Considerations in Resort

Planning and Development

The growth of a popular resort

destination does not necessarily
coincide with the development of
great resort properties. On the
other hand, the construction of a
great resort hotel may precipitate
the development of a great resort
destination
Chuck Y. Gee

Special Considerations in
Planning and Development
Economic
Social
Environmental

Economic Considerations
Target

market
Size and speed of development
Investment
PROFIT

Economic Considerations
The market outlook

Market feasibility study

Develop a resort based on what the
market wants
Competition
Sustainable rate of development
Markets change

Economic Considerations
Capital requirement

Investments in non-revenue
producing amenities
Short-term loans from financial
institutions
Capital intensive business

Economic Considerations
Investments

Heavy costs in fixed assets

Low ROI in the early years of
operation
Long payback period; low cash flows

Aulani Resort & Spa

21 Acre land area

USD800 M investment
359 hotel rooms
Estimated 1000 jobs created
481 vacation villas
14,545 sq. ft. conference center

18,000 sq. ft. spa

Full service fitness center
Saltwater snorkel lagoon
Waikolohe Stream
Conservation pool
Wedding pavilion
Two swimming pools
Auntys Beach House kids club
Custom-planned adventures & excursions
`AMA`AMA beach restaurant

Makahiki buffet restaurant

Off the Hook beach bar
`lelo Room buffet bar
Horseback riding
Dolphin-spotting tours
Kayaking
Sunset-facing hot tubs

Social Considerations
Find out what the social effects of
resort development in the host
community
Involve the host community in the
planning and development process
support of community based tourism
development that, in the end, creates
a larger social acceptance of tourism
benefits

Social Considerations
Employment

Attracts newcomers for newly created

jobs
Creates jobs in two ways:
construction worker; resort
operations staff
Most resort jobs do not require highly
skilled staff

Social Considerations
Employment

Employs high percentage of women

Many resort jobs may be a source of
tension in the host community
Resort operations typically create
secondary jobs

Employment

Starwood Hotels & Resorts Worldwide,

Inc.s brand names include Sheraton,
Westin, The Luxury Collection, St. Regis,
W, Le Meridien, Four Points by Sheraton,
Aloft and Element.
As of December 31, 2011, Starwood
Hotels & Resorts Worldwide, Inc.
employed approximately 154,000 people
worldwide.

ROYAL CARIBBEAN CRUISES LTD.

As of December 31, 2010, we operate 40
ships under five cruise brands, with a
selection of worldwide itineraries ranging
from two to 18 nights that call on
approximately 420 destinations

Employment

As of December 31, 2010, we employed

approximately 5,200 full-time and 850
part-time employees worldwide in our
shoreside operations. We also employed
approximately 52,000 shipboard
employees. As of December 31, 2010,
approximately 80% of our shipboard
employees were covered by collective
bargaining agreements.

Social Considerations
Guest Spending

Resort spending has an impact on the

quality of life of the resort
community
Also a form of export selling by
bringing outside revenue into the
community

Social Considerations
Recreational development

Large tract of land required for

outdoor recreational amenities
Recreational resources for resort
guests may enhance acceptance or
may generate conflict between resort
and the community

Social Considerations
Recreational development

The volume of guests expected to

use recreational facilities are
important considerations
Resorts operating near publicly
owned recreational facilities have no
control over use of such facilities

Social Considerations
Cultural influences
Ethnicity
Beliefs, practices
Social norms
Religious influences
Faith
Traditions

Environmental Considerations
Resort

development can be an
answer to some of the lifethreatening environmental
problems

Environmental Considerations
Congestion

General refers to traffic overloads in

open areas where public activities
take place
Local refers to the crowding at
specific points of use in the resort
facilities

Environmental Considerations
Pollution

Pesticides and fertilizers used in

landscaping
Exhaust fumes from cars, buses, light
aircraft and other transportation
means
Operation of resort itself

Environmental Considerations
Conservation

Effects on the alteration of the flora &

fauna which are native to the region

Enhancement

Changes made in the natural

environment should take the form of
restoring the physical surroundings

Reference
Resort Management
By Chuck Y. Gee
http://www.rclinvestor.com/phoe
nix.zhtml?c=103045&p=irolgovhighlights

Q&A

Exercise 2
Cite

at least one event that you

may consider as an impact of
resort development (social,
economic and environmental) in
Boracay Island.
Explain how this issue affects the
resort business in Boracay.

Boracay Island discussion questions

1.

2.

3.

Describe how the tourists, government,

business and host community affect the
resort business in Boracay Island.
Discuss the social, economic and
environmental considerations that
positively or adversely changed the
resort operations in Boracay.
Describe the political issues and
legislative measures that affect the
resort industry in Boracay.

2011 908, 874

2012 1.2M
2013 1.5M (estimate)
Indigenous people of Boracay - Ati
Ancestral domain Boracay Ati Tribal
Organization
Inefficient implementation of national and
local regulations
Climate change

The real culture of Boracay is embedded

in the history, collective memory and
practices of its ancient inhabitants 0 the
Atis.
PD 1801 - Marcos
PD 1064 - Arroyo
Indigenous people of Boracay - Ati
Poor implementation of national and local
regulations
No existing tourism master plan or land
use plan for resort development

Boracay Island key issues

Coliform; algal bloom

Sewage system
Overdevelopment
Poor governance
Water borne diseases

Boracay Island key issues

Non cooperation among resort owners

Environmental and zoning regulations
Water shortage
Waste disposal
Profit vs sustainability