Seeds of Destruction

If you're in the business of marketing destinations, Stanley Plog's Leisure Marketing is a must read. There's a particularly poignant chapter about how destinations decline and fall. The irony is that the "seeds of destruction," as he describes them, are sown in the growth stage of the product life cycle. Those who don't manage the brand properly in the growth stage often find themselves rolling into a decline and, ultimately, a death spiral. Here's the sequence:

The destination is discovered and tourism grows. Everybody's happy. With growth comes an increase in land values. With higher land costs, developments become ever more dense to get "highest and best use" out of the property. With density, the destination gradually loses its charm and the very best visitors are lured away by more attractive destinations. To compensate, hotels and transportation companies increase their discounting ... which brings a discount oriented visitor (the "cheap charlies" of the world). Lower revenues mean less money available for investment and renovation, so the product suffers, creating a downward spiral.

Innovation, reinvestment, and attention to the brand are the antidotes.

Waikiki is now dealing with a crop of problems that grew from the "seeds of destruction" that were sown in the go-go years. Here's hoping that we've got the will to bring back the visitors that contribute to a healthy brand!