Author: Andre Coleman

Globalisation Process is been a universal force. Factors contributing to globalization include market, production, culture, labour, technology, environment and regulation. Globalization provides huge potential profits to companies and nations.

Air travel is a large and growing industry. Economic growth, world trade, international investment and tourism is been facilitated by Airline Industry.

Various improvements regarding the air travel both commercial including government and private airlines have grown. Introduction of a few airlines from Boeing like Boeing 747 have increased the capacity of passengers to carry and have made it affordable for people to travel with luxury and comfort. Improvements and contribution from government has increased the development of resorts and infrastructure to attract lure tourists from the prosperous countries in Western Europe and North America.

With the growth of economies of developing countries their own citizens are becoming the new international tourists of the future. The rapid growth of world trade in international direct investment has also contributed to growth in business travel.

Worldwide, IATA, International Air Transport Association, forecasts international air travel to grow by an average 6.6% a year to the end of the decade and over 5% a year from 2000 to 2010. Airlines industry has been raised by up to 9% a year and is forecast to continue to grow rapidly, although the recession has hit the market in these years. The main air travel markets of the future will continue to be in and between Europe, North America and Asia in terms of total passenger. Example, Airbus and being the current upcoming airlines in commercial with new technological changes.

CURRENT TRENDS:

The current trends in India as well as other big players in the market based on the regulations are as follows:-

The growth of the airline industry is tree having “n” number of branches irrespective of private or public sector.

There has been 7% growth of air travel per year for both business and leisure purposes which grew strongly worldwide. The Scheduled airlines carried 1.5 billion passengers last year.

As far as the leisure market is concerned introduction of Boeing 747 made it convenient and affordable for people to travel for new and exotic destinations.

Net operating revenues in the quarter were under $2 billion, a 19% increase has resulted in strong anticipated payments volume, cross border volume and process transaction growth worldwide.

Down from 7.4 per cent in 2007 IATA exects a passenger Growth at 5% in 2008.

The government have merged the Air India and Indian Airlines into one Airline, which will be taken over other private airlines further as per the market demand.

The airline’s has low stock with the public, but now that there are a host of private airlines, customers are no longer willing to do so. The result is that the flag carrier has been losing both market share and public goodwill.

The investment in the private industry is increasing as these days the public sector is been dominated by the private sector.

CURRENT SITUATION:

Mergers: Mergers have had a great impact as far as the Indian airline industry is concerned. Mergers have either enhanced the economy growth or have reduced it. As far as Indian market is concerned mergers within the public sector have taken place where by the upcoming results are not satisfactory.

Expansion: The expansion has created new options for travellers, but it has not significantly affected Airlines position. For example, Air Canada estimated that it had a 90% share of Canadian travel agency in 2001 and sales and share of 75% seat capacity in the domestic market. After Air Canada gained control of CAI, it became the sole carrier on the majority of the top 200 domestic routes.

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Approval of major decision: Unlike the private airlines the approval of civil aviation for major decision concerning the officialdom and the other legal formalities and the well being of the industry and the things accompanying it.

Private sector investment: As in many other fields like banking or insurance where government allowed private sector entry, the state-owned entity has suffered on the same scale. Firstly the labour under bureaucratic procedures has result in long-delays in operational matters like purchase of aircraft, choice of routes, and sale of bilateral. Profits jump from 40% -50% as far as sales are concerned.

OPPORTUNITIES AND THREATS

The opportunities and threats basically imply the various opportunities that the airline industry is facing and going through whereas, the threats imply the rivalry, the new entrance and substitutes which in turn illustrates the way the progress of the industry or the business is going.

Airlines and the allocation and maintenance cost.

The airlines are one big industry with huge cost and investment where the allocation cost and the maintenance cost servers as the major factors for the industry. The cost as per as the price is concerned fluctuating market prices are a big threat to the airline industry as ression hits this area and the economy downfall would cut down on the financial part of the airlines to fit the things as per their budget. Like most other industries at this stage, airlines have not been immune to the global economic downfall. At the end of 2008 cargo traffic bottomed out, posting a dismal 25% may decline. Many airlines, particularly in the U.S., responded with aggressive capacity adjustments and an four quarter loss was served.

The number of aircraft taken out of service exceeded the number of new aircraft delivered in the end of the year 2008. The expansion of fleets, which forced the airlines to drastically reduce capacity by cutting both flight frequencies and uneconomic routes. Adding to the weak aircraft utilization, defined as the percentage of revenue ton-miles divided into available ton-miles, resulting in disastrous fall in yield by 20%. Though 2009 contained high economies for the airline industry. International cargo traffic improved by 12% over from 2009 till present.

Rising demand, shrinking capacity

It includes two type of demand namely, the requirement for the flights are high by the passengers but the airlines having their flights are very less as compared to the demand. Due to the economy downfall the visa versa is happing a lot these days. The current ample space available onboard for most aircraft is quite less, though the capacity has been cut out. The market of airlines industry is expected to grow at 13%, and continue to grow at a progressive rate till 2012 as can be predicted.

Regulatory pressure

There is also increased awareness by industry and additional scrutiny given by FDA and other national regulatory bodies. The Regulations as per the government as to the directions and ways are still pressure and intervention from the private airlines.

GOVERNMENT POLICIES AND ITS EFFECT:

The response of government to various issues as faced by the airlines industry and the way the it affected the economy:

Strikes: The strikes have been faced a lot when it comes to the airlines industry. As per the recent records to the policies given by the government of removal of workers from “jet airways” in India due to the recession crisis created a strike problem. As there was over staffing of employees jet decided to remove a few employees.

Being private airlines the workers could not make a change in the decision and hence ended up with a strike. Finally government took a stand and the process was stopped accordingly.

Conflicts: The conflict between airlines and the airlines with the government has many aspects relating to it. As Boeing 737-800 less than two minutes after take-off crashed on May 5, 2007 in the midst of a thunderstorm, but the report said poor weather or mechanical error and the government had nothing to do with it.

Kenya Airways is hence fighting against Ethiopia Airlines, Fly540 as well as South African Airlines for control of Africa’s airspace with safety. The government thus came forward with it and a better management of its weather forecast and other aspects were asked to take care off. Also, Sahara and Jet airways were supposedly to become rivals as Sahara wanted to take over Jet but without having any liability. Hence, the later was taken an off as the deal did not crack out.

Taxes: The government imposes several taxes as far as airlines industry is concerned. The tax starts from the upbringing of these airlines in various sectors. Thus, the government has imposed passenger’s tax for about landing in international airports. Thus an increase in the taxes has a negative impact on the economy though nothing can be done in this context, lest the price is increased considerably.

Turnover: The turnover for the airline industry has been quite a subjective matter as in the past two years the economic downfall has removed many employees from their respective jobs, though government airlines are still not under the amount of pressure as per the private ones but a cut down in a salary is the problem they face.

The growth in terms of the GDP has been progressing in the airline industry. They differ from country to country. As the highest GDP forecast is for Qatar Airways, Briatin and the least for Iceland. The industry is one with huge investment and huge outcome resulting in dominating a major portion of the economic industry.

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Mergers: The mergers that include the contract between two companies or industries under the same footnote to come and serve as one influencing the other or improving the current scenario. The government are many times in support of the mergers depending upon the situation and the outcome of the merger. Currently as far as India is concerned the merger or takeover of the government airlines by a private one is been talked about. As the situation of Air India these days is been going verse as not sufficient airplanes to carry and Boeing have certain destinations and areas as per the government rule as to where the flights can operate and others. Hence, the government will cooperate if the mergers are for the well being of the economy else it will be of no benefits for the other.

Findings:

The expansion of the airline industry is on hype. The growth of the airline industry is having a positive impact on the economy as they in turn are the inflow of cash for various other activities.

In general for the airline industry are to be meet when a decision concerning the same is been taken into consideration. As the civil flying standards are to be meet.

The current trends or recession has hit the airline industry to a less extent as compared to the others. And hence, it still serves its purpose and is least affected by the economic downfall, effect was seen only on the initial stages where a lot of flights were cut down and those relating to the less economic places had no longer flight schedules.

Difficulty is faced when a new player gets into the airline industry due to huge infrastructure and much because of the government rules and policies. Once the airline industry requires huge some of investment as well as a favourable balance to carry out the rest.

Private sector has been dominating the airlines and future can be seen as the private players are the market leaders and the government intervention has been quite reduced.

New techniques of constant improvement as far as the technical aspect of airlines is concerned and Boeing has made a few major changes in its airlines and technology has been improved for the better.

Constant updating for comfort and luxury are taking the upmost priority and the cost are been kept into the budget of the current public scenario.

Highly complicated set off recruitments and processes for talking the employees have been faced as far as the private airlines are concerned and government strictness over the official commercial airlines too have maximised.

Cut throat competition have been faced with in the several companies of airlines, where by options for talking over the other is been the best outcome to reduce the competition.

RECOMENDATION

The regulations pertaining to the airline industry are quite transparent and need less scope of improvement.

The target market should soon hit the lower income groups as well though efforts are been done for the same but not internationally.

As per the flights schedules, weather and other environmental factor the frequency of flights should be increased.

Negotiate long-term contracts with service providers to lock-in incremental fees and surcharges as such.

Evaluate the feasibility of ocean freight and for some portion of international deliveries which hold importance.

Establish and develop high Quality Agreements between appropriate stakeholders

Develop a “Plan B” which means to hit the target market and serves the industry well.

Further scope of improvement from the government of motivating the online booking strategy.

Government intervention should be slightly reduced and proper taxes should be charged and reviewed.

Strengthen and change the impact and regulation wherever necessary.

There exists no such event whose effects can be annulled in any way. No event takes place in an isolated way, defeating the very purpose of the event. The event has direct or indirect influence on every aspect of our lives and these include social, cultural, economic, environmental or political aspects (Allen et al., 2002). The payback from an event is enormous. A lot of constructive and encouraging associations are formed during the event. This is one of the most important reasons for the attractiveness and fame of an event (Bowdin et al., 2006). It is inevitable to measure the various impacts of an event, thus ensuring the proper monitoring, control and evaluation. Recent literatures have revealed an interesting fact, that the methods used to measure the event, and also the aspects measured differ significantly (Wood, E.H., 2005). Primarily, constructive social, cultural as well as economic impacts are normally recognized to be the probable advantage to event hosts (Veres et al., 2008). It is obvious for the hosts to have an inclination towards giving more importance to the economic impact, highly influenced by the tourism research. Economic advantages of an event are very vital to the host. Hence it is very imperative to have good frameworks for the measurement of this aspect. However, an accepted fact is that economic benefits are not the only advantage which comes with an event. Various elusive benefits have to also be measured to know how successful an event has been (Bowdin et al., 2006); Jones (2001) suggests that even if the former unconstructive effects are included having a limelight merely on straight expenses payback will still give an unfinished image. However, it is also to keep in mind that events can sometimes have negative and unplanned consequences and these penalties can lead to the event having both media and public attention for the wrong reasons (Allen et al., 2002). This has to be kept in mind during the planning and execution of the event. The power of media in deciding how an event is shown is formidable. The media can have a strong social and cultural impact upon society. Thus the media can influence how the event is professed, and also how it is shown to remote audiences (Getz, D., 2007). Events can basically have two kinds of outcomes i.e., positive and negative impact on the host communities and stakeholders (Allen et al., 2002). Event failures can be very devastating, bringing in negative publicity, humiliation and expensive lawsuits (Bowdin et al., 2006). Hence a lot of importance is placed on the financial impacts of an event. Factors leading to this are that both the employers and government need to meet budget goals, deadlines, and also be ready with explanations for the expenditures and an important factor is that financial impacts can be easily measured (Allen et al., 2002). Getz, D. (2002) suggests fours main costs and benefits that have to be evaluated: tangible benefits, tangible costs, intangible benefits and intangible costs. Also the methods of measurement or assessment used vary with the impacts to be measured or assessed. To calculate the overall impact of the event, social and cultural benefits cannot be left out. However, rather than following a statistical approach calculating them may require a narrative approach (Bowdin et al., 2006). The impact of an event is sometimes calculated well before the event actually takes place. This is because in many scenarios, after the event policy focus shifts elsewhere (Jones, 2001). Long-term effects of an event are very crucial. No matter the event being attended or not by the local community, the effects will be felt by them (Ritchie and Smith, 1991). The host society can be provided with a policy for putting forward their knowledge, hosting probable shareholders and endorsing new business opening by the event (Bowdin et al., 2006). These events can create possible employment opportunities during the construction phase (Allen et al., 2002). One of the most important impacts of a mega-event is on the tourism industry which would bring in lot of visitors to a particular place which has never been a tour destination before (Getz, D., 2006). This paper focuses on the various impacts of DLF IPL on the South African community and how it has contributed towards the Indian economy. It also discusses the various advantages and disadvantages that are involved with DLF IPL.

OVERVIEW OF DLF IPL

The DLF IPL is organised by the well established event management organisation IMG WORLD, LONDON. The Indian Premier League (IPL) has been produced by the joint venture between IMG and the Board of Control for Cricket in India (BCCI). For the IPL IMG explored the most favourable fair as well as mercantile model and a huge amount of $724m were raised by carrying out the notable authorization sale procedure (IMG World, 2009). In India, IPL is one of the most economically victorious sports idea ever initiated. The IPL is played according to the most up-to-date cricket layout which is Twenty20; this decreases match playing time to three hours, and thus makes it ideal for major time television as well as live in-stadia spectators. The television production and distribution rights, franchise rights, event and venue management and sponsorship sales for the IPL is handled by the IMG. The shifting of the venue to South Africa in the year 2009 was taken care by IMG.

IMPACT ON INDIAN ECONOMY DUE TO IPL SWITCH TO SOUTH AFRICA

All the businesses in India right from the road trader to the publicity organizations holding millions of dollars of shares are faced financial crisis because of the shift of IPL from India to South Africa due to security reasons as the IPL dates conflicted with the general election dates in India. The market analysts sensed that this sudden move from India to South Africa has grinded down from the Indian marker an ample amount, adding up to the already existing despair of global financial slump. Last year the IPL had contributed up to 1 billion rupees to the Indian economy, but due to the shift to South Africa which involved a lot of additional expenditure the BCCI did not incur a lot of income. The media houses in India did undergo a major income loss, which was estimated to be from 500 million to 700 million rupees. The estimated loss when it came to the gate receipts was 500 million rupees. The hospitality industry as well as tourism industry had a major impact. But there was an advantage tagged to this shift as well which was that IPL is now seen by people as a tournament with international value.

OVERALL IMPACT OF DLF IPL ON THE SOUTH AFRICAN COMMUNITY

According to Getz (2007) all events have a direct social and cultural impact on their participants, and sometime on their wider host communities. But, some events leave a legacy of greater awareness and participation in sporting and cultural activities (Bowdin et al., 2006). The Indian Premier League (IPL) has contributed a lot towards the education in South Africa (The Hindustan Times, 2009). According to Getz (2007) the financial profits are gained when the particular event can pull in extra income for the community benefits which is either in the form of endowments or funding. As stated by Fakir Hassen (2009) Lalit Modi, who is the man behind IPL proclaimed a scholarship of over eight million and this was one of the best programme towards community development in South Africa by a sports oriented organisation. This money given towards education benefits (Torkildsen, G., 2005) has also helped in the initiation of Help Educate and Teach (HEAT) programme that was commenced at the Alexander Sinton High School in the suburb of Athlone. The schools and individual learners will be benefited by this programme. Lalit Modi stated that any attempt towards development and strengthening of individuals as well as nation always remains as a soul of superior education. He also stated that India has emerged as a successful nation because of its strong education basis: “This emphasis on education is now paying off many times over as India has grown into an economic powerhouse far better equipped to lift people out of poverty”(The Hindustan Times, 2009). The investment of DLF IPL in the in the education of South African community targets towards a prospect return (Getz, D., 2007) and cautious analyses of this is vital. According to one of the strategies set out by Bowdin et al. (2006) i.e., Local area strategy; the DLF IPL created a carnival atmosphere by celebrating cultures of the South African community which in turn led to the enhancement of community unity. According to the report by the Hindustan Times 32 schools have benefited from the HEAT programme. For the learners who attended the DLF IPL matches, with the cooperation of the producers of the television five learners were recognized at individual matches and their faces were displayed on the monitors in the stadium. Each one of these received 15,000 rands as part of their school fee.

Cricket South Africa (CSA) chief Gerald Majola stated that the IPL model could be used to make this game a global sport event and this in turn would help other set-up’s take a great leap as well. The benefits gained economically were considerable. During this period of economic crisis the IPL has built a strong base for the South Africa’s tourist industry (Bowdin et al., 2006) and also proved to set out to the world that it is capable of hosting the FIFA 2010. According to Allen et al.(2002) other than the expenses of the event the people who came for the event put in their money on tour, lodgings, and other services in South Africa and there was a increase in hotel room bookings by 40,000 which otherwise is normally very low during winter season in South Africa. The South Africa government is majorly focusing on tourism sector as an upcoming industry that is competent of increasing the economic benefits and employment opportunities (Bowdin et al., 2006). In addition to the tourism produced throughout this event, IPL has also involved a lot of media reporting (Allen et al., 2002) and due to this the South African community profile has gained importance (Getz, D., 2006). The IPL has not only boosted the confidence of the youthful South African cricket players but has also provided with an opportunity to take part in a sporting event that is recognized worldwide (The Business Standard, 2009). “It is still sometimes argued by event ‘boosters’ that mega events generate benefit from the legacy of infrastructure and venues, but this assertion can easily be wrong” (Getz, D., 2007), because the basic purpose of IPL is very fruitful considering the fact that it brings the cricket stars worldwide who are against each other on nationalized defences into single squad (The Business Standard, 2009). This event has created a long lasting bond between the two countries (India and South Africa). Hosting the IPL in South Africa has not only made IPL a global brand, but has also brought billions of income to the South African economy.

SWOT ANALYSIS OF DLF IPL

Based on the details in Indian Premier League (2009) the following have been identified to be the:

STRENGTHS OF IPL:

The Indian Premier League (IPL) follows the Twenty20 format of cricket. This is the shortest version of the game, thereby finishing within two and half hours of game play. Unlike the One day format, which takes a full day to complete, or the Test format spanning five days of play, the Twenty20 is fast-paced and electrifying. Thus pulling in a large crowd to watch the game even on weekdays. Also the IPL has employed people who can really market goods well. These highly trained economists maximize the revenue with their very clean and methodological approaches. This makes IPL an integrated sport. Further each team has players from different countries. This causes a wide range of support of different communities to a single team, thus making cricket globally accepted. The supremacy of the BCCI in the control of ICC has a lot of benefits to DLF IPL. The financial backing from BCCI and also the power to manipulate the dates of international cricket matches favours the IPL.

WEAKNESS OF IPL

The pace at which people lead their lives now, they hardly have time to lavishly spend on watching a sport. Since IPL has satisfied this need of theirs, people are happier to watch the twenty20 format. Lots of talk has been going on about the status of other formats of the game and how to revive it. But the truth is, IPL has damaged the image of One day cricket and Test cricket. Further, a lot of money is involved in the IPL. Failure of a team can hurt the management’s financial position a lot. Teams also spend a lot on advertisement, cost of players, brand promotion. Hence sponsorship is hard to find for their overpriced rates. A team doing well will fare well. If not tough times lie ahead.

OPPORTUNITIES OF IPL

IPL has a budding fan following. Since it is striking and very attractive, a lot of potential sponsors and advertisers are willing to invest a lot in this event. The IPL has eight leagues. Each being responsible for itself in every sense. Every franchise has to market its team well and get a large fan following behind their team. This in the long term will generate a lot of revenue for them. There is a nice opening for teams to sell their brand name in forms of shirts, accessories and other memorabilia. Another important and vital opportunity for IPL is to target the teenagers. The older people will naturally have a stronger inclination to the traditional form of cricket. But the youth today will like this thrilling and breathtaking format. Each franchise will continue to pay the same fees till 2017-2018. Hence the teams need not worry about inflation, which has been a drawback in India for the past few years.

THREATS OF IPL

If the top players in world cricket can’t be brought into IPL teams, it will lose its popularity. Further, the domestic season in Australia runs concurrent with IPL. If the Australian players are not allowed to choose IPL instead of their local teams, a lot of fan following will be lost.

With the changing environment and stepping into the new centuries made all industries to change itself, especially when it comes to hospitality industry. First of all, hospitality is a major and diverse industry around the world. And business in today’s world is not a constant one which stands there in the market forever. It changes according to different causes like time, trend of the market, customer expectations and also includes culture. A fine definition of culture is, “Culture refers to the cumulative deposit of knowledge, experience, beliefs, values, attitudes, meanings, hierarchies, religion, notions of time, roles, and possessions acquired by a group of people in the course of generations through individual and group striving.” (Hofstede, 1997).

Culture plays a major role in any kind of business that exists in the market. Especially when it comes to the international hospitality business, culture is a serious fact to consider in order to survive in the market. Culture exists and differs from place to place and time to time. And some cultures already spread way beyond their boundaries and reached their new destinations. Cultures rage battles among themselves to survive. So the key factor in order to run a successful hospitality business or any kind of business is to understand the different cultures.

Culture acts different in different places. For example managing a culture in a work environment is different when looking at the customer’s point of view. It is a tactful theory for managers to handle it in any kind of organizations. In today’s world it is really hard to find a place where there is no existence of more than one culture. Today’s world is mixed with different cultures which makes more difficult for the managers in order to handle the business. Let us discus in brief about international hospitality business before we look deep into the culture. Hospitality is a service industry which is very important for every nation in the world. A fine definition of international hospitality business is, “When a domestic hospitality company establishes a new business in a foreign market, this company is said to be engaging in international business. International business is defined as a business transaction taking place between two or more companies from different countries. These transactions can be in trade, manufacturing, investments or services.” (Yu, 1999).

A very important fact is that the hospitality as well as the tourism industry is service industry, but they do differ from each other. Hospitality industry is more based on food, accommodation, communication and customer service where tourism industry is based on travel and destinations.

When it comes to the culture mix with the hospitality industry, it always ends in a disaster business if there is no proper management to take care of it. Hospitality as a service industry is mainly focus on customers, where in this industry the customers are from different places which mean different cultures. First fact is that dealing with different kinds of customers from different cultural background is very difficult under one roof. The second fact is that establishing a new hospitality business in a new destination could be more difficult to handle. For example if a company from Japan establish its hotel in New York, the managers must understand the cultural trend of New York in order to run the business. They cannot implement all their Japanese knowledge and policies into the business immediately. They must understand the people who live and travel there to have a successful business. “For international companies, research shows that often companies successful in their home countries have failed in foreign markets not because of technical incompetence but because of a lack of knowledge and understanding of a foreign market culture.” (Jia, 2010). That research proves that the culture could influence the business in many ways.

The third and major fact that influences the hospitality business lies nowhere but inside the business itself. It is the internal environment of the business which is its employees. In other term it is called as cross culture business environment. Due to the various immigration policies and searching for the right candidate for the right job made countries to hire foreign employees. This is one of the main causes which strengthened the cross culture environment. At the present market, almost all industries have cross culture environment.

Though it has lots of advantages like less pay, more hours and profit, it also has some disadvantages, especially for the managers. The following research shows us an idea of what is a major issue for managers when come to handle the cross couture environment. “Factors associated with the task influence by how much the diverse group is more creative than the homogeneous single-culture group. Diverse groups outperform homogeneous groups on complex problem-solving tasks, but may be less successful in performing routine tasks. Diverse group need time to resolve difficulties of working together. In an experiment conducted over 17 weeks Watson et al. (1993) found that the both group performed equally but the diverse group performed better in finding the range of possible solutions.” (Mead, 2005).

The research shows that even though the diverse group performed better than the homogeneous group, they take time to settle themselves as a team to perform to gather and consume lots of time to do that. But time is really an important matter for today’s business. Everything runs in a way where even a day is too short for everything. This could be an issue for managers especially when it comes to the fast environment like hotels and restaurants. But the managers have to invest time on their employees to make a strong environment in his business. This led the managers to the simple management cycle which is shown below,

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(Vinette, 2008)

The first important fact is to hire the right candidate for the right job. Training is an important fact that could solve any kind of issues in the organization. Training strengthene the business enviornment and it results in a good outcome. If there is a powerful training process in a multicultural business enviornment,then the result woud be more effective and positive for the business. That is the reason training process in the organization is considered as an important fact in each process of the business.

An other factor which influence the international hospitality business is the external factor. Changing trends, taste and the preference of the customers rule the market. And the technology is way beyond than the human expectation which helps the different cultures to spread around the world and find their new homes. This results in us living in a multicultural enviornment. All these affects hospitality industry directly or indirectly. Being as a service industry,it has to change according to the time and the situation in the market which is not easy as it seems in this competitive market.

At first to overcome the issues in the internal factors such as managing cross culture enviornment, business managers comes with the different kinds of model as a solution for this issue. One of the famous model used by the international managers is ‘comparitive model’. “The model enable the user to make comparisions between different cultures and any one culture is described in relation to another culture or cultures.” (Mead, 2005). This helps the managers to understand the different cultures and gives a basic idead of handling it. But if a cross cultural environment is properly managed and trained,then the resul will always be an successfull and profitable one.

All international hospitality industry involves in the matter of encountering their customers from different cultural backgrounds. So the issue for the managers is not just to manage the internal factors (employees) but also the exernal factors,i.e, the consumers. Managing customers is really important and really a hard task for managers as there are plenty of competitors in the market. And the customers are like a free bird in this socialist economy. “The cultural background srongly influences the consumer behaviour, Ignorance of core cultural sensitive values often leads to erroneous belief resulting in unhappy customers and lost business.” (Mohsin, 2006). This is a fine example. The Western culture people go for the time saving process in any kind of industry where Asians prefer high quality interpersonal relations. Even the view of the consumer about a product is differ from each cultures. And ignorance of the cross culture will have a direct impact on the business and leads to winding up specially for hospitality industry bing as a servic industry.

It is very important to note that both the internal and external factor of the hospitality industry is well connected. Employees works in a way with the consumers to run a smooth flow of business. The relationship between the employees and their actuall customers is measurable which makes easy for the managers to run a profitable business. The multicultural enviornment in the hospitality industry is a boon to the business, because the employyes itself will find a way to interact and communicate themself to understand the needs of the foregin consumers. As the internal enviornment itself has different cultures which mean different ideas and solution for the different problems which is a key way to a successful business.

At this 21st century, hospitality industry like hotels, restaurants are worldwide. A research shows that there are existence of 279 foregin hotels in a singe state of China. (Okoroafo, 2010). This shows us the increasing level of international hospitality business worldwide. When a business extends beyond its territory, then there is a strong percentage that it will get mixed with the other cultures. A best example is opening a Japaneese hotel in the heart of U.S.A. In this case,the japaneese company will bring their own management people who will be mixed with american candiates. This i called as a cross cultural management. To run the busines,Japaneese managers must understand the culture of America at first and also other factors such as govermnt policies and rules and regulations. Understanding culture is one of the important fact when it comes to the hospitality busniess.

Policies and regulations of the goverment may sometime affects hospitality industry.For example the immigration policies of goverment always have an impact on hospitality business. It has both positive and negative sides. The following graph shows the immigrations of U.S.A from the year of 1820-2010,

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The graph shows that the immigrants in the U.S alone has reached its peak level where they have never seen anything like this in their American immigration history. And this make America as a multicultural nation. Because Each Immigrants brings their own culture into the country. This happens not just in America, its worldwide now. This will slowely affect the hospitality industry as there is a slow change in the the culture of the country. Over croweded muticultural nations also have issues like racism and equality which affects not only the hospitality industry but all industries. So it is the duty of the managers to keep an eye on the Nations culture and update their business and the products according to the cultural change.

CONCLUSIN:

As we are living in a changing cultural enviornment, we need to adapt ourselfs in order to survive in this competitive world. And our business adapts with us in a matter of fact. Even though there are lots of cultural changes occurs in the soceity, Hospitality industry survived those impacts which were thrown by our different cultures. The key factor is the training which helps the managers to manage both the internal and exernal factors which ifluences the hospitality business. If an international hospitality manager manages to give a proper training to his multicultural employees,then there is no doubt that the business will be successfull one. And it is also important to keep an eye on the muticultural future which is very near and crystel clear.

Gambling is an illegal activity in Singapore. Under the Singapore law, only those with licenses such as, Singapore Pools and The Singapore Turf Club are legally to offer gambling to the public. Sport betting, horseracing, and lottery wagers are only allow for persons of age 21 and above. In 2006, Singapore government decided to allow two new Integrated Resorts, the Marina Bay Sand and Resorts World Sentosa with casinos. The government believes that these two Integrated Resorts would provide a strong boost to the economy and job opportunity to the country. The decision by the Singapore government to set up two integrated resorts with casinos has stirred up some debate among its citizens. Some people think that having casinos could mean more people gambling and getting themselves or their families involved in trouble such as crime. In addition, social problems like bankruptcy, divorce, suicide, income loss and problem gambling may also be increased after a casino was introduced in Singapore.

Singapore has just officially opened its two casinos in February and April 2010. The government has enhanced the regulation of casino gambling in order to mitigate the negative effects of gambling. The new casino gambling laws has provided a number of social safeguards to prevent Singapore citizens and permanent residents from becoming problem gamblers. These social safeguards include entry levies, credit and loss limits, self-exclusion order and protection of minors (MCYS 2005).

Objectives

According to The Straits Times (2004), Singapore has become No.3 in the world in terms of gambling per capital without a casino. Many Singaporean like to travel to Genting Highland (Malaysia) and gamble at its casino. Some on them would also go on Star Cruise to try out their luck on the limited number of slots and gambling tables. Gambling is not new to the average Singaporean but having a casino is a relatively new phenomenon in Singapore. Hence, this proposed research will focus on the relationship between casinos and crime in Singapore. The research will also assess the quality of life before and after the casinos opened in Singapore, and measure the effectiveness of social safeguards. A survey will be conducted to determine the public perceptions of changes in crime and the quality of life that may have accompanied the advent of casinos. In addition, qualitative data reflecting quality of life will be gathered from interviews of community leaders, police officers, businesspersons and social service providers. Finally, recommendations for actions to help to combat casino gambling-related crime will also be discussed in the research. The followings are some hypotheses (H) that I will be investigate in this research:

H1. Casinos gambling increase crime.

H2. Casinos gambling have negative effects on quality of life.

H3. Higher casino levy will not be more effective in deterring problem gamblers.

Literature Review

Casinos are often associated with criminal activity. A number of studies in the United States and Canada that have analyzed the relationship between casino gambling and crime have yield contradictory and inconclusive results. Grinols wrote the article: Casino gambling causes crime in 2000 and he has pointed out that the evidence in his research has shown that casino gambling causes significant increases in crime. According to the article, a number of pathological gamblers have lost control over their gambling behavior, personal lives and job. They relied on other to provide money to relieve a desperate financial situation caused by gambling. Moreover, some of them got themselves involved in illegal activities. One of study gamblers in treatment found that 62 percent committed crimes because of their gambling and nearly 400 members of Gamblers anonymous showed that 57 percent admitted stealing to finance their gambling (E.L.Grinols 2000). The study proves that casino gambling related to crime.

In the same year, Grinols conducted a research (Casinos, Crime and Community Costs, June 2000) with Professor David Mustard, Cynthia Hunt Dilley to examine crime statistics for all 3,165 counties in the United States from 1977 to 1996. They looked at local crime rates before and after casinos opened. The data shows that crime rate increased after the casino had begun operation in the majority of the casino counties. However, the data also indicate that there was no significant rise in crime rates for the first three years after casino opened and the crime rates began to rise in casino counties after three years. The study concludes that the crime rate in the casino counties is higher than counties without casino. Las Vegas, for example, the crime rate is higher than other counties.

This study has certain limitations that need to be taken into account when considering its contribution. There are many strengths and limitations of official statistics (crime statistics). They offer the opportunity to identify trends in crime overtime as well as look at more than just the crime committed by problem and pathological gamblers. However, these data only show the rate of recorded crimes and they may not be an accurate reflection to the actual crime being committed in society. In addition, researcher may also find it difficult to analyze the share of crime related to casinos from the mass of other crime that occurs all the time. It is difficult to prove that the advent of casino has the direct effects on crime. Thus, researchers have to get various sources in order to prove the validity and reliability of their study.

Grinols and Mustard did another the study in February 2006 on “Casinos, Crime, and Community Costs”. The study is a remarkable contribution to the gambling literature. The study provide as detailed discussion of theoretical connection between casinos and crime. The authors discuss two potential factors through which casinos may reduce crime. First, if casinos provide labor market for low-skilled workers, crime may fall. Second, economic growth effects attributable to casino gambling that could reduce crime.

On the other hand, they also discuss the five potential negative effects of casinos on crime. First, casinos drain the local economy of resources and may harm economic development. Second, casinos may contribute to an increased crime payoff. Third, casinos may increase the number of pathological gamblers, and this can lead to more crime. Fourth, casinos may also attract criminal activities, resulting in more crime. Finally, casinos may induce a change in local population, towards one more apt to commit crimes. According to the result of the study, casino gambling has generated externality costs, and crime is one of the biggest components of these social costs. Grinols and Mustard believe that the social costs of casinos are greater than benefits.

Joseph Friedman, Simon Hakim and J. Weinblatt did a study in 1989 on “Casino gambling as ‘growth pole’ strategy and its effect on crime”. They have found that casinos had increased the level of crime in Atlantic City. Another study, done in 1989 by Simon Hakim, Andrew J. Buck and Uriel Spiegel, centered on Atlantic City and 64 communities in surrounding area. They assume that casinos in an areas increase the crime rate in that area. Based on their (Hakim and Buck) theory, the opening of a new public area such as casino will attract attention that is more public and create opportunities for criminal.

However, Eadington (1996) argues that the introduction of theme parks or resorts into an area could have similar negative effects as do casinos on the area’s crime. For example, the crime rate has been increased after the Mall of America (super-regional shopping mall) opened in Bloomington, Minnesota (R.Garcia, & L. Nicholls 1995). Hence, Eadington (1995, p7) has concluded that “there is no compelling evidence that crime rates in cities with casinos are much different than in cities with tourist attractions in general”. His argument is similar to Hakim and Buck’s theory but he suggest that the crime rate increased is not due to the casino per se.

Scott T. Horn, a New York civil appeals lawyer disagrees with Hakim and Buck’s theory. He did a study on “Casinos and Crime: Don’t Bet On it” in 1997, which concluded that there is probably no relationship between casinos gambling and total crime rate. To overcome the weaknesses of the Hakim-Buck model, Scott develop a model to predict the casino gambling on crime rate by using data from crime statistics and FBI’s Crime Report. According to his theory, cities with significant number of casinos, the increase in casinos, which would in turn increase in crime rate, would have little impacts on overall crime rates. This is because there has been a decline in the novelty effect. The results and conclusion of the study differed from the studies that I have mentioned earlier. Horn (1997, p4) concludes that, “the effect of casinos on crime will decrease at a decreasing rate with each additional casino opened in any given region”. Las Vegas has over 250 casinos, Macau has 28, Singapore has two now. Based on Horn’s theory, the effect of casinos on crime rate in Singapore would be more significant than Las Vegas or Macau when a casino first open in Singapore. However, the crime rate would decrease with the opening of second or even the third casino.

Few studies have also examined the effects of casinos on crime. Those studies that have analyzed the relationship between casino gambling and crime have yielded contradictory results. Most of them are using vague references to survey or fanciful figures to support their claims. U.S News & World Report perform a “computer analysis” and shows that town with casinos have experienced a rise in crime at the same time it was dropping for the nation as a whole (S.T.Horn 1997). However, in terms of validity, the present result may not be accurate and reasonable reliable because the report never mentioned on how the computer analyzed the data.

There are many studies focus on the relationship between casino gambling and crime in the United States, only a handful of studies have examined the casino gambling in Asia. Macau is openly known as a casino state in Asia. It has more than 30 casinos and 4,600 gaming tables, which has overtaken Las Vegas in terms of gaming revenue (China Daily, 2009). However, the total number of crime in this island city has increased from 4,717 in 1987 to 8,576 in 1996 over the last decade. Crime rate per capita has increased from 14.11 per 1,000 people in 1987 to 20.62 per 1,000 people in 1996 (S.H. Lo 2005). This has created a serious social problems directly affect the residents’ daily life. Nevertheless, the crime statistics may not be able to reflect the reality as some people may not report the crime because of the complicated procedures and time wasted.

Despite the proliferation of legalized casino gambling in Asia, Europe and United States, it remains controversial with regard to both its effect on crime as well as its effects on the diverse socio-economic aspects of the community. According to a study (H. Lesieur 1996) on gambling and crime, a heavy concentration of casinos in an area is associated with tourism-related crime and some communities with casinos have little or no measurable crime impact. The author also claims that the pathological gamblers may commit crimes to finance their gambling (H. Lesieur 1996). Yet, the UCR (Uniform Crime Reporting Survey) measures are not precise enough to gauge all changes in the incidence of crime.

Casino is often used as a panacea for economic ills. Casino gambling in the United States has provided new capital investments, jobs and some degree of economic vitality to areas that were in need of economic revitalization (B.G. Stitt, & M. Nicholas 2000). On the other hand, casinos do change peoples’ pattern of spending and saving. For example, in 1992, a study has reported that Americans spent more on legal gambling than on other leisure activities such as reading or watching movies (S.Simurda 1994). In addition, the impact of casinos on a community quality of life is difficult to gauge. For example, casinos bring tourists and entertainment but other recreational amenities (theaters, karaoke lounges, and restaurants) bring traffic, noise and a change in community’s traditional social and cultural environment. Whether the change is in positive or negative, it all depends on the individual and his or her view of gambling, and the changes it brings to a community. Ultimately, the evaluation of casinos’ impact on a country may well depend on the country’s pre-casino well being, as well as each individual’s assessment of the benefit and detriments that casinos bring to the country, and to each individual’s lifestyle (B.G. Stitt, & M. Nicholas 2000).

Methodology and Data Collection

In order to produce a more comprehensive understanding of the study, a multi-method approach will be applied to examine the immediate effects of the casino gambling on crime, quality of life, economic development, and social costs. To analyze these issues, I have chosen Singapore where casino gambling has recently been introduced. Information will be obtaining by conducting a survey and a series of in-depth interviews with selected participants. I will use both quantitative and qualitative data to analyze the various short terms impacts that the introduction of casino gambling may have on Singapore. The following types of information will be gathered:

1. Obtaining the crime statistic from Singapore Police Force (SPF)

2. Conducting a public opinion survey

3. Gathering the data on the crime and quality of life by interviewing community leaders (Member of Parliament), police officers, businesspersons, problem gamblers, and social service providers

4. Gathering data on local quality of life from public sources (e.g., suicide data from Registry of Births and Deaths, Singapore Immigration and Registration; bankruptcy statistic from Singapore Ministry of Law; divorce rate from The State of the Family in Singapore Report)

5. Collecting data on the economic impacts of casino gambling from public data resource such as Statistic Singapore and Singapore Ministry of Manpower

Participants need to meet two criteria in order to be eligible to take part in the survey. First, the participant must be at least 21 years of age. Second, the participant must have been live in Singapore for at least 5 years. Furthermore, researchers need to be aware of the ethical issues when conducting a survey and interview. All the personal information of the research participants should be kept strictly confidential.

Data on the crime rate

Crime statistics can be obtained from SPF. The crime rate is based on the total population that comprises Singapore residents and foreigners staying in Singapore for at least one year. Crime classes refer to the six classes of Crimes Against Persons, Violent Property Crimes, Housebreaking and Related Crimes, Theft and Related Crimes, Commercial Crimes, and Miscellaneous Crimes. With the opening of two casinos in Singapore, an elite police department has been set up to investigate casino-related crime. This department would be able to provide an accurate number of crimes attributable to casinos. Casino-related crimes will be distinguished from the overall criminal activities.

Casinos attract a large number of people, many of whom may be visitors from other countries. Therefore, crime rates that adjusted by the local population rather than the population at risk (local population plus visitors) will bias crime rate upward. To avoid this bias, population at risk will be controlled by gathering data on the number of foreign casino visitors and these data are routinely collected by the casinos. I will conduct the interviews with police officer in order to know more about latest crime trend and increase police resources regarding casino gambling.

Economic factors must be considered when examining the relationship between casino gambling. This is because economic factors can influence crime rates in a country. According to the economic approach to crime, opportunity cost is relative to the increased criminal activity (G.S. Becker 2001). Difference in opportunities people face such as unemployment rate and median household income are the primary determinant of committing a crime. For example, higher unemployment rate and lower median incomes are expected to be positively correlated with criminal activity because the opportunity costs of incarceration are lower. Similarly, crime rates are expected to be higher as the proportion of the population below the poverty line increases or during economic downturns (B.G. Stitt, & M. Nicholas 2000).

Public Opinion Survey

A public opinion survey will be conducted and the survey responses will be completely anonymous and voluntarily. The data collected will contain the perception data and opinion. In order to archive reliable results, 250 of randomly selected participants (Citizens and permanent residents) will be involved in the survey. This survey includes questions regarding quality of life in Singapore. For example, respondents will be asked to evaluate the impact of casino gambling have on their lives in particular, have they perceived the changes in crime, do they feel there is an increase in employment options, financial well being, and recreational opportunity, do they think having casinos is good or bad to the country, etc. These are some of the important questions that provide the information that will not likely show up in an examination of crime statistics.

The survey will be designed to ask questions in three general areas. The first area of the survey will include the demographic information such as age, marital status, gender, race, education background, and the income of the participant. The second area will ask opinion of participants on the impact of the existence casinos on Singapore. The third area, participants will be asked the questions regarding gambling behavior (e.g., “Have the participant ever been to the casino? “How many times do they go in a month”? “How much do they spend gambling on average?”) .

Data on Quality of life and Social Problem

Social problems such as family dysfunction, divorce, spouse abuse, suicide, and bankruptcy often mentioned when discussing the impact of casino gambling. These are important determinants of the social costs of casino gambling. Quantitative information on these variables can be obtained from the gambling related organizations and government departments. These include:

National Council on Problem Gambling (NCPG): http://www.ncpg.org.sg/

Registry of Births & Deaths Citizen Services Centre, Immigration Checkpoint Authority (ICA): http://www.ica.gov.sg/page.aspx?pageid=144&secid=143

Ministry of Law: http://app2.mlaw.gov.sg/

State of Families in Singapore Report: http://fcd.ecitizen.gov.sg/NR/rdonlyres/19BA7E14-E7C6-464B-9251-22D3D2C559D2/0/Chpt1.pdf

Ministry of Community Development, Youth and Sports: http://app.mcys.gov.sg/web/faml_supfaml_familyservicesctr.asp

The number of divorce, suicide and spouses abuse is available on the website mentioned above. However, it is difficult to know the portion of those caused by gambling related problems. Therefore, personal interviews with counselors and social workers provide a great opportunity for me to evaluate the benefit and costs of casino gambling. In addition, the effectiveness of social safeguards can be measured through the survey and interviews. Personal phone interviews with the pathological and problem gamblers enable me to explore their perspectives on casino gambling and social safeguards, as well as to understand the effects on the gamblers’ family and society. The effectiveness of social safeguards can also be measured by gathering the data from the two casinos, which provide the number of visitors (Citizens and permanents residents).

Data on the Economic Impact of Casino Gambling

The qualitative information will be gathered to augment information that obtained from the crime statistic and the public opinion survey. The economic impacts of casino gambling are tangible and quantifiable. Data of the positive and negative impacts of casino gambling on tax revenue, tourism industry, other business (e.g., movie theaters, pub, karaoke lounges, restaurants and retail shops), employment, wages, the number of people on welfare and property values can be obtained from public records (e.g., court records, police records, criminal records and criminal history, arrest records), Statistic Singapore, government departments. (e.g., Singapore Tourism Board and Ministry of Manpower). The chambers of commerce, public officials and local businesses are valuable sources of information. I can gather these data from personal or phone interviews with them. Social benefits are important consideration when examining casino gambling. Questions will be focus on the positive or negative impacts of casinos to the country’s economic development such as infrastructure improvement, increased tax revenue and police resources. Tourism development and improvement of infrastructures are some benefits that casino gambling may provide. This type of information may not available publicly but is readily available by speaking with officials in the chamber of commerce or community leaders.

Casino gambling may increase or decrease welfare rolls. On one hand, casinos may provide job and reduce welfare rolls. On the other hand, problem gambling may lead to unemployment and an increase in welfare rolls. Similarly, casinos may boost the tourism industry or harm other businesses if potential customers spend their money on casino gambling. The perceptions and opinion of public official and businesspersons will provide much valuable insight into these issues. Local media (e.g., journalist, reporters) can provide me additional information on the perceptions and the impacts of casino gambling. These data can be gathered from local newspaper or website.

Data Analysis

A mix of quantitative data and qualitative data will be gathered in this study. The analysis of quantitative survey data and statistic data is time consuming therefore analysis of quantitative data will be conducted first followed by the analysis of qualitative data.

Quantitative Data

The statistical data analysis will be used to examine the hypotheses in the proposed research. Data on crime rate, income level, bankruptcy, divorce, suicide, spouse abuse , and welfare rolls are the quantitative data that eligible for statistical analysis. All statistical approaches will involve before and after analysis to examine whether there have been a systematic change in crime and social disruption following the advent of casino gambling.

Least squares regression analysis will be also be employed in the study. It helps us to understand how to typical value of the dependent variable (crime) change when any of the independent variable (population changes, income levels) is varied.

Qualitative Data

Qualitative data is used to augment the quantitative data. Information that has been obtained from the interviews with community leaders, police officers, social service providers, chambers of commerce, businesspersons, and problem gamblers will be analyzed through qualitative data analysis. This is a process of moving the qualitative data that have been collected into some forms of interpretation and understanding of the interviewees, and situation we are investigating (N. Lewins, C.Taylor & G.R.Gibbs 2005).

The collected data will be presented in tabular format. For example, what the proportions of social workers feel that the casino has had a positive or negative impact on society?

What the proportion of community leaders, chambers of commerce, businesspersons, and police officers feel that the introduction of casinos has had positive or negative effects on society? Is the proportion of police officers that feel casino gambling has increased crime significant different from the social workers who feel that the casino has increased crime?

Time Scale & Plan

This research is planned to be completed in six months. First, I will study the relevant literature in order to deepen my understanding of the chosen research topic. I will also evaluate different research techniques and select the most suitable methodology for my research. The first month will end with completing a research proposal and a written literature review.

In the second and third month, I will examine the public and the key people opinions on the casino gambling by conducting a survey and interviews. I will review the questionnaire and interviews questions to ensure all the questions are relevant to the objective of my study. If the survey response rate was not good, I will send out more invitations to ensure I reach my target number. All primary and secondary data will be collected within these two months.

The forth month will be dedicated for data analysis. Once all data are collected, I will organize and interpret these raw data. I will spend the last two months to write my dissertation. The first draft of my dissertation will be finished in the fifth month. In the last month, I will do a final check and revision for my dissertation. The final dissertation will be completed at the time of submission.

Literature review on how economic crises affect tourism

Hospitality industry affected by crises such as the economical one theses days.
Customers buying decision&Power influenced when they want to travel by crisis or financial aspects.
Affect on arrivals, expenditures, number of nights stayed, volume due to a crisis (economic and financial)?
Explain law of supply and demand, and give a model related to hotels or tourism if possible.

The impact of crises, particularly economic crises, on the tourism and hospitality industries is illustrated sharply by Watkins (2002), who details how the depressed economy of the United States following the dot com crash led to a rapid decline in the American long haul public transportation system, with significant implications for the US tourism and hotel industries. In addition, not only did the weak economy in 2000 and 2001 create issues in the industry, but the attacks on the 11^th September 2001 dramatically decreased travel across the country. However, Watkins (2002) demonstrates that this also led to customers exercising greater power when making their buying decision, with many companies choosing lower class options for business travel, and tourists using the power of the Internet to look for the lowest air travel prices. In addition, the economic and terrorist crises actually benefitted US low cost carriers, allowing Southwest Airlines to reach a critical mass of services, and hence take on the major flag airlines such as American Airlines and Delta.

Indeed, the evidence indicates that during a significant economic crisis, the tourism industry shrinks, but changing consumer preferences tend to minimise the impact of this shrinking, and allow some sectors to grow. Looking at the current economic crisis, Clausing et al (2007) report that many travel executives are confident that the industry as a whole will survive the current recession, and even emerge stronger, and with higher net profits than originally forecasted. This is further supported by Taylor (2008), who reports that whilst sales of traditional holidays in the UK country fell by a quarter over the summer of 2008, with many predicting a further 12 per cent fall over the summer of 2009, this reduction in capacity will provide future benefits to the industry. In particular, the reduction is expected to result in an six or seven percent increase in prices in 2009, which will help the surviving agencies and operators to boost their profits and secure their operations.

However, whilst widespread national or international crises, such as the one occurring at the moment, offer opportunities for some firms in the industry; localised crises can have a devastating impact on arrivals, expenditures, and volume in the local area. The Economist (2003) details the impact of the outbreak of severe acute respiratory syndrome, SARS, on the economy of Hong Kong where it was most concentrated. In Hong Kong at the height of the outbreak, hotel occupancy fell by almost 80 per cent and the two main passenger airlines: Cathay Pacific and Draganair, lost more than 60 per cent of their traffic. Restaurants and hotels in the city also saw almost no economic activity, and retail prices continued their falls which were initiated by the Asian financial crisis in the late 1990s (The Economist, 2003).

The Asian financial crisis itself was a significant one, and had a major negative impact on tourism across the industry, particularly amongst Asian airlines which lost many of their business class passengers. However, in this case the economic crisis created a fall in demand which acted as a catalyst for a significant change to the supply side of the industry (Sadi and Henderson, 2000). In particular, the Asian airlines recognised the need for high levels of adaptability in their supply of services, including the need to be flexible around costs in case of falls in revenue. The supply side pressures led to an increasing extension and consolidation of the various strategic alliances in the industry, as well as organisational reorganisation and the adoption of new technologies. These changes allowed the most successful players in the industry to weather the crisis and gave them the potential to emerge from it in a stronger situation (Sadi and Henderson, 2000).

Indeed, even major crises can provide a boom for some tourist activities in the region where the crisis occurs. This can be seen in Pearce’s (2001) analysis of the development of the New Zealand tourist industry during the 1990s, which was strongly affected by the Asian economic crisis. As a result of this crisis, only the most resilient hotels, airlines and other tourist offerings were able to thrive, hence creating an industry able to rapidly adapt to changing tourist tastes and market conditions. This led to New Zealand developing one of the most diverse and complex tourism industries in the region, giving it significant appeal to a wide range of tourists (Pearce, 2001). Finally, whilst the tourism industry can be strongly damaged by economic crises, it can also reap the benefits of events which occur as a reaction to said crises, or from attempts to resolve them. This is demonstrated by Bue-Said (2008) who claims that the victory of Barack Obama in the US presidential election will tend to be of significant benefit to the tourism industry in the United States: not only will Obama’s proposed rescue package for the US economy stimulate tourism, but as the first African American President of the United States, Obama may well be a tourist attraction himself.

References
Bue-Said, J. L. (2008) Black clouds could be lifting. Travel Weekly; 14^th November 2008, p. 26.
Clausing, J. Baran, M. and Compart, A. (2007) Industry is upbeat despite credit crunch. Travel Weekly; Vol. 66, Issue 38, p. 16.
Economist (2003) In intensive care. Economist; Vol. 367, Issue 8321, p. 20.
Pearce, D. (2001) Tourism. Asia Pacific Viewpoint; Vol. 42, Issue 1, p. 75.
Sadi, M. A. and Henderson, J. C. (2000) The Asian economic crisis and the aviation industry: impacts and response strategies. Transport Reviews; Vol. 20, Issue 3, p. 347-367.
Taylor, I. (2008) Holidays out of UK ‘down by a quarter’. Travel Weekly; 14^th November 2008, p. 2-3.
Watkins, E. (2002) Another Threat to the Hotel Industry. Lodging Hospitality; Vol. 58, Issue 12, p. 2.

Table of Contents (Jump to)

Introduction

Background

Region

PESTEL Analysis

Political

Economic

Social

Technological

Environmental

Legislative

Infrastructure and Transportation

Airports

Tegel Airport

Schonefeld Airport

Tempelhof Airport

Berlin-Brandenburg International Airport

Trains

Automobile/Bus/Taxi

Tourist Trends

Competition

High-End Competitors

The Ritz Carlton

Westin Grand

Middle to Low-End Competitors

Ambassador Berlin

Hotel Syler Hof Berlin

Arco Hotel

Competitive Analysis

References

Introduction

The hotel industry can be viewed as a varied and oftentimes maligned business sector, mandating innovation in pursuit of enhanced consumer participation. Ikea, a multinational home furnishing corporation has enjoyed over sixty-five years of enduring success through diversifying public offerings and strategically expanding into previously un-charted market sectors. A foray into the hotel industry demonstrates a radical departure from more traditional brick and mortar and online operations. Allowing guests to experience the Ikea product line firsthand thorough overnight stays in a rich cultural community represents yet another integration of the Ikea vision to “better the everyday life for the many people” (Ikea, 2008). The following sections investigate the unforeseen and predictable variables which currently influence Berlin hotel operations. Through deeper strategic analysis and competitive survey, future operations will be much more successful and the market transition, much more fluid. Given that long term operations within the hotel community offer a uniquely segmented potential for Ikea to intimately connect with patrons, the success of this endeavour will be directly accredited to comprehensive understanding of market conditions and variables.

Ikea, a household goods producer founded in the 1940’s in Smaland Norway, has grown from a mail order catalogue into a multinational furniture and home furnishings retailer. Known for a unique yet affordable design, commendable quality, and exemplary functionality, Ikea products have developed a singular consumer following across its global marketplaces. This foray into the hotel industry is both trial and opportunity, expanding revisionist concept of an interactive showroom to allow consumers to enjoy affordable accommodations while considering long term purchases of their room’s product line.

Germany’s competitive advantages within the European travel market continue to expand as it diversifies the variation of hospitality offerings throughout its unique city centres. Recognised by the World Economic Forum, specific categories that differentiate Germany from other nations include foreign ownership, property rights, environmental regulation, police and crime rate, health and hygiene, transport infrastructure, and cultural resources among others. Yet within this segmentation there is one sphere which is considered a substantial disadvantage, government involvement in tourism. Government support and expenditure on tourism in Germany is considered within the lowest categories in the EU, demonstrating an innate misconception that tourists will simply flock to historic sites without encouragement.

Blanke and Chiesa challenge that an expansive travel and tourism business directly contributes to employment rates, improved national income, and restoration of a balance of payments, thereby driving national growth and prosperity (2008). In that same report, Blanke and Chiesa recognise the top tourism competitors across the globe, with Germany claiming a proud third place. Evidence demonstrates that travellers throughout Europe are much more sensitive to the overall cost of travel at this temporal juncture, thereby reducing their proclivity to travel inter-regionally due to shorter distances when fares are higher (Pearce, 2008). Yet industry data shows that cultural merits and a safe and well apportioned infrastructure can directly encourage leisure and business travel regardless of cost or distance (Blanke and Chiesa, 2008). Considering that nations continue to evaluate the social, economic and environmental costs of multinational tourism, Germany remains a frontrunner at internalisation of Kyoto principles, as developments such as the emission zone in Berlin and reliance on alternative and public transportation continue to define the relationship between traveller and local environment (Nelson, 2008).

The following sections will highlight the unique business environment of the Berlin marketplace by extrapolating the segmented strategic concerns for major hotel corporations. Through the identification of key variables from which to launch tactical operations, the Ikea Hotel Berlin will find positioning intimately linked to the community it wishes to explore. Recognising that the geographical and ideological differences between multinational operations will determine fundamental success of this business model, it becomes essential to categorize structural dissonance in terms of political, economic, technological, environmental, and legislative categories.

PESTEL Aanalysis
(P)olitical

The political climate within the many city-states of Germany is considered peaceful and competitive with neighbouring EU participants. Berlin, the capital city of Germany, is recognised as an independent city state forming a coalition of 16 federal states (lander). Within the city, the 3,405,469 inhabitants are subdivided into 12 bezirke (boroughs), a culmination of 23 historical regions that took place in 2001 (“Politics,” 2008). According to census results, Berlin is the EU’s 2^nd largest capital city, falling behind London and just edging out Madrid (“Berlin in Figures—2008,” 2008). Given the current status of international relations, political challenges face Germany as a whole in the coming decade as trade relations and international conflict continue to be strained by multinational alliances. Providing Iran with its largest share of Western products and importing one third of its energy supply from Russia, Germany maintains trade relations with two of the most volatile forces in the international community (“The Berlin Stonewall,” 2008). Continuing positive trade relations with localised EU nations as well as the USA, Germany is seated solidly yet precariously given the implications of further turmoil within Middle Eastern or Asian countries.

(E)conomic

The economic outlook for Germany in the coming decade is bright with a positive import/export surplus generating potential for expanded international investment and material goods import. According to World Bank Statistics, Germany’s GDP in 2007 was $3,297.23 billion, an increase over 2006 of 12% and an increase over 2000 by 42% (World Bank, 2008). Within such as successful economy, however, Berlin currently retains a 15.5% unemployment rate where primary employment industries include financial, renting activities, and other services (65.7%); trade, hotels, and restaurants (16.1%); and industry (14.9%) (“Berlin in Figures—2008,” 2008). Yet critics recognise that Berlin’s unemployment rate is substantially higher than the other major cities throughout Germany’s many states, many of which boast a comparative 6-7 percent (Bidlake, 2008).

Considering the financial implications of integrating an Ikea hotel into the broad Berlin hotel economy, realised wages will play an important, yet comparable part in hiring a comprehensive staff. The 2006 average annual employee wage in the hotel sector was just under 25,000 euros, whereas industrial occupations garner substantially more at 51,000 euros (Amt Fur Statistik, 2007). Comparatively, median annual wage in the UK was recently calculated at ?24,908, thereby highlighting a minimal reduction in payout to German employees in a cross-market comparison (National Statistics, 2008). Supplementing the underlying wage protocol, financial issues have remained a challenge amidst efforts by a proactive national German government. A 2007 increase of 3% VAT in response to economic turmoil and increasing oil prices was considered the highest increase of EU nations, and while functioning as a hedge mechanism for balancing government funding, the effects of this policy were less than successful. The IMF noted a monetary trend through which consumer purchases were unnaturally elevated in 2006 to overcompensate for the increase in VAT that would later be implemented in 2007 (IMF, 2008). Recognising such economic factors is essential in appropriately pricing the hotel rooms, amenities, and luxuries, thereby encouraging additional local participation.

(S)ocial

During the time period between 1965 and 2006, over 33 million people immigrated to Germany; however, during that same period, over 24 million people emigrated, causing a deficit in available workers throughout German industries (Gundel and Peters, 2008). Social demographics demonstrate that over 83 % of Berlin’s population is over the age of 20 with only 5% under the age of 5 (See Figure 1). Considering the continued emigration of German nationals, an ageing population, and a reduced incidence of birth, the long-term outlook for Berlin employability continues to be reduced. Within the youth of Berlin, demographic study determines that there are approximately 426,712 nationals currently enrolled in pre-graduate education, while only 31% as many students are currently enrolled in graduate studies and beyond. Such data demonstrates a prevalent deficiency in skilled labour, thereby offering employment prospects which considering growth within the hospitality industry. However, management candidate availability will be reduced, and given regional localisation, it will be essential for Ikea to consider external candidates for these positions.

(T)echnological

Perhaps one of the greatest concerns within the current Berlin architectural community is a well-recognised excess of unused apartment and office buildings. A residual of a post-cold-war master-plan, the construction of the city centre known as Potsdamer Platz and surrounding establishments were designed to re-establish German heritage within its capital and offer a broader array of resources for a demanding European community (Copeland, 2004). Considering that the majority of industrial operations are located outside of Berlin in the expansive surrounding communities of Hapsburg and Munich and a rampant dissociation among inhabitants with areas outside of their unique boroughs, researchers posit that there has been little impetus to rekindle the expansive constructed area in central Berlin (Copeland, 2004).

Supplementing Germany’s commitment to sustainable resources, Berlin is working towards becoming a premier alternative energy educator. Opening in the coming months, the Energy University Berlin is scheduled to open to a host of 15 professors teaching upwards of 500 graduate level students (Invest in Germany, 2008). Committed to pursuing renewable resources and alternative energies, this establishment will further define Berlin’s legacy as an active participant in the Kyoto greenhouse reduction scheme. Considering the Ikea position on sustainable materials and environmentally friendly compositions, the Berlin efforts offer strategic collaboration with limited external investment.

(E)nvironmental

As the EU has adopted strict legislative guidelines in accordance with the Kyoto principles and an agreed upon carbon trading system, Germany remains a staunch support of such fundamental guidelines. Amidst Germany’s current commitment to the EU Emissions Trading Scheme, (ETS) substantial growth has been achieved within the field of sustainable technologies and alternative energy sources. Strand (2008) noted that renewables now make up over 6.4 percent of all German energy consumption, and enhanced incentive mechanisms continue to expand commitment to such alternative resources. Figure 2 demonstrates the actual percentage of renewable energy usage in comparison to other global renewable leaders. While considered competitive in terms of a tourist driven focus, Ringbeck and Gross (2008) recognise that German sustainables are heavily subsidized by the state and new builds including the restoration of existing structures are tightly controlled to prevent additional carbon expansion. While within the Ikea business model such sustainable operations are fundamental, the rigid German expectations offer tangible potential for expanded standard operating procedures. Acquiescing to current Berlin governance, the hotel structure could become a pinnacle of renewable and sustainable construction, highlighted by energy saving systems and carbon footprint reductions.

(L)egislative

Germany offers a free form business environment which is summarily protective of intellectual rights in accordance with patent specifications. Encouraging of foreign direct investment (FDI), German regulation remains limited in scope pursuant to the Foreign Trade and Payments Act (Aubenwirtschaftsgesetz) (Invest in Germany, 2008). Such considerations are extended to both import and export trade and given the broad definition of German approved participants, integrated throughout a comprehensive global community. Approximate costs for real estate procurement as outlined by standard German expenses run between EUR 13,800 and 17,500 (Invest in Germany, 2008). Given the low level of government legislation and broad range of incentives and opportunities for foreign entrepreneurs, Berlin function under the German political structure would offer Ikea an exemplary zone of investment.

Berlin, the most visited city in Germany, boasts a well developed transport infrastructure, which, through traditional mechanisms, enables rapid transit throughout the city. There are currently over 2,555,439 arrivals in Germany on an annual basis of which 75% of travellers originate within the EU (“Berlin in Figures—2008,” 2008). Presented as the city centre, the Potzdamer Platz offers a unique shopping experience, catering to both pedestrian and automobile travel. Junctions for trains, trams, or taxis allow visitors to travel seamlessly through this region and witness the history and legacy of post WWII Germany. The city infrastructure is a planned and regulated community through which the division of Berlin’s geographic regions into 12 boroughs has simplified travel throughout the city. Regional travel to nearby Germanic cities is also readily accessible through the network of high speed trains and bus system. The following sections highlight in more detail the specific transportation methods throughout the Berlin territory.

Infrastructure and Transportation
Airports

Currently 75 different airlines operate flights to Berlin through three different airports (one under construction) from 112 destinations in 44 countries (“Transport Links,” 2008).

Tegel Airport (TXL) 5 km NW of City West and 8 km NW of City East

Schonefeld Airport (SXF): 22 km South of City West and 18 km South of City East

Tempelhof Airport (THF): 6km to the South from city centre (Flights will be re-routed from this airport to Schonefeld beginning November ’08 due to the much disputed closing of this facility (Logistics Today, 2008).

Berlin-Brandenburg International Airport (BBI): Currently Under Construction

Trains

Rapid transit to the city from other regions of Germany or exterior EU nations can be accomplished through a broad network of train operations. The central stations, Hauptbahnhof and Ostbahnof are approximately 6 hours from Amsterdam, 10 hours from London, and 9 hours from Paris (“Transport Links,” 2008). Interior train transport is also a popular method of navigation considering the network of stations and comprehensive passes which allow for smooth transitions. The trains travel amidst key points in the city via elevated railway (S-Bahn) and underground railway (U-Bahn.)

Automobile/Bus/Taxi

A network of roads and byways connects Berlin’s infrastructure allowing for personal vehicle transport or use of the public transportation systems. Busses and trams operate frequently along main boulevards and there is a network of over 7,000 taxis which allow for rapid transition between key city centres (“Transport Links,” 2008). The central area of Berlin has undergone a unique evolution in 2008, requiring automobiles functioning within a predetermined green zone (Umweltzone) to be emissions qualified and boast appropriate stickers (See Figure 3). Stickers can be obtained prior to travel or upon arrival, thereby enabling visitors to easily transition into the automotive cycle.

Identifying the underlying trends throughout the scope of typical Berlin travellers is a difficult yet achievable task given unique facets of this community. Numerically, Berlin enjoyed over 17,285,837 overnight stays in 2007, accommodating a broad range of travellers with 89,836 beds throughout 584 different hotels or accommodation establishments (“Berlin in Figures—2008,” 2008). This is a remarkable number of overnights, considering that in 1998, there were 48% less overnights than in 2007. In 2006, 85% of all overnight stays were in a hotel primarily defined by business/leisure accommodations (Amt Fur Statistik, 2007). Considering that Berlin retains a cultural heritage and yet well seeded business clientele, Ikea’s ideal demographics will fall within a middle-class, combined purpose organisation, and through long term metering additional groupings can be courted.

Based on market research, Germany currently ranks 47^th in terms of a global comparison of airfare and travel costs; however the overall infrastructure ranks 3^rd on the same global scale (WEF, 2008). Representative of a growing European trend, as previously discussed, the cost basis of airfare will effectively regulate such travel mechanisms, thereby adhering significance to the rail travel systems and connectivity which are boasted throughout Germany yet highlighted in Berlin. In terms of cultural resources, a substantial driving factor for German visitors, the nation ranks 3^rd on the World Economic Forum 2008 report; however in terms of natural resources, Germany currently ranks 39^th. This disparity evidences the import of cultural connectivity and highlights the underlying factor on which German tourism must continue to focus. Considering that Berlin currently boasts one of the most overarching cultural connections due to a substantive historical legacy and the longstanding disarray that war had left the city in until recent decades, the cultural import to future travellers in this city is of the utmost import.

The following examples of centralised competition are gleamed from the Frommer’s Germany 2008 travel guide and are highlighted for competing elements that may influence the design, layout, and functionality of the Ikea Hotel Berlin. Recognising that there are varied clientele who frequent these establishments, it is important that niche based marketing become a strategic effort as support for Ikea furniture remains a consumer driven business that is specifically based upon value structure and features.

Competition
High-End Competitors

The following two hotels are examples of higher end competitors who, leveraging a notorious brand and sustained luxury image, continue to offer high-end amenities and accommodations at a higher price range.

The Ritz Carlton

A 1920’s hotel with modern upgrades, this well known brand offers glamour and prestige at the Potsdamer Platz in Berlin. Featuring exclusivity, luxury, and in-hotel dining, the Ritz-Carlton is host to discerning business travellers and upper-class vacationers.

Westin Grand

Conceptualized and constructed during the Berlin Wall era, this hotel features Belle Epoque design coupled with contemporary styling. Catering to upscale business travellers or vacationers, this hotel remains a testament to upper-class Berlin style.

Middle to Low-End Competitors

Recognising that Ikea products are designed with affordability in mind, the following three hotels represent a middle to low end segmentation of the Berlin hotel market. Such hotels are founded on consistency and low cost and cater to a broad range of guests.

Ambassador Berlin

Located near to the Ku’Damm, this hotel is affordable and offers spacious yet accommodating rooms for families or budget wary vacationers. Host to groups of visitors, this hotel is oftentimes the centre for convention overnights.

Hotel Syler Hof Berlin

Built in 1966, this hotel boasts a lavish feel at a moderate price. Antiques and chandelier accents supplement classical style rooms, catering to business travellers and budgeted couples seeking a comfortable getaway.

Arco Hotel

Composite with a 1900’s Berlin apartment building, this hotel is considered affordable and functional, remaining obscured by much larger nearby competitors. Rooms are recognised as small, white or pale in colour, and clean while limited in terms of amenities or luxury. Most frequented by business travellers or local inhabitants, this hotel offers low end pricing with consistent services.

Competitive Analysis

From this list of direct competitors, the fundamentals of each hotel can be gradually excerpted and integrated into the Ikea concept. Considering the value position that Ikea Hotel Berlin seeks to implement, head to head competition with luxury magnates such as the Westin or Ritz-Carlton would not offer foreseeable benefit. However, recognising the merits of the Ambassador and the Syler Hof, consistency, and a cultural heritage are important variables when considering guest attractions in Berlin. Therefore, an amalgam of these two ideas will directly cater to a middle-lower class clientele, offering long term secondary sales potential after their Ikea stay has terminated. The Arco, while locally popular is presents a base level comparison for future benchmarking, enabling a middle ground operation to differentiate Ikea thorough a value/style positioning. Attracting middle-class travellers and business professionals, this hotel will direct efforts towards providing a unique value position due to the interactivity of Ikea products within the fundamentals of the accommodations.

Given the vast competitive scope of the Berlin tourism infrastructure, an innovative and unique Ikea hotel will be a challenging but feasible endeavour. The most positive data to demonstrate this claim evolves from the increased tourist participants over the past eight years, and predictive mechanisms idealise an even more successful coming decade. Ikea must first implement a value driven mentality through which furnishings represent a hotel figurehead yet maintain an obscured relationship with the interactive guest. If patrons are to envision such accoutrements in their domiciles or offices, they must be provided with an autonomous yet subtly guided experience which culminates in brand loyalty and long term purchase commitments. The underlying sales pitch given the nature of Berlin demographics (leisure and business travellers) cannot be an overtly driven mentality, but a somewhat subversive and intuitive approach which options sales over a much broader time frame. Given the cultural heritage which arises so richly from the city centre Potzdamer Platz, localisation in this area would offer a well situated community link, on which may encourage German residents as well as visitors to explore the downtown area.

Competitively, the sheer numbers of hotels throughout the Berlin area directly undermine any immediate installation and loyalty programme. Therefore, leveraging the longstanding branding of the Ikea namesake, it will be essential that all current clientele are directed towards the unique Berlin establishment. Given the public success in recent Oslo, Norway ‘sleep-over’ promotions, Ikea’s legacy for off-mainstream marketing will offer the perfect medium for driving traffic to this new establishment (Fouche, 2007). Establishing a middle-class tourist and business clientele through unique messaging segments will allow Ikea to further develop their product line and produce substantial opportunities for growth within the furnishing and miscellaneous supplement industry. This study has demonstrated the feasibility and the strategic approach for such an endeavour, and in spite of the dramatic departure from such standard sales techniques, Ikea’s radical positioning within an industry that thrives on competition and customer service will allow for market derived long-term success.

References

Amt Fur Statistik. “Berlin in Figures—2008.” Amt Fur Statistik. Accessed on 11/27/08 From: http://www.statistik-berlin-brandenburg.de/produkte/Faltblatt_Brochure/berlin_in_Zahlen08_engl.pdf.

Amt Fur Statistik. “Die Kleine Berlin—Statistik 2007.” Amt Fur Statistik. Accessed on 11/27/08 From: http://www.statistik-berlin-brandenburg.de/produkte/kleinestatistik/kBEst_m-engl.pdf.

“Annual Statistics—Berlin.” Berlin Tourismus Marketing GmbH. Accessed on 11/27/08 From: http://www.visitberlin.de/partnerforum/images/stories/download/e_pf_statistik_dezember_2007.pdf.

“Better Air For Berlin.” Berlin’s Senate Department For Health. Accessed on 11/27/08 From: http://www.visitberlin.de/english/berlin-infos/e_bi_umweltzone_broschuere.pdf.

Blanke, J; Chiesa, T. (2008) “The Travel and Tourism Competiveness Index 2008: Measuring Key Elements Driving the Sector’s Development.” In: Travel and Tourism Competitiveness Report. World Economic Forum, pp. 3-24. Accessed on 11/27/08 From: http://www.weforum.org/pdf/TTCR08/Chapter%201.1_The%20T&T%20Competitiveness%20Index%202008.pdf.

Bidlake, S. (2008) “Berlin Myth—Special Report: Germany.” Campaign, pp. 24-27.

Copeland, D. (2004) “Poor, Sexy Berlin: The failure of Urban Planning.” Reason, December. Accessed on 11/27/08 From: http://www.reason.com/news/show/36411.html.

Fouche, G. (2007) “Now You Can Sleep Over at Ikea.” News Limited, 27^th July. Accessed on 11/27/08 From: http://www.news.com.au/travel/printstory/0,25585,22149235-27977,00.html.

Gundel, S; Peters, H. (2008) “What Determines the Duration of Stay of Immigrants in Germany? Evidence From a Longitudinal Duration Analysis.” International Journal of Social Economics, Vol. 35, No. 11, pp. 769-782.

IKEA. (2008) “The IKEA Way.” IKEA. Accessed on 11/27/08 From: http://www.ikea.com/ms/en_GB/about_ikea_new/about/index.html.

IMF. (2008) “Germany—Selected Issues.” International Monetary Fund. Accessed on 11/27/08 From: http://www.imf.org/external/pubs/ft/scr/2008/cr0881.pdf.

Invest in Germany. (2008) “Energy University to Open in Berlin.” Invest in Germany, 11^th August. Accessed on 11/27/08 From: http://www.invest-in-germany.com/uploads/media/PR_080811_RER_Invest_in_Germany.pdf.

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One of the most important activates that any country has through its different cities as all people know is tourism. It is one of the most interesting and exciting type of activities and services used to provide individuals or certain amount of people travelling experiences all around the world. These experiences revolve around travelling across countries miles and miles, overseas and oceans to enjoy different places, with different cultures other than home. (Michigan State University, 2007)

After what happened in Egypt recently, 25th revolution, there has been a turning point in all the industries, production processes, and even services. Unfortunately, when Egypt was about to become one of the most successful developing countries in industries, production, providing services, and even having special positions in the stock markets in comparison to another countries all around the world, suddenly, all this has turned upside down. Production has been stopped, services became poor in satisfaction, and Egypt became out of stock market ranking. The service that was highly affected by that revolution was the Tourism. Tourists who were in Egypt throughout the revolution, travelled back to their homelands as a result of fear of what was happening from serious political events in Egypt. This was also as a result of the bad Public Relations campaign that was made on Egypt at that time through the media and press. For that reason, a new Public Relations campaign must be developed and settled in order to give to Egypts Tourism life back as before.

Egypt has been constantly a country of tourism where Europeans use to spend their vacation there and observe its archeological finding and its antiques. The tourists there are visiting the most attractive places such as Sharm -el-Sheikh, Hurghada, Safaga and others. Besides that, Egypt is also well-known for its marvelous environmental tourism on top of other varieties such as Safari, consultations and sports. Egypt was acknowledged all over the history as a target or what the tourists are aiming for since it was visited throughout the primeval era, the tourists feel affection for visiting enormous and immeasurable places in Egypt, yet it sustained the reflection throughout the middle and modern history. On the other hand, the innovation of the Paranoiac ancient artifacts which had been extended long time ago has added a unique appeal to Egypt and also its inimitable religious and cultural testimonials or tombstones which are very precious to visit and grab the attention of the tourists to come back and visit those unique places. As for the educational and archaeological tourism, Egypt has many different types of broader fragments that the tourists can visit across the world with its geographical location and its moderate atmosphere all the year round, together with its horizontal measureless coastlines, and beaches with its exclusive reserves of coral reefs which truly present Egypt with rewards of a competitive edging.

Situation Analysis:

Egypts Tourism Crisis after 25th Revolution:

As Egypts national profit is based on its strong historical stories that revolved around its different cities. Tourism has been one of the most important factors of letting foreign currencies as well as people with different nationalities enter Egypt. As a result of the revolution, an international financial crisis had arisen between Egypt and different nations. Most of the European tourists who come and visit Egypt recently, their rate has decreased in a theatrical way. After the peak that was in presence all around Egypt, many of the reservations in terms of airplane seats, hotel bookings, and business meetings have been decreased in their amounts. (Mwathe, 2011)

In order to make a successful Tourism Media Public Relations campaign, this situational analysis must be put in consideration in order to know what type of message will be sent to the audiences across the main topic Tourism and its improvements.

-Women before and after the 25th revolution, before the revolution the Egyptian people usually believe that women are inferior to men, The Egyptian women were used to avoid contact with men who were not in their family connections, while after the 25th revolution, women have their rights; they learnt how to say their opinions and views, also the womens strong contribution in Egypts protests against the Mubarak supervisions or regimes has a positive coverage to the political equality that have took place in the Tahrer Square ,many women were marching to take their rights and civil liberties, yet this occurrence highlighted the fundamental consequences of defending the womens rights in Egypt and may hold back the enduring developments towards civilizing the womens political rights in the country.

-In addition after the revolution, all people were connected together hand in hand in order to protect and clean their country. Egyptian people were and still calling everyone to sanitary Egypt by those things first to buy local products, second to stop shouting and learn to listen to each other, third to keep the streets clean by painting them, and last but not least calling the tourists to come back and visit our precious country which have lots of marvelous places to visit. Moreover, Muslims and Christians were one soul at the time of the revolution fighting to take their rights and now they are much connected to each other and finding ways to protect their mosques and churches as Egypt has been well familiar with its religion, values and principles.

Key Messages:

There are different groups that messages need to be sent to; these include groups that have direct influence on tourism (publics)such as the media, the tourists and tourism companies, and others that have indirect influence (public) such as colleges and college students. Messages used should be appropriate, meaningful, memorable and understandable by different targeted groups (Yeomanz & Tench, 2006). The following is an example of the messages that can be used with different groups of the publics;

First, the media should be inspired to show the positive side of the revolution instead of the negative one. For example, showing the streets that have been cleaned after the revolution and how the Egyptians are getting more civilized and are caring more about their country. The media is normally looking for a good story that attracts people; however, sometimes the messages communicated give poor image of the country. Therefore, the media should be send messages about the economic and social effect of losing tourism for the whole Egyptian society and also for Egypts reputation and image all-over the world.

Second, the tourists probably play the major role; because they are the ones who decided whether to visit Egypt or not. The media may be helpful at this time; it can show foreigners a positive image for the Egyptian treatment to the tourists. Tourists need to see how the Egyptians are getting more respectful to them and how they are willing to welcome tourists in their country. Moreover, tourists should be shown the positive side which is the clean streets, the planted trees and so on.

Third, the legal bodies should be encouraged to reform new policies and regulations that make the tourists feel safe when visiting Egypt. For example, according to Mr.Maher Moussa, an Egyptian tour guide; he stated that after the revolution when there were almost no policemen; the sales people at the Egyptian bazars where treating the tourists very bad and they were pulling them from their shirts in order to purchase products. Tourists at that time did not find anyone to help them; apparently they did not feel safe at all. Therefore, the policymakers should be told these stories and should be encouraged to return the tourism safe as it was before the revolution.

Forth, the workers in the field of tourism need to be sent a message stressing on the fact that tourism is crucial for them and for maintaining or even improving their living standards. They need to be encouraged to develop and improve the way they treat tourists and also need to be encouraged to remain committed to their work and do not look for other options such as switching their careers or immigrating. Sales persons should be treated the ethical behavior of dealing with tourists.

The following table gives a brief summary for the messages to be communicated, to which groups and what are the success indicators;

Target Group Messages Communicated Success Indicators

The Media You can play a vital role in improving the current situation of tourism in Egypt; encourage, inspire and attract everyone working in the tourism sector to work harder and motivate tourists to come to our country

Increase in the rate of trips

Increase rate of security

Reduced terrorism

Increased level of awareness about the importance of tourism

The Tourists You can now watch the place where the whole Egyptians have met at once to ask for their rights

In Egypt you can see monuments that are never seen anywhere else in the world.

Your safety is our first priority; we will thrive to keep you safe.

Egypt is now welcoming you more than ever before

Legal Bodies Tourists represent a major part of Egypts future; we need to keep them secure

we need to implement strict laws and rules that make tourists feel more safe in Egypt than any other part of the world

Workers in the Field of Tourism We should prove to the whole world that all Egyptian never give up, never leave their work because of fear.

do what you love to do and make a difference Steve Jobs

Think of ways to develop your career and improve your work situation in the tourism industry.

Businessmen who Own Tourism Companies your role is vital in improving the current situation in Egypt

The future is bright for tourism in Egypt. But, we need to prove this to the whole world.

Schools and Universities you need to implement new teaching methods that teach students the ethics of dealing with tourists.

The Medias Goals and Objectives towards Tourism after 25th Revolution:

Any campaign that is in the building stages must set goals and objectives in order to know what problem they are trying to solve, what message they are trying to send to audiences and what communication and media tools they will be able to use.

According to Egypts tourism case, Medias goals and objectives should be settled in a way that will help to improve the tourism as an industry, and overcome the crisis after what happened in 25th of January. These goals and objectives will help marketers in choosing media tools and deciding what to put in them. On of the most important goal and objective that the media must focus on according to tourism is that to in increase the amount of tourists coming to Egypt again the goal through the objective which is increasing the flights amounts and hotel bookings.

Targeted Audiences:

The whole Public Relations campaign beside the media era is targeting mainly foreigners who are located outside Egypt. They are mainly Europeans, and Asians. As a result of that, this media campaign must build up the appropriate communications tools with the key message of the campaign, and build them up in the correct way to reach the targeted publics Europeans and Asians – and let them convey the message and understand it as it should be understood.

Media and Communication Tools:

Tourism Media Campaign Communication Tools:

Communication tools are elements and objects that are used to convey the message from the campaign to the targeted audiences. They usually are the main factors in the media campaign that will help in achieving the goals and the objectives of the campaign. The message could be conveyed through articles, radio, television, World Wide Web, event sponsorship, or even a whole collection of press releases.

According the tourism media campaign, the main media tools that will be used are television, World Wide Web, and event sponsoring.

Television:

Through Television media tool used for a tourism campaign, videos should be directed and produced as a recorded videos on tourism places in Egypt, for instance, Luxor and Aswan, the pyramids, Sharm el Sheikh resorts, and so forth, that will attract tourists to do not miss what history and civilization Egypt has made. In addition, to tourism areas all around Egypt in the videos, celebrity endorsement could be used.

Through using celebrities that are known locally and internationally, the message transmitted will be more trusted and tourists will be attracted to come and see Egypts history, visit every museum, every temple, and so forth. Also, marketers could stress on tourists emotional aspects in which their feelings gets connected which Egypt as a country, and bear to them in mind that these emotions will be satisfied when they visit Egypt.

The Television tool began with a small video that was made right after the 25th revolution, From Egypt with Love (Boyd, 2011)

It was encouraging Egyptian people to treat tourists in a friendly way and in the same time, the message is transmitted to tourists that the Egyptians are kind and welcoming to anyone who come and visit the country – (refer to the Videos Screenshot in Appendix 3). (Boyd, 2011)

World Wide Web:

The internet and World Wide Web now plays an important role in the media sector, as it is a spider web that connects the whole world and makes it as a one united island. Internet could be used in tourism media campaign through making groups on Face book, twitter and all social networks that anyone could join them. They could include information about how strongly the tourism is going to be after the 25th revolution and what good changes have been made to the tourism in Egypt. Also, websites could be designed for information about every tourism place that is recommended for visiting in Egypt including history, pictures, and even videos to let tourists get attracted and become emotionally attached with Egypt. Also, this will increase the needs to the foreigners to come and enjoy what they have seen in real-life. Taking Face book as an example to World Wide Web Media, there are one of the campaigns that already started straight after the revolution containing two groups about surviving and getting the life back to the tourism in Egypt. These two groups have made a huge impact on tourists and foreigners Facebook users all around the world hoping that it will improve Egypts tourism image internationally. (Refer to one of the groups Profile Picture in Appendix 3). (Ling, 2011)

Event Sponsoring:

Sponsorship generates a massive chance for any type of companies in which it helps to widen the good reputation through viewing companys picture, view, and everything that makes the company unique through reinforcements of certain events that will increase the attention of the targeted audience. (Khera Communications, Inc., 2011)

This event sponsorship could be an effective way to communicate with tourists all around the world, especially when Egyptian companies sponsor international events or vice versa. Through doing these kinds of sponsorships, foreigners will know and observe that despite all the series of events that happened in Egypt is still and trying to be in a high position in the economy of the world.

In my opinion, for getting back tourism to its normal cycle in Egypt, Egyptian companies must sponsor international events in order to stay connected with international audience and attract them to the country to be interested in the long-run to come and visit Egypt. Also, for international companies Egypt must make life easier to them in order to be easily located in Egypt and this will help them sponsor Egyptian events, for instance, sports events, charity events, that will build trust between Egypt and different Nations.

Through following these steps in building a media public relations campaign to the tourism in Egypt, it will help in an enormous way to improve Egypts image to the outside world, not just view the dark side of the image. Furthermore, the message delivered from the country Egypt to the targeted audiences foreigners will be sent and understood effectively Communication Process Appendix 3 and there will be no noise nor distraction in the messages process/ Egypt was always known with its loyalty, loving, kindness and so forth to its visitors and even its citizens, and this image must be the same till end of life time, And as the video said through one of the video campaigns, Egypt We Love You! (Tench & Yeomans, 2009)

Barriers to Communication of the Message:

The physical barrier is too much related to the distance between the parties. For example, face-to-face communication may be too much needed in some situations to make sure that the receiver understood the message sent.

Recommendation; always ask for feedback from the receiver in order to make sure that the message has been understood.

Language differences are always very critical for delivering the messages; people from different countries may find difficult to understand the language or a certain message or may even perceive the messages in different ways.

Recommendation; translate the messages to as many languages as possible.

Psychological barriers may also be to some extent significant; peoples emotions are very important to be considered when delivering messages. For example, when asking workers to keep working, they may feel that the media have no idea about how they are suffering financially from being unable to gain money and satisfy their needs.

Recommendation; the messages should show clear awareness of the different situations and giving emotional support to every target group.

Barriers that arise from conflict of interest between the crisis management campaign and the different targeted groups. For example, the campaign may be willing to encourage the businessmen who operate in the tourism sector to continue operation. While, at the same time the businessmen cannot continue because they are losing money and adding costs on themselves.

-Indentifying the Publics:

Egypt was known and will always remain as one of the amazing countries in the world due to its outstanding historical pyramids, Luxor and Aswan. Nothing will ever affect Egypts beauty in the eyes of the world, therefore I encourage and persuade all Italians, British, and Russians to come and visit Egypt after the breathtaking revolution which was accomplished by the Egyptians on January 25th in the liberation Square that has now become a touristic area which people from all over the world speak about and are so eager to visit it and to feel the pain and happiness which the Egyptian youth have created in Egypt.

Tourist Plans Campaign

The sense of To act “the sense of the Egyptians, unenthusiastic and construct a dwell taken at the first attainment of the knowledge of the nation of battle by the full of meaning, the kingdom of the war with a broad-start is in that reimbursement of periegesis underscore the target of the seven recognized before the spectators. Mingling with the crowd to councils, factories, session of the doctrine of print advertising and out of the material Broadcasting / advertising will be the Customer, or gain the overall effectively blow. To be infected with the war On both sides, it shall be done within the degrees of the first part I will strengthen the services of a war which is rotating with an although, according to an exact and in the manner to the effect of all the target Promotional Views. (Weber, 2010)

The perigees will be underpinned the wages of the knowledge of such activities six:

1. Known to ‘a better Tourist Lives

This was the foundation of the first phase to the knowledge of the identity of perigees war. Will continue using the same expedition, I extended the look and feel standardize and of all the relevant under the expedition might have recognized this belonging to the different labour. But just as changes to submit to an identity for its ability to upgrade the answer to the principle of the hearers of the draw.

2. With the cooperation of the allies

Fabios, the war of the will hinge on implementation of the foundation of the fellowship of the various stakeholders the efficient meals. And here, the object of responsibility of coordinating the land of Egypt, has hired manager w perigees with the rest of the allies this one of the sectors:

Private sector of my companions: depends on type of activity, Telecom sectors can be different so that, juridical, etc. It is of interest should be put in each of efficient contact is at hand. This elite cooperate with the associations to take part to fit the protector of a co-addition to the expense of the proofs have been early.

3. Communications software

To raise the Profile of the war and acquire the advice and the support of the various stakeholders, while the entire marketing communications program designed for, it will be implemented. Any one is, the needy, Target Audience marketing communications best a piece of the instruments of which is extended to the ears.

4. The communication of the Public Relations Program

Marker between different kinds of communications tools will be got ready, Public Relations are the most important of its ability to inject credibility in the war’s of operation. Further they can adnotacione Public Relations of the singular degree the State had different segments of the tenement of the city. For if the history of the place Published in Print Media, I will stretch lying in around about.

5. The knowledge of expeditions Plan

Designs of all wars is a quality know that to be done is to take care in and reap results fine. Things are established, the phases of Planning, for the following key steps:

The Project web perigees shall manage the public to conduct attitudinal research to take the perceptions of conscience and to the views of the Egyptians, and travellers will perigees. The research by the art of effectively expose the child is crucial gauge degrees of conscience to the sector of State.

Or Event elite, ecumenical, it is to eat of awareness have been done research results. This state of affairs so all the troops the will of stakeholders perigees page, perigees projects, a Government of Egypt, arts institutes, and of the media.

From the committee I will be the keeper of the knowledge of perigees to appoint a council and in Latin implementation of the knowledge of triumph in war.

6. Develop the communication of the plans of the campaign tools

Print material

the consciousness that the target the seven petitions of the ground will be supported by disseminating print customized Promotional material for a war, and the items. And it is its distribution of Posters, Flyers, brochures and through the schools of the offices of the Central After the Egyptian, Social Security Corporation, leaves and inserts. Further Promotional material for school as mugs with sackcloth, Bumper Stickers, etc. it shall be repaid. Matter and CDs to be stable as the value of the Promotional and a large (Alaya, 2004)

Strategy:

Tourism is considered to be a very crucial activity for the whole Egyptian population; it accounts for 11% of the total Egyptian GDP and employs more than 2 million Egyptians (Feuilherade, 2011). According to the previous Vice President, Omar Soliman; during the days of the 25th January revolution, Egypt has lost around 1 billion dollars in tourism.

For any campaign to be successful it needs to have clear guidelines and strategies to follow. The main strategy for overcoming the crisis of Tourism that occurred in Egypt after the revolution is probably encouraging integrated efforts between different population groups for the sake of improving the tourism conditions in Egypt. These conditions include, the treatment of tourists, the safety and security, services offered and so on. The integration of efforts is not only including the publics; who are directly affected by the tourism industry. But, it should also include the whole public society because apparently everyone in the Egyptian society is affected by tourism either directly or indirectly.

Appendix 1:

(Women before and after the 25th revolution)

(Indentifying the public)

1. (n.d.). In Tourism . Retrieved April 2, 2011, from http://www2.sis.gov.eg/En/Tourism/

2. (n.d.). In Tourism of Egypt. Retrieved April 2, 2011, from http://www.chinadaily.com.cn/hellochina/egyptambassador09/2009-08/24/content_8608649.htm

3. (n.d.). In Egypt 25th January revolution – tourism revival. Retrieved April 2, 2011, from http://www.2travel2.nl/English/egypt-25th-january-revolution-tourism-revival.html

4. (n.d.). In Egypt Update: Womens Rights After The Revolution. Retrieved April 2, 2011, from http://sparksf.wordpress.com/2011/03/17/egypt-update-womens-rights-after-the-revolution/

5. Tench, R., & Yeomans, L. (2009). Exploring Public Relations (Second ed., pp. 185-186). Edinbrugh, AL: Pearson.

Appendix 2:

1. How to plan Tourism Campaign

2. Strategy

1. Weber, L. (2010). Plan To Fund Tourism Campaign Draws Critics (IPR ed., pp. 1-3). Retrieved April 5, 2011, from http://ipr.interlochen.org/ipr-news-features/episode/10427

2. Feuilherade, P. (2011, February 12). Tourism Crisis as Foreign Visitors Desert Egypt. Retrieved April 3, 2011, from http://www.suite101.com/content/tourism-crisis-as-foreign-visitors-desert-egypt-a342840

3. Alaya, A. (2004). Tourism campaign aims to help ( ed.). , AL: Article The Star-Ledger. Retrieved April 5, 2011, from http://www.hackensackriverkeeper.org/Articles.php?ID=43

Appendix 3:

1. Key Messages

2. Communication Barriers

Al-Arabia. (2011, March 31). Tahrir Square presented as historic site worth visiting. Retrieved April 3, 2011, from Al-Arabia : http://www.alarabiya.net/articles/2011/03/31/143675.html

Article Base. (2009, February 3). 12 Barriers to Effective Communication-Beware of These Relationship Killers. Retrieved April 3, 2011, from www.articlebase.com

Yeomanz, L., & Tench, R. (2006). Exploring Public Relations. Pearson.

Chapter Five: Conclusion and Recommendations

Conclusion

The objective of this paper was to explore the different elements of a country’s identity that builds a country’s image.

Each country has unique elements which builds its image. It is seen that the elements that builds the identity of a country plays an important role in framing the general image of the destination. With regards to Kotler’s categories of country images, it was found that Mauritius fits in the category of positive image which is countries granted with natural resources, diverse culture and gastronomy, political stability that makes up its beauty. As such surrounded by the sea, Mauritius has been gifted with inheritance beauty with its wide range of breath-taking natural scenery that makes it in a position to offer a variety of inland and sea activities to cater for the needs of the market. Additionally it was found that the multi ethnic diversity that lives in peace and harmony and sharing their culture is something unique to the image of Mauritius. It also enjoys a sound political environment Image has an important role for so as to differentiate a destination in this highly competitive market (Yilmaz et al., 2009).

The figure below has been formulated by the current author. It shows the relation between country identity and country image. It depicts the unique elements that build the image of Mauritius under the country main factors section. Those main factors establish the promotion strategy of Mauritius.

Marketing Promotional Strategies

Figure 11: Mauritius Country’s Image

Formulated by the current author into the context of Mauritius

It is to be noted that the elements of country identity builds its image and if not managed properly it can hamper its image. Notably, challenges to the image of Mauritius is the proliferation of crime activities, prostitution, drug dealing. However, it is argued that irrespective of the prevailing image, tourists keep arriving in Mauritius. By far campaigns aiming to prove that Mauritius is still a safe place to be and that such case is an exception and any country can be victim of has been successful. Moreover, country representatives established in our key markets have been doing a great job in re building the image of Mauritius by focussing on its key strengths. Moreover, this study has also found that in light of the global crisis; priorities of people have changed making long haul travel less preferred leading to a decrease in arrival from our major markets. As such to offset the arrivals from Europe, new markets (Asian countries mainly) have been sought. However, even if it diversifies into new markets, Mauritius must continue to be visible in the European countries.

It has been found that the geographical factors of a destination is somewhat an imaginary influences that place marketers should deal in proposing travelers with other valuable offers that will compensate the detriments that cannot be altered. Actually, a destination cannot be re-located from its actual geographical location. Nevertheless, promoters need to offer exciting packages that will make travelers feel distance is not a big deal. For example, despite of the infinity distance and exorbitant fees, nowadays people are committed to travel to space to experience amazing features. Hence, promoters need to propose products or services that are not accessible at competitor’s destinations. In the context of Mauritius, it can be concluded that indeed it possesses unique characteristics that enable it to cater for diverse markets.

In this study it has The image of Mauritius is a significant factor on tourists’ decision-making. In the past, the image of Mauritius was entirely focuses around the honeymoons segment. The MTPA has since implemented strategies and campaigns to broaden this image to include many segments which are still unknown by most tourists: family, sports, shopping. This image, which varies from market to market, is stressed upon during fairs, workshops, events, and marketing campaigns to convince potential tourists that the destination meets the requirements they expect from a holiday destination. As Mauritius has a multi-faceted image, its tourism industry can be promoted in different effective ways even in a single market.

With regards to promotional activities, it can be stated that the MTPA along with major stakeholders that makes up our tourism sector possess good understanding on promotion practices. In cases where the image of Mauritius was at stake, they have used the right promotional tool (advertising, personal selling, sales promotion) to show that Mauritius is a safe place. Moreover our strategic offices in key markets have been constantly supplying the right information on Mauritius.

The main purpose of a brand is to communicate what the destination has to offer that is different and unique. The brand Mauritius is being developed using its unique USP and campaign has proved to be successful. MTPA has been developing and designing the brand of Mauritius with the right strategy so as to effectively communicate its brand promise and brand essence across the world.

The major findings of this study can be summarised as follows:

The image of Mauritius has been developed largely from its natural elements; history, culture, geographical factors, its people. Such elements can neither be manipulated nor altered easily. However things such regulations to enter the country, information sources (media) can be managed and should be used to improve the image of Mauritius. The research findings have concluded that policies and regulations to enter Mauritius are quite simple. Thus it does not discourage travellers to come to Mauritius.
Irrespective of the established assumptions, promotion strategies should inevitably reflect the real situation of the destination and not paint abstract pictures to meet false expectations of tourists.
The image of a destination significantly influences consumer’s evaluation. Therefore, the prevailing image decides the actual promotion strategy that will suit the target market.
For tourism promotion to be effective, it should be supplemented by trade and investments projects. Those projects shall contribute in paving way for a favourable environment mainly by enhancing the current infrastructures and also introducing recent amenities which are essential in today’s tourism.

.

In the attempt to create a positive image for Mauritius, the MTPA along with other bodies that builds the tourism sector has made considerable efforts that have succeeded in re building its image in light of major crisis and attracting as much travellers.

Recommendations:

From the study and analysis, several spots have been identified where improvements could be brought in order to enhance the image of Mauritius and hence maximize tourist’s arrivals.

The recommendations are dedicated to the future perspectives of the tourism industry.

Government needs to invest in building the event and conference sector

We have the basics to start events and conference business in Mauritius: few venues, event companies, and good logistics. However, Mauritius is note widely reputed to be a destination of events and conferences. Infrastructures to support events and conferences are inadequate. Instead of developing huge shopping complexes like bagatelle mall of Mauritius, Cascavelle, Mont Choisy, the government needs to encourage investors to use these plots of land to build venues like the SVICC. In other countries the conference centers are much bigger than the SVICC, they offer accommodation as well. As soon as the existing infrastructures (enlargement of road network, proper lighting and sewage facilities) are in place, the demand for events will automatically arise. Moreover, our unique blend of cultures should be promoted more massively. Incorporate cultural tourism in our core tourism product.

Regulate developments

As the tourism industry continues to prove successful, people recognize the advantage of investing in the sector. As a result hotel, tourist residences, guest house, restaurants are growing like mushrooms. Identify areas that are already saturated. For example ile aux cerf, there is already enough pleasure crafts operators there. Therefore, no more permits should be given to those saturated spots. A decrease in building permits is an action that needs to be considered by the government because nowadays less and less green spaces are available for tourists who prefer to travel to a destination far away from their stressful lives of buildings and pollution.

Rebuilding of the MTPA website

The main body aiming at promoting tourism is the MTPA. Since we have tourists from across the world who shows interest in Mauritius. It is worthwhile to consider in re building the MTPA website in different languages. This will ease access to information for everyone. Moreover an online system should be set up whereby any queries posted should be replied back in less than three hours. This will show our professionalism and dedication to be the best. Moreover the MTPA website should be a one stop shop providing information on all aspects of Mauritius (hotels and any other tourist accommodations, nightlife, climate, flight information, etc).

Celebrity Marketing

To increase tourist arrivals in order to reach its target of 2 million tourist’s celebrity marketing could be used. Certainly it will cost much to employ those celebrities but the returns on such an investment will be much higher. Those celebrities could be from Bollywood, Hollywood, and the world of sports. Those people will be regarded as trend setters for the higher segments and they position Mauritius as an aspirational / desirable holiday destination.

Launching of a travel newspaper

A travel newspaper/magazine providing the calendar of activities for the year should be published at least two times during a year. The magazine should be designed using our unique elements to show our uniqueness and it should be distributed to our strategic offices in our target markets. Those people working in our strategic offices should be encouraged to distribute those magazines to travel intermediaries across the world. In this way potential travelers will have a visual description of Mauritius and what they might be losing if they decide not to come to Mauritius.

Branding Mauritius

Branding plays an important role, as with all tourism destinations, as it is crucial to present a brand that will attract people. All campaigns, whether simply marketing campaigns or online/offline sales campaigns, need to include branding elements to attract potential tourists. The brand identity helps to establish a relationship between the destination and the customer, and can help to convince the latter to choose the destination. Without this element of branding, it would otherwise be hard to convince potential tourists to choose Mauritius over competing destinations.

To overcome these issues, Qantas must modify aircraft sizes and engines to become more fuel efficient and reduce CO2 emissions over coming years. During the next two years, Qantas should plan to reduce industrial conflict by reorganizing the communication system and its organizational structure, making it more flexible and adaptive, thus empowering employees with project management responsibilities. Grievance procedures must be improved with a formal process to resolve work conflicts. Qantas must maintain and increase its corporate customer market share in order to remain profitable and successful.

Qantas has undertaken significant changes over the last decade to cope with internal and external factors such as the terrorist attacks on September 11, 2001 which effectively reduced the demand for international travel. Qantas initially reduced its international travel flying capacity by 11%.

The factors that had caused Qantas to change were that Qantas had to become:

aˆ? A more competitive, efficient and profitable business with less competition in the domestic markets.

aˆ?Qantas had to pay taxes and levies paid by other business in Australia

aˆ? Qantas had to make an increased profit and pay a dividend to its shareholders which increased over the years of management.

The main factors, which caused Qantas to change was that, the business was under government ownership until 1995, with a classical/scientific management structure

Over the next 5 years Qantas aims to hedge fuel prices and use more efficient aircraft to limit further fuel costs improve employee/employer relationships by reducing the number of employment relations disputes and retain corporate market share by enhancing facilities and lounges to appeal to corporate travellers.

IDENTIFYING THE VISION STATEMENT

The Qantas story began in March 1919, when former Australian Flying Corps officers W Hudson Fysh and Paul McGinness heard of a ?10,000 ($20,000) prize offered by the Federal Government for the first Australians to fly from England to Australia within 30 days.

McGinness travelled to Yanko in western New South Wales to see Sir Samuel McCaughey to ask if he would fund their entry in the race. In Palestine the two young lieutenants had flown a Bristol fighter presented to No.1 Squadron by the millionaire industrialist. Sir Samuel agreed to finance their venture, but died before a suitable aircraft was found.

The Qantas story is inextricably linked with the development of civil aviation in Australia. It begins with fragile biplanes carrying one or two passengers in open cockpits and progresses to the new Airbus A380s flying some 450 people half way around the world in a day.

A few determined individuals overcame formidable obstacles to establish the Queensland and Northern Territory Aerial Services Ltd (QANTAS). Supported by committed staff and loyal customers, the airline persevered through war and peace to serve the nation and build an enterprise.

Today, Qantas is widely regarded as the world’s leading long distance airline and one of the strongest brands in Australia. Qantas continues to provide outstanding service to its customers and is at the forefront of the international civil aviation industry.

The future holds many challenges for Qantas – maintaining safe operations and world class product standards while building a viable and competitive position long term for the airline.As Qantas doesn’t have any formal mission statement it pays more importance only on its vision.

The Qantas Group’s long term vision is to operate the world’s best premium airline, Qantas, and the world’s best low fares carrier, Jetstar.

To achieve this vision, the Group is focused on five key elements:

Safety is first priority– A firm commitment to world’s best safety practices and reporting

Right aircraft, right routes –Fleet renewal delivering one of the world’s most effective fleets flying on an optimal route network

Customer service excellence– Consistent customer service excellence as the basis of the business

Operational efficiency– Achieving simplicity and further productivity across the business

Two strong complementary brands –Qantas and Jetstar as the best premium and low fares brands respectively

The Kangaroo Symbol

The original Kangaroo symbol appearing on Qantas aircraft was adapted from the Australian one penny coin. The winged kangaroo symbol was created by Sydney designer Gert Sellheim, and first appeared in January 1947The Flying Kangaroo was later placed in a circle in 1974.

In June 1984 Qantas unveiled an updated logo conceived by Tony Lunn of the Lunn Design Group, Sydney. The Flying Kangaroo lost its wings once again and was refined to a more slender, stylised presentation.

PEST ANALYSIS

The PEST analysis stands for “Political, Economic, Social and Technological” factors that are needed to be analyzed from the industry’s external environment. It is important to cover this to further understand the condition of the airline industry in Australia.

Political factors

The liberal policy environment has also favoured new entrants.

While the domestic airline industry is largely deregulated, Australia’s airline industry remains quite regulated at the commonwealth level.

Australia’s international aviation policy has been ‘multiple designation’

The industry deregulation in 1990s has given way to a more restrained form competition between Qantas and Virgin.

One of the political issues that concern the airline industry is the effects deregulation. Deregulation was based on the contestable market theory ( 1982) which suggested that governments should seek to promote contests for markets, even those where large firm size and limited competitors existed. Regulation was believed to encourage competition based on service quality rather than price, limit operational flexibility, and create no incentives for improving efficiency and productivity. However, it has been argued that deregulation has shifted competition from service to price (1998). On the other hand, among the airline companies around the world, one significant political issue taking place is the emergence of global alliances.

Economic factors

The past events like volcano eruption and SARS has affected flight security in the eyes of the customer.

Every environmental issue including the impact of increase of fuel , which either affects basic costs of flights or affects the likeability of customers to book a flight.

Some industry participants have argued that financially distressed carriers have cut prices in an effort to raise short-term cash, depressing market prices below efficient levels and threatening the financial security of healthy carriers. Another economic concern is the fact that the airline economy of the US is in a huge upset after the September 11 attack. Some of the companies declared bankruptcy while others are still struggling to survive (2003). . There is substantial evidence that entry, particularly by low-cost, low-fare airlines, has a substantial effect in constraining fare levels in markets served by the new carriers.

Social factors

The labour market is tight ,especially in skilled fields requiring more motivation and knowledge

The demand for personnel in distant countries will increase the need for foreign-language training.

Consumers are more demanding

Today, consumers are more demanding especially in terms of service quality. Fortunately, the airline industry can be considered as the pioneer of customer relationship management as they are the first sector to introduce the frequent-flyers program to increase the loyalty of customers (2002). Airline industry also needs very skilled people as their workforce.

Technological factors

The growth of the information industries is creating a knowledge-dependent global society and information will be the primary commodity of more and more such industries

New and larger airplane designs with remote access technology would enable airline companies to achieve better economies of scale.

Technological factors include head to head competition in the technological innovations in the industry. Larger planes or aircrafts with remote access technology could provide significant cost savings by allowing the engineers, who were responsible for maintaining the aircraft, to access essential information on the company’s systems from wherever they were in the world, using remote web access.

INDUSTRY STRUCTURE

The Airline is one of the major industries in the world today and is majorly affected by Michael Porter’s “Five Forces” model. The following write up conducts an analysis on how the model affects the airline industry today.

Threat of New Entrants.

One of the forces that Porter describes is Entry into the industry. In the world today, the airline industry is so saturated that there is hardly space for a newcomer even to squeeze its way in. The biggest for this is the cost of entry. The airline industry is one of the most expensive industries, due to the cost of buying and leasing aircrafts, safety and security measures, customer service and manpower. Another major barrier to entry is the brand name of existing airlines and it is really difficult to lure customers out of their existing brands. On the other hand, a newcomer could enter this saturated market easier with a completely new concept and technology.

Bargaining Power of Suppliers.

The airline supply business is mainly dominated by Boeing and Airbus. For this reason, there isn’t a lot of cutthroat competition among suppliers. Also, the likelihood of a supplier integrating vertically isn’t very likely. In other words, we probably won’t see suppliers starting to offer flight service on top of building airlines.

3 Bargaining Power of Buyers.

The bargaining power of buyers in the airline industry is quite low. Obviously, there are high costs involved with switching airplanes, but also take a look at the ability to compete on service. Is the seat in one airline more comfortable than another? Probably not unless we are analyzing a luxury liner like the Concord Jet.

4 Availability of Substitutes.

What is the likelihood that someone will drive or take a train to his or her destination? For regional airlines, the threat might be a little higher than international carriers. When determining this we consider time, money, personal preference and convenience in the air travel industry.

Competitive Rivalry.

Highly competitive industries generally earn low returns because the cost of competition is high. This can spell disaster when times get tough in the economy. In case of the Airline industry, this is the most important force today, especially since the market is completely saturated. There are more service providers than needed in both local as well as international markets. The various airlines are competing for the same customer, which also results in strengthening the buyer power, another of Porter’s forces. Moreover, a lot of airlines such as Qantas Airways and Emirates have a brand name which they have to defend so they compete in doing so. The airlines are continually competing against each other in terms of prices, technology, in-flight entertainment, customer services and many more areas.

SWOT ANALYSIS
QANTAS STRENGTH
How the Qantas Group responds
Improving Margins

As economic showing a significant progress, Qantas margins are also improving.

Diversified Business

Qantas range of subsidiary business operates in different sector but all of them supporting airlines industry’s activity, such as catering, baggage handling and engineer. This also helped them to control supplier and aircraft maintenance cost.

Oneworld Alliance

Oneworld Alliance is a management company founded by Qantas, American Airlines, British Airways, Canadian Airlines and Cathay Pacific. Purpose of this centralized management company is to helping each other with nonaˆ?core business activity such as marketing, engineering/maintenance, and online ticketing to reduce cost thus give the company allowance to cut ticket price. Members of the alliance are also possible to transfer passenger for connecting flight.

Efficient Use of Resources

Qantas have a home ground advantage as Australia national airlines. Its subsidiary company also provide great resources for Qantas core business.

QUANTAS WEAKNESS
How the Qantas Group responds
Reliability Concerns

Qantas has been involved to some incident with some of their aircrafts in 2008/09. Although nothing ended in major accident, its affected company’s safety image.

Problems with the staff

A staff problem action, often referred to as a wildcat strike, is a strike action taken by workers without the authorization of their trade union officials. It has been hit with worst strike in the company history in 2009, caused a major delay that also affected other flights.

QANTAS OPPORTUNITY
How the Qantas Group responds
Maintaining the highest
standards of safety

– Commitment to safety as first priority, underpinned by industry-leading policies, systems and training

Adapting business strategy to manage changing economic conditions

– Two flying brands strategy to adjust capacity, pricing and market segmentation as the market moves up or down

Remaining competitive in a challenging and volatile industry context

– Fleet renewal to reduce longterm costs and grow revenues

– Strong alliance relationships and strategic investments to spread risk and opportunity across markets and provide network depth

—Qantas: innovations to drive higher satisfaction and improved customer advocacy; focus on the end-to-end customer experience; improvements in product consistency across the fleet including aircraft reconfiguration; brand renewal; pursuit of efficiencies to lower the cost base; Customer Charter established

– Jetstar: effective capacity management; strong promotional campaigns; ground-breaking strategic alliance relationships (eg AirAsia);

Pursuing growth opportunities
in emerging markets

– Qantas alliance relationships with carriers in emerging markets

– Jetstar pan-Asian strategy including Jetstar Pacific (Vietnam) and Jetstar Asia(Singapore)

New technologies

– Breakthrough product and service innovations such as Next Generation Check-in

– Commitment to technologically advanced aircraft (eg Airbus A380, Boeing 787)

Operating in an environmentally
sustainable manner and managing
carbon risk

– Fuel efficiency program, investment in advanced technologies and fuel efficient aircraft, air traffic management leadership, sustainable aviation fuel development

-Carbon offset schemes, partnerships with environmental organisations and engagement with employees

QANTAS THREATS
How the Qantas Group responds
Responding to unexpected shocks and crises

– Purpose-built Crisis Management Centre with detailed crisis management plans

– Scenario planning supplemented by simulated crisis training exercises

Managing currency and fuel price fluctuations

– Award-winning Treasury function

– Hedging, including options, to enable participation when oil prices are low and protection when oil prices are high

Shrinking Aviation Industry

—Aviation industry got hit real hard as a result of global financial crisis. IATA’ traffic data showed a 4.6% drop in international passenger traffic and 13.5% drop in international cargo and stated that the worldwide aviation industry “shrinking by all measures”.

Intense Competition

The competition in this industry is super fierce.. Qantas are currently head to head with every major airlines in the world.

CORE COMPETENCIES AND COMPETITIVE ADVANTAGE
Strong brand:

Qantas is a globally recognized brand that enjoys excellent brand equity and outstanding customer loyalty (with over 4.6 million members of its frequent flyer program); Qantas connects Australia to most major destinations in the world in every continent. Moreover, Qantas has a well regarded management team which has helped the company to gain the brand value.

World class in flight entertainment:

Qantas is one of the oldest airlines in the world that has an excellent and well updated in flight entertainment system . As a result, Qantas is universally known for its comfort and timeless travelling experience. Qantas Airlines offers a wide range of in flight features and amenities for each of the different traveling classes. Qantas prides itself on offering each passenger a pleasant and comfortable flight, with top notch costumer service.

Comprehensive experience and expertise:

Qantas has long experience and abundant expertise in

1) both domestic and international flights;

2) both a full service airline(Qantas) and low cost carrier(Jetstar);

3) all levels of passengers (premium segment, economic segment, and budget segment)

Differentiating Factor

Jetstar’s quick rise to be one of the world’s most successful low-cost carriers places the Qantas Group well in terms of product offering and differentiation. Its strong fleet order book of A380s and B787 Dream liners gives it a significant competitive advantage over other airlines.

Qantas ability to re deploy Jetstar planes on lower yielding routes will be a good competitive advantage while demand is weak.

FINANCIAL RATIOS ANALYSIS
Current Ratio

The Current Ratio is one of the measures of financial strength.It reflects whether that company has enough assets to pay its liabilities.

In 2008 the Current Ratio was 0.73

In 2009 the Current Ratio was 0.88

It shows that Qanats Current Assets has increased, which is a positive result and mark of success.
Return on asset ratio

The Return on Asset Ratio measures how efficiently profits are being generated from the assets employed in the business when compared with the ratios of firms in a similar business.

In 2008 it was 0.071

In 2009 it was 0.009

It shows that return on the assets has decreased by almost 80%. The reason behind this is again recession.
Gross margin ratio

In 2008 it was 0.3

In 2009 it was 0.2

It shows that Gross profit has decreased a bit in 2009 due to economic downturn, but it is still better as compared to other airlines
STRATEGY RECOMMENDATIONS
Introduce all business class flights

The major source of profit for Qantas is from the business class. Keeping this in mind Qantas should introduce few new aircrafts which includes only business class passengers. Economy class seats shouldn’t be there in such flights. This will help the company to generate more revenue and will also give a different and high class experience to business class passengers.

Allow to use luxury lounge for economy class

Qantas should allow its economy class passengers to use the luxury lounge at the airports on payment basis. Customer should be allowed to use luxury lounge if they are willing to do so, for which they only need to pay little extra. This will help the company to generate money without making any investment. And not only this, it will also benefit the passengers of economy class they comfort is the 1st priority of every human in this modern world. so nobody would mind to pay a little amount for this comfort and relaxing experience.

Introduce segways at big airports

Qantas can introduce segways at the huge airports like Frankfurt International, London (Heathrow). This will help the passengers to commute easily at the airport with more comfort and less tiredness.

Provide organic food and herbal food

Qantas can provide organic and herbal food to its passengers. Everybody is too concerned about their health, keeping this in mind organic food would be a good option for them.

POTENTIAL FALLOUTS

It is because of the bilateral agreements in the aviation industry, the competition has been reached to its final stage and now it is become very tough for Qantas Airline to maintain high standards and survive in the competition. The airline is facing challenges not only in international, but in the domestic market where it was a market leader earleier. Companies like, Virgin Blue and Tiger Airways are picking up fast and taking the market share of Qantas.

REFERENCES

Bea, F.X. & Haas, J. (2001). Strategisches Management. Tuebingen: Vahlen.

Hamel, G. & Prahalad, C.K. (1996). Competing for the Future. Boston: Harvard Business School Press.

Kotler, P. & Keller, K. (2006). Marketing Management. New Jersey: Pearson Prentice Hall.

http://www.qantas.com.au/travel/airlines/company/global/en

http://www.investopedia.com/features/industryhandbook/airline.asp

http://ivythesis.typepad.com/term_paper_topics/2009/01/qantas-airline-known-and-considered-to-be-the-leading-long-distance-airline-in-the-world.html

Work-family conflict has been described as an inter role conflict which arises due to incompatible roles in work and family domain Aslam, Shumaila, Sadaqat, 2011; Carmeli, 2000. It is an inter-role conflict where demands of, time dedicated to, and tension created by an employee’s job interfere with performing family related duties or responsibilities and the tension created by family responsibility interfere with performing work duties (Choi & Kim, 2012; Karatepe & Magaji, 2008; Chinchilla et al, 2006). This creates an imbalance between work life and family life that affects employees of an organisation or a firm.

Human resource in the hotel industry, as in all other service industries, is the most important element in the delivery of service and as such a very crucial component to the success of every hospitality firm or business such as the hotels (Mensah, 2009). Employees of hotels work for long and irregular hours to make a guest satisfied in their facility because hotels these days open for 24 hours. The work time arrangement in the hotel has also been described as countercyclical (Sim & Bujang, 2012; Munck, 2001) in the sense that the most demanding time it the period when workers of other industries are off their work schedules. These periods are on weekends and during holidays.

The hotel industry has seen rapid growth and changes over the years to become the one of the pillars of economic growth in world. Characterized by labour intensive and variability, the hospitality industry in a whole grew at the rate of 5.7 percent from 2004 to 2005 (World Travel and Tourism Council (WTTC), 2007 cited by Mensah, 2009; Reigel, 1998). The industry is also known to be one of the largest employers in the world. It has been noted that tourism and hospitality employment in both the developed and the developing countries account for over 230 million jobs worldwide. This shows about 8.7 percent of jobs all over the world (World Travel and Tourism Council (WTTC), 2006). Of this value, the hotel sector contributes most.

Hotels provide hospitality services to strangers, visitors or guests, regardless of their purpose for travelling, as they have basic needs to be taken care of. These guests or strangers will need good food, clean water, safe, clean and comfortable places to sleep at night, and good entertainment areas for socialization. Hotels provide them with all it takes to satisfy those needs. For that reason, it is eminent that accommodation facilities (Hotels) become a melting pot of differing motives due to the fact that different people with different characteristics and motives come to hotels in search of hospitality services.

Accommodation services such as hotels and guest houses (Mensah, 2009; Akyeampong, 2006; Brotherton, 1999; King, 1995), among others, meet the physiological needs as well as the psychological needs of guests or tourists, who are away from their usual place of work and residence in return for a fee. The industry has, as a result, been described as a social exchange phenomenon that involves relationships between people, offering shelter, warmth or kindness to strangers or guests (Litteljohn, 2003; Slattery, 2002; Lashely & Morrison, 2000).

The changing clientele of hotel services, over the years, has come with changes in job demands, job stress, and job support, among others, for employees in hotels. These characteristics of the hospitality work together with others such as long unpredicted working hours, simultaneous production and consumption, perishability of hospitality products and intangibility of the services provided make employees in the industry particularly susceptible to work-family conflict (WFC) and make the hotel a breeding place for work-family conflict (Magnini, 2009). These conditions put hotel employees in an unfriendly environment that facilitate work-family conflict (WFC) coupled with limited benefits that support the family system including family friendly system and family supportive managers and supervisors (Karatepe & Magaji, 2008).

In recent years, there has been a greater complexity of work and its related issues with the family. Research works have shown that work and family represent two of the most important aspects of the life of an adult and as such work and family contributes to the explanation and understanding of adult human behaviour and have been realised to have clashes (Magnini, 2012). Bedu-Addo (2010) points out that the interference of work in family roles is becoming one of the major hazards to occupational health, family satisfaction, the well-being of employees and job satisfaction in the 21st century with specially emphasis on women professionals. Researchers have, for a long time, speculated that these two variables (work and family) are related, and this relationship has emerged in the form of conflict where the role of one is interfering in the role of the other domain.

It has been noted that over the past three decades, the structure of the family has undergone changes from large to small family systems (Han, Lee, & Chin, 2009; Choi & Kim, 2012). From a historic standpoint, men have always been the financial providers for the family while women have been home keepers and care-givers. Due to globalization however, changes have taken place and women are also entering the work field. The changing nature of work throughout the world is due to economic conditions and the changing social demands. In the past decade and a half, the number of Ghanaian women who have been involved in formal employment in Ghana has more than doubled (Bedu-Addo, 2010). This according to him is as a result of the modest economic upturn in the past two decades. This economic upturn emanated from the introduction of two economic growth interventions namely Economic Recovery Program (ERP) and the Structural Adjustment Program (SAP) in the late 1980s and early 1990s.

Problem statement

With the advent of globalisation in recent years, many people round the world have embraced the view of dual-earner family system over the single earner system which used to be in the past and Ghana is no exception. Organisations have also evolved over time such that they continue to change as individuals’ life also changes (Aslam, et al., 2011). The incorporation of women in the paid employment workforce within the second half of the twentieth century became the most important socio-demographic phenomenon influence the dual income earning family systems (Tugores, 2008), and this worth mentioning in recent times when discussing work-family interferences. Work-Family conflict has been noted to extensively influence the health conditions of an individual in various forms including bibulosity and depression. It is also known to influence an individual’s work as in work satisfaction and vocation ambition, as well as the family happiness (Eby, et al., 2005).

The issue of work and its interference with family life has been widely studied by many researchers in different fields of study such as psychology, business, sociology and also organisational behaviour (Aslam, Shumaila, Azhar, & Sadaqat, 2011; Xiao & O’Neill, 2010). Also, there have been a number of research works on the WFC addressing the issue of gender differences and have demonstrated that females experience more WFC than males such that females may take on much more work responsibility than their male counterparts (Zhang, 2011; Perkins & DeMeis, 1996).

Despite the advances made in the literature of work-family conflict, evidence suggests that the examinations of work and family have been conducted independently of each other. However, some researchers have agreed that work and family are related, and have found that this relationship has emerged in the form of conflict, exhibited in different forms. There is therefore the need to have insight into the conflicting nature of work and family roles in the Ghanaian perspective.

Another gap identified in the work-family conflict literature is the little attention devoted to addressing the forms of conflict, the effects or problems caused by WFC and also, the main strategies that are used to control WFC (Magnini, 2012; Cleveland, O’Neill, Hlmelright, Harrison, Crouter, & Drago, 2007; Mulvaney, O’Neill, Cleveland, & Crouter, 2006). Even though there has been a number of studies in the field of human resource management in hospitality industry in Ghana including the study of human resource issues in the development of tourism by Appaw-Agbola, Afenyo-Dehlor, & Agbola (2011); human resource management practices in selected hotels in Accra metropolis by Harding (2012), issues of WFC in the Ghanaian hospitality industry, assessing the nature, factors, and effects have been left out of the picture. The paucity of research into this area makes it necessary for a research to be conducted in order to illuminate work-family issues facing employees in the Ghanaian hospitality industry and more specifically, in the Sekondi-Takoradi Metropolis.

Further, the literature on work-family conflict have been dominated by studies in the context of the developed world (Xiao and O’Neill, 2010; O’Neill and Davis, 2009; Cleverland et al., 2007). It has been noted that research findings that are on the conflict and facilitation dimensions of the work-family interface has been neglected in developing economies and particularly in the Sub-Saharan African countries such as Ghana (Karatepe & Magaji, 2008; Aryee, 2005).

Generally, the development of hospitality throughout the world is a function of complex factors that coalesce to generate dynamic processes that one must understand in a local context in order to help deal with work-family conflict situations. There is therefore the need for research to be conducted into the phenomenon within the Ghanaian context as hospitality industry keeps on expanding at a rapid rate. This will help to give an insight into the WFC issues confronting employees of hotels in the Ghanaian hospitality industry.

Research questions

Upon the backdrop of issues raised in the research problem stated above, certain pertinent questions may be raised in the minds of readers

what forms of WFC are faced by hotel employees in the Sekondi-Takoradi Metropolis?

what factors contribute to work-family conflicts in the Sekondi-Takoradi Metropolis?

what are the effects of WFC on hotel employees in Sekondi-Takoradi Metropolis?

how do hotel employees in Sekondi-Takoradi cope with the effects of WFC?

Research objectives

The general objective of the study is to examine work-family conflict among hotel employees in the Sekondi-Takoradi Metropolis. The specific objectives are to:

identify the forms of WFC among hotel employees in the Sekondi-Takodadi Metropolis;

examine factors that contribute to work-family conflicts;

determine the effects of WFC on employees;

determine the coping strategies used by employees to reduce WFC.

Research hypotheses

H0: There is no significant difference between the WFC factors of sex of hotel employees in Sekondi-Takoradi.

H0: There no significant relationship between socio-demographics (age, sex, etc.) and WFC.

Significance of the study

Managing human resource in the hospitality industry is one of the most important elements to consider due to the labour intensive nature, simultaneous production and consumption characteristics of the hospitality industry among others. This study therefore provides constructive and insightful information on work and family issues faced by employees in the hotel industry in the Ghanaian perspective, specifically on hotels in the Sekondi-Takoradi metropolis, to hospitality educators, managers of accommodation businesses, students offering hospitality and tourism studies, and other stakeholders in order to fill the knowledge gap.

It also provides valuable information that will shape the design and methods regarding ways to help balance of work and family conflict of employees in the hospitality industry that arise as a result of the interference of one domain (work roles or family roles) affects the performance of the other (either work roles or family roles), to help the managers of accommodation businesses or facilities to make informed decisions, in effort of rendering quality service and preventing work dissatisfaction and frequent turnover as a result of conflicting roles from both work and family.

This study also serves as a background for further studies and empirical research into the work and family role conflict, consequences and spill over within the hospitality industry. It will serve as a baseline for further studies on the work-family relationships that exist in Ghanaian perspective and as such, will set the grounds for more empirical studies into the phenomenon.

Delimitations of the study

This study is encircled to explore the extent to which work and family issues or conflict affect hotel employees in the Sekondi-Takoradi metropolis, how it affect the individual, and the various ways in which the hotel employees tend to use to control or balance the role demands from each domain. The study covers the factors that contribute to the growth of WFC, effects of WFC on the employees, and ways or strategies used to reduce WFC in the study area, concerning hotel employees in the industry within the Sekondi-Takoradi Metropolis.

Thesis structure

This study is divided into five distinct chapters. Chapter one is the introductory chapter which gives the background information to the study, the problem statement, research questions, objectives, hypothesis, significance of the study, and the delimitations of the study. Chapter two consists of review of relevant literature on the subject of hospitality management, work-family conflict, family-work forms, effects and other related issues to the study. Chapter three, deals with the methodological issues of the study. This includes the information on the profile of the study area, study design, sources of data, sampling procedures, fieldwork issues and the related challenges, as well as data analysis, and presentations. Chapter four presents a detailed discussion of the results of the analysed data. Chapter five summarises the key findings of the study, conclusion and recommendation.