Knowledge Applications for Competitive Destinations: a visitor Experience Value Chain Approach1

An Experience …
is an event or events in the customers’ lives, resulting from doing what we want them to do, with some end-result consequence for them in comparison to their alternatives, this relative consequence having some value, all expressed in measurably specific terms.
is not a description of us, characteristics of our products, services, processes, resources, functions or general excellence; nor a general mission, vague ambiguous topic or aspiration?


We need to ask “what value proposition (that is, what combination of resulting experiences including price) should be delivered and how exactly should all products, resources and processes be aligned to profitably deliver it, that is, to provide and communicate each resulting experience?”


Michael J. Lanning, Delivering Profitable Value (DPV), Chairman, The DPV Group
The economic value of tourism arises entirely from the expenditures made by domestic and international visitors. A tourism value chain approach can be used as the methodology for
analyzing the process and identifying opportunities to increase value through positive action or the elimination of barriers or constraints.

The tourism value chain is presented here in two ways – the overall tourism experience (Chart 1) and the detailed “on trip” portion being the critical area in which the visitor expenditure inputs occur at the destination level (Chart 2). To ensure consistency with the overall logic of the strategy, this “on trip” portion can be audited to assure the quality of the visitor experience. Here a value chain analysis can pin point with great accuracy those private sector or government actions that will result in value enhancement and increased competitiveness.

Chart 2. On Site Audit Guide

Case Example: Jordan National Tourism Strategy: 2004-2010

Despite current difficulties that have deeply affected Jordan’s economy, tourism is a sector that Jordan should prioritise as a central contributor to its future economic success. To secure this potential it will be necessary to put in place a strategy and action plan, together with the policy instruments which support its implementation. Traditional success in tourism was largely inherited; future success will be created through investment.
The core foundation principle of the strategy is that tourism should deliver the optimum benefit to the economy, people and communities of Jordan, as direct beneficiaries. If successfully implemented, the strategy has the potential to:

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  Create increased economic activity, opportunity and wealth for its citizens.
  
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  Create income streams and economic benefits for Government.
  
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  Provide expanded employment in urban and rural areas.
  
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  Play a major role in regional and rural development through investment.
  
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  Build a strong and competitive tourism sector as a pillar of the economy.
  

Yet, successful implementation will require significant investment. The requisite amount of funding will only be attained if the Government and political leadership establish the economic and social priority of tourism as a sector that should be mandated and resourced.

Successful implementation will also hinge upon a public/private partnership in Jordan that has not only committed to work together, but also has put in place the practical “partnership infrastructures” that will enable and empower this co-operation. Furthermore, the Jordan Tourism Bureau, whose core task is to sustain and manage the Public/Private
Sector Partnership, must facilitate and support the private sector as the tourism driver that can produce sustainable growth, economic benefit, and employment.


Jordan’s unique natural and historic patrimony represents tremendous potential for its tourism industry. Yet, achieving the targets and benefits set out in this strategy will be challenging. Only through a comprehensive and integrated effort will Jordan be able to realize the full potential of tourism as a bankable growth sector for the 21^st Century economy of Jordan.


The Jordan National Tourism Strategy 2004 – 2010 provides a guide for returning Jordan’s tourism sector to a period of sustained growth. It contains very clear and defined targets, which can be easily monitored by Jordan’s key stakeholders. The National Tourism Strategy was initially agreed and adopted by the Strategy Retreat held on May 21^st 2003. The Delegates approving the Strategy included the combined membership of the National Tourism Council and the Strategy Steering Committee. By decision of the Retreat the National Tourism Council will guide the implementation of the Strategy and monitor its achievement.


The Strategy was augmented in 2004 to follow a value chain approach (described in the following figure) recommended by the private sector in response to the challenge set forth by His Majesty King Abdullah ll:

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  “I do not set the strategies. In Jordan the economy is private sector led so we challenge the private sector to propose the strategy for their sector and
  
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  we respond to and facilitate their requirements.”
  
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This approach is briefly described below in excerpts from the Jordan National Tourism Strategy, 2004-2010: