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Sustainable Tourism Development

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Executive Summary

This report provides an insight into the concept of Sustainable Tourism Development. New
Zealand is the country taken as a case study in this assignment. It explains the various
strategies that the government has planned to sustain New Zealand’s rich natural heritage.
In the first task, the rationale behind tourism planning is explained. It studies the
stakeholders involved in tourism and describes benefits of public and private sector
partnerships. In Task two, analysis of tourism planning at national and international levels is
done. It illustrates the importance of interactive planning systems in tourism development. In
the third task, a detailed picture on factors that hamper sustainable tourism development is
provided. Necessary planning required for achieving sustainability is also explained. The
fourth task is about issues that act as conflict of interest in sustainable development. It
provides solutions on steps for maintaining a balance between demand and supply. Finally
in the fifth task, a comparison has been done between Fiji Islands (emerging destination)
and New Zealand with respect to problems faced by each country in tourism sector. The
write up recommends steps to be taken to overcome these hurdles and how each
destination can achieve sustainability in tourism. In short, the gist of the assignment states
that maintaining quality of a destination is most important than profits for any country.

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Contents
Introduction ........................................................................................................................... 5

Task 1 ................................................................................................................................... 5

Benefits to different stakeholders from tourism development planning (P1.1) .................... 5

Advantages and disadvantages of public and private partnerships in tourism (P1.2) ......... 5

Task 2 ................................................................................................................................... 6

Steps involved in tourism development planning (P2.1) ..................................................... 6

Evaluate the significance of interactive planning systems (P2.2) ....................................... 7

Economic, Social & environmental impacts of tourism (P2.3) ............................................ 7

Task 3 ................................................................................................................................... 8

Concept of Sustainable Tourism Development (P3.1) ....................................................... 8

Obstacles in sustainable tourism development (P3.2) ....................................................... 9

Stages of sustainable tourism development planning (P3.3).............................................. 9

Task 4 ................................................................................................................................. 10

Resolving conflict of interest for well being of tourism development (P4.1) ...................... 10

Balance in supply and demand (P4.2) ............................................................................. 10

Evaluation of moral and ethical issues in promoting enclave tourism (P4.3) .................... 11

Task 5 ................................................................................................................................. 11

Comparing of issues with tourism development (P5.1) .................................................... 11

Recommendations for future development (P5.2) ............................................................ 12

Conclusion .......................................................................................................................... 12

References ......................................................................................................................... 14

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Introduction
Tourism is one of the major revenue generating industries for many countries across the
world. The contribution from the tourism sector towards the world economy rose to 9.5% in
the year 2013. Approximately 4.7 million new jobs were created due to a boom in tourism
industry (wttc, 2015). With the tourism industry fast progressing, a new concept of
sustainable tourism is born. This report studies the indicators of sustainable tourism
development for New Zealand.

Task 1

Benefits to different stakeholders from tourism development planning (P1.1)

New Zealand tourism industry is fragmented with both small and big players contributing
towards the country’s development. The positives here include good revenue through foreign
exchange, creation of ample job opportunities, growth in infrastructure, regular income for
the locals, better quality of education due to inflow of money, foreign direct investments and
overall economic development (Page, 2014). The negatives involve issues such as erosion
of land and natural reserves, environmental degradation, social imbalance, corruption
creeping into the system. Though New Zealand has progressed by leaps and bounds
through tourism sector, the negatives demand for suitable tourism plan.

The basic idea behind tourism planning is to attain the objectives such as improvement in
employment opportunities in New Zealand, Conservation and Protection of nature,
development in infrastructure, reaping maximum benefits out of tourism sector and bringing
about a growth in economy and striking a balance between public and private partners. A
sustainable tourism plan will benefit not only the stakeholders but the entire economy
(Pineda & Brebbia, 2012). The stakeholders involved here are New Zealand Ministry of
Tourism (government), tourists, local communities and local residents of New Zealand and
International agency such as Tourism New Zealand which is responsible for marketing the
destination internationally (Newzealand Gov., 2015). The benefits to stakeholders involve a
lot of foreign direct investments which will be beneficial for the New Zealand Government.
There would be improvement in employment opportunities in the tourism industry such as
hotels, airlines, hospitality, travel agents etc. Better infrastructure can be made available in
the form of roads, accommodation facilities and transport. Locals will be exposed to an
enhanced standard of living and overall there will be appreciation in domestic tourism.

Advantages and disadvantages of public and private partnerships in tourism (P1.2)

In order to make New Zealand the most sought after tourist destination, the government here
is promoting collaboration of public and private sectors. Their aim is to facilitate better

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economic and social infrastructure to the visitors and create a mark in tourism internationally.
Few examples of successful PP partnerships in New Zealand are (Newzealand Gov., 2015):

Counties Manukau District Health Board (CMDGB) are concluding their Indicative Business
Case consisting of improved health services in Manukau. Hobsonville schools is another
example. The project is about building a new primary and secondary school at Hobsonville
Point in Auckland. PPP is a preferred choice because of pooling of expertise and knowledge,
capital and other resources from public and private stakeholders (Long, 2012). The
advantages of such partnerships include cost reduction which is a major benefit where costs
are shared by both parties. Sharing of risks comes naturally through PPP. The risks may
include non completion of task, shortage of funds and manpower. PPP enables better
implementation of strategies and faster work. It also is a stimulant in increasing employment
opportunities for local people.

Some disadvantages are that if the roles of each sector are not defined clearly, then the
partnership may not be successful. Government loses its complete control and has to rely on
decisions by private sector. This may result in monopoly. Political and labour issues may
arise affecting the tourists. In case of failure of a particular project, there will be responsibility
issues. The ultimate aim of these partnerships is to facilitate value for money to the tourist.
Structured PPP can help in development of tourism planning for New Zealand.

Task 2

Steps involved in tourism development planning (P2.1)

The goal of New Zealand Government is to provide the pleasure of experiencing 100% Pure
New Zealand. The government aims to do this by preserving the natural sanctity of
landscapes and conservation of its wildlife. The New Zealand government must identify the
major tourist attractions and existing infrastructure in the country. It has to collate information
on number of public and private players providing accommodation, transport, catering and
travel desk facilities to the tourists. In addition to this, a review on the current marketing
strategy also needs to be done. After considering the present scenario, the government can
chalk out alternative ideas for providing a better experience to tourists. For instance, New
Zealand government has started the Qualmark model for grading its accommodation
facilities. A tourist can visit the official site of New Zealand Tourism and refer to the grading
for selected accommodation. A suitable plan must be adopted for implementation. The New
Zealand government must regularly monitor the plan and take necessary steps to achieve its
objectives. Tourism planning done at different levels consists of:

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National level: The New Zealand government has introduced New Zealand Tourism Strategy
for providing better travel experience and overall economic growth of the economy
(Newzealand Gov., 2015).

International level: Tourism New Zealand is working with offshore markets to sell tourism as
a popular holiday destination. The country has tie ups with international organisations such
as WTO (World Tourism Organisation), IATA (International Air Transport Association) which
helps in smooth tourist services such as airlines and hospitality.

Regional level and local level: This involves providing proper transport, accommodation and
food facilities at local level. The local people also must be trained to handle tourists and help
them in every situation.

Evaluate the significance of interactive planning systems (P2.2)

Interactive planning refers to the steps that a country takes to bridge the gaps between the
desired future and the current scenario. Interactive planning systems in tourism call for equal
participation from all stakeholders (Morrison, 2013). The government, private players, local
communities and tourists are all involved in the process. Inflow of tourists affects the local
communities to a great extent. Hence, engaging them through community boards and
councils is a part of interactive planning system. Tourism Industry Association, Regional
Tourism Organisations, Local government of New Zealand, Maori Regional Tourism
Organisations and other local authorities are the stake holders (New Zealand tourism, 2015).
Interactive planning is a continuous process. For instance, Have Your Say is a publication
started by Tourism Industry Association to encourage suggestions and feedback from local
people for improving tourism. The government here must promote interaction between its
stakeholders for obtaining innovative ideas and also sensitize about issues faced by each
group. This will not only facilitate sharing of responsibility but also will prove useful for
tourists entering the country.

Economic, Social & environmental impacts of tourism (P2.3)

Tourism for any country is a double edged sword. It brings in a lot of constructive changes.
However, there are drawbacks linked to it too (Cros & McKercher, 2012). There is
appreciation in currency, inflow of foreign exchange, employment opportunities, enhanced
standard of living and improved infrastructure facilities. But, harmful effects include inflation,
leakage, demonstration effect etc.

The social impacts include preservation of monuments and traditions, customs and religious
practices, feeling of pride in culture. However, the negative impacts are unfriendly relations

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between locals and tourists, downgrading of dressing style and food habits and non
acceptance of way of living.

The environmental effects are conservation of nature and wildlife, cleanliness and
beautification of tourist places. The negative effects are pollution, erosion of natural habitat
and congestion.

In order to measure the impact assessment, New Zealand has an NGO called as New
Zealand Association for Impact Assessment (NZAIA, 2015). It consists of a team of
specialists which studies the social, economic and environmental impacts of tourism. NZAIA
has been associated with Secretariat of Pacific Regional Environment Programme (SPREP)
for study on impact assessment in the Pacific region. For instance, NZAIA has submitted a
plan fresh water management to SPREP (NZAIA, 2015). Impact assessment for NZAIA
refers to evaluating the possible changes in nature, people, health, economy and overall
country due to growth in tourism. The team works on modifying existing policies and
proposals that can potentially leave a lasting impact on the economy.

Task 3

Concept of Sustainable Tourism Development (P3.1)

Sustainable tourism refers to considering current and future economic, social and
environmental impacts, addressing the needs of tourists, environment and host community
(Harris, et al., 2012). According to Principles for Sustainable Development, 1995
sustainability refers to striking a fine balance between economic, socio-cultural and
environmental dimensions of any country in the long run. The concept of sustainability was
first introduced by World Commission on Environment and Development (WCED) in the
Brundtland Commission Report in the year 1987 (Cater, et al., 2015). The report suggested
that sustainability is a continuous process and conservation of nature is necessary for the
future generations too. The World Travel Tourism Council (WTTC) has taken active steps for
bringing about sustainability in travel and tourism industry. It says that tourism has to be
sustainable in three aspects namely social, environmental and financial aspects and this is
called Triple Bottom Line (Sharpley & Telfer, 2014). Tourism is a main industry in New
Zealand and visitors come here for being in the lap of nature. Sustainable tourism would
mean that the tourists would love to come back for this unique experience. Hence, it is
essential to maintain and conserve the nature with its full beauty. Safeguarding 100% pure
New Zealand is the main need of the hour as the place itself is the product to be sold. Every
tourist must get the place with same purity as earlier ones have got. This justifies sustainable

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tourism development for New Zealand. However, this objective cannot be achieved in
isolation. Every individual must treat it as his responsibility to preserve the place with purity.

Obstacles in sustainable tourism development (P3.2)

New Zealand tourism faces numerous hindrances in its path to succeed. The main aim of
New Zealand government is to market the country as the best destination for a holiday
(Fletcher & Crawford, 2013). An increased carrying capacity will put pressure on the
environment and this may lead to erosion of natural resources. Global issues such as
climate change may affect tourism development in the country. Depression in the economy
and currency also may badly hit the tourism sector. Other obstacles include non alignment of
stakeholders to the common goal of sustainable development. Blame game among public
and private sectors will not only affect the quality of service but also leave an unpleasant
picture in the mind of a tourist. Efficient disposal of waste and protecting the nature and
wildlife from any misuse is a challenge in itself. Lax attitude of government in building
infrastructure and maintaining heritage sites can also bring down development of New
Zealand Tourism. For instance, Queenstown is called the adventure capital of New Zealand
and is one of the fastest growing tourist destinations. Here there are serious issues related
to traffic congestion, waste management and loss of landscape, very high cost of living and
lack of planning. Thus, it is essential to overcome these obstacles for an upswing in tourism
development.

Stages of sustainable tourism development planning (P3.3)

According to the New Zealand Tourism Strategy 2015, sustainable tourism development can
be achieved through four steps plan (New Zealand tourism, 2015). These steps are
analysed below.

Delivering unique experience: The strategy aims at making New Zealand tour a memorable
one for every tourist. Strong marketing techniques should be used to create an image of the
country. This should be coupled with excellent customer service, infrastructure and complete
information.

Attracting investment: The tour operators must be skilled enough to pull more visitors to the
country. This will give more returns on investment. The staff should be well trained to handle
tourists in peak seasons. They must be adequately trained to provide best service even in
pressure situations.

Protecting and enhancing environment: The strategy emphasizes on preservation of natural

and scenic beauty of New Zealand to enable the future generations to enjoy it as it is. There
should be awareness about proper disposal of waste, efficient use of resources, avoiding or

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abusing the nature or wildlife etc. Good facilities such as efficient transport system,
infrastructure and prompt information must be provided to the guests.

Working together of communities: The local authorities and communities must work in
harmony towards the common goal of sustainable development. They must be ready to
extend any help to the guest as they represent the country.

Task 4

Resolving conflict of interest for well being of tourism development (P4.1)

As mentioned earlier, conflict among stakeholders, imbalance in carrying capacity and
developmental constraints can prove to be factors of conflict of interest. New Zealand
tourism is supported by the government, local bodies, private organisations and local people
of the place (Papatheodorou, et al., 2012). Tourism here is largely fragmented and hence,
there are possibilities of conflict of interest due to different styles of working of each
fragment. Also, the government here is stressing on inflow of more number of tourists every
year. The government is not fully equipped to handle increasing crowd and protect the flora
and fauna.

The government must chalk out clear expectations from each stakeholder in tourism
development. Their roles must be made clear and governance must be transparent and
accountable. The government must provide equal opportunities to private and public
companies for contributing towards tourism. Clarity on methods of disposal of waste must be
given. There must be sign boards and banners put up emphasizing on importance of
cleanliness and ways to throw waste. Tour operators and hotel staff must be adequately
trained to treat every tourist in a hospitable manner. The local people must be given equal
protection as tourists. Efforts must be taken to maintain friendly relations between locals and
tourists.

Balance in supply and demand (P4.2)

People prefer to visit New Zealand because of its rich bounty of nature and wild life. This
means that New Zealand offers good supply. However, there is an equal demand too. The
popularity of New Zealand as a destination is very high and this raises the demand to
experience the country. People come here for experiencing nature. Glaciers, lakes,
mountains, rare animals and bird species are attractions of New Zealand (Newzealand Gov.,
2015). All this makes balancing the demand and supply a very challenging task. Steps for
balancing demand and supply are:

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Employing more labour and train them to handle tourists. Private hotels and accommodation
can be arranged through home stays with local people during peak seasons. Keeping a
ceiling on number of tourists through strict visa formalities can reduce the numbers. This will
enable better holiday experience to the existing guests. Marketing of products in the off
season such as Matariki and Pasifica festival can help in distribution of crowd and may not
create a flood of tourists in peak season. Targeting high end customers who can afford to
spend more also can help reduce the numbers. This will also ensure return on investment.
Maintenance of healthy balance between demand and supply will assist in preserving the
sanctity of nature.

Evaluation of moral and ethical issues in promoting enclave tourism (P4.3)

Enclave tourism is a concentrated form of tourism which is self contained physically,
economically and socially. It does not have any connection with other tourist destinations
and operates independently (Spenceley, 2012). Enclave tourism creates employment
opportunities for local people and mostly small entrepreneurs are found at such locations.

Chatham Islands is a destination in New Zealand which can be termed as enclave tourist
destination. It is 800 kilometres east of South Island and is well known for fishing, kayaking,
sailing and for beautiful landscapes. They function on a host system. The host looks after the
guest during the stay.

Enclave tourism is environmentally friendly kind of tourism. It focuses on specific activities

for which the place is known for. However, there are moral and ethical issues hidden behind
this. Any tourism should also benefit the people living in that place (Harris, et al., 2012).
Enclave tourism is restrained to a particular season. In the off season, the locals are
unemployed. Also, the tourists are completely dependent on the natives. They can take an
undue advantage of this situation and exploit tourists. These issues cannot be ignored and
hence, enclave tourism cannot be promoted. It has limited growth potential and is mostly
found in developing countries.

Task 5

Comparing of issues with tourism development (P5.1)

Fiji Islands which is close to New Zealand is an emerging economy. Tourism is a significant
here and the country boasts of high sugar production which is exported (Pratt & Harrison,
2015). Fiji Islands too is full of beautiful beaches, scenery and other natural resources.
These islands are famous for their coral life. However, Fiji Islands is battling with several
issues such as labour market imperfections, unlicensed hotels and solid waste. Most of the

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people here are not skilled and prove to be incompetent for coping with growth in tourism.
There are several unlicensed hotels operating in Fiji Islands which is against the government
policy (Fiji govt., 2015). This creates a negative picture in the minds of tourists. There are no
adequate measures taken to dispose industrial and local waste resulting in pollution.

New Zealand though is a developed country, has several factors which obstruct the growth
of tourism development. New Zealand also has a large population of tribal people who are
unskilled and cannot be used to strengthen the workforce. There is disparity between public
and private sectors and this gap is a challenge to fill. Another major issue is handling the
large number of tourists visiting the country. New Zealand is still struggling with measures to
tackle the overcrowding problem (Leotta, 2011). New Zealand tourism has concentrated only
on few select places for development. The other rural and interior locations still remain
backward.

Recommendations for future development (P5.2)

Fiji Islands has the potential to be most preferred vacation spot because of its beauty and
scenery. There must be a strong marketing effort by the Fijian government to showcase their
destination as a preferred one. The government must introduce strict policies about waste
disposal and conservation of nature. The coral life which is predominant in Fiji must be
adequately protected. The government also must take steps to employ skilled workforce and
train them to handle tourists. The government also can think on developing small scale
village based tourism. It can be a strong tool to promote Fijian culture. The rural population
can actively participate in this task and can be blended with the workforce.

In case of New Zealand, a strong strategy must be brought in force for enforcing sustainable
tourism development. Creating opportunities to promote sustainable tourism through
summits, seminars, and trade fairs is an excellent way to put forth the point. The
stakeholders consisting of New Zealand Tourism department, government, private
companies, local authorities, natives, tour operators, airlines must work in harmony for
exchange of innovative ideas. Also, emphasis on increasing the amounts of customer spend
is another effective way of bringing high return on investment. New Zealand Tourism 2015
Strategy is a tool that government has designed to lead tourism in future.

Conclusion
The Tourism Industry Association (TIA), The Ministry of Tourism (TMT), Tourism New
Zealand (TNZ) are some of the government agencies who have been striving to make New
Zealand a successful tourist destination. Qualitative service should be the main agenda
rather than increasing the quantity and compromising on service. Sustainable tourism should

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be the punch line not just for New Zealand but for all tourist destinations across the world as
it is the best way to conserve nature.

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