UNIVERSITÀ DELLA SVIZZERA ITALIANA Faculty of Economics and Communication MASTER OF ARTS IN ECONOMICS AND COMMUNICATION International Tourism Master Destination Governance: the case study of a tourism

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UNIVERSITÀ DELLA SVIZZERA ITALIANA Faculty of Economics and Communication MASTER OF ARTS IN ECONOMICS AND COMMUNICATION International Tourism Master Destination Governance: the case study of a tourism destination in Ticino Master Thesis Dissertation Author: Claudia Zuffi Supervisor: Prof. Dr. Pietro Beritelli Second reader: Prof. Siegfried Alberton October 2011 Fate che il vostro spirito avventuroso vi porti sempre ad andare avanti per scoprire il mondo che vi circonda con le sue stranezze e le sue meraviglie. Scoprirlo significherà, per voi, amarlo. (Kahlil Gibran) 2 P a g e Table of contents _Toc List of tables... 5 List of figures... 6 Acronyms... 8 Acknowledgements... 9 Introduction to the research design Research strategy and design Aim and objectives Organization of the chapters Methodology Literature review Case study Chapter 1: Literature review Definitions and concepts Tourism Destination Governance From Government to Governance Destination Governance Destination networks, clusters and partnerships Networks Clusters Partnerships Public-Private Partnerships Destination Management Destination Management Organization of the Third Generation Destination Competitiveness Final Considerations Literature Review main references Chapter 2: Contextualization: The Tourism Industry in Ticino Introduction P a g e 2.2 The Evolution of the Tourism Industry in Ticino, from 1880 to First Phase ( ) Second Phase ( ) Third Phase ( ) Fourth Phase (after 1990) The actual organizational structure The Future strategies The NPR (Nuova Politica Regionale) The new ERS (Enti Regionali di Sviluppo) The revision of the L-Tur New emerging governance models Lugano Bellinzona & Alto Ticino Final considerations Chapter 3: Empirical analysis the case study: the tourism destination Gambarogno Case study choice, motivation, and methodology Domain definition Figure and Facts Evolution of the destination The Pro Gambarogno Association Actual organizational structure Tourism supply and demand Accommodations Natural and cultural products of the destination Natural Resources Cultural Resources SWOT Analysis Workshop results Workshop 1, Magadino the 16 th of May, Workshop 2: Magadino the 16 th June Workshop 3: Magadino the 13 th July P a g e Chapter 4: Results, future research & limitations Results and main findings I. THE BASIC MODEL EXTERNALIZATION II. THE NETWORK MODEL THE COOPERATION WITH THE ERS-LVM III. PUBLIC- PRIVATE PARTNERSHIP MODEL ON A LOCAL LEVEL IV. PUBLIC-PRIVATE PARTNERSHIP ON A REGIONAL LEVEL Main Findings Future research and limitations Limitations Future Research Bibliography Annexes Local Stakeholders Participants of the workshops Online survey results List of tables TABLE 1: SIX AS FRAMEWORK FOR THE ANALYSIS OF TOURISM DESTINATIONS (BUHALIS, 2000) TABLE 2: GOVERNMENT VERSUS GOVERNANCE TABLE 3: BENEFITS OF NETWORKS FOR BUILDING PROFITABLE TOURISM DESTINATIONS TABLE 4: LITERATURE REVIEW MAIN REFERENCES TABLE 5: NUMBER OF ESTABLISHMENTS AND BEDS IN TICINO FROM 1880 TO TABLE 6: SWOT ANALYSIS OF THE ACTUAL TOURISM ORGANIZATION TABLE 7: FUNDAMENTAL STEPS FOR THE TOURISM RELATIONS PROGRAM (NPR) TABLE 8: LEGISLATIVE CHANGE FOR THE INCREASE OF THE OVERNIGHT STAYS TAX TABLE 9: NUMBER OF INFRASTRUCTURES, BEDS, ROOMS, OCCUPATION RATE AND LENGTH OF STAY TABLE 10: TOURISM DEMAND (HOTELS) IN TABLE 11: EVOLUTION OF THE OVERNIGHTS (HOTELS) FROM 2005 TO P a g e TABLE 12: NUMBER OF ESTABLISHMENTS IN TABLE 13: EVOLUTION OF THE OVERNIGHTS IN THE PARA-HOTELLERIE SECTOR BETWEEN TABLE 14: SUMMARY OF THE CASE STUDY - CURRENT SITUATION TABLE 15: PEST ANALYSIS TABLE 16: PLANNING IDEAS PROPOSED IN THE SECOND WORKSHOP List of figures FIGURE 1: CORE ISSUE OF THE THESIS RELATED TO THE THEORETICAL AND PRACTICAL CONSIDERATIONS IN THE DESTINATION FIGURE 2: DESTINATION FROM A STAKEHOLDER S STANDPOINT (RITCHIE AND CROUCH, 2003) FIGURE 3: DESTINATION GOVERNANCE ARCHETYPES (D ANGELLA ET AL, 2010) FIGURE 4: THE MAIN SUCCESS FACTORS OF A GOOD DESTINATION GOVERNANCE FIGURE 5: OPTIMIZING CLUSTER FORMATIONS IN MICRO INDUSTRIES (MICHAEL, 2003) FIGURE 6: WHY DO WE NEED PPP IN TOURISM? FIGURE 7: MOST COMMON PUBLIC AND PRIVATE PARTNERSHIPS MODELS USED IN TOURISM FIGURE 8: DESTINATION MANAGEMENT FUNCTIONS FIGURE 9: EVOLUTION OF THE DESTINATION MANAGEMENT IN THE ALPINE DESTINATIONS FIGURE 10: EVOLUTION OF DESTINATION MANAGEMENT DEFINITIONS FIGURE 11: CROUCH AND RITCHIE CONCEPTUAL MODEL OF DESTINATION COMPETITIVENESS FIGURE 12: EVOLUTION OF THE NUMBER OF OVERNIGHTS IN HOTELS IN TICINO FROM 1975 TO FIGURE 13: REPARTITION OF THE RESPONSABILITIES BETWEEN CDS, ETT AND ETLS FIGURE 14: INTERVENTION AREAS OF THE NPR ( ) FIGURE 15: THE ENTE REGIONALE DI SVILUPPO LOCARNO & VALLEMAGGIA FIGURE 16: NEW FINANCING MODEL FOR THE ETT AND THE ETLS FIGURE 17: NEW ETL BELLINZONA & VALLEYS FIGURE 18: CANTONAL DIVISION THE 4 DESTINATIONS STRATEGY FIGURE 19: DIVISION OF OVERNIGHTS BASED ON SINGLE ETL (2008) P a g e FIGURE 20: RESIDENT POPULATION IN GAMBAROGNO FROM 2000 TO FIGURE 21: POPULATION DIVIDED IN AGE GROUPS (2009) FIGURE 22: MIGRATORY BALANCE - GAMBAROGNO FROM 2000 TO FIGURE 23: TOURISM MOVEMENT FROM 1950 TO FIGURE 24: OVERNIGHTS IN GAMBAROGNO FROM 1950 TO 1970 (SOURCE: ETG) FIGURE 25: OVERNIGHT STAYS BETWEEN 1972 TO 1990 (SOURCE: ETG) FIGURE 26: VALUE CHAIN OF THE DMO GAMBAROGNO FIGURE 27: REPRESENTATION OF THE ACTUAL POSSIBILE COOPERATIONS AND NETWORKS FIGURE 28: FLUCTUATION OF THE OVERNIGHTS IN THE HOTELS BETWEEN 2005 AND FIGURE 29: OVERNIGHTS IN 2009 GAMBAROGNO (SOURCE ETG) FIGURE 30: OVERNIGHTS IN THE PARA-HOTELLERIE STRUCTURES BETWEEN 2005 AND FIGURE 31: MONTHLY DIVISION OF THE OVERNIGHTS IN GAMBAROGNO (2010) FIGURE 32: TOTAL TOURISM MOVEMENT BETWEEN 2005 AND FIGURE 33: BUTLER TOURISM LIFECYCLE MODEL FIGURE 34: HIGHLIGHTS AND TOP EVENTS OF THE DESTINATION (MYSWITZERLAND.COM) FIGURE 35: POSITIONING OF THE TOURISM EXPERIENCE GAMBAROGNO IN THE COMPETITIVE LANDSCAPE OF THE DOMAIN FIGURE 36: SWOT ANALYSIS GAMBAROGNO FIGURE 37: THE TOURISM SITUATION IN GAMBAROGNO SUBJECTIVE PERCEPTIONS FIGURE 38: POSITIVE AND NEGATIVE FACTORS OF GAMBAROGNO FIGURE 39: THE CURRENT SITUATION IN GAMBAROGNO FIGURE 40: HIERARCHY OF THE EXTERNAL FORCES FIGURE 41: HIERARCHY OF THE VALUES FIGURE 42: WARM-UP EXERCISE THE DREAMS FIGURE 43: RESULTS OF THE SURVEY DESTINATION LIFECYCLE AND DESTINATION GOVERNANCE FIGURE 44: EVALUATION OF THE ACTUAL GOVERNANCE MODEL FIGURE 45: PERCEIVED STAKEHOLDERS OF THE FUTURE GOVERNANCE MODEL FIGURE 46: GOVERNANCE STRUCTURE OF HEIDILAND TOURISMUS AG P a g e Acronyms ARS Agenzie di Sviluppo Regionali DFE Dipartimento Finanze e Economia DMO Destination Management Organization CdS Consiglio di Stato ERS Enti Regionali di Sviluppo ETG Ente Turistico Gambarogno ETL Ente Turistico Locale ETLM Ente Turistico Lago Maggiore ETT Ente Turistico Ticinese EU European Union GDP Gross Domestic Product ICT Information and Communication Technology IRE Istituto Ricerche Economiche LIM - Legge federale sull'aiuto agli investimenti nelle regioni montane LPR Legge di applicazione sulla politica regionale L-Tur Legge sul Turismo NPR Nuova Politica Regionale PPP- Public and Private Partnership SME Small Medium Enterprises ST- Switzerland Tourism TI Canton of Ticino TT Ticino Turismo USI Università della Svizzera Italiana WTO World Tourism Organization WTTC World Travel and Tourism Council 8 P a g e Acknowledgements This Master s thesis characterizes the end and achievement of my five years experience at USI. Sometimes it was a challenge, even a race against time, but I enjoyed it. For this master thesis opportunity I am heartily thankful to Prof. Siegfried Alberton, who was able to direct my studies providing valuable advice and guidance. I am grateful to my supervisor, Prof. Dr. Pietro Beritelli, whose help and support enabled me to appreciate this actual topic. I would like to take the chance to thank all those people whose support increased the value of this research. Particular thanks and gratitude go to the Director of Gambarogno Turismo, Daniela Pampuri and to the President Remo Clerici for their constant help and understanding. Furthermore I am heavily thankful to Dr. Igor Franchini, Christian Bordoli and the Vice Director of Ticino Turismo, Charles Barras, for the interesting discussions and meetings. Also, I would like to express my sincere gratitude to all the people who contributed to the realization of this research. A special thank you goes to the fantastic field project group: Olaya, Simona, Ktimene, Olena, and Asta; without you this work would have not been possible! I wish to thank my sister Michela, for her support during this thesis-writing time. You taught me that everything is possible. A special thank goes to Sacha for always being by my side in the choices of my life. Finally I want to express my deepest gratitude to my mum, who has been guiding me along this path, encouraging me, and always giving me freedom to make my own choices. To her I dedicate this thesis. 9 P a g e Introduction to the research design Nowadays many destinations have an increased interest in concepts such as competitiveness and innovation (Nordin & Svesson, 2007). Above all, the classical Destination Management Organizations (DMOs) in community and mature types of destinations need to adjust their activities and organizational models due to increased global competition, and changing markets and needs (Bieger, 1998, as citied in Beritelli, Bieger & Laesser, 2009). New destinations structures are the appropriate response for destinations and tourism regions to meet globalizing tourism markets with increasing marketing costs. This includes the revision of tourism destination boundaries. (Bieger et al., 2009) The question is then how can a tourism destination remain competitive and innovative? And is there a link between the organizational structure and the overall performance? Few researchers have investigated this topic and as stated by the UNWTO, 2010, there is a lack of knowledge about the impact of different forms of governance on the operational performance and the organizational structure of a DMO (Destination Management Organization). Hence, one of the major challenges for tourism destinations is to find and introduce a form of governance that bests fits the internal organization structure and the external forces. Several authors have promoted and investigated the concept of destination governance (Beritelli et al., 2007; Nordin & Svesson, 2007 and Pechlaner & Raich, 2009) but still several questions need to be investigated: how governance is produced, who governs, what roles have the actors and the institutions in the process (Pechlaner, 2009 as cited in Padurean, 2010). To explore some of these questions the thesis is based on an action research approach followed by the author in cooperation with Professor Siegfried Alberton of IRE (Istituto Ricerche Economiche). After a broad literature review and a contextualization chapter, the empirical contribution will be based on a single case study of a small tourism destination in Ticino (Switzerland), which is currently reflecting on the possibility to introduce a new governance model. 10 P a g e Research strategy and design The research strategy and methodology devised and applied throughout the project follows the research question and objectives defined for the study. Research Question 1: According to the elements identified in the literature review, is there an organizational model that could be possibly applied to a particular regional situation like the one of Gambarogno? Aim and objectives The aim of this thesis is to formulate, through a broad literature review, an alternative destination governance model for the tourism destination of Gambarogno. The thesis is structured in a cascade format, from a general theoretical overview to a specific single case study. All the chapters should be consistent with the findings, theories, and strategies investigated in the previous chapters. The debate on new governance models is an actual and debated topic; many tourism destinations are currently reflecting on this issue and proposing new alternative models to the traditional community-based ones. The roles and functions of the small DMO are also under examination in many countries, Switzerland included. Gambarogno as a small-medium destination will be touched by several institutional and legislative changes in following years. Therefore, the final aim is to propose a model consistent with the theoretical findings and the external forces affecting the destination, namely the revision of the L- Tur (2013), the New Regional Politics (NPR), the strategic plan of the Locarno region, and finally the merger of the nine municipalities of Gambarogno already implemented in P a g e Organization of the chapters Based on the research questions, the thesis is elaborated in four chapters to tackle the research objectives; each part is essential to answer the research question: 1.Theoretical analysis 2. Contextualisation - The tourism situation in Ticino 3. Empirical research 4. Results, limitations, & future research I. The Theoretical analysis Chapter one presents a literature review indispensable for the understanding of the context of the research. In this chapter, the following topics will be discussed: tourism destination, governance, destination governance, destination networks, clusters and partnerships, destination management, and destination competitiveness. II. The Contextualisation the tourism situation in Ticino Chapter two introduces the tourism situation in Ticino. The evolution of the tourism sector in the Canton will be investigated, as well as the strategies, the actual organization, the trends, the new legislative change, and the new emerging governance models. III. The empirical research Chapter three deals with the methodology applied to this research: a single case study analysis. The current situation, the evolution and the tourism products of the destination will be described. Furthermore a SWOT analysis, the value chain analysis, and the actual stakeholder relationships will be described. The results of the three workshops will enrich the understanding of the destination. IV. Results and future research Chapter four presents the conclusions, the findings, the limitations of the thesis, and the potential possible directions that can be undertaken for further research. 12 P a g e Methodology In order to answer the research question, a descriptive and exploratory approach will be used. As introduced, the thesis is also based on action research approach. The strength of this method is that investigates deeply the context, through a collective re-thinking process, providing precious information that have been previously not considered. The empirical research presented in the chapter three is based on a single case study of the Swiss destination Gambarogno. When designing a case study, a crucial choice lies between a multiple or single case study. The latter is more indicated in the situation where the author wants to verify the accuracy of a theoretical proposition analyzing a specific situation. The main methods of collecting information were semi-structured in-depth interviews, direct observation, secondary data, and three workshops organized with different stakeholders representing the various interests of the destination. Based on the broad literature review, these are the theories and concepts used for the analysis of the destination Gambarogno: Destination Governance Archetypes (d Angella et. al, 2010) Cooperations, public-private partnerships and clusters, in particular the cooperation PPP model (the example of Velden was particularly interesting). The idea highlighted in the evolution of the destination management in the alpine destinations (Figure 9). All the concepts expressed with the Destination Management of the Third Generation. Literature review The literature review is considered a fundamental step in any research strategy. Table 4 at page 42 summaries the main academic articles used for the following research. Case study The case study is an analysis which, according to Yin (1994), investigates a contemporary phenomenon within its real life context when the boundaries between the phenomenon and the context are not clearly evident. The final aim of a case study is to gain a deeper understanding of a specific case or phenomenon. This research method has several strengths, which are mainly related to the wide range of methods and tools used to gather evidence. In fact, the possibility to use different types of data coming from both quantitative and qualitative analysis is a further 13 P a g e advantage. The employment of multiple sources of evidence (triangulation) allows the researcher to widen the field of investigation and to understand and explore a varied range of issues. The main advantage brought by the triangulation method is that the findings will be evaluated as more accurate, convincing, valid, consistent, and reliable. At the same time, case studies present some limitations and problems, such as the risk of choosing a case that is not representative or the impossibility to generalize the results. Besides this research method requires large amount of time and resources. As described by George and Bennett (2005), a case study follows three main phases: 1. Formulation of objectives, design, and structure of the research 2. Carrying out of each case study that has to match with the design 3. Presentation of the findings As mentioned, a single case study is more designated when the researcher aims at confirming a theoretical proposition by examining a unique specific phenomenon or situation. The single case study may also be chosen when it characterizes a unique or extreme situation. FIGURE 1: CORE ISSUE OF THE THESIS RELATED TO THE THEORETICAL AND PRACTICAL CONSIDERATIONS IN THE DESTINATION Literature review and empirical matters regarding the study of present research Practical and strategic considerations regarding the actual situation in Ticino and Gambarogno Case study Theory recommendation Cooperation between destinations: networks & PPP 3 generation destinations Size of destination Roles and functions New destination governace models Core issue of the thesis New Alternative destination governance model for the tourism destination Gambarogno New roles and functions Practical and political considerations Contextualization: the tourism situation in Ticino Single Case study analysis Future strategies Trends, models, and new theoretical perspectives Future strategies, actual organization, and other considerations 14 P a g e 1. Literature review 1.1 Definitions and concepts This chapter aims at providing the relevant literature review for the research context. This section will introduce the key terms and background for the research conducted in this paper. It will aim to explain the concepts of tourism destination in particular, the notion of governance, and more specifically the concept of destination governance. Furthermore, in order to answer to the research question, the academic literature about destination networks, clusters, and partnerships will be analysed. In conclusion, the literature review chapter will focus on the concepts of destination management and destination competitiveness. 1.2 Tourism Destination It is not easy to provide a unique and delimited definition for the concept of tourism destination. It can therefore be useful to start with the definition given by the UNWTO (2007): Tourism Destination is a physical space in which a tourist spends at least one overnight and could be at any scale, from a whole country, to a region or island, to a town or city to a self-contained center. A Tourism Destination includes all the tourism services, resources and amenities, attractions, facilities and support services/products offered to visitors within their period of stay. (UNWTO, 2007) Bornhorst et al. (2009) argue that within
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