This is not unusual, as has been stated in the literature. However, the absence of an RTO that could strongly represent and drive the tourism cause, could affect the destination's ability to retain a major tourism legacy from the event. What counted in the destination's favour, and which were heralded by eight participants, was the existence of the socalled Tshwane Tourism Action Team (TTAT); a public-private partnership 9
established two years before the event. Figure 1 indicates the position that the TTAT filled within the City's organisation for the event. Figure 1: Organisation of the City's tourism industry for the event It is clear that mega-events have the potential to change strategic thinking around events, but also to bring change to tourism strategy in general. The 2009 Confederation Cup and 2010 World Cup provided a good reason to be more proactive, to fast-track planning and strategic actions, and to highlight some of the "most important things that we have to put in place to prove that we can compete" (given the window of opportunity that the event would present). Future event-related strategies of the destination can only be competitive if they are based upon effective post-event evaluation. In the case of the CoT, the lessons learnt during the Confederations Cup in 2009, were used to "realign and rearrange our operational plans toward 2010. Almost all our operations plans were rewritten. You have to be flexible". Furthermore, the 2010 Unit incorporated an extensive research project to establish the economic, environmental and infrastructural impact of the 2010 FIFA World CupTM within the CoT. Two participants alluded to the fact that an event 10
strategy had to indicate how money made from the event will be reinvested into facilities to strengthen the destination's events offering. CSF 2: Clarifying the stakeholder roles and relationships For any destination marketing and management structure to function optimally, it has to be representative of both the public and private sectors. "You need a champion. You need the buy-in of business, complimented by politicians." This is not only true for DMO practices in general, but also directly relate to a destination's desire to enter the events market. "People tend to not know anything or wanting to know how `I' can benefit, but not understanding that it's about how the collective can benefit". As is the case with strategic thinking around events, a mega-event clearly has the potential to change stakeholder relationships within a city. In response to the question whether stakeholder relationships had improved as a result of the event, the answer was clear. "Yes, definitely, absolutely. Because the event brings to the table expertise, but also budget and alignment of individuals. And I talk from a practical experience point of view. The event brought individuals, personalities together to reach that [same] goal." Key to promoting such stakeholder cooperation, is timely involvement of stakeholders and implementation of plans (a point raised by five participants). The host community is a very important stakeholder in terms of sustainable event leverage. It is not only political buy-in that is needed for a destination to host an event successfully, but also the support of the ordinary citizens. Three participants stated that not enough communication has gone out to the "rate payers". 11
CSF 3: Managing the resources of the host destination Events stimulate upgrading and expansion of infrastructure; thus indirectly contributing to the quality of the resources in the destination. It also assists the destination to develop infrastructure that can support any future eventrelated strategies. Events also force a destination to re-evaluate the quality of its existing products. Participants mostly felt more positive in terms of upgrading of roads, the local stadium, signage in the City, as well as the cleaning and beautification of public places. Issues where participants had a negative opinion included upgrading of accommodation and attractions. Participants stated that an excess of accommodation has been created, which could lead to oversupply after the event. In terms of the attractions, three participants stated that nothing has been done to improve existing flagship attractions. Similar to the quality of infrastructure and resources, a mega-event presents an opportunity to focus renewed efforts on service delivery and human resource development. Such focus on capacity building ensures a more sustainable and competitive destination offering in the future. The 2010 Unit undertook 23 capacity building projects that looked "holistically at capacity building projects, not only focusing on 2010 but post-2010 businesswise". Very importantly, the host destination also has to be able to capture the event organisation knowledge that is gained during an event (a point made by five participants). Apart from service delivery training of the tourism sector and the use of local expertise to organise the event, an event can also contribute to human resource development through volunteer programmes. A total of 3 292 persons applied to be volunteers in the City, of which 2600 were City 12
residents. A total of 680 volunteers were finally recruited (Anon 2010). This indicates the power that an event can have to bring a change to the lives of the local community, but also to broaden their perspectives of the world (as stated by two participants). CSF 4: Ensuring an event marketing strategy that is aligned with the overall destination marketing strategy As already stated, the majority of participants felt that the partnership between the Tourism Division and TTAT was a major enabler in terms of destination marketing. However, there seemed to be a disadvantage, based on the fact that the Integrated Communication and Marketing Information Services Division (ICMIS) had been given the `final say' on all City communication going out for the event. Even though there were apparent good relations between the three entities ("No, we are working closely together ­ we [Tourism Division] and ICMIS and 2010 Office. Very close cooperation"), tourism would not optimally benefit from this partnership with the event organiser. "The structure in the City Council is not nice for marketing. It is ridiculous that corporate communication people [ICMIS] have to have an input into tourism marketing messages ... ICMIS should not have any input into the tourism communication that will be going out". A contentious issue within the City amongst tourism industry members was the name change from Pretoria to Tshwane. To many participants this presented a great challenge and hindrance to the City in terms of competitively marketing the City. Two participants stated that it was a major weakness of the City during the event. Four participants indicated that they felt the World Cup provided an opportunity to introduce the new name to the world, and to educate tourists that Tshwane is Pretoria as they knew it. The 13
Tshwane/Pretoria link was established when FIFA agreed to using the dual name for the event. It was stated that the event would address the issue in `finality', and that it would be sufficient to establish the new brand which would be associated with the new history (post-Apartheid) of the country. However, three participants felt that it was too late to start educating the tourists and that, because of the confusion around the name, the City would not fully benefit from the marketing potential offered by the event. In terms of the roll-out of the FIFA Host City composite branding, this task was performed by the 2010 Unit. Five participants mentioned that there was not enough `dressing up' of the City in order to create the vibe and anticipation for the event. Based on the promotional program of the 2010 Unit, quite a lot had been done. Still, there appeared to be some inefficiency in the way that the promotional material was being distributed to tourism product owners. Two participants made the statement that they were [three weeks before the event] "even battling to get World Cup branding that can be put up at our facility. I'm being pointed in all directions and we cannot get that". Also, that once a delegate arrives at the collection point "nobody knew about it [the promotional material]. All of this indicates "a bit of internal challenge as well". In terms of the new tourism brand, the Tourism Division worked in conjunction with the 2010 Unit to include the tourism brand where possible. To a large extent, the tourism industry did not have real control over the exposure that the brand would be getting during the event. Tourism industry members were also being encouraged to make use of the new tourism brand. However, it seemed that more could have been done in this regard as 14
industry members were only sent a "general email [one month before kickoff], but only one, informing us of the new brand identity and how to use it". In terms of media exposure for the City, the 2010 Unit created a media centre for non-accredited media at the Fan Fest, as well as at the stadium. Four participants stated that a mega-event brings the opportunity to expose the destination to new markets and also to attract the attention of high profile broadcasters. The 2010 Unit was responsible for the content of promotional material and to guide the visiting journalists. The Tourism Division also gave inputs and content, in terms of most visited attractions, township products and so forth. Two participants raised their concerns, stating that nobody yet knew what the content of the material would be and that they hoped it would not just "promote township tourism" and very little of "the other [established] things". Other issues that were raised, but that will not be elaborated upon, included lack of industry education on event-related marketing restrictions; the creation of unrealistic expectations among industry members as well as the local community; the Visitor Information Centre developed at the last minute and lacking directional signage; lack of a centralised booking system and information point for the City; the location of the Fan Fest at a venue (Centurion) that is not popularly linked to the CoT; the challenge of offering visitors an unexpected experience; lack of co-marketing among tourism businesses throughout the City; as well as insufficient communication with and among industry members. CSF 5: Concern for and pro-actively addressing environmental issues The last CSF that was explored amongst stakeholders, appeared to be one that is least considered. Only three stakeholders mentioned environmental 15
issues and it became clear that the issue of event greening from a DMO and tourism stakeholder perspective, would need a concerted effort in terms of creating awareness and encouraging appropriate practices. Environmental issues were officially addressed by the 2010 Unit in collaboration with the Department of Agriculture and Environmental Management of the City. This Department generally focuses on nature conservation and resorts management, waste management and open space management. A participant involved with this department stated that "implementation of `Green Goal' initiatives to reduce the tournament's carbon and ecological footprint", was a key task to ensure the City's ability to act as a host city. From a City management perspective, there had thus been the required (by FIFA) initiative to ensure event greening; with a focus on accommodation, the stadium, public viewing areas and the official fan park. The 2010 Unit, for example, held greening workshops among the accommodation industry members. From a DMO perspective however, there were little effort to encourage `green 2010 practices'. One `greening' workshop that was hosted by the 2010 Unit, had `shockingly low' attendance from industry members. As one participant explained: "There was enthusiasm at first, but unfortunately greening has cost implications. Even though it has a payback period, the impacts are now felt in the pockets of the industry". In order for a DMO to fulfil its responsibility to encourage green practices, it is necessary to partner with the relevant supporting stakeholders. This may also include collaborating with local tourism industry stakeholders that have specialised knowledge in this regard, in order to green the event from a DMO perspective. A participant that was involved with the City's top 16
environmental attraction, stated that they had not been contacted by anybody in terms of Green Goal for 2010 (FIFA's official environmental campaign). This indicates a major lack in stakeholder collaboration in terms of knowledge and skill sharing for the `collective' good. The participant indicated that a great opportunity had been missed by the City to use the local environmental expertise to get the City ready in terms of greening the World Cup event. This is a similar statement as the one by a previous participant, who stated that "things are not used or recognised within the City itself". With regard to educating the events tourist market, no information could be sourced from participants. The lack of priority given to the issue of event greening, appears to be in direct contrast to many of the destination's proclaimed strategic priorities and `selling points'. In a strategic 2010 FIFA World Cup stakeholder workshop held in 2005, the shared vision for 2010 included ensuring that the CoT is held up as a true example of Sustainable Development, balancing people, profits and planet. It also concluded that the City should be internationally recognized as a role model of how a city can responsibly leverage the benefits and impacts of a mega event such as the Soccer World Cup. There seems to be a great discrepancy between the level of importance that the environment was given by stakeholders, and what permeated through to the actual event. A final framework for event leveraging In order for a destination to attain the optimum competitive advantage through hosting a mega-event, there are certain fundamental things that have to be in place before the event; a vast scope of initiatives that have to be undertaken during the event; as well as several strategic initiatives that have to be 17
continued after the event. It was therefore found necessary to present the CSFs within a pre- during and post- event framework. Figure 2 presents the final proposed CSFs for leveraging mega-events, based on the factors that have been developed, refined and tested throughout this research study. Figure 2: Framework of critical success factors Findings and discussion of the follow-up stakeholder interviews A follow-up survey was undertaken in 2012 to test the event's perceived contributions up to mid-2012 among public and private sector tourism stakeholders in Tshwane. The individuals were requested to, in retrospect, state whether they agree or disagree with the perceived contributions to various aspects of destination competitiveness, as presented in the Ritchie and Crouch model (2003) (presented in Table 3). The public sector stakeholders strongly agree with all of the perceived positive contributions, accept for one stakeholder being negative about "making information/ research available to destination managers". Even though an economic impact study was commissioned by the Tourism Division, the results of this study could not be made available to the City due to various unforeseen factors. Half of the private sector stakeholders disagree with all of the 18
perceived positive contributions, while three are more positive about human resource development, safety and security in the City, offering an enhanced quality of service/experience to tourists, effective crisis management, as well as greater interdependence between destination stakeholders. Yet, this positive contribution also appears to be short-lived. As one private sector stakeholder indicated: "the only dimensions that changed for a short period of time were the safety aspect and rates. Most our international tour operators cancelled the 2012/2013 tours due to safety and costs". The public sector stakeholders disagree with all of the statements that the event did not make any real benefits to the City, while the private sector stakeholders agree with most of the statements. Some of the private sector stakeholders did however indicate that they, in retrospect, perceive benefits in terms of the availability of finance and venture capital, effective visitor management, as well as a culture of resource stewardship. In the same breath, another private sector stakeholder stated that tourism in general is perceived to not be optimally stimulated, given the fact that several flagship attractions are still being neglected when it comes to maintenance and upgrading (private sector stakeholder). Stakeholders were also requested to comment on any other positive legacies not mentioned in 2010, as well as any areas in which the perceived/expected benefits did not materialise. A public sector stakeholder stated that the City of Tshwane did exceptionally well during the 2010 event and that the event owner, FIFA, "commended [the City] for being the best in the organisation of its Park and Ride areas". The private sector stakeholders mentioned the 19
improvements to infrastructure, such as the new high-speed train (GAUTRAIN) and improved highways, as well as some of the clean-up, beautification and city signage projects that still present visible benefits. In terms of tourism strategy development and stakeholder relations, the private sector stakeholders felt that there had been a spirit of teamwork amongst tourism role players in the run-up and during the World Cup, but that none of this momentum was maintained after the event. One private sector stakeholder that hosted a competing team indicated that they were never contacted or consulted by CoT with regards to the 2010 World Cup ("was never visited by anybody from the tourism department of CoT before, during or after the event"). This is also an issue that was raised by various private sector stakeholders during the 2010 interviews. Importantly, a process is underway to establish a Convention and Visitor Service Bureau for the City. This initiative replaces the process of establishing an RTO, which gained momentum at the time of the World Cup. The City also launched a new corporate identity on the 27th of March 2012, which will now also be used for tourism marketing purposes (discontinuing the new tourism brand that was adopted just before the event). Where marketing of the City previously resided under the Tourism Division, it will now be done by a newly established Communication, Marketing and Events Department. Even though the City now has an Events Joint Operating Committee that "implements what it learned with the 2010 event" (public sector stakeholder), there is still no support for potential big events that can bring tourists to the City (private sector stakeholder). 20
A factor that had an influence on particularly the accommodation sector was the fact that expectations created by Match, the company responsible for accommodation contacts, were not met. This "left an industry that is suspicious of the possible advantages of mega events". Another private sector stakeholder stated that hotels and guesthouses "that tendered rates of 6 to 8 times the normal rack rates damaged our image" and that many ambitious operators with no experience or knowledge entered the scene with only one objective - to make money. Conclusion After exploring the current issues and trends in destination competitiveness literature, it became apparent that mega-events (as part of a wider portfolio of events offerings) has a definite place within the models of destination competitiveness. Stakeholder perspectives from the case study initially indicated a perceived positive contribution to various components, including marketing; branding and imaging; destination organisation; and the creation of facilitating resources. In addition stakeholders indicated a perceived positive contribution to aspects such as interdependence within the tourism industry; formulating a vision for the destination; undertaking important tasks such as auditing and research; as well as developing strategies for crisis management. Importantly, it also appeared to have the potential to strengthen political will for the benefit of tourism, as well as to generate renewed thinking around destination policy and development strategies. Two years after the event, many of the expected benefits appear to have not materialised or to have only been short-lived. Public sector stakeholders are more positive 21
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Table 1:
Summary of the literature on destination competitiveness
Destination marketing
The role of destination branding in achieving competitiveness. The importance of seeing the as brand part of the destination's `competitive identity'(Handbook on Tourism Destination Branding, 2009:xxiv). The importance of using information and communication technology to promote destination competitiveness. The role of distribution channels (specifically tour operators), SMME's and Human Resource Development in managing a destination's competitiveness. The role of local food in destination marketing and competitiveness. A destination's competitiveness should be managed according to and by means of its lifecycle. The influence of price (elasticity and hedonic pricing) on the competitiveness of destinations that offer package holidays. A study of the price competitiveness of destinations by developing indices of international price competitiveness and comparing destinations on the basis of travel versus ground costs. Using an existing destination image to build on its competitive advantage, in the absence of meaningful comparative advantages.
Iordache, Cebuc and Panoiu (2009); Balaure, Veghes and Balan (2009); Seymour (2007) Cetinkaya (2009) Seymour (2009) Du Rand (2006) Butler (2006) Mangion, Durbarry and Sinclair (2005); Dwyer, Forsyth and Rao (2000) Hsu, Wolfe and Kang (2004)
Tourist experiences
The competitiveness of destinations based on their attractiveness as perceived by visitors (individual visitors' well-being). Destinations have to fulfil the new experience seeking tourist's need for co-creation to remain competitive. Service delivery and satisfactory to remain competitive.
Cracolici and Nijkamp (2008) De Jager (2009) Poon (2003:139140)
Leadership and Management
The role and ability of DMOs to determine the
Bornhorst, Ritchie
success of a destination.
and Sheehan
(2009); Presenza,
Sheehan, Ritchie
Developing a system to measure excellence in
Pierret (2008)
Competitiveness of destinations based on their
Cracolici, Nijkamp &
efficiency (measured as their ability to transform
Rietveld (2008)
inputs (tourism resources) into outputs (tourist flow)).
(Table continues on the next page)
Table 1: Summary of the literature on destination competitiveness
The strategic and changing role of destination
Buhalis (2000)
marketing and management in the quest for
destination competitiveness.
Successfully managing the competitiveness of a
destination through entrepreneurial and visionary (2000)
leadership and by testing and adapting to the
market over time.
The progress in destinations' tourism policy from Fayos-Sola (1996)
promotion to product development to the goal of
maintaining competitiveness.
Tourism supply side
A destination's competitiveness is influenced by the internal and relational capabilities of its attributes ­ taking a supply chain management approach to managing competitiveness. Addressed the need to give consideration to determinants specifically related to generic business factors and destination attractiveness (attractors). The resources and capabilities of a destination will determine its competitiveness in terms of a specific type of tourism. The management of a destination's products to influence traveller perceptions of the destination's competitiveness. The practice of Integrated Quality Management as a means to achieve competitiveness.
Rodrнguez-Dнaz and Espino-Rodrнguez (2008) Enright and Newton (2005); Enright and Newton (2004) Meliбn-Gonzбlez and Garcнa-Falcуn (2003) Murphy, Pritchard and Smith (2000) Go and Govers (2000)
Environmental issues
Determining the dual effect of the overall environmental management structure (from both public and private sector perspective) on the competitiveness of the tourism industry at naturebased tourism destinations). The importance of taking an environmental approach toward destination competitiveness.
Huybers and Bennett (2003) Mihalic (2000)
Table 2:
Apparent CSFs to leverage mega-events for destination competitiveness (including literature referenced)
- Visionary leadership that has a long-term focus on event legacy and the destination's competitive identity and positioning. - An integrated event tourism strategy, which is based on national tourism policy, and aims to build a balanced events portfolio for the destination as a whole. Literature referenced: Anholt (in UNWTO, 2009); Brown, Jago, Chalip and Mules (2010); Byeon, Carr and Hall (2009); Canadian Tourism Commission (n.d.:2); Chalip (2005); Clark (2008); Crowther (2010); Desai and Vahed (2009); Getz (2008); Hede (2007); Moscardo (2008); O'Brien (2006); O'Toole (2010); Preuss (2007); Singh and Hu (2008); Smith (2010); Smith (2009); Stokes (2006); Stokes (2008); Swart and Bob (2004); Weed (2003); Whitford (2009). CLARIFYING THE BROADER STAKEHOLDER ROLES AND RELATIONSHIPS - Identify the key event stakeholders and their roles in the delivery of an event (the DMO; event organiser; government and political groups; industry members; events tourist market; host community; investors; allies and collaborators). - Define the DMO's role in coordinating the event-destination stakeholder linkages. - Follow a networking approach. - Understand and give consideration to stakeholder interests. Literature referenced: Berridge and Quick (2010); Bornhorst, Ritchie and Sheehan (2009); Brannas and Nordstrom (2006); Brown et al.(2010); Celuch and Davidson (2009); Chalip (2000); Chalip (2005); Chalip and McGuirty (2004); Cornelissen (2007); Desai and Vahed (2010); Foley, McPherson and McGillivray (2009); Getz and Fairley (2004); Getz, Andersson & Larson (2007); Goslin, Grundling and Steynberg (2004); Hede (2007); Hede (2005); Hogland and Sundberg (2008); Jцrgen (2009); O'Brien (2006); O'Toole (2010); Parent and Deephouse (2007); Presenza, Sheehan and Ritchie (2005); Sadd (2009); Singh and Hu (2008); Smith (2005); Smith (2009); Smith (2010); Steyn (2007); Stokes (2006); Stokes (2008); Swart (2010); Tassiopoulos (2010); Waitt (2003); Wanklin (2010a); Wanklin (2010b); Wanklin (2010c).
- Establish a comprehensive resource database to avoid oversupply and to inform the marketing strategy. - Identify the resources needed to ensure event specialness. - Ensure quality of infrastructure and event-related resources. - Promote service delivery through human resource development that considers existing and temporary human knowledge. - Manage the event supply value chain to ensure satisfactory experience links.
(Table continues on the next page)
Table 2:
Apparent CSFs to leverage mega-events for destination competitiveness (including literature referenced) (continued)
Literature referenced: Bob, Swart and Cornelissen (2008); Celuch and Davidson (2009); Getz, Andersson and Larson (2007); Jцrgen (2009); Ritchie and Crouch (2003); Rodrнguez-Dнaz and Espino-Rodrнguez (2008); Sadd (2009); Singh and Hu (2008); Swart (2010). ENSURING AN EVENT MARKETING STRATEGY THAT IS ALIGNED WITH THE OVERALL DESTINATION MARKETING STRATEGY - Establish a single entity responsible for all destination communication. - Effectively co-brand with the event brand and sponsor brands; aligned with the umbrella destination brand. - Creatively manage event-related restrictions related to marketing and set necessary Cooperative Agreements in place. - Develop appropriate pre-, during- and post-event marketing and communication campaigns. - Develop separate, but aligned campaigns for the different event tourist markets, based on knowledge of the event experience. - Put measures in place to counter or address possible displacement of the regular tourist market. - Develop separate but aligned campaigns for the different stakeholder groups (including locals; industry members; the accredited and nonaccredited media; as well as non-tourists). - Make use of the latest ICT for distribution and communication. - Communicate event-related developments that can enhance the destination image (including aspects related to event technology and safety). - Manage pricing to enhance the destination's value proposition. - Product bundling throughout the wider destination in cooperation with tourism and non-tourism industry stakeholders. Literature referenced: Barker, Page and Meyer (2003); Brown et al.(2010); Carmouche, Shukla and Anthonisz (2010); Chalip and Costa (2005); Chalip and McGuirty (2004); Chalip, Green and Hill (2003); Constantinides and Fountain (2008); Du Plessis and Maennig (n.d.); Getz and Fairley (2004); Getz (2008); Goslin et al. (2004); Jones (2001); Li and Petrick (2008); Manzenreiter and Horne (2002); Miah and Garcia (2006); Nauright (2004); Paraskevas (2009); Sadd (2009); Schmallegger and Carson (2008); Shoval (2002); Singh and Hu (2008); Smith (2009); Smith (2010); Steyn (2007); UNWTO (2009); Whitford (2009). (Table continues on the next page)
Table 2: Apparent CSFs to leverage mega-events for destination competitiveness (including literature referenced) (continued) CONCERN FOR AND PRO-ACTIVELY ADDRESSING ENVIRONMENTAL ISSUES - Guide the industry and encourage green practices through various methods. - Collaborate with the relevant supporting stakeholders (government departments, public agencies). - Educate the events tourists market. - Ensure sustainability of the DMO's own marketing practices. Literature referenced: Association of Event Organisers (n.d.); Ahmed, Moodley and Sookrajh (2008); Bob (2010); Chernuschenko (2009); Hede (2007); Huggins (2003); ICLEI (2009a); ICLEI (2009b); IOC (2010a); IOC (2010b); IOC (2009); Otto and Heath (2009); Sahler (2007); UNEP (2009); UNEP (2010). 37
Disagree Strongly Disagree Agre e Agre e Strongly
Table 3: Follow-up survey to test the event's perceived contributions in 2012 POSITIVE CONTRIBUTION TO COMPETITIVENESS Creating facilitating resources to support tourism Improved organisation of tourism within the CoT Improved marketing of the CoT as a destination Enhanced quality of service/experience offered to tourists Making information/research available to destination managers Human resource development More effective crisis management Establishing a shared vision for the destination Clarifying the destination's positioning/branding Greater development of the City as a tourism destination Getting an auditing system in place to support planning Improved safety and security within the City Greater interdependence between destination stakeholders Increased awareness of and improved image of the City as destination NO REAL BENEFIT TO THE CITY'S COMPETITIVENESS Availability of finance and venture capital Effective visitor management A culture of resource stewardship Defining the destination's philosophy/values within policy Systems to conduct competitive/comparative analysis Systems to monitor and evaluate performance 38
Disagree Strongly Disagree Agre e Agre e Strongly

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