Chapter 3

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Chapter 3Special Considerations in

Planning and Development

World of Resorts: From Development to Management

Third Edition

(424TXT or 424CIN)

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Competencies forSpecial Considerations in Planning and Development

1. Identify the various stakeholders in a proposed resort development and outline how their perspectives generally differ.

2. Describe the process and tools used to determine the market feasibility of a proposed resort development.

3. Explain the elements involved and hurdles the developer must typically overcome in order to obtain financing for a resort development.

4. Identify nine forms of resort ownership and explain reasons for the growing use of the interval/fractional ownership model.

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Competencies forSpecial Considerations in Planning and Development

5. Describe common social impacts of resort development, how they can be measured, and how negative impacts can be mitigated or better controlled.

6. Describe various economic impacts on a community of a resort development, including (when possible) how to measure them.

7. Describe important physical and environmental impacts of a resort development on its location.

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Nine VALS-Classified Market Segments

1. Survivors

2. Sustainers

3. Belongers

4. Emulators

5. Achievers

6. I-am-me’s

7. Experientials

8. Societally conscious

9. Integrated

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Criteria in Lenders’ Evaluation of a Resort Loan

1. Capital requirement of the overall resort development

2. Potential of the project as a solid business enterprise

3. Income and cash flow projections

4. Expertise of the operator

5. Owner’s ability to repay

6. Security for the loan

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Nine Forms of Resort Ownership

1. Individual ownership

2. Interval/fractional ownership

3. General partnership

4. Limited partnership

5. Joint venture

6. Corporate form

7. One or more entities

8. Management agreement

9. Equity participation

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Cottington’s Conclusions About the Social Impacts of Resort Development

• Loss of self-respect among husbands of working women.

• Jealousy of some husbands whose wives had to dress up to serve hotel guests.

• Increased anxiety and illness among females who were unaccustomed to and unprepared for the increased pressures and responsibilities of working for the first time.

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Smith’s Conclusions About the Social Impacts of Resort Development

• Increased family income visibly raised the standard of living in the community.

• New skills and salaries gave the employed women a sense of increased self-worth and accomplishment.

• Expanded social contacts with fellow employees and tourists produced and expanded awareness of the outside world among the women workers.

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Smith’s Conclusions About the Social Impacts of Resort Development

• Family roles appeared to be changing for the better as husbands assumed more of the household and child-rearing chores.

• Husbands were beginning to respect their wives as competent individuals able to hold good jobs.

• Increased income and an expanded world view might result in more opportunity for higher education for the workers’ children.

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Factors Determining Absorption of Newcomers into a Resort Community

• How well newcomers fit into the cultural fabric of the community

• Urban/rural character and size of the community• Degree of unemployment in the area• Added burden on existing social services imposed

by newcomers• New demands for housing and supporting

infrastructure

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Reasons the Resort Industry Leaks Its Revenues

• Resorts are heavy consumers of imports

• Resorts are often financed outside of the host community

• Resort jobs attract a large number of newcomers and seasonal workers who are not permanent residents

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Ways to Increase Economic Benefits in a Resort Community

• Add new attractions/services to stimulate guest/visitor spending

• Develop full-service lodging over limited-service forms

• Target market segments with higher propensity to spend

• Outsource locally

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Four Kinds of Impacts of Resort Development

1. Physical/chemical/biological elements of land, water, and air

2. Ecological system, including terrestrial and aquatic species, flora, fauna, and fragile life forms

3. Archeological resources, including ancient burial sites and recovery of artifacts

4. Visual environment in terms of landscape or townscape

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Measures Taken to Relieve Local/Visitor Congestion in Resort

Destinations• Commissioning of carrying capacity studies for

determining public policy on limits to growth• Restricting the length of visits in high-demand, sensitive

natural attractions to reduce the impact of human footprint• Allocation of quotas to distributors for specific attractions

to ensure fairness of access; imposition of sellers’ fees; pre-ticketing measures

• Imposition of user fees on popular attractions to abate demand and use funds to help pay for wear and tear caused by human traffic

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Measures Taken to Relieve Local/Visitor Congestion in Resort

Destinations

• Stricter zoning and requirement of master plans for resorts, including projections of future growth and expansion needs

• Special traffic provision for major public facilities, such as convention centers, exhibition halls, museums, arenas for sporting events, parks, etc.

• Active traffic management in the destination with the use of technology and special procedures to deal with temporary congestion during peak traffic periods

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