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Tourism:Finding a Hook
By Michael Alan Hamlin
January 08, 2001

One of the questions we asked during our research for Marketing Places Asia, which as I noted last week is a joint effort between Northwestern University professors Philip Kotler and Irv Rein and (I’m happy to say…) myself, is, "What happens when a community lacks an obvious hook upon which to build a strategy? The community may be small, isolated or unattractive. The answer may be to promote an event that is not widely known or to create some attraction that has media appeal. Varanasi and Sepang are examples of how to generate a market.

Varanasi

In between the Varunasa and Asi tributaries of the Ganges River lies one of the world’s oldest, continually inhabited cities on earth, Varanasi, also known as Benares or Kashi. There are many similar places competing for tourists with the city, but Varanasi has managed to create a distinctive, global value proposition. Being one of the oldest "living" and most holy cities in India, Varanasi naturally attracts large numbers of domestic devotees. Many of them come to take in the over 2000-year old history of knowledge and culture that the city has to offer. Sensing an increase in peoples’ need for spiritual renewal and increasing acceptance of things spiritual, the small "City of Light" has opened itself to foreign visitors, too. It has used advertisements, incentives, and tour groups to market itself as a desirable tourist attraction.

As a result of these targeted efforts, every year millions of foreign visitors, pilgrims and non-pilgrims, come to the ghats — steps which lead down to the Ganges River — of Varanasi to participate in and view the annual bathing in the Ganges River, a ritual devout Buddhists participate in to cleanse themselves spiritually. Events such as special seminars on Buddhism and cultural festivities are supported with travel packages. Events are designed to bring in visitors from other countries and travel to the city has been facilitated with tours by trains and additional airline flights.

Other than the centuries old culture and spiritualism, it is the long series of ghats that draw visitors to Varanasi. Many Indians believe that anyone who dies on the banks of the Ganges in Varanasi attains instant "moksha" or enlightenment. This mega-event is now being used in a value added manner to market many more unusual offerings in the city and the region. For instance, while the age-old Varanasi handicraft industries of Varanasi — such as silk (saris and brocades) and carpet weaving — have long been famous the world over, they have recently received substantially more attention due to the many visitors who go shopping in the city and market them by word of mouth. Silk exports alone from the City of Light now account for 50% of total Indian silk exports.

What Varanasi has done is use its historical assets to both widen and broaden their market for tourist consumption and exportation of their products. Too often places fail to capitalize on their natural advantages and as a result become self-limited regional tourist attractions.

Sepang

The small Malaysian city of Sepang was little known internationally before the creation of the world-renowned Sepang Formula 1 (F1) Circuit in March of 1999. The area it occupies was formerly a humble palm oil estate before serious investments were made in this sporting facility. While many of Malaysia’s grandiose infrastructure investments are of doubtful utility or financial soundness, Sepang looks like an exception.

Today, Sepang is the venue for the FIA Formula One Championship and FIM 500cc World Motorcycle Grand Prix, both of which are among most prestigious sporting events in the world. It is also the first track in Asia to be given the privilege of using the F1 logo. The Formula One championship captures the attention of over two billion people from 200 countries through print, television, and radio reports.

The Sepang racing site can accommodate 130,000 spectators. The inflow of these visitors significantly raised the income of this place’s tourism sector (over $130-million in revenues in 1999) and provided other indirect benefits as well. But the real prize is the spin-off potential. According to Malaysian Prime Minister Mahathir Mohamad, who was present at the opening ceremony of the circuit, the building and operation of this facility will usher in other opportunities for Sepang. Apart from complementing development in the area, it is creating a springboard for Sepang to become the center of motor sports development in Asia as well as a center for research and development for the automotive industry.

These two places do not have the attraction packages of Hong Kong, Bali, or Sydney do. On the other hand, they show that even a small place without obvious strengths can capture attention in the global place market. The lessons for the Philippines and places in the Philippines are two. First, the Philippines has an awful lot of obvious, natural hooks waiting to be utilized. Second, enlightened strategic place marketing can make most any place a popular destination.

But it won’t happen without visionary, dedicated leadership.

(Mr. Hamlin is managing director of the consultancy TeamAsia and the author of two books on Asian economies and managing in Asia. His latest book is The New Asian Corporation: Managing for the Future in Post-Crisis Asia. His e-mail address is mahamlin@teamasia.com.ph.)


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