Taiwan's MICE visitors: business, leisure and education dimensions

INTERNATIONAL JOURNAL OF TOURISM RESEARCH Int. J. Tourism Res. 10, 341–352 (2008) Published online in Wiley InterScience (www.interscience.wiley.com) DOI: 10.1002/jtr.661 Using the Delphi Method to Assess the Potential of Taiwan’s Hot Springs Tourism Sector Cheng-Fei Lee1 and Brian Edward King2,* Department of Marketing Management, Shih Chien University, Kaohsiung, Taiwan 2 Centre for Tourism and Services Research, Victoria University, Melbourne MC, Victoria, Australia 1 ABSTRACT The purpose of the present study is to identify the various factors that influence the competitiveness of the hot springs tourism sector. The research draws on the models of Ritchie and Crouch, Dwyer and Kim, and Enright and Newton, who concluded that destination competitiveness is determined by three major components: resources and attractors, destination strategies and environments. The investigation produced both qualitative and quantitative data using the Delphi technique. An expert panel reached consensus about priorities for the development of Taiwan’s hot springs tourism sector and provided written justifications for their responses. This paper reports on the qualitative findings of the three-round Delphi survey and provides a supply-side perspective on Taiwan’s hot springs tourism sector. An examination of the expert comments concluded that the Taiwanese are increasingly concerned with good health and longevity. This emerging characteristic offers new business opportunities for the providers of hot springs tourism experiences to extend their appeal into health protection and medical treatments. However, if they are to achieve sustainable development and ensure highquality visitor experiences, hot springs proprietors will need to work closely with local governments and communities to *Correspondence to: B. E. King, Centre for Tourism and Services Research, Victoria University, PO Box 14428, Melbourne MC, Victoria, Australia. E-mail: Brian.King@vu.edu.au promote sustainable use of natural hot springs and to conduct routine inspections of spa premises. Overall, the future of the hot springs tourism sector appears to be promising. Copyright © 2008 John Wiley and Sons, Ltd. Received 14 December 2006; Revised 14 December 2007; Accepted 18 December 2007 Keywords: Delphi method; Taiwan; hot springs tourism. INTRODUCTION V isiting hot springs destinations is one of the fastest growing markets for the tourism sector in Taiwan. Taiwan is situated on the fault line at the meeting point of the Euro-Asian and Philippine continental plates. Natural hot springs are abundant and widely distributed. The diverse content and smoothness of water minerals offer a potential basis for the development of Taiwan as a desirable hot springs tourism destination. However, Taiwanese authorities have paid little attention to the managed development of hot springs resources, nor have the various hot springs proprietors come together into a formal grouping. There has also been an absence of legislation to protect the use of the water, which is endemic in the hot springs area. In many cases, this has led to the over-exploitation of the natural environment and its resources. According to the Taiwan National Hot Springs Association, only half of the 230 hot springs establishments around the island possess the required water and land use permits (Water Resources Management and Research Centre, 1999). This is indicative of a loosely regulated environment. Copyright © 2008 John Wiley & Sons, Ltd. C.-F. Lee and B. E. King 342 Despite these limitations, the appeal of hot springs bathing has been growing. According to recent survey findings, the percentage of the Taiwanese population who have visited hot springs jumped from 2% in early 1999 to 23% in late 2002, with the latter percentage equating to 4 million visits annually (Central Geological Survey, Ministry of Economic Affairs, 2003). One impetus for this growth has been an increasing awareness of the importance of good health. A survey by the Directorate General of Budget, Accounting and Statistics (cited in Chang et al., 2003, p. 55) reported that the most desired lifestyle for the Taiwanese involves the maintenance of good health (59%), followed by enjoying family time (26.7%) and having a wealthy life (26%). In light of the rise of good health as a travel motivation, it appears likely that hot springs tourism will develop from both a supply and a demand perspective. Responding to market growth, many hot springs proprietors have invested in the construction or renovation of their properties, and have even added modern scientific spa equipment in an attempt to transform the traditional concept of leisure-focused hot springs bathing into the more specifically health-related concept of hot springs hydrotherapy (Taiwan Tourism Bureau, 2002). In 1999, the Taiwan authorities introduced the ‘Hot Springs Development Management Program’ in an effort to improve the quality of experience provided in the various hot springs areas. The ‘Spa Law’ was subsequently introduced (in 2003) to formalise the conservation and sustainable use of natural hot springs resources. Despite the recent progress made by the industry and government sectors, much remains to be done. The present study uses the Delphi technique to explore the key determinants of destination competitiveness from a supply-side perspective. It is hoped that the findings can help establish a guiding framework for the future development of Taiwan’s hot springs tourism sector. This paper focuses exclusively on the qualitative part of a Delphi study undertaken by the authors and documents the key commonalities and differences evident among the various expert respondents. It also attempts to highlight some key obstacles to the achievement of sustainable development. Copyright © 2008 John Wiley & Sons, Ltd. LITERATURE REVIEW Searching out special places that offer curative powers of natural, thermal and mineral springs has long been popular in Western societies. European spas have traditionally been engaged in providing medical care or treatment to people suffering from certain types of illness. However, several current trends are challenging the traditional spas whose ethos is based on medical cures and mineral springs, including the growing number of health and fitness enthusiasts and an increased interest in pampering, relaxation and beauty treatments. Cockerell (1996) has observed that in Europe, the spa sector is composed of two market segments: those visiting spas and health resorts primarily for medical reasons and those visiting for purposes more closely aligned to traditional tourism motivations. Many spa and health resorts are responding to this change by blending medicine and tourism in an effort to keep their traditional medical clientele, while adjusting their image and products to meet the perceived needs of a growing health tourism market (Bywater, 1990). Although there is little empirical evidence to prove the success of such strategies, the hybrid approach has clearly blurred the distinction between the traditional medical cure and mineral springs-based spas. The spa tourism movement in the USA has become more leisure-oriented than its counterpart in Europe. Many North American spas no longer describe themselves exclusively in terms of the therapeutic properties associated with their natural mineral waters. Related consumer options now extend to spas on cruise ships, club spas, day spas, destination spas, medical spas, resort/hotel spas and mineral springs spas. These emerging concepts offer a range of programmes targeted at physical, emotional and spiritual self-improvement (International Spa Association, 2001). In developing spa and health options within the resorts sector, Australia seems to be following the US model. A recent study by Bennett et al. (2004) profiled the spa and health resort sector in Australia. It was found that the largest group of health resorts may be described as mainstream and as offering a tourism focus, with a much smaller group focusing on alternative and medical treatments. Australia does not have Int. J. Tourism Res. 10, 341–352 (2008) DOI: 10.1002/jtr Using Delphi to Assess Taiwan’s Hot Springs Tourism Sector the strong ‘spa culture’ tradition of Europe. This limitation has provided an opportunity for emerging spa and health resorts to broaden their scope beyond the established attributes of a traditional medical orientation. The growing interest in health and fitness has been broadly detrimental to the traditional medical cure and mineral-based spas. However, there is considerable growth potential within the leisure side of the spa and health resort business with its emphasis on relaxation, fitness, stress reduction and beauty (Smith and Jenner, 2000; Douglas, 2001). Whereas much earlier spa development was prompted by the demand from European consumers, more recent developments have catered to the Asian market (King and McVey, 1996). A number of Asian destinations have tapped into this increasingly lucrative market, sometimes irrespective of the quality of their mineral springs natural resources. Japan is one of the few countries in the world with abundant hot springs. The recent increase in health consciousness has prompted a more proactive approach to the development of natural thermal springs. These developments address the ageing population, promote the health benefits arising from soaking in hot springs, encourage the view that soaking in hot springs maintains youth and beauty among females and, most importantly, capitalise upon the resurgent popularity of the ‘back to nature’ ethos. The health-oriented social trend and the pursuit of togetherness with nature may lead the typical leisure-oriented onsen resort towards either a true ‘hot springs health resort’ or to a traditional European-style ‘health resort’ (Kobayashi, 2000; Nakata, 2000). In Thailand’s case, the spa sector has recently witnessed phenomenal growth. Key strengths include high-quality diverse spa services and products integrating traditional Thai herbal recipes and ancient remedies, value for money, friendly and competent spa staff, architectural design, atmosphere, and ambience and cleanliness (Tourism Authority of Thailand, 2003). Malaysia is another newcomer in the spa and health tourism market. The Malaysian government has marketed health-related tourism aggressively via international advertising and trade and investment missions in order to create and promote awareness. Local hotels have tapped Copyright © 2008 John Wiley & Sons, Ltd. 343 into this emerging market segment by providing comprehensive wellness facilities and by offering spa holidays and health rejuvenation tourism packages. A combination of cultural diversity and rich heritage plus wellestablished and affordable health-related facilities and services, have enabled Malaysia to compete effectively with other well-established health care tourism destinations in the region such as Singapore and Thailand (Wong, 2003). From the foregoing discussion, it is clear that the development of the hot springs tourism sector in Asia has differed from its equivalent in the West. The latter has undergone a remarkable transformation from a medical treatment focus into tourism and leisure pursuits, whereas the former is increasingly emphasising the health benefits and curative qualities of hot springs bathing and is expanding the traditional leisure-oriented applications of natural springs into the medical and therapeutic fields. The literature has shown that two alternative paths of development may be pursued, namely a health promotion and leisure focus or an exclusively purely medical treatment focus. This distinction should provide some insights into the possible future directions for Taiwan’s hot springs tourism sector. RESEARCH DESIGN The hot springs tourism sector in Taiwan is confronted with the need to achieve sustainable development. One of the aims of this study is to formulate a guiding framework which will be able to assist industry and government to maximise destination competitiveness and achieve long-term sustainability. Previous work by Dwyer and Kim (2003), Enright and Newton (2004) and Ritchie and Crouch (2000) has provided valuable insights into the identification of components viewed as important in determining the competitiveness of tourism destinations. Important factors include tourism resources and attractors, as well as destination management and macroand micro-environment. Tourism destination resources and attractors are supply elements that refer to the critical attributes of a destination that attract visitors and form the basic foundations of sustainable tourism (Crouch and Ritchie, 1999). A destination is often Int. J. Tourism Res. 10, 341–352 (2008) DOI: 10.1002/jtr C.-F. Lee and B. E. King 344 Table 1. Construction of determinants of destination competitiveness for the hot springs tourism sector. Major components Elements Sources Tourism destination resources and attractors Natural resources, cultural assets, special attractions, accommodation, transportation, safety and security Tourism destination strategies Capabilities of destination management organisations, destination planning and development, environmental management, service quality management, human resource development, destination marketing management, pricing Socio-cultural changes, economic growth, demand conditions, community participation and attitudes, intra-industry interaction Tourism destination environments conditioned or limited by external environmental forces, over which the authorities exercise minimal control (Kotler et al., 1993). Destination strategies are the processes or actions which attempt to match internal tourism resources and destination attractions with relevant external environments (Crouch and Ritchie, 1999). Table 1 shows the elements selected for the study, classified according to the three major themes. The Delphi method has been proven to be a useful information-gathering and modelbuilding tool and was therefore assessed as an appropriate research methodology for this study. Originally developed by Dalkey and Helmer in the 1950s at the Rand Corporation, the Delphi method is based on a structured process that ‘obtains most reliable consensus of opinion of a group of experts by a series of intensive questionnaire interspersed with the controlled opinion feedback’ (Helmer, 1983, p. 135). This approach attempts to capitalise upon the positive dimensions of group interactions while minimising the negative association with many social difficulties encountered within such groups (Rowe et al., 1991). It is of note that Taiwan is a collectivist culture, with a strong emphasis among the population on fitting in harmoniously with others (Hofstede, 1980). On this basis, the use of the Delphi technique may enhance the prospects of drawing out objective responses and avoid the risk of bias either by the institutional loyalties of Copyright © 2008 John Wiley & Sons, Ltd. Derived from Ferrario (1979), Kim (1998), Ritchie and Crouch (2000), and Dwyer and Kim (2003) Derived from Porter (1990), Ritchie and Crouch (2000), andDwyer and Kim (2003) Derived from Jefferson (1995), Williams and Lawson (2001), and Enright and Newton (2004) participants or by peer pressure arising among the group during the course of the study (Frechtling, 1996). The expert panel A review of previous studies (Gearing et al., 1974; Faulkner et al., 1999; Hudson et al., 2004) has shown that the most common research method used for the assessment of tourism competitiveness is from the supply-side perspective (e.g. governments at all levels, hotel associations and tourism organisations, travel agencies and tour operators). It is believed that a supply-side investigation involving those who possess knowledge about the entire portfolio of destination competitive resources and are in regular contact with the relevant consumer group may provide insights into current marketplace realities. In acknowledgement of the need for both applied and theoretical inputs and expertise, the researchers identified three panel groupings. Several criteria were used to assess the suitability of prospective participants. In the case of the industry grouping, participants should be currently employed in the tourism industry, have a minimum of five years working experience and hold membership of a relevant tourism association. In the case of the public sector, participants must have a minimum of five years working experience in a decision-making capacity within a government-related tourism Int. J. Tourism Res. 10, 341–352 (2008) DOI: 10.1002/jtr Using Delphi to Assess Taiwan’s Hot Springs Tourism Sector organisation. For academic participants, the requirement was for a minimum of five years teaching experience in tourism at a university, evidence of tourism publications relevant to Taiwan’s tourism sector and an interest in recreation and/or tourism management research. Snowball sampling technique was used, relying on referrals from initial participants to generate additional participants. Snowball sampling is most suitable for collecting information from individuals who have specific characteristics or knowledge, but are very difficult to locate and contact (Cavana et al., 2001). The final sample was limited to those who had been suggested and approached through word-of-mouth communication and had expressed a willingness to participate. Procedure The three-round iterative Delphi process was intended to identify the factors determining the competitiveness of the hot springs tourism sector. Turoff (1970) notes that Delphi studies should be limited to three rounds since response rates are likely to decline, especially from the second round onwards. The threeround survey took place between the end of March 2005 and the beginning of July 2005 and was conducted via mail, preceded by a telephone conversation to establish a rapport and secure participation in the panel. A mail survey offers anonymity and access to widely dispersed samples, and affords respondents time to complete the questionnaire at their own pace (Cavana et al., 2001). Questionnaire development Given the exploratory nature of the study, each round of the questionnaire contained a combination of both open-ended and closeended questions. These sought the views of expert respondents on: (i) the extent to which tourism resources and attractors contribute to the attractiveness and character of the hot springs tourism sector; (ii) the extent to which tourism strategies ensure the sustainability of the hot springs tourism sector; and (iii) the extent to which external, competitive environment affects the growth potential of the hot springs tourism sector. The results obtained Copyright © 2008 John Wiley & Sons, Ltd. 345 from previous rounds were collated and then presented to participants to determine whether their responses were in agreement with the average participant responses. As each round was completed, the opinions of the group moved progressively towards consensus. Data analysis Quantitative analysis was conducted to indicate the extent of group consensus. These included mean, median, standard deviation, inter-quartile range, frequency counts and percentage. Content analysis was undertaken to identify and record a range of ideas, opinions, values and/or judgements. Content analysis is a highly flexible approach that seeks to quantify unstructured information into predetermined categories in a systematic and replicable manner (Bryman, 2001). To ensure the anonymity of respondents and assist readers, each of the respondents was assigned a number somewhere between 1 and 31 based upon an alphabetical ordering of their name. For reporting purposes, gender (‘M’ for male and ‘F’ for female) and organisation type (‘G’ for government officer, ‘H’ ′for hot springs proprietor and ‘A’ for academic researcher) were noted. RESULTS AND DISCUSSION The task of establishing a framework capable of providing a guide for the future of Taiwan’s hot springs tourism sector was achieved by gathering input from a panel of 31 in the first round, 28 in the second round and, finally, 26 in the third round. The composition of the expert panel is shown in Table 2. Although the sample size is small, the key issue for such research is achieving quality rather than quantity. It is more important to select panellists based on their high level of expertise, which enables them to judge and comment on the key issues that have been proposed. The small number does, however, satisfy the threshold of 25 proposed by Dalkey et al. (1969) as sufficient for minimising error rates and improving reliability of outcomes. The various comments received from the expert panel have been summarised and discussed under three main themes. The themes are: tourism destination resources and Int. J. Tourism Res. 10, 341–352 (2008) DOI: 10.1002/jtr C.-F. Lee and B. E. King 346 Table 2. Delphi panel membership. Membership Government officer Hot springs proprietor Academic scholar Total First round 14 11 6 31 attractors; tourism destination strategies; and tourism destination environments. Tourism destination resources and attractors Written comments on the importance of tourism resources and attractors to destination competitiveness were subsequently grouped into seven main sub-themes: natural resources; cultural assets; special attractions; accommodation; cuisine; transportation and safety; and security. The codings were based on the identification of key words. Natural resources. Most respondents agreed that the concentration and variety of natural hot springs provide Taiwan with a definitive advantage for tourism. Because many of the hot springs are located in attractive settings away from urban areas, they can offer visitors an authentic ‘back to nature tourism experience.’ Respondent 17 (M, G) remarked that ‘Taiwan enjoys a nature-endowed advantage in developing the hot springs tourism sector. It has a very comfortable year-round climate and is blessed with various landscapes.’ The written comments affirmed the view that natural resources are one of the most important contributors to the overall attractiveness of the hot springs tourism sector. Cultural assets. Respondents generally agreed that cultural and historical assets add another appealing dimension to the hot springs experience. In particular, souvenir shopping is recognised as an integral part of the cultural experience. Respondent 6 (M, H) wrote that ‘Tourists may want reminders what they see in the areas they visit. This in turn necessitates the existence of souvenirs. The products in the souvenirs shops are goods made of local materials and are strongly linked to areas tourists Copyright © 2008 John Wiley & Sons, Ltd. Second round 13 10 5 28 Third round 14 9 4 26 visit. They also reflect the daily lifestyles, material and historical values traditions and cultures of the people.’ Although most comments were positive, some respondents argued that cultural attractions are just an added bonus, making little contribution to the overall competitiveness of the hot springs tourism sector. Respondent 5 (M, H) commented that ‘Cultural assets would certainly increase the breadth and depth of the destination experience, and deepen visitors’ understanding of the destination. But their existence was not considered to be absolutely necessary for the development of the hot springs tourism sector.’ Based on these comments, it is concluded that cultural assets are desirable, but not essential. Special attractions. A large majority of respondents saw considerable merit in organising activities, events and festivals at the community level to help overcome seasonality constraints. Respondent 29 (M, A) viewed special attractions as a useful tool for enriching the tourist experience, for increasing community exposure and for maximising business opportunities. He suggested that activities, events and festivals should be themed around the hot springs and should be available year round or be held annually. The summary of the written panellist responses revealed that special attractions are the best solution for overcoming limitations of seasonality. Accommodation. According to respondents, the provision of accommodation must be operated and maintained in sufficient quality and quantity to meet consumer demand. Respondent 8 (M, H) urged all accommodation properties to be quality controlled in accordance with international standards. Respondent 17 (M, G) gave an alternative view, noting that ‘Not every property needs to comply with international Int. J. Tourism Res. 10, 341–352 (2008) DOI: 10.1002/jtr Using Delphi to Assess Taiwan’s Hot Springs Tourism Sector quality standards. The simplest way to ensure a high quality lodging experience is to keep the premises clean and neat at all times. This experience can be further enhanced through creating an authentic atmosphere in harmony with natural surroundings.’ Incorporating authenticity into accommodation products leads to a sense of place, which can enhance visitor satisfaction and ensure that the historical integrity of a destination is maintained (King, 1994). The written comments confirmed that the accommodation sector plays a significant role in encouraging visitors to extend their length of stay. Cuisine. Most respondents believed that visitors would be impressed by the wide availability and variety of Taiwanese cuisine. The utilisation of authentic home-style Taiwanese cuisine would definitely add value to the hot springs tourism experience. Respondent 15 (M, G) further emphasised the necessity of creating health-conscious menus, with a focus on locally sourced and seasonal ingredients, in response to the growth in real incomes, living standards and ageing population. Food is an important aspect of tourism, which can play a part in expanding tourism offerings, adding value to the visitor experience and raising destination awareness. Transportation. Hot springs tourism in Taiwan has expanded considerably in recent years, stimulated in part by the comprehensive, island-wide, multi-modal transportation network. However, this growth has been accompanied by traffic congestion and high demand for parking space. To ease these problems, some respondents insisted on improved planning and scheduling of public transport, whereas others argued that the Taiwanese prefer to travel by car and that it is pointless trying to improve public transport provision. Respondent 5 (M, H) remarked that ‘the drawbacks of providing public transport services outweigh its benefits’. Although the written comments on transportation varied, there was general consensus that an excellent transportation infrastructure is made up of three basic elements: well-connected transport routes between major cities and hot springs scenic Copyright © 2008 John Wiley & Sons, Ltd. 347 spots; clear road signs and guideposts; and sufficient parking spaces. Safety and security. Most respondents were aware of the seriousness of any safety or security incident occurring during the trip and urged immediate improvement. Respondent 1 (M, H) stressed that ‘the maintenance of a sanitary, safe, and healthful bathing environment is perhaps the most basic requirement for hot springs proprietors to achieve sustainable operation’. Similarly, respondent 5 (M, H) noted that ‘it is not only important to maintain the safety and security of all visitors on hot springs premises but equally important to educate them about courteous and safe manners for hot springs bathing’. Hot springs tourism activity involves drinking and bathing in mineral waters. Any incidents encountered over the course of a trip are likely to have an adverse effect on both international and domestic tourism. Tourism destination strategies The analysis of written comments on the importance of destination strategies to destination competitiveness focused on the following seven areas: capabilities of destination management organisations (DMOs); destination planning and development; environmental management; service quality management; human resource development; destination marketing management; and pricing. Capabilities of DMOs. Nearly all respondents characterised DMOs as government organisations responsible for fostering a good environment for business and investment. Their roles and activities can be divided into two main groups, depending on the nature of the task: general and specialised. General tasks are those activities associated with co-ordination, legislation, promotion, research and the provision of tourist information (Choy, 1993). Specialised tasks relate to the unique characteristics of the hot springs tourism sector, including the creation of hot springs databases, the inspection of the quality of hot springs water and the classification and grading of hot springs properties into different levels. Respondent 5 (M, Int. J. Tourism Res. 10, 341–352 (2008) DOI: 10.1002/jtr 348 H) pointed out that ‘government assistance, advice and guidance can help hot springs proprietors improve operational efficiency and effectiveness which in turn enhance the overall quality and image of the sector’. Written comments clearly portrayed a range of roles and functions for the DMO — from a marketing or promotion focus to a broader effort of building capacity for the strategic management of the hot springs tourism sector. Destination planning and development. Many written comments indicated that the focus on destination planning and development at all levels of government should be oriented towards regulating the use of land and hot springs resources, strengthening the incentives for entrepreneurial investment and reorganising the existing hot springs scenic spots. Several respondents even stressed the urgency of establishing a series of hot springs demonstration sites to exemplify the best management practices, improve environmental sustainability and minimise environmental damage. The application of sustainability principles into strategic-level destination planning and development is essential to ensure that the hot springs tourism sector has a clear idea of where it is going and what it needs to become successful in the longer term. Environmental management. The majority of respondents recognised the importance and urgency of environmental management in protecting the health of natural ecology and improving the quality of community life. According to the expert panel, the environmental management approach is composed of four basic elements: third-party certificate and accreditation; hot springs water rights (hot springs allocation system); reconstruction of pipe and pumping systems; and upgrading sewage system infrastructure and wastewater treatment facilities. Respondent 6 (M, H) reported that ‘the greatest benefit of accredited third-party certification is gaining wide market opportunities and establishing a strong brand which guarantees a certainty and consistency of quality’. While hot springs treasures are now being listed as one of the significant tourism attractions in Taiwan, environmental Copyright © 2008 John Wiley & Sons, Ltd. C.-F. Lee and B. E. King management has been considered as an effective and successful tool in achieving the aims of sustainable development. Service quality management. The written responses supported the establishment of standards to control the quality of the hot springs experience. Respondent 2 (M, H) explained that ‘the role of service quality standards is to protect the interests of customers and to guarantee a minimum level of excellence’. To measure the quality of hot springs experience, previous studies have identified two key dimensions, namely functional quality (how the service was delivered) and technical quality (what was delivered) (Mueller and Kaufmann, 2001; Snoj and Mumel, 2002). A majority of respondents emphasised the functional aspects of the service rather than the technical aspects. This finding leads to the conclusion that the knowledge, skills and attitudes of service personnel are key determinants of how customers evaluate the quality of their hot springs experience. The quality of service personnel is inseparable from the quality of service. Human resource development. Maintaining a highly qualified and effective workforce is critical to the success of an individual tourism enterprise and to the industry as a whole (Ritchie and Echtner, 1995). Respondents viewed education and training as closely related and suggested that an integrated approach is a prerequisite for successful human resource development. Respondent 17 (M, G) noted that ‘The integrated approach will open doors of opportunity for people working in the (hot springs) tourism sector to continue to learn, to adapt to and develop new knowledge, skills and technologies, to move flexibly between occupations, to take responsibility for personal performance, to set and achieve high standards, and to work cooperatively.’ Respondent 8 (M, A) agreed with this proposition, but expressed concern over the shortage of highly qualified and experienced teachers in the professional field of spa resort management. Destination marketing management. With a view to gaining a positive profile in an increasingly crowded and competitive marketplace, Int. J. Tourism Res. 10, 341–352 (2008) DOI: 10.1002/jtr Using Delphi to Assess Taiwan’s Hot Springs Tourism Sector respondents suggested that the focus of destination marketing should be on new product and market development. Respondent 1 (M, H) remarked that ‘The curative power of natural hot springs has recently been in the media spotlight when a group of scientists found that it helps in the treatment of rheumatism, neuralgia, gynaecologic and digestive disorders. In this way, there will be no seasonality in visitation rates, if the hot springs tourism experience covers massage therapy, health and wellness.’ The promotion of health and prevention of disease will definitely broaden the marketability and appeal of Taiwan’s hot springs tourism sector and diversify its product offerings. Pricing. Pricing is another issue that was discussed in some depth by respondents. Written comments revealed that discounting is ineffective as a way of creating and stimulating tourism demand. There was, however, general agreement that hot springs experiences should be delivered at an affordable price without compromising quality. Respondent 17 (M, G) explained that ‘prices are determined in a market by demand and supply. Hot springs proprietors alone have little influence on price, not to mention setting a unified price for the hot springs sector.’ From the above, it may be concluded that the most important aspect of pricing is to ensure an optimal balance between price and added value from the tourist perspective. Tourism destination environments Written comments on the importance of external environmental forces contributing to destination competitiveness were analysed and placed into the following five categories: sociocultural changes; economic growth; demand conditions; community participation and attitudes; and intra-industry interactions. Socio-cultural changes. The implementation of the two-day weekend system in 2001 not only increased leisure time for the Taiwanese, but also promoted changes in lifestyle and modes of expenditure. Many respondents expressed a strong view that hot springs tourism is set to become more popular among health-conscious consumers who are seeking to enhance their Copyright © 2008 John Wiley & Sons, Ltd. 349 well-being through travel. The ageing of the population is also likely to have a significant impact on domestic tourism. Such changes are creating new business opportunities for hot springs proprietors to market the medicinal and therapeutic value of hot springs bathing. The future growth of the hot springs tourism sector is closely tied to the increasing proportion of the population that is in the older age bracket and more health conscious. Economic growth. A substantial proportion of respondents believed that the rapid growth and popularity of hot springs tourism is the outcome of the steady increase in disposable income and leisure time over the recent years. As expressed by respondent 6 (M, H), ‘the development of the economy and the increase in per capita disposable income has boosted the rapid growth of the tourism sector’. Some dissenting arguments were, however, expressed. Respondent 14 (M, G), in particular, reiterated that ‘Taiwanese people prefer overseas to domestic travel. Compared with the overseas tourism sector domestic tourism has not shared in the recent increase in disposable income to the same extent.’ Although there is disagreement about the extent to which economic growth contributes to the development of hot springs tourism, all respondents acknowledged its importance. Demand conditions. Several respondents stressed the importance of strengthening the domestic market before exploring foreign markets, on the basis that the latter will not be in a position to replace the former. This is consistent with the views of Porter (1990), who has indicated that domestic demand is more important than foreign demand because it is easier and faster to observe and understand the consumer needs and preferences of nearby markets. According to the Travel Survey (Taiwan Tourism Bureau, 2004), 102 million domestic tourist trips were undertaken in 2003, with an increase of 55% since 1998 (66 million). With an anticipated increase in domestic tourism, a corresponding increase in hot springs tourism is likely to follow. Community participation and attitudes. According to respondents, resident attitudes towards Int. J. Tourism Res. 10, 341–352 (2008) DOI: 10.1002/jtr 350 tourism as well as their endorsement and participation in tourism-related activity are keys to the achievement of sustainable tourism development. Respondent 6 (M, H) was positive about the involvement of community residents, asserting that ‘Hot springs properties will vary in productivity and competitiveness across regions depending on the level of community support.’ The absence of community participation and support in the decisionmaking process of destination planning may have a number of effects, including diminishing the level of support of local residents for tourism in their community, eroding the host community’s tolerance of tourism and heightening sensitivity towards further tourism development (Sheldon and Abenoja, 2001). It is, however, difficult to involve local residents in planning for tourism development. One possible alternative, as suggested by respondent 2 (M, H), is that local residents become service providers, establishing or operating their own businesses within the community. Intra-industry interactions. The panel generally agreed that the process of either competition or co-operation between small and medium-sized tourism enterprises leads to service delivery efficiencies and product improvements, which in turn strengthens the competitiveness of the hot springs tourism sector. Hot springs proprietors within the region may compete with each other in certain aspects on the basis of their individual strengths, but co-operate to highlight the distinctive features of their immediate region. This perspective is best evidenced by respondent 5 (M, H), who noted that ‘The competition is far more fierce amongst the subsectors of the tourism industry than within one sub-sector (hot springs tourism sector).’ While the dilemma of competition versus co-operation remains unsolved, hot springs proprietors must build and maintain good relationships to create mutually shared benefits as an ideal outcome. CONCLUSIONS AND OPPORTUNITIES FOR FUTURE RESEARCH Hot springs tourism is a newly emerging sector in Taiwan. The rapidity of growth makes it particularly important to develop a guiding Copyright © 2008 John Wiley & Sons, Ltd. C.-F. Lee and B. E. King framework based on the sector-specific determinants of destination competitiveness from a supply-side perspective. The present examination of the importance of tourism destination resources and attractions, tourism destination strategies and tourism destination environments in the context of Taiwan has produced several important insights with the potential to enhance the competitiveness of the hot springs tourism sector. First, it has been found that personal safety and security during a visit to hot springs is on top of the list of concerns. Since hot springs tourism involves drinking and bathing in mineral waters, any incidents encountered over the course of a trip can adversely affect the entire sector. Second, natural hot springs are unique, rare and irreplaceable assets that have already proven to be of significant economic value. Although they are marketed as ‘tourism products’, the next development phase will require the pursuit of economic and environmental sustainability on the part of both industry and government. The primary function of hot springs enterprises is to develop and maintain profitable operations within the framework of sustainable development, whereas the responsibility of the government is to oversee enterprise-level operations and provide the most appropriate assistance. Third, accommodation, cuisine and transportation constitute the supporting infrastructure which complements the overall hot springs tourism experience. The development of ‘service infrastructure’ would enable visitors to increase their length of stay and spending and ease travel movements. Fourth, given the multiplicity of service providers, every part of the hot springs sector must be committed to delivering a quality, value-formoney visitor experience. To achieve this goal, the sector is exceptionally dependent on a highly qualified workforce capable of delivering services. Finally, the Taiwanese people are becoming more aware of the need to maintain good health by participating in tourism and recreational activities. This phenomenon creates favourable conditions and incentives to expand the application of natural hot springs into the fields of health promotion and medical treatment. This study has provided both theoretical and practical contributions. As a piece of Int. J. Tourism Res. 10, 341–352 (2008) DOI: 10.1002/jtr Using Delphi to Assess Taiwan’s Hot Springs Tourism Sector country-specific research, it has contributed to the body of knowledge concerning spa development by assessing current practice and probable future directions for the development of the hot springs tourism sector in Taiwan. By sharing the Taiwan experience, the findings of the present study may assist other Asian destinations in promoting their hot springs tourism sector. In particular, the findings may be of interest to scholars in Japan (where hot springs tourism is highly developed) and in mainland China (where the sector is at the infant stage). In terms of its practical contribution, the present study provides industry and government decision-makers with a systematic exploration of what determines destination competitiveness, serving as an initial guidance for the further development of the hot springs tourism sector. Future studies might consider improving the accuracy and reliability of conclusions obtained from a consensus of experts by conducting a large-scale quantitative survey that brings an increased number of better-qualified experts from diverse backgrounds and experiences into the discussion, and compares the views prevalent among these three groups. This paper has examined expert opinions about the key determinants of destination competitiveness, with a particular application to Taiwan’s hot springs tourism sector. 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