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A CONCEPTUAL MODEL OF TOURISM DESTINATION ...

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Political violence has affected tourism the world over, for example Egypt, Israel, and<br />

Peru where political instability adversely affected tourist perceptions of these<br />

destinations. Safety concerns causes a decline in tourist arrivals, reduce tourists<br />

expenditures and can cause a downturn in local travel. The safety and security of a<br />

destination therefore plays a role in determining the level of attractiveness.<br />

The competitive advantage and collaborative advantage paradigms have dominated<br />

management and marketing theory, research and practice as alternatives. The<br />

competitive advantage enables a firm to compete and perform better than competition<br />

(Day and Wensley 1988; Porter 1985). The alternative model, the<br />

collaborative/cooperative model enables firms to enhance their performance through<br />

strategic collaboration (Contractor and Lorange 1988; Neilsen 1987).<br />

Various actions have been debated about how firms can compete and corresponding<br />

strategies put forward. For instance product/service innovations, entry barriers,<br />

marketing and promotion campaigns and competitive rivalry among others, have been<br />

identified as drivers of competition in an industry. Early economists suggested that<br />

competition in an industry is ruinous (Jones 1920) especially if it is solely based on<br />

price. Extending this view, competition within a destination can be ruinous if it is<br />

solely based on price-cutting.<br />

The advantages that cooperative agreements provide for organisations have been well<br />

documented. Close relationships with suppliers and customers can provide firms with<br />

a very important source of innovation, costs reduction (Hagen and Soonkyoo 1998;<br />

Ring and Van de ven 1992). Lado, Boyd and Hanlon (1997) suggest that<br />

organisations can enhance their performance through competition and cooperation<br />

simultaneously. They argue that for firms to enhance their competitiveness they need<br />

to “adopt a repertoires of behaviour that support cooperation and trust” (pg 111).<br />

Thus cooperation can enhance the competitiveness of an organisation, for example<br />

Toyota’s cooperation with its suppliers and the cooperation between Ford and Mazda.<br />

In their Syncretic Model, Lado, Boyd and Hanlon (1997) proposed that organisations<br />

could generate long-term performance by simultaneously competing and cooperation.<br />

Striking a balance between competition and cooperation is vital to the performance<br />

and survival of organisations (Jorde and Teece 1989). Firms within a destination need<br />

to cooperate and compete against other destination.<br />

The destination environment is the most important factor in TDCA. The components<br />

of the destination environment can either enhance or destroy the destination. As an<br />

experience product, tourists requires an environment that is safe, with employees that<br />

are customer and service focussed, enhanced by close cooperation by businesses<br />

within the destination. A conducive destination environment is vital for visitors to<br />

enjoy and be satisfied with the tourist experience. This leads us to Propositions 3 and<br />

4:<br />

P3. The destination environment composed of crowding, safety, skilled human<br />

resources and the level of cooperation and competition within the destination.<br />

P4. The environment in which tourist product is experienced, is related to the<br />

attractiveness and competitiveness of destinations.<br />

Communication and Promotion<br />

Branding of destinations enable tourists to identify a destination and differentiate it<br />

from competitive offerings. Destination branding also acts as a cue for the<br />

communication of benefits to the tourist. The brand acts as a shorthand device for<br />

communicating functional and emotional benefits (de Chernatony and McDonald<br />

1998). As such, it can quicken the destination choice decision process. Branding<br />

Conceptual Papers / Marketing Theory Track 642

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