Creating a Tourism Cluster in Morelia, Mexico

Transcription

P67∼92
Creating a Tourism Cluster in Morelia, Mexico
∗
Francisco López Medina*
Abstract
The last fifty years have witnessed the ‘effervescence of competitiveness’ concept
and the growth of tourism. The former has been widely studied from different view, based
on the agglomeration of companies in order to boost their productivity by providing
economic welfare. The latter has increased its importance as an economic livelihood for
many regions and countries. In Mexico, for example, it represents an average of eight
percent of total GDP and generates about two million paid-jobs annually. This paper
analyses tourism in Morelia, Mexico, in order to outline the foundation of a tourism
cluster as a supportive alternative that aims to create and take advantage of external
economies in the region, helping to more efficiently improve productivity and the standard
of living in Morelia.
Keywords: Competitiveness in Tourism, Competitiveness in Mexico, Tourism Clusters,
Mexican Clusters, Cluster Analysis
I. Introduction
Since its inception, the concept of competitiveness, coined by Professor Michael
Porter has been widely used to boost business productivity and regional economy. It is
based on the manufacturing sector as well as the idea that agglomeration of firms creates
external economies that shape its competitive advantage (Ingley, 1999). This agglomeration
contributes to the economic development of the region and the consequent improvements
in the standard of living of the population.
First, companies must identify their competitive advantage by analyzing the
competitiveness diamond proposed by Porter. It is a key determinant for operating a
business that will be used as a cornerstone for its performance and expertise, as well as
providing a solid competitive foundation.
The competitive advantage is possible for three main reasons: natural reasons
that arise from geographical conditions which benefit the production process, reasons
* Visiting Professor, Fudan University, Monterrey Institute of Technology and Higher Education, 290
Songhu Rd, KIC Plaza, Unit 5 & 6. B1/F, Building 10, Yangpu District, 200433, Shanghai, China;
E-mail: [email protected]; Tel: +86-21-31261291; Fax: +86-21-31261292.
68 • Korea Review of International Studies
which appear spontaneously when firms are grouped randomly, and reasons wherein
there is a deliberate agreement between entrepreneurs or through a government initiative
motivating their grouping (Sölvell, Lindvquist and Ketels, 2003). Whatever the origin of
the agglomeration, the primary purpose is to take advantage of the external economies;
these are known as “cluster.”
The cluster definition arises from geographical and industrial considerations
(Ingley, 1999). A widely accepted definition of cluster is “a geographically proximate
group of interconnected companies and associated institutions in a particular field,
linked by commonalities and complementarities” (Porter, 1998).
It is formed by the companies responsible for production, suppliers and distributors.
In addition, there must also be present the supporting institutions such as universities,
research centers, business centers, etc., with all existing alongside government involvement
as the governing body of the environment.
As such, a cluster is a large-scale production system that benefits from its size
and feeds on the help of different participants, aiming for regional competitiveness. The
concept of competitiveness provides a very solid basis to set the strategies for business
operations as well as productivity, and as a result provides economic dynamism.
From this perspective, the tourism industry is an appropriate service activity to
be analyzed, given its natural clustering (WTO, 2004; Da Cunha and Da Cunha, 2005;
Estevao Ferreira, 2009), meeting the interconnection characteristics, the presence of
supporting institutions, a specific service and strategic involvement of the government.
Its main characteristics are as follows: the composition of a group of companies
located in a tourist destination and the existence of a specific site that underpins the
tourism product. In addition to that is the peculiarity that the client is the one who must
go personally to that destination to enjoy the product, where there are hotels, restaurants
and other services such as travel agencies, transportation and tour operators.
In the last fifty years, tourism has realized its great potential for global growth;
several factors have been relevant in fostering its development, including: technological
advances and improvements in aircraft to minimize transportation times, the reduction
in operating costs, as well as the increase in demand for business travel and leisure (Da
Cunha et al., 2005).
During the last decade, tourist arrivals grew by over seven percent per year
worldwide, except for the periods of the terrorist attack in 2001 and the economic crisis
in 2008; these events strongly affected the flow of tourism around the world. A recovery
has ensued since 2010, with an 8 percent growth in emerging countries and five percent
for developed countries, compared to the previous year (WTO, 2009).
This paper provides an analysis of the agglomeration of tourism companies in
the city of Morelia, Mexico, from the perspective of the cluster. The first section will
offer a brief description of the Porter competitiveness diamond, the second will examine
the competitiveness diamond for tourism proposed by different authors, and the third
will examine the city of Morelia, its feasibility to house a tourism cluster, the proposal
of a cluster model for Morelia and a SWOT analysis. The fourth section discusses the
resulting conclusions.
Creating a Tourism Cluster in Morelia, Mexico • 69
II. Competitiveness: A Four Pillar System
Companies represent an important engine of the economy. In an increasingly
globalized world one priority is to analyze performance in order to advance the
economic development of regions and their inhabitants. Equally important is increased
attention to human development. ‘Competitiveness’ refers to the capabilities of a
company to face others who have produced a similar product or substitute, and it
represents the characteristics that make it unique and cause the product to be different.
Competitiveness has been analyzed and discussed by Michael Porter and many
others over the past three decades. Porter’s theory is based on the analysis of the
characteristics of the economic environment by identifying a set of four pillars that
influence the company’s ability to create and maintain a competitive advantage in
international markets, promoting the economic development of this system called
“competitiveness diamond.”
The pillars that make up this system are: factor conditions, demand conditions,
related and supporting industries and strategy, structure and rivalry. Figure 1 illustrates
the graphical representation of the competitiveness diamond.
Figure 1: Michael Porter’s Competitiveness Diamond
Source: Porter, 1998.
According to the author, as a result of detailed analysis of each of the pillars in
the diamond, a company will be able to identify its competitive advantage. Providing
the intellectual support to be translated to the operation of the production system for a
successful operation, it is also important to periodically adjust and update that analysis
to ensure its sustainability. The theory then provides a powerful starting point that
involves companies, institutions and government support in achieving a goal, considering
them to form a cluster.
The first pillar is “Factor conditions,” which represents the main tools on which
to base the economic system. Two types are identified: “Basic” and “Advanced.” The
former refers to natural resources and the latter to the infrastructure that supports
production processes (e.g. Roads).
In an economy in its early stage of development, basic resources are used as a
basis for competitive advantage, and once it has developed economically as a result of
the improvement achieved in the use of competitive advantage, it will utilize those basic
factors for the creation of those more advanced, moving towards the industrialization
stage and continuing with economic and social development.
Advanced factors play a greater role, they represent investments made by businesses
and government in the creation of assets to be used to maintain or increase competitive
advantage.
The second pillar is “demand conditions,” which refers to the sensitivity of
companies with respect to customer needs. They determine the main characteristics of
the products through the creation of a demand environment, forcing companies to
implement the best products or services to deliver innovation and quality. Domestic
demand encourages improvements in the company performance, as well as sharpening
its competitiveness toward meeting the needs of international markets successfully.
In the third pillar, “related and supporting industries,” the main ingredient is the
agglomeration-crowding in a “cluster” of related companies. This contributes to the
generation of beneficial external economies through increased innovation, and,
especially, the technological “knowledge spills.”
The main concept is the existence of a link between geographic concentration
and international competitiveness, since the formation of networks among enterprises is
the rationale that supports the growth of competition. It also allows small and mediumsized businesses to grow and improve easily (Alternburg and Meyer-Stamer, 1999).
The fourth pillar “strategy, structure and rivalry,” focuses its analysis on the
different elements that make evident the competitive advantage of the economic industries
in different countries. Porter found that the intensity of business competition has a direct
effect on the determinants of competitive advantage, playing a key role in its creation
and sustainability, shaping administrative practices and spreading throughout the decision
and strategy formulation processes, helping also in the processes of quality improvement
and cost reduction.
It also considers that the rivalry within the industry is more intense because of
regional competition, becoming an effective contribution toward promoting the improvement
of competitive advantage (Porter, 1990).
The government plays the role of the governing body of the economy, though its
mention in the diamond does not mean that it is one of the factors. Government’s role
lacks the primary purpose of participating in the production and supply of goods and
services, but is directly involved as a promoter and regulator of economic growth by
imposing tariffs, tax contributions, specific regulations and subsidies, incentives and
constraints for a particular sector or product. Although it can present meaningful information
about the government’s involvement in the production of goods and services, these are
merely governmental decisions, not economic activity, per se.
Furthermore, the factors that affect the economy, such as education, infrastructure,
and legal and health services, also have an important influence. According to Porter, the
work of government should be to maintain and efficiently shape the operation of the
four pillars, providing the conditions for the nation to be competitive, since it represents
the “container” in which the companies perform, create their administrative and productive
foundations, and shape culture (Porter, 1990).
Finally, the role of supporting institutions is to coordinate efforts among government,
business and academia. They act as a meeting place in which the parties agree upon the
generation of common strategies, and it is essential that there is a strong link between
them (Porter, 1998).
Porter used these four pillars to shape his assessments of the competitiveness of
nations. The model can be applied to a territory or region. He stated that attention
should be paid to each, as well as their interaction with one another, in the interests of
proper implementation. Consideration must also be given to internal and external causal
factors affecting the system, which in turn influence competitiveness in positive and
negative ways (Porter, 1998).
III. Competitiveness Diamond in Tourism
The competitiveness diamond has proven to be a useful tool, helping companies
to identify their competitive advantage, and it also allows them to maintain sustainable
operations. Simultaneously, it endows the population with useful knowledge, transforming
the region in a major plaintiff, producing intellectual quality tools and equipment.
On the other hand, tourism has proven to be a viable industry with great potential
to support economic growth with positive results, and due to regional agglomeration,
tourism represents a feasible business to be analyzed from the perspective of the
competitiveness diamond.
To observe that potential from the perspective of the cluster, it is necessary to
make specific considerations in order to properly fit it to a competitive analysis. In this
respect Ferreira and Estevao propose a model of regional competitiveness diamond for
tourism presented in Figure 2.
The center illustrates a gear attached to the destination and the tourism product,
and from the interconnection of these emerges the tourism cluster. The tourism product
consists of the basic elements of the tourism industry (lodging, transportation and food),
as well as the surrounding elements (museums, cultural and sporting events, etc.). The
destination refers to the site on which it is based, with the enjoyment of the experience
translated as the tourism product (WTO, 2004).
The cluster is surrounded by the competitiveness pillars, and these should be
rigorously tested to ensure flawless operation. The authors examined the four pillars of
Porter’s diamond and make considerations for tourism.
Basic factors inform the main characteristics of the touristic destination, such as
cultural tourism, ecotourism or city tourism to name a few. Advanced factors are
identified in the infrastructure that underlies the product (Nordin, 2003; WTO, 2004).
Service activities mandate that the product must be consumed in-loco, and for
this reason the authors designate human resources the cornerstone for analyzing the
factors of production.
According to Pechlaner, Smeral and Matzler, attention should be given to five
areas of knowledge, in order to bolster the competitive advantage of this pillar, as well
as to ensure its sustainability through periodic reviews of their performance. These areas
are: tourism training centers, research centers, methods for continuous improvement,
institutions for the transfer and implementation of knowledge and favorable conditions
for innovation (Pechlaner, Smeral and Matzler, 2002).
Figure 2: Competitiveness Diamond for Tourism
Source: Ferreira and Estevao, 2009.
Knowledge of “demand conditions” arises from the visitor profile, which represents
the closest customers, and the relevant information comes from the market structure (Nordin,
2003), visitor motivation, education, income, preferences and so on. Enrichment of the
tourist product and economic and social trends are also a source of information; these
factors contribute to competitive advantage through the identification of a specific
quality product demanded by the client (Smeral, 1998).
The “existence of related and supporting industries” is composed of companies
that offer basic and secondary services that tourists will consume during their stay. The
existence of collaboration and communication in the enterprise network is essential for
this variable, with the intensity of these characteristics determining the interaction of all
components of the diamond (Porter, 1990).
The latter is linked to the pillars’ factors conditions and demand conditions. With
factors conditions represented as “resources and attractions,” these are the activity or
activities attractive to tourists and the main reason for traveling. Demand conditions are
addressed through “destination management.” For a complete analysis it is important to
consider the proactive skills of employers as they engage in offering actual demand
products, as well as tourist information and promotion.
Finally, “strategy, structure and rivalry” is aligned with Porter’s belief that a
competitive environment shapes the entrepreneurial skills and the quality of the product.
Rivalry in tourism comes from two tiers: locally from the network of companies in the
cluster, and internationally from like tourist destinations (Nordin, 2003). The authors
emphasize the cooperation that should prevail at all times, by the fact that all companies
are immersed in a product dependency umbrella: the tourism product.
All pillars are interrelated, and must be analyzed both individually and as an
aggregate, with the consideration that a product is supported by the operation of a
system, in which one pillar is affected by another, and vice versa. For this reason, the
business network must keep strong ties.
Government and universities are also part of the model. The government, acting
as the governing body of policies and support for the tourism industry and interacting
with all the pillars, the universities providing both training and academic research to
support the operation of the cluster, with primary emphasis on the factors of production
and its relation to the resources and attractions.
This model is a representation of how the Porter diamond of competitiveness can
be applied to tourism, having its own specific considerations. The proposal of the
authors shows examples of the factors to be analyzed in each of the pillars that influence
the competitiveness of a tourist destination, giving special consideration to the details
most relevant to each destination.
The model does not specifically mention the existence of other supporting
institutions, such as business associations that can also have a positive influence on the
cluster. They are also relevant in the implementation of special projects or decisions that
affect one part of the system.
IV. Systemic Competitiveness Analysis of Tourism
Economic development has been widely studied from different perspectives because
of its positive contributions to the standard of living. Competitiveness is one of its main
components. This concept has also received significant academic attention, been
theoretically analyzed and used successfully by companies as a productivity support, as
well as being a positive contributing factor to regional economic growth.
Financial resources represent an important ingredient for competitiveness, and
hence, for economic development. Its importance should be considered with caution,
since it only contributes positively to competitiveness when applied in productive
investment and not in a speculative nature. In this regard competitiveness is more
dependent on basic factors, and this differs from financial resources (Alburquerque,
2004).
The growth of the services sector in the post-World War II years and its further
development led to the emergence of today’s “knowledge economy.” Its main feature is
the conviction that productivity of knowledge and services are more important than
production itself, which is why innovation and the ability to introduce innovations in
production and corporate network has become one of the main factors in support of
competitiveness (Arzeni and Pellegrin, 1997; Nordin, 2003; Alburquerque, 2004). Therefore,
this phenomenon has increased the demand for specialized knowledge of economic and
human development in some regions.
In today’s economy innovation is achieved by conducting research and development
(R&D), activities often carried out by big companies with large investing capabilities. In
the manufacturing industry, for example, such investments are applied to the invention
of machines able to run the work more efficiently; in the service industry investment is
mainly focused on the use of new technologies, implementation of structural changes to
provide newness to the service that is being delivered, and the provision of a static
comparative advantage based on the allocation of production factors.
But competitive success does not depend on the research of large companies or
the introduction of new technologies alone, it is also necessary that research takes place
along with social and institutional transformations, providing a dynamic competitive
advantage by providing a positive influence on the quality of human resources, while
continuing to consider information and knowledge as the mainstay of technological,
organizational and management skills (Nordin, 2003; Alburquerque, 2004).
The flourishing of innovations requires collaboration from the manufacturers and
business agents involved in the use and application of research and development for
innovation (R+D+i), according to their different production processes (Alburquerque,
2004). Endogenous development helps in this regard; it aims to stimulate economic
dynamism, including society and the variables that affect the absorption of such
innovations from the systemic perspective of the competitiveness of a region.
It is through a process of political decentralization and delegation of responsibilities
that the promotion of economic growth to provincial, state and municipal governments
ensues. There is much greater confidence that governance and development of local
government may be feasible at this level (Meyer-Stamer, 2003), as well as a strong
belief that knowledge of regional needs at the local level is higher in comparison with
confidence in the efficacy of colleagues in national government (Arzeni and Pellegrin,
1997).
The concept was born in the eighties as a result of the increased globalization of
markets and debate on state intervention in the economy. On the one hand, globalization
leads to increased competition in the markets, so companies are motivated to improve
their production systems, in addition, the pressure received from international competitors
encourages them to cluster in order to achieve higher levels of competition as a region,
while at the same time taking advantage of external economies generated (Arzeni and
Pellegrin, 1997; Vazquez, 2002; Meyer-Stamer, 2008).
On the other hand, the concept recognizes the importance of the macroeconomic
environment that must prevail so that companies enjoy economic conditions that
encourage competitiveness, hence the importance of state intervention in setting rules
that encourage such conditions (Arzeni and Pellegrin, 1997; Vazquez, 2002; MeyerStamer, 2008).
Furthermore, mass tourism affects the destination and its inhabitants. Scholars
have analyzed the invasive impacts on social and environmental concerns, providing
expertise about ways to initiate changes toward sustainable tourism (Clarke, 1997),
which aimed at the preservation of assets upon which rests the tourism product for the
enjoyment of it for future generations and the maintenance of continuity time in the
generation of income.
A proposed model of competition that aims to measure the impact of tourism on
local development, taking into account the competitiveness and sustainability with a
systemic view, is presented in Figure 3.
In the center of the model is the tourism product, consisting of the interconnection
of companies involved in its creation, forming the tourism cluster. The model shows an
example of some of the companies involved, the arrows represent the interaction
between them, and the ovals of color designate other companies also involved.
The cluster, in turn, is surrounded by the economic, social, environmental, cultural
and institutional sustainability, as a way to consider the effects that the use and enjoyment
of the tourist destination exert over the changes in behavior in the region due to the
involvement with visitors. These changes will occur over time and the shear numbers of
tourists to the destination. Tourism provides a positive dynamic in the economy of a
region, as well as positive and negative changes in its profile. Therefore, they must be
analyzed along with the competitiveness pillars.
In the area surrounding the tourism cluster stand the guidelines that make the
system work. According to Altenburg, Gillegrand and Stamer, there is a relationship
between four levels necessary to conduct a proper systemic competitiveness analysis,
they are: micro, meso, macro and meta, which must be considered through their
interrelationship.
The “micro” level entails the strategic knowledge that will determine the behavior
of the cluster, as well as the competitive capabilities of individual firms and the network
to provide efficient and quality product. This level testifies to competition and
cooperation of enterprises, as well as degrees of aggressiveness to be generated in the
identification and use of strategies. The ability to react to market changes is also
important.
The “meso” covers the analysis of the relationships that facilitate interaction and
cooperation between supporting institutions and this level includes research and
development, financial, marketing, training organizations and infrastructure that support
the operation of the cluster.
Figure 3: Cluster Model to Measure the Impact of Tourism on Local Development:
Competitiveness and Sustainability
Source: Da Cunha and Da Cunha, 2005.
The “macro” level is composed of macroeconomic regulations relating to the
fiscal and monetary policy, exchange rates, trade and competition that affect the tourism
environment directly. This level is the result of the establishment of policies by the
government in its role as governing body of the business environment.
The “meta” level includes socio-cultural factors that define the ability of these
actors to articulate strategies and policies, involving the government, social associations
and other actors that determine the development of projects. It considers the participation
of society through representative organizations as well as cultural impact. At this level,
the accuracy of the measurements deemed to be the objectives of the society and actors
generating economic growth, is of the utmost importance.
The four levels of the systemic competitiveness approach to endogenous development
are based on a clustered business process; they are evidence of its existence in different
countries during their development stages. The main exponents are the European
Industrial Districts.
These levels take into account the Porter competitiveness diamond’s four pillars
and government and supporting institutions. Additionally, systemic competitiveness
considers society, recognizing that the increase of competitiveness of a region is a result
of the understanding and intellectual growth of the innovations applied in the
production system, which is perfectly applicable to the tourism sector, given the nature
of services.
V. Competitiveness and Tourism of Mexico
Mexico’s national government pays special attention to the development of
tourism, making clear its recognition in the National Development Plan, while each
state does the same in their State Plans of Development and specific guidelines have
been established in States, so that tourism enjoys significant economic participation.
The main efforts of the National Tourism Ministry on cluster analysis are evident
in a 2001 Competitiveness Plan. Research were carried out in advance and a series of
booklets were publicized, one of them related to tourism clusters, recognizing the economic
benefits an agglomeration of firms brings, as well as noting the importance of tourism to
the economy.
Cluster analysis is made in accordance with the Organization for Economic
Cooperation and Development (OECD) concept for clusters. They consider the agglomeration
of firms in clusters in the form of production chains, with the main engine represented
by the interconnections and interdependence of the participants along the chain, from
suppliers to consumers. The strength of those ties determines the fluidity of the system,
is comprised by companies from different economic sectors, or those complementary to
each other. This collection of companies specializes in the manufacturing of a product
or building knowledge for the benefit of the production chain (OECD, 1999).
The chain is divided into four components. Each of these components represents
companies that perform a particular activity or covers a need in the production process,
contributing at each stage as a link in the chain, often illustrated in a pyramid. The top is
crowned by the final product, supported by three levels representing the production
process along the chain. The model shows the cluster identification and integration with
the tourism chain prepared by the National Tourism Ministry. Figure 4 shows this model.
According to the Tourism Ministry, this model is feasible for application to
destinations with an identified tourism product and market potential capable of generating
a dynamic link in the chain. The model also lists the analytical steps that follow to
determine if a destination is likely to join as a cluster (Mexico’s National Tourism
Ministry, 2001).
The figure shows the integration of the entire tourism value chain, in which the
bottom represents the resources to be managed to support the next level and so on, until
the top of the pyramid is reached.
The first level, “infrastructure,” resides at the base; it is comprised of the
resources involved in the creation and sustainability of business operations that support
the organizations that interact directly in the provision of the service. Companies can be
small, medium and large, provided they have adequate human, financial, technological
and physical infrastructure and trade.
Figure 4: Cluster and Integration of the Tourism Chain
Source: Mexico’s National Tourism Ministry, 2001.
At the next level, “supplier,” companies involved indirectly with service can be
found, such as those relating to construction, furniture making, textiles, etc …, Although
their participation is sporadic in the provision of tourist services, they are considered to
be part of the cluster at the time they participate in the delivery of the service.
The third level, “basic services,” is consists of companies providing the service
directly, such as hotels, restaurants, transportation, food and handicrafts, which are an
important part of the tourism product.
Although the model does not depict explicitly Porter’s pillars of competitiveness,
the infrastructure level can be seen as a representation of the “basic production factors”;
suppliers and basic service levels can be taken as the pillars’ existence of “related
industries” and “strategy, structure and rivalry.” At these levels is where competition
between the participants takes place and is also the time when the product is delivered,
as well as when entrepreneurial capabilities and strategies are shaped.
The top of the pyramid is reserved for the tourism product. This level is named
the “tourist attraction.” The Tourism Ministry gives prime importance to the tourist
experience at the destination, following the belief that it is the experience that provides
the service satisfactory conditions.
The competitiveness elements absent in this model are the analysis on demand
conditions, the existence of other related and supporting industries, as well as the
presence of government as economic controller, and universities.
However, it acknowledges that the presence of firms in a geographic concentration
does not guarantee an efficient operation, rather, it is necessary to have conditions
conducive to links in the chain; this is accomplished through fostering government
involvement and encouraging productive linkages. The Tourism Ministry presents
another model exemplifying the participation between the public and private sectors.
Figure 5 describes this process.
The central arrows show the activities of suppliers and basic services, encircled
to represent the way they integrate and interact, creating an atmosphere of business
competition and cooperation in joint activities. Both create tourism products, shown on
the right in the figure, which in turn are influenced by government decisions aimed at
the motivation of the system’s productivity.
Figure 5: Role of Public and Private Sectors in the Integration of the Productive
Chain of the Tourism Sector
Source: Mexico’s National Tourism Ministry, 2001.
The Tourism Ministry, mentions the importance of tourism for the country, the
advantages offered by the clustering of firms, the need to integrate tourism-related
businesses to increase productivity, further acknowledging that improvements in the
competitiveness of this sector is attainable with cluster theory, but makes this analysis in
a disjointed fashion in several models, from the point of view of several production
lines.
Because of this, Figure 4 shows only those involved in the production and Figure
5 shows those involved in the production and their relationship with the government.
Still absent is the reference model for universities and support centers. However, these
players are mentioned as part of the analysis.
VI. Morelia City
Morelia is the capital city of Michoacan state. It is the most populous city in the
state, with a population of 729,279 inhabitants (INEGI, 2010), which represents 16
percent of the state’s population. It ranks third as the most populous metropolitan area in
the central region of Mexico (called Bajío), after the cities of Leon and Queretaro in the
states of Guanajuato and Queretaro respectively, with more than eight hundred thousand
inhabitants. The city is one of several important tourist centers in the state. Figure 6
contains a map of Mexico with the location of Michoacan state, as well as the location
of Morelia city highlighted with a red dot toward the north of the state.
Figure 6: Map of Mexico Showing the Location of the State of Michoacan and
Morelia
Source: Own creation.
Also depicted are the names of neighbouring states, Jalisco and Colima in the
west, Guanajuato to the north, Queretaro to the northeast, State of Mexico to the east
and Guerrero to the southeast.
The city is physically located in the middle of the journey between two major
metropolitan areas and is the most densely populated region in Mexico, highlighted by
blue dots on the map in Figure 6, representing Guadalajara in the state of Jalisco and
Mexico city with 4.4 and 25 million inhabitants, respectively (INEGI, 2010). The
distance to any of these cities can be covered within four hours by land and 30 minutes
by air. In addition, there are secondary roads from Morelia to many small towns around
the city.
Morelia has excelled in Mexico’s history. It played a prominent role during the
days of independence, and is home to a host of important figures; several national
presidents, poets and composers hail from Morelia and it has inherited and nurtured a
rich cultural life over time, and due to its proximity to Mexico City has been preferred
as a recreational city since the time of the conquest. Table 1 supplies data relevant to the
city, as well as data for the state only as a comparison.
Nowadays, its economy is based on 73 percent of the tertiary sector, followed by
the secondary sector with 21 percent and the primary sector has a stake of five percent.
For the state the primary sector represents 23 percent of its economy, differing
considerably from Morelia due to the importance of avocado growers in other areas, and
54 percent of the state’s economy is supported by the tertiary sector.
Table 1: Morelia City Overview
Land sq km
Morelia
Michoacan State
1,196.95
58,643.38
Population
729,279
4,351,037
Population over 18 years
480,680
2,720,110
Economically active population (EAP)
289,084
1,478,856
Population over 18 years with higher education
Grade average years of schooling of the population
over 15 years
Unemployment rate
Economic structure
Primary sector
Secondary sector
Tertiary sector
Tourism contribution to state and national GDP
100,756
243,598
*
9.5
6.9*
4.41%
4.01%
5.03%
21.11%
73.86%
23.22%
22.17%
54.61%
8%
8%
Note: Year 2005 data.
Source: INEGI, 2010.
Due to cultural and natural wealth, the state is prone to the development of
tourist activities. In Mexico, the contribution of tourism to GDP is eight percent. The
same pattern occurs at the state level, with the city of Morelia contributing eight percent
to state GDP and the state in turn participating with eight percent of tourist national
GDP. Additionally, the city is the second most visited destination that has no beach in
Mexico, after Mexico City (ITESM, 2010; INEGI, 2010; Tourism Ministry, 2010).
In Morelia, the structure of the population legally available for work is as follows:
the working age population (EAP) consists of 480,680 people, the economically active
population (EAP) amounts to 289,084 people, while the population with a bachelor’s
degree is 100,756 people. While comparing these figures with the total population in the
city the facts emerge that 66 percent are of legal working age, 40 percent work and 14
percent comply with the conditions of work and have completed higher education.
The average schooling in the city is 9.5 years for people aged 15 years and the
unemployment rate is 4.41 percent in the city. This percentage is slightly higher than
that of the state.
Table 2 shows the supporting institutions and infrastructure available to provide
tourist services in Morelia.
Its historic center is the main attraction. This represents the basic factors according
to Porter’s competitiveness theory. It is one of the best examples of colonial architecture
on the continent and was declared World Cultural Heritage by UNESCO in 1991. It
consists mainly of buildings from the XVI, XVII and XVIII, XIX centuries. The World
Heritage area consists of about two km², consisting of 219 blocks, 1,113 private and
religious monuments and 15 urban squares.
Advanced production factors are represented by 116 lodging establishments: 23
percent are rated five-star, 52 percent three and four-star, and 25 percent are one and
two-star hotels, and there are several some bed and breakfast hotels. The accommodation
scene is comprised of 4,460 rooms, 114 restaurants and bars, 129 travel agencies and 12
car rental companies.
Table 2: Supporting Institutions and Infrastructure for Tourism in Morelia
Morelia
Civil and religious monuments
1,113
Urban squares
15
Lodging establishments
116
Registered hosting rooms
4,460
Food and beverages services preparation facilities
114
Travel agencies
129
Car rental companies
12
International airports
1
Bus terminal
1
Universities offering tourism at higher level
8
Research centers
1
Courses related with tourism
4
Source: INEGI, 2010.
It also has an international airport that receives and dispatches aircraft to domestic
destinations, including eight in Mexico City and four destinations in the U.S., and a bus
terminal with nine lines that offer transfers to the entire state, as well as major cities
across the country.
Fifteen universities reside in Morelia, six of them offering tourism as an undergraduate
program, and two as an area of expertise. Four universities offers seminars and courses
related to tourism and one of them has established a research center for tourism.
Government involvement is present through the state office of the Ministry of
Tourism, just as the Ministry of Culture supports several events and festivals that are
held throughout the year.
To better understand demand conditions the Center for Tourism Research and
Studies at Monterrey Tech (CIETEC) has conducted an annual survey over the past four
years, studying the profile of tourists visiting the state in an effort to provide information
for decision taking. Table 3 shows data for the city of Morelia.
According to this research, in 2009 the state of Michoacan received 7,547,800
tourists, 85 percent of them national and 15 percent international, who left an economic
impact exceeding 10,578 million Mexican pesos with an average of 1,400 Mexican
pesos per capita. The tourist load is relatively stable throughout the year, with a slight
decrease during the month of May (ITESM, 2010).
The research is carried out throughout the year, with interviews of tourists at
different sites. According to this research, visitors are predominantly classified as
conservative, which is characterized as that segment of the population that is focused on
a career, has some loyalty toward the destination, are large spenders during their stay,
travel only during vacation periods, are traditional in terms of consumption patterns,
prefer quiet places, both known and recommended, and typically eat at the destinations
restaurants. They are between 25 and 44 years of age, travel with family, and use their
own car.
Table 3: Profile of Tourists Visiting Morelia
Morelia
Type of tourist
Average age
Place of origin (predominantly)
Immigration status
Main country of origin of foreign tourists
Companions
Conservative
25 to 44 years old
Mexico
50% of migrant
United States of America
50% with family or family and children
Average stay of domestic tourists
3.5 days
Average stay of foreign tourists
10 days
Type of acommodation
Means of transport
Media that influenced the decision to travel
Reasons for the trip
Main activivities during stay
Hotel
Own car
Families or friends
70% holiday and visit family or friends
Attendance to cultural events
Acerage satisfaction index
8.6
Average daily expenditure
MXN$560
Source: ITESM, 2010.
The domestic tourist has an average stay of 3.5 days (weekends). The international
tourist stays an average of 10.0 days, visiting museums or attending cultural events.
They have an average daily expenditure of 560 Mexican pesos.
The city is primarily a domestic destination, since 85 percent of tourists are
domestic and 50 percent of the foreign portion is due to migration; although it is well
positioned in the country as an attractive destination, its situation does not encourage
visits from abroad.
The research also provides an index that measures tourist satisfaction on a scale
of one to ten, with ten representing total satisfaction. This index, which is a mix of
tourists’ perceptions about their overall experience of service to the city of Morelia, is
described in 8.6.
VII. A Tourism Cluster to Morelia
Based on the utility of Michael Porter’s competitiveness theory, as well as the
specific considerations due to tourism just stated, and in order to provide a complementary
tool for the strategies adopted and implemented by the government of the state of
Michoacan for tourism sector development, the model shown in Figure 7 is proposed.
This is a graphical representation of the integration of a cluster of tourism for Morelia
City.
The circle in the center of the figure represents the tourism cluster. The tourist
destination (Morelia) is supported by its goals and determined by the government as a
key issue for economic development in its political plan during the last decade.
Figure 7: Model Proposed Tourism Cluster in Morelia City
Goals are also well-supported by the two main activities that make up the service:
cultural and touristic events. The local Ministry of Tourism makes a differentiation
between them, based on the premise that cultural wealth prevailing in this region
represents a solid foundation of the tourism product.
Around the destination the basic elements are shown: tourist services, trade,
accommodation and restaurants.
The model can be read in two ways, vertically and horizontally. In the vertical
reading, the bottom details the infrastructure supporting the cluster and that represents
its basic inputs: human resources development, technology, infrastructure and municipal
services, transport infrastructure and financial resources. The upper region shows the
entities that provide support to the cluster, composed of those within the public and
private sectors.
This reading shows the agents that shape the environment for the cluster performance,
basic factors involved in providing services that make up the cluster, and support
organizations encouraging their sustained operation through policies and agreements
between companies.
The horizontal reading provides an overview of the value chain. The left side
measures as input the products and services provided by suppliers. The production
process takes place in the cluster, shaping the tourism product once it is mixed with the
decisions of supporting institutions and the use of the factors.
Table 4: Supporting Organizations and Institutions for Collaboration Participants
Morelia Tourism Cluster
Supporting entities
National Tourism Fund (FONATUR in spanish)
National Institute of History and Atntropologhy (INAH)
INAH centre at Michoacán
National Council for Arts and Culture (CONACULTA)
National Institute of Fine Arts (INBA)
Public sector
House Crafts of Michoacan State
Ministry of Transport and Communications (SCT)
Ministry of Tourism (MICHOACAN)
Ministry of Culture (MICHOACAN)
Coodination Center for the Preservation of Historical and Heritage Sites
Morelia’s Council
Municipal Institute for Urban Development of Morelia (IMDUM)
Institutions for Collaboration
World Heritage Mexican Cities Association (ANCMPM)
Business
Associations
Morelia Hotel Association
Commerce Chamber
National Chamber of Restaurants and Food (CANIRAC)
Business Chamber of Michoacan (COPARMEX)
Tourist Tram Companies
Urban Transport Unions
Other Institutions
for Collaboration
Universities and Training Centers
Tourism Research Centre (CIETEC)
Historic Center Patronage
Morelia Convention Center
Source: Tourism Ministry, INEGI.
The formation toward the right illustrates the moment when demand has first
contact through distribution channels. If this were a manufacturing system the right side
would be the output of the finished product, however, tourism has the peculiarity that
the product is consumed in loco, requiring travel to the destination; the right side of the
model represents the gateway through which the tourist reaches the cluster to enjoy the
tourist product.
Table 4 shows a list of supporting institutions in Morelia. They are represented in
three blocks, the first for public sector entities, the second for business associations and
the third for other supporting institutions.
The public sector consists of three types of entities, those in charge of the
management and conservation of historical heritage, setting the guidelines, conducting
promotional and motivational tasks related to tourism and promotion and management
of cultural activities.
Supporting institutions are divided into two tiers: business associations and other
supporting institutions. The former provides support to the sector as a whole in terms of
hotel operation, restaurant and shopping, representing the meeting point of the operations
of the cluster under the guidelines established by public sector entities.
There other supporting institutions as well, including labor unions, universities
and research centers providing help with information regarding the setting of guidelines
and shaping the competitive environment.
Figure 8 shows the value chain cluster in Morelia. The middle area shows the
links that make up the tourist service.
The upper area lists the factors that support the operation of the sector in a single
link because these agents cover the entire value chain in its interaction with all the links
in the chain at different moments. Toward the bottom of the figure, and aligned with
each of the links, are the agents who are dependent on compliance with the operation of
each segment of the value chain.
Figure 8: Value Chain Cluster Proposed for the City of Morelia
VIII. SWOT Analysis to Morelia
Table 5 and Table 6 envision a SWOT analysis for Morelia. Table 5 deals with
strengths and weaknesses and Table 6 with opportunities and threats. Two sources of
research and self observation were used for both tables. The first research used was a
reflective project conducted by the local government in 2003, gathering together experts
from public, private and social sectors. This project aimed to identify short and long
term strategies that could boost economic development for MICHOACAN through a
SWOT analysis.
Table 5: SWOT Analysis of Morelia (Strengths and Weaknesses)
Strengths
• Strong social and family structure, preservation of traditions and cultural manifestations
• Business and civic organizations with social representativeness
• Organized and responsible promotion of social participation by the government
• Effective educational infrastructure
• Diversified hotel supply
• Awards of hotel quality improves competitiveness
• The city was declared a World Heritage Site by UNESCO*
• Political will for the strengthening of tourism*
• Hospitality of the inhabitants*
• Efficient communications infrastructure*
• Strategic geographic location*
• Low seasonality of tourism*
• Several cultural events throughout the year*
Weaknesses
• Reduced linkage between business and academia
• Concentration of economic activities in the service sector
• Low level of human development, high levels of marginalization
• Constant presence of conflict and teachers’ unions
• Limited corporate culture
• Disordered population growth, mainly in Morelia
• Important regional imbalance (in Morelia and surrounding municipalities)
• Partisan interests obstruct the evolution of development programs
• Positioning Plans inconclusive
• Deficient credit offer
• Isolated efforts of public sector entities support
• Indiscriminate efforts for tourist attraction regardless of profitability
• Deficient professionalization of tourism sector
• Unfair competition
• Deficient offer and identity of museums
• Hotels offered exceeds demand growth
• Average tourist stay is lower than the national average
• Lack of usage of competitiveness theory in Morelia and Michoacán
Note: Asterisk (*) indicates self-observation.
Source: State Government, Ministry of Tourism, Tello, Gomez, and Lopez, 2010.
The planning horizon was the year 2030. The Morelia tourism-related strategies
considered to be still relevant were taken and included here.
The second source is a paper by CIETEC members published in 2010. It details a
SWOT analysis specifically for tourism in Morelia. Also include are other characteristics
from self-observation, and they are highlighted with an asterisk (*).
Among the strengths of human capital is that it is distinguished for its hospitality
and adherence to the customs, traditions and expressions of regional culture, as well
as the political intention to strengthen the tourism sector. The mixture of these two
characteristics provides an important foundation, generating an enabling environment
for tourism in addition to the architectural beauty of the city, its cultural richness and
efficiency of communications infrastructure.
Table 6: SWOT Analysis of Morelia (Opportunities and Threats)
Opportunities
• Take advantage from the flow of remittances from Mexicans from Michoacan living in U.S.
cities into productive investments
• Give support to the growth of well-prepared academic groups
• Improve Morelia as a city with high quality of life and availability of services
• To strengthen the society and institutions through mechanisms of social and civic
participation
• Create an enabling political, social and economic environment that provides certainty to
investors
• Diversify tourism products: children, businesses, seniors, sports, sustainable tourism
• Improve Morelia as a logistics hub for the movement of tourists to other destinations
• Strengthen and diversify the supply of museums in the city
• Encourage development of arts and crafts building
• Create synergy with low-cost airlines
• Using information provided by the Tourism Research Centre*
• Increase the research related to tourism*
• Strengthen the links between tourism business network*
• Increase the presence of foreign students in the existing universities*
• To improve the positioning of Morelia as a tourist destination*
• Diversify the structure of tourism supply and demand*
Threats
• Uncontrollable migration and the consequent loss of human capital of the entity
• Increased social conflicts (teacher and unions)
• Increased economic dependence on the United States
• Loss of societal values
• Abandonment by the government of their priority for tourism due to insecurity
• High rates of insecurity*
• Organized crime discourages productive investment*
• Deterioration of the international image as a tourist destination in the country*
• Manipulating tourism for partisan purposes*
Note: Asterisk (*) indicates self-observation.
Source: State Government, Ministry of Tourism, Tello et al., 2010.
Within the weaknesses the deficiency in the operation of the entire sector arises.
This happens as a result of identified weaknesses in the professionalization of the sector,
limited entrepreneurial culture and the limited links between business and education
sector. These are assumed as negative impacts on the competitiveness of Morelia.
These weaknesses also impact the planning process of the tourism sector. Furthermore,
the rapid growth in the hotel service offering was identified as another weakness, due to
the low rate of stay of tourists in comparison with other similar destinations in the
country.
The fate of poor planning leads to an imbalance in the profitability of participating
companies, which then leads to unfair competition, also mentioned as another weakness.
As such, low professionalization leads to underutilization of the potential of
Morelia as a tourist destination, as well as the absence of the concept of competitiveness
in the sector. Therefore, these weaknesses are reflected in low levels of productivity.
On the other hand, the opportunities shown in Table 6, focus on strengthening
the city as a tourist destination through government and business efforts.
It is important to note that the strengthening of cooperation between the private
sector and universities is very important, creating useful knowledge for the sector’s
operating performance, as well as human capital formation.
During the last decade, the state government has been focusing its efforts on
cultural tourism, based on the idea that this factor is already abundant in the city.
However, there are other options within tourism that have been neglected or have been
underutilized. For this reason, it is also important to pay attention to the diversification
of tourism products offered in the city in order to modify the structure of supply and
demand for areas of tourism that contribute to the exploration of other niches attractive
to tourists and investors.
The main threat identified is the current climate of insecurity prevailing in the
state. This has a directly negative impact on the destination’s image, exacerbated by the
migration of villagers to the United States in search of better opportunities of life.
IX. Strategies
In light of the analysis above, the following strategies to increase the development
of the competitiveness of tourism in Morelia are proposed:
• Strengthen knowledge through an increase in current streams of research in the
existing research centre.
• Install new specialized research centers in generating awareness of intangible
cultural assets such as gastronomy, traditions and crafts.
• Install a competitiveness observatory to provide knowledge about the performance
of the sector in order to have a starting point for the evaluation of it, as well as
industry trends and opportunities for the destination.
• Establish competitiveness indicators to evaluate the efficiency of training centers,
profitability and business efficiency and the impact of government policies that
encourage the identification of other potential activities of the sector.
• Integrate into a “cluster” the operation of agents in order to professionalize the
industry position as well as its importance in society, with the aim of these efforts
having an impact on national and international image as a tourist destination.
• Integrate “clusters” for other industries of the city in order to improve their economic
performance and contribute to the diversification of the investment portfolio of
Morelia.
• Create economic and financial programs as motivators in business creation, promotion
and creation of new jobs.
• Strengthen links between business, academia and government agencies to aggregate
efficient operation.
X. Conclusions
Wealth creation has been an important topic for private business managers as
well as for politicians. It has been analyzed over time, from different points of view, and
countries have developed distinct ways to attain a stage of development in their
economies. The sustainability of such wealth is also important.
From an economic point of view, nation’s place importance on wealth creation
because it brings improvements in the quality of life of its inhabitants, providing them
with income to cover their basic needs, in addition to promoting a strong economy as a
shelter with enough opportunities for a dignified life.
The theory of competitiveness has become a very important element in creating
wealth. It is based on productivity. To achieve this, it is necessary for the company to
figure out the exact need they must fulfill, in order to be able to optimize the resources
consumed in the production process. A group of companies that apply this concept with
the joint participation of government and supporting institutions will be creating a
fortress that will turn the region into a major, competitive, system difficult to match, due
to the intrinsic knowledge created, in addition to the skills necessary to address to other
companies in its sector worldwide.
The tourism sector, meanwhile, enjoys a natural regionalization, so it is very
likely to raise its competitiveness by creating a cluster on Michael Porter’s competitiveness
theory.
The city of Morelia is an excellent environment to house a cluster of tourism
which serves to implement its best practices. It also represents a major tourist destination
in Mexico. The city has an infrastructure that meets these needs, although it is necessary
to enhance its operation in the interests of generating positive external economies.
The SWOT analysis demonstrates the potential of tourism in Morelia city. It also
denotes the recognition of the importance of the sector for its inhabitants, as well as the
available support by the government, and does so in having identified the sector as an
important driver of regional economic growth.
At the same time, it highlights the need to strengthen ties between companies
and academia to support the creation of knowledge that could then be reflected in
operational improvements in the sector, both in their professionalism, as well as the
diversification of tourism products that help in positioning the destination domestically
and internationally.
It also highlights the need to reduce the climate of insecurity in the city, in order
to improve its attractiveness, not only as a tourist destination, but also as an investment
destination, thus strengthening economic growth and raising the quality of life of the
inhabitants of Morelia City.
References
Alburquerque, F. “El Enfoque del Desarrollo Económico Local. Cuaderno de Capacitación
1: Desarrollo Económico Local y Empleabilidad,” Programa AREA: Organización
Internacional del Trabajo, Buenos Aires, Argentina, 2004.
Altenburg, T. and Meyer-Stamer, J. “How to Promote Clusters: Policy Experiences from
Latin America,” World Development 27(9), 1999: 1693-1713.
Altenburg, T., Gillegrand, W., and Stamer, J.M. “Building System Competitiveness,”
German Development Institute, 1998.
Arzeni, S. and Pellegrin, J.P. “Entrepreneurship and Local Development,” OECD
Observer 204, 1997: 27-29.
Clarke, J. “A Framework Approaches to Sustainable Tourism,” Journal of Sustainable
Tourism 5(3), 1997: 224-234.
Da Cunha, S.K. and Da Cunha, J.C. “Tourism Cluster Competitiveness and Sustainability:
Proposal for a Systemic Model to Measure the Impact of Tourism on Local
Development,” Brazilian Administration Review (BAR) 2(2-4), 2005: 47-62.
Ferreira, J. and Estevao, C. Regional Competitiveness of Tourism Cluster: A Conceptual
Model Proposal, MPRA(Munich Personal RePEc Archive), 2009, http://mpra.
ub.uni-muenchen.de/14853/ retrieved on November 30, 2010.
Ingley, C. “The Cluster Concept: Cooperative Networks and Replicability,” International
Council for Small Business (ICSB) 27, 1999.
Instituto Nacional De Estadistica Y Geografia (INEGI). “Estados Unidos Mexicanos,
Resultados Preliminares,” 2010, http://www.censo2010.org.mx/doc/cpv10p_
pres.pdf, retrieved on November 30, 2010.
Instituto Tecnológoco Y De Estudios Superiores De Monterrey (ITESM). Perfitur 2009,
Perfil del Turista que Visita el Estado de Michoacán, Centro de Investigación y
Estudios Turísticos del Tecnológico de Monterrey, Programa Editorial del
Tecnológico de Monterrey, México, 2010.
Mexico’s National Tourism Ministry. Integración de Turísticos Competitivos: Clústers
Turísticos, Programa de Competitividad, Serie de Documentos Técnicos, México,
2001.
Meyer-Stamer, J. “¿Qué es el Desarrollo Económico Local? ¿Por qué es tan Difícil?”
Perspectivas y Retos de la Competitividad en México, Centro de Desarrollo
Empresarial, UNAM-CANACINTRA, Mexico, 2003.
Meyer-Stamer, J. “Systemic Competitiveness and Local Economic Development,”
Mesopartner, Local Economic Delivery, 2008.
Michoacan State Ministry of Culture. http://www.michoacan.gob.mx/Cultura retrieved
on November 30, 2010.
Michoacan State Tourism Ministry. http://www.turismomichoacan.gob.mx/ retrieved on
November 30, 2010.
Nordin, S. “Tourism Clustering and Innovation. Paths to Economic Growth and
Development,” European Tourism Research Institute, Ostersund, Sweden, 2003.
Organization for Economic Cooperation and Development (OECD). “Boosting Innovation,
The Cluster Approach,” OECD Proceedings, 1999: 12.
Pechlaner, H.A., Smeral, E.B. and Matzler, K.C. “Customer Value Management as a
Determinant of the Competitive Position of Tourism Destinations,” Tourism
Review 57(4), 2002: 16.
Porter, M. “Clusters and the New Economic of Competition,” Harvard Business Review
76(6), 1998: 77-90.
Porter, M. The Competitive Advantage of Nations, New York, The Free Press, 1990.
Smeral, E.: “The Impact of Globalization on Small and Medium Enterprises: New
Challenges for Tourism Policies in European Countries,” Tourism Management
19(41), 1998: 376.
Sölvell, O., Lindvquist, G. and Ketels, C. The Cluster Initiative Greenbook, Estocolmo,
Sweden, 2003, http://www.cluster-research.org.
Tello, J. M., Gómez, K. and López, K. “Análisis del Desarrollo Turístico de Morelia,
Michoacán,” Carta Económica Regional 105(2), Guadalajara, Mexico, 2010:
49-75.
Vázquez B., A. “Endogenous Development. Networking, Innovation, Institutions and
Cities,” Routledge, London, 2002.
World Tourism Organization (WTO). Turismo en Iberoamérica, Panorama Actual
Edición 2009, Secretaria General Iberoamericana, Madrid, Spain, 2009.
World Tourism Organization (WTO). “Turismo y Desarrollo Local Sostenible: Elementos
para un Debate,” Noticias Delnet-Centro Internacional de formación de la OIT
34, Madrid, Spain, 2004.

Creating a Tourism Cluster in Morelia, Mexico

Transcription

Similar documents

Greater Gadsden, AL - Southeast Tourism Society

Bizovačke Toplice dd, Bizovac

PowerPoint prezentacija

Phyoe Wai Yar Zar Joint Secretary General

The Biesbosch Nationaal Park

Minimizing damage

Dark Tourism in Auvergne

U`mista Cultural Centre Development

Peak of everything

to read the full presentation