Title page

TABLE OF CONTENTS
1 INTRODUCTION.......................................................................................3
2. STRATEGIC PLANNING...........................................................................4
2.1 Definition and goals of strategic planning:............................................4
2.2 Tourism Planning Process.....................................................................5
2.3 Barriers to Tourism planning development...........................................5
2.4 Strategic Tourism Planning Process......................................................6
2.5 Sustainable Tourism.............................................................................9
2.6 Importance of sustainable tourism.....................................................10
2.7 Importance of Sustainable Tourism in Spain and the Bahamas...........11

3. COMPARISON BETWEEN STRATEGIC PLANNING IN THE BAHAMAS AND

SPAIN:.....................................................................................................12
3.1 Tourism Planning in Spain:.................................................................12
3.2 Tourism Planning in the Bahamas:......................................................14
4. CONCLUSION AND RECOMMENDATIONS:..............................................16
REFERENCES.............................................................................................17

1. Introduction
Tourism has always been a great pleasure to people all around the world. According
to Mathieson and Wall (1982), tourism is a temporary movement of people out of
their regular destinations. It also covers their actions while staying at the
destination. Also the facilities which are installed to assist them also fall under the
category of tourism. Tourism is the relationship that is created between tourists,
hosts, the suppliers and the government due to the actions relating to attracting
the tourist (Macintosh and Goeldner, 1986). In the words of World Tourism
Organization (UNWTO, 1995) Tourism means
travelling to destinations beside ones regular destinations for twenty-four hours
but not to one year for the purpose of business, travel and other intentions.
Tourism has a huge potential too. Tourism adds up almost 11% of the world GDP
(WTTC, 2011). It has the capability to enhance economic, social and political
growth. In many countries, the growth in infrastructure has been possible due to
the advancement of tourism. United Nations World Tourism Organization (UNWTO)
has affirmed that in 2009 alone, almost $852 Billion has been earned as revenue
through tourism all around the world. The industry employs 1 in every 15 persons
either directly or indirectly (UNWTO, 2010).
Such a crucial industry for the world economy must be well maintained. The
sustainability and growth of tourism depends on the strategic planning and policies.
But in most of the cases, no effective policies are created or implemented for the
maintenance of the industry. Even if there exists policies in different regions, they
are often not sustainable and differ from each other. To ensure the perfect growth
and sustainability of environment, United Nations World Tourism Organization is
working (UNWTO, 1995). For the comparison, two countries like Spain and The
Bahamas has been chosen. The report tries to provide an insight about strategic
planning and the overall strategic planning process and its impact on the society. It
also provides an overview of sustainable tourism approaches, its benefits and the
comparison between the effects of strategic tourism planning between the two
selected countries, Spain and the Bahamas.
3

2. Strategic Planning
2.1 Definition and goals of strategic planning
Many authors have defined planning process in different perceptions. However, they
all point to one single intention, the achievement of a set of goals. According to
Dror (1973), planning is determining a set of decision and action process for future
which will assist in achievement of a set of goals. According to Hall (2000), Planning
means making policies and decisions regarding all the aspects of the organizations
future operations and activities. Integrating all the operations makes the planning
more realistic and appropriate than making decisions individually.
However, prioritizing the different issues of the business and organization is equally
important (Campbell et.al, 2002). This is where Strategic planning comes forward.
Veal (2002) argued that strategic planning is the initial and most important aspect
for an organization to achieve its short term and long term goals. According to him,
strategic planning is the strategy to ensure that more emphasis is given to acquire
long term and medium term goals of the organization over shorter term goals.
Like any other industry, tourism industry also needs strategic planning and
determination of long-term, medium-term and short-term goals to ensure the
growth and prosperity of the industry worldwide. The importance is increased due
to the benefits reaped by different countries around the world. And due to its
importance in employment, GDP growth, revenue and foreign currency generation,
the continuous success of the industry is intensified. Without perfect planning such
a potential industry might go astray. According to Murphy (1991), the main
objective of strategic tourism planning is to make changes in the policies and
strategies of tourism through which social, cultural, environmental and economic
welfares towards the society becomes easy. The objectives are only achieved by
maintaining the balance among the operations and plans.
At this matter, Cooper et al (2008) stated that in order to ensure the positive
growth of the tourism development planning, all the parties of a certain society
such as public, private and local communities must work together.

2.2 Tourism Planning Process

The tourism planning process ensures growth and sustainability of tourism
development in a country. Successful planning and perfect coordination among the
communities and both public and private sectors of a country ensures the
sustainability of development of tourism in a country or region. The tourism
development and planning process, the barriers and purposes of the planning
process are explained below.
2.3 Barriers to Tourism planning development
Although tourism planning is a must for the development and advancement of
tourism, often many tourism authorities do not plan well enough. There a few
barriers which hinder the development of tourism. These barriers pose threat to the
overall tourism industry in a specific region. Successful planning helps to eradicate
these barriers to development. The main barriers which prevent the development of
tourism are provided below:
Controversies regarding the principles of tourism
High cost of implementation
Complexities of ownership in tourism industries
Bureaucracy regarding the government initiatives
Uncertainty regarding the size and large amount of parties involved
Seasonality in the business
High turnover of ownership
These barriers are explained in the next page.
In most of the countries, there lay controversies regarding the principles of tourism.
Since the principles of tourism are abstract in manner, there are many schools of
experts who have pointed out different principles. Some of them often contradict
with each other. Since there is no single and uniformed set of principles and
approaches, the contradictions often hinder proper development.
The proper planning of tourism needs good infrastructural support in the country.
And it is often expensive. The high cost of implementation often delays the
development and planning process.
There is often high turnover of ownership in this sector. Also there lay complexities
regarding the ownership of the organizations working in the industry. As the
complexities increase, the development process gets hampered. The more times
the ownership turns over, the actions of the individual organizations changes. So
5

the previous planning is often inactive and unsuccessful. The time lags hamper the
overall development.
Cooper et al (2008) have opined that proper development of tourism can only be
achieved when all the related parties in the society co-ordinate and co-operate.
These parties involve public sector, private sector and both the local and
international community. The co-ordination of all these parties is not easy. And they
often come at a price of bureaucracy. The initiatives of the government are a must
for this industry. The involvement of government eases the functioning of the plan.
But at the same time, bureaucracy increases. Thus it hinders development.
There are often a large number of parties involved in the planning and
implementation process. Also an important consideration is the seasonality of the
industry. The uncertainty of the actual size of the parties and industry obstructs
development. The uncertainty of the seasonality and limit of future assumptions
limit the success of the plan causing a probable shift in the actual planning which
increases loss of time, money and labor.
2.4 Strategic Tourism Planning Process
The strategic tourism planning has a few basic processes. These processes are
followed through 7 stages (Cooper, 2005). The steps of tourism planning are:
Analysis of background
Analysis and research
Synthesis and visioning
Objective determination and strategy determination
Development of plan
Implementation and monitoring of the plan
Reviewing the plan and changing unsuccessful strategies
The first step includes background analysis. This step includes identifying the need
for a plan and policies. The need of a plan might emerge from the changing need of
customers, government, the organization or the community as a whole. The
changing circumstances might demand to create or change a new or existing plan.
Also, crisis and emergencies might also require the authorities to formulate and
implement a plan or policy (Hall and McArthur, 1998; Hall, 2000).
The second step calls for a detailed research and analyses on the basis of the need.
Every plan needs data for success analysis. At this step of the cycle, data has to be
6

collected through primary or secondary data collection tools. The data analysis has
four major parts; Resource analysis, Market analysis, Activity analysis and
Competitor analysis. At first, the authority must determine the existing and
probable availability of resources. These resources will be used to formulate the
plan. So correct assumptions of the availability is a must for the success of the
plan.

Next the market analysis helps to determine the existing tourism market,

behavior and attitude of the tourists, their need and satisfactions etc. The analysis
also helps to get a clear idea of the future demand by the potential customers and
helps to fulfill them. Thirdly, the activity analysis helps to determine the present
activities of the parties among the industry. Also it is possible to determine the
activities necessary to formulate and the lacking of activities which are essential for
customer satisfaction. And lastly, competitor analysis creates an idea of the
competitors among and outside the industry and gives a competitive edge to the
user of the data.
The third step is called synthesis and visioning. These steps include two basic
elements namely, position statement and vision statement. The position statements
describe

the

present

situation

of

the

industry, the

development

process,

organizations working in the industry, competitors, customer awareness etc. This

builds the base of the development by providing realistic data on the present and
existing situation of the industry. The vision statements reflect the expectation of
the parties. They describe the expected situation of the overall industry and each of
its associates within a predetermined period of time.
Next step is called objective determination and strategy determination. At this step,
the planning objectives, goals and strategies are considered and identified. Without
specific and predetermined objective or goals, no plan can succeed. According to
Knowles et al. (2001), the goals must be simple to understand and achievable. No
unrealistic and impossible goals should be identified. If all the goals are understood
and valued equally by the government, organizations and other related parties only
then can the plan be successful (Murphy 1991, Cooper 2005). After determining the
goals, the next part is to decide probable alternatives on how to attain those goals.
Alternative strategies must be identified with the adversities in mind. This will help
to alter any decision on the occurrence of an undesirable event.
7

On the basis of the determined goals, objectives and decided possible strategies to
acquire the goals, plan and policy are developed. The plans and policies are usually
selected from a set of alternatives. The plans which seem to be most potential to
acquire the objectives are usually selected. But furthermore, the costs and benefits
associated with the plans are considered. If a plan is both potential in achieving the
target, provides most benefit and needs the lowest possible cost and labor to
implement, the plan(s) is selected (Cooper , 2005).
Following the development of plan, the implementation stage comes. In this stage,
the plans selected are implemented. The resources are put into actions and
constant follow-ups are done to identify any problems in implementation. By the
time the implementation stage is reached, all the legal and regulatory frameworks
start working in the process. During this phase, many confusions and imbalances
are met. These are addressed according to the resources available and possible
business environmental situations (Cooper, 2005).
The final stage or phase of the process is supervision and re-evaluation. In the first
five phases of the development process, the ideas and plans had been theoretical.
In the implementation stage, the theory meets reality. So in the implementation
stage, there lie many deviations from the actual plan. The supervision and reevaluation stage works to reduce these deviations. Often the plans deviate due to
lack of addressing important aspects of the plan. These problems can be easily
found out in the implementation stage and changed accordingly in the following
stage. Also, the plans might deviate due to undesirable events such as breakout of
epidemics, instable political condition of the country, terrorist attacks or even at the
simplest situation, bad weather condition. If the plans are not changed according to
the changed condition, it is bound to fail. In the implementation phase, the actual
impacts and usefulness of the plan are measured and evaluated. If there needs to
be any changes, they are done at this stage (Cooper, 2005).
Planning leads the tourism to success. But often even with great plans industries
fail and suffer. The main reason is the lack of implementation of plan and lack of
realistic views in the plan. According to World Tourism Organization (1980), a

survey of more than 1600 tourism plans showed that in almost 33% of the cases
potential plans were considered but not implemented (Wilkinson, 1997). And in the
words of Pearce (1989), Tourism planning can lead the industry and society to a
greater success but only if their implementations are observed properly. So,
adequate flexibility should be ensured in the plan to allow any emergency
modifications (Cooper, 2005).
2.5 Sustainable Tourism:
According to UNWTO (2005), Sustainable tourism is the tourism which considers
and realizes the impacts of tourism and activities on the economic, social, cultural
and environmental values and also fulfills the needs of all the parties involved.
According to UNESCO (2011), Sustainable tourism refers to tourism that values and
takes into account all the parties involved, the sustainability of the nature and the
host countrys cultural heritage as well. The first formal definition of sustainable
tourism was provided in Brundtland Report (World Commission on Environment and
Development, 1987), and later was intensified in United Nations Conference on The
Environment and Development (CNUMAD) in Rio de Janeiro conference in 1992
(Torres-Delgado, 2010).
Bell and Morse (2003) have opined that tourism sustainability in a specific region
can be achieved through following a few steps. At first, the historical tend data
should be analyzed; second, the data should be compared to the recent data.
Thirdly, some references on the basis of the principles should be suggested. And
lastly, attention must be given to the possible best and worst case scenario and
sensitivity analysis.
Although many experts believe that a theoretical framework for evaluation of the
sustainability must be created (Castellani & Sala, 2010;Crabtree & Bayeld, 1998;
European Commission, 2003; Gahin, Veleva, & Hart, 2003; Smeets &Weterings,
1999), it is definite that the sustainability approach largely depends on the users
positive attitude (Hunter, 1997; Naredo, 2004).

According to UNWTO (2005), sustainable tourism approach helps to sustain and

distribute the benefits to all the stakeholders. To ensure sustainability, sustainable
tourism approach should therefor:

Make appropriate use of the natural resources.

Consider the culture and heritage of the host country.
Establish and maintain an approach to distribute

the

benefit

and

employment opportunities to the dwellers of the host region.

2.6 Importance of sustainable tourism:
The sustainable tourism is important for every party involved in the overall tourism
process. Its importance has been addressed by World travel and tourism council.

Economic Benefits:

Tourism is a prime source of earning for many countries. Almost all countries
earn 38% of their foreign exchange revenues by better export of tourism

goods and services (WTO, 2012).

Sustainable tourism contributes
contributions

can

be

to

differentiated

governmental
into

direct

and

revenue.

These

indirect.

Direct

contributions involve travel and eco-tax. Whereas indirect ones involve taxes

earned by selling the goods and services.

Sustainable tourism contributes in employment generation. According to WTO
(2012), 7% of the world population earns their living though employment
from tourism and sustainable tourism enhances the benefits earned.

Social and other Benefits:

Sustainable tourism influence better living facilities to the local community by

enhancing infrastructural investment and development of other modern

urban facilities.
Local economies are also influenced by tourism. The tourists often buy goods
and services form the local vendors. Thus the contribution, although not
easily measurable is multiplied in the local area over and over again. A study

10

of WTTC mentioned that it almost contributes equal to 100% direct

expenditure (http://www.biodiversity.ru).
Through tourism revenues, the authority can invest in nature protection.
Thus it increases direct investment and better management of natural
resources.

2.7 Importance of Sustainable Tourism in Spain and the Bahamas:

Sustainable tourism is obviously necessary for the development of tourism in both
the countries. 10% of Spain and almost 60% of Bahamass GDP relies on tourism.
So, it has a great influence on the social, economic, cultural and above all
infrastructural wellbeing of these two countries. If all these factors are not brought
under consideration, it will have a negative impact on the overall conditions of the
countries. Both of the countries understand the importance and have taken
adequate steps to adopt sustainability in tourism. Spain has formulated many plans
to ensure sustainable development. Of them The Spanish Strategy for Sustainable
Development (Spanish Ministry for the Environment, 2003) and Plan for Spanish
Tourism 2020 Horizon and Spanish Tourism Plan 20082012 by Spanish Ministry of
Industry, Tourism and Commerce are the prominent and effective ones.
Compared to Spain, the Bahamas has also adopted and accepted sustainability
approach very recently. The growing concern for environment protection has turned
them to a sustainable approach (Bahamas National Trust, 2013). Both the countrys
approaches are appreciable and if continued, will surely benefit them by providing
better environmental efficiency, greater tourist attraction, and greater revenues and
above all better social and infrastructural development.

3. Comparison between Strategic planning in The Bahamas and Spain:

This Section of the report attempts to compare the tourism of two countries, The
Bahamas and Spain. These two countries are different in tourism in many aspects.
While The Bahamas is famous for its mass marketing and artificial attractions;
Spain is best known for its natural beauty, national heritage, cultures, festivals and
the historical architecture. As the tourism attractions differ in the regions, so does

11

the tourism marketing and planning approach of their authorities. Their planning
approaches are explained below:
3.1 Tourism Planning in Spain:
The tremendous rise of tourism in Spain began in the early 1990s due to
diversification of supply and spatial dispersion process. The natural beauty and
cultural heritage of Spain accelerated the growth of tourism in the country (Vera
and Marchena, 1998).
Since the 1960s tourism boom in Spain, both the demand and supply of hospitality
industry has increased (Hall, 1994). The need for a planned tourism development
has been rising since then. But for a long time there had been no organized plan for
tourism development in Spain (Bote, 1994). Until the early 1990s, there had been
little effort given to provide a formalized and centralized planning policy.
The first few plans for development of tourism in Spain were provided between the
years 1964 to 1975. Between these times, three 4-year plans were formulated in
Spain. The aim was to make tourism industry of Spain a more productive and
effective contributor in the national economy (Richardson, 1976). But the policies
were more centralized with little space for individual regional development. It
created regional imbalance among the potential tourism regions of the country
(Tamames, 1978). The policies imposed excessive emphasis on promotion and little
resources were allocated for regional infrastructural development (Bote and
Marchena, 1996; Figuerola, 1999). The plans lacked proper town planning and land
development and did not have enough infrastructural assistance (De Teran, 1982).
After the oil crisis in 1973, need for a decentralized policy approach increased. The
need for land integration policy along with tourism policy was realized. Two types of
regional and local plans were introduced by the tourist administration. One for the
inland areas where there were fewer resources, another for coastal naturally
enriched areas. But the policy was hindered by recession (Bote and Marchena,
1996). The idea was to decentralize the planning system according to the need of
the regions.

12

In 1982, a new policy was initiated which would reduce the authority of the central
tourism planning body and emphasize equally on both public and private
investment in tourism (Bote and Marchena, 1996; Figuerola, 1993). Also policies
were initiated to emphasize on specialized tourism sectors like snow tourism, golf
tourism etc (Costa and Jime nez, 1999). At this time the municipal authorities also
took initiatives to sustain

effective town planning (Ezquiaga, 1994). Due to

reduction of growth in tourism, State Tourism Administration of Spain introduced

White Book of Spanish Tourism where new and improved policies were proposed
(Secretara

General

de

Turismo,

1990).

Later

in

1993

new

Master

Competitiveness Plan for Spanish Tourism was introduced nationally (Ministerio de

Comercio y Turismo, 1994).
After 1994, sovereign laws have been formulized and implemented in the country
according to different regions. The authority became more conscious about the
environmental issues and some even started to impose environmental taxes on the
tourists. But in recent years Spain lost its competitiveness (WEF, 2009 & 2011). The
tourism industry of Spain is experiencing their worst time in the history and is going
to face a long term change in the tourism cycle of the country (Butler, 2011). As a
result Spain has brought many changes in their recent policies. It has decided to
increase its tourism budget for a competitive environment like many other countries
in the world (WTO, 2012). It is trying to utilize its excellent weather to attract
health tourism (NITP, 2012). Also the rising popularity of eco-tourism is attracting
the authority. Also the authority realizes the necessity of use of ICT and technology
in modern tourism. That is why in the Lisbon Treaty and Madrid Declaration
Spain and EU declared tourism as a top priority sector and created an extensive
allowance in the framework of European Unions budget 2014-2020 (NITP, 2012).
Although the tourism strategies are weakening in the present, it must be noted that
its effective planning has provided it success. Tourism in Spain accounts for 10% of
the countrys total GDP and employs 11% of the total labor force (NITP, 2012). In
2007, Spain became the second most visited country. Spains potential in tourism
has satisfied United Nations to open UNWTOs headquarters there. UNWTO

13

confirmed in 2010 that their tourism GDP was US$53 billion which is second highest
in the world (UNWTO, 2012).

3.2 Tourism Planning in the Bahamas

In comparison to Spain, the Bahamas had organized their tourism planning early
enough. In the early 1970s the tourism authority in the Bahamas had formulated a
plan that would develop their tourism. The main reason was that the Bahamians
wanted to build their economy on tourism. This is the reason that 60% of their total
GDP is based on tourism and it employs more than 50% of their workforce ( The
World Factbook, 2011; Encyclopedia of the Nations, 2010).
Bahamian economy is largely dependent on tourism and offshore banking services.
Although the Bahamas had formulated a tourism policy in 1970s, their plans and
strategies were ambiguous and thus led them to jeopardy. There was extreme
investment in tourism. This had led to excessive hotel and casino establishment
(Ramsaran, 1979; Wilkinson, 1997).
Although their economy is largely dependent on export and services of tourism,
Bahamians did not formulate a perfect plan. Their initial plan was flawed because it
did not have specific determined objectives or strategies. In 1981, the Bahamians
first brought tourism plan under consideration. Also, they did not take under
consideration of the possible global recession. Since the countrys economy lies on
the foreign customers (mostly US and Canadian residents), the global recession and
terrorist attack in USA had reduced their revenues and profit to a great instance.
Their main assumption regarding the demand of tourism in Bahamas was that the
warm Caribbean weather will attract the tourists and it would emerge as a summer
tourism market. Needless to say, none of the assumption could stand (Dames &
Moore, 1981; Wilkinson, 1997).
In 1984, the tourism ministry of the Bahamas formulated a plan where emphasis
was given on attracting customers. This idea led them to believe that their country
is going to be a prime spot for tourism. This false idea increased investment in hotel
14

and infrastructure and reduced agricultural activity. The forecasted number of

tourists still does not go to the Bahamas. Thus the overestimation has only
increased cost and liability (Wilkinson, 1997). The overestimation of customer
demand has also increased their marketing cost. Their marginal marketing cost
exceeded the marginal benefit gained from it. So, the marketing development plan
has failed (Wilkinson, 1997). The problem has intensified due to the rigidness of the
government and the lack of public-private proprietorship and policy formulation.
Over optimism and unplanned infrastructural development resulted in such a poor
condition of the tourism development in the Bahamas. According to Wilkinson
(1997), Bahamas need to rethink their estimates and bring about positive changes
in the plan. Also they must balance public and private contribution in the sector.
Only then can they succeed, otherwise they will continue to suffer loss.

4. CONCLUSION AND RECOMMENDATIONS

Tourism planning is an important aspect for the development of tourism. The main
purpose of tourism planning is to predict the uncertain future and act accordingly
(Gunn, 2002). Although it helps in tourism development, if planning is not done
accurately and gives a false idea, the result might be hazardous. So, it is necessary
that all the considerations are considered while formulating the plan.
It must also be told, that in order to achieve the goals and objectives, only planning
is not enough. Planning and proper implementation helps the users to cross all the
uncertainties and adversities. It must also be born in mind that every group of
people in the society must work together to achieve the objectives and reach a
desired target (Cooper et al, 2008). Social, political, ecological, cultural and
economic all factors are affected through tourism. All these factors must be
considered while planning. Also, it must be said that there is no single plan for all
the scenarios and circumstances. So, policies should have adequate flexibility and
alternative strategies must be considered to ensure that no unwanted situation can
hinder the prospect of the industry. The case studies have shown if a plan is
properly addressed and implemented, it can take the country to the peak of

15

success. But if they are not properly addressed, they might as well ruin such an
important industry and its potentials.

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21