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Azmi, E. Innovative and Competitive in Tourism Destinations. Encyclopedia. Available online: https://encyclopedia.pub/entry/40844 (accessed on 17 May 2024).
Azmi E. Innovative and Competitive in Tourism Destinations. Encyclopedia. Available at: https://encyclopedia.pub/entry/40844. Accessed May 17, 2024.
Azmi, Ezwani. "Innovative and Competitive in Tourism Destinations" Encyclopedia, https://encyclopedia.pub/entry/40844 (accessed May 17, 2024).
Azmi, E. (2023, February 06). Innovative and Competitive in Tourism Destinations. In Encyclopedia. https://encyclopedia.pub/entry/40844
Azmi, Ezwani. "Innovative and Competitive in Tourism Destinations." Encyclopedia. Web. 06 February, 2023.
Innovative and Competitive in Tourism Destinations
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New tourism destinations and product supply are increasingly popular strategies among industry players to create competitiveness and sustaining the tourism industry. The tourism industry has become more vibrant since globalization emerged with technological changes, thus influencing human travel movements, life-styles, and current trends. 

tourism destination new destination new products tourism supply tourism competitiveness sustainability

1. Introduction

Tourism has grown to be the most important economic activity in the world during the second half of the twentieth century. The World Tourism Organisation (WTO) and World Travel and Tourism Council (WTTC) reported that the tourism sector generates approximately 11% of the global gross domestic product (GDP) and consistently employs over 200 million people in the global workforce. Furthermore, the tourism industry is predicted to be one of the few businesses that continue to expand at a significant rate (approximately 5% per year) and create future job opportunities. Hence, tourism is now an essential vehicle for regional and national development and a major contributor to the local economy in various countries and regions [1][2]. Due to this, local authorities and industry players actively plan and upgrade existing resources to create new tourism destinations and products for long-term competitive advantage without neglecting any element contributing to sustainable development. Sustainability ensures a product’s longevity when developed in a way that minimises negative impacts on the resources while continuing to attract visitors [3]. Ref. [4] stated that the existence of tourism depends on the availability of resources that can be supplied through appropriate distribution, the level of development, and the marketability based on its tourist market. The destinations supplied to tourists are evaluated to determine the direction of future investment to influence visitors or to promote repeat visits to a destination [5]. According to [4][6], destinations are often regarded in the context of tourism supply holding power as a pull factor in attracting tourists [5], and which influence tourists on ‘where to go’, ‘how long to stay’, and ‘what to do’.
Tourism product diversity is crucial to colour the industry. Ref. [7] mentioned that tourism is classified into categories and various types specifically for marketing purposes, including coastal tourism, urban tourism, island tourism, rural tourism, and mountain tourism. Ref. [8] highlighted that one type of tourism product is insufficient to continuously attract tourists from within and outside the country. All tourism attractions are tourism resources but all tourism resources may not be tourism attractions [9]. Hence, existing tourism resources do not necessarily succeed in becoming tourist attractions. Ref. [10] recognised a tourism area life cycle in the market, where the principal aim of new tourism destinations and product supply continuously exists to offer excitement as a tourist attraction. In fact, there are many famous scholars who focussed on the development of tourism destinations. Christaller (1963), an influential scholar among tourism planning and management theorists stated that tourism areas develop over time [11]. Butler (1980) described six levels of tourism development. At first, a tourist product slowly grows and then experiences rapid growth before stabilizing and then declining [12][13][14][15]. According to [15], although the decline stage is a big challenge for the tourism industry, a tourism area can start a new life cycle. Thus, the creation of new product supply and upgrading of destinations increasingly develop for growth of the tourism industry.
New tourism products are ‘something that has not been experienced and known among tourists either in terms of the activities on offer or the experience of the destination’. New tourism products can attract many new tourists to a destination [16]. Various new approaches are being implemented to create competitiveness in the era of globalisation. Firms typically rely more on their capacities to produce new products and services under intense competitive pressure [17]. The factors that push firms to be creative and competitive include a competitive world and reliance on innovation, such as technology. Ref. [18] has produced a model on the study of the development of innovative tourism products in which firms need to identify the core resources, the transformative experiences and the process design. Ref. [19] mentioned that ‘tourist destination’ is a complex concept, but ‘tourist destination competitiveness’ is even more so.

2. Geography and Resources

The topography, geography, and natural resources of a location play a major and critical role in the formation of tourism. The geography and resources generate multiple opportunities for tourism development and new potential. Therefore, the opportunities and challenges of producing new destinations and products usually vary based on the form of tourism supply. The forms of tourism in the article analysis were health tourism [20], rural tourism [21], wine tourism [22], contemporary tourism [23], geotourism [24], last chance tourism [25], fishery-based ecotourism [26], gastronomic tourism [27], island ecotourism [28], cultural tourism [29], and Islamic tourism [30]. Although destinations were addressed in various forms, the goal remained the same, which was the growth of the tourism industry. For example, ref. [24] examined geotourism as a new type of tourism that should be investigated, which offers travellers the chance to experience, learn about, and enjoy the Earth’s legacy. Geotourism can be efficiently explained in terms of ecological and cultural tourism, specifically. In the Canary Islands, wine production has been part of the cultural and agricultural heritage since the 15th century. Wine has been produced on a large scale and is currently a platform for leisure activities on the island by diversifying and developing alternative market opportunities [22]. Meanwhile, ref. [29] researched South Africa and Botswana and explored existing cultural resources, which benefit local communities. Ref. [31] investigated the Serbian geographical environment while examining forest therapy and forest-based wellbeing tourism.
Ref. [20] examined health tourism in Hungary and mentioned that the geographical allocation, potential attractions, and characteristics of the socio-economic environment created various spatial types of tourism. In Hungary, the specific rural locations that cater to health tourism play a crucial role in the regional concentrations of travel demand. Due to the significant number of investments required, development concentrates on specific settlements, thus emphasising them in their surrounding environment. Meanwhile, ref. [21] stated that rural tourism is formed mostly by repurposing and reverifying existing properties and heritage resources as lodging and attractions. Although certain infrastructural development, such as sign development, marketing, and heritage interpretation is usually handled by the public sector, the situation does not necessitate a significant capital expenditure. The development was created at a minimal cost and on a small scale, primarily by rural residents who were often inexperienced business owners in the tourism industry.

3. Responsibility and Involvement

Destination development and management are normally conducted by the government, private or NGO bodies, or investors. Nonetheless, destinations and products hold a lifecycle that begins with growth, enters stagnation, and subsequently declines. Therefore, restarting a new growth (during the stagnation or decline stage) is essential for the revitalisation of the destination lifecycle [32]. Thus, the question is who is ultimately in charge of new growth? The review of articles, such as [28][33][34][35], highlighted that the government is the driving force behind new destination development initiatives. Refs. [26][32] stated that a range of governmental and commercial sector players must collaborate on destination planning, decision-making, and management. Effective collaboration enables building safe networks between multiple stakeholders and provides the stakeholders with access to the resources necessary to realise their objectives. The three basic categories of tourism stakeholders are the public sector (governments and public authorities), private sector (tourism industries, private corporations, and businesses), and the third sector (NGOs and communities) [36]. Ref. [26] listed media and tourist involvement apart from the public and private sectors, local communities and citizens. Ref. [20] emphasised that the intended stakeholders involves major players of tourism, such as the tourism destination management organisation (TDMO) and tour operators [36][37]. Ref. [38] also stated that more involvement from “top shelf” tourism indicates a higher and more complex expected target. Meanwhile, ref. [21] mentioned that the leadership system and researchers are essential to establishing collaborative work groups to explore methodologies, approaches, priorities, and fund-raising.
Refs. [27][34] stressed that the government is essential to the development of sustainable tourism as the government must establish long-term tourism policies, and implement overall coordination and direction. The situation applies to travelling to islands, such as Lanzarote, where political parties, local governments, and communities frequently obstruct the development of sustainable tourism policies and their execution. Although politics is a major factor, the development of alternative products can only be successful within the framework of a comprehensive and collaborative process that includes all parties involved in a destination touristic system. Meanwhile, ref. [33] mentioned that Madeira Island contributed to the introduction of a new tourist paradigm through a number of government initiatives, such as the development and marketing of Madeira for tourism from 2016 to 2021 along with the start of a new political cycle. Ref. [35] highlighted that the Indonesian government emphasised the tourism sector as a top priority in its strategic plan for the future of the country. The factors of tourism development, such as infrastructure, transportation, and other related environmental construction are evident in urban and smaller areas.
According to [33], making improvements to current tourist plans is necessary to make adjustments in regional, national, and international contexts. The established plan reflected the emphasis placed on growing Madeira’s market share in the present priority areas and those with growth potential. Close cooperation was also practised with all Madeira stakeholders to maintain and improve service standards encompassing all sub-sectors of tourism, such as lodging, dining, activities, transportation, and various tourism services. The objective was to develop a service culture for the Madeira tourism sector and a framework for all industry participants. Ref. [35] reported the rise of the highly regarded tourism sector in Indonesia, such as in East Nusa Tenggara (Indonesian: Nusa Tenggara Timur—NTT). Although not considered a popular tourist destination, the island-based region in the south eastern Indonesian province houses the ancient Komodo dragon and has recently received growing attention. National and provincial government stakeholders have labelled NTT as a ‘new tourist region’ and ‘new Bali’, hence rationalising the potential of tourism. Data on the number of tourist visits to NTT indicated that visitors increased fourfold between 2014 to 2018. Meanwhile, governments that rely on the expansion of tourism actively assist entrepreneurs in the industry to develop innovations to remain competitive. The government subsequently liaises with other stakeholders, such as entrepreneurs, destination managers, or investors.
Entrepreneurs are considered an essential link in the chain of individuals who design and construct industrial innovations, specifically with the application of sustainability principles, which demand new approaches. Entrepreneurs and tourism investors are constantly searching for new markets to increase profits, which calls for innovation to develop new products and trends [28]. Refs. [30][37] noted that new and innovative approaches require initiative from business entrepreneurs. According to [37], tourism operators are urged to innovate and provide fresh offers and experiences that appeal to tourists through numerous tourism and economic development initiatives. The situation has inspired numerous tourism businesses to reconsider the design and focus of their experiences and encouraged creativity within currently existing ones. Furthermore, ref. [30] proposed that businesses and industry players should supply appealing tourism programmes to meet needs and enhance satisfaction levels.

4. Trend and Travel Pattern

Trends and travel patterns are generally regarded as being based on demand. According to [39], tourism demand needs to be examined based on the emergence of new products in the market due to the relationship between demand and supply. A study in Isfahan, Iran, highlighted that intangible cultural heritage is a brand-new tourism offering, thus emphasising the importance to assess tourist purchasing patterns. Various factors influence demand in the tourism business, including growing micro mobility, changing lifestyles, and new and trendy outdoor recreational activities, which are subject to fluctuations [21]. Numerous related businesses have profited inadvertently. For example, rural tourism started as sightseeing in the late nineteenth century but has developed into a larger industry with various adventure tourist activities and more diverse experiences.
On the supply side, development resulted from rural residents’ acceptance of tourism as a potential source of employment. The numerous protected places with landscape value are now supporting well-managed rural tourist programmes rather than opposing them out of concern for its potential detrimental effects. Similar to geotourism products, ref. [24] stated the current demand characteristics and patterns enable the disclosure of the future stakes of geotourist activities, specifically regarding on-site interpretation, geomarketing, and product development to design a product that is more suited to the current demand. Ref. [20] examined two groups, one includes places, such as Zalakaros, Harkány, and Hévz with a strong health tourism industry but no other product offerings. The locations are typically small towns, some have become cities in the 1990s primarily as a result of tourism-related activities.

5. Innovation

A literature review on new destinations and tourism products outlines innovation as the most powerful and key element in the new tourism sector. According to [28], innovation is defined as the initial launch of a new product, a new variation on an existing product, or new organisational structures and procedures as a component or outcome of the discovery, development, and commercialisation processes. Given that innovation for the sake of innovation rarely occurs, the aspect must fulfil several requirements, such as competitiveness, market expansion, or customer satisfaction. Ref. [40] added that innovation involves novelty seeking, a desire for stimulation, independence from others’ communicated experience, and a desire for uniqueness. Five types of innovation were adapted in [38] as follows:
  • Introduction of new goods;
  • Introduction of a new method of production;
  • Opening of a new market;
  • Conquest of a new source of supply of raw materials of half-manufactured goods;
  • Creation of a new type of industrial organisation.
Three categories of criteria are used to explain innovation in the tourism industry:
  • Supply or supply-driven determinants (new skills, materials, services, and form of organisation);
  • Demand drivers (leisure time, population pyramid, and individualisation);
  • Level and pace of competition (influenced by globalisation).
The current findings highlight that innovation strategies are multifaceted and have been implemented in many tourism destinations, such as the creation of new and upgraded products, knowledge and partnership, and searching for new markets, uniqueness, growth, survival and differentiation [20][21][25][26][28][30][32][37][38][40].
Regarding new product creation, ref. [40] investigated space tourism technology innovations to attract travellers seeking new vacation experiences in Taiwan, while [26] examined fisheries-based ecotourism (FbE). The FbE is a novel idea for the tourism sector in Bangladesh. A growing trend has emerged among travellers to seek out more actively-involved experiences rather than the standard sun, sand, and sea vacations. Aligned with the new proposal, local fishermen can serve as knowledgeable tour guides and educators in traditional fishing techniques and equipment, the marine environment, and the community fishing legacy. The trip packages can be expanded to include opportunities to seek and catch bigger game fish and the cooking of traditional local cuisine on the boat, which enable cross-cultural interactions that are educational for both parties on many levels.
Ref. [38] elaborated on new development factors and stated that the old and new tourism development paradigm is profitable. In Hungary, classic medical tourism centres are becoming more open to new medical techniques and wellness philosophies with facilities focusing on wellness expanding their supply to include other tourism-related services. Numerous instances of innovations were displayed, including the blending of health tourism with incentive, business, and golf travel. In addition to the health tourism supply, Bükfürd exhibited a well-developed capability for business tourism and its golf course serves as the foundation for drawing in a different market [20]. In Siberia, forest-based tourism introduced innovative therapeutical programmes established on complementary and alternative medicine, ecotherapy, forest wellness, and forest therapy as a novel service in the wellness tourism [31]. In Isfahan, Iran, the innovative idea of introducing the Traditional Weaving House of Isfahan (Textile Museum) as a last-chance tourism destination is part of the museum’s strategy for improving its functions [25] while in Ghana, Islamic tourism has been discussed in research as a relatively new form of tourism in the country [30].
Ref. [28] stated that innovation cannot explain competitive advantage and economic success. The success of tourist growth is attributed to several elements, including a more open industry, cooperation among all operators with a similar vision, a strong brand, first-rate infrastructure, and connections to ancillary industries. Ref. [21] added that the concept of a new generation of rural tourism provides ‘new breath’ by building partnerships for the development and marketing of rural tourism. New generation rural tourism aims to create a culture of destination management that can manage the decentralised, multi-stakeholder, and multi-player nature of the industry and its critical ties to the preservation and economic management of rural areas. In China, ref. [37] describes the process as encouraging tour operators to adopt an innovative mind-set. Tourism operators have experienced innovative challenge as a result of the past ten years of global increase in China’s tourism. Therefore, a deeper understanding of exploitative and exploratory learning could aid industry players in starting the innovation process to attract and serve visitors without losing their current markets.

6. Diversification

Diversification is one of the new destination development strategies and new products that can be implemented. According to [34], strategic product development, or alternative product development, is an additional diversification strategy. Regarding the lifecycle model of tourism areas, the strategy can facilitate handling an uncertain future and address the need for action. Ref. [22] emphasised that the Canary Islands tourism industry highlighted the value of diversification, which could be attained by creating various attractions and expanding the target market to boost destination competitiveness and maintain high levels of repeat travel. Past expansion of the tourism sector in Botswana has prioritised wildlife tourism over other types of travel. The new tourism policy recognises the necessity for product diversification to uncover extra growth and associated socioeconomic benefits for the country. First, a “spatial” need is required to disperse tourist flows and associated consumption outside of the current top national destinations, which include the heavily visited and periodically congested Okavango Delta, Moremi Game Reserve, and Chobe National Park in the north. Second, communities, alternative means of generating income, and specifically local culture must be “thematically” integrated into national and local tourism offerings. All parts of diversification should work towards the policy objective and vision, which entails more of Botswana’s citizens engaging in, and profiting from, the tourism sector in the future. Therefore, the updated strategy seeks to establish Botswana’s cultural and historical sites as one of the industry pillars of the future [29]. Moreover, ref. [41] investigated employment identity through farm diversification where farm-related tourism focuses on educational dairy farms (EDFs) that form employment identities and generate differences in the efficiency of farm activities. Hence, an excellent strategy for rural development is the diversification of farms through tourism-related businesses.

7. Marketing and Target Market

Marketing a new product as an expansion of an existing one is a proven tactic to effectively boost brand value. Ref. [23] suggested that countries and destinations can emphasise their uniqueness and strengthen their identities through developing tourism brands. Ref. [42] introduced the concept of destination-to-destination brand extension (also known as “destination extension”) and empirically evaluated its usefulness using an experimental design. Jeju is a recently developing destination and the only island in the world with three UNESCO designations of outstanding value positioned as the extended brand in this design. Two established tourism brands, South Korea and UNESCO World Heritage Site, were placed as possible parent brands. Instead of creating a completely new brand name, which is typically linked with higher marketing risks and expenses, the brand extension used an existing brand name (generally referred to as the “parent brand”). “Destination extension” is an alternate tourism destination marketing tactic.
The potential of the Andaman and Nicobar island native cuisine has not been effectively promoted, which is the biggest obstacle to its ability to thrive as a tourist destination [27]. Ref. [22] proposed expanding the current destination image to market the tourism product via a mass tourism package. Hence, local communities could promote their tourism resources to the outside world and establish a destination identity. In Madeira, an approach to promotion and sales was developed by ensuring new communication strategies at destinations and strong investments in digital and content marketing [33]. Meanwhile, refs. [22][29][30] emphasised the target market.
The target market is important in the process of marketing tourism products. A wider targeted market increases the chance of attracting visitors. Ref. [29] outlined that the initial goal of the Botswana tourism policy was based on the “High Value–Low Volume” (HVLV) approach, which refers to the aim of attracting a small number of tourists with a high expenditure pattern. Significantly, HVLV destinations provide the sector with very narrow future development options, and, thus, the goal has been broadened to include various categories and products of the middle to high tourism market.
The target market enables stakeholders to provide facilities and needs that are appropriate to the targeted form of tourism. In Ghana, Muslim tourist demands are promptly identified and met with the essential and necessary facilities at tourist spots so that Islamic tourism can be promoted and integrated into a non-Muslim country. Additionally, it is more profitable for marketers, professionals, and enterprises to comprehend Muslim travel requirements so as to offer Muslim-friendly tourism items and services that would enhance their spiritual well-being in the given situation [30]. Ref. [22] highlighted that the target market for Canary Islands tourism is structured in a way that supplies limited options for independent travel. Adding rural and traditional components would enable expanding the perception of popular tourist locations and packaged mass tourism items, while revitalising the surrounding rural economy and preserving some traditional textiles.

8. Sustainability

Tourism is usually associated with development where tourism development usually produces a multiplier effect on the environment, culture, economy, and society [34]. Nevertheless, due to the awareness of the future sustainability of a place, most new tourism developments adopt sustainable tourism development. According to [23], sustainable tourism development favours the preservation of a tourist destination’s ecological balance, therefore increasing its competitiveness, and is unachievable without proper management of tourist demand. A competitive destination protects its natural and cultural resources while improving the residents’ long-term well-being by providing a more satisfying experience than similar destinations. Ref. [24] studied geotourism as a new form of tourism from a realistic perspective and different advantages offering the potential for sustainable growth. According to [31], green spaces and environmental interaction encourage human well-being, personal development, and spiritual development. Remedies for quick and rejuvenating visits to natural places also emerged as a major wellness trend in response to the harmful impacts of digitalised life and epidemics. The idea and practice of “forest bathing” were popularised by Japanese researchers, such as forest bathing “shinrin-yoku”, as a potent tool for promoting healthy local communities by fostering intuitive stewardship of the forests and increasing ecological literacy by advancing global health and wellness trends through the mentioned fundamental activity.
Gastronomic tourism is a new product in Andaman and Nicobar Island, India. The typical regional food accurately portrays the cultural and historical background of a destination. Gastronomic tourism can be used as an alternative to implementing methods for the local residents’ socioeconomic development and as a marketing tool for the destination. Gastronomic tourism may contribute to the sustainable development of a place by fostering local competition, respect for Mother Nature, and improving local residents’ living circumstances [27].
The study reviewed the creation of new FbE in the fishing sector, which provides renewed hope for the survival of this way of life by encouraging more sustainable growth patterns, specifically in the artisanal fishing industry. Fishing tourists can join local fishing boats as paid guests, thus enabling them to enjoy the discreet beauty of the aquatic landscapes directly on top of the water. In Bangladesh, numerous options are available for recreational fishing, which can be highly beneficial to the nation and serve as a crucial tool for sustainable human development, including the eradication of poverty, the creation of jobs, and the improvement of rural areas. The regional culture that draws visitors can aid in the preservation of regional customs and handicrafts that might otherwise be lost to time [26]. Similarly, ref. [39] stated that introducing new intangible heritage tourism products in Isfahan is important to foster intercultural understanding, respect for one another’s culture, and creative travel in the region. The situation is similar to product development for sustaining tourism destinations with options, including enhancing farmers’ jobs with new product development, such as EDF [41], rural tourism evolution [21], and upgrading classical medical to health tourism [20].

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