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

1. SITUATION ANALYSIS


There is no doubt that the events of 9/11 caused a major interruption to the growth of world tourism. Before 9/11, however, tourism was progressing remarkably well in the Middle East. International tourism arrivals in the Middle East had consistently outpaced the world average until 2001. This trend resumed in 2002. Jordan, at least temporarily, also followed the trend of post-9/11 growth. Actually, arrivals increased from 2000 to 2001 by 1.5 %, but receipts fell 4 % (Table 1). Recovery in both arrivals and receipts followed in 2002. From 2002 to 2003, tourist arrivals decreased 3.1 %, although receipts actually increased by 3.7 %.

Table 1. Jordan Tourism Arrivals and Receipts 2003

Measure	2000	2001	2002	2003	% change 03/02
All Arrivals	2,838,322	3,190,027	3,559,959	3,632,135	2.0%
Tourist Arrivals	1,365,504	1,386,810	1,505,008	1,458,222	-3.1%
Tourism Receipts (million JD)	482.7	463	515	534	3.7%

Table 2 summarizes Jordan’s current ranking in its competitive country set, here assumed to be the MENA countries as identified by the World Tourism Organisation in its exceptional database.

Table 2. Jordan and MENA* International Visitor/Tourist Arrivals 2002
1. Source Region	2. MENA International Arrivals (000)	3. Jordan's Current Share of MENA Int'l. Arrivals		4. MENA Region's Market Shares	5. Jordan's Competitive Index#	6. Jordan's Volume % of Market Leader		7.Market Leader
From Middle East	12,629	10.7%		46.6%	178	32.0%		Saudi Arabia
From Europe	7,028	2.6%		26.0%	43	5.3%		Egypt
From Americas	1,077	2.8%		4.0%	47	11.1%		UAE
From All Other Regions	6,345	1.0%		23.4%	17	2.3%		Saudi Arabia
Overall	27,079	6.0%		100.0%	100
*Excludes Kuwait, Palestine and Yemen since 2002 data are lacking
#Jordan's proportion of its international visitors from the region divided by its overall share of visitors to the MENA region.
Source: World Tourism Organization and George Washington University

Collectively, the MENA countries hosted more than 27 million international visitors in 2002 (column 2). Nearly half of Jordan’s visitors came from other MENA countries (column 4). Column 3 indicates Jordan secured nearly eleven per cent of these visitors, even though it attracted only six percent of all international visitors to MENA countries. This indicates Jordan was quite competitive in attracting MENA international travellers. Jordan’s Competitive Index in Column 5 shows that Jordan attracted 78 percent more than its “fair share” of international visitors from MENA countries than would be expected from its overall market share of 6.0 per cent. However, it garnered 43 percent or less of the other source region visitors to the MENA region.

However, Jordan is much less successful attracting visitors from Europe or the Americas than the average MENA destination country. Its competitive index in column 4 indicates it currently attracts only 43 percent of its fair share of European visitors, and 47 percent of its fair share from the Americas. Jordan is currently attracting eleven percent or less than the MENA region’s market leaders for these source areas (columns 6 and 7). In short, Europe and the Americas appear to be lucrative regions for Jordan to target additional international visitors.

2. TOURISM STRATEGY

To succeed as a world class destination, Jordan should adopt a competitive approach focused on sustaining the positive momentum now underway and leveraging its strengths in the future. Essentially this is a strategic decision to seek to market Jordan to customers willing to pay a higher price for quality experiences.

Vision

Tourism is an essential and vibrant growth sector that will sustainably contribute to improving the economic and social well-being of Jordanians.

Mission

Jordan will sustainably develop the tourism economy of Jordan through results- driven partnership of Government, the Jordan Tourism Board, private sector and civil society to expand employment, entrepreneurial opportunity, social benefits, industry profits and state revenue.

Tourism Growth Targets

Goal:

Double Jordan’s tourism economy by 2010

Required Investment:

• 
  4% of national tourism receipts allocated for international marketing and product development
  

Results by 2010

• 
  Receipts of JD 1,255 billion (USD $1,773 billion)
  
• 
  Taxation yield to the government of JD 439 million (US $621 million)
  
• 
  88,659 jobs—an increase of 46, 075 from 42,585 in 2004
  

3. VALUE CHAIN APPROACH

Value Proposition

Jordan will create a public/private sector partnership and the necessary resource allocations to attract and satisfy the needs of high yield customers seeking a perfect travel experience resulting from exposure to a world class patrimony of cultural and natural heritage delivered in a secure, peaceful destination, by friendly and welcoming hosts.

Value Delivery System

Jordan’s value delivery system will be driven by a passion, pride and confidence that visitors will experience the best that Jordan can offer through positive human interactions in a safe and secure destination committed to world peace, cross cultural understanding and sustainable development.

Assumptions

• 
  The first consumer travel decision focuses on where to go not which product.
  

• 
  The government of Jordan is the largest stakeholder in tourism. The JTB is its marketing representative and principal means of partnering with the private sector.
  

• 
  Low-cost web-enabled technology tools are reducing the dependence on antiquated mainframe computer systems and traditional distribution channels.
  

• 
  In this very fragmented and complex industry, the single universal commonality shared among all public and private stakeholders is the traveller who seeks to navigate seamlessly around the globe from destination to destination, supplier to supplier, and complete multiple transactions in a secure environment.
  

• 
  Creating a partnership with customers will help Jordan maintain the focus the country needs to make good decisions and harness the power and commitment it needs to weather volatile times. Customer partnership means finding mutually satisfactory solutions to shared problems and a dedication to excellence in every sale or service encounter. It also requires commitment to forging long-term
  

• 
  relationships that create synergies of knowledge, security, and adaptability for both parties.
  

• 
  A travel supplier’s inventory is a perishable product. A supplier cannot go backwards and sell yesterday’s unsold hotel room, attraction ticket, or air seat. A supplier’s bottom-line is dependent on distributing this perishable inventory at the lowest possible distribution cost, at the right time.
  

• 
  For most operations, only a small fraction of the total time and effort actually add value to the end customer. By clearly defining "value" for a specific product or service from the end customer's perspective, all the non-value activities - or waste - can be targeted for removal step by step.
  

• 
  Transition to knowledge-based economies has made establishment of effective employee empowerment mechanisms within companies crucial to their competitiveness.
  

Operational Guidelines

For Jordan’s value delivery system to be effective it is essential to:

• 
  Make it easy for the consumer to purchase travel to Jordan by strengthening the usability of distribution systems worldwide.
  

• 
  Maximize the use of continuously evolving information and communications technologies.
  

• 
  Unite the industry’s public and private sector around the common customer by focusing constantly improving the quality of tourism products and services.
  

• 
  Reduce the cost of distribution for suppliers.
  

• 
  Make tourism measurable on an on-going basis.
  

• 
  Provide cooperative funding from the public and private sector to reduce the affects of destination-adverse threat—both real and perceived.
  

• 
  Reduce the effects of destination-adverse threats—both real and perceived.
  

The economic value of tourism arises entirely from the expenditures made by domestic and international visitors. The strategy envisages that a “tourism value chain” approach will be institutionalized as the methodology for analyzing the process and identifying opportunities to increase value through positive action or the elimination of barriers. The

total travel experience describes pre-trip planning and selection activities, the on-site experience and post-trip outcomes focused on each of the niche market segments:

The group identified 12 tourism segments with potential for long-term development. These segments were then prioritized according to product readiness and resources availability. The group identified the key priority segments that could provide high returns provided adequate product development and enhancement effort were exerted.


Accordingly, it was agreed that the long-term strategy would focus on the following eight segments:

1. 
   Archaeology
   
2. 
   Religious Tourism
   
3. 
   Ecotourism
   
4. 
   Health and wellness
   
5. 
   Cruising
   
6. 
   MICE
   
7. 
   Adventure
   
8. 
   Education
   

Other potential tourism segments to be considered in the future include:

• 
  Filming and photography
  
• 
  Festivals and cultural events
  
• 
  Summer and family holidays
  
• 
  Sports
  

Please refer to Annex 1 for an example of how each priority segment was addressed within the value delivery system