TOURISM PLANNING AND DEVELOPMENT
Management Skills in the Tourism Sector — Diploma Course Book
A practical diploma-level course book for tourism and hospitality students.
Papua New Guinea context with international tourism management principles.
Prepared for classroom teaching, self-study, practical activities and assessment.
• Course focus: planning • destination development • sustainability • leadership • project management • community participation
Course Information
Course Overview
This course introduces students to the knowledge and management skills required to plan, develop, operate and evaluate tourism destinations and tourism projects. Tourism development is not simply the construction of hotels, roads or attractions. It is a coordinated process involving government, communities, businesses, visitors, investors and resource custodians.
The course uses Papua New Guinea as a major learning context. PNG has exceptional cultural diversity, biodiversity, mountains, islands, reefs, rivers, historical sites and adventure opportunities. Effective planning is therefore essential to ensure that tourism creates employment and business opportunities while protecting culture and the natural environment.
Students will learn to move from an idea to a practical tourism plan: identify resources, research markets, consult stakeholders, assess impacts, set objectives, allocate resources, implement activities, monitor results and improve performance.
• Recommended level: Diploma
• Suggested duration: 12–15 teaching weeks
• Assessment: activities, assignments, test and final examination are given within the course and at the end of course.
Learning Outcomes
What Students Should Be Able to Do
By the end of this course, students should be able to explain major tourism planning and development concepts; assess tourism resources; prepare destination development objectives; demonstrate leadership and communication skills; identify stakeholders; design sustainable tourism projects; prepare basic implementation schedules and budgets; assess environmental, social and cultural risks; and monitor tourism development outcomes.
Students should also be able to apply planning methods to a PNG destination such as a cultural village, mountain trekking area, coastal community, historical site, wildlife attraction, festival destination or urban tourism precinct.
• Explain tourism planning and development principles.
• Conduct a basic tourism situation and resource analysis.
• Develop tourism goals, objectives, strategies and action plans.
• Apply leadership, teamwork, negotiation and decision-making skills.
• Integrate sustainability, culture and environmental protection into tourism plans.
• Prepare a basic tourism development project and monitoring framework.
Course Structure
Units and Assessment
The course is organised into twelve chapters. Chapters 1–3 establish the foundations of planning and management. Chapters 4–6 address destination development, sustainability, policy and stakeholders. Chapters 7–10 focus on community tourism, marketing, infrastructure, environment and risk. Chapters 11–12 bring the skills together through project planning, implementation, monitoring and evaluation.
Teaching should combine lectures with field observation, group discussion, case studies, role plays and practical planning exercises. Students should be encouraged to study a tourism site in their own province and prepare a mini destination development plan.
• Continuous assessment: 40% (recommended).
• Final examination: 60% (recommended).
• Institutions may adjust assessment weighting to meet their approved curriculum.
Chapter 1: Introduction to Tourism Planning and Development
Tourism planning is the systematic process of deciding what tourism should achieve, where it should occur, who should benefit, what resources are required and how impacts will be managed. Development is the practical transformation of plans into products, services, infrastructure, institutions, skills and experiences.
Tourism is a system. Visitors travel through transport networks, use accommodation and food services, purchase activities, interact with host communities and depend on public infrastructure. A weakness in one part of the system can reduce the quality of the whole destination.
Planning helps managers avoid uncontrolled development. For example, a destination may receive more visitors than its roads, waste systems, water supply, guides or cultural sites can safely support. Good planning anticipates these pressures and establishes capacity, standards and investment priorities.
1.1 Why Tourism Planning Matters
Planning provides direction. Without a shared direction, tourism businesses and public agencies may invest in competing or unsuitable activities. A plan identifies priorities and provides a basis for decisions.
Planning also supports sustainability. Economic benefits must be considered alongside environmental protection, cultural integrity and community wellbeing. A tourism project that generates income but damages a reef, sacred site or community relationship may create long-term costs greater than its short-term benefits.
Effective planning also improves coordination. Tourism often involves provincial and national government agencies, landowners, communities, accommodation providers, tour operators, transport companies, conservation organisations, investors and educational institutions.
• Creates a common vision.
• Guides investment.
• Reduces avoidable impacts.
• Coordinates stakeholders.
• Improves visitor experience.
• Supports long-term competitiveness.
1.2 Tourism as a Development Sector
Tourism can contribute to employment, entrepreneurship, foreign exchange earnings, local procurement, infrastructure improvement and cultural promotion. However, benefits do not automatically reach local people. Leakage can occur when goods, services, ownership and profits are controlled outside the destination.
Tourism planners should therefore ask who owns the tourism product, who supplies food and transport, who receives entrance fees, who has decision-making power and whether local people have access to training and employment.
In PNG, tourism planning can connect small businesses and communities with markets while protecting cultural and natural assets. The national policy framework for 2025–2045 places strong emphasis on environmental sustainability, cultural heritage, resource custodians, inclusive economic growth and resilience. [1]
1.3 Tourism Planning Levels
Planning may occur at several levels. National planning establishes broad policy, legislation and national priorities. Provincial or regional planning translates these priorities into destination strategies. Local planning focuses on specific sites, communities, attractions, tourism precincts or projects.
A business plan is narrower than a destination plan. A lodge may plan rooms, staffing, pricing and marketing, while a destination plan considers roads, attractions, community participation, environmental protection, visitor information and multiple businesses.
Managers should understand the relationship between levels. A local project is more likely to succeed when it fits provincial priorities and national policy.
• National level: policy and sector direction.
• Regional/provincial level: destination coordination.
• Local level: site and community development.
• Business level: commercial operations.
1.4 Planning Process
A basic planning cycle contains situation analysis, vision, objectives, strategy, implementation, monitoring and review. The process is not always linear. New information may require planners to revise objectives or activities.
Situation analysis asks: Where are we now? Vision asks: Where do we want to go? Objectives ask: What measurable results do we want? Strategies ask: How will we achieve them? Implementation asks: Who will do what, when and with what resources? Monitoring asks: Are we achieving the intended results?
Managers should document assumptions and risks. A tourism plan that depends on a new road, airport route or major investor should identify that dependency rather than treating it as guaranteed.
1.5 Learning Activity and Review
Practical activity: Select a tourism attraction near your community. Describe its current condition, visitors, facilities, strengths, weaknesses and development opportunities. Identify three risks of uncontrolled development.
Group discussion: Is increasing tourist numbers always the best tourism objective? Students should consider visitor spending, length of stay, local ownership, environmental pressure and visitor quality.
Review questions: Define tourism planning. Explain two reasons tourism planning is important. Distinguish destination planning from business planning. Identify four stakeholders in a tourism project. Explain why monitoring is part of planning.
Chapter 2: 1.1 Tourism Planning Principles and Processes
Good tourism planning is evidence-based, participatory, realistic, flexible and sustainable. Evidence may include visitor statistics, market research, site inventories, interviews, surveys, environmental observations and financial information.
Participation is important because tourism affects people who may not be tourism professionals. Landowners and cultural custodians may have knowledge about sacred areas, seasonal conditions, traditional rules and resource use that cannot be obtained from a desk study.
Realism means matching ambition with resources. A community may have an excellent waterfall attraction but lack safe access, sanitation, signage, guides and emergency arrangements. A phased plan can prioritise the most urgent improvements.
2.2 Situation Analysis
Situation analysis establishes the baseline. A useful approach is SWOT analysis: strengths, weaknesses, opportunities and threats. Strengths and weaknesses are usually internal; opportunities and threats are usually external.
Planners can also use PESTLE analysis to examine political, economic, social, technological, legal and environmental influences. For a tourism destination, climate events, transport costs, digital connectivity, government regulations and consumer trends can all influence performance.
Resource assessment should identify attractions, accommodation, food, transport, visitor services, human resources, infrastructure, cultural assets and environmental resources.
2.3 Setting Vision, Goals and Objectives
A vision describes a desired future condition. A goal is a broad result. An objective is more specific and measurable. Managers should avoid vague objectives such as 'develop tourism quickly'. A stronger objective specifies the target, location, timeframe and responsible party.
SMART objectives are specific, measurable, achievable, relevant and time-bound. For example: 'By December 2027, establish a community-managed visitor information point and trained guiding team at a selected attraction.' The objective can then be connected to activities, a budget and indicators.
Objectives should balance economic, visitor, community and environmental outcomes.
2.4 Strategy and Action Planning
A strategy explains the broad approach to achieving objectives. An action plan converts the strategy into tasks. Each action should have an owner, timeframe, resources, expected output and indicator.
A simple action-plan table can contain: objective, activity, responsible person, partners, start date, completion date, budget, indicator and status. Managers should update the plan during implementation meetings.
Prioritisation is essential. Actions may be classified as urgent/high impact, important, desirable or long-term. This prevents scarce resources from being spread too thinly.
2.5 Stakeholder Mapping
Stakeholders are people or organisations that affect or are affected by tourism development. They may include landowners, customary leaders, communities, tourism businesses, provincial authorities, national agencies, transport operators, conservation groups, visitors, schools, investors and financial institutions.
A stakeholder matrix can classify stakeholders by influence and interest. High-influence, high-interest stakeholders require close engagement. Low-influence, high-interest groups still need information and meaningful opportunities to participate.
Consultation should be more than asking for approval after decisions are already made. Good participation allows stakeholders to influence priorities and understand trade-offs.
2.6 Practical Planning Exercise
Prepare a one-page tourism plan for a hypothetical cultural village. Include a vision, three SMART objectives, five activities, five stakeholders, an estimated budget category and five monitoring indicators.
Review questions: What is SWOT analysis? Why should objectives be measurable? What is stakeholder mapping? Why is an action plan necessary? Explain the difference between an output and an outcome.
2.7 Tourism Management Skills
Tourism managers work with people, money, information, time and physical resources. Management skills include planning, organising, staffing, directing, coordinating, communicating, controlling and evaluating.
Tourism is highly people-oriented. A manager may need to resolve a guest complaint in the morning, coordinate a transport provider at midday, brief staff in the afternoon and review financial performance later. The manager therefore needs technical knowledge and interpersonal competence.
Management effectiveness is measured not only by authority but by the ability to achieve results through people and partnerships.
Chapter 3.1 Leadership and Decision-Making
Leadership provides direction and motivates people. Effective tourism leaders communicate expectations, demonstrate ethical behaviour, recognise performance and take responsibility for decisions.
Decision-making involves identifying the problem, collecting relevant information, generating alternatives, evaluating consequences, selecting an option, implementing it and reviewing the result. Decisions should be documented when they affect safety, finance, staff or stakeholders.
Managers should distinguish urgent decisions from important strategic decisions. Not every problem requires an immediate major investment.
3.2 Communication, Negotiation and Conflict
Tourism managers communicate with visitors, employees, communities, suppliers and government. Communication should be clear, respectful and appropriate to the audience. In multicultural environments, managers should avoid assumptions and listen carefully.
Negotiation seeks an agreement between parties with different interests. A useful process is preparation, clarification of interests, generation of options, evaluation and agreement. Managers should separate people from the problem and avoid personal attacks.
Conflict may arise over land access, revenue sharing, employment, cultural representation, visitor behaviour or environmental impacts. Early communication can prevent disputes from becoming more difficult.
3.3 Human Resource Management
Tourism service quality depends heavily on employees. Managers should identify job requirements, recruit fairly, provide induction, train staff, supervise performance and create opportunities for development.
Training areas may include customer service, guiding, food safety, first aid, environmental practices, cultural interpretation, digital marketing, financial procedures and occupational safety.
Good managers also plan staffing around demand. Festivals and peak seasons may require temporary staff or additional guides. Understaffing can reduce service quality, while excessive staffing can increase costs.
3.4 Financial and Operational Management
Tourism managers should understand budgets, revenue, expenses, cash flow and basic financial controls. A budget estimates what the organisation expects to receive and spend. Cash flow focuses on the timing of money coming in and going out.
Operational controls include purchasing procedures, stock records, maintenance schedules, booking systems, staff rosters and incident reporting. Strong controls reduce waste and improve accountability.
Managers should use performance information rather than relying only on intuition. Useful indicators include occupancy, average visitor spend, customer complaints, repeat visits, staff turnover, maintenance costs and project completion rates.
3.5 Leadership Activity and Review
Role play: One student acts as a tourism manager, another as a community representative, another as a tour operator and another as a government officer. Negotiate a plan for opening a new hiking attraction.
Review questions: List five tourism management functions. Explain two leadership qualities. Describe the stages of decision-making. Why is staff training important? Give three examples of operational controls.
3.6 Tourism Destination Development
A destination is more than an attraction. It includes attractions, access, accommodation, food, activities, information, public services, safety, infrastructure and the overall visitor experience.
Destination development should begin with an assessment of what makes the place distinctive. A destination can compete through culture, adventure, nature, history, food, events, wellness, business travel or combinations of these.
Development should avoid copying other destinations without considering local resources and community values. Authenticity can be a major asset when cultural experiences are managed respectfully.
3.7 Destination Life Cycle
Destinations may move through stages such as exploration, involvement, development, consolidation and possible stagnation or rejuvenation. The model helps managers consider how destinations change as visitor numbers increase.
Early-stage destinations may have limited facilities and few visitors. Development can bring investment and employment but may also increase congestion, waste, land pressure and cultural commodification. Mature destinations need renewal, diversification and infrastructure management.
Managers should not assume that growth must continue indefinitely. The objective is sustainable value rather than visitor volume alone.
3.8 Tourism Product Development
A tourism product combines attractions, activities, services and experiences. Product development begins with a market need and a resource that can be delivered safely and consistently.
Examples in PNG could include guided cultural walks, birdwatching, trekking, diving, village stays, historical interpretation, festivals and culinary experiences. Product design should specify the target visitor, duration, inclusions, price, safety arrangements, guide requirements and environmental safeguards.
Testing a product with a small group before full launch can reveal problems with timing, access, interpretation and service quality.
3.9 Destination Management and Visitor Experience
Destination managers coordinate multiple actors. They may not directly control every business, so influence, partnerships, standards and communication are important.
Visitor experience begins before arrival through information and booking, continues through transport and reception, and extends after departure through memories, reviews and recommendations. Every touchpoint affects destination reputation.
Managers should map the visitor journey and identify moments where visitors may encounter delays, safety problems, unclear information or poor service.
3.10 Destination Development Exercise
Select a PNG destination and prepare a destination profile. Identify five attractions, three access issues, three infrastructure needs, five possible tourism products and five development risks.
Review questions: What is a tourism destination? Explain the destination life cycle. What is tourism product development? Why is visitor experience important? Give four examples of destination management activities.
3.11 Sustainable Tourism Development
Sustainable tourism seeks to meet present visitor and community needs while protecting the resources and opportunities required in the future. Sustainability has economic, social, cultural and environmental dimensions.
The planner should ask whether tourism remains financially viable, whether local people benefit, whether culture is respected and whether natural resources are maintained. These dimensions are interconnected.
PNG's National Tourism Policy 2025–2045 identifies environmental sustainability, cultural heritage preservation, empowerment of resource custodians, inclusive economic growth and resilience as cross-cutting themes. [2]
Chapter 4.1 Environmental Sustainability
Tourism can create pressure through waste, water consumption, energy use, land clearing, pollution, wildlife disturbance and transport emissions. Environmental planning identifies sensitive resources and establishes controls.
Practical measures include waste separation, reduced single-use plastics, water conservation, renewable energy where feasible, low-impact trails, visitor codes, habitat protection and proper sewage management.
Environmental monitoring should use indicators such as litter levels, water quality, wildlife disturbance, vegetation damage and waste volume.
4.2 Cultural Sustainability
Cultural tourism should respect communities as living cultures rather than treating traditions as commodities. Cultural custodians should have a meaningful role in deciding what can be shown, recorded, photographed or sold.
Revenue-sharing arrangements should be clear. Interpretation should avoid stereotypes and should present cultural information accurately and respectfully.
Students should understand concepts such as informed consent, intellectual and cultural property, sacred places, appropriate visitor behaviour and community control.
4.3 Economic Sustainability
Economic sustainability requires reliable demand, viable businesses, skilled workers, local supply chains and appropriate investment. Local procurement can increase the proportion of tourism spending retained in communities.
Tourism planners can encourage local ownership and entrepreneurship through training, market access, product development and partnerships. Small and medium enterprises can supply food, transport, guiding, crafts, accommodation and other services.
However, tourism should not become the only economic activity. Diversification and resilience help communities manage tourism downturns.
4.4 Sustainability Exercise and Review
Prepare a sustainability checklist for a community tourism site. Include ten environmental, social, cultural and economic indicators.
Review questions: Define sustainable tourism. Explain the four dimensions of sustainability. Why should communities participate in cultural tourism planning? Give five environmental management measures.
4.5 Tourism Policy, Governance and Stakeholders
Tourism governance concerns how decisions are made, responsibilities are distributed, regulations are applied and stakeholders coordinate. Good governance requires transparency, accountability, participation and clear institutional roles.
In PNG, the Tourism Promotion Authority is a statutory body established under the Tourism Promotion Authority Act 1993 and has a national role in marketing and promoting PNG as a destination. [3]
The National Tourism Policy 2025–2045 provides a long-term public policy framework and is intended to be implemented through five-year Tourism Sector Development Plans. [1]
4.6 Tourism Policy Framework in PNG
The PNG Tourism Sector Development Plan 2022–2026 provides a medium-term framework for tourism development and emphasises coordinated action among stakeholders. It identifies goals relating to international and domestic visitors, tourism business capacity, product quality, regulation, enabling systems and sector leadership. [4]
Students should distinguish policy from strategy and plans. Policy establishes broad direction and principles. Strategy sets approaches for achieving goals. Plans specify actions, responsibilities, resources and timeframes.
Tourism managers should regularly check current official policy documents because government frameworks can change.
4.7 Stakeholder Coordination
Coordination can occur through committees, working groups, industry associations, community meetings, memoranda of understanding and project steering committees.
Successful coordination requires clear terms of reference, meeting schedules, decision records, reporting responsibilities and mechanisms for resolving disagreements.
Stakeholder engagement should include women, youth, customary landowners, persons with disabilities and other groups who may otherwise have limited access to tourism opportunities.
4.8 Governance Exercise and Review
Exercise: Draw a stakeholder map for a proposed eco-lodge. Include government, landowners, community members, investors, employees, visitors, suppliers, conservation interests and transport providers.
Review questions: What is tourism governance? Why is transparency important? Distinguish policy from a development plan. Identify five tourism stakeholders in PNG.
Chapter 5.1 Community-Based Tourism and Cultural Development
Community-based tourism involves local people in tourism ownership, decision-making, employment or benefit sharing. The precise model should reflect community priorities and legal and customary arrangements.
Community tourism can strengthen local income and cultural pride, but it can also create internal conflicts if benefits are distributed unfairly. Agreements should clarify ownership, responsibilities, pricing, revenue distribution and dispute procedures.
Managers should help communities identify products that are culturally appropriate, commercially viable and manageable at the local level.
5.2 Cultural Interpretation
Interpretation explains the meaning of a place, object, story or tradition to visitors. Good interpretation is accurate, engaging and respectful.
Guides can use storytelling, demonstrations, signs, maps, local language elements and visitor participation. Cultural interpretation should distinguish between information that is publicly shareable and knowledge that is restricted.
Tourism managers should develop codes of conduct covering photography, dress, sacred areas, gifts, bargaining and interactions with residents.
5.3 Community Tourism Exercise
Design a two-hour community tourism experience. Include welcome, activity, interpretation, safety briefing, visitor code, community roles, pricing concept and environmental controls.
Review questions: Define community-based tourism. Why is benefit sharing important? What is cultural interpretation? List five visitor behaviours that may require guidance in a community tourism setting.
5.4 Tourism Marketing and Destination Management
Marketing connects tourism products with suitable markets. Effective marketing starts with understanding target visitors rather than simply advertising everything to everyone.
Market segmentation can consider geography, age, interests, travel purpose, spending patterns and behaviour. PNG may have opportunities in adventure, culture, diving, birdwatching, trekking, business events, domestic travel and other niche markets.
Destination marketing should match the actual visitor experience. Promising facilities or activities that do not exist damages trust and destination reputation.
Chapter6.1 Digital Marketing and Branding
Digital channels allow tourism businesses and destinations to present images, stories, itineraries, videos, maps and booking information. Managers should maintain accurate information and respond professionally to reviews.
A destination brand is more than a logo. It is the set of associations visitors develop about a place. Strong branding should reflect authentic attributes and be supported by consistent service delivery.
Content should encourage responsible behaviour and should obtain appropriate permission when using community photographs, cultural performances or identifiable people.
6.2 Marketing Exercise and Review
Create a marketing concept for a PNG adventure tourism product. Define the target market, unique selling proposition, product features, price approach, distribution channel, promotional content and three performance indicators.
Review questions: What is market segmentation? Explain a unique selling proposition. Why must marketing promises match service delivery? Identify four digital marketing channels.
6.3 Tourism Infrastructure and Investment Planning
Infrastructure includes roads, airports, ports, water supply, electricity, telecommunications, waste systems and public facilities. Tourism infrastructure must serve visitors while also supporting local communities.
Investment planning should assess demand, costs, benefits, environmental impacts, land issues, maintenance requirements and financial sustainability. Construction is not the end of a project; managers must budget for operation and maintenance.
Projects should consider universal accessibility, safety, climate resilience and disaster preparedness.
6.4 Environmental and Risk Management
Risk management identifies hazards, estimates likelihood and consequences, selects controls and monitors residual risk. Tourism risks include accidents, weather events, disease, crime, transport failures, fire, equipment failure and environmental hazards.
A basic risk register should identify the risk, cause, likelihood, consequence, risk rating, control measures, responsible person and review date.
Environmental and social risk assessment should occur before major development. Sensitive sites may require specialist assessment and approvals under applicable laws and policies.
Chapter7.1 Tourism Project Planning and Implementation
A tourism project has a defined objective, scope, activities, resources, timeframe and expected results. Examples include a visitor centre, cultural festival, hiking trail, community lodge, tourism training program or destination marketing campaign.
Project planning involves defining outputs, breaking work into activities, scheduling tasks, assigning responsibilities and preparing a budget. A work breakdown structure can divide a project into manageable components.
Implementation requires leadership, procurement, communication, supervision, quality control and documentation. Managers should maintain an issues and decisions log.
7.2 Monitoring and Evaluation
Monitoring is the regular collection of information about implementation and performance. Evaluation is a more systematic assessment of relevance, effectiveness, efficiency, impact and sustainability.
Indicators should measure meaningful results. Outputs might include kilometres of trail improved, guides trained or signs installed. Outcomes might include improved visitor satisfaction, increased local income or reduced environmental damage.
An evaluation should ask what worked, what did not work, why results occurred and what should change in the next planning cycle.
Madang Kalibobo
Mt Hagen Cultural Show 2026
Compiled and Written by Mr. Wamsi Norbert (Dip, BEd, MEd). PNGCTTI. 2026
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