The Evolution of Mass Tourism Destinations: New Approaches Beyond 57 3 58 4 Deterministic Models in Benidorm (Spain) 59 5 60 6 A,1 B,* B,2 61 Q4 Josep A

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Tourism Management xxx (2012) 1e12

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Tourism Management

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1 56 2 The evolution of mass tourism destinations: New approaches beyond 57 3 58 4 deterministic models in Benidorm (Spain) 59 5 60 6 a,1 b,* b,2 61 Q4 Josep A. Ivars i Baidal , Isabel Rodríguez Sánchez , José Fernando Vera Rebollo 7 62 a 8 Instituto Valenciano de Tecnologías Turísticas (INVAT.TUR) Conselleria de Turismo Paseo Tolls, 2 Benidorm, Spain 63 b Instituto Universitario de Investigaciones Turísticas, Universidad de Alicante, Edificio de Institutos, Campus de San Vicente del Raspeig, Ap. 99 E-03080, Spain 9 64 10 65 11 highlights 66 12 67 13 68 < We analyse external and internal dynamics in the evolution of a tourist destination. 14 69 < We make a cross-analysis between global factors and local responses. 15 < The dynamism of mature tourist destinations has an undeniable complexity. 70 16 < Destinations can influence their own future evolution. 71 17 < Long term competitiveness depends on the local adaptation capacity to changes. 72 18 73 19 74 20 article info abstract 75 21 76 22 Article history: Although deterministic models of the evolution of mass tourism coastal resorts predict an almost 77 23 Received 26 November 2011 inevitable decline over time, theoretical frameworks of the evolution and restructuring policies of 78 24 Accepted 29 April 2012 mature destinations should be revised to reflect the complex and dynamic way in which these desti- 79 25 nations evolve and interact with the tourism market and global socio-economic environment. The 80 Keywords: 26 present study examines Benidorm because its urban and tourism model and large-scale tourism supply 81 Life cycle and demand make it one of the most unique destinations on the Mediterranean coast. The investigation 27 Evolution of mature tourist destinations 82 reveals the need to adopt theories and models that are not purely deterministic. The dialectic interplay 28 Restructuring 83 between external factors and the internal factors inherent in this destination simultaneously reveals 29 Internal and external factors 84 Benidorm a complex and diverse stage of maturity and the ability of destinations to create their own future. 30 Ó 2012 Elsevier Ltd. All rights reserved. 85 31 86 32 87 33 88 34 89 35 1. Introduction tourism scene. Therefore, this study presented a new approach to 90 36 the evolutionary analysis of coastal resorts that complements 91 37 This paper assesses theories of the life cycle and restructuring of traditional theoretical models. 92 38 tourist destinations in light of the recent evolution of Benidorm, Benidorm is a typical example of the resorts that emerged along 93 39 a paradigmatic coastal destination on the Mediterranean (see the Mediterranean coast in the 1960s during the mass tourism 94 40 Fig. 1), and analyses different phases of its evolution, which reflect boom that catered primarily to foreign tourists through large 95 41 the global factors and local processes that affect tourism. The international tour operators that controlled the market. However, 96 42 investigation revealed that the deterministic nature of Butler’s its unique urban development model is crucial for understanding 97 43 Tourism Area Life Cycle model (Cooper, 2006) and Miossec’s model the dynamics of this holiday resort. Originally a small fishing 98 44 (1977a, 1977b) did not apply to the evolution of Benidorm, which village, Benidorm is the result of a local planning model based on 99 45 has adapted to different market circumstances and possesses a public initiative that was initially approved in 1956 and partially 100 46 features that ensure its competitiveness in the contemporary modified in 1963. Within this framework, the authorities planned 101 47 the categories of land use and buildings and defined growth areas, 102 48 in particular an area of urban expansion adjacent to the Levante 103 49 beach which led to Benidorm’s distinctive image of high-density 104 * Corresponding author. Tel.: þ34 965903726; fax: þ34 965909552. 50 urban development and high-rise buildings. 105 E-mail addresses: [email protected] (J.A. Ivars i Baidal), [email protected] Benidorm is one of the most important tourist destinations on 51 (I.R. Sánchez), [email protected] (J.F. Vera Rebollo). 106 fi 52 1 Tel.: þ34 966870152. the Mediterranean coast. The 2010 census identi ed 74,000 regis- 107 53 2 Tel.: þ34 965903769; fax: þ34 965909552. tered inhabitants, 37% of whom are foreigners. In regulated 108 54 109 e Ó 55 0261-5177/$ see front matter 2012 Elsevier Ltd. All rights reserved. 110 doi:10.1016/j.tourman.2012.04.009

Please cite this article in press as: Ivars i Baidal, J. A., et al., The evolution of mass tourism destinations: New approaches beyond deterministic models in Benidorm (Spain), Tourism Management (2012), doi:10.1016/j.tourman.2012.04.009 JTMA2371_proof ■ 22 May 2012 ■ 2/12

2 J.A. Ivars i Baidal et al. / Tourism Management xxx (2012) 1e12

111 176 112 177 113 178 114 179 115 180 116 181 117 182 118 183 119 184 120 185 121 186 122 187 123 188 124 189 125 190 126 191 127 192 128 193 129 194 130 195 131 196 132 197 133 198 134 Fig. 1. Location of Benidorm on the Mediterranean coast. 199 135 200 136 accommodations (hotels, apartments and campsites), Benidorm Analysing the recent evolution of Benidorm is particularly 201 137 provides more than 68,000 beds and there are 18,000 second relevant in light of both structural changes in the tourism market 202 138 homes. Hotels alone annually register approximately 10 million and the current economic crisis. In contrast to tourism models 203 139 overnight stays, with foreign (primarily British) tourists accounting based on urban sprawl, which have resulted in dispersed settle- 204 140 for half of these visits. Throughout its development as a tourist ments in coastal areas (European Environment Agency, 2006), 205 141 destination, this holiday resort has had a high average length of stay Benidorm offers an urban density model that is more environ- 206 142 for tourists and high hotel occupancy rates throughout the year due mentally efficient in regard to energy, water and land use, is less 207 143 to limited seasonality. However, new trends in the tourism market dependent on private transport and is more attractive to tourists 208 144 have raised doubts about the future of this destination. year-round (Iribas, 2000). As a result, it is widely acknowledged as 209 145 The first section of this paper provides a detailed analysis of the a future model for coastal destinations that seek to be holiday hubs 210 146 recent evolution of this destination, the specific local impact of (MVRDV, 2000; Thomson Holidays, 2010). 211 147 external global factors and the internal factors related to the To determine the extent to which contemporary mature desti- 212 148 dynamics of territorial and tourism features that are unique to this nations can evolve into future holiday hubs, it is critical to examine 213 149 destination. The goal of the analysis was to determine the extent to how destinations like Benidorm have addressed issues such as the 214 150 which the recent evolution of this destination was influenced by negative image of a mass tourism destination; dependence on the 215 151 the interaction of external forces or global factors with local British and Spanish market segments; re-intermediation processes 216 152 measures designed to renovate the destination and maintain its in tourism distribution and changes in tour operator processes such 217 153 competitiveness. The second section focuses on the opinions of as online travel agents, internet distribution systems, and dynamic 218 154 local stakeholders who have influenced the evolution of the desti- packaging; changes in consumer preferences and behaviour 219 155 nation and whose actions will largely determine Benidorm’s future. patterns due to generational changes, the increasing diversity of 220 156 The analysis of mature destinations is of interest from academic, travel motivations and reductions in the average length of stay; and 221 157 political and tourism management perspectives. Academic limited business profit margins. These new realities suggest a new 222 158 approaches focus on the relationship of mature destinations with approach to consolidated destinations that does not support the 223 159 sustainable development and market diversification (Bramwell, prevailing theoretical claim of inevitable decline. 224 160 2004), the development of long-tail strategies (Lew, 2008), and 225 161 the role of mature destinations within a global scenario affected by 2. Theoretical framework 226 162 structural changes in the tourism market (Duhamel & Violier, 2009; 227 163 Shaw & Coles, 2007). From the political and institutional point of Although there were notable precedents (Christaller, 1963; 228 164 view, the Spanish Ministry of Tourism is currently developing the Gilbert, 1939), the analysis of the evolution of tourist destinations 229 165 Coastal Tourism Plan for the 21st century in collaboration with emerged as a research interest with the rise of international 230 166 regional governments, which will revise tourism strategies to tourism as a mass phenomenon. During the 1970s, several critical 231 167 produce higher levels of sustainability, innovation and differentia- studies (Miossec, 1977a, 1977b; Plog, 1973; Thurot, 1973; Turner & 232 168 tion. The goal is to change the prevailing economic and tourism Ash, 1975a, 1975b) identified mass tourism as the final stage in 233 169 model for the Mediterranean coast and the Canary and Balearic the evolution of destinations, a stage that would ultimately lead 234 170 Islands from the current model, which is based on the residential destinations to lose their original attractiveness. 235 171 construction that has been brought to a standstill due to the Butler’s (1980) Tourism Area Life Cycle (TALC), which is the most 236 172 economic crisis. The plan provides a national initiative to increase cited work in tourism geography (Gibson, 2008), emerged during 237 173 the value of mature tourist destinations and is consistent with the transition from quantitative geography to critical geography 238 174 public measures to promote the renovation of mature destinations (Coles, 2006) and became a reference model that explained the 239 175 that began in the 1990s. evolution of tourist destinations. As the model was applied to 240

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241 diverse destinations and different approaches (Butler, 2006a, a tourism crisis by producing an unbalanced economic and social 306 242 2006b), the initial theory became more comprehensive, although development for tourist destinations. However, Agarwal (2005) 307 243 many theoretical contributions and case studies also identified the noted that the definition’s criteria for decline were the conse- 308 244 Q1 model’s limitations (Vera & Baños, 2010)(Fig. 2). quences of it and that the key was to identify the causes rather than 309 245 The TALC model acquired special relevance for both the the symptoms of decline. 310 246 management of coastal destinations and research on these desti- The concept of the TALC exhibits parallels to theories of 311 247 nations due to the need to identify the stage of maturity and productive restructuring. Both approaches agree on the need to 312 248 address the issue of potential future decline (Agarwal, 2002, 2005). engage in corrective measures to avoid the effects of decline. 313 249 Based on this theory, Knowles and Curtis (1999) argued that the Within the framework of productive restructuring theory, Agarwal 314 250 second-generation Spanish sun and sand destinations that (2002, 2005) viewed the decline of destinations as due to the 315 251 appeared in the 1960s, which are currently mature destinations, interaction between internal forces that reduced the competitive- 316 252 faced an irreversible decline because of the destinations’ loss of ness of a destination and external factors that intensified compe- 317 253 attractiveness, which was caused by changes in consumer moti- tition. The globalelocal interaction process proposed by this author 318 254 vations, the emergence of rival destinations and a fall in domestic highlighted the importance of local conditions and actions to 319 255 demand due to the increasing popularity of travel to foreign modify the effects of regional or global developments, in accor- 320 256 countries. These authors categorically claimed that public and dance with the ‘glocal’ nature of tourism development processes 321 257 private proposals would only postpone the irreversible decline. (Milne & Ateljevic, 2001). Deterministic approaches were often set 322 258 However, their deterministic claim was based on the assumptions aside in favour of local planning to maintain the competitiveness of 323 259 of a qualitative prospective study, and although these assumptions different coastal destinations through diverse restructuring strat- 324 260 were based on real dynamics, they could not be verified. In contrast, egies. For example, Bramwell (2004) summarised the strategies 325 261 Aguiló, Alegre, and Sard (2005) has argued that the increase in employed by various destinations in the Mediterranean Basin; 326 262 numbers of tourist arrivals and satisfaction levels supported the Anton (2011) classified coastal destinations in Spain as reactive, 327 263 survival of the sun and sand model and the efficiency of the creative or transitive depending on the restructuring policies 328 264 renovation initiatives carried out in the Balearic Islands. Similarly, adopted; Priestley and Mundet (1998) analysed the post-stagnation 329 265 Claver, Molina, and Pereira (2007) found that Benidorm hotels phase of various destinations on the coast of Catalonia, Spain, 330 266 maintained a competitive position based on the number of over- region which Garay and Cànoves (2011) recently analysed by 331 267 night stays, per room occupancy rates, application of quality applying the TALC and regulation theory; and Oreja, Parra, and 332 268 management systems and profitability levels. Yanes (2008) integrated teleological perspectives with the TALC 333 269 Because the interaction between resorts and the market is to analyse Tenerife in the Canary Islands in Spain. 334 270 complex, the symptoms of decline must be diagnosed and The recent evolution of destinations has also been explained in 335 271 responded to proactively. As a result, the European Commission terms of a transition from Fordism to post-Fordism. Urry (1990) 336 272 promoted a study to identify declining tourist destinations, which argued that cultural changes associated with post-modernism 337 273 were defined as tradition tourism providers that exhibited negative were the primary basis for the loss of attractiveness experienced 338 274 trends, such as a decrease in the flow of tourists, deterioration in by British coastal destinations since the 1970s. Poon’s (1993) 339 275 the quality of the destination, difficulty in guaranteeing sustainable account has emphasised changes in demand and technological 340 276 tourism or the influence of exogenous factors (TNO Inro, 2002). This innovations, while Agarwal’s (2002) has emphasised flexible 341 277 definition is too generic and vague because these indicators do not production systems. However, not all authors accept accounts 342 278 always reflect a structural decline, and the definition does not based on a linear transition from Fordism to post-Fordism. Certain 343 279 identify the threshold at which a decline has occurred. However, authors (Agarwal & Shaw, 2007; Debbage & Ioannides, 1998; Torres, 344 280 because this view did not limit decline to sector aspects but 2002) have argued that post-Fordist and neo-Fordist situations 345 281 addressed the sustainability of development, this approach sup- coexist in specific tourist destinations; for instance, the behaviour 346 282 ported the claim that an environmental problems could also lead to of international tourist operators exhibits new forms of mass 347 283 production that coexist with customised travel and the diversifi- 348 284 cation of tourist motivations. 349 285 In contrast, new patterns of international mobility (Sheller & 350 286 Urry, 2004; Williams & Hall, 2002) affect established destinations 351 287 with foreign residents which currently absorb temporary and 352 288 permanent labour flows, as well as flows of short stay tourists due 353 289 to the increase in low-cost airlines, which make air travel more 354 290 accessible (Vera & Ivars, 2009). These flow increases have influ- 355 291 enced real estate demand and favoured real estate tourism, which 356 292 in turn has increased accommodation capacity and the municipal 357 293 demographic range. González (2008) confirmed that the most 358 294 important tourist destinations on the Spanish Mediterranean 359 295 coastline were attracting inhabitants, investments, services and 360 296 infrastructure. 361 297 Based on the above considerations, an analysis of established 362 298 destinations must consider the effect of tourist activity on territo- 363 299 rial structure and urban functions. Knafou (2006) stressed that the 364 300 urban and demographic growth accompanying the evolution of 365 301 tourist destinations tended to increase their complexity. This is an 366 302 essential feature of ‘tourist conurbations’ such as the Côte d’Azur, 367 303 the Belgian coast, the Costa Brava and Florida, where urban 368 304 development has acquired a new dimension that can no longer be 369 305 Fig. 2. The tourism area life cycle model (Butler, 1980). viewed exclusively in terms of tourism. On a local scale, these 370

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371 dynamics have been examined for destinations such as Rimini hotel groups, representatives of tourism industry associations with 436 372 (Conti & Perelli, 2005). a multisector remit (apartments, camping sites, leisure industry, 437 373 An analytical perspective that considers the importance of the etc.) and political leaders and council officials who were respon- 438 374 economic functions of destinations and the extent of their sible for tourism and related areas such as urban and environ- 439 375 centrality within a territory has been insufficiently developed in mental planning. Individuals were interviewed from January 440 376 traditional tourism research, which has primarily focused on the through June of 2010. The interviews were analysed using the 441 377 evolution of tourism demand and ignored the territorial dynamics Atlas.ti software program, which is based on Strauss and Corbin’s 442 378 that arise from the evolution of tourist destinations. As a result, the (1990) grounded theory technique. 443 379 most recent studies investigating Butler’s life cycle theory have 444 380 emphasised the need to analyse the spatial dimensions of the 4. The complex evolution of Benidorm: different phases of 445 381 theory in greater depth (Hall & Page, 2009). maturity 446 382 In summary, the dynamic and complex nature of tourist desti- 447 383 nations precludes the application of pre-established theoretical The analysis of factors related to the global tourism environ- 448 384 models in favour of diverse theoretical approaches. The dialectical ment, such as the evolution of the tourism market, economic cycles, 449 385 interplay between external and internal factors underlies the sociopolitical contexts, and the public and private actions that 450 386 uneven evolution of tourist destinations, which are not necessarily formed the local responses describe four distinct stages for changes 451 387 fated to decline. Tourist destinations are able to adapt to circum- in the number of overnight stays at this destination: 452 388 stances and can influence their future evolution. Walton (2000) 453 389 highlighted the resilience of British coastal destinations despite Phase 1. International recession and supply-demand imbal- 454 390 problems during the latter part of the 20th century. These destina- ances (1988e1993) 455 391 tions did not suffer terminal decline but experienced a role shift Phase 2. A new expansive phase (1994e2001) 456 392 (Shaw & Coles, 2007). Despite the ‘fascination’ with decline, most Phase 3. The stabilisation stage (2002e2007) 457 393 coastal tourism destinations still attract visitors as some have or Phase 4. Effects of the international economic crisis 458 394 more than 200 years (Duhamel & Violier, 2009). Therefore, the key to (2007e2009) (Fig. 3) 459 395 survival lies in the ability to adapt to ever-changing circumstances. 460 396 461 397 3. Methods 4.1. Phase 1. International recession and supply-demand 462 398 imbalances (1988e1993) 463 399 According to the theoretical framework adopted in this paper, 464 400 statistical data for the 1988 to 2010 period were analysed to identify Phase 1 occurred after a period of economic expansion in Spain 465 401 the different phases of maturity of Benidorm based on variables and the Valencia region, and the number of overnight stays reached 466 402 relating to the destination itself and to the tourism environment, in a maximum between 1986 and 1987. In 1988, problems in adapting 467 403 particular tourism policies implemented during the period. To the tourism supply to changes in international tourism demand, 468 404 generate the evolution curve for the destination, overnight hotel such as changes in travel preferences, staggering of holidays, more 469 405 stays were selected as the key variable because they are repre- complex and diverse travel motivations, and increasing competi- 470 406 sentative for destinations like Benidorm and the official statistics tion from more exotic tourist areas created a climate of uncertainty. 471 407 obtained from the monthly census-based survey of hotel estab- Within a year, a tourism crisis both at the national and at the local 472 408 lishments in Benidorm were reliable Tourism Survey of the Valencian level was generally acknowledged. There was a significant reduc- 473 409 Tourism Agency. The tourist overnight hotel stay variable was tion in overnight stays and a slight decrease in arrivals of visitors 474 410 chosen because it was based on a monthly survey of the hotels in due to factors such as the appreciation of the peseta and the 475 411 Benidorm and was available for a longer time period (1988e2010). Spanish inflation differential. The recession led to questioning of 476 412 This variable measured the influx of tourists occupying the almost the traditional sun and sand model and the idea that successful 477 413 40,000 available beds in regulated accommodation. Moreover, use tourism meant a quantitative growth in demand, leading to 478 414 of the hotel survey made it possible to cross-reference other vari- proposals for diversification of tourism offerings and markets. 479 415 ables such as the mean occupation, seasonality and changes in In 1990, other international factors, such as the Gulf War in the 480 416 markets of origin during the study period. Middle East, ended the sustained growth and expansion of inter- 481 417 Although the total number of tourists visiting the destination national travel. In Spain, the crisis was widespread and the 1990 482 418 was the most theoretically relevant variable, it could not be season was considered the worst of the decade. The trend observed 483 419 measured empirically because estimating overnight stays in in the previous year was magnified and the number of visitors e in 484 420 apartments and at camping sites presented methodological prob- particular, British visitors e continued to decrease. This was 485 421 lems and this information was only available for a shorter time partially attributed to the rise in the exchange rate of the peseta 486 422 period. In addition, although supply statistics e primarily the with respect to other currencies, inflation and economic recession 487 423 change in the number of beds e were analysed, the behaviour of in important tourist-generating countries, such as Great Britain. 488 424 these variables was more static and did not explain the cyclical The situation improved in 1991, and exogenous factors, such as 489 425 demand component. As a result, these indicators were regarded as the reduced popularity of other destinations such as Greece and 490 426 ancillary to the demand variables. Turkey, were associated with an increase in the number of visitors 491 427 The differentiation of phases within the maturity period was and overnight hotel stays. In 1992 and 1993, the tourism industry in 492 428 complemented by qualitative research on internal factors in local Spain improved; fewer Spaniards travelled abroad and favourable 493 429 tourism policy and management reflected in the opinions of exchange rate following the devaluation of the peseta made Spain 494 430 different stakeholders. This approach regards the destination as an more competitive as a destination by increasing the spending 495 431 open system with private and public interdependent agents, in capacity of foreign tourists. 496 432 which the actions of one party affect other parties (Pulido, 2010). This trend was also observed in Benidorm, where there was 497 433 The 23 stakeholders selected were representative of the local a transition from a positive to a negative dynamic, particularly for 498 434 tourism industry; interviews were held with individuals who the primary international (British, Belgian and Dutch) markets; this 499 435 managed and owned the most important independent hotels or contrasted with the behaviour of the national market, which was 500

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501 566 502 567 503 568 504 569 505 570 506 571 507 572 508 573 509 574 510 575 511 576 512 577 513 578 514 579 515 580 516 581 517 582 518 583 519 584 520 585 521 586 522 Fig. 3. Recent evolution phases and factors impacting on the tourism and territorial dynamics of Benidorm (1988e2010). 587 523 588 524 589 525 more uniform. During this phase, the hotel capacity in Benidorm Both nationally and regionally, this phase was characterised by 590 526 was relatively stable. At the beginning of this phase, 31,370 beds growing revenues, more overnight stays and increased tourist 591 527 were available (42.8% of the total hotel beds in the Valencian region spending. Locally, the recovery was reflected in the number of 592 528 in 1988). In 1994, at the end of this phase, there were 32,238 beds e overnight stays of foreign visitors, particularly British tourists, 593 529 an increase of only 2.8%. It should be noted that at the beginning of which exhibited an increase of 58% by 2001, although the total 594 530 this phase, most of the primarily 2- and 3-star hotels in Benidorm number of overnight stays increased by only 15% due to the 595 531 had been built between 1960 and 1970 during the tourist boom, decrease in the number of overnight stays of Spanish visitors. This 596 532 and hotel bookings were primarily made through tour operators, period was characterised by occupancy rates of approximately 95% 597 533 which created fewer fluctuations in demand compared to desti- in 2000 and 2001. 598 534 nations that depended on occasional tourists. The total number of hotel beds remained stable. However, there 599 535 At this time, Benidorm had much more to offer in regard to was a progressive reduction in the number of lower rated estab- 600 536 recreational and leisure facilities than surrounding destinations. A lishments, and companies began to invest in upgrading the classi- 601 537 privately financed water park was just one of the attractions that fication of their hotels. This trend was favoured at the regional level 602 538 targeted visitors of all ages. During this stage, Benidorm also by a new regulation that introduced a classification system based 603 539 became the base for day trips to nearby villages, which were on fulfilment of specific technical requirements. The regulatory aim 604 540 requested by international tour operators and organised by local was to make the structure of the sector more transparent and 605 541 businessmen. Incorporating these elements added value to the sun decrease the number of small guesthouses either by closing them 606 542 and sand package holidays (Vera & Baños, 2010). During this stage, or reclassifying them into different categories. 607 543 public initiatives focused on urban planning and improving envi- Tourism policies during this period were characterised by new 608 544 ronmental quality to enhance competitiveness with rival sun and public works projects to create urban landmarks and improve 609 545 sand destinations, and a strategic marketing plan (1991) was public spaces that reinforced the image of a quality sun and sand 610 546 developed to introduce new ways to promote the town. destination. A major investment during this phase was the state- 611 547 In l’Aigüera, part of the riverbed that cut through the town was financed renovation of the seafront promenade along the Levante 612 548 used to create an extensive public park with open spaces, land- beach, which was completed in 1996. 613 549 scaping areas and venues for open air shows. The project, which However, a radical change in policy also occurred during the 614 550 was designed by the architect Ricardo Bofill, integrated the space 1990s, which involved the creation of an urban leisure and recre- 615 551 into the town, which added value to the immediate surroundings. ation area that was separate from the town itself. Thus, the regional 616 552 The Levante beach seafront promenade e a project designed by government financed a major theme park that opened in 2000. The 617 553 another renowned architect, Oriol Bohigas e was also constructed park was described as a renovation of the tourist destination 618 554 during this period and made the beach, which was the location intended to attract new demand segments to Benidorm and the 619 555 most frequented by visitors, much more attractive and accessible. surrounding area. The new park was located outside the town of 620 556 Because a dearth of well-trained staff was generally considered Benidorm, associated with beaches and urban spaces, and gener- 621 557 to have contributed to the Spanish tourism crisis, regional author- ated a separate urban growth process. Apart from the question of 622 558 ities created a Tourism Training Centre in Benidorm to improve the property speculation, the decision to build outside pre-existing 623 559 qualifications of tourism professionals. This centre was the first in structures was influenced by the idea that theme parks made 624 560 a network of regional centres. tourist destinations more competitive, and the construction of the 625 561 new park was viewed as the driving force for a new phase in the 626 562 4.2. Phase 2. A new expansive phase (1994e2001) evolution of Benidorm. Therefore, the Special Master Plan for Uses 627 563 and Infrastructures ‘Theme Park Area’ Benidorm-Finestrat 628 564 With the improvement in the economy in Western Europe and approved in 1998 by the Regional Department of Public Works, 629 565 the devaluation of the peseta, a period of recovery began in 1994. Urban Planning and Transport not only created a macrostructure 630

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631 that focused on themed leisure but also simultaneously introduced in 2005. Unfortunately, to date the results have not been as 696 632 new activities, such as golf, and favoured the construction of hotel successful as predicted. 697 633 and residential accommodation. Although after a decade, the The hotel sector contributed to the diversification of the desti- 698 634 outcome was disappointing, the park contributed to the develop- nation during this period with the opening of establishments in up- 699 635 ment of a new leisure area and residential homes outside of the and-coming areas that catered to new demand segments in addi- 700 636 town (Vera & Baños, 2010). tion to the sun and sand product. The construction of 4- and 5-star 701 637 However, regional tourism policies that supported the hotels with facilities for hosting events, conferences and conven- 702 638 modernisation of tourism establishments and authorities’ efforts to tions targeted sectors with greater purchasing power, as well as 703 639 improve beach facilities and services had a more positive effect on families and the health and beauty market. The first two 5-star 704 640 tourism in Benidorm during this period. In turn, the local business establishments in the municipality were erected during this 705 641 sector not only contributed to the development of new recreational stage. In 2006, the golf, spa and business resorts were initially 706 642 products but also constructed new hotels and progressively mod- managed by the Starwood Hotel and Resorts international group, 707 643 ernised existing establishments to meet visitors’ growing demand which ran it under its Westin luxury brand until late in 2007 when 708 644 for quality. the group stopped managing the establishment due to disagree- 709 645 ments with the owners. The resort has experienced serious finan- 710 646 4.3. Phase 3.The stabilisation stage (2002e2007) cial difficulties since then and filed for bankruptcy in 2010. Despite 711 647 financial problems, the two hotels remain open. The second 712 648 Phase 3 was marked by the convergence of global trends that establishment was constructed in 2008 and marked the reappear- 713 649 significantly affected the tourism market: the growth of low-cost ance of an international Spanish hotel chain with a product tar- 714 650 airlines, which gradually replaced charter traffic; the increase in geting a luxury clientele; from the outset, this establishment 715 651 online sales; changes in tour operators strategies; and the growth distanced its product brand from the Benidorm image. 716 652 of rival destinations that provided an alternative to traditional sun During this phase, considerable renovation and modernisation 717 653 and sand destinations. From the perspective of the global economy, of existing establishments occurred, which coincided with the 718 654 this stage of stabilisation was initially influenced by the loss of positive, stable economic situation for tourism. However, few 719 655 confidence in air travel created by the 9/11 attacks in the United obsolete establishments were demolished or completely remod- 720 656 States in 2001 as well as negative factors in 2003, such as the Iraq elled; in most cases, existing buildings were rehabilitated on 721 657 conflict, the weak economies of European tourist-generating a small scale. 722 658 countries, and the increasingly strong euro. 723 659 The new market dynamic produced changes in international 4.4. Phase 4. The effects of the international economic crisis 724 660 tourism, primarily in the British demand, which was channelled (2007e2009) 725 661 through low-cost airlines and affected coastal areas such as Beni- 726 662 dorm, the Costa Brava in Catalonia and the Costa del Sol in Anda- During this phase, the world economy experienced a severe 727 663 lucía (Ivars & Menor, 2008, pp. 89e104; Martínez, Prats, & Barceló, recession of historic proportions, which was characterised by 728 664 2004). The length of stay and the number of travellers on package uncertainty, high market volatility and loss of consumer confi- 729 665 tours staying at hotels decreased, although the increase in airport dence. Despite the fact that tourism withstood the international 730 666 arrivals had a positive impact on hotel occupancy in absolute terms. economic crisis better than other sectors, data on hotel occupancy 731 667 However, the increase in non-hotel accommodations and increase and profitability reflected the economic downturn. For Benidorm, 732 668 in the number of hotel beds decreased hotel occupancy rates. this situation was aggravated by the state of the British economy 733 669 With regard to hotel supply, the last significant investments in and the appreciation of the euro relative to the pound, which only 734 670 creating new hotels occurred between 2001 and 2007. The started to recover its value relative to the euro in 2010. Data from 735 671 favourable economic situation in Spain and consolidation of the the revenues per room available (RevPAR) indicated a widespread 736 672 tourism industry encouraged the business sector to open new drop in Spanish hotel revenues due to a price war in which rates 737 673 establishments, leading to an 11.4% increase in the number of hotel were significantly reduced to boost sales. However, this indicator 738 674 beds available. This period was also characterised by a real estate recovered in 2010 and the prospects for 2011 were favourable 739 675 market boom, which led to the creation of a large number of non- (Exceltur, 2011). 740 676 hotel beds due to the growth of residential tourism. During this period, overnight stays in Benidorm decreased and 741 677 In regard to tourism policies and business strategies during this reached levels similar to those observed in 1996, when there was an 742 678 stage, it should be noted that efforts to achieve diversification with 11.9% decline between 2006 and 2009 due to a dramatic 31% 743 679 the construction of the theme park did not result in the desired decrease in the overnight stays of British travellers. As in the earlier 744 680 economic growth or the expected increase in the number of visi- period, the national market offset the international downturn 745 681 tors. One reason for this failure was that the infrastructure, which because more Spanish travellers took shorter trips within Spain, 746 682 was intended to accommodate 3 million visitors, actually received and there was a rise in the number of overnight stays in 2010. 747 683 only 2 million visitors in 2001 and 1.1 million in 2008. Paradoxi- Furthermore, in 2009, a progressive reduction in the annual occu- 748 684 cally, despite this failure, the park did have a positive effect on the pancy rate led to the lowest occupancy rate for all of the years 749 685 renovation of first-generation recreational infrastructures, which studied. This level was lower than the 75.2% rate for 1990 that 750 686 increased the attractiveness of the destination. However, the occurred at the height of the earlier recession. Similarly, more 751 687 impact on family tourism and the average length of stay was less hotels closed during the winter. Although this is common practice 752 688 than expected. The themed leisure concept was extended through in many coastal destinations, it was less frequent for Benidorm, 753 689 two additional installations e a nature park and a water park. where tourist activity is less seasonally based. 754 690 Despite this recreational supply, Benidorm failed to create a true With regard to the supply of accommodation, prices were 755 691 leisure-based product based on a combination of different leisure progressively reduced during this phase due to the highly 756 692 and accommodation options, integrated and marketed as a single competitive market, with serious repercussions for business prof- 757 693 package. With the construction of two new golf courses and higher- itability, which previously had been characterised by an efficient 758 694 category hotels near the theme park, this destination renovation quality-price ratio and adjusted profit margins. In 2009, Benidorm 759 695 was linked to the introduction of new leisure products, such as golf hotel revenues were negative, with a variation rate from January to 760

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761 December of 9.4% in the accumulated annual RevPAR compared to because the future of the destination depends on their activities. 826 762 the same period in the previous year (Exceltur, 2011). In 2009, the Stakeholders were recruited from the business sector and public 827 763 accumulated RevPAR from January to December for 3-, 4-, and 5- management and discussed the following issues: 828 764 star holiday hotels in Benidorm was V37.90 compared to the 829 765 Spanish average of V45. However, the Spanish average remained 1. Evolution phase of the tourist destination 830 766 V44.80, and the RevPar for Benidorm hotels rose to V40.50 in 2010. 831 767 In regard to tourism policies and business strategies, the reno- With the phases of Butler’s life cycle model as a reference, 832 768 vation of the seafront promenade along the Poniente beach was interviewees were initially asked to identify the current phase of 833 769 completed in 2009. The renovation was expected to add value to Benidorm’s evolution because their judgment would indicate 834 770 one of Benidorm’s emblematic beaches and revitalise tourism by a positive or negative view of the current situation and condition 835 771 attracting new investments and business models and enhancing the perception of the destination’s future evolution. Based on the 836 772 improvements to establishments. This urban development initia- responses, a majority of the business sector regarded Benidorm as 837 773 tive, which was financed by the regional government, was part of having entered a phase of stagnation. However, a wide variety of 838 774 a strategy to enhance seafront areas and was intended to serve as opinions were expressed. The more pessimistic respondents 839 775 a modern architectural landmark and symbol of avant-gardism. believed that the destination was currently in decline while others 840 776 Public investment also focused on the creation of new strategic believed that Benidorm was experiencing a process of rejuvenation 841 777 infrastructures designed to promote new forms of tourism linked to due to the new attractions (themed leisure and golf) integrated into 842 778 culture and business, such as the Cultural Centre currently under the destination and infrastructure improvements (the seafront 843 779 construction. Another project envisaged the construction of promenade along Poniente beach), which were regarded as proof of 844 780 a sports area in a public park for domestic professional sports dynamism as well as rejuvenation capacity. It should also be noted 845 781 tourism or for winter training sessions of European professional that some opinions reflected a political basis. 846 782 athletes. Additional efforts to diversify products and demand 847 783 segments included hosting sports events outside the tourist season 2. The tourism industry model and aspects linked to new market 848 784 and organising musical events to attract young visitors to the trends 849 785 destination during the summer. In regard to infrastructure related 850 786 to tourism, the regional government selected Benidorm as the According to the entrepreneurs interviewed, the predominance of 851 787 headquarters for the Valencian Institute of Tourism Technologies. local entrepreneurs and business owners in Benidorm has positively 852 788 This centre, which specialises in R&D&I in tourism opened in 2009, influenced this destination because private ownership motivates 853 789 being dependent on the regional government with the collabora- investments that promote future survival to a greater extent compared 854 790 tion of the Town Council of Benidorm and the leading tourism to renting or franchise-based management: “Since this is a very 855 791 associations in the Valencian Region. competitive market with small profit margins, a company that operates 856 792 Although there were no signs of urban decay e which was not but does not own a hotel may see it as a viable business, but believe that 857 793 the case for other destinations that developed during the early days it does not generate sufficient profits or cash-flow to invest in reno- 858 794 of the Spanish sun and sand tourism model e it would be worth- vation.However,anowner-operator of a hotel will be willing to sacrifice 859 795 while to remodel Benidorm’s urban fabric to make urban devel- profits and cash-flow to invest in the quality of the hotel’s facilities” 860 796 opment a competitive feature of this tourist destination once more. (hotel group manager). Furthermore, the entrepreneurs who invested 861 797 There have been few truly innovative proposals, apart from recent in their own business were more likely to maximise spending effi- 862 798 initiatives for the pedestrianisation and renovation of the tradi- ciency and cost reduction seeking the best possible value for money: “It 863 799 tional centre to increase the attractiveness of the surroundings and is very difficult for a small business to obtain the funds necessary to 864 800 atmosphere e one of this leisure town’s greatest assets. renovate. It’s easier for a chain. However, a family business is willing to 865 801 However, because high debt levels reduced the ability of the make greater efforts to renovate and takes more interest in the details than 866 802 town council to invest in renovation, these activities would be a hotel chain. Moreover, it’spossibletosavemoneyontherenovation 867 803 dependent on external financing. It should be noted that external because the owner looks for the best product at the best price” (hotel group 868 804 sources e either the regional or central government e financed manager). In the entrepreneurs’ opinion, this aspect ethe high quality 869 805 most of the recent renovation of urban public spaces. delivered in relation to the price paid for the servicee was a positive 870 806 Regarding tourism management in the municipality, this phase factor that distinguished this destination because a significant effort 871 807 saw the incorporation of an innovative management structure that was made to maintain high quality service despite the serious prob- 872 808 aimed to foster closer collaboration between the local authorities lems of decreasing marginal profits and progressive price reductions: 873 809 and tourism entrepreneurs in promoting the destination and “Benidorm is one of the resorts with the best price-quality ratio, businesses 874 810 revitalising the city’s tourist image. The creation of the Benidorm work hard and we prefer to lower prices to obtain more clients. after all, 875 811 Tourism Foundation was similar to many towns’ adoption of new people attract people” (hotel owner). 876 812 management formulae creating mixed entities in which both Another characteristic feature of demand in the Benidorm tourism 877 813 municipal authorities and the business sector managed and model was the coexistence of Spanish and British tourists within the 878 814 promoted destinations. One of the initial tasks undertaken by the holiday segment. According to the interviewees, the domestic market 879 815 Foundation was to produce a Tourism Marketing Plan in 2011 to guaranteed a good summer occupancy rate when the British market 880 816 adapt the town’s image and marketing strategy to new market was affected by economic recession. Although an effort was being 881 817 trends. made to search for new demand sectors, such as gay tourism or singles, 882 818 as well as sectors associated with new travel incentives, such as events, 883 819 5. Benidorm’s recent evolution and future prospects: local sports, and business, these were still minor segments that had little 884 820 stakeholders’ opinions impact on the global demand for this destination. 885 821 In regard to the hotel supply, new demand trends and tour 886 822 From the perspective of public and business policy, it is impor- operators’ increased marketing of destinations such as Turkey or 887 823 tant to obtain the opinions of different local interest groups or Egypt, had gradually forced businessmen to diversify their sales 888 824 stakeholders, which are crucial for understanding the processes that channels. Direct sales were a medium-term option that currently 889 825 have contributed to the evolution of this tourist destination complemented tour operations and might become more important 890

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891 in the future: “tour operators are in decline but that’s not a problem for existence of the Tourism Centres, which provided training adapted 956 892 Benidorm, the problem is changes in the market: higher margins in to the needs of the sector and various professional profiles. Some 957 893 other destinations, new technology that directly affects traditional tour interviewees also noted that changes made to professionalise 958 894 operators as well as the influence of low cost airlines. Now with the marketing and direct efforts towards the end consumer rather than 959 895 crisis, some people are going back to tour operators, some clients know tour operators increased the importance of training. In contrast, 960 896 that a low cost airline can leave them stranded, and also tour operators there were negative assessments of the degree to which managers 961 897 are lowering their prices” (hotel manager). More recently, tour oper- and owners took advantage of the available training, and differ- 962 898 ators themselves were affected by the difficult economic situation, ences in training tended to be associated with generational differ- 963 899 which led them to reduce prices further. As a result, the business ences between traditional businessmen with a great deal of 964 900 sector has become increasingly critical of the traditional model. accumulated experience and new professionals who were highly 965 901 trained and conversant with new ideas. 966 902 3. Investment in business renovation and innovation With regard to business cooperation, interview responses 967 903 reflected the individualism characterising the business sector and 968 904 The entrepreneurs that were interviewed agreed that the hotels in low levels of cooperation between individual businessmen, 969 905 Benidorm had undergone continuous refurbishment and maintenance although entrepreneurs felt that they were represented by a ‘strong 970 906 and that business renovation policy had progressively adapted to the and powerful’ association. 971 907 new quality requirements demanded by the market. Investment in 972 908 renovation has consequently maintained an upward trend that was 5. The future evolution of the destination and proposals for 973 909 considered necessary to guarantee business survival: “alotofinvest- maintaining competitiveness 974 910 ment is being made; there is a big increase in the number of hotels that are 975 911 being renovated. Businessmen are aware that you have to renovate or die” Most of the interviewees e and businessmen, in particular e 976 912 (hotel industry association). Because local entrepreneurs are owner- were optimistic about the future of Benidorm. In their view, the 977 913 operators, they might tend to invest in renovation and these efforts destination’s long history and experience with tourism guaranteed 978 914 would reflect their understanding that renovation was a key factor in future competitiveness. The professionalism characterising the 979 915 remaining competitive and surviving in the market. sector, which created high levels of customer satisfaction, together 980 916 However, there was less investment in innovation as a strategy, with the creation of a tourism management body combining public 981 917 although this aspect deserves greater emphasis. Few of the inter- and private participation, exerted a positive influence on their 982 918 viewees thought that these investments were increasing and the vision of the future. Only a few interviewees believed that the 983 919 ones made focused on new technologies for commercialisation that favourable evolution of this destination depended on increased 984 920 would generate more direct marketing in the future. business cooperation or innovation. 985 921 Finally, business sector proposals to guarantee the future 986 922 4. Levels of business training and cooperation competitiveness of Benidorm focused on the need to increase 987 923 public investment to renew the attractiveness of an urban scene 988 924 Analysis of the knowledge and training level of interviewees that exhibited obsolescence in certain areas. In addition, many 989 925 revealed divergent views regarding this issue. Most interviewees interviewees believed that greater efforts to improve marketing 990 926 had a positive view of the business training available due to the strategies and enhance the Benidorm image were needed due to 991 927 992 928 993 929 994 930 995 931 996 932 997 933 998 934 999 935 1000 936 1001 937 1002 938 1003 939 1004 940 1005 941 1006 942 1007 943 1008 944 1009 945 1010 946 1011 947 1012 948 1013 949 1014 950 1015 951 1016 952 1017 953 1018 954 1019 955 Fig. 4. Tourism and territorial dynamics in Benidorm. 1020

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1021 negative connotations associated with mass tourism and the senior medium- and long-distance destinations, the growth of indepen- 1086 1022 citizen segment. There were also proposals to optimise existing dent tourism and the increased use of non-hotel accommodation 1087 1023 tourism resources by diversifying the types of tourists visiting were only a few of the factors that influenced tourism. Since 2008, 1088 1024 Benidorm and introducing new products such as sports or events these factors operated within the context of an international 1089 1025 tourism. Other relevant proposals suggested a higher degree of economic recession, which has affected tourist arrivals and busi- 1090 1026 coordination between the various stakeholders as well as more ness profitability, although there were signs of recovery in 2010. For 1091 1027 internal cooperation within the business sector. Public manage- any tourist destination, including Benidorm, these circumstances 1092 1028 ment interviewees agreed with some business proposals such as reflect a new dialectical destination-environment dynamic, in 1093 1029 the need for diversification, although political considerations pre- which a global context presents both threats and opportunities for 1094 1030 vented them from discussing negative features identified by the the continued evolution of destinations. 1095 1031 business sector. From the point of view of demand, the statistical data for the 1096 1032 Based on these proposals, interviewees believed that Beni- period examined exhibited positive trends in regard to the 1097 1033 dorm’s future renovation needed to be both tangible and intangible outstanding occupancy rate and the number of overnight stays, 1098 1034 e focussing on image, coordination, cooperation, and adaptation to which continued to be significant (see quadrant 1 of Fig. 5). 1099 1035 new trends e with an emphasis on repositioning the destination However, some aspects, such as business profitability, require 1100 1036 through strategies that diversified products and attracted new further investigation. Businesses with increasingly small profit 1101 1037 demand segments. margins become more vulnerable to economic crises and the 1102 1038 episodic threats that affect destinations, which might eventually 1103 1039 6. Evaluation of tourism and territorial dynamics in limit their ability to renovate their establishments. The present 1104 1040 Benidorm: a summary study indicated that the hotel model e unlike the isolated resort or 1105 1041 enclave models e was a key factor in the tourist town renovation 1106 1042 In summary, the present study of the phases of the evolution of process because it was part of a concentrated urban structure that 1107 1043 this destination identified several key aspects of the life cycle of was based on establishments owned and operated by local entre- 1108 1044 destinations and the interactions between global factors and local preneurs who were committed to the destination and had the 1109 1045 models. During the period under analysis, remarkable global know-how to offer a high quality for the price. Despite on-going 1110 1046 structural transformations occurred that markedly changed the difficulties, the hotel business in Benidorm proved to be more 1111 1047 operation of conventional tourist destinations. Online booking, the resistant to the crisis than other tourist destinations that relied on 1112 1048 expansion of low-cost airlines, the redistribution of tourist flows to urban sprawl processes or a residential model based on non-hotel 1113 1049 1114 1050 1115 1051 1116 1052 1117 1053 1118 1054 1119 1055 1120 1056 1121 1057 1122 1058 1123 1059 1124 1060 1125 1061 1126 1062 1127 1063 1128 1064 1129 1065 1130 1066 1131 1067 1132 1068 1133 1069 1134 1070 1135 1071 1136 1072 1137 1073 1138 1074 1139 1075 1140 1076 1141 1077 1142 1078 1143 1079 1144 1080 1145 1081 1146 1082 1147 1083 1148 1084 1149 1085 Fig. 5. Assessment of the evolution of tourism in Benidorm according to key supply and demand variables. 1150

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1151 accommodation. Moreover, hotels exhibited greater economic improve the competitive position of Benidorm in the market, 1216 1152 dynamism and were less affected by seasonality than tourist renovation of both the hotels and the destination as a whole should 1217 1153 homes. continue. Renovations such as improving different components of 1218 1154 Another key element influencing demand was the effect of the urban scene, adding new infrastructure, and protecting certain 1219 1155 dependence on specific markets. In the case of Benidorm, the areas should be undertaken but will be more difficult in the future 1220 1156 recession phases in the period under analysis primarily corre- because these measures require public investment and there have 1221 1157 sponded to crises in the British economy because of the dependence currently been severe budget cuts. 1222 1158 on the British market and the unfavourable exchange rate of the The mid-1990s policy of using public funds to finance new 1223 1159 pound with respect to the peseta or euro. However, when the British tourist-urban development schemes separated from the town itself 1224 1160 market experienced a recession, domestic demand contributed to (see Fig. 4) raised the possibility of promoting two distinct brands 1225 1161 the overall number of overnight stays and offset the effects of for the Benidorm destination: one for the general market and the 1226 1162 dramatic drops in British tourism (see quadrant 2 of Fig. 5). The other for the Premium label segment with higher purchasing power. 1227 1163 dependence on the British market became evident when the volume Although certain business groups have defended the policy of 1228 1164 of tourists coming from other foreign markets was analysed (see destination rebranding e which sought to revitalise the image of 1229 1165 quadrant 3 of Fig. 5). Benelux (Belgium, Holland and Luxembourg) Benidorm as a mass tourism destination e this policy might have 1230 1166 was Benidorm’s second most important market, followed by coun- undermined Benidorm’s success as a resort for middle and lower 1231 1167 tries such as France, Italy and Germany, which accounted for middle-class visitors. Furthermore, few hotels targeting the higher 1232 1168 a progressively smaller percentage of overnight stays during the income segment have enjoyed success and the high-end product 1233 1169 period studied. It should be noted that although these markets offerings do not seem to have created a new product or a distinct 1234 1170 gradually became less important, no new countries e apart from brand. 1235 1171 Portugal e compensated for the loss. Portugal was first included in Finally, sustainability is an important criterion for evaluating 1236 1172 the official statistics in 1999 with a higher number of overnight stays this stage of the evolution of this tourist destination as well as 1237 1173 than the last countries mentioned, although the number has a strategy to ensure competitiveness that might improve its 1238 1174 remained stable with no significant growth over the years. economic, social and environmental dynamic. The overcrowding of 1239 1175 The present study revealed the effect of new marketing methods coastal destinations due to tourism has always had a devastating 1240 1176 due to new forms of international travel that emerged during the effect on the local environment. However, new proposals have 1241 1177 last decade, in particular, the emergence of low cost air travel, which noted that lower environmental costs are associated with concen- 1242 1178 increase connections with the most important tourist generating trated high-density urban models, and publication of a study 1243 1179 areas and opened new markets. Furthermore, the presence of commissioned by Thomson Holidays, the most important tour 1244 1180 foreign residents living in the tourist destination on a regular basis operator working with Benidorm, has motivated several proposals 1245 1181 was another factor contributing to the demographic and economic that are currently under discussion in the media and academic and 1246 1182 dynamics as well as the image of the tourist destination. technical forums. The study identified the ‘Benidorm effect’ as 1247 1183 Following restructuring theories, the high repeat visit rates found a paradigm for tourism sustainability based on carbon emissions 1248 1184 in the present study revealed that Benidorm had a number of data (distance from emitting areas and airports) and the density of 1249 1185 characteristics, such as the relationship between the urban config- the urban model, which resulted in lower costs for infrastructure, 1250 1186 uration model and the tourism dynamic, that enabled the destina- reduced land use and lower water consumption. For instance, water 1251 1187 tion to continue to satisfy demand. The contribution of well-known consumption in Benidorm is approximately 200 L per person per 1252 1188 comparative advantages (climate comfort, beach quality, and day, which is considerably less than the water consumption of 1253 1189 accommodation critical mass), the excellent value for money offered nearby residential tourism models, which is approximately 400 or 1254 1190 by Benidorm and the know-how of local firms ensured the destina- 500 L per person per day. Moreover, a substantial part of the water 1255 1191 tion’s competitiveness and survival. These destination features were consumed in Benidorm is treated and re-used for urban and agri- 1256 1192 reinforced by local initiatives from private businesses and public cultural purposes. Furthermore, the policy of protecting ecologi- 1257 1193 agencies. Rather than modifying global processes, these initiatives cally valuable areas has led to an area on the outskirts of the town 1258 1194 confronted challenges by adapting to the changing situation. Simi- being declared a natural park. The environment and landscape of 1259 1195 larly, restructuring of the destination extended beyond the limits of this area, which includes a coastal mountain range, a few small 1260 1196 the municipality. Benidorm’s role as a major tourist destination has islands and surrounding coastal waters occupying a total surface 1261 1197 made it the most important urban centre within a tourism district area of 5654.97 ha, are in stark contrast with a region that has 1262 1198 that provides services meeting the highest standards where characteristically shown extensive anthropisation. Furthermore, 1263 1199 companies and public bodies interact in the tourist industry. because the wealth of fish and plant species on the sea floor make it 1264 1200 Benidorm, which first emerged as a major sun and sand desti- one of the most valuable underwater areas in the Western Medi- 1265 1201 nation when mass tourism spread to the shores of the Mediterra- terranean, it has been classified as a Place of Community Interest 1266 1202 nean, has a long tradition of tourism. One of the critical aspects in with Areas of Special Protection for Birds and forms part of the 1267 1203 its evolution was the renovation of hotels and of the destination as Natura 2000 Network. An approach focused on environmental 1268 1204 a whole in the 1990s to adapt the traditional tourism supply in conservation provides the opportunity to create a product associ- 1269 1205 Spanish coastal destinations to the new trends in European ated with nature, broadens the range of recreational possibilities, 1270 1206 demand. The hotels in Benidorm renovated to revitalise the desti- and favours an image that is not exclusively identified with the 1271 1207 nation and have continued to do so to maintain competitiveness. leisure town and its beaches. However, this approach would 1272 1208 During this period, hotels in Benidorm were gradually up-graded demand a change in initiatives and strategies developed by public 1273 1209 and higher-category establishments appeared on the market, and private tourism professionals, who continue to prioritise 1274 1210 while the percentage of lower-category hotels decreased (see conventional products and traditional markets. 1275 1211 quadrant 4 of Fig. 5). The renovation of the hotel supply due to the 1276 1212 transformation of existing establishments and the construction of 7. Conclusions 1277 1213 new medium-high-category hotels improved the image and 1278 1214 dynamic of the destination. Although some earlier public invest- Although theories and models allow us to interpret the 1279 1215 ments, such as the construction of the theme park, did little to dynamics and phases that tourist destinations’ go through they 1280

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1281 cannot entirely explain the complexity of local tourism systems and land consumption, and urban mobility, which affected the 1346 1282 their interaction with the market. The difficulty increases when destination’s carrying capacity. 1347 1283 analysing the unique destination of Benidorm, which presents Differentiated products for different types of consumers in the 1348 1284 internal factors derived from the local context which play a key role same destination continued to be developed. 1349 1285 in understanding its urban and tourism model. Benidorm’s evolu- Rejuvenating operations, such as creation of the theme park, 1350 1286 tion illustrated non-deterministic features of evolutionary models had a limited impact, whereas the general renovation of hotels 1351 1287 that reinforced neo-Fordism and identified the importance of the had a significant positive impact. 1352 1288 local ability to engage in productive restructuring processes. 1353 1289 Nevertheless, the influence of the economic cycle on tourism The present study thus identified new ways to analyse the 1354 1290 demand must be distinguished from the effects of structural evolution of coastal tourism destinations that revealed Benidorm’s 1355 1291 changes in the tourism market because adapting to structural status as an exceptional tourist destination and explained its 1356 1292 changes is essential to maintain competitiveness despite temporary capacity to adapt to the evolution of tourism over the last fifty 1357 1293 fluctuations. years. 1358 1294 The evolution of this tourist destination has been marked by the 1359 1295 integral relationship between the urban model that is the basis of Acknowledgements 1360 1296 the accommodation system and the commercial and recreational 1361 1297 activities that developed within the urban structure, which arose The study was carried out within the framework of the research 1362 1298 during the boom period. However, this tourist model, which project Renovación de los destinos turísticos consolidados del litoral: 1363 1299 strongly influenced Benidorm’s tourist image must adopt innova- nuevos instrumentos para la planificación y gestión (RENOVESTUR) 1364 1300 tions that maintain Benidorm’s status as one of the great interna- [Renovation of consolidated coastal tourist destinations: new 1365 1301 tional leisure and tourism destinations. Interviewees believed that instruments for planning and management] of the Plan Nacional 1366 1302 to optimally employ marketing and public-private collaboration IþDþI 2008-2011 [National R&D&I Plan 2008e2011] of the Ministry 1367 1303 strategies, the most important challenge facing Benidorm was to of Science and Innovation. 1368 1304 revitalise its image and eliminate the negative social connotations 1369 1305 associated with its image as a travel destination. References 1370 1306 The profitability problems associated with infrastructures such 1371 1307 as the theme park and the hotel complexes outside Benidorm indi- Agarwal, S. (2002). Restructuring seaside tourism. The resort lifecycle. Annals of 1372 e 1308 cated that diversification attempts based on attracting new demand Tourism Research, 29,5 55. 1373 Agarwal, S. (2005). Global-local interactions in English coastal resorts. Tourism 1309 segments and creating new products were not successful and sug- Geographies, 6(4), 351e352. 1374 1310 gested that Benidorm should continue to target middle-class tour- Agarwal, S., & Shaw, G. (2007). Managing coastal tourism resorts. A global perspective. 1375 1311 ists because the perceived image of the town might make it difficult Clevedon: Channel View. 1376 Aguiló, E., Alegre, J., & Sard, M. (2005). The persistence of the sun and sand tourism 1312 to attract market segments with higher purchasing power. model. 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