Tourism Policy: Structure, Content, and Process - Tourism: Principles, Practices, Philosophies - page 340

Analytical Phase

The analytical phase of tourism policy development, while perhaps less stressful than the previous
one from a managerial standpoint, involves considerably greater amounts of effort. The de nitional
phase requires fundamental, value-based decisions concerning the nature and direction of tourism
development in a region. The analytical phase accepts these decisions as a given and proceeds to
carry out the extensive collection and assessment of information needed to identify and assess the
desirability of alternative means of attaining the destination vision and to achieve the goals de ned
by the vision.
The overall process of analysis is best viewed as being composed of two major subprocesses: (1) an
internal or supply-oriented analysis, and (2) an external or demand-oriented analysis.
The internal/supply analysis consists of a thorough review and analysis (frequently termed an audit)
of two major elements. The first element relates to existing policies and programs for the development
of the various components of tourism supply. These policies/programs must be critically reviewed to
determine the extent to which they are both consistent with and effective in developing the type of
tourism facilities and services that are likely to achieve the goals of the region, given the nature of
demand facing that region. As can be quickly seen, this statement implies a direct interaction between
the supply analysis and the demand analysis. In effect, the analytical phase involves parallel, iterative
forms of analysis that must constantly be related one to the other.
A second element of the supply analysis is termed a . A resource audit is a

comprehensive cataloguing of the quantity and distribution of tourism facilities and services within the
tourism system. Such information is basic to an understanding of the current state of affairs of supply
development. Second, the resource audit should provide some assessment of the quality of existing
facilities and services. Again, the execution of the audit to assess the adequacy of the quantity,
distribution, and quality of supply can only be meaningful if it is eventually related to the analysis of
demand. There are no absolute measures of desirability in terms of supply; only those that relate to a
given demand at a given point in time for a given market segment are relevant.
The third form of internal analysis is a strategic impact analysis. This analysis seeks to provide policy
makers with well-de ned benchmarks as to the extent to which tourism is currently impacting the
destination in economic, ecological, social, and cultural terms. Economic benchmarks have tradition-
ally been the most requested forms of impact analysis because both managers and politicians seek
to measure and understand both the level of tourism receipts and the incomes and employment
they create.
The external/demand analysis is composed of three distinct types of analytical activity. The rst
involves macrolevel analysis of data that describes and de nes the overall nature and structure of
current tourism demand as well as those markets having a potential for future demand. This form of
analysis relies heavily on aggregate statistics measuring the flows of tourists and travel-related
expenditures within a region; it must not, however, limit itself to such historical data. In addition,
macrolevel analysis must be future-oriented and attempt to constantly monitor the environment in
order to identify shifts or trends in social, political, or technological factors that might signi cantly
affect the region

resource audit

s success in its field of tourism.
The second type of external/demand analysis is termed microlevel analysis. Here, rather than
focusing on aggregate trends in tourism demand, attention is directed toward gaining an under-
standing of the motivations and behavior of the different segments of the total tourism market. The
purpose of gaining this understanding is to provide those responsible for supply development with the
information needed to design facilities and services that will appeal most to each of the various
demand segments. In addition, such data facilitates the task of those responsible for the promotion of
existing facilities and services.
The final component of external/demand analysis involves a review and evaluation of competitive
and supportive tourism development and promotion policies and programs. Competitive analysis is a
common form of managerial investigation. In this case, it is designed to produce a clear picture

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