Macro and Micro Environments

RAMK / Teija Tekoniemi-Selkälä

Source: Ritchie & Crouch 2003
 Global Macro Forces
Geographical
forces

Demographic
forces

Climatic
forces Political Environmental
forces forces

Sociocultural
forces

RAMK / Teija Tekoniemi-Selkälä

Source: Ritchie & Crouch 2003
 Global Macro Forces
• Climatic forces
– Climate change – who benefits?
– Demand from cold to warm and vice versa
• Environmental forces
– Wildlife habitat preservation
– Species diversity and protection, protection of vegetation
– Maintanance of water quality and aquatic biodiversity
– Use of pesticides and the quality of the food system
• Geographical forces
– Geographic frames for destinations are quite stable
– Political changes;
• Disintegration of Soviet Union and Yugoslavia
– Technological changes;
• 1950ties the jet aircraft
• now the space technology

RAMK / Teija Tekoniemi-Selkälä

Source: Ritchie & Crouch 2003
 Global Macro Forces
• Demographic forces
– Demographic changes in Europe and other continents – differences between
contintents
• Impact on especially on leisure travelling
• Sociocultural forces
– Only the history of destinations is unchangable
– Under change; value systems - the expansion of Western values, the way of
working, languages used in communication, food – fast food vs. slow food,
• Economic forces
– Local – national – global; which can be influenced and how much?
– Shift to market economy, international exchange rates, interest rates, the world
economy, the amount of savings of consumers in the banks, …
• Technological forces
– Broad understanding of technology; management of companies in general,
logistical systems, computer reservation systems, Internet
– How to keep up up-to-date both a hardware and software perspectives in
destinations.
• Political forces
– Changes in political idealogies; fiscal (tax, finances etc.), environmental ,
immigration policies
RAMK / Teija Tekoniemi-Selkälä
Source: Ritchie & Crouch 2003
 Global Forces

Tourism Tourism supply

-Volume of
Destination Mgnt DMO -Core resources
Travel and attractors
Destination
-Nature of Policy -Climate and
Travel -Resource -Ultimate physiography
Stewardship -System definition Responsibility
-Price -Culture
Sensitivity -Marketing -Values -Type of org.
-Activities
-Temporality -Organisation -Vision -Structure
Of demand -Events
-Information -Positioning/ -Size
Branding -Superstructure
-Service -Membership
-Development -Supproting factors
-Integrated Quality -Funding And resources
-Analysis
-Safety and -Voting
Crisis Mgnt -Monitoring
And Evaluation -Board/stafff
-Sustainability responsibilities
-Audit
-Venture Capital

Source: Ritchie & Crouch 2003

Micro Environment of a Destination
The Destination

Publics
Local destination management organisations

Related and supporting industries

Suppliers Tourism Marketing

And Customers
Inter-
Hospitality Mediaries
companies And
facilitators

Related and supporting industries

Foreign destination management organisations

Publics

The Other Destinations Source: Ritchie & Crouch 2003

 Micro Environment stakeholders
• Publics – public organisations
• Destination management organisation
– The main stakeholder which has the ultimate responsibility of managing a destination
– Different types of governance but most commonly both public and private stakeholders
involved
• Related and/or supporting industries (which has a strong link with the suppliers)
– New innovations and attractions are formed through unconvetional co-operation with the
related and/or supporting industries for example
• Agriculture / farming industry
• Health and beauty etc. related industries
• Sport related facilities and industries
• Cultural activities, art, theatre and entertainmetn industries
• Retail trade, shopping centres/malls (IKEA)
• Construction industry > house fairs, exhibitions
• Mine industry > mine related tourism and other types of production plants >industrial tourism
• Suppliers
– Wholesale trade /suppliers of primary products, processed food, beverage, souvenir, art, clothing,
vechiles, snowmobiles, interior and building material, estates, land, fuel etc.
RAMK / Teija Tekoniemi-Selkälä Source: Applied from Ritchie & Crouch 2003
 Micro Environment stakeholders
• Tourism and Hospitality companies
– These companies are distiquished from the other commercial companies (related and
supporting industries, suppliers, marketing intermediaries etc.)
• in that the products and services are targeted principally at tourist market and
• they have high interaction with tourists,
• however, they do not produce and deliever all of what tourists consume while visiting a destination. Since the
quality of the visitor experience is also formed from non-commercial activities, such as enjoying climate and
scenery

• Marketing intermediaries
– Tour operators, travel agents, travel shows or exhibitions, incentive travel houses,
meetings and convention bureaus/planners, tourism information centres, information
kiosks, global distributions systems or computer reservation systems etc.
• Facilitators
– Financial institutes (credit cards, travellers cheques, currency exchange), insurance
companies, advertising/marketing agencies, market research agencies, information
technology providers and Internet

RAMK / Teija Tekoniemi-Selkälä