Page 173 - Tourism The International Business

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Costs

At this point a preliminary determination of likely costs can be made. This would include costs to both the
private and the public sectors.
Economic feasibility

Based on projected costs and environmental impact an initial assessment of economic feasibility can be made.
Analysis is predicated upon the anticipated investment and maintenance costs for both private and public sectors
compared to estimates of revenues gained and jobs created.
If an initial assessment indicates that development should occur, two processes will result: a detailed
development plan, and a supporting administrative and legal plan to ensure the success of the development. Both
will be discussed in the sections that follow.

Exhibit 63: Recreational areas balance use and
preservation. (Courtesy New Zealand Tourist &
Publicity Office.)

Development plan

Clare Gunn has identified several principles of tourism planning to guide the development of any tourism
project. 24
Clustering. As mentioned above, the clustering of facilities and attractions makes it more convenient for the
traveler by avoiding the need to make many brief stops along the way. Clustering has also been shown to be more
efficient in the provision of infrastructure. The per-unit cost of such things as water, waste and power is less with

clustered facilities.
Attraction-services linkage. While minimal facilities (snack bars and rest rooms, for example) need to be
provided at attraction sites, major clusters of services are better located at the nearest community. The exception
would be at major attractions such as Disney World where full services are expected.

24 Clare A. Gunn, Tourism Planning (New York: Crane, Russak & Company, Inc., 1979), pp. 307-317.

Tourism the International Business 173 A Global Text