03 Designing rural…
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03 Designing rural…
05 627 Designing rural tourism supply in the region of Navarra Teresa García Ildefonso Grande Department of Business Management Universidad Pública de Navarra Abstract The purpose of this paper is to present a methodological approach to incorporate the demand perspective into the design of rural tourism supply. It is based on a quantitative technique, particularly Multiple Correspondence Analysis, to analyse categorical data. The fieldwork was carried out in the potential rural tourism market of the city of Pamplona. The questionnaire was then distributed among a random sample of 450 persons, selected via simple random sampling. Finally, some useful con clusions to match supply demand and supply are drawn. Key words: Tourisim, rurak tourisim, marketing research, consumer profiles, positioning maps. JEL Code: september · december 2005 · esic market [79] 628 05 designing rural tourism supply in the region of navarra 1. Rural Tourism Rural tourism is quite a broad concept, in that it includes a variety of options, such as camping in the countryside, hotel accommodation in the countryside, stays on farms, etc. The development of traditional tourism has hastened the advent of a new phenomenon involving the mass consumption of nature for both recreational and tourism purposes, (Blanco and Benayas, 1994). The urge of city-dwellers to get in touch with nature is nothing new, what is new is the idea that this form of leisure might be profitable enough to replace certain activities in the crisis-ridden agricultural sector. This has given rise to tourism products based on leisure options that people can enjoy in a rural setting surrounded by nature. This type of tourism is developing in rural areas of inland Spain. The advent of rural tourism can be said to have taken place as the result of several different phenomena: • Society is expressing a demand for alternatives to traditional tourism. Changes in the lifestyle of urban dwellers have made rural tourism all the more relevant. • Rural tourism projects an image of healthy living, of concern for good health, closely reflecting the current mood among urban dwellers. • Rural tourism is rural development tool. Hence its development has been fostered by the latest rural development policies, the main examples being the initiatives deriving from the LEADER projects (Barrado and Castiñeira, 1998). Rural tourism has developed very quickly in our country. Among the factors contributing to the phenomenon are growing interest in this type of tourism at both domestic and international level, this country’s wealth of landscape and heritage, its range of contrasts and the variety of resources and activities it has to offer. Little attempt has been made, however, to exploit these differentiating advantages when planning business strategies to consolidate the sector [80] september · december 2005 · esic market designing rural tourism supply in the region of navarra 05 629 and arouse new expectations in future visitors. Existing rural tourism supply is highly standardised and fails to highlight the contrasts between different areas (Barrado and Castiñeira, 1998), or to take the consumer or user into account. It is interesting to observe the remarks made by Gilbert (1992) with respect to rural tourism, amongst which we might mention: • The existing supply is sometimes lacking in basic amenities and a minimum level of comfort. • The product is linked to a particular location, where other visitors are an integral part of the product. • The product is vulnerable to social and environmental damage and maintenance is needed to keep it reusable. The product is designed from the supply side; the demand side is neglected in the process. Existing studies on the subject are further proof of this, since there are many relating to the amount of available accommodation, but very few that attempt to determine what type of accommodation visitors prefer, what activities they hope to find, or even what type of visitors are likely to arrive. According to Gilbert (1992) this lack of strategy and foresight is a result of the fact that, being a new addition to rural development in many areas, the development of rural tourism is being driven by the Administration1. Nacher (1997) also coincides on this point when he claims that an assessment of the development of rural tourism during the nineties betrays a virtually complete lack of planning in both private and public action. Schemes publicly funded by bodies totally unconnected with rural life have been used to address the problems resulting from these organisational shortcomings. Analysts of the problem, therefore, appear to agree that this form of tourism needs to evolve, to be seen as a business and to be managed as such. It is therefore essential that any action should be undertaken by private initiative, and based on market principles. september · december 2005 · esic market (1) “Rural tourism is beneficial for rural areas since it can halt the abandonment trend affecting certain villages and help to keep crop and livestock farms going by improving the rural economy”. (Gilbert, 1992). [81] 630 05 (2) “The rural setting, the land devoted to such purposes, suffers a loss of richness and diversity in the rural tourism offer, because the image it projects it projects is a simplified stereotype”. (Barrado et al., 1998). designing rural tourism supply in the region of navarra In countries such as Great Britain and Germany, rural tourism is developing thanks to the efforts of small-scale entrepreneurs, farm-owners, hotel-owners, etc. In Ireland, Portugal and Spain, meanwhile it is mainly public initiative that is involved. Another possibility might be to use a mixed model such as proposed by Gilbert (1992) in which initiatives are launched by the private sector and the projects supervised and financed by the Administration, who also is also responsible for whatever infrastructure improvements may be needed. While this proposal is supported by Nacher (1997), this author issues a warning concerning the risks involved in rapidly converting the rural entrepreneur to the tourist business, without training or guidance in how to go about it. The danger is that the opportunities will be wasted and rural society will become a kind of undefined socio-cultural mix, a potential source of conflict. In either case, knowledge of visitor preferences is essential if the rural tourism product is to be designed to match market demand2. It can also be used to plan mid to long term strategies to help find new avenues of development for rural areas in crisis. The purpose of this purpose paper, therefore, is to present a methodological approach to incorporate the demand perspective into the design of rural tourism supply. It is based on quantitative econometric techniques, particularly Multiple Correspondence Analysis, to analyse categorical data. The fieldwork was carried out in the potential rural tourism market of the city of Pamplona. 2. Rural Tourism Rural tourism began to develop in Navarra in 1990 when the Navarra Government approved a Project for the creation of the necessary infrastructure in the Pyrenean area of Navarra. The Pyrenean valleys pioneered awareness of the potential of this new type of tourism. Nowadays, however, rural tourism facilities are to be found all over Navarra. Currently, Navarra has 216 Rural Houses available for Full House Rent (FHR), and 151 for Renting by Rooms (RR); in addition there are [82] september · december 2005 · esic market 05 631 designing rural tourism supply in the region of navarra hotels, hostels, inns and guesthouses located in rural settings. The zoning scheme used by the Government of Navarra Department of Industry, Commerce, Tourism, and Labour is based on a Consortium system. 7 consortia cover the whole of Navarra: Bertiz, Plazaola, Pyrenees, Tierra Estella, Zona Media, Ribera and Pamplona. The number of tourism establishments in Navarra has increased substantially over the last 10 years, as shown in Table 1. The greatest increase is to be found in establishments run mainly by farming families, that is, the different forms of Rural House. The most striking performance has been achieved by the FRH where supply grew from 5 establishments in 1991, to 237 in January 2000. Meanwhile the establishments traditionally more closely associated with tourism, such as Hotels, Hostels, etc., have experienced slower growth. Bearing in mind the diversity of the establishments listed in Table 1, in Table 2 we present the data for the last ten years in terms of the number of beds available in Navarra. This illustrates even more clearly the growth that has taken place in rural tourism supply, since the number of beds in FRH has increased from 26 to 1445 over the period. Table 1. Number of establishments TYPE 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 FRH 5 15 29 64 81 124 154 182 216 237 RRH 54 61 77 88 125 137 143 146 151 153 Hotel 42 44 44 45 46 48 51 53 55 57 Hostel 58 60 63 64 68 69 78 82 86 91 Pension 40 48 51 57 57 61 70 78 83 84 Guest house 54 54 54 54 54 54 54 54 54 54 Source: Government of Navarra Department of Industry, Commerce, Tourism, and Labour. september · december 2005 · esic market [83] 632 05 designing rural tourism supply in the region of navarra Table 2. Number of beds TYPE 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 FRH 26 101 186 378 474 748 934 1108 1329 1445 RRH 436 472 585 656 855 918 988 1011 1083 1100 Hotel 3928 4125 4125 4226 4479 4723 4920 4964 5068 5175 Hostel 2013 2035 2087 2110 2183 2191 2494 2550 2614 2720 Pension 532 654 701 811 811 842 923 1006 1082 1088 Guest house 582 582 582 582 582 582 582 582 582 582 Source: Government of Navarra Department of Industry, Commerce, Tourism, and Labour. In the statistics supplied by the Government of Navarra Department of Industry, Commerce, Tourism, and Labour, the FRH data are given in terms of the room occupancy rate, while the RRH data are in given in terms of beds or overnight stays. In the more detailed survey conducted in 2000 by the CIES company for the Government of Navarra Department of Industry, Commerce, Tourism, and Labour, entitled Tourist and Same Day Visitor Profile, demand for this type of accommodation can be seen to remain within a similar range throughout the seasons, as Table 3 shows. This gives some idea of the magnitude of rural tourism demand in Navarra, and therefore of the need to take a strategic approach when designing supply, in such as way as to exploit differential elements and respond to visitor requirements. [84] september · december 2005 · esic market designing rural tourism supply in the region of navarra 05 633 Table 3. Occupancy rates in Rural Houses in Navarra as a percentage of total facilities (2000) SEASON FULL RURAL HOUSE (% of total occupancy) ROOMS in RURAL HOUSE (% of total occupancy) Easter 14.17 10.28 May-June 15.76 12.73 July 7.81 16.15 August 12.39 11.75 September 14.10 10.58 Oct / Dec long week-ends 15.70 12.11 November –December 6.86 9.14 Source. CIES. (2000) Tourist and Same Day Visitor Profile. For the Government of Navarra Tourism Dept. 3. Methodology for designing rural tourism supply The method used in this paper to design rural tourism supply is based on market research techniques that enable us to obtain segment profiles which, once identified and quantified, can be used in specific programme design. Multiple Correspondence Analysis (MCA) is a particularly useful segmenting technique, since it permits the quantitative treatment of categorical variables. The first step in the process is to identify the product attributes, in this case, the activities connected with rural tourism. This can be done in focus groups in which participants provide the information needed to design the questionnaire. In this part of the research, we used group dynamics, which enabled us to define the attributes or features of rural tourism presented in Table 4. september · december 2005 · esic market [85] 634 05 designing rural tourism supply in the region of navarra Table 4. Attributes of rural tourism Participation in farm work and tending animals Cycling routes Trekking Hill walking Horse-riding Sightseeing Learning about local crafts Learning farming skills Other activities This information was used to draw up a questionnaire to assess levels of interest in the listed activities. It also included the following respondent identifiers. Whether or not they have heard about rural tourism Whether or not they engaged in rural tourism Whether they have heard about rural tourism through their friends Whether they have heard about rural tourism through the tourist board Whether they have heard about it through the media Other information sources Whether they engage or would engage in tourism in Navarra Whether they engage or would engage in tourism outside Navarra Ideal length of stay for rural tourism • A weekend • A week • A fortnight • A month • Longer [86] september · december 2005 · esic market designing rural tourism supply in the region of navarra 05 635 Company for rural tourism • • • • Alone With partner With friends With the family Type of accommodation • • • • • Full house rent Room rent with self-catering facilities Room rent Room rent Room rent Preferences with regard to décor • Rustic • Modern • No preference Age • Up to 25 years • 25 to 45 • Over 45 Gender • Male • Female Marital status • Male • Female september · december 2005 · esic market [87] 636 05 designing rural tourism supply in the region of navarra Occupation • • • • • • • • • • • • • • (3) The pilot questionnaire was pretested on 15 respondents. Unskilled worker Skilled worker Administrative worker Semi-skilled technician Skilled technician Managerial Self-employed Liberal profession Entrepreneur Farming, animal husbandry Retired Housewife Student Unemployed The questionnaire was then distributed among a random sample of 450 persons, selected via simple random sampling3. Since this sample is not large enough to provide us with conclusive evidence, the usefulness of the results and conclusions drawn from this study is strictly methodological and not applicable for decision-making purposes4. (4) We are grateful to Iñaki Garreta for his excellent fieldwork. [88] Table 5. Technical details of the survey Method Personal interview Universe Population of Pamplona Confidence level 95 % (k = 1,96) Error Less than 5 % Distribution Simple random sampling Date of fieldwork August 2001 september · december 2005 · esic market designing rural tourism supply in the region of navarra 05 637 Multiple Correspondence Analysis is a factorial method that can be used to interpret category tables, that is, tables describing a set of individuals, using categorical or nominal variables, though metric variables can also be included for illustrative purposes. The characteristics and potential of MCA are fully described in the following works by Lebart, Morineau and Tabard (1977), Escofier and Pages (1992), Gre e n a c re (1993); Etxeberría, García, Gil, and Rodriguez (1995); Lebart, Morineau and Piron, (1995); Abascal, (1998) and Joaristi, and Lizasoain (1999). This factorial method is suitable for processing this type of variables, since it groups them into factors that are simply a linear combination of the original variables. The aim, when performing MCA, is to select the explanatory variables with the greatest weight on the axes most closely correlated with the category score. One of the advantages of working with factorial methods is that they allow us to include variables and individuals that are not used in the construction of the factor planes but that can help us to interpret the factors or describe the classes. These are known as illustrative elements. The rules for interpreting an MCA are as follows. • The projection of a category on an axis is the baricentre (mean profile) of the individuals characterised by that category. • The projection of an individual on an axis is the baricentre (mean profile) of the categories selected by that individual. • The distance between two categories increases with the number of individuals characterised by one and only one of the two. • The contribution of a variable to the creation of a factor is defined as the sum of the contributions made by the categories of that variable. • Less frequent categories greatly distance those that select them from the rest of the sample; thus they contribute more to the creation of the factor axes. It is therefore advisable to eliminate less frequently occurring categories by adding them to the next closest, otherwise september · december 2005 · esic market [89] 638 05 designing rural tourism supply in the region of navarra • • • • they could influence the first factors which would then fail to reflect general phenomena. The more categories to a question, the more it will contribute to the information. To prevent them from overcontributing, it is better if the questions have a balanced number of categories and none of them have too many. Since the data table is a complete disjunctive matrix, when there are too many categories of a variable, they are perpendicular and can not be captured by the same factor. The more categories to a question, the more axes it will contribute to. There is a low percentage of inertia on each factor when the variables have a large number of categories. The response categories for each of the variables are centred, that is, the centre of gravity of the response categories is the origin of the axes. These characteristics should be taken into account when designing the survey to avoid involving too many categories in each question. Before performing an MCA, therefore, it is wise to screen the categories and the data codification that is to be used; this can prevent skewed results. MCA enables many factor axes to be extracted, and it is obvious that the more factors one works with, the greater the percentage of variance that is explained. However, it should also be borne in mind that the advantage gained from including each axis in the analysis diminishes, as more axes are included. It frequently happens, therefore, that the first axes contribute the bulk of the information. For this reason, it is considered sufficient to interpret the first 5 axes, since the variables are strongly related and the first factors capture a large percentage of the inertia in the data table. [90] september · december 2005 · esic market designing rural tourism supply in the region of navarra 05 639 4. Results The results obtained after applying the Multiple Correspondence Factorial Analysis, which are presented in Tables 6 and 7, lead us to the following conclusions. • There is a clear physically active profile that groups visitors interested in taking part in farm work, cycling, hill-walking, and horseriding; it is linked with young people, travelling or intending to travel in couples, or with friends, and it includes men and single persons. They show a preference for the full rural house rent option. • A second profile is formed by over 25’s, women, and married people. They state a preference for sightseeing, they intend to travel in family groups and prefer to rent rooms with half board. • The third profile is made up of 25 to 45 year-olds, married people who travel or intend to travel as a family. They express an interest in farm work and tending farm animals, sightseeing and local crafts. • People interested in cycling, trekking and hill walking form the fourth profile. They are young, single, travel with friends, prefer weekend stays and destinations inside Navarra. september · december 2005 · esic market [91] 640 05 designing rural tourism supply in the region of navarra Table 6. Co-ordinates, contributions and squared cosines of the active categories on the first five axes [92] september · december 2005 · esic market designing rural tourism supply in the region of navarra 05 641 Table 7. Coordinates and Test values of categories on the first five axes september · december 2005 · esic market [93] 642 05 designing rural tourism supply in the region of navarra Table 7 continued. [94] september · december 2005 · esic market designing rural tourism supply in the region of navarra 05 643 When the categories considered are plotted on axes 1 and 3, we obtain F i g u re1. Figure 1. Graphic representation of axes 1 and 3 5. Conclusions This analysis leads to the following conclusions. • The results reveal that the rural tourism market can be segmented by socio-demographic characteristics such as age, family structure and social relations. It should be borne in mind that preference for Navarra as a tourist destination is linked to consumer age and marital status. Younger single people appear to prefer Navarra for a wee- september · december 2005 · esic market [95] 644 05 designing rural tourism supply in the region of navarra kend trip. Older people and married couples perhaps tend to visit other regions and stay longer. • The rural tourism supply in Navarra has not succeeded in exploiting the re g i o n ’s variety and wealth of natural resources to diff erentiate the product. It is there f o re impossible to design competitive strategies to allow Navarra to compete with other areas in attracting visitors. Navarra offers an undiff e rentiated, practically unique product that is probably evaluated differently by diff e re n t market segments. Its varied landscape, natural environment, art, History, and gastronomy are attributes that this region should use in combination to create a supply to suit various market segments. • Tourism supply designers should keep in mind consumer preferences with respect to available tourist activities and types of accommodation, while taking into account the socio-demographic and economic characteristics of the population. 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