Saturday, December 15, 2007

Keep The Customer Satisfied

More on the “Gran Escala” project near Zaragoza (25 November: Bond Themes). “The Times” confirms what its Sunday sister paper had spoken of before; indeed it fleshes out what this complex will comprise – 32 themed casinos, 70 hotels, five theme parks, pyramids, sphinxes and golf courses. 25 million visitors are anticipated each year by 2015. And for those 25 million, there will doubtless be innumerable bars and also shops that stay open when people want them to be open, unlike in Palma for example. 25 million is well over double Mallorca’s current annual tourism intake. 25 million people heading to a piece of reclaimed desert, modelled as the new Las Vegas, more or less on Mallorca’s doorstep and only the same flying-time from the UK.

But why is it that this news is coming from “The Times”? Where is the local reporting? This development is something of huge interest to Mallorca in different ways. Firstly, it poses a potential threat, especially to what there is of winter tourism. One waits to see what the theme parks will be, but they are sure to be of a variety that attracts family tourism as well as any short-breakers wanting to risk their money in a casino; they will not get 25 million visitors just for casinos and a round of golf.

Secondly, the Gran Escala highlights the muddled thinking regarding Mallorca’s tourism. To digress a little: In the late ’70s, Jan Carlsson, the boss of the Scandinavian Airlines System (SAS), transformed the airline’s culture and performance by creating a structure with the customer at the top of the organisational pyramid; everything else was subordinate to or supported the customer. SAS was one of the first organisations to have a recognisable customer-driven philosophy.

SAS was representative of a wholly different approach to management and organisations. Take this approach and place it in the context of tourism strategy, Mallorca’s tourism strategy, and where is the customer – the tourist – in the structure? Place it in the context of the whole economic model of Mallorca and where is the customer? It is the tourist, the customer, to whom the island is beholden. What fraction of Mallorca’s wealth would exist without that customer?

To continue the business analogy: Mallorca is at the mature stage of its life cycle. A business faced with the same situation has different choices – carrying on the same but with improvements, diversification, acquisition or sale of the business, progressive decline. Mallorca has three of these choices, unless those German businessmen who wanted to buy the island were really for real! To an extent, the first two of these choices are being pursued: hotel stock being upgraded, infrastructure improved, new products (and, yes, that includes all-inclusives). Otherwise, the diversification is clouded with ambiguity and irrelevance: the vagueness of “quality” tourism, the offer of tourism served with a gastronomy of culture and history – what culture, what history? These are minority niches of tiny portions for an island business grown fat on the mass market. As ever, where is the beef?

The thinking is too defined by an insular (inevitably perhaps) and romantic view of what tourists might want, as opposed to what tourists really want. The tourist, the customer, is not at the top of the pyramid. Much of the thinking is couched in terms of “sustainable tourism” with the environmental overtones this implies. This is the wrong adjective. Meaningful tourism is more accurate. Much as it may offend, for every one “cultural” tourist there are a hundred more who have mainly hedonistic pursuits at the top of their list of priorities. The tourist wants entertaining. This means attractions, this means fun. And this is where Gran Escala comes in.

A similar project was never going to be created in Mallorca and never will be. Land is too scarce and too expensive. The environmental lobby would not permit it. But more fundamentally, the building of some giant fun palace in Mallorca would conflict with the current group-think that can conceive of only culture and gastronomy. It is this group-think which denies the tourist, the customer, his or her place at the top of the pyramid.

Yesterday, I defended the Balearic Government. But I also said that things could be done differently. No, there would never be a Gran Escala in Mallorca, but the thinking behind it is precisely the sort of thinking that is required in Mallorca to shake the island out of its winter torpor and to sustain, yes sustain, meaningful tourism in the summer as well. The customer comes first – on a grand scale.


QUIZ
Yesterday – The Jackson Five. Today’s title – which duo?

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