Destination Development and
Institutionalization Strategies
In the OIC Member Countries
50
chain analysis also plays a key role in understanding the competitiveness of a destination, helping to
identify activities that help destinations realize their full economic potential. 185
Figure 18: Tourism Value Chain
Source: State of the Global Islamic Economy Report 2014/15; DinarStandard Analysis
Defining the Value Chain
The diagram above illustrates the value chain in the tourism industry.
Key segments comprise the following:
 Suppliers in the tourismvalue chain provide the underlying infrastructure for the tourism industry
to function. Tourism suppliers include food and beverage suppliers, transport infrastructure and
equipment development companies, lodging infrastructure and equipment development
companies and attraction infrastructure and equipment development companies.
 Service providers leverage equipment and infrastructure suppliers to develop services that cater
to tourists including transportation services, lodging services, attractions, and restaurants etc.
 Channels are the medium by which service providers connect with customers. Channels include
travel agencies, tour operators and travel websites.
 Customers in the tourism value chain are tourists.
Improving the Value Chain
Blockages and inefficiencies along the tourism value chain can have a negative impact on all other linked
activities. According to the ITC and UNWTO, supplies in the tourism industry that are sourced fromoutside
185 Mete, B., & Acuner, E. (2014). A VALUE CHAIN ANALYSIS OF TURKISH TOURISM SECTOR. International Journal of Business and
Management Studies , 3(2), 499-506. Retrieved fro
SUPPLIERS SERVICE PROVIDERS CHANNELS CUSTOMERS
TRANSPORT
• Air
• Sea
• Rail
• Road
LOADGING
• Hotels/ related
• Resorts
DESTINATION
• Attractions
• Convention centers
• Restaurants
• Other (education/
health institution)
Travel Agencies
Tour Operators
Travel Websites
TOURISTS
FOOD& BEVERAGE/
CATERING
TRANSPORT
INFRASTRUCTURE/
EQUIPMENT
LODGING
INFRASTRUCTURE/
EQUIPMENT
ATTRACTION
INFRASTRUCTURE /
EQUIPMENT LOGISTICS TRANSPORTATION / FREIGHT
ECO-SYSTEM MARKETING, TECHNOLOGY,FINANCIAL
SERVICES REGULATION, TRAINING