Collaboration among key players is a fundamental ingredient in sustainable development efforts. To this end, this article discusses stakeholder theory and its application as a normative planning model, and introduces the relationship/transaction strategy continuum as a tool for applying this theory in development. In this application, planning authorities are directed to identify and proactively consider the transaction vs relationship orientations of key stakeholders. Congruency across this orientation increases the likelihood of collaboration in service delivery. In presenting case instances of tourism efforts, the application of the proposed stakeholder orientation matrix is illustrated. The article concludes with market segmentation strategies designed to promote alignment of the stakeholder orientations.
Tourism exists as a powerful economic force in the development of both community-based and global markets. Today, its activities comprise the worlds largest industry with over three trillion dollars in revenues produced (Clegg 1994). Despite its economic significance, debate continues as to whether or not tourism truly benefits all entities involved in its system. At a most basic level, two schools of thought exist regarding its role in community and/or market development (Lea 1988). The political economy view posits tourism as an exploitative force which emanates from the desire of affluent middle classes in metropolitan countries (Lea 1988). This somewhat fatalistic view suggests that residents of a destination have little, if any, voice in the developmental process of the tourism function and, as a result, can only react to its consequences on their home environment. Indeed, the industry is often criticized for its rather imposed planning decisions on the local population from outside groups or planning bodies (Keogh 1990).
Alternatively, the functional view approaches tourism as a proactive force which, if developed appropriately, seeks to maximize positive returns to a communitys overall growth while minimizing the costs to the environment and culture. A functional approach suggests that all parties—or stakeholders—interested in or affected by this business within a particular market or community should collectively manage the tourism system. This co-operative approach toward its development is advocated in research involving collaboration and development (Keogh 1990). Jamal and Getz define these collaborative efforts as a process of joint decision-making among autonomous, key stakeholders of an inter-organizational, community tourism domain [designed] to resolve planning problems of the domain and/or to manage issues related to the planning and development of the domain (Jamal and Getz 1995:188). The purpose of this article is to extend this research base by conceptualizing how multiple stakeholder interests can be managed in tourism development and planning processes.
This article conceptualizes how stakeholder theory as a normative tourism planning tool can be used to promote collaboration among key players in the planning process. More specifically, it suggests that planners must proactively seek to include those stakeholders agreeing with the planners strategic orientation towards the tourism service. Still, this very approach requires planners to understand the difference between relationship and transaction based efforts. This article provides the foundation upon which additional research can be conducted to examine how planners can more proactively seek out and manage stakeholder relationships to better promote the creation of collaborative and sustainable tourism ventures. Still, it is important to consider how current trends in the industry might influence the viability of proactive stakeholder management.
The1998 Travel Outlook Forum encouraged many industry experts to share their opinions regarding developing trends in the industry. A review of the conference topics suggests many interesting possibilities for the future application of stakeholder theory. For example, in Jonathan Tischs keynote address, particular attention was given to the role of partnerships (i.e., strategic alliances) in the future success of tourism in the United States. The speaker advocated co-operation, as opposed to competition, if all industry stakeholders (e.g., travel agencies, hotels, airlines, and destination cities) are to truly realize the benefits of the rapidly growing industry (Goeldner 1997).
The ultimate utility of stakeholder management also stands to be affected by the industrys increasing reliance on information technologies. As PC-based reservation systems and similar technologies expand, the industry may very likely see a decrease in the need for onsite travel consultation. This can lead to a more centralized structure of tourism specialists, characterized by a half dozen global travel companies, and a limited number of carrier groups (Goeldner 1997).Even if the reduction in industry participants is not nearly so significant, it does seem likely that information synergies will cause tourism to shrink somewhat. In these circumstances, stakeholder management may become a bit more complicated. The primary participants may seek relational approaches with their final consumers to encourage brand loyalty and repeat purchase. Even so, the end users may seek a wide variety of tourism experiences, demonstrating a preference for new destinations instead of those they have visited before. In these circumstances, the companies will seek to build strong relations with their suppliers (e.g., independent hotel operators, resort chains, restaurateurs) to ensure high levels of quality to their ultimate customers. Still, the various stakeholder groups must be aligned with respect to either transactional or relational orientations.
All in all, the outlook for the industry clearly suggests that tourism providers must find ways to operate smarter, and do so in a way that is far more sensitive to the needs and interests of all participants in the process. Stakeholder theory provides managers with a conceptual framework for managing this new challenge. If players proactively consider the interests of all other stakeholders, the industry as a whole stands to gain significant returns in the long term.
