Episode 8: High Yield Tourism Podcast

Jens and Gary discuss if “high-yield tourism” is essentially “luxury tourism in disguise.”

They argue that viewing tourism as either “mass” or “luxury” is outdated, especially as the economics of travel have evolved considerably, particularly post-COVID.
They emphasize the importance of understanding where tourist spending is directed and how it can directly benefit local communities rather than focusing solely on high-end visitors. Niche tourism and building connections with destination communities are suggested as key to fostering sustainable tourism benefits.

The discussion notes that the pandemic exposed the limitations of overly simplistic tourism models and the need for a more nuanced understanding of tourism’s economic impacts. The speakers explore the evolving tourism industry in the post-pandemic era, highlighting a shift towards focusing on yield and profitability rather than just revenue and visitor numbers. They stress the importance of destinations diversifying their inbound markets, segmenting visitors, and tapping into domestic tourism as part of a high-yield model. Additionally, they emphasize the importance of understanding the purpose behind tourism development, which should focus on creating economic benefits, jobs, and positive brand associations for a destination.

The speakers acknowledge that high-yield tourism is flexible and can take different forms depending on the region or country. They discuss the importance of shifting tourism strategies from merely increasing visitor numbers to optimizing economic yield and contribution to GDP. They also emphasize the need for tourism boards and destinations to adopt a more segmented, diversified, and strategic approach that weighs the costs and benefits across different tourism niches and lifestyles. They highlight how city-based organizations excel in this area while national and regional destinations face greater complexity. Overall, they express enthusiasm about helping destinations develop new tourism models prioritizing economic impact over pure visitor growth.

The discussion underscores the need for a more strategic and rational approach to tourism development, moving beyond simplistic labels like “luxury tourism” or “mass tourism.” The speakers stressed the importance of ensuring tourism serves as a “force for good” that drives economic benefits while balancing the needs of visitors, residents, and local businesses. They also note that recovery from the COVID-19 pandemic has been uneven, and they anticipate significant changes in tourism patterns and seasonality in the coming years due to climate change.

The conversation also highlights the complexities of managing tourism in a way that promotes sustainable and equitable development. They discuss the importance of cultural understanding and responsible tourism in creating harmony between travellers and local communities. They emphasize the need to shift the tourism industry’s perspective from a growth-focused model to one that prioritizes community impact and the traveler’s experience. For example, they mention a concept from Saudi Arabia that focuses on creating a welcoming environment for visitors, demonstrating how small gestures can foster meaningful connections and high-yield tourism.

The speakers stress the importance of understanding tourists’ expectations and behaviours, not just when they arrive at a destination, but throughout their entire journey. They argue that the industry often focuses too much on the moment tourists land, missing crucial insights into how visitors plan, consume, and experience a destination. The speakers encourage listeners to engage with their work and explore how to better understand and cater to their visitors’ needs.