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The first part of the book is dedicated to the complex issue of development and the role tourism can play in its achievement. In the first chapter, Fayos-Solà, Fuentes, and Muñoz Mazón set the stage by examining various development theories and approaches from the last 50 years. It becomes evident that the intensely pro-development policies following the end of World War II and the emergence of the United Nations group of organizations were replaced, beginning in the 1970s, with a surge of institutional theory and practice advocating the market as the almost sole purveyor of prosperity, or, supposedly, development. In this context, it was argued, all tourism needs is a free-market environment to create employment, income, modernization, and economic growth, and these all were equated with development.

A broad agreement exists that tourism is an effective instrument for social and economic development. However, there is no specific theoretical or practical framework of tourism for development to be found. Even the key issues have remained unformulated: concept of development, tourism's contributions to development, and tourism policy and governance for development. This chapter first summarizes the development paradigms held in the last decades (modernization, neoliberalism, dependency, and sustainability) vis-à-vis tourism, and then goes on to consider proposals emanating from New Institutional Economics and the Theory of Social Capital. It concludes with the results of a 2011 enquiry, involving some 60 international experts.

Destination management is in urgent need of analytical and policy tools, and even more so in the context of tourism for development programs. Understanding both structural elements and dynamic processes are essential. This chapter describes a model of destinations which considers three types of structural components: factors/resources, attractors (of tourism demand), and support systems. It analyzes as well the optimizing behavior of destination stakeholders, both endogenous and exogenous, as a way to understand destination dynamics. The model can be applied in the strategic positioning of destinations as well as in achieving competitiveness and sustainability—ultimately contributing to development—through tourism policy plans and governance processes. The model was born in the context of a European Eureka–ComTur research project, and has been tested in a variety of destinations.

This chapter proposes a methodology to determine tourism policies that are effective in addressing the challenges of tourism as an instrument for development. A three-step process is proposed, including the preparation of a Green Paper that defines the different actors in the tourism system, as well as their functions vis-à-vis policy options; a White Paper that determines strategic positioning and a roadmap for action based on the diagnosis and analysis of the destination; and a Tourism Policy Plan that delineates the different governance actions. The model is examined from the perspective of the use of tourism as an instrument for development, with a consideration of the destination’s human, social capital, and participative governance systems.

Previously disregarded factors are now included in development theory and practice. A narrow understanding of capital has had profound effects on development as well as on tourism policy and governance. In this framework, purpose-designed tourism for development has been the exception. Contemporary ideas of other forms of capital playing a key role in a broader concept of development are examined, specifically the central function of human and social-institutional capital. Human capital is seen in the light of capabilities, attributes, and knowledge possessed by individuals. Social-institutional capital may empower individuals as it refers to the value of trust and cooperation deriving from formal and informal sets of behavioral rules. This chapter clarifies the foundations of tourism as an instrument for development if tourism policy and governance are designed and implemented within an adequate framework.

The concept of development has gone through several paradigm shifts in the last six decades, from the post World War II idea of “modernization” to sustainability and gradualist institutions-concerned strategies, although the neoliberal laissez-faire approaches still hold considerable influence, even in international organizations. Development is a complex concept. Definitions have changed throughout time and it is crucial to understand the concept vis-à-vis tourism. It is no longer possible to defend that tourism investments will automatically create development. Understanding the nuances of the concept has become essential if one is to sustain that tourism does play a role in development.

Knowledge Management in Tourism: Policy and Governance Applications is dedicated to some of tourism's most pressing issues: development, sustainability, climate change, innovation, science and technology, and governance.