The need for tourism destinations to develop their own niche cannot be overemphasised. In this case, it means cutting away cliche tourism strategies and focusing on the ones in demand. In fact, the rarer and more unique the more exclusive the experience is, the more luxurious and desirable it will be for the target tourist market.
It is important that as a destination, you are not trying to cater to just everyone because everyone else is. Knowing who your target audience is and what your competitors are offering help you to build and deep-dive into the needs of the tourist market and create something special for them.
Why? For several reasons.
- By carving out a unique niche, a tourism destination can differentiate itself from other destinations and stand out in the minds of potential visitors.
This can help attract a specific target audience and create a loyal following of visitors who are interested in the destination’s particular offerings.
Take destination weddings for example. About 350,000 destination weddings take place each year. A hefty 23 per cent, or about 80,000 couples choose to get married in Las Vegas. This is why the city has gained a reputation as the “wedding capital of the world”. Italy is also doing bits, with 11,000 foreign couples choosing to get married there every year.
Even though you only get married once (in most cases), other couples are able to make an informed choice because of the reputation of these destinations.
- When a tourism destination has a unique niche, it can gain a competitive advantage over other destinations that offer similar experiences. This can help the destination attract more visitors and generate more revenue.
Two ways destinations can do this is by the cost advantage method or differentiation advantage method. Cost advantage is when a business provides the same services as its competitors, albeit at a lesser cost. Differentiation advantage is when a business provides better services than its competitors. Providing better services is the fastest way to attract more visitors and generate more revenue, and this can only happen with a clear-cut goal. As they say, a jack of all trades is a master of none.
- By focusing on a specific niche, a tourism destination can tailor its marketing efforts to a particular audience.
This can help the destination reach the right people with the right message and increase the effectiveness of its marketing campaigns. Seychelles is becoming another increasingly popular location for destination weddings. Recently, several Chinese wedding planners visited the island republic to explore the destination as a viable location for destination weddings. This happened because the marketing arm of the Tourism Department of Seychelles has been working extra hard to promote the destination.
When a destination carves out a unique niche for its services and offerings, it can focus on providing high-quality experiences to meet the specific needs and interests of its target audience. This can also help create memorable experiences for visitors and encourage them to return in the future.
Modern tourists are also becoming increasingly sensitive to the negative impact of mass tourism on destinations – they would rather contribute to a more sustainable form of tourism. A niche helps to resolve this. We have examples from Uganda and Rwanda who both remain focused on the luxury ecotourism market, especially with gorilla tourism. With this mostly singular focus, they ensure that their resources are being managed to avoid over-tourism.
Another way for destinations to stand out is to develop a working ecosystem for service providers and other stakeholders involved in creating a niche market. This will help them compete effectively, and provide a memorable experience for their visitors.