Author: Andre Coleman

Purpose – The paper aims to provide a holistic perspective on various dimensions of the tourism industry in India.

Design/methodology/approach – The paper combines analysis of various documents as well as insights from researchers. The paper discusses problems of the tourism Industry, strengths of the industry, challenges faced by the industry in India and policy implications of the government.

Findings – The paper explains the economic importance of tourism Industry in India by outlining the strengths and challenges of the Indian tourism industry. The paper has implications for the government and Industry players in terms of investment in hospitality education and training, infrastructure and better employment practices.

Practical implications – The paper provides recommendations for some of the initiatives that government and industry players could adopt.

Introduction

Tourism industry of India is enjoying the growth period, driven by the Indian middle class, increase in tourists who are ready to spend more and the government campaigns to promote India’s “Incredible India”. The tourism industry in India is substantial and vibrant, and the country is fast becoming a major global destination. It is one of the most profitable industries of India which also contributes huge amount of foreign exchange. In 2006 the amount spent by the tourists in the country was US$ 8.9 billion. Disposable income in India has grown by 10.11% annually from 2001-2006, and most of it has been spent on travels as mentioned in “Economy Watch”. Foreign tourists spend more in India than almost any other country worldwide. The tourism industry has supported growth in other sectors like horticulture, handicrafts, agriculture, construction and poultry. There is a gap between the potential of the tourism industry and the success achieved till now. Through this study we would try to find out the steps which can be taken to curb the shortages faced by this industry.

Industry Contribution

Due to booming industries like IT and outsourcing industry, a growing number of business trips are made by foreigners to India, tourists spend more in India than almost any other country across the globe. The Tourism Ministry has also played an important role in the development of the industry; advertising campaigns such as the ‘Incredible India’ campaigns have promoted India’s culture and have attracted tourists in a tremendous way. Increased tourism in India has created numerous jobs in a variety of related sectors both directly and indirectly. Almost 20 million people are now working in the India’s tourism industry. India’s governmental bodies have also made a considerable impact in tourism by making it mandatory that each and every state of India have to administer support issues related to tourism. A new growth sector is medical tourism. It is currently growing at around 30% per annum. Medical tourist arrivals are expected to reach one million soon. The tourism industry of India is based on certain core nationalistic ideals and standards which are: Swaagat or welcome, Sahyog or cooperation, Soochanaa or information, Sanrachanaa or infrastructure, Suvidha or facilitation, Safaai or cleanliness and Surakshaa or security as mentioned by “World travel $ Tourism Council, India Initiative”.

The landscape of India is a natural attraction for tourists and a rich tapestry of cultural heritage is woven into a wide range of tourism products. Indian tourism demand is estimated to grow at 8.8 percent from 2004 to 2013, which would place India as the third-most rapidly growing tourism market in the world after Montenegro and China (HVS Hospitality Services, 2007). There is a phenomenal explosion of domestic tourism which is fueling the industry’s revival. India has a wide population of educated, hospitable people who have the moral strength and desire to welcome tourists. The hospitality industry is also booming with an increasing number of hotels being opened in various regions across India. This will in turn help in job creation and in driving the economic growth. Major brands such Emaar Group, Kingdom Hotel Investments; and international fund companies such as Blackstone, Morgan Stanley and Merrill Lynch among others have solidified their interest in the Indian hotel sector.

Specific, targeted efforts are being made to develop tourism in India in terms of media campaigns. For example, the “Incredible India” campaign has had a very strong impact on tourist arrivals. The “Brand India” message is being communicated globally and penetration is strengthened by reaching prospective visitors through electronic, print and internet media (Himani Kaul, 2009).

Sporting events such as the Indian Premier League cricket tournament held in 2008 and the Commonwealth Games to be held in 2010 are also significant drivers for promoting destination “India” and fuelling tourist demand.

Problems faced by the Industry

India’s tourism industry has a labor shortage. There is not enough accommodation, rooms and dirty problem, food problem is to stop tourists who come to India. Many parts of the country have not been very good, in terms of appropriate road, rail and air connections. Excessive bureaucracy had delayed new hotel and transport projects. Tourists are often the economic exploitation, and criminal elements in India, Indian women and the elderly can secure access to visitors. India’s tourist attractions were also damaged pollution. Refinery smoke is harmful to the Taj Mahal, and coastal ecosystems, Rann Kutch and the Himalayas are contaminated blow. Delhi, Jaipur, Agra in northern India, transport and communications and Bhuwaneshwar – Konark – Puri Orissa industry better than other equally attractive destinations in India as per “Norah Faith”. These problems also shorten the tourist season in India, which then leads to unemployment in off-seasons. As per the Tenth Planning Commission Report on Tourism; the major impediment to the growth of tourism has been the lack of awareness about the benefits it can bestow upon the host population. The Planning Commission Report has summarized the main factors that affect India’s tourism competitiveness:

Lack of concern for competitiveness.

Inadequate facilitation services – infrastructure improvements at country entry

Points and appropriate facilitation services are needed.

Lack of quality infrastructure.

Lack of emphasis on product quality.

Lack of training at the “cutting edge”.

Lack of hygiene.

Low utilization of modern marketing and publicity tools.

Insufficient involvement by the private sector in tourism development

The author Mr. Jauhari talks about Hospitality industry and tourism in India:

Hospitality industry is a major employer. The industry includes services such as tourism and food service sector. It was more than from peers, the industry’s economic fluctuations. In the world economy the hospitality industry is a major sector. The industry consists of a service industry, including catering, tourism and hotel industry a wide range of varieties. Also includes support for the hotel industry such as airline cabin staff travel and travel agencies, application of information technology (IT) and hospitality and tourism workers in technology business. Hospitality industry is characterized by a large number of employees. Entry-level positions usually require no formal education (S.K.kuthiala)

These articles majorly focus on:

Infrastructure management: cooperation between different players such as hospitality businesses, infrastructure, state government, the ministry of tourism and environmental agencies. The budgetary allocation for tourism needs to be enhanced and real estate investments are required to upgrade facilities in order that tourists might experience a more consistent service product. Funding opportunities and escalating costs are other limitations.

Workforce issues; in turn, this is impeding the professional development of hospitality and tourism as the industry is characterized by long working days and comparatively low levels of compensation. In view of the intense competition for skilled labor and the high rate of attrition at all levels the other key manpower issue relates to the relatively limited experience of and competency in project and construction management. “The goal of sustainable tourism requires well coordinated human resource development (HRD) strategies aimed at tourism industry personnel and the host community in general” (Srivastava, 2008).

Education and training for the hospitality and tourism; an area for concern and discussion relates to the existing provision of hospitality education in India, and especially the curriculum and pedagogy where management preparation and training tend to be omitted.

The marketing of hospitality firms; Online marketing has become an important medium for hospitality firms. India is currently behind the pace in this respect and web sites need to add this capability so that they can capitalize on the market opportunities that exist around the world. India lacks in Consumer advisory web sites

Strategies adopted for growth and franchising;

Destination management; The Indian Government’s “Incredible India” promotional campaign has made a significant contribution to the overseas image of India in the past year and helped to create a positive perception of what India has to offer. However, much more needs to be accomplished in order to deliver on the potential that a tourism experience in India has to offer.

Crisis management. This is extremely important dimension that all tourism and hospitality firms need to address. The range of threats to tourism is growing and the outcomes can, potentially have a devastating impact on India’s economy (Dirk Galesser).

Recommendations

Prioritize the investment in tourism and shorten the project start-up cycles.

Establish a single point of access clearance system for new hotel/restaurant/tourism projects.

Upgrade airports, water and sanitation facilities and the public transport system as soon as possible.

Manage the work force issues by investing in hospitality education and benchmark the curriculum with the best in the world. Establish institutes which train the faculty on a year-round basis.

Nurture the right competencies so that prospective employees can perform when hired. India really needs people with outstanding project management experience – especially in the management of large chains.

Create positive perceptions about the industry, offer competitive wages and invest in employee growth. Any short cuts would have a disastrous impact on hiring and retaining employees in the long run.

Invest in the management of online tools for communication. As the internet becomes the main medium for accessing and retrieving information, an online presence needs to be managed so as to create desired business outcomes. This effort needs to be allied with appropriate search terms and links to the main search engines (Vinnie Jauhari)

Develop international collaborations in order to learn as quickly as possible from international best practices.

Invest in training so that the potential of India’s workforce can be realized.

Check the indiscriminate growth of tourism; the local population must be convinced of the need to support regulations in the interest of long-term sustainability. Many of India’s hill resorts have suffered due to lack of concern for capacity management.

Ease bureaucratic hurdles.( Shivangi Gupta)

Methods
Characteristics of tourism are:

It is a constantly operating industry.

It is affected by seasonal fluctuations.

It is highly a Labor-intensive industry especially when it comes to India.

Barriers to entry are not strong for this Industry.

In India for this Industry Small businesses predominates.

It is one industry which is a crucial medium for educational and cultural exchange across the globe.

Consumer expenditure of domestic and international tourist is growing at a high rate.

Few producers or service providers dominate in the Tourism Industry.

Opening of New tourist attractions happens regularly.

Mass tourists products have very little differentiation as the industry has not invested in this field up till now.

The impacts of tourism are wide ranging reaching economic, social, environmental aspects.

Two forms of tourism:

International Tourism : Travel to countries outside home country

Domestic Tourism: Travel within the country.

Factors affecting tourism

The tourism industry is complex. Many components of the tourism Industry are linked to the other economic sectors of the country. The resulting interaction of the movement of tourists from the origin to the destination and the drivers involved are available for our analysis:

1. Physical Environment

Indian Tourism industry has also developed in a large variety of physical environments, with many of the different environments within India becoming favorable tourist destinations. These environments may include:

Hill stations

Beaches

Deserts

Countryside

Holy places

Historical monuments

2. Technological change.

One of the most important variables affecting tourism is the technological changes. Twentieth century, transport technology destination on a large scale are preceded by mass tourism to feel free to spread, the manufacturers of rail or ship – built continuous vehicle capabilities.

Such developments influence reaches the places are in relation to social and financial reasons

The development of large aircraft long-range aircraft Boeing 747, was that an important stimulus for the growth of tourism industry.

3. The biophysical and built environment

A country’s bio-physical environment, heritage and artistic life, is an integral part of the tourism industry. Different types of tourism development have different requirements; some countries will support development more than other countries.

The industry is eventually located according to the physical distribution of attractions and access to them, which is mainly determined by natural factors. Destination must provide the purpose and needs of tourists for which it is seeking.

Tourist practices are influenced by environmental conditions, and restrictions on types of development can take place. Natural features are very desirable and should go together with the infrastructure and tourist attractions.

Climate is an important consideration, and favorable weather conditions are crucial. For all tourist activities is an excellent weather, and climate often in a resort holiday season determines the length and profitability.

4. Economic factors

Tourism is one of the most prominent global economic performance department. Tourism is the employment of the accommodation, catering, transport, entertainment and other services industries major source of important provisions. In addition, there is a huge production of indirect tourism activities. This is a promotion, because of its multiplier effect of a wide range of important means of economic growth.

Tourism is India’s contribution to export earnings in large part on the Indian economy

Changing economic conditions largely determine the scale of the tourism industry. With the development of changes in employment structure and a more affluent society, creating a higher level of tourism products.

5. Socio-culturalInfluences

Participation in tourism is affected by demographic and social factors such as age, family life cycle, education, occupational structure, population concentration and quantity. Profound impact on demographic and social changes of the population indulge, in the future tourism will be seen.

Increased life expectancy and changing composition of the workforce is also important.

More and more women participation rate provides a boost tourism, because the two higher income household disposable income. There is also a dink for those who travel more frequently.

6. Political influences

Governments at all levels and all parties acknowledge that although tourism is basically a private sector, the impact of the need for government involvement.

Government has a profound impact on the economic environment in which the tour operators. The Government’s main role is to promote the prosperity of the industry and the most extensive economic, social and environmental objectives consistent with the development.

7. Cultural influences

Historical or cultural value is characterized by strong tourist attractions. Three Seductive cultural forms: – cultural forms, because it is inanimate monuments – cultural forms is reflected in the daily life of a destination

Especially in the cultural forms, can it be animated, such as festivals.

Tourism is often accompanied by cultural exchange and cultural richness. These contacts can have harmful effects be in the local culture and traditional way of life if they are weakened or destroyed.

The relationship between production and consumption

Tourism as a production consists of three main components: Tourist country of origin; destinations and travel routes between locations.

1. Tourism generating areas

Visitors second homes in other words. Which represent the world’s major markets and tourism market is the main feature found here.

2. Tourism destination areas

Attract tourists and what is not available at home.

Transport lines connecting the two areas of production, is the key factor. Production activities they are the most important part of traffic.

Them as visitors acquire the experience from many different places. These activities are very interdependent.

The changing nature of the production process

The tourism industry throughout the twentieth century is closely related to rising living standards in developed countries. Half of the twentieth century, largely in the opportunity to travel to the privilege of the rich society, but the following World War II period of rapid growth has enabled more people to travel. In the automotive and aircraft become the main means of transport.

A number of important changes are related to the development of the industry
International Travel

Tourism has become globalized. Global transport infrastructure around the world is rapidly becoming the way of all interrelated. Degree of globalization has also increased more countries to participate in international travel.

Organizational Development

Tourism organizations from two sources: the government and the private sector.

Recognizing the contribution of the tourism industry, the country’s economic and social benefits derived out of it, to almost all government organizations, tourism should be promote. Their responsibilities are of different degrees.

Opportunities in tourism, there is caused by large and small scale mixing of all the travel needs of food service from origin to destination. Production activities with other tourism enterprises participate in the emergence of significant growth. Most of the big travel company growth from the market and many tourist destinations and a greater market share and economies of scale drive very competitive nature.

Social impact of tourism

Tourism is a personal decision by the consumer.

Tour

Price for the whole package tours, it is usually cheaper to import a larger market holiday. Consumers have a choice variety.

Small group travel

Small group travel is a popular choice. They use local resources and services as possible.

Personal travel

Many tourists are actively planning their travel experiences. They like to personalize their trip, and not locked into a tour group. Experienced travelers are seeking to achieve specific wishes. This reflects the visitors experience new and different aspirations. Demands of professional productive activities have been seen as a response to the tourism industry.

Economic impact of tourism:
Increase the scale of production

The profit motive to encourage the development of large scale operations and the size of companies involved in the increase. Increasing size is especially evident in the lodging industry. The action in the hotel industry continued to expand. The large chain hotels can take advantage of economies of scale; small independent can compete on the basis of cost, personalized service.

Horizontal and vertical integration

Increase in the production and concentration of ownership and control of the growth in size, usually comes through the horizontal and vertical integration. A business may seek to expand or develop its own or combined with other enterprises.

Transnational Management

Integration continues to act in the tourism point of a multinational or transnational in nature. Multi-country development model is different. Clearly, the global market to provide greater market potential and opportunities, gain competitive advantage. Company wants to diversify its investment portfolio will expand overseas activities.

The impact of tourism technology

Tourism received a lot of research funds to promote development of new technologies. They changed this productive every field of activity.

Consumer choice

Tourism motivation and decision-making are increasingly shaped by changing technology. The Internet has allowed a lot of information has become available to tourists. Hotel facilities, reservations, attractions and more like these.

Transportation Technology

Aircraft

The aircraft will benefit the future development of larger capacity aircraft, but still subsonic. Generating capacity in order to promote aviation aircraft and speed increase. Therefore, the new aircraft cannot travel faster than any existing, but they will have a greater range and more seats to reduce travel costs.

Land transport

Transport is now faster and better competitive long-distance travel. This is the development of infrastructure to work together.

Maritime transport

Particularly there is a fast growth in the cruise industry. In 20th century Cruise fleet has doubled in the last decade.

Keep track of personnel and property

Computerization allows operators to operate more efficiently and produce marketing plan activities that can be used to the wealth of data. Global satellite network to provide as a new powerful marketing tool. Technology has changed the allocation process.

The political impact of tourism

Most governments are now actively seeking to promote tourism, and in their own countries, to take measures to coordinate public and private tourism activities to promote development of the industry. In some parts of the developed world, Government support has been less impending. In many developing countries, tourism is considered to accelerate economic development. Some Governments have also encouraged the development of international tourism, and promote their own political goals.

The nature of government involvement:
Tourism Promotion

The Government’s main contribution is both to promote tourism, and in their own country. The most direct way is to establish Tourism Organization, the impact of tourism development. Ministry of Tourism Australia, the implementation of this role, its objectives include:

To provide a future development of the industry, the Government’s clear statement

To strengthen the economic, environmental and cultural awareness of the importance of tourism.

Facilitate the entry of visitors

Easy to enter a country is a key factor to attract tourists. If the entry procedures for tourists are going to be complex, tourism will be affected. Now some countries with visa-free access in some countries

Transport Policy

Availability, price and ease of transport within and between countries dominate the visitors flow. Distribution of the traffic dispersion in terms of tourists is important. Governments are generally used for transportation infrastructure and equipment available. Many airlines have entered the Union, to enable them to reduce costs and increase capacity. Under pressure Government have to further do the liberalization of the international airlines.

General economic policy

The Government policies affect the industry directly and indirectly. For example, when the Government policies and regulations and high inflation would reduce spending, thus limiting the disposable income of the tourism industries. Government revenue, chares levies additional cost to the tourists.

Environmental and social impacts of tourism

Two major problems threaten the long-term survival of the tourism industry: environmental degradation, and adverse social impact, which is often accompanied by the development of tourism.

Tourism and the environment

Tourism development is often near the biophysical environment where attractive or unique features. Tourism development often has a heavy pressure on natural resources. The greatest threat is to those who are most vulnerable to natural and man-made pressures.

Tourism can help:

The deterioration of air and water supply

Destruction of natural landscapes

Destruction of vegetation

Threats to wildlife

The challenge is to develop a procedure to assess the potential environmental impacts of tourism development. Other mechanisms can be used to solve the impact of tourism regulations, the establishment of national parks, protection of significant heritage management and legislation to help protect our cultural and natural resources.

In tourism development and environmental protection activities linked to the production of future success. Uncontrolled development is likely to undermine the tourist attraction. Adequate planning by the government, the threat of environmental degradation faced by the world tourism industry can be overcome.

The social impact of tourism

Between visitors and residents can be mutually beneficial social ties:

1. Resident population to gain more understanding of cultural tourists, so as to maintain the national heritage of some of the traditional activities and needs.

2. Passengers bring tourism revenue and maintenance, and for local use these facilities. Visitors can go to the same host country and its culture and traditions of understanding of their homes.

The development of tourism can promote each other’s misunderstanding, hostility and social tensions, the impact of living by the tourists. This could include prostitution, crime and gambling.

Social policy and social services must become an integral part of tourism planning, tourism operators and by the host government. Failure to do so may appear hostile to tourists, which can reduce the tourist flow and vitality.

Results and Discussions

We conducted the survey among diverse demographics to analyze the current situation of tourism industry of India. After collecting data, we first performed the factor analysis on the data. From factor analysis we got five different factors on which we performed multiple linear regression (MLR) to get the refined results.

Given below is the output that we generated from SPSS:

We can clearly find out that people give importance to Information about tourist spots, tour packages and security then Infrastructure and Hospitality. To attract large number of tourists we need to implement solutions for these factors and have to take appropriate measure for the growth of Indian tourism Industry.

Recommendations as per our study

Tourism is the world’s largest production activities. This is accepted as their source of income and employment potential of the results of the government. The pace and the future tourism project are to determine the direction of the explosive growth:

Information

We need to develop an information system which is very efficient and accessible across the globe which also includes remote areas.

Security

In India we need to make sure that we have to keep safety mechanism ready and speedy by connecting every tourist place, hotels to our police stations.

We can keep a chunk of the policemen to cater particular to this need.

Creativity

Industry people have to start working on framing the package tours with more creativity and innovation as our mass tourist products are more or less same and lack the flexibility which is required.

Infrastructure

We need to provide adequate protection of the environment.

Tourism trend is closely related to national infrastructure.

Infrastructures in India needs huge investment outlay and will directly have an impact on the growth of the tourism Industry.

Accessibility

Transport technology to make long-term fortunes with more affordable, more people to participate in international travel. Chosen to reflect the perceived safety of the destination.

Accommodation

Tourists will be attracted to the destination best suits their needs. Tourism is trying to provide travel experiences to suit all budgets and circumstances.

Attractions

Technology will continue to develop and strengthen the tourism experience. Market research will lead to new tourism operators to promote products.

This is may be some barriers to international travel. Visitors will be courting the economic development of developed and developing countries.

Tourism stakeholders will have to bear greater responsibility. Whether it is a tourist and the host population should not be regarded as environmental quality.

The basic strategy of tourism development is to preserve and protect areas such as goal setting apart. Development of guidelines for ethical and environmental regulations should be implemented to maintain sustainable tourism in the next century is feasible.

As the state boarders open, population aging, more affluent, tourism is to promote more and more people will go.

As production activities, tourisms importance in the global economy will continue to grow.

Some more positives and negatives about the tourism industry which can be enhanced and can be prevent respectively:

Tourism foreign exchange earnings can be used to pay for imports

Protection of the unique environment is often

Travel to create employment opportunities, are labor-intensive

Local products can be sold to hotels and resorts

At the airport with foreign investment

Profits can be used to improve housing, schools, etc.

Local customs and traditions are preserved

To improve cultural understanding

10-20% of the income received in time to stay in

The new event of process scheduled in the recent era is the launch of e-Business. This process is basically an additional method for the growth of productivity and an increase in the zone of profit for the business that is involved. The key structure of the e-Business is the active utility of the computers and online transactions. This also involves various strategies to complete the process and handle the structure with core techniques for the best result. The acquired process of marketing and management in the recent years have grown and taken its place with latest techniques and new acronyms in the global touch.

E-Business is the new integration of the activities of the organisation or the company and their products along with their services and procedures in the internet. A old traditional business linked with the new growth of enables e-Business strategy integrating the activities of the organisation or the company featuring sales, accounting, marketing and many more operations that are concerned with the organization and their process involved takes us to the pride of achieving the future growth and their expansion.

Outline Segment:

This assignment includes the necessary of identifying the principles of marketing and a complete analysis of the structure of e-business in to the chosen illustration. The time to time market explains the product launch and their association with the market for the release. It redirects the right time for the consideration of launch of the project or practice in accordance with the implementation changes that has to take place within the organisation as a matter of fact.

Branding:

The process of branding shall be concerned as the part of sources provided in the internet and other resources about the brand and by the tasks of business of participation. The web page normally supplies the relevant scope of information about the brand and the organisation with its benefits and service provided on the real. A website establishes the fact of the company or the organization and creates awareness about the offers and availability of the schemes provided by the company. It also brings the latest key on notice to the immediate reach of the customers and creates a satisfaction among the customers. The process of branding not only has an impact on the customers but also enriches the source of customers with a build of trust and raises itself with a value of accreditation in the market of competition. The brand becomes a part of the quality and promise of the customers and the partners along with the employees as a part of flexibility, trust and growth.

Singapore Zoo:

The Singapore Zoo, Located at 80 Mandai Lake Road, is also known as Mandai Zoo or Singapore Zoological Garden. Popular for its Night Safari attraction, the Zoo has a reaped a long list of awards, both local and international.

”This has to be the one of the really beautiful zoos, of which there are all too few. It is brilliant laid out, so that the ceclosure fences are almost totally hidden. The expanses of the water of the seletar reservoir are a magnificent additional feature of the setting. The animals are beautifully maintained in good health, in spite of the climatic conditions. All in all, the Zoo shall receive a warn congratulation for the heads that are responsible for them, and declaring it for us was a great experience to see it.”

The gem of an idea to have a zoo was conceived by Dr. Ong Swee Law. Opened on 27 June 1973, the Singapore Zoological gardens caters to recreational, educational and social needs of Singaporeans and tourist to the republic. “The Open Zoo” which reflects the absence of physical barriers in enclosure design. Instead cascading waters, lush vegetation and moats cleverly mask the hidden barriers to enhance the illusion of freedom and natural jungle-like atmosphere for the animals. The Zoo began with the humble collection of 270 animals of about 72 species. To date, a total of over 2000 animals of 240 species are displayed in some 70 exhibits.

One of the more appealing attractions at the zoo is the animal show. The animal shows – Primate Reptile show s and Elephant and Sea-lion shows. Due to popularity and surge in crowds, an Amphitheatre was built in 1985 to centralize these shows and to seat visitors comfortably. The amphitheatre which has a long pool with glass panels for aquatic acts can seat 1,500 and can accommodate up to 2,000 spectators.

The Animal Shows are specially designed to incorporate the natural behaviours of the animals to educate visitors in an entertaining presentation. The conservation messages are disseminated to the audience during the shows to heighten their awareness of the environment. In 1987, the Zoo introduced the Special loan exhibit, where rare animals on loan from other Zoos are displayed for a short period. The animals which have been displayed at the special Loan Exhibit include the golden monkeys, white tigers and giant pandas. This novel idea gives visitor s an opportunity to view rare animals which cannot be exhibited permanently at the zoo. The enclosure was renamed Singaporean Press Holdings (SPH) enclosure following its adoption by the SPH group in 1990. Another major breakthrough for the Zoo was the introduction of underwater viewing exhibits. The first was in 1988 – the underwater viewing polar bear exhibit – enable visitors to “rub noses” with the Zoo’s polar bear. Since 1987, the Zoo passed the million marks in visitor attendance.

The string of awards bagged by the Singapore Zoo attests to splendid inhabitants and services: 2002 Asean Tourism Association (ASEANTA) Awards for Excellence, Best New attraction in ASEAN (Singapore Zoo for Hamadrya’s Baboons – The great rift valley of Ethiopia). 2001: STB (Singapore Tourism Board) Tourism Awards: Leisure Attraction of the Year 2001 (Singapore Zoo). 2001 – The Singapore Totalisator Board Excellence – Singapore Award: Internationally acclaimed “open zoo” design and excellent in-situ conservation achievement. 2000: Where Singapore magazine’s Concierge Choice Awards: Best Place to Take the Kids. 1999: IMA (Incentive & Meeting Asia) Awards: Best Theme Attraction.

Important Campaigns in the process of integration of the organisation in e-Business are as follows;
A new architecture of strategy and launch of business automation by the process of e-Business.
An enhanced view and recommendation of the developed solution in the web and front-end legacy applications.
A new format of the developed portals of the organization or the company with the update of the latest information.
New value chain integrated through the web based application for the company or the organization.
SWOT analysis:

The SWOT analysis is an understanding of the total result of the current position of the business. It defines the Strength, weakness, opportunities and the threats of the organization matching the external opportunities with the internal strengths. The company or the organization involving for the SWOT analysis has to order the strategies and strengths to hold in control the weaknesses and eliminate the threats in any from the external sources.

Strengths:
They are open 365 days all around the year and it is considered as a most entertained tourist attraction. They open at 8:30 am in the morning and close at 6:00 pm in the evening creating an enthusiastic environment for all ages from 6 to 90 daily all around the year. The last ticket sale everyday is available at 5:30 pm enabling the visitors to enter at the event of closing for short time enjoyments too.
The cost of the entry is also reasonable for the attractions available in the theme forest, the Singapore Zoo.
Rental of the stroller is available enabling a hassle free travel until the Zoo and the charges are also reasonable as $9 only.
Complimentary admission for DDR(Disability Development Registry) card holders and entitlement of beneficiary programmes chosen by the Voluntary Welfare associations.
Protection and conservation comes with education. The visit enhances us to understand the necessary of conservation and protection raising awareness.
Organising events such as wedding and parties for own reason with reasonable cost guaranteeing the success of the occasion conducted.
Sponsorship and adoption also remains as a part of the team along with small donation initiating the success of protection and conservation of wildlife.
The location suits the entry itself with a night safari and orchid gardens roaring itself with pride for visiting.
Shows are unique and visiting Australian outback, cat country, critters Longhouse, Fragile forest, Elephants of Asia, Hamadryas Baboons, Orang Utan, Polar Bear, Proboscis Monkeys, Primate Kingdom, Rainforest Kidzworld, Reptile Kingdom, Wild Africa, White tiger are the main attractions.
Weaknesses:
Weather: The weather circumstance may be the stop point, as prediction is never accurately right hence the market prediction refers accordingly.
Cost: This cost may sound reasonable when considering the factors of the total value and convenience referred in the place.
Place: The location depends convenient on consideration upon the general factors but the unique thoughts upon the each visitor vary.
Shows: Visitors though they are happy with the shows and preferences that are given or organised by the organisation but they prefer to have more shows.
Opportunities:

The Singapore Zoo is said to be an organised theme with shows, events and attractions. They tend to have increased in their growth along with the years. Now they have become a part of the wildlife protection and conservation creating awareness in the social media. There are quite a lot of opportunities and competition that exist in the field in and around the world.

Threats:

There are no huge threats when concerned with the whole of the organisation whereas some exist such as the competition between the other themes around the area. There exist another night safari and orchid gardens for visiting. The location Singapore itself refers itself for a calm and roaring entertaining area.

The visitor can become a sponsor or a member, he can involve himself as a part of the team enriching the lives of animals the wonder and an escape for the reality in admiration. They are the sources of a living entertainment and they have to be preserved.

Marketing mix:

The most important elements of marketing are defined as the 4 P’s. They are Product, promotion, price and place. An organization may change the elements of marketing according to their requirements and tendencies. The target for their own caste in the market is set with official designation with the alteration of the principles of marketing mix if required and are taken in to consideration for the fact of earning their benefits in the resource implemented. The main component to be considered is the addressing of the competitive market and the implementation and the process of support by the operations merged to prove the reach of the target through the marketing mix principles.

Taking the marketing mix in this instance for this organisation comprises of the products, place, promotion and distribution. The products offered are the actual offering that is present in the location and the price is the value that remains exchanged for the offering present in the place. The promotion includes the targeting of the audience with the mix of promotions for the attraction of visitors. Distribution covers the place where the product is being offered and located for the targeting of the audience.

Place:

The location is been chosen as the best suited place for the construction of the Zoo and it’s the perfect place for the process chosen by the organization. The organization built has various ideas such as scheduling events and wedding ideas indoor or outdoor events. They also categorize themselves in organising the events and catering and all sources for the booked events. The location sets scenic view and way for the other places of attraction such as the night safari and orchid gardens that cover the tourist spots.

The major point discovers the area as a whole of tourist attraction and determines itself with a variety of attraction such as night safaris and gardens on way to the Rainforest zoo. They also become a part of other organisations such as the zoo’s and wildlife conservation within the country. The animal encounters and rides, feeding times, animal photography, zoo shop plays an important role in the pride of being unique among the other attractions.

Price:

The cost of the entry is effective when considered the shows and features of the Zoo. The price is $20 per adult and $13 for the Child aged within 6-12. Students concession and group allowances are available when booked as a whole and has to be contacted the organization. They have some plans for the disabled and authorised visitors allowing a free entry for the DDR card holders.

Product:

The zoo comprises of various shows in exhibiting the wildlife of the organisation and other specific animals such as White tiger, fragile forest, wild Africa, Elephants of Asia, cat country, Orang Utan, Reptile Garden, Polar bear, Proboscis Monkeys, Rainforest Kidzworld, Primate Kingdom, Hamadrya’s Baboons, Critters Longhouse, Australian outback. It is also considered as the finest zoo in Asia and ranks top among the beautiful zoo of the world too. The animals adopt an open concept of living in the landscape and spread across the vivid and spacious environment separated for the curious spectators with wet and dry moats.

The shows are of varieties and the spark for enthusiasm lie in high potential for customers to return often in visiting the zoo. It is considered to be the world’s first zoo with night wild life park on may 26th 1994. It covers the second place for the dense forest divided among the east and west loops. An extraordinary experience with the nocturnal species of more than one thousand animals within a count of 100 species toggled in the technique of soft light of visibility.

The night safari is said to the wholesome and popular entertainment in the night attracting almost all the visitors of tourist attractions present in the city. Over the past decade it has not let itself one percent down with the novelty. It has loaded itself with four awards in the recent past including the local and international being a part of the IFEA Pinnacle award of the 2001 with a present title as the Gold winner. The Night safari process is also famous for its Gourmet safari Express.

Promotion:

The promotions of the organisation comprises of the animal photography, guided tours, Animal encounters and rides, feeding times, foods and beverages, shops in zoo, friendly facilities for the disabled and shows organised according to the periods of season. Education and conservation are part of the promotional scheme for the visitors to get involved with the social space.

The children’s world was created in the year of 1973 consisting of the play land and the animal land. The famous miniature train ride that connects the lands together and the animals are placed in such a manner that they exist in their natural habitat unlike the artificial influence and stimulation. The animal land in entitled for the children’s to play and with a real life experience as the domestic animals participate in the play. The domestic animals include the chickens, rabbits and sheep. The play land is efficiently placed with conventional equipments used for play enhancing the space of life. The children’s world has been voted the best location for the kids in the magazine “Where Singapore” inaugural concierge choice 1999 awards.

This is the first world wide entertainment promotion among the other specimens in the same category all around the world to introduce the varieties of elements such as the underwater exhibits an opportunity to view the rare animals within the short span of time as the zoo is just 37 years old. The zoo is amphitheatre centralised that was built in the year 1985 and now it has reached the heights of audience including the primate, reptile and elephant shows starting in the 1970’s and helping the launch of amphitheatre with more than 1500 to 2000 seats of accommodation.

Awards:

The awards have been contributed for the specialised services and splendid inhabitants of the zoo.

The Zoo initially started with 270 animals of about 72 species and has grown to an extent of 2000 animals contributing from the 240 species displayed in almost 70 exhibits. The awards are both local and international as listed below;

1999 – Best theme Attraction- IMA (Intensive and meetings Asia Awards)

2000 – Concierge choice awards – Where Singapore Magazine – Best place for kids

2001 – Leisure attraction of the year – Singapore Totalisator Board of Excellence for Singapore award

2001 – Singapore tourism Board (STB) – Leisure attraction the year 2001.

2002 – ASEANTA – Asean Tourism Association Awards for excellence: Best New Attraction.

Experiences:

The various attractions that are found in the organisation is said to be dimensional and are the best experience in one’s life after the visit. The new vision of administering and maintaining the species of living example and their conservation is the most important feature. The visitors all over the world have always been satisfied and this organisation has taken the pride of providing more than the cost involved per person for the entertainment.

The events organised consist of vivid ceremonies personalised according to the booking made by the individual and general events such as wedding and celebrations of specific occasions are organised in such a way that they are most remembered and considered the best in the minds of celebrated individual family. The vast number of crowds and selection of shows organised in the zoo according with the seasons play an important role for the visit of various visitors and audiences.

Marketing Controls:

Market research, customer surveys, participation, sponsorship, attendance with on-field success is considered to be the main controls of marketing generally. The e-business plays an important role in the marketing roles for this organisation. The website is specially designed to contribute al the efficiency and entertainment lively probing the customer to participate in the visit. The design of the website enhances the quality and governance of contribution in a specialized way. It also shows complete data of the zoo and further to the facts present it also allots a chance for the participation of the visitor along with the excitement offers.

Conclusion:

The overall consideration and the above report show the complete focus of the organisation. The report after the examination from the history until the latest score of the organisation considering the facts along with the advantages and disadvantages conclude that they are listed in the top ranking for the attractions world-wide. This result shows the specific activity and growth of their marketing through a new median of e-Business launching their complete attractions and consideration with a virtual view over the available charts of the organisation. The marketing strategies that actively participate in the role of increasing their growth from the past decades have contributed much to their heights of enhancement. Hence the process of growth has taken an important ride in the marketing strategy and mix along with core key of E-Business.

2.0 Introduction

Tourism if often referred as the world’s largest industry and regarded as a means of achieving community development (Sharpley, 2002). According to the World Tourism Organisation (2009), tourism is one of the world’s fastest growing industry and one of the global engines of development. One of the most popular topics of tourism is tourism impact studies toward the community. The understanding of community’s perceptions on tourism impacts is important (Ap.1992). A main reason for the rising interest has been the increasing evidence that tourism can both positive and negative impacts on local communities involved (Lankfort & Howard, 1994). Different perception from different residents can provide insight into the nature and degree of tourism impacts towards the respective tourist destination. The community perceptions on tourism impacts are likely to be an important planning for successful community development (Ko & Stewart, 2002).

The social conflict theories see society as providing a setting that generates conflicts and change. In fact, this approach emphasizes on equality and look at the extent to which such factors as race, ethnicity, gender and age are linked to unequal distribution of money, power, education and social prestige. (Macionis,2000). Equation involved a number of cases where communities are engaged in struggles with tourism developments. Social change forced by challenges of tourism can be negative as well as positive. Indeed the positive example described above went through set-backs and conflicts as part of the process. However, in several cases, increased conflict is more than a temporary blip. Conflict has arisen both within and between communities.

2.1 Doxey’s Irridex Model

In 1975, Doxey devised a theoretical model which has come to be considered as one of the most important contribution to tourism literature. In this model, Doxey states that an increase in the numbers of tourists and a more developed tourism industry at the destination results in irritation in the host community. In other words, this can lead to incompatibility of the host and the guest. This irritation can take the form of unfriendly behavior personified as resentment from the local community towards tourism. In this case the perception of the residents varies from ‘euphoria’ (a feeling of happiness or comfort) to ‘apathy’ when locals start losing interest in tourism; to ‘annoyance’ after the numbers of tourist and the unfavourable impacts have increased; and finally ‘antagonism’ (a generation of hostile reaction against tourism) (Cordero 2008).

Moreover there are cases where tourism developments have been initiated by an individual resident, or an outsider has sought to form an alliance with one or two locals, so stimulating internal community conflict. The impact of changes in social capital on sustainable livelihoods is hard to assess. But there is no doubt that particularly in such arid and relatively isolated areas, a household’s membership of the community, and the organization strength of that community, influence their livelihoods. Rural households need effectively functioning community institution to manage and mediate relations between households, and the land, natural resources, social networks and informal markets on which they all depend, and represent the community’s interest to others.

2.2 Butler’s Tourism Destination Lifecycle Model

According to Cordero (2008), although Butler’s Tourism Destination Lifecycle Model (2006) suggests that every tourist destination experience similar stages of development: “exploration involvement, development, consolidation, stagnation, decline and/or rejuvenation”.

Figure 1: Butler’s Tourism Destination Lifecycle Model (Source: Butler 1980)

The first stage in the destination lifecycle starts with small numbers of tourists who visit the area gradually due to limitation such as accessibility to the area. The numbers of tourists increase rapidly as development assume several forms depending on such factors as the availability of information, marketing activities in the area and the existence of various services and facilities. The numbers of tourists then start to decline because of the destination reaching its full carrying capacity. Butler’s model has been supported by scholars such as Akis (1996), it has been contradicted by others such as Dyer (2007). Both Butler’s Destination Lifecycle Model and Doxey’s Irridex Model are limited by their unidirectional conceptualizations.

2.3 Ap’s Model For Understanding Residents’ Reactions

According to Eagly (1993), attitude is defined as a “emotional tendency that is articulated by evaluating a particular entity with some degrees of favor or disfavor”. Development stages here are described as “embracement, tolerance, adjustment and finally withdrawal” (Ap 1993). Similar to Doxey’s and Butler’s models, this model describes the way in which tourism development affects local people’s attitudes towards tourism. Embracement takes place when local people, especially those who benefit from tourism, accept it and feel positively about its impacts. In the tolerance stage, local people start feeling more of the impact of tourism. They become divided between being for or against tourism. Depending on the degree of their involvement in tourism, some of them adjust as per the adjustment stage while others do not. Finally, withdrawal takes place when local people can no longer cope with the impact of tourism and so their negative perceptions take over.

2.4 Social Exchange Theory

Social exchange theory (SET), used here, suggests that residents are likely to support tourism as long as the perceived benefits exceed the perceived costs. SET is based on the principle that human beings are reward-seeking and punishment avoiding and that people are motivated to action by the expectation of profits (Skidmore, 1975). SET assumes that social relations involve exchange of resources among groups seeking mutual benefits from exchange relationships.

There are a number of factors influencing resident’s attitudes towards tourism development related to its social, cultural, and environmental implications that have been examined using social exchange theory. SET is concerned with understanding the exchange of resources between parties in an interaction situation where the objects offered for exchange have value, are measurable, and there is mutual dispensation of rewards and costs between actors (Ap, 1992; Madrigal,1995).

From a tourism perspective, SET postulates that an individual’s attitudes towards this industry, and subsequent level of support for its development, will be prejudiced by his or her valuation of resulting outcomes in the community. Exchanges must occur to have tourism in a community. Residents must develop and promote it, and then serve the needs of the tourists. Some community residents reap the benefits, while others may be negatively impacted. Social exchange theory suggests people estimate an exchange based on the expenses and profit incurred as a result of that exchange. An individual that perceives benefits from an exchange is likely to evaluate it positively; one that perceives costs is likely to evaluate it negatively. Thus, residents perceiving their benefiting from tourism are likely to view it positively, and visa versa. Overall, we may conclude that residents are likely to participate in an exchange if they believe that they are likely to gain benefits without incurring unacceptable costs. If locals perceive that the benefits are greater than the costs, they are inclined to be involved in the exchange and, thus endorse future development in their community.

2.5 Aspects of Conflict

Thus, by rejecting the fact that society functions to promote solidarity and social consensus, conflict theorists put forward that society is about competition for scarce resources. This competition is reflected in the social institutions themselves and allows some people and organisations to have more resources and maintain their power and influence in society. Also, residents may experience a sense of elimination and isolation over planning and development concerns of the village and they may even undergo a loss of control over the community future as ‘outsiders’ take over establishment and new development. Hotels built in massive quantity or restaurants with standardized franchise designs might collide with local standards and disrupt the aesthetic appearance of the community, harm the unique community character, and spread equality.

Moreover, as the tourism industry has expanded, there have been an increasing number of incidents whereby local people are denied their traditional rights of use to beaches, land and sea. The locals often claim that they are chased away from their lands and are denied their exclusive rights to use the beach, land and sea. The farmers are forced to move away from their original farms as soon as the area is earmarked for tourism development.

Thus the justification of this study was to probe the different type of conflicts and consequences arising from tourism in the village of Belle Mare. Tourism’s socio cultural, economical and environmental impacts are example, from the perspective of the “host” community, of the problem caused by tourism.

2.6 Socio-Cultural Impacts of tourism

Social Impact tends to consist change occurring in the everyday life of the society and the adaptation to the existence and operation of the tourism sector. Socio-cultural transformations engendered by tourism on host communities include changes in traditional lifestyle, value systems, family relationships, individual behaviour and community structure (Ratz 2000). Social Impacts are transitory changes with cultural impact tend to take place in the long term (Teo 1994). Substantiation from numerous assessments of tourism impact reveals that tourism activity and development have both positive and negative impacts on local communities and their cultures. In simple term, Wolf (1977:3) states that Socio Cultural impacts are “People Impacts”; they refer to the positive and negative effects on the Host population of their direct and indirect association with tourist. An extensive interest emerged as early as 1970’s in the mechanism providing significant changes in the human environment leading to either an ameliorations or deteriorations in the quality of life of the local population

Socio-cultural impacts relay to changes in societal value systems, individual behavior, social relationships, lifestyle, mode of expression and community structures. The focus of socio-cultural impacts tends to be on the host community, i.e., the people who reside in tourist destinations, rather than the tourist-generating region. Mathieson and Wall (1982), state that socio-cultural impacts are the effect on the people of host communities, of their direct and indirect associations with tourists.

The socio-cultural impacts of tourism can be both positive and negative (Swarbrooke 1999). He argues that the negative or positive impacts are determined in accordance with factors such as the structure of the local community and its own culture, the facilities subsidized by the public sector to reduce the negative impacts, the nature of tourism at the destination and the degree of socio-economic development. Thus the perception of impacts can differ by factors such as community attachment, dependency on tourism, age, gender and education. With regard to community attachment, most studies have accomplished that the longer, a host has been resident in the area, the less they like tourism that is they are less ‘attached” to tourism (Jurowski 1997, Weaver 2001, McGehee and Andereck 2004)

Many researched have been conducted in the area of socio-cultural impacts, with conclusion being divides into the following categories: the negative consequences (Dogan 1989), the positive consequences (Brunt 1999) and no real social impacts (Liu 1986). Some studies assert that tourism can make both positive contribution to the sustainability of local communities particularly by increasing levels of economic welfare and well being. But on the other side of the coin, it seems to put forward that the interaction of tourism with the common activities of local communities is potentially harmful. Overall, residents appeared to be strong agreement that tourism brings positive social benefits which they can enjoy. Specially, these include items such as variety of entertainment available to resident, interacting with visitors as a valuable experience and the variety of cultural experience that tourism provides. Given this possibility, it is therefore no wonder that a majority would be in favor of increased tourism development. The overall positive attitude towards the social impacts is not surprising and can be explained by social exchange theory which assumes that potential beneficial outcomes will create positive attitudes towards tourism (Jurowski and Gursoy 2004). Similar findings were reported by Lankford et al (2003) who found that residents’ attitudes will be positive if they can use tourism resources. Given the fact that the community is largely dependent on tourism, the theory is therefore supported.

2.6.1 Positive Cultural Impacts of Tourism

Throughout history, culture is a significant motivator in arousing Man’s curiosity to travel from one country to another. Tourists want to appreciate the uniqueness of aspects of culture of various sections of our heterogeneous population. However, in the very broadest sense, culture can be understood as the whole way of life that is vital for the survival of a specific group or people living in a specific society. Thus, culture can be the dominant values that give direction for the day-to-day activities of people in society, comprising of the symbolic values and beliefs, intellectual and artistic achievements, traditions and rituals as well as the dominant patterns of living.

Arts and Handicrafts

From one side of the coin, tourism contributes in the conservation of Archeological and Historical sites, Arts and Handicrafts, Customer and Traditions in our country. Special mention should be made to Arts and Handicrafts for tourism in Mauritius as it has paved the way for the success of this particular sector. Every year the arts and Handicrafts sector produce a variety of ‘souvenirs’, higher-quality carvings, and hand made Artefacts to satisfy the demands of our foreign visitors. In order to attract more tourists, architectural and historical sites are restored and protected (Inskeep, 1991; Liu and Var 1986).

Souvenir is perceived as authentic reminders of a particular place are powerful signifiers of ideological meaning. It can be used as reminder of a particular place, as a symbols of certain cultures and religions and also as a reflex of social processes, interest and power relations. In certain societies the souvenir is important, not only as a cultural artifact but also as an analytic tool for understanding complex social processes.

Culture Expression

Tourism is the edge for cultural exchange, facilitating the communication between residents and visitors (domestic and international). Economic benefits aside, outside contacts draws awareness to the host community. People want to interact with other culture, learn about traditions and even confront themselves with new perspectives on life and society. Tourism has brought villagers into closer contact with the outside world; residents come into contact with ideas of the wider world, partly by talking with tourists. Tourism also helps to encourage interest in, and conserve aspects of, the host’s cultural heritage, which contribute for additional income for the destination as well as for the individuals and local business. Moreover, many people of different cultures come together by means of tourism facilitating the exchange of cultures (Brayley et al, 1990).

Tourism is normally an experience driven industry, and local culture is a sole experience, more so local personality, hospitality and food than “built attractions”. The more one knows and learns about a destination or its culture the more fulfilling the experience will be. Tourism can also help to promote a sense of community pride when they visit a specific location for a reason. However, community pride is generally related to economic prosperity with prosperous community more likely to take pride in their district. Well-presented towns and well-maintained facilities help visitors to feel welcome and can contribute to community pride, as Belle-Mare is one among them.

2.6.2 Negative Cultural Impacts

Negative socio cultural impacts are sometime the result of direct contact and the demonstration effect and these can distort the traditional behavior and customs. Tourism has also been criticized because it creates anxiety and can be a source of inter-generational stress. There are also other instances where cultural tourism has resulted in the commercialization of customs and traditional ceremonies. Tourism may also be related to increased crime, drug, prostitution and aids beyond a certain volume it can be a source of antagonism (Doxey, 1975). As stated by McNaughton (2006), tourism has the potential to create inequality and social tension. Sing-Cheong (2007) state that the tourism industry and globalizations are crossing borders between nations and cultures, resulting in many socio-cultural consequences.

Trivialization

It refers to the conversion of aspects of culture into a commercialized form of entertainment for tourist. A very famous example of trivialization refers to the sega in Mauritius.

The sega is mostly from the African music of the old slave days. It was being sung by the slaves to lament their loss of freedom and removal from their homes or loved one. Today the sega is a commercialized form of entertainment performed in a “polished style” by professional troupes in Hotels and Restaurants. The traditional musical instrument – The Maravanne, The Ravanne, The tambourine, and The Triangle have been replaced by sophisticated contemporary influences and instruments with a view to develop culture. The sega has lost its natural beauty, they turned out to arouse the inner feelings of the tourists.

Religion

The World Tourism Organization recognizes religion as significant motivator in arousing Man’s interest to visit religious sites of country to country. Holy places such as, Jerusalem, Mecca and Medina are famous religious visiting sites of the world. In Mauritius the Grand Bassin sacred lake remains a famous visiting site for tourist. It is essential to organize marketing campaigns so as to raise awareness of other religious sites such as la Cathedrale Saint Louis, Le Temple Kaliamen (Kalaysson), La Jummah Mosquee, Le Marie Reine De La Paix and Le tombeau De Pere Laval in Mauritius. To recall tourists in Mauritius are free to visit any religious shrines – provided they are dressed properly i.e mo shorts, no mini skirts, removal of shoes at the temple and mosques are expected code of behaviour for visitors.

Tourist Behaviour

Tourists often, out of ignorance or carelessness, fail to respect local customs and moral values, when they take a quick snap shot of the labourer or fisherman without asking their permission. When they do so, they can bring about irritation and stereotyping and can also invade the local peoples’ lives.

Crime, Prostitution and Sex Tourism

The relationship between tourism and crime is hard to ascertain. But crime rates naturally increase with the growth and urbanization of an area, and growth of mass tourism is often accompanied by increased crime. The existence of large number of tourists with lots of money to spend, increases the attraction for criminals and brings with it activities like robbery and drug dealing. The commercial sexual exploitation of children and young women has paralleled the growth of tourism. Belle-Mare has become a victim of this act as apartments are being rent on a timely basis. There are as well sources of contact, prostitutes and pimps are commonly citied as sources of aids in Mauritius. Though tourism is not the cause of sexual exploitation, it provides easy access to it.

The Demonstration

The main impacts of the tourist host relationship are the demonstration effect, when the host behaviour is modified in order to imitate tourists (Duffield and Long 1981; Crandall 1987; Pearce 1989). Youth are particular susceptible to demonstration effect particularly in term of changing dress behaviour, spending extravagantly on consumption and so on. As such tourist host interaction constitutes only one factor for change in attitudes, values or behaviour. There are as well other significant agents of demonstration effects such as radio, internet, print media, increased traveling, television and videos.

Access to Beach

Though Mauritius has a number of potential inland attractions, beach visitation remains a popular leisure activity of Mauritians. The rapid expansion of hotels and campement along the coastline has snatched away the rights of the citizens to walk freely or enjoy the attractiveness of their beaches. These are subtle mechanisms at work to deter locals to access quality of the beach. The residents are as such not against tourist but rather against the restriction. The local people express a feeling of fear and frustration as more hotel and campement construction will impinge further Right of Future Generation.

2.7 Economic Impacts of tourism

Tourism was encouraged first because of its economic impacts. Tourism is an engine for generating a range of new private and public income opportunities. The most immediate and direct benefit of tourism development is the creation of jobs and the opportunity for people to increase their income and standard of living in local communities. Hence local communities turn to tourism as a means of raising income, increase employment and living standards (Akis et al., 1996). These impacts are observable as tourists interact with the local economy, and community. Hence, it is apt to consider the impact of tourism under the heading of economic impacts. The economic impacts of tourism are the most widely researched impacts of tourism community (Mason, 2003). Economic impacts are easier to research in local community because it is small and generally easier to assess. The impact can either be positive, beneficial, or negative and detrimental to local community. Tourism can have positive economic effects on local economies, and are visible impact on national GDP growth. It could also an essential component for both community development and poverty reduction (Ashe, 2005). The economic impacts of tourism are therefore, generally perceived positively by the residents (Tatoglu et al., 2000).

Economic impacts are one of the most researched areas of tourism. As Pearce (1989) put out:

“Studies of the impact of tourist development on a destination or destinations have been the largest single element of tourism research

aˆ¦aˆ¦much of this is predominantly the work of economists and has concentrated on the effects of income and employment.”

Tourism has many linkages with other economic sectors, and if incorporated into national development plans with sufficient provisions for inter sectoral linkages, it can contribute to the growth of all tourism-related activities in all of the major economic sectors – agriculture, including fishing, manufacturing and services, including transportation. Hence economic impacts are associated to and cannot be easily alienated from other types of impacts. All economic developments pertaining to tourism have effects on the society, economy and the environment.

2.7.1 Positive Economic Impacts of Tourism

Tourism has been a landmark in the development of Mauritian economy. Our country has passed through several distinct phases and in the process, has successfully diversified from a Monocrop culture highly dependent on the Export of sugar into Manufacturing, Tourism and Financial sector.

Contribution to GDP

The National income or Gross Domestic Product (GDP) is one of the most important measures of the pecuniary consequences of Tourism. As the largest component of tourism industry, hotels and restaurants, inevitably reflects a fair idea of overall tourism contribution on the economy. Data from the Bank of Mauritius indicate that gross tourism receipts for the first nine months of 2010 were Rs 28,167 million, i.e. an increase of 9.7% compared to Rs 25,685 million for the same period of 2009, (Table 1).

Increase Opportunities for Shopping

Another argument for the growth of tourism industry is that it gives local people the opportunity for more shopping. This is so because with the development of tourism, there are more and more shopping centers, supermarket, shops, restaurants and many other business units which are setting up in Belle Mare, as providing them with first class services for both the local as well for the foreigners.

Tourism As An Employer

Tourism as a highly labour intensive service industry offers a wide range of Direct Employment and Indirect Employment. With the setting up of different hotels, restaurants, bungalows, shopping centers, supermarkets and many other businesses in Belle Mare, have help to curb the unemployment problem. According to the survey of Employment and Earnings conducted by the Central Statistics Office, direct employment in hotels, restaurants and travel and tourism establishments employing 10 persons or more stood at 27,161 at the end of March 2010 showing an increase of 0.6% over the figure of 27,002 for March 2009. Of this number, 20,847 or 76.8% were engaged in hotel, (Table 2).

Improve Transport, Infrastructures and Public Utilities

The development or improvement of infrastructure constitutes an essential economic impact of tourism development in Mauritius. Urbanisation caused by rapid development of tourism might improve governmental and local services such as police, fire and security (MIlman and Pizam 1988). In addition the variety of social entertainment and recreational activities may increase in such areas. Usually the gains from infrastructural investment leads to good electricity and water network supply, improvements of roads networks and modernization of Airport are widely shared by other economic sector, tourist and hosts of the country

2.7.2 Negative Economic Impacts

According to Schianetz, Kavanagh and Lockington (2007), while tourism provides financial benefits, it can also generate negative effects in other areas. An impact of tourism is generally evaluated negatively, it is concern for the welfare of the community as a whole and cooperation among its citizens is decreased markedly as tourism increases and incomes rise.

The Land Market

The very expansion of tourism development has increased land values especially in some coastal tourist village. Increasing demand for accommodation, especially in tourism seasons, might push up the rents as well as the land prices for building new houses and hotels (Pizam 1978; Var et al, 1985). For example, lands for residential development in Belle-Mare were sold in 1987 at an average price of hundreds per square meter but in 2010 the land valued is within millions per square meter. Tourism is yet only one factor for escalation of land values-speculative attitudes have been endangered by the increasing influence of the host population and by a realization that land is a scarce resource in small island Mauritius are potential significant factors to take into consideration.

Inflationary Pressures

Tourism is a contributor to inflation by preempting supplies, leading to higher prices of consumer items especially fresh fruits and vegetables, and fresh fish in tourist zone. Even Liu and Var (1986) argue that the price of goods and services might go up with the increased demand from foreign customers. A vivid example of this situation is Belle-Mare where random price checks show that consumer items are up to 30% higher in the coastal region than in other village. Resident argues “Belle-Mare” has become very expensive, with the same price charged to resident and tourist alike. There exist a feeling of frustration among residents of tourist zone who felt deprive of some consumer items. Tourism make upon only one factor of inflationary pressure is the unavailability of items in Mauritius.

Important goods

There are other short-term economic costs that may result from tourism. If tourism development is heavily reliant on imported goods and services, there is a risk that existing local production may be hit adversely. This effect can be particularly significant if demonstration effect results in the local population copying tourists and increasing their consumption of imported goods and services rather than domestically produced ones.

Infrastructure Cost

Tourism development can cost the local government and local taxpayers a great deal of money. Developers may want the government to improve the airport, roads and other infrastructure, and other financial advantage, which are costly activities for the government. Public resources spent on subsidized infrastructure may reduce government investment in other artificial areas such as education and health

2.8 Environment Impact in Tourism

The environment is being increasingly recognized as a key factor in the tourism sector. In the last decade of the twentieth century, it has been noted that tourism depends ultimately upon the environment, as it is a major tourism attraction itself, or in the context in which tourism activity take place (Holden, 2000). Tourism and the environment are directly linked since the idea of tourism is based completely on man’s desire to get out and experience nature.

The term environment is often assumed to be only the physical or natural features of a landscape but according to swarbrooke, 1999, there are five aspect of the environment, namely, the natural environment, wildlife, the farmed environment, the built environment and natural resources. Among these, each component are linked together.

If tourism is not well planned it can result in the following consequences for the environment:

Land Resources

Since there is a rapid development in the tourism sector, there is a high use of land resources to cater for the demand of recreational facilities as well as construction of tourism accommodation and other infrastructure and consequently the natural landscape is threatened through deforestation.

Sewage and Littering

The construction of hotels, recreation and other facilities often leads to increase sewage and littering. Waste water has polluted seas and rivers surrounding tourist attractions, damaging the flora and fauna. There is also wide use of toxic pesticides on the beaches to control sand files and other pests. The chemical ends up in the sea in a very short time, thus sewage and littering can degrade the physical appearance of the water and cause the death of marine animals.

Pollution

Besides the consumption of large amounts of natural and other local resources, the tourism industry also generates considerable air, noise and sea pollution

2.9 Summary

Thus we can say that in Mauritius, a more appropriately planned tourism development process is needed which would spread both costs and benefit more equitably as well as be more sensitive to the social and cultural impacts. This would not only reduce for local resid

Decision making is a necessary process in every day business. It is a basic activity that needs to be done in order to achieve short-term and long-term goals. More often than not, success or failure of an organization to achieve goals is dependent on the decisions that organizations do for performance management purposes. Hence, it is imperative for any organization to implement various decision-making tools and techniques in order to come up with the best possible decision.

Effective decision making is critical to organizational survival; hence managers tend to seek ways to come up with the optimum decision. Intuition and serendipity are the bases for decision making in research and analysis. The manager’s previous experience may be a valid basis for decisions if this has been effective to achieve past goals. Likewise, the organization can also derive techniques from experiences of other organizations. The organization can adopt philosophical insights to apply to its own decision making needs.[1]Thus, these could also be the bases for decision making that the healthcare professionals and organizations need. In this paper, I present decision making tools and techniques that healthcare organization like EUPHA use. Moreover, alternative tools and techniques that could have been used will also be presented. At a final note, the most effective decision making technique will be recommended based on the special needs of the organization.

Decision making: Concepts and Definitions

Decision making in health policy involves process of consultation of all groups involves in health policy-related issues. The main groups that consist the decision making body include the government, medical professional’s association, hospitals, and health insurance companies. The decision making process for healthcare research and policy is directly influenced by the national government. This process is composed of the following characteristics: government leadership, multi group mechanisms and professional organizations.[2]

Creative approach to decision making capitalizes on its bases- intuition and serendipity. However, concrete analysis of information is necessary before considering the final decision especially for health research associations. Experimentation, research, and analysis are among the most effective and scientific means to choose among alternatives. Likewise, decision makers can evaluate alternative decisions through various decision making tools and techniques.[3]

In the next section, decision making tools and techniques are discussed one by one. The following techniques are used for the managerial needs of healthcare professionals. Each has its special uses, advantage and disadvantages based on the needs of the health organizations.

Considered Opinion and Devil’s Advocate. In this technique, the manager obtains considered opinion of experts and use “devil’s advocate” technique to bring forth arguments for and against alternative. The management team assesses several alternatives and develops arguments. Each alternative us tested through frank discussion among members of the department. Having considered different points of view, the decision maker then selects the course of action based on the resulting comparative assessment. The advantage of this technique is that alternatives are subjected to strict, internal, and organized criticism even before implementation. However, the devil’s advocate is not an actual decision making process; rather it only makes sure that each alternative was presented and evaluated thoroughly.[4]Another disadvantage of the technique is that it is vulnerable to personal bias and subjective judgment.

Factor Analysis Matrix. The alternative decisions are compared via a table or matrix. Under this method, the decision maker develops criteria under two categories: essential elements and desired elements. The factors named are designated with relative weights and the alternative with the highest weight is rated as the best option.[5]The advantage of this method is that it is an effective means to eliminate personal preferences and biases for a closer chances of coming up with impartial decision.[6]The disadvantage for this method, on the other hand, is that some factors may be overlooked and not be given weights that these factors deserve.

The Decision Tree. This is another decision making tool for healthcare managers that is used to trace possible actions that may occur from various decision points. The decision tree encourages the manager to trace possible events with respective notation of the probabilities associated with each. The decision tree includes the basic decision and the events rooting from this decision.[7]The advantage of this technique is that it forces managers to delineate reasoning, undertake disciplined speculation of consequences, see possible constraints, and weigh the situations.[8]This technique is particularly useful for managers who have intense personal investment on the decision to minimize emotional barriers and to come up with objective decision.[9]

On the other hand, the disadvantage of this technique is that it is imperative that the decision maker has all the valuable information necessary in constructing a decision tree. Misleading information can tremendously affect the accuracy of the decision about to be made.[10]Moreover, it cannot foresee external factors that may alter expected results and only one perspective, the decision maker’s perspective, is considered. Hence, the manager should not be short-sighted and should also see the picture in a wider perspective in order to anticipate the series of events from the basic decision in order to consider the most number of relevant possibilities. Likewise, this is also achievable if the decision maker has succinct information to support the consequences foreseen to occur.

Operations Research. Operations research is the application of scientific method to observe a problem, process or operation. It is a quantitative problem solving decision making tool with the use f mathematical models to management problems.[11]First among the steps of this technique is problem formulation wherein the problem is stated without predetermined judgment and notions. Second, mathematical model or conceptual model is constructed through equations and formulas representing critical factors of the problem under observation. Third is the manipulation of variables to develop and assess alternative situation in terms of predetermined criteria. There are various types of operations research.[12]

Simulation is the observation of the process with the use of a model or representation. In the process of developing the model, the manager seeks to gain additional information especially on the uncertainties of the situation. The manager focuses on these uncertainties and measure the degree of chance associated with each.[13]This technique compensated legal, ethical and economic constraints to manipulate reality in order to observe. Hence, models are logical but rather simplified representation of the relevant aspect of reality and ranges from simple physical models to complex mathematical equations. Healthcare professionals, for example may use physical models such as a model of a body organ.[14]

Gaming is the simulation of competitive situations in which situations are represented in a competitive manner to influence the manager’s decision. This decision making technique is used to derive human decision but can sometimes be computer-assisted. On the other hand, Game theory is one branch of mathematical analysis of conflict and strategy and is associated with the concepts of zero sum games and minimax strategy. However, this remains undeveloped because of complexities once the number of contestants and rules increased.

Another type of operations research is stochastic simulation, a model designed to include elements of randomness. Since the variables are uncertain, at least a sample of their values may be assigned through the development of statistical distribution pattern. Hence, the healthcare manager can simulate, for example, employee absenteeism, patient arrivals, and equipment failure.

The last type of operations research theory is waiting line and Queuing theory. Demand for healthcare products and services fluctuate. Hence, the manager must balance cost of waiting lines with that of the cost of preventing waiting lines through increased service. Waiting lines are common especially in hospitals where patients have to wait in lines for queues. Waiting line or Queuing theory is useful for analyzing situations in which units to be provided for services are relatively predictable. The three basic components of this theory include arrivals, servicing, and queue disciplines. Furthermore, arrivals are divided in three categories: predetermined, random and combination. Servicing is the focal point of analysis in terms of the number of units and time needed for each pattern of distribution. Lastly, queue discipline is the analysis of patterns of the waiting line including average minimum and maximum wait, number of lines and which units are often selected for service. The analysis of such information helps the manager to overcome negative aspects of waiting lines and to minimize the cost to the organization.[15]

The main advantage of operations research compared to other decision making technique is that it offers various methods of implementation. Each type may be selected based on the needs and resources available to the organization. Otherwise, all of the methods are implemented on scientific methods and objectivity is rest assured by quantitative methods of analysis. However, the main disadvantage is implementation of any operations research is the high costs, time and expertise necessary for the implementation.

Healthcare Professionals as the Decision makers

Healthcare professionals often face managerial roles in their organizations. With these two-fold roles, there might be conflicts on decision situations depending on how these situations are viewed. It is essential for the professional to learn how the perceived needs of the department must be balanced with the needs of the organization as a whole. While it is impossible to always get agreement with the organization as a whole, conflicts will be avoided through maintaining balance between the interests of the parties. After all, the departments’ interests are expected to be bounded by the goals of the total organization.[16]

Moreover, healthcare professionals and organizations face special challenges in terms of decision making. In their case, decision making becomes more complex than ever. Factors contributing to this increasing complexity include rapid growth of research knowledge, technological sophistication, and complex laws. These factors make decision-making in the healthcare sector more and more daunting.[17]

While others claim that research can help in decision making in the healthcare sector, in reality, it makes decision making a complex task. Hence, not only research expansion is needed. What is more necessary for this sector is to deepen health research policies.[18]For the meanwhile, this can be dealt with the use of decision making tools mentioned above.

Healthcare professionals and organizations may implement considered opinion and devil’s advocate. This can be used through professional sharing when different perspectives from experts are available. This also encourages collaboration and takes foundation on the expression that “two minds are better than one.” This can be used simultaneously with combined options technique in order to consider the possibility that the options may not be mutually exclusive. Two factors being considered may be implemented and come to one marginal and marginal value.[19]

Factor Analysis matrix may be used by healthcare professionals and organization when decision making is based on one perspective only. This can be seen as an argument within one’s self. Likewise, this can be combined with morphological box. This shows one aspect of the problem in relation to others. This box is technique that presents easy-to-evaluate form for analyzing problem and evaluates suggested solutions.[20]

However, among the decision making techniques, the most appropriate to use by the healthcare professionals and organizations is operations research. The sector needs scientific methods in coming up with significant decisions to healthcare management. Regardless on the type of operations research type, the organization can choose the type based on the needs of the situation. Simulation and waiting line and queue techniques may be the most useful among these types for the healthcare sector. However, high costs of this technique must be given attention.

Faulty decision making is usually made haphazardly. Hence, decision making should be made through intensified planning and implementation of a wide variety of decision making tools and techniques. In the end, the most effective decision making technique is: 1) the one that will assure objectivity and eliminate personal biases and predetermined judgment; 2) satisfy the needs of the decision maker; and 3) bring about the most appropriate decision. It is dependent on the actual organization and the decision making situation. Even after the decision has been made, evaluation and monitoring should also be considered.

Introduction

This assignment is about the tourism industry in France, includes its tourism historical context, migration, population structure, language hosts use within France and local hosts’ religion. Furthermore, it will mention about the development of tourism, transport and rural development. It will also talk about France’s seasonality and their employment. Besides, it will talk about how EU policy and politics that relevant with France’s development of tourism.

Metropolitan France is located in the Western Europe, extends from the Mediterranean Sea to the English Channel and the North Sea. It is nearby Belgium, Spain and Italy. France is at the southeast of United Kingdom and link with it by English Channel. Furthermore, France has few numbers of territories around the world, which included French Guiana that at Northern South America, nearby by the North Atlantic Ocean, between Brazil and Suriname. Guadeloupe and Martinique situated at Caribbean island. Reunion that is an island located in the India Ocean at southern Africa.

Tourism: the historical context

The earliest of tourism found in the France is in the 17th and 18th centuries, which called The Grand Tour, which undertook by mainly upper class European young men for education purposes, such as foreign languages, cultural and art of the destination, riding and dancing etc. At 18th century, the pattern started to change, people changed their purpose from Grand Tour to health tourism, spa holiday. In France, there were Aix-les-Bains and Vichy etc spa town provide specific facilities for health and leisure to its visitors, and they were mainly come from upper classes as low class people cannot afford at the beginning, but middle class visitors later.

Vichy is probably the best-known of French spas, although it now attracts fewer wealthy foreign clients than the era prior to the Second World War. (Boniface B and Cooper C, 2005, p. 205)

At the beginning of 19th century, people started to move from spa holiday to seaside resort for medical reasons as drinking sea water can fight various disease or disorders, but entertainment soon instead of the purpose of medical reasons. From the middle of the 19th century, there is trend of the increasing number of middle-class tourists travel to seaside resort by following upper class footstep, they are mainly families with children, which lead more and more of the French coasts to be developed for the tourism industry, the French Riviera and the north coast of France from Boulogne to Cherbourg. Alpine resorts start to attract tourists from the end of the 19th century during the period of the winter. Ski resort soon became popular, and France became one of the popular destinations for skiing holiday.

The French Apls have become Europe’s most popular winter sports destination, attracting domestic and foreign skiers alike. (Boniface B and Copper C, 2005, p.207)

Migration, population structure, language and religion

According to Migration Policy institute 2004, there are 140,033 people flows into France from other countries. 64.4% are from Africa, 8.7% are from Americans, 16.6% are from Asia, 9.8% are from Europe, 0.3% is from Oceania and 0.1% is from unknown. According to CIA world fact book 2009, the total population in metropolitan France is estimate 62,150,775 (July 2009), 18.6% of 0-14 years old (6,129,729 male and 5,838,925 female), 65% of 15-64 years old (20,963,124 male and 20,929,280 female), and 16.4 % of 65 years old and over (estimate 4,403,248 male and 6,155,767 female, 2009). The official language people use in France is French. However, few numbers of people still using regional dialects such as Provencal, Breton, Alsatian, Corsican, Catalan, Basque and Flemish, which declining rapidly recently. According to CIA world fact book, Roman Catholic is the mainly religions in France, which is 83%-88%, 2% are Protestant, 1% are Jewish, 5%-10% are Muslim and 4% are unaffiliated.

Agriculture, tourism and rural development

France is one of the countries with well developed rural tourism with 80% of rural areas in French territory (Sources, 2005) which bring the economy profit to the country and rural area.

In 2005, tourism consumption in France amounted to 108.11 billion euros, of which about 59 billion for the residents. The share of rural areas in terms of tourism consumption represents 19.3% or about 20 billion euros. (Source, 2005, author’s own translation)

The most popular rural tourism activities is camping and caravans in rural areas. Except French people always go to camping and caravans, foreign tourists from other countries like United Kingdom are also like to visit France for camping and caravan during the summer, especially is for educational purpose such as Scout.

The Federation du Scoutisme Francais lobbied the government for the recognition of their training and qualifications resulting in the 1998 act regulating camps and activities organised by recognised French Scouting Associations (ScouteBaseUK, 2007)

Rural tourism started develops at 1950 on France as the government noticed the potential value of it. In France, there are varieties of activities for rural tourism for instance, Gites, Logis de France, Chambres d’Hotes, Fermes-Auberges, food and drink as heritage, Crafts, ecomisees and loisirs Accueil, these examples are successful and inspired by public sector and mainly is supply accommodation, food and drink during people’s holiday by the traditional way. (Swarbroke J, 1999a, p.164-165)

Food and drink as heritage’s instance is alcoholic beverages, and Vineyards is famous area for alcoholic beverages, this activity is all about observation of grapes growing and being harvested, wine production, tasting and visiting wine cellars, even buy wines. (Sznajder M and Scrimgeour F et al, 2009, p249)

According to Rural tourism International, the most visited areas in France for rural tourism are located in the Mediterranean area, for instance Dordogne, Provence, Pyrenees, Massif Central and the Alps etc.

Seasonality and employment

France is the major destination that at the top of the rank on International Tourist Arrivals by according to UNWTO 2009, which had 79.3million tourist arrival, and the international tourism receipts is 55.6billion that rank at third.

Traffic volume in France link with school holiday tightly as families can take their children go holiday, like Christmas, New Year and summer holiday. In winter, French people will go for winter sport holiday with their families all the time, and their favourite destination is the mountain, and the transport they used for travel majority is car, therefore, it leads heavy traffic during these times. Furthermore, July to August traffic volume really busy as well as overseas tourists will visit France during summer.

Accounting to the Observatory of Tourism, 39.5% of French people travel on holidays at least once during the winter season. The favourite destination during this period of the year is mountain, with 21.7% of overnight stays. (Bison Fute, 2009)

Sources: Bison Fute, 2010

According to Eurostat, the employment rate in France is gradually increased from 59.6% (1997) to 64.9% (2008), and decrease to 64.2% (2009). The average working hours for full time jobs per week are 41.Besides, the unemployment rate in France from 9.1% (March 2009) increase to 10.1% (February 2010).

Different than other European countries, tour operators and all inclusive holiday is not popular in France as many of French people like to plan their domestic holiday on their own than travel abroad. Furthermore, they travel by car for mainly rather than flight, about 80% of French people travel by car. Therefore, there are not much jobs provide by tour operator for local people, only 5% of the total people working in the whole tourism industry. (Pompl W and Lavery P, 1993, p.214) However, other areas in the tourism industry like accommodation, attractions did provide lots of jobs opportunities for local people.

Transport and development; Spatial patterns of travel

Transport is always important for travel to and within the destination, and the development of the transport leads people can reach their destination easier and quicker. There are different modes for transport, include road, rail, air and sea. Tourists mainly use air transport for further destination, however, the growth of low-cost airlines lead more and more tourists use air transport as this is a lots quicker than the other method of transport in the recently years. France has both international and domestic airports, which is really accessible for inbound, outbound and domestic tourism. Road transport is the earliest transport in the world and still very popular for domestic travel and within Europe, this includes cars, buses, and caravans etc. However, buses are becoming out of date even it is the cheapest way to travel, and only for short distance as it is not comfortable than the other method of transport and slow. Car travel for domestic tourism in France is really huge as France has variety of resources for different types of holiday, even special interest holiday, includes skiing, beaches, food and drink, urban and rural etc holiday.

Transport by car dominates tourism in France, accounting for two-thirds of inbound tourists and almost 80 per cent of domestic holiday (Boniface B and Cooper C, 2005, p.198)

Rail transport is popular for domestic travel and within Europe. The development of high speed train increase the numbers of people travel by train as it is faster and comfortable than air transport. Domestic travel within the France by rail transport is also common as the network of high speed train did cover some of the main cities in France, which leads it easier to access.

These Run mainly on dedicated track at speeds of 270 kilometres per hour, linking Paris to Lyon, Lille, Mantes, Bordeaux and Nice. (Boniface B and Cooper C, 2005, p.187)

Sea is the other method of transport, however, it may not as popular as the other mode of transport as it took longer to reach the destination, and cost a lot more than the other, especially is cruise. However, there are more and more cruise holiday to France recently, mainly come from Britain.

Cross-Channel ferries are the preferred transport mode for tourists from Britain. (Boniface B and Cooper C, 2005, p.199)

Relevant EU policy and politics

There is not any EU policy is particular for tourism, nevertheless, there are some EU policy for environment, transport, employment and development which link with tourism industry tightly. Under the employment policy, there is a harmonisation of qualifications to improve the quality of service within the tourism industry through European Social Fund (ESF) to support training course in tourism, these training are mainly for catering and hotels. Furthermore, rural development policy are support by the European Agricultural Guidance and Guarantee Fund (FEOGA) for helping farmers expand their income sources and improve their farm accommodation and infrastructure etc, which could help develop the rural tourism activity. Beside, the environment policy is to protect nature resources and habitats, and reduce the pollution, for instance noise, air and water etc. The policy is also aim to improve the environmental for better quality holiday for tourists. In addition, the transport policy is very important to tourism industry as they are inextricably linked. (Fitzpatrick Associates, 1993, p.56-80)

Conclusion

Overall, France is one of the earliest countries to develop tourism and is one of popular destination in the world nowadays as France had variety of natural resources for different tourism activities, thus, France’s domestic tourism is huge. French people travel by car mainly, so it causes high volume of traffic during the periods of school holiday as most of them go for domestic tourism. However, the huge domestic tourism leads the lack of people require all inclusive holiday and tour operator, hence tour operators in France cannot provide many job opportunities for French people. Rural tourism in France is well developed as well as France has plenty of rural areas for tourism and developed nearly 60 years, which appeal to both of French people and foreign tourists. The popular examples for rural tourism are camping and caravans. There are different modes of transport for getting to and getting around with France and cars is the most popular one. However, for long distance destination are mainly by flight. Beside, high speed train became more and more popular in France gradually as it is a lot comfortable and accessible. There is not any particular EU policy for tourism, but there are environment policy, rural development policy, employment policy and transport policy which linked with tourism closely.

At the moment, in Europe, the rural tourism is concerned with some problems such as: sustainable regional development, a balanced path regarding the economic development and environment protection, establishing rural policies which go beyond the agricultural dimension and integrate all the problems of rural areas. The agriculture is not limited only to ensuring the food for the population; it must contribute to the development of rural areas, and also, it represent an indispensable support for the rural tourism. There is a strong relationship between agriculture and environment: it does not exist rural environment without agriculture and agriculture cannot be done in a ruined environment. In Romania, rural tourism is an economic activity concerning the development of tourism in rural areas. We can appreciate that it exists a strong connection among tourism and other activities of local economy, especially the agriculture. In Romania rural tourism took place from a long time but occasionally. Until 1990, due to the restriction to accommodate foreign tourists in private houses, rural tourism was ignored. After 1990 the rural tourism revigorated many investment being directed toward the improvement of the houses. In the year 2002, in the accommodation structures from rural Romania 137 000 tourist spent their vacation, from which 20 000 foreign tourists. The motivations varied: the beauty of Romanian landscape, the return to nature, the knowledge of tradition, Romanian culture, practicing certain sports (hunting, fishing, mountain climbing). Rural tourism in Romania represent a mean to capitalize the rural environment with its agricultural, tourist, human and economc potential. For this reason Romania must regard the rural tourism in its policies toward sustainable rural development.

1. The Evolution of the rural tourism in Romania

Currently Europe is dealing with several problems, among which rural tourism has a great importance: providing a well regional development, guaranteeing a balance between economic development and environment` protection, creating some rural policies, which should contain all the problems related to the rural space. Though agriculture nowadays cannot be limited to providing people with food, it must contribute to the rural space development and to constitute the support of rural tourism. Rural tourism represents one of the best ways to combine tourism demands with environmental protection and sustainable development [1] .

Rural tourism is a new phenomenon and an old one at the same time. Rural tourism represents one of the first ways of tourism manifestation in Romania. It was applied since early times, along with traveling, horse or nautical tourism. During its historical evolution, tourism has had ups and downs, but it has never disappeared. By late 20th century, rural tourism has had a spontaneous and periodical character and has made itself noticed through some participation in a series of events in rural, traditional communities near abbies or churches. But today, we can see a new gusto of rural tourism. The motivations which make tourists choose certain boarding house are the following: the wish to return to nature, to a traditional way of living and habits, the lack of tense programs, the price conditions, the quality of the human element.

Compared to other types of tourism, considered to be the modern ones (business tourism and cultural tourism) rural tourism has had in the late `90s a new stage of development. In Romania, there isn’t just a high tourist potential, there’s also a great experience in the field, the first tourist villages were organized in 1967-1968. In 1974 foreign tourists’ accommodation in private housing and tourist villages was unavailable for international tourism [2] . After 1990 the interest in rural tourism revives. A series of associations and organizations were created which through their objectives were willing to contribute to tourism expansion in the rural areas: The Romanian Federation of Montane Development (1990), Romanian Agro tourism Agency (1995) and National Agency for Ecological and Cultural Tourism (1994).

2. The rural tourism and agro-tourism

Although it seems simple the notion of “rural tourism”, which is elaborated in the rural environment, the definition does not include the complexity of this activity with different developing forms and ways in different countries.

The term of “rural tourism” has various meanings that differ from one country to another.

In Germany the practice of rural tourism leaded to the conclusion that “a guest for a vacation brings more profit than any other activity during the year”.

In France, the tourism in the rural environment has old traditions which are achieved at a high level of organization, diversification, and promotion.

In Italy the rural tourism can be met under the form of “green vacations” and has as main component the agro-tourism.

In Denmark the tourist product is known under the name of “active vacation”, and the tourist services are offered in houses at farms and camping.

In Hungary it is used the term of “village tourism”, indicating that the only activities and services offered in villages are included in this type of tourism, and meaning: accommodation at low prices, involvement in agricultural activities or in other types of local activities.

In Slovenia the most important form of rural tourism is the tourism at farms of different families, where the guests live either with the farmer family, or in guest’s houses, but visit the farm for meals or to explore the farm’s yard.

In Holland the rural tourism means, especially, farm camping, where the majority of services that are offered are bounded by routes like: cycling, riding horses.

In Greece the rural tourism means accommodation in rooms that are furnished in traditional style, with traditional breakfast – most of the times being prepared with home made products.

In Romania the rural tourism has been practiced since ever, but spontaneous and accidentally, and supposed the accommodation at citizens from rural places. Until 1990, because of the interdiction of hosting foreign citizens in private houses, the rural tourism was practically ignored. After 1990, the tourist activity in the rural areas has known a new start, fact explained by the foundation of the organizations that are proposing the development of tourism in the rural environment. So, in 1995 appears The Romanian Agency for Agro-tourism, which has as main purpose the alignment of the Romanian agro-tourism to the international one. In 1994 appears ANTREC, nongovernmental organization, non-profit member of the European Federation of Rural Tourism, which now has 30 branches in the country and totalize over 2500 tourist and agro-tourist pensions, with 10500 accommodations places.

In most of the countries the complementary activities, meaning: restaurants, recreations facilities, the organization of cultural activities and entertainment in national places-are only at the beginning. From this point of view the rural tourism is a particular form of tourism, more complex, including primary services (accommodation, food, transportation) and auxiliary (entertainment) as well as economical activity, usually agricultural practiced by the hostess of the tourists ( productive activities, of processing the agricultural products in the farms and their commercialization to the tourists or through the commercial channels).

Rural tourism includes a variety of ways of accommodation, of activities, events, festivities, sports and entertainment, all of them taking place in a typical rural environment. Involving all these facts, a more exact definition of the term of “rural tourism” that can be used in a unitary way on the entire European continent, is confronted with many specific issues. “Rural tourism is a concept that includes all the tourist activities that take place in the rural environment”. Or, “the rural tourism is the tourist activity organized and leaded by the local populations and is based on a tied connection with the surrounding, natural and human environment.” This definition, considered more comprehensive shows off the rural tourism from the tourist activity that takes place in the littoral areas, in the urbane ones and in those destined for winter sports, places where constantly, tourists, as well as the nature of their activities, exclude any significant relations with the local population, which constitutes the surrounding human environment.

Lacking any other adequate definition of the rural tourism, accepted in the European Union territory and outside them, the term that is used is that of “green tourism”, symbolic color, in order to distinguish this form of tourism from the others, as: “white tourism”(winter sports), “blue tourism”(seaside holidays) and so called “the tourism of the lights”(the urban tourism).

Some authors consider the rural tourism and agro-tourism, different notions, and for others they have the same content.Both types of tourism have as displaying area the rural environment, and through the included activities generate the tourist circulation and supplementary incomes for those who perform tourist services. The two types of tourism are the result, on one hand, of the modern human behavior, anxious for holidays as original as possible, of returning to nature, and, on the other hand, constitute possible alternatives to re-launch of rural areas in the perspective of durable developing of rural areas. Both rural tourism as agro- tourism are based on the rural area, on the citizens and products specific to that area, which have to be adapted to the demands of the tourist market and without standardizing the offer, they have to arrange receiving structures at the level of the tourist demands, to valorize the Romanian cooking traditions.

Rural tourism has a bigger content, has permanent character and has a heterogeneous receiving structure (hotels, inns, motels, vacation villages), the other components of the tourist product (gastronomy, handcraft) are common to the agro tourism from the respective area. For agro-tourism, the tourist offer is composed by tourist and agro-tourist pensions that are individualized by the comfort category, the natural environment, the local gastronomy, the performer of rural tourist services (the farmer), who through psycho-social features, culture, education, personalizes the tourist product created for commercialization.

Agro-tourism is considered a more restricted concept, which includes different forms of tourism bounded by agricultural activities and/or by agricultural arrangements. This particular form of the rural tourism is organized by farmers, usually as a secondary activity, agriculture remaining the main occupation and source of income. The rural tourism regards all forms of tourism practiced in the rural area, meaning activities outside (riding horses, fishing, hunting, walks or riding a bike, health tourism), knowing tourism (churches, fortress, different historical relics), of discovering the natural environment (flora, fauna), knowing and understanding local cultures (folklore, popular traditions), gastronomic tourism etc.

In the specialty literature, Romanian and foreign, by using the notions of agro-tourism, is better expressed the content, meaning a complementary economical activity of the agriculture in a rural locality. It can be shown that, the agro-tourism has certain features which make it different from the traditional, classic tourism, such as:

The tourist consumption takes place in the rural environment, where essential are: the quality of the pension and receiving services at farmers, the knowing of the natural, human and cultural environment as well as the originality of the tourist products;

The tourist offer is authentic, different, organized and leaded by farmers;

It is an economical activity complementary to the agricultural exploitation and not an alternative or a substitution of this;

It offers to the population with low income the possibility to rest and to strengthen, of spending the free time in vacations or week-ends in the rural environment, with cultural-educational values and a specific hospitality;

It doesn’t requires big investments for decorations of tourist infrastructure and superstructure or for other specific things;

The big tourist agglomerations from the littoral or from watering or mountain stations are being avoid;

Is a tourism in which the specific of the offer is divert and of a big dissemination in space;

Is not compatible with the ordinary tourism.

From the facts presented above, it results that the agro-tourism, through its particularities, differs from the classic tourism being a component of the rural tourism and a possibility of developing the rural areas in tied connection with agriculture. The rural tourism and agro-tourism constitute a way of an integral valuation of the rural environment with its agricultural, tourist, human and technical-economical potential. For this reason Romania must join, in the future, the rural tourism, and especially, agro-tourism in the politics of durable local development.

3. The effects of rural tourism

The development of tourism in the rural area has the following effects:

Rural tourism cannot be considered to be a way of sustaining the development of rural society. For many years agriculture has been the primary element in the Romanian rural area. The variations that took place after the Fund Land Law no. 18/1991 conducted to the crumbling of the agricultural fields, the country average reaching 2,5 ha. Under such conditions, keeping a rural world with its best economic, social and cultural sides means reorientation to other economic activities. From this point of view, rural tourism and especially agro-tourism can constitute a fundamental support for avoiding fields` degradation and maintaining a certain socio-economical status.

Rural tourism can contribute to the preservation of the viability and the stability in the rural area. The depopulation phenomenon, which manifests itself through youth departures, the abandonment of the old houses can be stopped through tourist activities meant to transform this fragile environment into a dynamic one through some reforming strategies of the Romanian village. Rural tourism seems to be the right instrument to revive rural areas by keeping or even creating new jobs, having in view the diversity of jobs, a favorable financial level accomplished by farms together with elements such as: preserving nature, landscape, keeping tradition.

Rural tourism can become an alternative to agriculture. The development of tourism in the rural area can have two forms:

a) The tourism which replaces the unprofitable agricultural activity, so therefore all tourist resources in those areas must be exploited (it was the way mountain and seaside tourism was born and developed);

b) The tourism as complementary to agriculture (agro-tourism) which implies agriculture being the dominant area, and its tourist potential being exploited for the benefit of this activity.

Rural tourism represents a source of income for the farmers. Agro-tourism, as a form of rural tourism, is being organized by the farmers, usually as secondary activity, with agriculture remaining the primary concern and source of income. Through the diversification of agriculture-complementary tourist activities agriculture can become profitable and can generate new family jobs, taking into account the seasons.

Better use of local resources. Selling products obtained in the agricultural process can improve by using some shorter distribution channels or by selling them direct to tourists. In the last few years new ways of processing, promoting and selling agricultural products developed through classic or specific circuits.

Rural tourism often offers conditions for the development of infrastructure, which then contributes to the growth of some economic activities in rural areas. Growing opportunities for social contact between the residents (that usually have a solitary life in their communities) can be considered a benefit to the development of rural tourism.

Besides its economic side, rural tourism has a pronounced affective character – it is not an offer to consume; in developing and implementing it in our country we must start from tradition and surroundings, which should be looked upon as a irreplaceable capital, giving value and pleasure to spare time.

Rural tourism represents a multifactor activity, it is not only a visit to a farm or a local residence, it is not only rest, it is also the best source of health and stress-free therapy. Rural tourism is mainly focused on dynamic, nature loving people, and ecological tourism is focused on sport, hunting and fishing fans. This type of tourism offers freedom and independence to every individual. Seen from a different angle, rural tourism, in its pure form, can be looked upon as that type of tourism that has the following characteristics:

located in rural area;

functionally rural, meaning that it is built upon rural region characteristics: small factories, open spaces, contact with nature, cultural inheritance, traditional societies and practices;

rurally scaled, this meaning that buildings, settlements and fluxes have reduced sizes;

has a traditional character;

locally controlled and developed for long term welfare in the community;

varies according to the complexity of rural area.

4. Rural tourist structures in Romania

The tourist village is a rural, picturesque, well-constituted placement settled in a natural, unpolluted area, tradition retentive, with a rich historical past which goes beyond the politico-administrative, economical, social and cultural function, is temporary accomplish the function of receiving and hosting the tourists for spending a vacation on a undetermined period of time [3] . The tourist village has the role to put in evidence the specific of the localities, having as purpose the adaptation of some promoting strategies of the most frequent forms of tourism. This must be done, also taking into consideration the main geographical, economical, social characteristics, but also the main motivation and options of the categories of tourists, who attend the respective locality. The implementation of some specific strategies in the organization and function domain of the tourist village are absolutely necessary in any area. This, due to the reason, that every rural locality constitute an entity with personal particularities and specific activities, which has to be identify and value as efficient as possible, also from the tourism point of view.

In a developing strategy of an area, is imposed the knowing and the framing of the tourist villages by types, due to the particularities of every type of tourist village. It can be delimited [4] :

The ethnographic-folkloric tourist villages, which can be identify in the territorial perimeters, where exists a traditional way of dressing, architecture, furniture and interior design specific to the area, existing, also, popular music and choreography, which are imposing as essential features of the respective village.

The tourist villages of artistic and handicraft creation, where the tourists interest is especially for handicraft tourist creation and also from their desire of acquiring these creation directly from the source. Through an adequate strategy, in these areas, can be done the passing from a circulation tourist to a vacation one; in this way it can be offered the possibility for the tourists to be initialized by popular artists renowned in popular archaic technique and art (icons made on glass or wood, sculpture made in wood or stone, ceramic, popular confections and seams etc.).

The climacteric and landscape architecture tourist villages, whose predominant characteristics are the picturesque natural area and the geographical position, isolated from the agglomerate centers and the big arteries of circulation. Also for this types of villages can be adopted investing strategies, through which to be modernized the peasants houses, so to correspond to the tourists demands.

The tourist villages of hunting interested and forest fruits harvest, for the north areas or even in the mountainous regions. The local population can organize forms of hunting entertainment. In this case, the rural tourism strategies are spliced with the ecological ones, of keeping the flora and fauna from the area, next to the launch of culinary-gastronomical services made from hunt and forest fruits.

The viticulture and fruits growing tourist villages are placed in the areas that include basins and centers specialized in animals and fruits growing. The most intense tourist activities are in the harvesting time of the year, when the tourist can be involved in the effectively harvest festival, but also the offering of fruits, grapes and other goods prepared from them.

The pastoral villages are represented by those rural localities, where the main preoccupation of the villagers is the growing of the ovine and bovines, impressing the tourist with the menus based on dairy products. Can be organized, depending on the season, shepherd’s meals and specific and traditional feasts. It can be outlined strategies regarding the tourist and economical aspect (of developing the growing of animals in these areas) and socio-professional (of maintaining the profession of shepherd, which is very gainful in these areas). This argumentation is being made also for the reason that, lately, the textile industry request for animal fur has grow very much, the request being often satisfied with imported quantities of fur.

The tourist villages for sports practice represent the areas which has very good conditions, especially for the winter sports practice. The tourist’s categories, which can be more or less initialized, are anxious to practice them, helped by the instructors formed by the local population, in these villages existing special places from where you can rent the sport equipment. The developing strategies of this type of village must be correlated with the developing of the local infrastructure, especially of the communication ways.

The tourist villages and the accommodation areas specific to the religious forms of pilgrimage, are materialized by the position in those localities around the monasteries or even by the existence of accommodation places inside the locals of religious cult. In every area of the country exists monasteries and hermitages with historical-religious traditions. The strategies that can amplify this pilgrimage must be based on the encouragement of the investments for the recover of the monastic constructions and the tuning of agricultural lands to encourage the economical activities.

The rural tourism has, as results from the typology of the tourist villages, multiple motivations: returning to nature, knowing the tradition, the culture, taking care of your health, sports practice, the consumption of fresh fruits and aliments.

With all these, the rural tourism in Romania, at present, has a modest dimension.

5. Sustainable development of rural tourism in Romania

In Romania rural tourism has registered an extensive, dissipated development, without an integrated approach, involving all categories of resources, and its target was in most cases the internal tourist rather than international tourist. This led to many small investments in the territory, the local tourist products being diversified, but independent, without a major impact on the tourism market. The inconsistency and the temporary, fragmented characteristics of this tourist products, in accordance with the small possibilities of agro-tourist boarding houses owners, concludes versus an unclear shape and dimension of rural tourist product in Romania. Rural tourism in Romania is still in its early stages, in this moment being necessary a strategy to re-launch the tourist product before the expansion and development stages. The development of rural tourism in Romania poses specific problems (negative aspects):

untaught modification in the built environment, by extending the accommodation space, without taking into account rural architecture or features;

changes in the social and cultural lives of the villages; kitsch entrance in the rural life as a result of interference with urban civilization can distort or modify the local traditions;

traffic congestion in rural areas especially in the most visited destinations;

changes in rural traditions and customs as the villagers adopt the urban lifestyle;

the insufficient diversification of services and the lack of complementary services, significantly reduce the number of tourists;

artistic programs (festivities, ceremonies, performing traditional works, folk festivals) are just being offered occasionally and only in case of larger tourist groups. These specific hospitality manifestation should instead be used as segmentation tools, aimed at targeting, for example, foreign tourists;

merchandising local souvenirs is underdeveloped activity; it is more likely that, a traditional ceramic feature or an in-house made blouse with traditional models on it, to be found in major commercial centers in the cities than on the village they were produced in;

The main advantages that rural tourism can deliver to the rural communities in Romania are:

an increase in the local revenues, both at the level of community and at the level of rural families;

modernization of local infrastructure as the result of the intensification in tourist circulation;

expanding rural revenues by direct selling of the agri-products to the visitors, selling of a crafted handy-made articles;

maintaining some economic activities in remote rural areas, preserving the traditional manifestation and religious festivities, these mobilizing the local inhabitants to conserve them. A virtuous circle is therefore built.

contributes to the education and training of local villagers, expanding the knowledge horizons of the rural population, facilitate the cultural exchanges among city and village, stimulates the overall regional growth.

Synthesizing the above-presented issues, we can identify positive and negative aspects of rural tourism in Romania [5] (table no. 3).

Table no. 3

Rural Tourism in Romania
Positive effects

Social and economic effects

Cultural influences

Influence on natural and built environment

– source of complementary revenues, leads to new jobs creation;

– encourage collective actions at community level;

– stabilization of population in areas affected by depopulation;

– multiple effects in other fields of activities

– preserve the local culture;

– ensure a local pride feeling, self appreciation and identity with traditions;

– preserve the historical sites and other objectives important for the local community;

– utilization of abandoned properties;

Negative effects

– local price inflation;

– possible population growth as a result of economic development;

– labor market changes structure;

– local real estate market is affected;

– demand is seasonally

– local culture might be lost in contact with the more “powerful” urban culture;

– a distortion of local habits and folklore, by trying to present them before an auditorium

– habitat could get affected;

– water pollution, garbage accumulation, gas emissions, etc.

– a possible crisis of the living space, more rooms being offered to the tourists

The development of rural tourism must be done in accordance with the new rural realities and taking into account the technological revolution. Globalization of economy brings transformations that the rural tourism must be aware and it must look for the new opportunities offered [6] . Rural life is changing, the transformations take place at a faster rate, competition is growing, thou more opportunities exists but they are harder to capitalize. The rural environment can no longer be the millstone of a national economy, the villagers must operate that mentality shift allowing them to ensure a sustainable development for their area. The “new economy”, the concept used today to express technological advance, the open economies, market liberalization, brings a few changes also at the rural perspective level (table no. 4).

Table no. 4

Old rural realities

Internal markets are important;

The ability to exploit natural resource is important for the local and national economy and this determines the local specialization: arable field, mineral resources

Rural areas are somehow specialized, but many are similar at the level of characteristics and economic functions performed

The inhabitants of rural areas have little formal education and less opportunities to find a job than the urban inhabitants

Urban labor market can easily absorb the unqualified workforce surplus from rural areas

Transportation costs are high, access to the rural areas is difficult even for internal residents

Capital markets are segmented, rural areas obtain resources internally

Communications are expensive and relatively slow, limiting the coordination

Rural areas compete one another internally

New rural realities

External markets are important;

The ability to exploit natural resources is not very important for the global economy, the skills, knowledge and information are the main factors determining the success of the area

Rural areas are specialized, few rural areas are similar at the level of characteristics and economic functions performed

The inhabitants of rural areas have little formal education and less opportunities to find a job than the urban inhabitants

Urban labor market can not absorb the unqualified workforce surplus from rural areas

Transportation costs are low, access to the rural areas is facilitated even at international level

Global capital markets are integrated, rural areas must attract resource from international markets

Communications are fast and cheap, facilitating coordination

Rural areas compete one another internally and at the international level with other rural areas from developed on developing countries

The changes presented above have a major impact on rural communities in Romania. The implementation of high scale rural tourist projects imply that the inhabitants will poses specific knowledge of project management, marketing, finance, even thou a certain gap will remain among rural inhabitants and urban citizens. The rural communities must do everything in their power to reduce t

It is very important that in today’s competitive environment, (both in terms of business and employability) one has a clear understanding and sufficient knowledge of the sector or industry in which they would be operating.

This report will be looking at, and analysing the Hotel industry in the United Kingdom, examining industry’s micro and macro environment. Its purpose is to examine the industry with intention to gather market intelligence that would support prospective managerial development, career aspirations and prepare them for sufficiently informed participation at interviews. Findings from the report should therefore, enhance their business knowledge and employability prospects in the industry.

The report will focus on the last five years which have in fact seen the industry at its best and at its worst in just a few years. A number of different data sources would be utilised such as industry reports, news paper articles and various websites related to the industry.

INDUSTRY ANALYSIS
Industry overview

The hotel industry and tourism in general is one of the world’s main growth industries worth trillions of ponds globally. According to a key note report (2009) the hotel industry in the United Kingdome grew by 29.1% in four years to 2008, reaching a staggering ?15.87 billion. This growth was attributed to a number of factors, such as the high disposable income available to people, introduction of low cost airlines and the rapid expansion of budget hotel sector.

With hotels that opened up to a wide range of customers combined with cheap flights and high disposable income people could have more than one holiday a year. This in turn benefited the hotel industry as a whole from both foreign and domestic tourists.

This vibrant growth, however, has seen a change in its fortunes in the last two years, due to a number of factors but mainly the economical downturn. In 2008 global economy took a turn for the worst and the problem deepened in 2009, leading to recession in most developed economies and UK was no exception. This had an immediate impact on holiday purchasing with research suggesting that a significant proportion of adults thinking of saving money by having a domestic holiday in 2009, while 25% of them were worried they could not afford a holiday at all (KeyNote 10). This has led to many hotels adapting to the situation by reducing prices or offering lucrative promotional deals to meet the market expectations and improve sales.

The hotel industry could be divided into two sectors, corporate and consumer both providing services to meet their particular clients needs. The first one includes accommodations paid by businesses, for business travel purposes and the latter is paid by consumers for non-business reasons.

A grading scale based on a star system is used to classify the quality and range of service provided by the company. The grading is comprised of 1-5 stars, where one star represents simple accommodation with no thrills attached and five stars represent exceptional quality of service with some degree of luxury. In some situations Silver or Gold may be added to Hotels that exceed the requirements under the star system.

It is estimated that 1 one in every 10 people in the UK is employed in the Hospitality industry, in other words over 1.96 million (2007) people working in around 300,000 establishments across the country. Overall employment in this industry grew by 5% in 2007 but the Hotel sector had the lowest growth with only 2.7% adding another 6,500 jobs to the existing 238,500 jobs that existed in the previous year (Table 1.2).

Major cities accounts for the highest concentration of hotels in the UK and are thought to attract the highest level of tourism activity with London leading the way.

Market size & trends

During the economic boom of the late 90’s and early part of this decade the Hotel Industry has expanded rapidly benefiting from a number of factors mainly related to economic growth an improved technology. The increasing globalisation of a lot of companies necessitated more corporate travel and accommodation. Being the financial centre of Europe and to some extent the world, London benefited a great deal from this rich consumer source. A lot of hotel groups responded to this by investing on their brands, positioning their portfolios to more upscale four/five star properties. In addition, the budget hotel sector was developed to suit a wider range of consumers as well as businesses. All was made even easier for consumers by the development of the internet. This allowed easy comparison in terms of price and guest facilities on offer, as well as a more convenient way to book them. Internet is now thriving with 34,104,175 or 57.2% of population having access to it in the UK spending an average of ten hours a month online (www.theanswerbank).

In spite of the healthy growth experienced in the last two decades and the excitement of the coming Olympic Games London 2012, the industry has in 2009 suffered a setback. This was due to the recession that affected almost every developed or developing economy in the world. In the first quarter of 2009, the UK saw a fall in visits by one million, although statistics show that spending remained relatively the same as the corresponding time of the preceding year (table1.1). This could be accredited to the weaker pound which slummed at record lows both against the Euro and American Dollar at 75.86p to the Euro and $ 1.375 (bbc.co.uk).

In 2008 there were 31.9 million visits in the UK producing on average ?512 of spending each, generating over ?16.3 billion of revenue for the economy. This however is considerably smaller than the spending generated by the internal visits of UK residents which marked ?21.1 billion for the same period, though slightly down from the previous year. The total spending generated by both UK and Overseas visits for 2008 was just above ?37.4 billion, 0.4% higher than 2007 (table 1.1). Hotel industry takes just above 42% of this wealth, in other words ?15.87 billion.

During the peak of recession there was a significant increase on short-term holidays taken domestically. Though, as the economy comes out of recession domestic holidays are predicted to fall by 7.7% with a similar decline on value between 2009 and 2013. Holidays abroad on the other hand are forecasted to increase by over 16% between those years. (KeyNote)

According to government data turnover in the hotel market gradually increased on average by 6.6% between 2004 and 2008. Key Note forecasted a 6.8% (appendix 4) decrease in total revenue for the following year but expects an upward trend from 2010, peaking in 2013 to 4.8% or 16.99 billion in total. Room occupancy which is a key indicator to measure the amount of business carried out by hotels was at 76% in 2007 according to VisitBritain but decreased in the following two years to 68% in 2009.

Economic trends

In the last five years the UK economy has seen some of its best and worst days. After the healthy growth that the economy had enjoyed in the early part of the decade came the downturn that succeeded in the second half of it. As a result of the global credit squeeze, 2007-09 proved to be a bumpy ride for the economy, enforcing banks to take a tougher line on lending. This caused a sharp fall in consumer spending, with unpleasant consequences for most industries. In 2005 research showed that productivity growth had slumped and business investment was at a record low, consequently the British economy was growing at a rate slower than the average growth for other developed economies, falling well short of chancellor’s budget prediction.

Table 1.4 shows the GDP performance in the last five years to 2008. It is evident that GDP plunged in 2008 to only 0.7 and performing at its worse in the 3rd quarter of 2008 when the economy fell into a recession registering a -6% drop (nationalstatistics.co.uk). GDP started to recover late in the 4th quarter of 2009 when it was just under stagnation point and first signs of getting out of recession appearing in the first quarter of 2010. According to national statistics growth in the first quarter of this year register a 0.2% increase. The same source suggests that during the same quarter distribution, hotels and restaurants fell by 0.7% compared with an increase of 1.9 per cent in the previous quarter. Appendix 1 shows how this recession compares to the previous two in the 80’s and 90’s. It appears that last recession was the hardest of the three but seems to be the shortest of the three.

High energy prices in the world markets (highest being $136.24 a barrel, 2008, appendix 2), forced inflation rates rise to record heights in September 2008 to 5.2% well above the Bank of England’s target of 2%. This increase forced the Bank to raise interest rates three times since summer 2006 with highest being in July 07 at 5.75% (BBC, 29/11/07). Although, this spike in inflation became less of e concern for the Governor as recession was deemed the major threat to the economy. This then led the Bank England to repeatedly lower interest rates reaching its lowest point at 0.5% in March 09 and hoping for the inflation to melt away. In fact that is exactly what happened with inflation rates falling to 1.1% in September 2009, the lowest since 2004. (thisismoney.co.uk)

Increase in fuel prices is bound to raise travel costs for millions of people. High fuel prices, rise in interest rates and inflation followed with the credit squeeze effects are also leaving people with less disposable income. This is having a negative effect on consumer spending as it is getting difficult for consumers to keep up with credit payments (credit cards/mortgages/loans). Therefore, loss in consumer confidence may result in less spending on holidays consequently impacting on industry profitability.

Competition

According to National Statistics there are 10,195 hotels in the country and the majority of those establishments generate less than ?1 million annual turnover (appendix 5). This has not stopped competition in the industry intensifying in recent years, narrowing the gap between budget and midmarket hotels. However, it’s still the large chains/midmarket hotels that win the marketing battle by spending large sums on brand building. This has become a very important feature and most hotels are now seeking to develop stronger identity that would target both consumer and corporate sectors more effectively.

Among others, Premier in was one of the largest spenders on media advertising in 2009, spending over ?5.5 millions on promotional activities followed by Travel Lodge who spent just under ?3 million. In addition to this the large chains have focused on seasonal offers and lowering their prices. For example, in autumn 2009 Travel Lodge lunched room sales for the next spring, offering rooms for as low as ?12 a night.

Also these midmarket establishments have more flexibility to offer packages or meals to attract a larger, more price conscious market. Low budget hotels on the other hand have responded to this by providing more facilities and services than before as well as including more offers on their websites.

Table 1.8 shows some of the major players in the United Kingdome and their relative annual turnover. InterContinental Hotels Group PLC seems to lead the way with close to ?2 billion annual turnover from which ?302 million were pre-tax profit. The company has a number of brands under its umbrella such as Crowne Plaza, Hotel Indigo, Holiday Inn, Express by Holiday Inn, Staybridge Suites and Candlewood Suites operating in around 100 countries offering 630,000 rooms.

Second in this list follows, Millennium & Copthorne Hotels PLC with an annual turnover of ?703 million and pre-tax profits of ?103 millions. The company fosters four different brands including Millennium and Grand millennium Hotels, Capthorn Hotels and Kingsgate Hotels. Recently it has recently expanded with seven new hotels in China and Middle East.

Accor UK Business & Leisure Hotels Ltd is owned by Accor a French based group which has 15 different brands under its umbrella varying from luxury to economy accommodation. The UK based subsidiary generates an annual turnover of ?198 million of which ?37.5 million pre-tax profit.

Travelodge which is owned by Dubai International Capital is the next in line generating an annual turnover of ?287 million and a pre-tax profit of ?16.5 million. The company is rapidly expanding both in UK and main land Europe, with 29 hotels planed to be built in UK in 2009 and 100 in Spain by 2020.

De Vere Hotels & Leisure Ltd operates two hotel chains generating a total annual turnover of ?248 million by combining a 100 bedroom hotels and fitness clubs. The company is owned by Alternative Hotel Group which is aiming to rebrand the De Vere portfolio under Deluxe, Heritage and Venue options, differentiating the accommodation offer.

Tourism

There was a slight drop in the number of overseas residents visiting Britain for business reasons in 2007/8 as a lot of companies tightened their budgets on travel expenditure. This has resulted in low room and bedspace occupancy levels which dropped to a 4 year low (426.2 million bed nights) with serious consequences for the hotel market. The following year was a very difficult year for tourism, experiencing a significant drop in visit numbers. 2010 is also expected to be somewhat difficult for the industry, with substantial improvement expected to start only in 2011.

However, according to a keynote report on travel and tourism, research suggests that 1/3 adults in the Britain has taken at least one holiday in the last 12 months and 1/5 of them having taken three or more for the same period. Still, the economic downturn forced a lot of suppliers, including the package tour operators, to react by reducing their capacity and cutting the number of holidays on offer.

UK continues to be an attractive place in the international holiday market and this is very important for the long term prospects of the hotel industry. The coming decade which has been described by many commentators as the “golden decade of sport” because of the many different international events due to take place in UK (table 1.7) is exiting times for the industry. Overseas spectator numbers to these events will provide a necessary boost for the hotel market. Records based on previous similar events staged by other countries in recent years show that hotel profitability increased as a direct result.

BigHospitality referring to VisitEngland research suggests that tourism industry in the United Kingdome could be worth a staggering ?147 billion by 2020 with the potential of creating over 225,000 new jobs in the industry. This would be a 52% increase from the current estimated value of ?97 billion.

Though smaller than the domestic spending in hotel sector, the international tourism is a significant contributor to total revenue. Only London, which earns over ?8bn from overseas visitors, depends more on the overseas visitor than on the home market.

Employment and Demographics

According to BBC unemployment in UK continued with its downward trend until August 2007, falling by 5000 in the second quarter of 07 to 1.65 million where it maintained one of the lowest unemployment rates in Europe at 5.5% but slightly higher than that of USA. ONS figures also showed that average earnings rose by 3.7% during the same quarter, beating expectations of a 3.6% rise. However, theses prosperous years were soon over and low unemployment was history.

According to the national statistics, employment has seen a dramatic fall in the last three years reaching its lowest point since 1996 when it hit 72.1% or 28.82 million in February 2010 (appendix 3). In the last quarter to February there was a decrease in both part-time and full time employment totalling 89.000.

The number of people working only part-time because they could not find full time employment increased during the same quarter to reach 1.05 million, the highest figure since 1992. The overall unemployment rate recorded 8.0%, in other words 2.5 million, higher than any time since September 1996.

The inactivity rate in the first quarter of 2010 was at 21.5%, the highest since 2004. This added another 110,000 to the total figure, reaching a record high of 8.16 million people considered inactive in UK. Though, this could be as a result of a relatively large number of young people choosing to go into education after finishing their secondary school rather than go straight to the labour market.

Population in the United Kingdome has continuously increased in recent years reaching 61.4 million in 2008, an increase this of over 9% in just five years (KeyNote). This was due to the high influx of migrants from the newly joined EU member states from Eastern Europe. This trend of population growth is forecasted to continue to the end of the century. Britain’s population is predicted to reach 71 million within 25 years, 78 million within 50 years and 85 million by 2081 (The Guardian, 28/11/07). This 39.6% growth (from 59,834,300 in 2004) represents an opportunity for steady market growth in UK in the next 78 years. The hotel industry is likely to benefit substantially from this if the lifestyle people have grown to enjoy in the last 20 years continue to be the norm.

SWOT
Strength

UK is seen as a major tourist destination and has in place a good promotional and support system for tourists such as VisitBritain.

The UK market incorporates a number of internationally well-known hotel brands and chains.

Short term leisure breaks have risen due to high disposable income over the last decade.

The development of the budget hotel sector opened the hotel market to a wider range of clients.

The Internet has facilitated easier choice and booking of facilities.

Weaknesses

The industry’s performance is highly dependable on the performance of the wider economy.

The market seems to be over supplied in term of room numbers and this seems to keep room occupancy levels rather low at 60% average.

Budget and upscale hotels seems to be putting the midmarket establishments under pressure.

Continuing investment is necessary to maintain properties at a high standard.

Opportunities

A number of international sports event planned to be staged in UK between now and 2019

Western Balkans expected to join the European Union soon which would allow for more tourists from that region visit Britain.

Forecasted growth of inbound visits till 2014

Steady population growth well into the century which would boost demand for travel and tourism and consequently Hotel facilities.

Threats

Some EU economies suffering from high deficits may be forced to freeze or lower wages all together in their public sectors. This could impact the numbers of overseas visits to UK which would adversely affect the turn over and consequently profits in the hotel industry

It may get harder to raise expansion capital due to falling property values.

High unemployment rates in UK could mean that people may not be able to afford holidays.

CONCLUSION/RECOMMENDATION

The success of the industry is dependable on a lot of external factors and this was most clearly evident during the last economic downturn. However, in today’s world globalisation plays an important role both in leisure and commerce. Therefore, hotel industry which is now well established will be a sector that would commend high demand for its services in the future. History shows that hotel industry has bounced back in the past after suffering similar setbacks. This will certainly be the case this time round with the first signs of recovery already in sight. At glance it appears that the industry has learned from previous downturns responding to it by adjusting prices and offers to look more attractive.

Seeing that the largest share of revenue comes from internal visits and many EU economies risking Bankruptcy, it would be wise to try and encourage more British people spend their vacations in the UK. In the meantime the coming decade with its sports events to be held here presents a great opportunity for the industry. Therefore, companies should take advantage of this by planning ahead so they would have sufficient bed/room space to meet the demand. Although trading at the moment is rather low in comparison to pre-recession time and raising capital for further development has become harder. It is worth remembering that hotel projects take a relatively long time to materialise and now may be the time to start thinking for the future.

As the economy recovers the hoteliers should also seek to build occupancy back, perhaps through further competitive pricing and promotional deals with the aim to reinstate RevPar growth.

APPENDICIES AND TABLES

Table 1.1. Overseas residents’ visits to the UK and the expenditure in the UK (Million, ?million and ?) 2004-09

2004
2005
2006
2007
2008
2008 Q1aˆ
2009 Q1aˆ
Number of overseas visitors (million)

27.8

30

32.7

32.8

31.9

7.2

6.2

Expenditure (?m)

13.047

14.248

16.002

15.960

16.323

3.129

3.128

Average expenditure per visit (?)

469

475

489

487

512

435

505

UK residents Expenditure (?m)

21,238

21,107

Q1- first qarter

aˆ – Seasonally adjusted

Note: expenditure figures refer to total spending by visitors not solely accommodation/hotel costs

Source. International Passenger survey (MQ6, Quarter 1 2009) National Statistics

Table 1.2: EMPLOYMENT IN THE UK HOSPITALITY INDUSTRY 2004-2007

2004*

2005*

2006

2007

Contract food service providers

179,600

178,300

182,600

181,600

Hotels

247,100

238,400

238,500

245,000

Pubs, bars and nightclubs

368,400

333,900

297,700

319,600

Restaurants

518,700

514,700

499,700

526,700

Hospitality services

402,100

379,900

390,300

417,400

TOTAL WORKFORCE

1,917,300

1,843,000

1,866,300

1,960,700

Source: Labour Force Survey www.caterersearch.com

Table 1.3: UK resident population estimates 2004-08

2004

2005

2006

2007

2008

Population (000)

59,846

60,238

60,587

60,975

61,412

% change year on year

–

0.7

0.6

0.6

0.7

Source: Monthly Digest of Statistics, August 2009, statistics.gov.uk

Table1.4: UK GDP at Current and Annual Chain-Link Prices (?m), 2004-08

2004

2005

2006

2007

2008

Current Prices

1,202,956

1,254,058

1,325,795

1,398,882

1,446,113

% change

–

4.2

5.7

5.5

3.4

Annual Chain-Link

1,227,387

1,254,058

1,289,833

1,322,842

1,332,652

% change

–

2.2

2.9

2.6

0.7

Source: Economic and Labour review, August 09, statistics.gov.uk

Table 1.5. UK rate of inflation (%) 2004-2008

2004

2005

2006

2007

2008

Inflation (%)

3.0

2.8

3.2

4.3

4.0

Change year on year

–

-0.2

0.4

1.1

-0.3

Source: Monthly Digest of Statistics August 2009, National Statistics website

Table 1.6: Proportion of nights spent and expenditure on hotels, motels or guest houses and other accommodation in the UK by UK and Overseas residents (%) 2007 & 2008

Nights (%)

Expenditure (%)

2007

2008

2007

2008

UK Residents

Hotel, motel or guest house

23

23

46

48

Other accommodation

77

77

54

52

Overseas residents

Hotel, motel or guest house

23

22

50

50

Other accommodation

77

78

50

50

Source: UK Tourism survey 2007 and 2008, VisitBritain/International Passenger survey 2007 and 2008, National Statistics.

Table 1.7: Golden decade of sports

Event
Sport
Year
Location

Ryder Cup

Golf

2010

Wales

Olympic Games

Various

2012

London

Commonwealth Games

Various

2014

Glasgow

Rugby World Cup

Rugby

2015

England

World Cup???

Football

2018

UK

Cricket World Cup

Cricket

2019

England

Table 1.8: Major Players in UK Hotel Industry

Company
Revenue per year (?m)

Accor UK Business & Leisure Hotels Ltd

198.3

De Vere Hotels & Leisure Ltd

248.2

Guoman Hotels Ltd

220.4

Hilton International Hotels (UK) Ltd

58.10

InterContinental Hotels Group PLC

1,850.00

Macdonald Hotels Ltd

135.4

Marriott Hotels Ltd

149.5

Millennium & Copthorne Hotels PLC

702.9

Premier Inn Hotels Ltd

159.5

Travelodge Hotels Ltd

287

Source: KeyNote

Appendix 1: The Economy in three recessions (bbc.co.uk)

Appendix 2: Oil price rise 2000-07 (bbc.co.uk)

Appendix 3: Employment (statistics.gov.uk)

Appendix 4: UK Hotel Market Forecast.

Appendix 5: Number of establishments

The Anne Frank Organisation (2006) states that in 2004, 936,000 visitors visited the house that used to be Anne Frank’s, a Jewish girl who among other Jews were murdered in the time of Hitler’s fascism. Among this timeframe, Auschwitz, a concentration camp based in Poland which became a symbol of genocide, annually receives 750,000 visitors (Yuill, 2003) coming close to the annual 900,000 visitors to Dachau (Lippard, 1999).

All these sites and many more which are similar, are what are called sites for “dark” tourism (Lennon and Foley, 2000), also known as Thanatourism (Seaton, 1996 – cited in Ryan et al, 2005) and ‘Black Spots’ (Rojek, 1997). This form of tourism is what Seaton (1999) defines as sites and attractions that are associated with deaths, acts of violence, scenes of death and crimes against humanity.

With the popularity of this form of tourism growing within the ‘horror tourism’ market (Tunbridge and Ashworth, 1996), the ethical issues surrounding it will need to be questioned. With the consumers and providers taking part in this growth of dark tourism, both their potentially contrasting ethical views towards dark tourism may be different. Whereas a providers’ means of preserving history is to charge people to maintain its upkeep, the consumers may see it as money making scheme in the expense of the deceased lives of the site. Whereas the providers’ means of letting people know its history is through interpretation of vulgar images, may seem unethically distasteful for consumers. Therefore, using Stone (2006)’s ‘shades’ of darkness spectrum as a tool for measuring different levels of dark tourism sites, these two main issues will be critically examined in depth, and in both the consumers’ and providers’ point of views to further understand the ethical dilemma of dark tourism.

Dark tourism has often raised ethical debates about the ways in which leisure and pleasure are mixed with tragedy (Kempa and Strange, 2003), as many people think some sites for dark tourism is too sensitive to present it for the world to see. However, although this may be the case, it actually varies depending on the ‘shade’ the site is supplying. This has been supported by Stone (2006) in which he believes that not all dark tourism sites and its supplies have the same degree of darkness and ethics. Stone (2006) believes that each site and what it supplies has its own degree of darkness, and depending on its criteria; it can be placed on what he refers as a ‘darkest-lightest’ spectrum.

On one side of the spectrum is what he termed ‘lightest’ side of dark tourism. Sites belonging to this side of the spectrum tend to be fully commercial providers such as the London Dungeon, which Stone (2006) also term ‘Dark Fun Factories’, as its main aim may be more financial than educational. Stone (2006) further explains that although sites belonging to this side of the scale will be associated with death and suffering, it is not OF death and suffering. Therefore, sites at this lightest side will most likely be purposeful and entertainment based, with a lower degree of ethics surrounding it.

However, on the other end of the spectrum are the ‘darkest’ side of the spectrum, in which its criteria’s are completely the opposite of those on the ‘lighter’ side. Stone (2006) explains that sites on the darkest side will be sites of death and suffering and its orientation will be to educate. Examples of these darker sites are which Wight (2005) class as ‘primary’ sites, such as holocaust camps to sites of celebrity deaths, as sites on this side of the scale will be seen as authentic and non-purposeful, leading to a higher degree of ethical issues surrounding the sites at this side of the scale.

One of these ethical issues is the notion of whether consumers should be charged to enter a site of death and with so much history. In novices’ and consumers’ eyes, it could be seen as unethical as they may see it as a means for providers to make profits in the expense of the deceased lives and history. Although this may be the case on sites within the lighter shade of the spectrum as it may be purely commercial, it is not always the case within the darker sites. Sites from the darker shade such as Auschwitz, the Gallipoli Anzac (Slade, 2003) and Robben Island prison (Shackley, 2001) are normally sites which are old and need continuous up keeping and staff. With this continuous maintenance, sites will need money to be able to continue to run its site and its historical contents. However, this also leads to the issue of how much. If a site charges just enough to afford the upkeep, then it may seem fair and ethical to do so. For example, according to Shackley (2001), the prison in Robben Island which Dann (1998) elaborates as a ‘Dungeon of Death’ attraction, employs local people as tour guides, and their average weekly wage is ?10, which is the same amount as the entrance fees. However, if the entrance fees were to double, it will then be seen as profit making, thus, unethical as it is money making in expense of the past.

By charging its consumers, it may also be a means of controlling how many consumers enter the site, as mass consumption of the site may lead to deliberate sanctification and loss of original identity of the site. Strange and Kempa (2003) agrees with this and further states that the commodification of history for mass consumption frequently leads to the trivialization of the site, and in turn causes deliberate sanctification of its history, as well as the loss of original purpose of why the site was built.

An example of this happening is shown in the site of Machu Picchu. Johnston (2006) explains how ever since Machu Picchu was named a World Heritage Site in 1983, over 500,000 visitors started visiting the site every year, and to prevent deliberate sanctification, an entrance fee of $20 was put up. This in turn not only did not limit the number of foreign consumers from visiting, but also pushed the local people out of its own heritage site as they could not afford the entrance fees. Johnston (2006) continues to explain that this has contributed to the mass replacement of indigenous people with tourists around the site, causing sanctification and trivialisation of the site, as the original culture of Machu Picchu was gone.

Despite all the motives that the providers have for charging its consumers, its clearly shown that it needs to be managed efficiently in order for it to work.

Consumers who are consuming the product as experience and integration (Ryan et al, 2005) may agree with the notion of charging as it may feel like they are giving back to the deceased lives and the history of the site. Lippard (1999) explains this as ‘guilt – tripping’ in which consumers of this typologies may feel guilty of what happened in the past and may want to contribute towards the history in order to feed their conscience. Consumers consuming as experience and integration (Ryan et al, 2005) may be more sentimental than consumers that are consuming as play (Ryan et al, 2005), as the typology of play consumers will come from a Psychocentric (Novelli et al, 2005) background in which they may visit frequently to lighter shades of dark tourism sites but rarely to sites of a darker shade. Elaborating from this, it could be possible that consumers consuming as play may not be used to the dark history of the sites and may be shocked of its contents and backgrounds surrounding the darker sites, thus, may welcome the sanctification of the sites but not the notion of charging. Frequent happenings of this emotion tend to happen in what Ryan et al (2005) called Grey tourism supply, in which Ryan et al (2005) explains this theory as consumers with low, or no interest and knowledge in death and tragedy visits an intended dark tourism site. In this situation, a consumer may not be aware of the dark historical contents of the site as they would not have previous knowledge due to its lack of interest, but upon arriving to the intended site and knowing its gore details, they may instantly be repulsed and shocked.

However, this is rare as Seaton (1999) believes that dark tourism is consumer demand rather than attraction demand, explaining that if it was not from the high interests and demand from the audience, there will not be the dark sector of tourism.

To some extent, Seaton (1999) may be correct and that the main reason for the existence of dark tourism could be from the high demands for dark tourism. However, for this to happen, the presentation of the sites may also be blamed for the high popularity of dark tourism. This is because Walter et al (1995) explains that even when consumers are interested in death and tragedies, for tragedies to be given a real meaning, it needs to have a context by explanation, and sometimes through the personal stories of those people who has been caught up in it. This has been previously mentioned using an example from one of the darker sites of Robben Island. Shackley (2001) states that the prison site in Robben Island located in South Africa, employs ex prisoners that used to be held there. These ex prisoners are now acting as tour guides for its consumers, repeatedly telling each group of consumers their own personal experience of when they were held in the cells. Shackley (2001) continues to explain that the emotional welfare of the guides had not been considered and many of the guides felt obliged to continue with its employment due to lack of employment elsewhere. Although Walter et al (1995) did explain that consumers are interested in personal story telling, but ethically, should stories as sensitive as this be told repeatedly and personally from the own mouths of the ex prisoners? This may not only be ethically wrong, but also morally wrong. Blom (2000) agrees with this and states that interpretation as personal as this should be interpreted though technology such as information points within the sites. However, despite this, providers within the darker sites may not see it in the same way. Providers could argue that employees such as ex prisoners are getting paid and that they decide to be employed in this job role voluntarily. Providers could also argue that story telling from the mouths of people who have been caught up within the history of the sites are more reliable and feasible than technology. This may be because stories that will be told from someone who has actually experienced and been there, may infact reduce the exaggeration of the contents of the history and stories, as well as being less biased than if technology was to tell it. By interpreting using technology, there could be a high chance that the information recorded into the technology is from someone with no relations to the site, thus, gives consumers wrong information. Also, this method of tour guides for interpretation may actually further benefit both the providers and consumers, as if the consumers had to ask a question about the site and its history, it can be answered immediately by the tour guides, delaying the time in which the consumers may form its own answers and judgements about the site.

The views of the darker site providers in employing tour guides may also be the same for the views for providers of the lighter shade of dark tourism, as it may be required and expected by consumers to have someone to guide through the lighter sites, e.g. the fun factories (Stone, 2006). However, an implication that can arise from this is that within the lighter shade of dark tourism, the tour guides may exaggerate the actual history and stories behind the site in order to manipulate the consumers’ attention and encourage repeat business.

Manipulation of consumers’ attention can also be done by the movement of original objects. For lighter shades of tourism sites to do this may be accepted, as previously mentioned before; Stone (2006) explains that sites of a lighter shade tend to promote any materials in order to attract business, thus, attracting profits. However, if a site of a darker shade decides to do this, the circumstances will change and it will become unethically wrong. For example, Wight (2005) states that in Auschwitz, the famous signage that read ‘Work will set you free’ was moved from its original position to a location near the end of the tour to create a high point for consumers to reach a controversial conclusion to the experience. This can be a form of manipulation as Carnegie (2006) states that some sites do intentionally move objects in order to interpret the displays to contain central, recognisable, emotional and generic truths to the local audiences. This raises an ethical dilemma, as although providers may see nothing wrong with this as controversial conclusion may leave its consumers feeling the pain and tragedies of the past, but the ethics of this makes it unfair and unauthentic for its consumers. The main purpose in why consumers visit places of dark tourism in the first place is because they may want to experience the real truth behind the sites first hand, and thus travelled to the site to get this experience. However, when providers moves objects around to help stimulate consumers’ minds, it is made unreal as it is not how the history says it was, but how the providers want it to be. By moving objects, bits of history gets moved as well, and as time moves on and nobody moves it back to its original place, the origin and bits of history of it are forgotten, hence the deliberate sanctification of some sites and the movement of sites within the shade spectrum.

The phenomenon of dark tourism is a difficult and delicate field to understand, but one aspect of it that is most understood is that it is increasingly growing in popularity, with thousands of consumers flocking worldwide to see these sites of tragedy. However, the ethics of visiting sensitive sites such as these are also growing, as questions such as whether to show or not to show, and whether to charge or not to charge are often questioned in both the providers and consumers point of views.

To show these sites of tragedies may cause exploitation of local people as well as deliberate sanctification of the sites and its history, but to not to show, our history may be denied to us.

By understanding the ethicalities of dark tourism, it will help in preserving its history and sites, so that it can then be better managed and better preserved and presented for the future. This in turn reduces the risk of exploitation of the sites and the way different typologies of consumers think. However, ethical issues do not stop at the grounds of the consumers and its providers, the sensitivity of the tour guides are also needed to be explored. As discussed previously, tour guides such as ex prisoners are sometimes obliged to relive their experience repeatedly in order for consumers to know the history. Although this may be one of the effective methods of telling history, it is important to consider the welfare of these tour guides, as the repetitive telling of their own experience may in turn contribute to further unethical dilemmas.

Therefore, maybe to finally conclude on the ethics of dark tourism, it may be possible to state that ethical issues will always continue to exist around dark tourism, as long dark tourism itself exists too. However, the importance of the consideration of the ethicalities of dark tourism cannot be understated, and both consumers and providers may want to work together, if in the future, we still would like to know about our history through the form of tourism instead through textbooks and education.

The purpose of this essay is to let the reader know that there are some factors that affect environment around and far away from the location of an event, and also assess any challenge that may happened when dealing with this environment problem in the event management industry. The scope of this essay is limited and not focusing on one certain event only, but only talk about some kind of events generally without discuss those events deeply. The analysis is conducted by getting the example of some events and analyzes why those kinds of events may help or even damage the environment. While on assessing the challenge, this essay finds the challenge and comment the value of them. The most important and significant findings is when the effects of an event to the environment may caused pollution by direct and indirect ways. However there is finding about the good side of an event to its environment. And some challenge for this issue is about how to solve, educate, and maintain the process in order to get this environment issue fulfilled.

Introduction

First of all we must know the definition of event itself. Based on Allen, O’Toole, Harris& Mcdonnell (2005) state that event is certain ceremony, act, presentation or tribute that are intentionally designed, programmed and created to held certain occasions or else get any benefit in cultural, social, and the goal of business. We can see the different types of events such as sport events, festivals, carnivals, parades, market, trade shows, until just a meeting( Arcodia, 2009). And based on the size we can see from just local communities with local people as audiences to mega-events in which the audience is from around the world (Allen, O’Toole, Harris& Mcdonnell, 2005.

In this essay I explore the answer for issues that will be discussed. The scope of this essay is about issues in the effect that an event can be caused, either in social, economic, and also environment. Not only the affects it selves but also this essay cover the topics in assessing the challenges that may occurs to environment management industry. I focus on identifying environments factors that effecting events by offering analysis to it. Also in this essay I set the limit about the kind of events into just festival, cultural events, and social events, so the prospects of the person who reads are limited and as a result this met their expectation since that this essay only talked about something in wide scope ,not in detail.

When we talk about environment effects of an event, we cannot be far from pollution. Pollution is the biggest issue ever that every government must face in order to protect their environment. Based on curry and Moutinho (1992) that said “the relationship between tourism and environment is a symbiotic relationship in sense that conservational area, wild life, and preservation of sites and monuments of historical interest often a response to tourism demand but have the effect of stimulating and maintaining the flow of visitors to that region,” government cares about the environment because they can get profit from tourism sector. So that in defining any effects in this essay, I divide the effects into two parts. The first is the negative effect of an event to the environment, and the next one is the positive effect of an event to the environment. Then based on those negative effects I will divide it into two parts as well. The direct negative effect of an event to environment and also the indirect negative effect of an event are that parts. After that there are some challenges about environment caused by effect of events in event management industry.

432 words

Body

Firstly we will talk about the negative effects of an event to the environment. Just like I stated in the introduction, this negative effects are divided into two categories, the direct negative effects and indirect negative effects as well. The meaning of negative is already known, it can be something bad, terrible, not proper and many more, but the meaning of direct negatives effect in this essay is about any bad effects that may occurred as the straight result of an event to its environment that come from the waste and material procession of the event itself. Then I will identify some certain events that give direct negative effect to the environment and analyze why that events may cause those damage. The first event is Taiwan lantern festival which held every year when about thousands of Taiwanese light balloon of lantern that made from oil-soaked in folded paper and then put it in high pole. This caused the debris from that lantern to litter the environment and one day this set a fire near Taiwan International Airport, thus create huge amount of cloud and later on many flight is cancelled temporarily. Those smokes may contain carcinogenic chemicals and also benzene that are harmful for people’s health and also becomes pollutant that may damage environment (Adam, 2008). Similar with lantern festival is Floating Lantern Festival in Chiang may where the usage of old style natural material made from banana trunk with the leaves stick in the trunk is replaced by Styrofoam that resulting in the river banks, ponds, and parks being littered and obstructed. This lead to broken environment since the cleaning up progress may consume more time. (Jonal, 2009). The next event is Diwali festival that held in India that consist with bursting crackers. This event may pollute air since the crackers may release toxic gases. The third example is about Bourgas festival in Bulgaria. In that festival, people build seven stages and then makes tent in sea garden park which resulting everlasting and significant effects to its animals and plants. The result is becoming worse every year. This damage to environment mainly caused by that construction, mass amount of people with tents, and the poor of storage bin with poor restroom facilities as well (Illiev, 2009). The last example of direct effect to environment is the Ganesh Festival in Western India. In this festival, big doll is created using plaster of paris and noxious metals which are destructive substance and then coated with paints that may contains cadmium, mercury, and carbon. All of this doll is put into water that resulting in the decrease of oxygen level in the water which later on may lead to dangerous health for human who eat any fish that contaminated in that water. This festival is clearly polluted the water with the ecosystem within it (Nita, 2007). However, pollution is not restricted only to material pollution but, “Poorly designed hotels and other tourist facility buildings, and inadequate or inappropriate landscaping, create visual pollution in an area”, ( Kaur &Batra, 1996)

Now we go to the indirect negative effect of an event to its environment. The meaning of this indirect effect is any consequence from the performance of an event that resulting in the damage of environment by people activity that they did in order to be able to participate in that event. People do everything they could to participate in any certain festivals, sport events, and more events or they just become spectators in that event. By doing that thing, realized or not they have been participating in the destruction of environment. People don’t realize when they littering in the area where the events was held. It is still okay if government or official clean up the mess, but the problem occurred when the mess is not quickly being cleaned as it may pollute the environment. They even don’t realize that when they go to an event, they use vehicle such as cars, planes, and even ships which all of them is participate in polluting any land, water, and air. The bigger a festival is, the more people will come all around the world. For instance is Glastonbury Festival of Contemporary Performing Arts which is the biggest music festival in the world. Many arts performed there such as music, arts, cabaret, and dance (Wikimedia Foundation, Inc, 2009). Being the biggest in the world, we can imagine how many people from different contingents in this world travel only to England where the event took place. Most people must be use planes, ships, and even cars. In Vietnam, many different countries in Europe, U.S., and Asia are participating Hue cultural festival that have tourism, buy and sell and investment fair that participated by qualified local and foreign business (Viet Nga Tourism, 2008). With so many foreign countries participate in, we can assume that more different region of people will come to Vietnam. The other events that contain many different countries are when 15 countries attend Asian-African Children Art and Culture Festival in Jakarta, Indonesia. Even the committee expected up to 25 countries will bring their delegation to attend arts performance, games, and storytelling (Zhao, 2009). Of course it is not as big as Glastonbury festival that may attended by million people or more, but this events still makes people around the world go by plane that participated in air pollution that damage the environment. At this moment I will analyze why cars, planes, and ships that all of them are used by people to attend any events is damaging the environment. Pollution from car is the most pollution that people committed. Any emission from car is give bad effect to the driver and people around that car. Climate change is the responsibility of car as well since the engines create greenhouse gas accumulation. The change in climate may produce extreme weather that lead to failure in production of plant fields (Environmed Research, Inc., 2009). Global climate change also worsen by plane that some people belief that it produce more main greenhouse gas than cars each time since it produce carbon dioxide more in average. Annual global warming as big as Africa Island was also produced by planes (Kirby,2000). And finally is the ship pollution that worsens the environment condition. It makes noise that bother natural world, its ballast tank destroy algae and animals while sometimes it produce illegal waste to the sea. Its sulphur oxide makes acid rain that later on damage crops and when its’ inhaled by people lead to heart attack. Moreover Cruise ship that people tend use to held some events like festival, concert abroad it or just as a transportation facility to attend any event in different island. Cruise ship produce solid sewage ,oily bilge, and of course air pollutants (Wikimedia Foundation, Inc., 2009).

When we talk about positive effect of an event to its environment, we talk about any good thing that may help and prevent the environment from damage. The first example is about Tzu Chi bazaar of food held in Medan, Indonesia. This bazaar’s profit will be allocated to the development of any ruin building caused by earthquake in Padang. Moreover in this bazaar that sold vegetarian food, and environment friendly tools, people must bring their own recycle bag because in this bazaar forbid any plastic bag that might damage the environment (Redaksi Web, 2009). Other positive event is Plant for the Planet: Billion Tree Campaign which backed by Kenyan environmentalist, Prince of Monaco, and ICRAF. This campaign rehabilitates million hectares of land by planting billion of trees that will bring back soil and water resources, ecosystem of forest that later on reduce global warming by hold the carbon dioxide level in the air (West,2009). Based on The Nature Conservancy (2009), Nature conservancy campaign to help protect coral reefs also can be a positive effect for environment. That campaign is just similar with thousand island conservancy event in Indonesia that start everything about Hawksbill Turtle from hatching, rearing, tagging, and releasing that can be joined by general people (Pulau seribu.net, 2008).

Then if we want to assess the challenge that provided to this environment issue in event management industry, we must know the challenge itself. The main challenge of course is how to prevent and reduce the pollution that occurs from the celebration of events. Many ways can be done to prevent the pollution, such when held Taiwan Lantern festival, people can use virtual lampoon instead of real fire. People can follow the rule not to littering and leave no trace campaign that they must clean up any mess that occurs because of them. Make substitution for event properties such as doll made from natural friendly material can help protect the environment as well. In order to reduce the car pollution is by buying fuel-efficient cars, use bio-fuel gasoline, and do not drive a car in often time (Environmental Defense Fund, 2009). To reduce plane pollution is by not flying into near distance of destination; go to event close to home and use teleconference technology in spite of use flight for business (Kirby, 2000). And finally in order to reduce and protect the water pollution, any ships are supposed to have good management in recycling or hold the waste, and they must use bio-fuel to reduce air pollution. Urban green tourism can help to reduce the pollution with more natural friendly program. ” By extension , green could also be read as sustainable or healthy and UGT is then about ecological, cultural, and economic sustenance for the good health of people and their environment”(Gibson, Dodds, Joppe &Jamieson, 1992). The second challenge to this industry is whose responsibility for the environmental damage this is. This is not only individual attendee, not only government, but it is the responsibility of all parts that make this event happened. So company, government, individual participant and sponsors are sides that have liability to the environment around the event. Education from government and the event committee is needed to make people realize that if they damage the environment, they will suffer from consequences as well. This education must decrease resistance to care about environment and otherwise they must become enthusiasm with this problem. Next challenge is the speed of action after any suggestion or campaign to reduce pollution caused by an event to be done by people. Whether the speed is slow or fast, it depends on the self-awareness of each person. Accuracy is also important that the campaign can target people with the effective and efficient way, so they tend to protect the environment. The last challenge is about the term where this campaign or education about caring to the environment is being executed. This can be short term where people are tend to keep the education only when this thing is booming, by follow the main stream, or in a long term where people are full of aware in protecting the environment for good.

1821 words

Conclusion

There are some effects on environment that affected by some particular event. This effect can be measured as negative and positive effect. The negative effects are occurred when the event with its instruments and participants create pollution directly as a trace to an event existence and more over people who attend in certain successful event will give pollution to air, land, and water, by driving, use flight and cruising with ship just to see the entertainment becomes indirect negative effect to environment . The positive effects can be completed if there are environmental friendly festivals, bazaars, and campaign about safety to environment and event to protect ecosystem as well. In this case people should increase the frequency of positive events, and try to reduce activities that may harm the environment. And for assessment of challenges in environment that provide to event management industry is about challenge that we face in this industry. The challenge is about preventing and repair environment from pollution by substituting instruments of events and reduce the usage of any vehicles. Green tourism is one of solution that can reduce the pollution. Then people who have responsibility in the effects of environment become some issue that must be discussed further. Next challenge is about education that must be educated to all people who will attend certain event and then they realize how environment is important for their live. Accuracy and speed are the challenge that objective and measure people’s sequence in realize about this big issue. And finally the term of this campaign to reduce challenge is determine the successful of this movement, the longer of the term is the best object so that environment during the show of an event can be secured.

287 words

You are to critically analysis the current strategy of Ryanair which comprises the following tasks.

Undertake an environmental analysis of the European airline industry with implications for the budget sector and Ryanair in particular.

Analyse how Ryanair has been successful in the European budget airline industry.

From the above analysis, critically assess the sustainability of Ryanair’s strategy.

Executive Summary

In this recession period to sustain a business and make it different and unique id definitely a big task and to make it growing need to implement different Strategies. Strategy is the direction and purview of a business organization in long run to achieve an advantage over other rivals by adapting with available resources and build competency. today we are discussing the Environment Analysis, strength and weaknesses and its strategy to sustainability of Ryanair a low cost Airline.

This assignment will analyse the business environment of the airline industry in Europe, then it considers the competitive strategy and sustainability of Ryanair.

Introduction

Ryanair start its business by Mr. Cathal and her wife with the financial help of their father Tony Ryan with the total capital of ?1 in 1985. The company Head office is in Dublin, Ireland. Initially Ryanair provide flights between Ireland and UK by using secondary airport due to national airlines monopoly. In 1990 Ryanair loss was IR?20 Million and at the end of 1990 the new management team under the supervision of Michael O’Leary adapted the model of Southwest USA base airline introduced the low budget cost concept in Europe and became market cost leader with no frills carrier. Gulf War 1 broke out in 1991 and airline traffic all over the world distorted. Although the down turn in overall airline traffic, Ryanair made a profit of ? 0.3 million for the year and carry 651,000 passengers with a total work force of 477 people. In 1997 Ryanair first time ranked in Dublin Stock exchange and London stock exchange and in 2002 on NASDAQ. Ryanair added number of aircraft and number of European destinations in 1999. And in 2000 Ryanair introduced Europe largest travel website, www.ryanair.com within three months, the site was record 50,000 bookings per week. In 2005 May 26th Ryanair Holdings, PLC celebrated its 20th birthday. At the celebration party Ryanair CEO Michael O’Leary said that “Ryanair will be overtake British Airways by carrying 3.5 million passengers a month in 2005”

In June 2009 Ryanair is offering 1200 scheduled short haul flights per day along with 145 locations throughout Europe and Morocco with an operating fleet of 196 aircraft flying approximately 845 routes.

Environment Analysis

The external business environment of Ryanair means the other European airlines and other influencing factors which affect the decision making, making of business strategy and the performance of Ryanair. There are number of external environmental factors which affect the Ryanair like PEST (Political, Economic, social and technological factors) Strategic management in any airline industry plays very important role to make them successful airline. The strategy of Ryanair is depends on the vision and mission its vision and mission which is based on the environment factors which are internal and external factors. These environmental factors normally called environmental analysis. In Strategic planning techniques environmental analysis plays very important role to evaluate or scan that business environment is suitable for business or not. In Ryanair these strategic policies clarify its resource strengths and deficiency, its market opportunities, the outside threats to its future success and its competitive status relative to rivals.

Environmental analysis in airline industry helps them to develop and change their strategy to meet the upcoming external changes and its help the company to lead. D. Stoffels 1994).

Concept of Environmental Analysis

Environmental analysis means the environmental scanning or appraisal (L M Prasad).

There are two types of for Strength, Weaknesses, opportunities and threats. In Ryanair Strength and weaknesses are internal factors whereas opportunities and threats are external factors. Ryanair environment is analysis based on following structure.

Figure No 1: Ryanair Environment Analysis
External Analysis

The external analysis is based on the opportunities and threats.

Threats

Volcano crises

9/11 terrorist attacks

War in Iraq

Oil prices

Economic downturns

Government Regulation

The airline industry in Europe has always been under pressure from domestic and European Union. At the end of 1980 E.U deregulate the airline industry and an array of liberalisation measures followed that were to be applied throughout its territories. In 1997 E.U any airline can operate its business from anywhere within Europe.

Competition

At the start of 21st century competition in airline industry exploded and this competition will continue to grow up new entrants to take this advantage. Due to price competition and economic downturn and financial crises there is no entrants who want to enter in the market.

Porter’s Five Forces Analysis of the low cost Airline

According to Porter 1985 “Five force analysis is a means of identifying the forces which affect the level of competition in an industry”. Porter’s five forces model is based on the opportunities and threats of Ryanair from the external environment. Here porter analysis is applied on Ryanair external business environment. Porter five forces analysis are as under.

Porter Five Forces Analysis
Bargaining Power of Suppliers

Boeing is the main supplier of Ryanair Airline

Regional airports are mostly dependant on one airline

Bargaining Power of Customers

Customers are price conscious

Lack of loyalty

Switching airline is comparatively easy without any cost

Threat from New Entrants

High capital investment

Some barriers to entry

Threat from Substitutes

Lack of brand loyalty for customers

No extra cost for customer to switching

Other methods of transport like Euro train, cars, Ferries and Euro lines

Competitive Rivalry

The low cost airline industry is highly competitive

PESTEL Analysis

PESTLE analysis is the most appropriate model to discuss the Political, Economic, Social, Technological factors, Environmental factors and legal factors.

Political Factors

Political factors means government regulations like taxation policies, environmental law, employment law, trade restriction by government and political instability.

Change of Government taxation policies

An international organization like Ryanair may effect by regulate the Government and taxation policies and some time these policies are in favourable and sometime in opposibe favour.

Political changes in countries where Ryanair have routes

Like in United Kingdom election are coming and may be new party change their business policies.

Political instability

Political stability plays very important role in an international company like Ryanair. Now a day in United Kingdom if government will be labour party then the policies will be in favour of the business community.

Terrorist attacks on airline business

Starting of 21st century the mode of terrorism is totally changed and now terrorist attacks through aeroplanes and target airline industry. Considering the events of 9/11 in USA, Manchester Airport chemical attack in UK it’s totally change the strategy of industry.

Local government office may object to noise and new runway projects

Currently Ryanair is facing Legal issues and disputes with Government.

Economical Factors

These factors are purchasing power of consumer and Ryanair, capital cost, economic growth, inflation rate, bank interest rate and currency exchange rate.

Economic condition may affect positive or negative in the airline industry according to the country economic situation. If consumer’s standard of living will be high automatically they will use airline for holidays and other purpose.

Fuel prices are rising day by day

In these days fuel prices are going up and up and it may affect the consumer purchasing power.

Social Factors

In Social circumstances Ryanair will affect by peoples attitude towards luxury class, population growth and health matters.

Ryanair do not offer luxury class so business trips are frequently possible to reduce company cost.

Rapidly increase in travelling life style

Lack of consumer loyalty

Ryanair low budget airline means to attract more consumers around the globe.

Technological

Every business organize one unique system to operate its business

Ryanair main supplier is Boeing and Boeing have less carbon emission and les noise pollution

Good relationship with customers by maintaining online service

Online sales/service

Environmental Factors

Environmental factors plays very important role in external environmental of airline industry. The important factors are as under.

Natural disasters

In Iceland Volcano ash disturb the whole Europe flights and airline and still writing these word almost 70,000 flights are cancelled. It will affect the airline industry around the globe.

Health problems

During flight some people feel really bad depression and its can decrease the profitability of the airline industry.

Legal Factors

Immigration law

Immigration law is very major barrier in legal factors. There are some restrictions on the peoples to travel to other some certain countries.

Aviation safety rules

Every country has its own aviation and safety rules which affect the airline of other country.

Swot Analysis of Ryanair

SWOT analysis shows the organization existing strategy and position. SWOT analysis based on strength, weakness, opportunity and threats in any organization. In Ryanair this tool is used to analyse the internal strengths and weaknesses and external opportunities and threats. The current scenario of Ryanair on the basis of SWOT analysis is as under.

Strengths

Brand Name: Ryanair spent 15 years in the LCC market to develop its brand name

Low airport charges will automatically reduce the cost of fare.

All Boeing aircraft: Uniform fleet save training cost and technical cost

High service performance: low baggage loss, in time, high rate of flight completion it gave the good image of the Ryanair performance

High Aircraft Utilization

Point to point service

Small Headquarters: Ryanair try to reduce its administration cost due to small offices

Weaknesses

Bad press image

Restricted expansion possibility due to budget cost

Lack of skill staff

Opportunities

New routes and new destination

Provide best and updated customer services may affect the number of customers

Threats

Threats from competitors like BMI, Easy jet, Air Asia, Atlantic and fly be.

Economic downturn may affect disposable income.

European Union may put some type of restriction if Ryanair do not accept the rules and policies.

Mostly hotels are four stars due to low cost package is risky

Change the choice of consumer

Change the status of economy may change the situation of business policies.

Question No 2. Ryanair European low cost airline
Competitive Strategy of Ryanair

Competitive strategy is key factor for the success of Ryanair. Ryanair followed different types of strategy which kept itself one step up from its competitor. Ryanair aim was establish itself Europe’s low fares leading airline through improvements and expanding day by day of its low fares services. The Ryanair strategy was simple to focus on low fares and catch more and more passenger traffic.

At the end of 20th century the European aviation industry changes its cost strategy and focused on low budget model and now whole industry became low cost airlines. Ryanair based on low fares airlines and growing rapidly due to its environment friendly policies. Ryanair strategy is to provide their customers latest aircraft and advance technologies facility in their aircraft that reduce fuel burn and emissions of CO2 as much as possible.

Figure No 2: Ryanair Business Model

Ryanair plan to invest 17bn Euro on expansion programme of fleet replacement and now all Ryanair old Boeing 737-200 aircraft have replaced with the new Boeing 737-800. Here are the key elements of Ryanair Strategy who make itself European leading low cost airline.

Low fares: Low fares are the main focus of Ryanair strategy. Ryanair sets its fares on the basis of demand of that flight.

Frequent point to point Flights on short haul Routes

Commitment to Safety and quality maintenance

Ancillary services

Choice of route

Low operating costs

Maximizing the use of the internet

Question No 3.
Sustainability of Ryanair

Ryanair business model is adapted from the Southwest airline of USA. Ryanair focused on the secondary airports because majority of the national airlines concentrated on hub airports. At hubs airport acquired a scarcity value and were typically allocated to incumbent airlines in order of seniority at the airport by a scheduling committee presided over by the home country national airline. First time Ryanair used London-Luton route to promote its strategy in 1986 because slots were not available due to rush at Heathrow airport. Ryanair played a vital role to use these secondary airports and make itself a successful low cost airline. On secondary airports the deregulated market brought the opportunity to progress business with the new market entrants rather than remain underutilised. due unused airports substantial reductions was given to new airlines which they used form the expansion of passenger numbers by low cost would be financially worth it.

The Ryanair product

At the starting of Ryanair airline business in Europe its strategy was very simple to reduce its cost and sustain itself in the long term in airline industry was to use secondary airport. All major airports was under monopolistic condition of national airlines so Ryanair target secondary airports and its affect on Ryanair the low congestion charges, low landing charges and low rate of missing bags per passenger. Due to this situation Ryanair fully focused on its customer services.

The Ryanair airport product

The strategy of Ryanair was using secondary airports affect very positive result on consumer. Ryanair offers point to point flights and secondary airports become the hub airports. In secondary airports the consumption of time, cost reduce like less walking time within terminals, less waiting time for baggage retrieve and very cheap car parking.

The Ryanair cost base

Ryanair becomes the cost leader with very small labour force and fully focused on costs and productivity.

Ryanair Europe No 1 in customer service

In February 2010 Ryanair ranked No 1 around the Europe airlines. Only Ryanair is guarantee about the low cost and best customer services. These figures are published in customer service statistics in very month.

CUSTOMER SERVICE STATS FEB
2009
2010
On-time flights

87%

83%

Complaints per 1,000 pax

1.39

0.86

Baggage complaints per 1,000 pax

0.35

0.23

Complaints answered within 7 days

99%

99%

External factors

Ryanair is world fastest growing airline company

According to Ryanair statistics in 2006 42.5 millions peoples travel in Ryanair airline and in 2007 it was 51 million and in 2008 the passengers was 59 millions.

Ryanair Passenger Growth in Millions in 2006, 2007

Pax Chart

Conclusion

The above report examines the environmental analysis of European airline industry and discussed the strategy and sustainability of Ryanair in that environment. Ryanair is using very simple and good strategy according to economic condition at this time which is simple product, strict cost control over airports like aircraft suppliers and distribution costs. Ryanair focused on secondary airports that reduce its operating cost.

BIBLIOGRAPHY

L M Prasad, Business Policy: Strategic Management, New Delhi: Sultan Chand & Sons, Educational Publishers, 2005

An Analysis of European low-cost airlines and their networks accessed on April 10, 2010. From www.sciencedirect.com

Nigel Evants and David Campbell, Strategic Management for Travel and Tourism, 2003, Pages375-378

www.ryanair.com

R. Casadesus-Masanell, Joan Enric Ricart, From Strategy to Business Models and on to tactics

Long Range Planning (2010)

Jay b. Barney & William S. Hesterly Strategic Management and Competitive Advantage(concepts and cases) 3rd Edition, Pearson