The Evolution of a Tourism Delivery System: Marketing Garden Clusters on Vancouver Island

Tourism Delivery System Marketing Cluster

The Evolution of a Tourism Delivery System:
Marketing Garden Clusters on Vancouver Island

Royal Roads University
Dustin Bodnaryk, Ray Freeman, Barbara E. Smith
July 14, 2010

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Table of Contents
Introduction………………………….……………………………………………...................3
Cluster Constructs and Collaborative Marketing…....................................................................4
Stakeholder Partnerships….........................................................................................................6
Structure of Clusters…………………………………………………………...........................10
Collaboration…………………………………………………………......................................11
Regional Development Challenges…………….………………………………………………14
Product Differentiation…...........................................................................................................17
Market Segmentation…………………………….….………………………………………....18
Understanding the Market…………………….….…………………………………………....20
The Internet and Technology…..................................................................................................21
Innovation……………….…………………………………………………………………......22
Destination Management Systems…………………………………………………………......25
Media Relations………………………………………………..................................................27
Leadership and Clusters………………………………………………......................................27
Hatley Park Marketing Strategy……………………………………….....................................28
Recommendations......................................................................................................................30
Limitations and Considerations..................................................................................................32
Conclusion………………………….…………………………………………….....................32
References………………………….…………………………………………….....................33

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Introduction
This paper proposes to support the development of an effective tourism delivery system
with a focus on a marketing strategy, which leverages, enhances and delivers the identity of
Hatley Park National Historic Site (HP NHS, n.d.a.) to desired tourism market niche consumers.
Through collaboration of competitive and complementary businesses and organizations
including Hatley Park, the Vancouver Island regional cluster of gardens and supporting
businesses form a single tourism product, “The Garden Trail” to market globally. Using cluster
theory as a framework (Porter, 1998), this paper examines the collaborative structure, processes
and success factors of garden clusters on Vancouver Island conducive to globally marketing
competitive tourism products. The Hatley Park identity has been created through collaboration
with stakeholder partners, including: Royal Roads University (RRU), Tourism Association of
Vancouver Island (TAVI), the British Columbia Ministry of Tourism, Culture and the Arts
(MTCA), the Canadian Tourism Commission (CTC), Parks Canada, and other supply chain
intermediaries and partners.
The primary basis for a marketing strategy is to identify and highlight the unique array of
destination amenities offered in alignment with evolving trends towards supporting positive
experiential tourism opportunities (Arsenault, 2005, p. 2; Oh et al., 2007, p. 119). Utilizing a
disciplined marketing process, Hatley Park National Historic Site in conjunction with
stakeholder partners may cost-effectively enhance the reach of their marketing matrix strategy by
leveraging emerging technology trends and resources (Harris, 1995, p. 613; Ritchie & Crouch,
2003, p. 173). While striving to effectively identify, target, and reach appropriate and desirable
prospective consumer market segments through a disciplined and dynamic marketing strategy,

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this approach presents the opportunity for successful outcomes if the customer experience is
incorporated into the plan (Hanlan, Fuller, and Wilde, 2006, p. 7). This paper asks: What is the
most appropriate and effective tourism delivery system for Hatley Park National Historic Site, in
order to identify, target, and reach appropriate and desirable prospective consumer market
segments (Hanlan, Fuller, & Wilde, 2006, p. 7).
In efforts to further investigate and understand the concept of a tourism delivery system
in the area of marketing a cluster product to an international market, this paper examines the
evolution of a proposed tourism delivery system through a cluster framework. “A tourism
delivery system can be thought as a collection of components that work together to produce an
outcome that is economically worthwhile from the perspective of the component stakeholders”
(M. Conlin, personal communication, April/May, 2010). Various existing models were
considered and are included as the authors' endeavor to conceptually create a model representing
the evolution of the tourism delivery system. The complexity of the model is revealed in the
following discussions on product development, stakeholder partnerships, cluster concepts,
regional development challenges, technology, innovation, the internet, destination management
systems, media relations, development and structure of clusters, collaboration and leadership.
Concluding comments highlight recommendations to Hatley Castle National Historic Site in
light of the research observations.
Cluster Constructs and Collaborative Marketing
With increasing interest in experiential tourism opportunities (Arsenault, 2005, p. 2; Oh,
Fiore, and Jeoung, 2007, p. 119) Hatley Park National Historic Site is well positioned to develop
and present this tourism operation as a distinctive tourism destination in an increasingly
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competitive global marketplace (Ritchie & Crouch, 2003, p. 11). Through a well-designed
tourism delivery system plan (Scott, Baggio, & Cooper, 2008, pp. 72-73) in collaboration with
strategic stakeholder partnerships (Tourism Vancouver Island, 2009); supported by a disciplined
strategic marketing process (Harris, 1995, p. 613), Hatley Park stakeholder partners can take
steps to ensure that they may more effectively meet target tourism visitors’ expectations and
needs while fulfilling collaborative strategic interests.
Hawkins’ asserted (2002, p. 7), it may be considered suitable to apply a structured market
analysis framework towards developing a marketing strategy. This approach draws upon
Porter’s (1998) description of the availability of local factor conditions (in this case, the
amenities presented at Hatley Park) and reinforces the need to effectively address consumer
demand conditions; those being, the encouragement of local competitive innovation derived from
high consumer expectations. In order to take advantage of competitive innovation, Hawkins
(2002, p. 4) suggests that planners consider the nature of applicable consumer demand factors,
specifically: volume and growth of demand, source and caliber of markets, as well as tourist
behaviour and levels of sophistication.
Porter (1998) described clustering as, “geographic concentrations of interconnected
companies and institutions in a particular field” (p. 78) and as “an alternative way of organizing
the value chain” (p. 80). Porter argued that clusters have a major impact on competition by
encouraging further innovation, growth, and productivity of the collective group of companies,
“a cluster allows each member to benefit as if it had great scale or as if it had joined with others
formally – without requiring it to sacrifice its flexibility” (p. 80). Hawkins (2002) defined a
competitive cluster as an organized set of strategic “activities and services” delivered through a

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supply chain of participating stakeholders; including, the communities, government, destination
marketing/management organizations (DMO’s), intermediaries, and other associated strategic
partners (p. 1).
This competitive cluster framework and strategy creates a comparative advantage through
promotion of the destination’s amenities (Hawkins 2002, p.1). The development of a marketing
strategy, delivered through a structured tourism delivery system model, based upon a competitive
cluster framework as suggested by Hawkins’ model and Porters’ theory, may be effective if
created in alignment with the vision statement and key objectives designed to build tourism
capacity through collaboration with strategic partners at the destination, in the region and along
the tourism delivery system value chain. Subsequently, a marketing strategy may be developed
with a view towards considering a concise set of technical components focusing on attracting the
interests of tourists through market analysis, competitive analysis, market segmentation, and
positioning strategy (Harris, 1995, p. 607).

Stakeholder Partnerships

Many tourism operators do not clearly understand the benefits of cooperative marketing
efforts with local “competitors” or “conglomerate allies” within their own region towards
building capacity and enhancing the competitiveness within a region against other destinations
on a more global scale. Destination planners, DMOs, and stakeholders need to encourage a
process, which facilitates the balanced requirements of all parties in order to achieve collective
success (Buhalis & Spada, 2000, pp. 42, 52-54, 56). According to Lovecock & Boyd (2006, p.
144), Timothy (2001, p. 158) argued a collaborative approach for multiple stakeholder and multijurisdictional destination planning encourages sustainable efficiency, integration and stability
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through concerted promotional and marketing efforts. Furthermore, Lovecock & Boyd (2006, p.
146) cited Oliver (1990) who identifies a number of ‘critical contingencies’ for interorganizational relationship formation:
Figure 1. Incentives for Relationship Formation for Inter-Organization Relationships






Reciprocity: Organizations seek to facilitate exchange of resources;
Efficiency: Organizations seek to reduce the cost of service delivery;
Stability: Organizations seek to reduce uncertainty and share risks;
Necessity: Where the relationship is mandated by external force;
Legitimacy: Where the organizations concerned seek to demonstrate the norms of
cooperation.

Source: Oliver (1990, p. 146).

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The evolution of cluster and stakeholder constructs applicable to “The Garden Trail” on
Vancouver Island may be described as follows:
Tourism Delivery System Evolution for Marketing Garden Clusters on Vancouver Island
Figure 2. Localization of Vancouver Island tourism suppliers

Source: Bodnaryk, D., Freeman, R., Smith, B.E. (2010).
This figure depicts cluster stakeholders prior to the development of “The Garden Trail”
cluster as each independently markets to a broad base of international markets. The inner circle
and outer circle represents the competitive space within which stakeholders operate and the
various sizes represent the degree of commitment to and involvement with international
marketing efforts.
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Figure 3. Cluster development of Vancouver Island tourism suppliers.

This figure highlights the developing cluster of stakeholders creating a single tourism
product, “The Garden Trail”, targeting desirable niche consumers within the United Kingdom
(U.K.) market. A central leadership role for marketing strategy development and delivery to the
supply chain is undertaken by the Tourism Association of Vancouver Island. The overlapping
stakeholders and size differences reflect a “learning community” interconnecting and committing
collective resources towards developing a shared a common vision (Morrison, Lynch & Johns,
2004, p. 203).

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Figure 4. Tourism Delivery System for International Marketing of Clustered Product

This figure showcases the interconnectedness of horizontal, vertical and diagonal cluster
stakeholders focused on key distribution channels and more specific U.K. market channels
within the desired international target marketplace.
Structure of Clusters
Michael (2003) described the “forms of clustering” as “horizontal clustering, diagonal
clustering and vertical clustering” all supporting the optimal cluster of firms (p. 137).
Accordingly, the horizontal clusters are like-minded businesses and competitors conducting

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business in the same geographic location seeking a shared customer. The vertical clusters are the
traditional value chain businesses which provide goods and services to the optimal cluster of
firms. And finally, the diagonal clustering refers to complementary or symbiotic firms which are
distinctive businesses that provide additional value and support to the main cluster (pp. 138-139).
It was suggested by Bradenburger and Nalebuff (1997, as cited by Michael, 2003) that diagonal
clustering firms add value to the tourism visitor and therefore can positively impact their
decision to purchase the tourism product. The salient points made by Michael (2003) clearly
indicate that tourism growth is more about forming strategic alliances and clusters with likeminded businesses in the same geographic area than it is about competition (p. 138).
Findings from case studies conducted by Morrison, Lynch and Johns (2004) indicated
there is a significant role undertaken by a “hub organization” in the initiation and organizational
structuring of the network (p. 202). In the case of “The Garden Trail”, it is the Tourism
Association of Vancouver Island that is taking the lead role in leadership and organization
specific to cluster marketing initiatives. Morrison et al. confirmed that the core of the network is
the knowledge and information exchange amongst members and the “glue” is the common vision
and purpose of the group. Morrison et al. further advocated a “sense of community” which can
result from fully functioning networks leading to a concept of “learning communities”: “A
learning community is concerned with the concept of networks of networks, meshing and
interconnecting diagonal, horizontal and vertical organizational types and configurations as
appropriate” (p. 203) to build and enhance collective capacity.
Collaboration
Strategic alliances are purposeful arrangements between two or more independent

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organizations that form part of, or are consistent with the overall strategy, and contribute to the
achievement of the objectives that are mutually beneficial to the parties involved. Organizations
and businesses enter into collaborative relationship with different motivations ranging from
social to economic to strategic (Youcheng & Zheng, 2007, p.78). In the example of Hatley Park
National Historic Site, participating in a strategic alliance within a cluster and bundling services
together to form a single product such as the “The Garden Trail” product allows smaller firms to
tap economics of scale and scope. “Firms add value to the cluster’s activities by integrating or
bundling complementary services into a single product for sale – in effect, allowing firms to
diversity their activities to meet the needs of a target group of consumers” (Poon, 1994, p. 224,
as cited by Michael, 2003, p. 139). As the product cluster grows, each member of the vertical,
diagonal and horizontal segments of the cluster benefits from their involvement through
accessing specialized market information, specialized labour, infrastructure, lower costs, greater
capacity and the opportunity to increase visitations. The benefits of collaboration may be
significant and far-reaching to the growth of business and the development of a community
(Michael, 2003, p. 140).
As an example, Fyall, Leask and Garrod (2001) informed that Scottish tourism attractions
welcomed the opportunity to collaborate jointly. Not only were collective branding, theming and
packaging seen as benefits to interorganizational collaboration but also necessary for survival in
a highly competitive environment (p. 212). Fyall et al. advocated that collaboration amongst
Scottish attractions has many advantages including sharing of resources, attainment of common
strategic goals and “maximizing the appeal of the generic product” (p. 217). Other benefits of
collaboration as noted by Fyall et al. included the mutual benefit of pooling resources (staff,
time, finance, training and expertise), reduced individual risks, increased business profile, and
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increase product exposure through joint-marketing activities accessing many different
distribution channels (p. 217). A study by Kanter (1994, as cited by Fyall, Leask & Garrod,
2001, pp. 224-226) highlighted 37 companies and their partners from 11 regions of the world
confirmed five underlying principles for successful collaboration:
Figure 5. Principles for successful collaboration
o partners’ strategic goals should converge while their competitive goals
diverge
o the relative size and market power of partners should be modest compared
with industry leaders
o each partner should believe that it can learn from the others and at the same
time limit access to proprietary skills;
o the collaborative alliance should be regarded as a relationship rather than a
mere exchange
o there should be an overall consensus as to the general ‘mission’ of the
collaborative alliance
Source: Fyall, Leask & Garrod (2001, pp. 224-226).
According to Kanter (1994, as cited by Fyall, Leask & Garrod, 2001, p 223) “successful
collaboration is by no means a matter of chance; it tends to be associated with a number of
features specific to the partners and the market environment in which they operate.” Moreso,
Kanter (1994) proposed individual partners in the group need to adopt a holistic attitude toward
achieving the group’s shared vision (p. 223).
Similarly, five success factors of tourism networks are defined by Morrison, Lynch and
Johns (2004) as: having clearly identified collective objectives and goals incorporating the
regional and national priorities; having key leaders who recognize the benefits of exchanging
knowledge and information across all levels; having an organizational structure that includes all
stakeholders and public sector organizations; having adequate financial, human and physical

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resources; motivating members with economic, social and psychological benefits and supporting
interorganizational learning through exchange of ideas and knowledge (p. 201).
Regional Development Challenges
Hawkins (2002, p. 4) suggested that undertaking a marketplace analysis with a focus on
regional collective factor and demand conditions can build the capacity of the competitive
cluster, resulting in lower operating costs and improved product offerings as well as facilitating a
quality experience for tourists and competitive advantage for the cluster. This approach reveals
the following primary issues and challenges for the Vancouver Island Region namely:
Figure 6. Primary issues and challenges for the Vancouver Island Region

1. Challenges to access, including, for example, immigration control requirement for US
travelers to carry passports.
2. Uncertainty of fuel prices, and the US economy.
3. Limited new product development within the Region may be limiting yield.
4. Fragmentation of Vancouver Island’s tourism industry and instability in some community
DMOs.
5. Transportation costs and access constraints limit market growth.
6. Labour market challenges limit industry growth.
7. Limited awareness of the value and importance of tourism in some Vancouver Island
communities.
Source: Tourism Vancouver Island (2009, pp. 9-11).
Furthermore, using the Vancouver Island Visitor Exit Survey (Tourism Vancouver Island, 2008),
data was acquired from intercept interviews querying visitors on: their geographic origin,
demographics, primary travel motivators, and subsequent trip satisfaction. Overlaying survey
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results with the community tourism plan issues and challenges allows planners to confirm target
group definition, identify gaps in the plan, reveal market trends/opportunities, and adjust
strategic components validated by stakeholder consultation (Harris, 1995, p. 605). To
subsequently ensure effectiveness of the marketing strategy, Tourism Vancouver Island
“(created) a research program in cooperation with the private sector to measure growth and the
effectiveness of marketing initiatives” (Tourism Vancouver Island, 2009, p. 13).
In the following figure, Key Factors in Collaborative Regional Tourism Destination,
(Naipaul, Youcheng, & Okumus, 2009) outlined the areas of; (1) facilitating factors, (2) potential
outcomes, (3) motivations for collaboration, and finally (4) inhibitors for collaboration, (p. 469):

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Figure 7: Key Factors in Collaborative Regional Tourism Destination
Facilitating Factors
-Independent communities with common
operating philosphy
Geographic Structure;good personal
relationship and constant
communication;Complimentary
Products;Fair Share of Benefits and
responsibiities

Outcomes of Collaboration
-A formal single marketing program;wider
market reach
Cost efficiency;Shared economic impact to
regions

Collaborative
Regional Tourism
Destinations

Inhibiting Factors

(1) From Individual Communities/DMO's
Motives for Collaboration
-Enhancing tourism product; leveraging on
each others unique tourism products; cost
reduction and efficiency.

-Different priorities; different marketing
directions; lack of actions and focus;
constraints of human and financial
resources
(2) From Stakeholders
-Perceived risk; additional labour and
resource requirment

Source: Naipaul, Youcheng, & Okumus (2009, p. 469).
Supporting these key factors, Wilson, Fesenmaier, Fesenmaier, and van Es (2001, p. 151) argued
that “although the community and partnership approach may be an effective way to develop and
promote tourism, creating the necessary inter-community cooperation and collaboration is a
complex and difficult process.” Previous academics provide literature on the challenges of
implementation of collaborative alliances stemming from; (1) the fragmented nature of
individual interests of tourism stakeholders within a region; (2) the fact that no single agency can
control and deliver a rich combination of tourism product; and (3) and that a collaborative
strategy at a regional, provincial, national, or international level requires a great deal of
coordination, communication, and building consensus, (Jamal & Getz, 1995, p.186).
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Product Differentiation
Hatley Park National Historic Site offers a “Superb Canadian example of an Edwardian
park that remains practically intact” (Parks Canada, 2009, p. 110); however, undertaking a
competitive analysis is necessary to identify competitive product offerings, reveal opportunities
for innovation, and support creation of an inimitable market niche for the destination (Gu, 2006,
p. 382). Highlighting the uniqueness of a tourism destination is a strategy that is critical to the
destination’s ability to build community capacity, to the benefit of stakeholder partners (p. 383).
Analysis of competitive destinations may identify best-practices and highlight opportunities to
showcase unique characteristics of destinations enabling a destination to develop a more
effective target market strategy (Ritchie & Crouch, 2003, p. 27). Vancouver Island, as a whole,
provides travelers with many of the attributes desired by major demographic markets (Ritchie &
Crouch, 2003, p. 20). For a number of years running, Vancouver Island has been chosen by
Condé Nast Traveler readers as one of the top Islands in North America, often topping the list
(Concierge.com, 2009).
Putting competitive advantage into perspective for Hatley Park National Historic Site,
Ritchie and Crouch (2003, p. 67) referred to Porter (1980, 1990) informing that destinations
which compete in localized markets may also cooperate when promoting the greater region as a
combined destination when attracting visitors from outside the region. In this case, Hatley Park
National Historic Site is well positioned to collaborate with the local and regional DMO’s,
competitors, adjacent communities as well as the BC Ministry of Tourism, Culture and the Arts,
and the Canadian Tourism Commission to participate in the combined cumulative and
collaborative promotion of all destinations, communities and regions on Vancouver Island. As a
combined region, long-haul market tourists may view Vancouver Island as one destination
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(Ritchie & Crouch, 2003, pp. 67, 108), therefore, it would appear logical for local competitors to
combine efforts to promote the entire region as one destination.
Market Segmentation
Kotler, Brown, Adam and Armstrong (Hanlan et al., 2006, p. 7), suggested that the
effectiveness of using a market segmentation approach to determine appropriate and desirable
niche target market consumers may be enhanced using methodologies which are measurable, are
accessible, are actionable, and differentiable. Despite the availability of a number of market
segmentation approaches, Hanlan et al., (2006, p. 24) stated that benefit segmentation is the
preferred approach due to travelers desire to derive positive benefits sought (Hanlan et al., 2006,
p. 12) from experiential travel (Arsenault, 2005, p. 2; Oh et al., 2007, p. 119). Furthermore, this
approach may provide greater insights into traveler motivations when combined with the more
common market segmentation methodologies, such as, demographic and geographic profiling,
especially when applied to a marketing matrix designed to effectively connect with identified
market segments.
Execution of a marketing strategy first requires an understanding of market analysis,
competitive analysis, market segmentation, and product positioning strategy factors. In addition,
Snepenger, Snepenger, Uysal, and Fesenmaier (1993, p. 23) suggested that destinations consider
selected target segments in relation to the resources available to develop a successful marketing
program. Ritchie and Crouch (2003, p. 173) further advised that the selection and delivery of the
marketing mix should consider temporal aspects to determine when best to engage in select
advertising tactics, such as including consideration for seasonal travel influences. Reinforcing
this, Harris (2009) demonstrated that temporal aspects are highly dependent upon the level of
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awareness of the destination and recommended developing a purchase cycle map to support
planning for delivery of marketing and promotional tactics.
Figure 8. Consumer Purchase Cycle

Consumer Purchase Cycle

Source: R. Harris (personal communications, September/October, 2009).
In the case of Hatley Park National Historic Site, a primary tactic would be to focus on
creating initial awareness of the destination and the region for specific identified target niche
consumers, rather than placing more emphasis on branding with an increased depth of
information until the consumer has advanced further in the consumer purchase cycle (Harris,
2009). In order to gain the best market penetration of marketing efforts cost-effectively, Ritchie
and Crouch (2003, p. 173) suggested that marketing efforts could be further enhanced by

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considering the influence of technology on traditional tourism distribution channels as well as
technological influences on consumer decision-making processes. Keeping in mind the
consumers’ desire to engage in a positive and beneficial travel experience, destination marketing
planners need to be cognizant of both technology and customer experience outcomes (Ritchie &
Crouch, 2003, p. 173).
Understanding the Market
For Hatley Park National Historic Site and the overall Vancouver Island “Garden Trail”
program (Tourism Vancouver Island, 2010a), the process of staying in tune with consumers, and
gaining insights into why they purchase the product, and how they purchase the product will
assist in future decision making and enables more effective marketing outcomes for the
Destination Marketing Organization (DMO) and the stakeholder, (Pike, 2008, p.134). According
to the Vancouver Island 2010 marketing plan, (Tourism Vancouver Island, 2010b) the
organization commits 82% or 1.47 million dollars towards the touring market which includes
garden tours, historic sites, and museum visitors. In a recent exit survey by Tourism Victoria in
partnership with the University of Victoria (Tourism Victoria, 2010), the average expenditure per
party per day on Vancouver Island was $247 in 2009, (p.4). In terms of trip planning
information it was shown that many visitors, approximately 30%, relied on friends and family for
trip planning information. A majority used the Internet in some way, while newsprint
advertising was the least used source of information, (p.10). In relation to the specific segment
of visitors to paid attractions and the touring market, it showed that 37.3 percent of the surveyors
toured historical sites with 30.6 percent visiting Butchart Gardens, the premier garden attraction
in Victoria and on Vancouver Island. Analysis of market research assists in identifying
consumer preferences and behaviours, therefore assisting planners in determining appropriate
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target niche market consumers and their preferences.
Target niche market consumers from the United Kingdom which the Canadian Tourism
Commission has identified as most desirable for Canadian Tourism Operators, fall within the
categories depicted in the following figure. Analysis of the characteristics and preferences
described in the CTC “Explorer Quotient” system appears to align well with local factor
conditions available at Hatley Park National Historic Site. HP NHS may find additional research
resources available from the CTC, MTCA, and TAVI available to further analyze potential niche
target market data.
Figure 9. Key U.K. Consumer Groups based on CTC’s Explorer Quotient



Free Spirit travelers in the UK are predominantly over 50 and come to Canada
to see all the main attractions with a group while staying at the most luxurious
accommodations.



Cultural Explorers in the UK are over 50; their primary interest is to have
authentic experiences, which include exploring the ancient history and modern
cultures of the places they visit.



Authentic Experiencers in the UK are also over 50 and are driven by vast
natural settings and wonders; they also like to integrate the local culture,
authentic food and spots off the beaten track into their travels.

Source: Canadian Tourism Commission (2010)
The Internet and Technology
With the advent of rapidly advancing Internet communications technologies, consumers
are becoming increasingly knowledgeable, capable, and sophisticated in their expectations of
tourism operators, hoteliers, and attractions, even from the most developed of countries and
destinations (Pike, 2008, p. 263; Buhalis & Law, 2000, p. 617). Deloitte (2008) informed that
tourism operators who utilize innovative technologies and leading-edge electronic marketing
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resources may be better positioned to address increasing international competition (pp. 11, 13,
18). Deloitte emphasized that the use of emerging technologies in alignment with consumer use
of technologies is imperative towards tourism operators benefiting from the use of technology as
a differentiator in the increasingly competitive global marketplace (pp. 5, 18, 20).
Ritchie and Crouch (2003, pp. 5-6) stated that the influences, challenges, impacts and
opportunities of technology on tourism product development and marketing strategies are a
relatively recent phenomenon in the tourism industry. The equalizing affect of the Internet now
allows smaller destinations to compete more effectively and affordably with more powerful
destinations on a global scale. Furthermore destinations and tour operators are now more
capable of enhancing their information and promotional activities to more effectively and
realistically influence visitors expectations prior to travel, while improving the quality of the
visitor experience when visitors are at and traveling through a destination.
Innovation
Pike (2008) referred to Kincaid (2003, pp. 58-59) and advised that the Internet has
enhanced interactions with consumers through increased “access, control, speed, globalization,
and automation”. With the rapid build-out of Internet infrastructure in most parts of the
developed world and many parts of the developing world, consumers may more readily access
detailed information about potential tourism destinations, accommodations and attractions,
therefore gaining more control over purchase decisions. Demand side pressures are increasing
from consumers who have rapidly evolving access to knowledge, Internet capabilities, and
sophisticated expectations of destinations (Pike, 2008, p. 263; Buhalis & Law, 2000, p. 617).
The affects of globalization on the tourism industry have resulted in the commoditization of
many similar tourism products and services, therefore driving down prices and challenging
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tourism destinations, operators, hoteliers, and attractions to strive for differentiation through
cohesive branding strategies and value-added offerings (Pike, 2008, pp. 263, 266-268).
With the emergence of e-commerce and subsequently, e-tourism initiatives; many
participants in the tourism industry are more able to engage in communications with select target
market segments while striving to craft marketing messages conducive to tourism consumer
interests. Palmer (2004, p. 128) indicated that the Internet provides new marketing channels for
tourism operators and DMOs in concert with and beyond traditional marketing strategies. More
specifically, individual tour operations may take the initiative to build a direct-to-consumer
engagement strategy, while simultaneously participating in leveraged collaborative marketing
opportunities through local, regional and national DMO’s to further their market reach (Palmer,
2004, p. 129). These dual strategies allow the tourism operator to customize and personalize
their communications with the end consumer once direct contact has been established. However,
participating in a ‘virtual co-operation’ initiative facilitated by DMOs allows the operator to
participate in marketing activities which may have significantly expanded marketplace reach.
Furthermore, as a part of their mandate, DMOs also strive to build regional capacity and
coordinate stakeholders to ensure that a unified brand or destination ‘image’ is presented to assist
the destination region in providing a cohesive theme or personality, thereby facilitating a unique
selling proposition in comparison to other destinations (p. 128).
While a consumer decides between making a purchase through traditional or e-commerce
channels, operators who package elements of a vacation experience may ultimately be more
efficient and effective utilizing electronic channels. Palmer (2004) illustrated the complexity
(and communications opportunities) within an electronic environment for a tourist destination’s

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‘routes to market’:
Figure 10. ‘Routes to market’ for a tourism destination

Source: Palmer (2004, p. 131).
Ultimately, electronic packaging and channel communications can efficiently and effectively
assist to guide the consumer though the purchase cycle by directing them through intermediaries,
utilizing trusted brand names and/or established business relationships, therefore reducing
potential perceived security risks of a purchase decision through an e-tourism channel. The
combined strategies of accessing customers through direct communications and electronic
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channels can provide innovative, leading-edge, cost-effective access to appropriately identified
target tourism consumer market niches.
Destination Management Systems
Buhalis & Spada (2000) informed that in an increasingly competitive global marketplace,
those destinations and organizations that are able to gain stakeholder participation in developing
a cohesive tourism destination strategy through an effective Destination Management System
(DMS) will be competitively positioned to enhance ‘their collective competitiveness and longterm sustainability (p. 57). Example of a typical DMS:
Figure 11. Structure of a typical destination management system (DMS)

Source: BVG Internet (Palmer, 2004, p. 133).
Note: TIS = Tourist Information System; CRM = Customer Relationship Management.
More succinctly, a comprehensive Destination Management System is the accumulation of realtime information resources for tourists organized from a cluster of tourism industry stakeholder
assets within a destination region and presented in a cohesive fashion to provide a
comprehensive and coordinated delivery of queried results. Buhalis & Spada (2002, p. 42), who
referred to Archdale (1994) suggested that DMSs ‘are often limited in their scope and ambition
by their organizational structure or by their technology’. As examples, Ireland, Tyrol, Austria,
and Singapore have presented themselves as ‘active IT leaders’ by successfully gaining support
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for the development and delivery of their DMSs through collaboration between the public sector
and their respective National Tourism Organizations (p. 52). Essentially, a successful DMS
framework can enhance tourism consumers’ choice, convenience, and confidence, while
ensuring consistency of information and competitive pricing (pp. 54-55). Strong support from
the public sector, combined with investment and expertise from the private sector may position a
destination to execute a successful DMS. Emerging factors indicative of an idealized DMS
include:
Figure 12. Successful destination management systems of the future

Source: Buhalis & Deimezi (2003, p. 126).
Buhalis & Deimezi (2003, p. 288) stated that in order to facilitate the successful
development of a DMS, a (regional or national) Tourist Organization must ‘attract the support
and commitment required from both the private and public sectors’. An understanding of

26


emerging trends and benefits through the provision of a DMS, as identified by the benefits of
Buhalis & Deimezi’s ‘Successful destination management systems of the future’ (Figure 12)
would assist a regional or national Tourist Organization such as the Tourism Association of
Vancouver Island or the Canadian Tourism Commission to influence stakeholders to participate
in a collaborative engagement process in the development of an effective DMS.
Media Relations
B. Nelson (personal communication, July, 2010) advised that a significant focus for HP
NHS marketing and promotional efforts is directed towards relationship marketing with
stakeholder partners. Buhalis (2003, pp. 68-69) informed that relationship marketing initiatives
may be further leveraged through the use of information and communication technologies to take
advantage of the accessibility and efficiencies available through related media vehicles.
Reciprocal relationship marketing may be utilized to leverage the media relations efforts of
strategic stakeholder partners. For example, HP NHS may receive and redirect or distribute
media releases, stories of interest, and social media communications with Royal Roads
University, effectively expanding the target market audience while enhancing the range of
communications. In this way, HP NHS and Royal Roads University create their own learning
community to build collective media relations capacity (Morrison et al, 2004, p. 203; Pike, 2008,
p. 294). “This expansion of the role of media management is consistent with the increased
pervasiveness of communications in business, driven …in large part by technological
development” (M. Conlin, personal communication, April/July, 2010).
Leadership and Clusters
In investigating clusters, the role of leadership and how a leader manages the cluster is
just as important for the individual business operator, territory and region in which the cluster is
27


established, in this case Vancouver Island. Leadership cluster theory, much like clusters
themselves are based in a socio-economic and cultural context (Jackson & Perry, 2008, p.84).
Organizational clusters such as the Vancouver Island “Garden Trail” are dependent upon
individuals working together and depending upon one another to accomplish personal and
organizational goals. It is important that industry leaders build relationships based on trust
within the organization and the staff, but also externally through stakeholder relations, with
tourism operators, municipal governments, and regional tourism organizations. Weick (2001,
p.381) stated that leaders therefore need a consistent vision and defined set of goals applied
within a strategic framework.
In order to facilitate a successful cluster implementation it is important to consider the
management of the many stakeholders so that each are properly engaged (MacNeil & Steiner,
2010, p.441). This is important as not all stakeholders will contribute equal leadership or value
to the overall cause, such as the quintessential role Butchart Gardens has in the overall Garden
Trail product. As an example, the leadership group at Butchart Gardens may act as a supporter,
or mentor for smaller organizations along the way, just as TAVI may take on leadership role.
Hatley Park Marketing Strategy
B. Nelson (personal communication, July, 2010), the Director of Visitor Services at
Hatley Park National Historic Site advised that the current configuration of the attraction was
established in partnership with Parks Canada in 2004. At that time, HP NHS inherited
significant maintenance debt at the time of establishment of Hatley Park as a National Historic
Site. During this transition, the management team shifted the visitor orientation from a primary
focus as a historic site towards becoming a multi-faceted tourism destination. In addition to the
financial burden imposed at the initiation of Hatley Park as a National Historic Site, Nelson
28


advised that Hatley Park continues to face challenges and opportunities posed by being
positioned within a university environment. Furthermore, other significant stakeholder
partnership relationships introduce complexity to the development of a destination management
strategy; including partnerships with local, regional, provincial and federal government agencies,
such as Parks Canada, for example. In addition, HP NHS, like most organizations has been
affected by the global economic downturn over the last two years. As a result of resource
constraints, partnership mandates and/or influences, Nelson informed that a decision was made
to limit marketing and promotional activities and maintain annual visitor numbers to
approximately 10,000 – 12,000.
In 2007 academic programming was introduced into HP NHS as a compliment to existing
tourism and historical programming. Nelson (2010) stated that the introduction of the academic
programming component provides benefit and diversity to the Hatley Park programming
portfolio. Despite the great potential for tourism development at HP NHS, there is currently no
formal marketing plan or program in place due to infrastructure constraints, including a lack of
available parking or washroom facilities necessary to support tourism growth at the site, such as
bus tours from cruise ship traffic. These physical and fiscal constraints influence the
organizational mandate and decision to limit growth and expansion until appropriate resources
are available. However; the future is bright for HP NHS, as plans remain intact to develop the
Robert Bateman Art and Environmental Centre at Royal Roads University, effectively enhancing
the academic programming component of HP NHS.
The diversity and uniqueness of HP NHS positions the destination to showcase the
myriad attributes available at the site, including; First Nations community and culture, the
historical castle development by the Dunsmuir’s, the influence of the Royal Canadian Navy and
29


the site as Royal Roads Military Academy, and more recently, the establishment of Royal Roads
University. So, while HP NHS may be in a holding pattern regarding the current state of its
marketing programming, Nelson (2010) informs that the management team remains highly
engaged in relationship marketing to fortify significant stakeholder partnerships along the
tourism delivery system value chain in anticipation of a brighter future (Buhalis, 2003, pp. 6869). Some of these significant partners include: Royal Roads University, Tourism Victoria,
Tourism Association of Vancouver Island, BC Ministry of Tourism, Culture and the Arts, the
Canadian Tourism Commission, and Parks Canada.

Recommendations for HP NHS:
In consideration of Nelson’s depiction of the state of available resources and local factor
conditions, we make the following recommendations:
-

Due to limited physical infrastructure and fiscal resources, HP NHS is advised to stay the
course in maintaining current visitor numbers in order to sustain the quality of the current
visitor experience and minimize negative social, cultural, and environmental impacts on
the site.

-

HP NHS is advised to continue to focus efforts on relationship marketing with significant
stakeholder partners. This strategy will assist to keep HP NHS top of mind with
stakeholders, while facilitating increased awareness and knowledge transfer to support
development of a “learning community” of stakeholders. Ultimately, stakeholders may
become more involved in strategic problem solving, such as sourcing new or innovative
resources to support HP NHS.

-

Even though HP NHS may not be ready to expand visitor numbers, it remains important
30


to develop and maintain a marketing strategy plan designed to clearly identify key target
market niche’s while remaining vigilant of emerging macro-environmental trends and
evolving visitor preferences.
-

The development of a corporate marketing plan should be applied in consideration of a
planning framework which incorporates stakeholder integration and cluster theories.
Furthermore, this should include consideration of the tourism delivery system along the
value chain.

-

Despite some of the challenges inherent in maintaining stakeholder partnerships with
organizations like Royal Roads University and Parks Canada, these partners may also be
potential sources for additional support and resources. For example, many of the students
in graduate studies programs can offer their assistance for HP NHS in order to meet their
course requirements. MBA and MA Tourism Management students may be available to
assist with strategic marketing initiatives, especially in the case of emerging electronic
marketing strategies and web site development.

-

Internet and communication technologies continue to increase their influence on tourism
industry operators and destinations. HP NHS should analyze market research resources
from stakeholder partners such as Tourism Victoria, the Tourism Association of
Vancouver Island, the BC Ministry of Tourism, Culture and the Arts, and the Canadian
Tourism Commission. Research analysts from these organizations are available to assist
in sourcing relevant market research data and providing interpretive advice.

-

Analysis of competitive destinations may identify best-practices and highlight
opportunities to showcase unique characteristics of destinations enabling a destination to
develop a more effective target market strategy (Ritchie & Crouch, 2003, p. 27).
31


Limitations and Considerations
Opportunities exist for further research into the area of study considering the
development of a structured marketing strategy integral to the tourism delivery system. In the
case of the production of this paper, time limitations effectively constrained the authors’ ability
to provide a more detailed analysis of the strategic stakeholder partnerships inherent or available
along the value chain. More specifically, detailed information related to the U.K. end of the
tourism delivery system was sparse at best. HP NHS may find more detailed target market niche
information available through stakeholder partners, including: Tourism Victoria, the Tourism
Association of Vancouver Island, BC Ministry of Tourism, Culture and the Arts, and the
Canadian Tourism Commission.
Conclusion
In light of a highly competitive and rapidly changing tourism environment, sustainability
for small and medium tourism operators such as Hatley Park National Historic Site may enhance
their market position through the harnessed power of a clustered tourism delivery system. As
tourism stakeholders (private and public, competitive and non-competitive), sharing resources,
knowledge, and a common vision, the greater group may effectively become a more competitive
collective entity better able to rapidly respond to emerging trends and markets. Planners may be
able to execute a more effective marketing plan if built upon a collaborative cluster framework
focused on well-defined target market niche consumers. As evidenced in this report,
collaboration does not come without challenges; however, the resulting gains through
interorganizational collaboration and a strong tourism delivery system are transforming
traditional strategies.
32


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