Tuesday, September 8, 2009

Building a Competitive Advantage in Canadian Culinary Tourism

Introduction

Food, wine and culinary experiences are playing a bigger part in the selection of a travel destination by tourists (Stewart, Bramble & Ziraldo 2008). Culinary tourism can be a key feature of the competitive destination experience, now “the fundamental product in tourism” (Ritchie & Couch 2000 p. 1) Canada has plentiful natural attributes to develop top-level culinary tourism (Deneault 2002), the experience of learning about, enjoying or buying identifiable regional culinary products (Smith & Xiao 2008). With two major wine regions, distinct and unique agricultural products from a variety of climatic zones, still productive ocean and lake fisheries, renowned restaurants, and culinary traditions from First Nation peoples to the world, Canada has much to offer in cuisine (Deneault 2002). Identifying Canada’s comparative advantage in culinary tourism is relatively easy (Hashimoto & Telfer), but convincing the world that Canada is a worthy culinary destination is difficult without a definitive Canadian cuisine. (D. Monsour, private conversation, January 22, 2009). With culinary contributions from nearly every region and culture on the planet, Canadian cuisine is not emblematic of Canada as many of the world’s cuisines are of their nations (Deneault 2002). Yet with many significant attributes and tourism resources, how does Canada turn a comparative advantage in food, wine and culinary experiences into a competitive advantage as a culinary tourism destination? Through examining Canadian cuisine in a competitive cluster approach of regional attributes, the Canadian comparative advantage in regional cuisine can be clarified and its strengths developed through local vigorous competition to become an internationally competitive destination. “Competition, therefore, centres on the destination” (Ritchie & Couch 2000 p. 1) and Canada can be the competitive destination “where foods of the world come together” (Hashimoto & Telfer 2006, p. 35).

Cluster Theory

A competitive cluster approach to culinary tourism describes economic entities that have overlapping relationships in a region or location, and that can be shown to benefit as a group from competition and proximity (Porter 2000). According to Porter (2000), “proximity amplifies rivalry… while elevating the benefits of locally available factors or suppliers” (p. 25). The examples of this theory in culinary tourism are clear; wine producing regions become more popular when more wineries open and hospitality infrastructure grows (Porter 2000); restaurants open in new locations and thrive when other aligned businesses follow (Bateman 2008). This model puts emphasis on “customer demand and service rather than a reliance on the economies of production and distribution” (Jackson & Murphy 2006 p. 1019). This is building the tourism destination through alignment of needs, cooperation and rivalry among local entities resulting in fewer leakages of capital out of the region (Miller, Henthorne & George 2007). Porter (2000) states that clusters of competing entities do three things as rivals:

  • 1. they raise their collective productivity
  • 2. they increase innovation
  • 3. they stimulate new business opportunities

Porter uses the diagram (figure 1) of an interlocking diamond of economic improvement via four categories of conditions that take into account the local needs (demand conditions), goods and services (related and supporting industries), resources and infrastructure (factor conditions), and branding (context for firm strategies and rivalries) to achieve a competitive advantage.

Demand Conditions

Demand conditions are the first step towards a competitive advantage in culinary tourism. They are the regional specialties and products and the modern and efficient delivery systems that facilitate and create local consumer demand. Many parts of Canada produce unique food products (Denault, 2002; Hashimoto & Telfer 2006) that reflect the climatic zones or cultural histories of Canada. Lobsters from Nova Scotia, Quebec maple syrup and raw milk cheeses, arctic musk ox from Nunavut, heritage grains from Saskatchewan, Kushi oysters from Deep Bay on Vancouver Island are some of the thousands of unique regional products produced in Canada. These foods are both associated with the natural attributes of the place they come from as well as the cultural traditions and histories of the people who produce them. The relationship between the region and the product assists in the image and marketing of a destination (Hashimoto & Telfer 2006) and becomes “one of the most important cultural expressions of a destination (du Rand & Heath 2006, p. 211).”

In Canada the food delivery system has a growing local supply system in addition to the international industrial food supply chain. Farm gate sales, farmers’ markets and retailing of artisan food products are popular (Bateman 2008); in larger centres, markets can continue all year, bringing winter tolerant vegetables and local meats and cheeses to customers (Smith & Xiao 2008). Restaurants using local products are growing in popularity and are a major venue for the promotion of local agriculture. Top chefs seek the competitive advantage of seasonal, unique, and rare products to showcase on their menus (Denault, 2002; Hashimoto & Telfer 2006.). They want top quality and uniqueness that the large international food chain systems cannot often deliver. This “cultivates a ‘buy local’ culture and reinvents the way agriculture produce is delivered to the consumer” (Stewart, Bramble & Ziraldo 2006 p. 303).

The growing demand for local food and wine tourism is reflected in the TAMS profile (Canadian Tourism Commission 2008) which identified that over two years more than 4.3 million Canadians participated in food, wine or beer events while away from home. The study identified the main group as Canadian born, 55 to 64 years of age who held above average incomes, travelled extensively and had post secondary education. This is the important consumer segment for success in food and wine tourism; “the quality of local demand matters far more than does its size” (Porter 2000 p.). This sustained local business is also capable of anticipating demands for other services that complement the business cluster (Porter 2000); in the culinary tourism model this could include more accommodation, festivals, agri-tourism, or further retail sales.

Related and Supporting Industries

In realizing demand conditions, related and supporting industries are already present in the cluster to some extent. To build a competitive advantage, related and supporting industries must be vigorous, innovative and economically sustainable (Porter 2000). These become a strong force of cooperation and “create a forceful and competitive product for the region” (Jackson & Murphy 2006 p. 123) stimulating innovation and profitability. According to Porter (2000) clusters allow innovation because vigorous entities can respond quicker to consumer demand and ”perceive new buyer needs” (23). Whether it is a rural area, with farmers markets and culinary festivals or an urban area with a competitive and lively restaurant scene, related and supporting industries use the synergies of competition and cooperation to “provide greater impact for a destination” (du Rand & Heath 2006 p. 229) which support demand conditions.

A significant feature of related and supporting industries is the ability to retain local capital and reduce the leakages of incoming money to other jurisdictions. This is as much a problem for rural Canadian economies (Guay 2008) as it is for ones in developing nations where much of the tourism revenue leaves the country to pay for imported food and consumer goods and profits go to international corporations (Miller, Henthorne & George 2007). "Pillars of community are established by supporting your neighbours" (M. Kaiser-Smit cited in Guay 2008 p. 1). The result of local marketing of the Niagara Culinary Trail in Ontario encourages both consumption and production of local foods to invigorate and sustain the local economy and has the added benefit of reducing the carbon impacts associated with long-distance food transportation (Guay 2008).

Factor Conditions

As with demand conditions, factor (input) conditions have to do with the cluster’s resource assets. These are the built elements that contribute to the success of a region or community including human resources, business infrastructure, educational opportunities and the abilities to increase productivity, quality and specialization (Porter 2000). A region strong in factor conditions could create “an innovative industry that can adapt to negative shock and capitalize effectively on new opportunities that emerge” (Miller, Henthorne & George 2007 p. 274). By adding value to its production and creating “a tourism experience around raw materials” (du Rand & Heath 2006 p. 207), a cluster makes a competitive advantage through specialization. When quality and specialization are cultivated among the people of a region, the cluster experiences a growth in its social capital, gaining involved and engaged participants in a single purpose. Locations that have fostered social capital have a head start with factor conditions. The Cowichan Valley on Vancouver Island has factor conditions from farmers to cideries to chefs to tourism marketers. “There’s a growing cachet about the word ‘Cowichan’…because a large enthusiastic group of dedicated people are working incredible hard to establish slow food as a way of life” (S. Philip cited in Bateman 2008 p. 37).

Firm Strategy and Rivalry

The final category of Porter’s diamond may be the most challenging for competitive advantage. The context for firm strategy and rivalry is one based on “vigorous competition among locally based rivals” (Porter 2000 p. 20). For Porter (2000) this is a different sort of economy where advantage is based not on low wages, but efficient production, on going “from imitation to innovation” (p. 20), and investment in social capital. Miller et al (2007) agree that this is the category where specialization is important, where there are not too any areas of interest for the cluster. Identifying strengths that “enable competition to be based on cooperation, differentiation, and innovation” (Jackson & Murphy 2006 p. 1033) are key to gaining competitive advantage. For culinary tourism this is building the definitive brand where the location and the cluster signify the product (Hashimoto & Telfer 2006), such as Okanagan wine or Quebec raw milk cheese or Digby scallops. The desirability of a tourist destination may be based on marketing both the truth and the narrative of the destination and if successful, “the representation may become stronger than the reality” (Hashimoto & Telfer 2006, p. 31). According to Porter, “in a cluster, the whole is greater than the sum of the parts” (Porter 2000 p. 32).

Some Recommendations

A competitive cluster approach to competitive advantage in culinary tourism shows that competitiveness derives from local needs, local goods and services, local infrastructure and the importance of branding the product. After reviewing the literature, some recommendations for competitive advantage can be made in under Porter’s four categories:

  • Under demand conditions, product development can be encouraged at the local level. This may include products that are already in local use and are close to ready for wider development.
  • Within related and supporting industries, encouragement of local supply and production through incentives, grants, advertising and legislation to increase product availability and to assist in retaining profits within the cluster region to spur further growth.
  • Factor (input) conditions within the cluster would be motivated to create more social capital through education and community involvement. Stronger local economies could lower costs and regional DMOs could provide added marketing infrastructure to clusters.
  • Context for firm strategy and rivalry could see the solidifying of regional product branding along the lines of France’s Appellation d’origine contrôlée (AOC) for food and wine.

Conclusions

Creating a competitive advantage for Canada as a culinary tourism destination requires recognizing the strengths and weaknesses of cuisine in Canada (Deneault 2002). The unique climatic zones, regional specialties and cultural histories that have formed the cuisine of Canada, combine to produce and deliver culinary experiences through markets, festivals and restaurants; a capable and skilled hospitality and tourism work force delivers these memorable experiences. Regional clusters of culinary tourism exist throughout Canada and it is through the branding of these regions that Canada can overcome the unknown factor of “Canadian cuisine,” first by competing to become innovative and vibrant regionally, establishing the Canadian brand, and second, to compete directly against the iconic world cuisines.

The process of developing culinary tourism in Canada can be better understood through the examination of clusters of related entities. Clusters have a comparative advantage through “the inherent combination of attributes of a destination or attractions that are unique, and [that] create a sense of place and brand image for travellers and the tourism industry” (B. White personal conversation January 23, 2009) Cluster theory “could be used to facilitate this transition”(Jackson & Murphy 2006 p. 1032) from comparative to competitive destination. To identify the demand conditions of local needs, to cultivate related and supporting industries, to encourage the social capital of factor conditions and finally to enable strong brand identification through firm strategy and rivalry builds a competitive sustainable destination “not just economically, and not just ecologically, but socially, culturally and politically as well” (Ritchie & Couch 2000 p. 5). This approach to a culinary tourism destination will put cuisine on par with the other natural tourism attributes and attractions of Canada and meet the growing international demand for culinary tourism (Hashimoto & Telfer 2006).

References

Bateman, J. (2008, Summer). Cowichan Valley: Where the foodies roam. Westworld. 34(2). Toronto. Canada Wide Media.

Canadian Tourism Comission (2008) Canadian Activity Profile: wine, beer and food tastings while on trips. Executive summary. Retrieved on January 25, 2008.

Canadian Tourism Comission. (2003) How-to guide: Develop a Culinary Tourism Product. Retreived on January 26, 2009.

Deneault, M. (2002). Acquiring a taste for cuisine tourism: a product development strategy. Ottawa, Canadian Tourism Commission. Retrieved on January 26, 2009.

Du Rand, G., & Heath, E. (2006, June). Towards a Framework for Food Tourism as an Element of Destination Marketing. Current Issues in Tourism, 9(3), 206-234.

Guay, A. (2008). Long Live the Locavores. Niagara This Week. August 22nd, 2008. Retrieved on January 26, 2008. http://www.niagaraculinarytrail.com/index.php?mact=News,cntnt01,detail,0&cntnt01articleid=9&cntnt01returnid=137

Government of Ontario, Ministry of Tourism. (2008) Mapping Ontario’s Tourism Future: a starting point for discussion. Retrieved January 21, 2008.

Hashimoto, A., and Telfer, D. (2006, February). Selling Canadian Culinary Tourism: Branding the Global and the Regional Product. Tourism Geographies. 8(1), 31-55. doi:10.1080/14616680500392465

Jackson, J & Murphy, P. (2006). Clusters in regional tourism: An Australian case. Annals of Tourism Research, 33(4), 1018-1035. 1035doi:10.1016/j.annals.2006.04.005

Mason, R., & O'Mahony, B. (2007, July). On the Trail of Food and Wine: The tourist search for meaningful experience. Annals of Leisure Research. 10(3/4), 498-517.

Miller, M., Henthorne, T.L. & George, B.P., (2008). The competitiveness of the Cuban Industry in the Twenty-First Century: a strategic re-evaluation. Journal of Travel Research, 46, 267-278. DOI: 10.1177/0047287507308319

Porter, M. (2000). Location, Competition, and Economic Development: Local Clusters in a Global Economy. Economic Development Quarterly. 14/1. 15-34. Retrieved on January 25, 2009

Ritchie, J. R. B., Couch, G. I., (2000). The competitive destination: A sustainability perspective. Tourism Management. 21 1-7 doi:10.1016/S0261-5177(99)00093-X

Smith, S., & Xiao, H. (2008, February). Culinary Tourism Supply Chains: A Preliminary Examination. Journal of Travel Research. 46(3), 289-299.

No comments:

Post a Comment