Tourism And Travel Management In Portugal Tourism Essay

To see the world has been a childhood dream of mine since an early age. Although nothing will change my passion for my home country, I also have a great passion for seeing and experiencing the home countries of other people. I believe that the people of the world who are fortunate enough to have the ability to travel should make an effort to visit foreign countries. The benefits that spring from world travel are numerous. By traveling and interacting with people from other cultures one can help those other people understand where they come from. Experiencing another person’s home country may help one better appreciate their own. I often wonder if people in the Middle East could hate Americans as much as they do if they had actually met one before they attacked the U.S., or if it would be so easy for people to ignore the human rights violations in Africa if they personally had an African friend. On a trip to the Dominican Republic I established several friendships with the Dominican people. Not only do I feel like I helped them understand American culture, I also feel like I was able to learn more about their culture. I now have a personal connection with the Dominican Republic, and would care more if something good or bad happened there than I would otherwise. Because it may not be feasible for me to visit every country in the world, I am making an effort to visit every continent at some point in my life. So in the spirit of travel soon begins my journey to Western Europe.

Upon graduating in the spring of 2011, I will celebrate by kicking off my traveling dream by visiting several places across Western Europe. The list includes Portugal, Spain, France, Germany, England, Scotland, and Ireland. I will loop my travel and spend the entire summer going between the regions, spending roughly 2 weeks in each. The purpose of this report is to focus on the first stop, Portugal.

Area History and Customs:

Compared to the United States, Portugal has a very long history as a country and this is reflected in everything from its historic architecture to its unique cultural traditions. Geographically, Portugal is a rather small country, slightly smaller than the size of Indiana (CIA World Factbook, 2010). Portugal’s long history spans over 11 defined “periods” ranging from the age of crusades and monarchy, to periods of empire and discovery, and even times of dictatorship and democracy (History of Portugal, 2004). One of these historical periods of achievement that Portugal may be most famous for is the Age of Discovery. Portuguese explorers such as Vasco de Gama and Magellan set forth on their explorations from Portugal. It was during this time that Portugal expanded its empire, settling locations in Brazil, Africa, and India and securing trade in the Indian Ocean (Eyewitness Portugal, 48). Portugal has experienced rule under a variety of foreign influences including the Moors, the Romans, and the Spanish; and residual influences from these forces upon Portugal have taken form in everything from their architecture to their religion and cultural practices.

Present day Portuguese people are generally mild-mannered, easy-going, and polite (Eyewitness Portugal, 15). When traveling to Portugal I should expect to find a normally friendly and relaxed people, whom dress formally and conservatively, yet enjoy fun, laughing, and general merry-making (Eyewitness Portugal 15). A few more cultural points of note regarding the Portuguese are religion, language, and entertainment. The Portuguese are overwhelmingly Catholic, and religion is deeply embedded in the Portuguese lifestyle, especially in the north (Eyewitness Portugal, 16). The Portuguese also take great pride in their language, and although it may seem similar to Spanish, it would be insulting to suggest that in front of a Portuguese person (Eyewitness Portugal, 16). Lastly, the Portuguese are generally very enthusiastic about football (soccer) and fado (a musical style), both of which they enjoy watching and playing in their leisure time (Eyewitness Portugal 17).

Although these generalizations may prove true most of the time, I will not let them tint my expectations of Portuguese people, and during my travels I hope to find my own definitions and descriptions of the average Portuguese person. As I have learned growing up in America, there are stereotypes and generalizations about Americans, and there are also distinct differences between Americans from different regions and states, but stereotypes are never 100% true, and as I visit different regions and cities in Portugal I will be sure to keep this in mind.

Travel Motivations:

As I stated earlier, my travel motivations stem from a love of world travel, a passion for learning more about world cultures, and a desire to make connections with individuals across the globe. During my stay in Portugal I hope to:

1) Learn more about Portugal’s history and development as a country; visit some of Portugal’s historical landmarks, parks, museums, castles, and more

2) Learn more about Portuguese culture and entertainment; listen to the unique “Fado” style of music

3) Experience Portuguese culture in both the urban and the rural settings; visit two of Portugal’s largest and most famous cities (Porto and Lisbon – The Capital)

4) Interact with the people of Portugal at every opportunity, including from shops, hostels, and restaurants

5) Have the opportunity to teach someone I meet about America, represent the United States of America well (not be an “Ugly-American” tourist)

Hopefully at the end of my entire trip I will not only have a greater understanding and appreciation for Portuguese culture, but also that of the six other locations I visit. I want to make my experience as immersive as possible and will make efforts to interact, learn, and explore everything each country, city, and town has to offer at every stop and every turn.

http://portugal.travelguia.net/wp-content/uploads/2008/08/aveiro.jpg http://farm4.static.flickr.com/3208/2601723748_3f28b9361a_o.jpg hotel rooms

Overview of Tourism Development:

Throughout my research of Portugal, mainly of the cities and towns I will be staying in, I found that the area was well-equipped and prepared to accommodate and serve tourists. There were plenty of hotels, hostels, restaurants, and activities to do; most of which were directed towards a tourism crowd. According to Wikipedia (2010), “Portugal attracts many tourists each year. In 2006, the country was visited by 12.8 million tourists. Tourism is playing an increasingly important role in Portugal’s economy contributing with about 5% of the Gross Domestic Product (GDP).” Because of the heavy role tourism plays in the economy, I can generally expect to be accommodated most places I travel within Portugal, and have planned out my trip in such a way that I will already know where I am staying each night.

Although Portugal is one of the safest countries in the world, ranking #13 on the Global Peace Index (2010), there are still some precautions travelers should take when visiting Portugal , or any other country for that matter. As the SafeTravel Website describes, “Portugal is generally a safe country with a low crime rate, although you have to be more careful in the larger cities, especially Lisbon, which has many pickpockets. But you should watch out for the traffic, especially on the IP5 and the N125 (the main route to the touristy Algarve), which have frequently proved deadly (2010).” I will not be driving in any of my travels through Portugal, and rather I will spend most of my travel time on mass transit or walking. However, when walking, especially when crossing streets, I should be aware that road safety is a concern and look before I cross. To minimize the probability of being targeted by a pickpocket I have budgeted out my money ahead of time for all activities. Rather than carry my wallet around with me everywhere and risk losing bank cards and drivers licenses, I will carry cash with me and keep it spread out in various pockets. I will also avoid pulling out large sums of cash in public places and be sure I have what I need for activities food, and shopping, before leaving the hostel.

Currency/Visa Requirements:

Portugal, as a member of the European Union, uses the Euro as its form of currency. As of 27 July 2011, the current exchange rate for Euros to American Dollars is 1 Euro = 1.2982 United States Dollars. Although a passport is required for United States citizens to visit Portugal, a visa is not required for tourist stays of less than 90 days (Visa Requirements, 2010).

Itinerary:
Summer Overview

Country

Arrival Time

Departure Time

United States

May 23, 2011

Portugal

May 24, 2011

June 5, 2011

Spain

June 5, 2011

June 20, 2011

France

June 20, 2011

July 4, 2011

Germany

July 4, 2011

July 18, 2011

England

July 18, 2011

August 1, 2011

Scotland

August 1, 2011

August 15, 2011

Ireland

August 15, 2011

August 29, 2011

United States

August 30, 2011

C:Documents and SettingsGarrettMy DocumentsMy PicturesPortuga lTrip Planningwesterneurope map2.JPG

Portugal Daily Itinerary

Day 1: May 23, 2011 – Travel Day { Richmond ,Newark , Portugal }

1500

Arrive at RIC

1715

Flight Departs

Continental Airlines (Flight CO2505)

$217.40 USD (Round-Trip)

$108.70 USD (For this flight)

1842

Flight lands in EWR

1900

Dinner in EWR

Burger King

$8.50 USD

2026

Flight Departs EWR

Air Portugal (Flight TAP114)

629.28 a‚¬ ($813.10 USD) One-Way

Day 2: May 24, 2011 – Arrival in Porto, Portugal

0621

Flight Lands in Porto

Air Portugal (Flight TAP114)

0630

Security/ Customs

Porto Airport

0800

Depart Airport

Metro: To Trindade Station

Andante Tour Pass (3 days)

{Unlimited use of metro, bus, and suburban train}

0820

Arrive Trindade Station

Walk to Accommodation

0825

Arrive at Accommodation

“The Spot” Hostel

Rua Goncalo Cristovao No12; Porto, Portugal

20 a‚¬ per night (2 nights)

$51.00 USD

0830

Drop off Luggage at

(in Luggage Storage Room)

“The Spot” Hostel

Rua Goncalo Cristovao No12; Porto, Portugal

Check-in

not until 1400

0845

Breakfast at Local Cafe

Budget: 7.50 a‚¬

0930

Walk Around City

Sightseeing Operation, Relax and Enjoy sights and soundsaˆ¦

1030

Visit Igreja de Sao Francisco

(Church of Saint Francis)

UNESCO World Heritage Site

3.50 a‚¬

($4.50 USD)

1115

Leave Igreja de Sao Francisco

Continue walking westward down by river, passing historic Alfandega Nova, then head north towards Jardim da Cordoaria (Park).

1230

After enjoying walk and park, get lunch at a local cafe/restaurant

Budget: 10.50 a‚¬

1330/1400

Walk back to “The Spot”

Check into room, take nap (Recover from jet lag), shower

1630

Take metro from Trindade to Matosinhos Sul Station

From Matosinhos Sul walk to beach

1700

Walk down beach to see the Forte de Sao Francisco Xavier do Queijo (Castle of the Cheese)

After enjoying castle view and walk back to the beach and relax

1900

Head to Buhle restaurant near beach for dinner

Budget: 20.00 a‚¬ ($25.00 USD)

2030

Head back to beach to watch sunset

{Sunset time: 2054}

2100

Take metro back to Trindade Station and “The Spot” then to Sao Bento Station in Ribeira district

21452300

Visit Restaurante O Fado for some traditional “Portugal Blues” music and/or Ryan’s Irish Pub for some Guinness

Budget: 7 a‚¬

($9.00 USD)

2300-2330

Take metro back to Trindade Station and “The Spot” ; go to sleep

Day 3: May 25, 2011 Porto, Portugal

0800

Wake Up

0830

Complimentary Breakfast

0930

Walk to AntoA„io Fernandes (Grocery Store)

Buy lunch and dinner items

Budget: 12 a‚¬

($15.00 USD)

1015

Walk back to “The Spot”

Drop off groceries, pack lunch to have on-the-go

1030

Take Metro to Casa de Musica

“House of Music” concert hall

1100

Tour Casa de Musica

Cost: 3 a‚¬ ($4.00 USD)(Source: Lonely Planet Book – Portugal)

1300

Leave Casa de Musica

Walk to Monumento aos Herois da Guerra Peninsular (Park)

1330

Eat Lunch in Park

1400

Take metro to Sao Bento Station, walk around/tour the cathedral district; sights may include:

(Sao Bento Station, The Fernandine Walls, Santa Clara Church, Terreiro da Se)

1630

Walk to Ponte Dom Luis (Bridge) for view over Douro river and city

1715-1730

Head back to Sao Bento Station; Take metro and walk back to “The Spot”

1800-1930

Prepare dinner in kitchen and eat dinner

2200

Head to “Hot Five Jazz and Blues Club” to enjoy some local music

Budget: 7 a‚¬ ($9.00 USD)

0000

Be Back at “The Spot” and get some sleep

Day 4: May 26, 2011 Travel to Aveiro, Portugal

0900

Wake Up, Eat Breakfast, Prepare to Leave

1000

Take Metro from Trindad Station to Campanha Station; board train at Campanha Train Station

1052

Train Departs Campanha Station heads for Aveiro

Price: 9.50 a‚¬ ($12.30 USD)

1130

Train arrives in Aveiro eat lunch at local restaurant

Budget: 7.00 a‚¬ ($9.00 USD)

1300

Check into “BiniBag Guest House” (Hostel)

Price 2 Nights: 32 a‚¬ ($ 41. 30 USD)

1400

Walk to tourism info. center

“Rent” Bike, ride around town

Price: 1a‚¬ {returned when bike is}

1600

Return Bike, Walk to small park near canal

1700

Walk to “Carrefour”

(Grocery Store)

Buy food for 2 dinners , 2 lunches

Budget: 35 a‚¬ ($45.20 USD)

1740

Walk back to BiniBag House, Cook Dinner

Eat then relax on rooftop of BiniBag Hostel

1930

Open Night: explore, read a book, shop, nightlife, or sleep

Budget: 20 a‚¬ ($25.80 USD)

Day 5: May 27, 2011 Aveiro Lagoons, Museums, and Cathedrals

0900

Wake Up,

Complimentary Breakfast at BiniBag Hostel

(Pack Lunch to have today)

1030

Boat tour of Lagoon

Information and Pricing at Tourist Center

Cost: Unknown (Budget: 10 a‚¬)

1300

Lunch (packed)

Eat wherever, preferably near canals/outdoors

1330

Head to Museum of Aveira

Tour the museum

Price: –

1600

After Leaving the museum stop by Se Cathedral de Aveiro and Igreja de Sao Joao Evangelista

Two historical cathedrals in the area, worth checking out

1800

Head Back to BiniBag Hostel and Cook Dinner

Eat/Relax on Rooftop

1930

Open Night: explore, read a book, shop, nightlife, or sleep

Budget: 20 a‚¬ ($25.80 USD)

Day 6: May 28, 2011 Depart Aveiro, Head for Coimbra

0900

Wake Up

Complimentary Breakfast at Binibag Hostel

Pack up prepare to leave

1130

Depart Aveiro via Train

26 minute train ride

Price: 9.50 a‚¬ ($ 12.30 USD)

1200

Arrive in Coimbra

Get Snack at a local restaurant

Budget: 5 a‚¬ ($ 6.50)

1300

Check into Grande Hostel de Coimbra

Drop off luggage

Price (3 nights): 45 a‚¬ ($58.14USD)

1400

Head to Antonio o Dinis Santos (Grocery)

2 breakfasts, 2 lunches, 2 dinners

Budget: 35 a‚¬ ($45.22 USD)

1530

Walk to Museu da Ciencia da Universidade de Coimbra

Science Museum affiliated with nearby university

Price: 3 a‚¬ (3.87 USD)

1800

Leave Museum, head to Democratica (restaurant) for dinner; cheap popular spot with local students [Not open on Sunday]

Budget: 10 a‚¬ ($12.92 USD)

2000

Walk down historic Rua da Sofia (one of the city’s main thoroughfares) classified as a national monument

Day 7: May 29, 2011 Kayaking Trip

0830

Wake Up, cook and eat breakfast, prepare for kayaking trip

1000

Get picked up for kayaking trip on Rio Mondego

Company: “O Pioneiro do Mondego”

(Pack lunch to have with me)

Price: 20 a‚¬

1600

Return from kayaking trip, head back to Hostel to shower , change, and cook dinner

2300

Go to “aCapella” (local student-run bar featuring live Fado music every night)

Budget: 10 a‚¬ ($12.92 USD)

0100

Back to Hostel and sleep

Day 8: May 30, 2011 Exploring the city of Coimbra

0930

Wake up, cook/eat breakfast

1000

Spend day walking around historic district, pack lunch,

Total Cost/Budget 10a‚¬ ($ 12.92 USD)

1000-1900

Sights and stops will include:

– Se Velha de Coimbra (Old Cathedral of Coimbra) {3 a‚¬};

-Largo da Portagem (Plaza with shopping and cafes) {5 a‚¬ budget};

– Jardim Botanico (Botanical Gardens) {free}; eat packed lunch here

-Igreja e Mosteiro de Santa Cruz (Church and Monastery of Santa Cruz),{free, can pay 1 a‚¬ to see cloister}

-Jardim de Manga (Manga Garden), small park with interesting fountain {free}

-Patio da Inquisicao, (Headquarters of Portuguese Inquisition) dungeons and torturing occurred here {free}

1930

Head back to Hostel, Prepare and eat dinner

2100

Day 9: May 31, 2011 Last Day in Coimbra, Travel to Fatima

0930

Wakeup, Prepare and eat Breakfast

1000

Walk around Praca do Comercio (commercial square); shop eat small brunch at local cafe

Budget: 12 a‚¬

1430

Head to Train Station, Catch Train leaving at 1519 for Fatima

Price: 10 a‚¬ ($12.92 USD)

1611

Arrive in Fatima, Check into Luna Fatima Plaza (Hotel)

Price: 15 a‚¬ (1 Night)

1700

Walk to MiniMercado Eva (Grocery), Buy Breakfast and Lunch items

Budget: 15 a‚¬ ($ 19.40 USD)

1900

Eat Dinner at “Restaurante a Grehla”(Traditional Portuguese grill)

Budget: 12 a‚¬ ($15.50 USD)

2000

Go see Capela das Aparicoes (Chapel of Apparitions) {Apparent Location of Appearance of Virgin Mary}

Price: Free

2200

Free night, explore, possibly go to Lerias bar, read, sleep

Budget: 5 a‚¬ ($ 6.50 USD)

Day 10: June 1, 2011 Ourem Castle and travel to Lisbon

0900

Wake up, eat breakfast

1000

Head to Ourem via taxi or bus

Budget: 15a‚¬

1030

Tour Castle at Ourem, eat packed lunch, explore surrounding area

Price/Budget: 5 a‚¬

1400

Head back to Fatima, prepare to catch 1755 Train to Lisbon

Train Price a‰? 10 a‚¬

2039

Arrive in Lisbon (Entrecampos Station), take metro to Baixa/Chiada Station

3-Day Lisboa Card(Free Public Transport and State Museum Entry)

Price: 35 a‚¬ ($45.22 USD)

2100

Check into Smile Hostel

Price: (3 nights) 48 a‚¬ ($ 62 USD)

2200

Eat cheap dinner at local restaurant/cafe

Budget: 7 a‚¬ ($ 9 USD)

2300

Explore area for interesting nightlife

Budget: 15 a‚¬ ($19.38 USD)

Day 11: June 2, 2011 First Full Day in Lisbon (Historic sites in the Alfama Area))

0900

Wake up, eat breakfast at a local cafe

Budget: 4 a‚¬ ($5.17 USD)

1000

Walk to Supermercado Chen” (grocery store) buy groceries for rest of stay

Budget: 40 a‚¬ ($51.68 USD)

1130

Walk to and explore St. George’s Castle

Price 5 a‚¬ (30% Discount w/ Lisboa Card) {3.50 a‚¬}

1230

Lunch, then visit Museu Militar (Portuguese Military Museum)

Price: 3 a‚¬ (20% Discount w/ Card) {2.40 a‚¬}

1500

Visit Sao Vicente de Fora (Church of St. Vincent – Lisbon’s Patron Saint)

Price: Free

1600

Wander around “Feira da Ladra” (Thieves Market) check out this famous market

Budget: 3 a‚¬

1700

Visit Se Cathedral de Lisboa (The city’s cathedral), visit cloister

Free, Pay 2.50 a‚¬ for cloister

1800

Walk back to hostel, pass by Church of Santo Antonio, cook and prepare dinner

2000

Walk to waterfront, view sunset at a‰? 2056

2100-2300

Checkout local nightlife, try to see some live fado music

Budget: 7 a‚¬

Day 12: June 3, 2011 Second Day in Lisbon

0900

Wake up, eat breakfast

1000

Rent a “GoCar”, drive around city on self-guided tour

Pick up is near Hostel

1200

Visit Belem Tower

(also eat lunch)

Historic fortress and monument to Portugal’s age of discovery

Free with Lisboa card

1300

Visit Palacio da Ajuda (historic palace turned museum)

Free with Lisboa card

1600

Walk around Belem, visit anything that tickles my fancy

Budget: 10a‚¬, try to take advantage of Lisboa Card

1900

Head back to Hostel and Eat Dinner

2100-

Open night, do whatever

Budget: 15 a‚¬

Day 13: June 4, 2011 Last Day in Lisbon (and Portugal)

0930

Wake up, eat breakfast

Budget for daily activities: 20 a‚¬

1030

Head to the beach, spend most of the day at/around the beach relaxing /soaking last bit of Portuguese sun

1500

Head to any Historical locations of note that I may have seen on GoCar tour but didn’t explore on foot

1900

Dinner at Local Restaurant

Budget: 15-20 a‚¬

2100-

Enjoy last bit of Portuguese night life

Budget: 10-18 a‚¬

Day 14: June 5, 2011 Depart Portugal, Head for Spain

0900

Wake Up, Breakfast, Pack, Check out of Hostel

1030

Catch Bus from Lisbon to Madrid (arrives in Madrid 2030)

Price: 45 a‚¬

Total Cost of Vacation [Portugal]
Item
Price (a‚¬)
Price ($ USD)

Travel

(Airlines, Metro, Busesaˆ¦)

892.54

1153.25

Dining

258.58

334.11

Hotel

180.00

232.58

Events

137.90

178.18

Misc. Activities / Shopping

170.00

219.66

Total

1639.02

2117.78

Tourism And The Disneyland Resort Paris Tourism Essay

Disneyland Resort Paris (formerly known as Euro Disney) is the fourth of the Walt Disney theme parks, built to follow the success of Disneyland in California, Walt Disney World in Florida, and Tokyo Disneyland in Japan. It is located in central France, making it accessible by a two-hour plane flight to more than 300 million people. Disneyland Paris is a holiday and recreation resort in Marne-la-Vallee, a new town in the eastern suburbs of Paris, France. The complex is located 32 kilometers (20 mi) from the centre of Paris and lies for the most part on the territory of the commune of Chessy, Seine-et-Marne. After Tokyo Disneyland opened to great success in 1983, the executives of the Walt Disney Company began plans for a European extension. The company considered many possible locations, but soon chose Marne-la-Vallee, a French town, as the site. Disney CEO Michael Eisner signed the first contract with the French government in 1985, and construction on Euro Disney began in 1988. The information center Espace Euro Disney opened in 1990, keeping the public informed about the ongoing work. The park opened in April 1992, and although 500,000 visitors were expected, only 50,000 came. For the first three years, the park reported large financial losses. Attendance was poor, employees reported high dissatisfaction and the French press grew more appalled at the presence of an America-centric park in their country. In 1994, the park was renamed “Disneyland Resort Paris” in order to dissociate it from the negative press surrounding “Euro Disney.” In 1995, Space Mountain was added to the park’s attractions, and the park turned it’s first-ever profit. The park is still dubiously profitable. Even with much of its debt written off, the company reports billion-dollar deficits: specifically, $2 billion in 2007. However, in 2008, the park was the most-visited attraction in Europe and reports more than 15 million visitors every year receiving more visitors than the Louvre and the Eiffel Tower combined (Christian Sylt, The Independent, 2008).

Why was Euro Disney performing poorly during its first year of operation? Recommend and propose strategies and suggestions to improve the situation?

Michael Eisner, CEO of the Walt Disney World Company, once said, “Fantasy is very hard work.” Eisner was referring to the intensive labor that goes on behind-the-scenes within the Disney Company to create the magic and fantasy which have become synonymous with the Disney brand. From the founder’s humble beginnings (Walter Elias Disney) creating animated cartoons in the 1920’s, to the multi- facetted corporation Disney has developed into, hard work has always been the key ingredient to the success of this entertainment empire. However, hard work does not always lead to success, especially when international expansion occurs. On April 12, 1992, Disney officially opened Euro Disney, a $4 billion USD, and 4,400 acre resort located in Marne- la-Vallee, France. Despite over 7 years of planning and countless hours of research, Euro Disney quickly developed in one of the most costly mistakes in company history. In the first 2 years of operation, Euro Disney lost close to $1.03 billion USD and was forecasted to lose approximately $1 million USD a day for the foreseeable future (Lyn Burgoyne, Euro Disneyland Venture, 2001). The main reason why Euro Disney performed poorly during its first year of operation was due to several factors such as European recession, Cultural differences and Marketing.

Just as Euro Disney opened, Europe was in the middle of an economic slump. Disney felt that they could overcome this issue however; High interest rates and the devaluation of several currencies against the Franc caused Europeans to have little spending power at that time. That results in a reduction in disposable income among the French population. Many of the other countries in Europe were experiencing a similar downward slope during the period.

Disney did not anticipate the huge differences between themselves as consumers and the Europeans especially the French. The entire resort was designed along the same guidelines as the original Disneyland (Rohese Taylor, Disneyland Paris Case Study, 2000). Much of the reasoning behind this strategic approach can be attributed to the success Disney had with the opening of Tokyo Disneyland. According to (Marty Sklar, Vice Chairman and Principle Creative Executive of Walt Disney Imagineering), “The Japanese told us from the beginning, ‘Don’t Japanese us.’ What that meant was, ‘we came here for Disney. We came here for America. Don’t give us Japan, we know Japan.” Disney determined that the Europeans would want the same as the Japanese an Americanized Disneyland. However, the general sentiment among the French was one of indignation at what some called ‘cultural imperialism’. Therefore, Euro Disney was not accepted among the European culture.

Euro Disney was marketed incorrectly to both the consumers and the media. The views of the French were not considered when marketing strategies were created. The resort was marketed in the American-style of “aˆ¦bigness and extravagance”. Instead, Euro Disney should have concentrated on the emotional aspect, marketing that guest would have a unique, extraordinary experience they would not forget (Lyn Burgoyne, Walt Disney Company’s Euro Disneyland Venture, 2001).

To improve the situation, there is a need for Disney to take control of the management decisions and analyzing issues and problems based on their own practice and not to use some team to analyze the problem and have it presented that is way outside the management. Thus, there is also the imperative need to understand and execute appropriate plan of actions that will bridge the gap of culture difference such as knowing what are the characteristics and attitudes of the European people in terms of the nature of business considering what will work on both sides and achieve good marketing strategies that would have connection to promotion and advertising process.

The fact that marketing issues was present, it may be proper for Disney to consider strategies that will cater to resolving such issues and probably focus on useful market tactics. The Euro Disney should implement marketing mix strategies which are the price, product, place and promotion. Promotional discounts for families on weekends will fit in to the European culture and planning more ways on how to make business better despite of business conflicts will cater to resolving those issues. Furthermore regarding the environment and location factors, Disney can choose such locations that have strong sales magnet, something that sales and profits are manageable and that possibly, Disney can opt for transfer of Euro-Disney location considering that all aspects of costs and expenses have to be minimal and does not overspend the resources and the need for a justifiable budget is important as high risks within the management and its process may be evident any time. Moreover, Disney can implement and apply flexible labor systems that will be adaptable to the situation, and is accepted by the French laborers and thus, the need also to cut down costs and manage risks and small changes properly to have balance of business.

Question 2

To what degree do you consider that these factors were a) foreseeable and b) controllable by either Euro Disney or the parent company, Disney?

The factors that played into the unsuccessful first year for Euro Disney could easily be foreseen by either euro Disney or the parent company. The same goes to the factor that Euro Disney and its parent company is controllable. It is evident that French has develop a sense of hostility towards the plans as it was stated in the case study, that they did not want American imperialism invading their country and culture. The worse thing is that Euro Disney worked in the arrogant nature of the American thinking. In this I mean, they expected the Europeans to act as Americans and thrive over this newly designed theme park, thus making things a lot worse. (John Graham, International Marketing, 2002) stated that Paris theater director Arianne Mnouchkin became famous for her description of Euro Disney as a “Cultural Chernobyl.” In the case study, it was also stated that in the fall of 1989, during a visit to Paris, French columnist pelted Michael Eisner with eggs. The joke going around that time was, “For Euro Disney to adapt properly to France, all seven of Snow White’s dwarfs should be named Grumpy.”

The French was disappointed during the early advertising because the advertisements focus more on the size and glitz rather than the types of rides and attractions (Phillip Cateora, 2002). Everyone knows advertisements play a major part that influences the society today and affects our everyday life. Nowadays it seems that the only way to avoid any form of advertising is to isolate oneself and live in a cave but not all advertising is negative and bad. It is found almost everywhere such as just by walking on the street, driving a car or watching TV. (Ference, 2004) reports “Every surface that could possibly have an ad slapped on it such as clothing, buses, taxis, myriad walls and billboards, even the snow you ski on now hawks something.”

Every advertiser or company must do more than just make a product, give it an attractive price and offer it to the consumer, communicate and promote it to their current and future customers, they have to advertise it. Therefore, the ability to foresee that the advertising was getting a negative response was obvious and this could have been somewhat controlled by Euro Disney or the parent company. Advertising bombards us everywhere but it is not without control and regulation by the government, businesses and citizens. This opens one of the major issues in advertising, “the question of law and ethics”. Advertising should be carefully controlled. Society needs to make sure that people are not taken in by misleading advertisements in which Euro Disney make a huge mistake emphasizing the glitz and size instead of different rides and attractions. This can be controllable if Euro Disney followed principles such as telling the truth, showing the truth in which the product should look exactly the same way as the consumers will purchase it. The general impression should as well be truthful because “Advertising is judged not by what it says, but what the consumers thinks it says” (Roman & Mass, 2003, p. 200-202).

Other important factors that managers could have foreseen included the approaching European recession, the Gulf War in 1991 and increased interest rates. External factors that affected business also included the devaluation of other currencies against the franc and competitions that drew the attention of European tourists. These competitions were the world’s fair in Seville and the 1992 Olympics, which was held in Barcelona (Phillip Cateora and John Graham, p. 615). It was apparent that the managers of Euro Disney and Disney separated themselves from their counterparts with many levels and departments. These include the government, banks and other parties that were involved. Some of the Disney managers admitted that they were arrogant and that their attitudes were forceful and controlling. It was as if all would agree to do it the way they suggested, then everything would be just fine and everyone would be happy (Phillip Cateora and John Graham, p. 614).

Question 3

Evaluate the cross-cultural marketing skills of Disney.

The origins of cross-cultural analysis in the 19th century world of colonialism was strongly grounded in the concept of cultural revolution, which claimed that all societies progress through an identical series of distinct evolutionary stages. Culture consists of language, ideas, beliefs, customs, taboos, codes, institutions, tools, techniques, and works of art, rituals, ceremonies and symbols. It has played a crucial role in human evolution, allowing human beings to adapt the environment to their own purposes rather than depend solely on natural selection to achieve adaptive success. Every human society has its own particular culture, or socio cultural system (Encyclopedia Britannica). Cross-cultural marketing is international marketing on a personal level. It means considering cultural differences when planning marketing campaigns and media, realizing the need for a balance between localization and globalization and most importantly, implementing strategies that respect differences while seeking to unify brand messages.

The problem with Euro Disney was that they did not utilize the cross-cultural marketing skills. Based on the case study, Disney executives were told that the French did not eat breakfast so that the meal was downsized but surprisingly the French do eat breakfast. 2,500 breakfasts were served in a restaurant that only held 350 people. They also discovered that the French did not just want croissants and coffee, they wanted bacon and eggs (Phillip Cateora and John Graham, p. 615). This showed that the cross-cultural skills were not employed such as the misinterpreted of data and wrong information retrieved during the environmental scanning of the elements of the European culture. The managers should have known that Europeans were more energetic and will certainly covered more of the Euro Disney theme park and rides than those in the western hemisphere. In contrast to Disney’s American parks where visitors typically stay at least three days, Euro Disney is at most a two day visit. The European vacations were not examined so the theme park did not see the profits and success as hoped. Americans take short breaks but they take them more often. However, Europeans take one month holiday.

The American managers were naA?ve that they thought the Europeans would change their one month tradition and adopt the Americans shorter yet more frequent time off but that did not happen. The French schedule remained the same as they would close the office and factory during the entire month of August. These factors should have been considered. Cross-cultural marketing would have been extremely useful but the parent company’s executives were being quite ethnocentric and it cost a great price (Phillip Cateora and John Graham, p. 615). Needless to say, their cross-cultural skills were unsatisfactory; in fact nonexistent is more appropriate to say. Had they had any skills of this sort, the beginning would have been a success and not such a failed start.

As we now understand, the Europeans have to be “attuned to the nuances of culture so that a new culture can be viewed objectively, evaluated, and appreciated. Just because a culture is different does not make it wrong. Euro Disney marketers should understand how their own American-style cultures influence their assumptions of another culture (John L. Graham, The Global Environment of Global Markets).

Question 4

Do you think the new theme park would have encountered the same problems if a location in Spain had been selected? Discuss

Spain, a country located in south-western Europe, bordering the North Atlantic Ocean and the Mediterranean Sea, between Portugal and France covers a total area of 505,957 sq km. Spain has 4,964 km of coastline. Besides five other places of sovereignty on and off the coast of Morocco, Spain consists of 17 administrative regions, 15 of which are on mainland Spain. Spain occupies four-fifths of the Iberian Peninsula and is a land of immense geographical diversity. It offers the tourist a great deal. Spain’s coastline has long since been a magnet for visitors but in recent years more and more people are spending holiday time, exploring beautiful and cultural Spain, away from the sea and sand. Spain has everything from lush, green forests and mountain ranges, through to endless arid plains and long, sandy beaches (Idealspain, 2010).

Since the 1960’s and the invention of the package holiday, Spain has always been a top tourist destination. There are few areas of Spain that have not seen the effect of tourism. Spain has adapted to cater for tourists and every area offers something different. Northern Spain offers a different type of holiday with lush green forests, un-spoilt nature reserves and clean rivers. This part of Spain has adapted to offer nature holidays and activity holidays, based on the rivers or within the nature reserves. Hotels tend to be more individual and have rural locations. Beach holidays have always been popular in Spain with the attraction of the wonderful climate, clean beaches and ample hotel facilities (Idealspain, 2010).

If the location selected by Disney is in Spain, it would have been met with less criticism and is believed the cultural differences will play a huge role in its success. As I mentioned earlier, Spain is also one of the top tourist’s attraction countries in Europe. Disney would still have to learn the customs and the culture of Spain and incorporate them into the development, implementation and operation of a new theme park. The work habits of the Americans is totally different from Spain in which the Spain’s main concern is focus on life and family first whereas the Americans focus more on themselves and individuality, not the group. This suggests that if Disney theme park is in Spain at least the Spanish which gives top priorities to the families will often bring them to the theme park. (Tom Strong, Spanish Cultural Commentator) gives his view of the differences between Spain and the U.S.A. “In the U.S.A., a newborn baby gets a social security number. In Spain, the newborn gets added to the Libro de Familia. In Spain, it is not at all uncommon for children to stay at home until age 30 whereas in the U.S.A. they would be tagged with the word ‘loser’.

International marketing is all about culture and what we are able to do in marketing to a particular foreign product such as Disneyland to market its theme park is shaped by the cultural variables of the country as well as the great importance to understanding the Spanish culture. The geographical conditions of Spain provide sunshine all year round and milder winter temperatures. The advantages are that it may attract potential customers form the northern Africa and the Middle East because of its wonderful climate. In terms of its purchasing power, total population and it’s density it won’t lose to the French counterpart. The (Central Intelligence Agency World Factbook, 2010) stated that the Spain purchasing power for the year 2009 is $1.367 trillion and its French counterparts is $2.113 trillion and the GDP for Spain is $33,700 whereas the French is $32,800. As a member of the European Union, travel to the southern state already a tourist center in the Union, will yet provide more reason for the launch of Euro Disney. The entry ticket should cover the cost of the Spanish sunshine, sympathy and service, unlike the rest of Europe.

Question 5

If you were the business development manager, what would be the major consideration you would go through before selecting a location for the next Disneyworld? From your discussion select a location you think will be the next Disneyland site.

As a business development manager, I will have to take into consideration about some in depth knowledge and analysis about a country’s background before selecting the location for the next Disneyworld. There are many factors in the macro-environment that will affect the decisions of the managers of Disney. Tax changes, new laws, trade barriers, demographic change and government policy changes are all examples of macro change that will help Disneyworld to know more about the foreign market conditions and the external forces. To help analyze these factors I will categorize them using the PESTEL model.

Political factors may refer to the government policy such as the degree of intervention in the economy. What goods and services does a government want to provide? To what extent does it believe in subsidizing firms? What are its priorities in terms of business support? Political decisions can impact on many vital areas for business such as the education of the workforce, the health of the nation and the quality of the infrastructure of the economy such as the road and rail system (Aguilar, F.J., Scanning the business environment, 1967).

Economic factors include interest rates, taxation changes, economic growth, inflation and exchange rates. As we all know a shift in economic can have a major impact on a firm’s behavior. For instance higher interest rates may deter investment because it costs more to borrow a strong currency may make exporting more difficult because it may raise the price in terms of foreign currency inflation may provoke higher wage demands from employees (Aguilar, F.J., Scanning the business environment, 1967).

Social factors are changes in social trends which can impact on the demand for products and the availability and willingness of individuals to work. In the UK, for example, the population has been ageing. This has increased the costs for firms who are committed to pension payments for their employees because their staffs are living longer. The ageing population also has impact on demand for example; demand for sheltered accommodation and medicines have increased whereas demand for toys is falling (Aguilar, F.J., Scanning the business environment, 1967).

Environmental factors include the weather and climate change. Changes in temperature can impact on tourism industry such as Disneyland. With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant issue for firms to consider. The growing desire to protect the environment is having an impact on many industries such as the travel and transportation industries for example, more taxes being placed on air travel and the success of hybrid cars and the general move towards more environmentally friendly products and processes is affecting demand patterns and creating business opportunities (Aguilar, F.J., Scanning the business environment, 1967).

After the extensive analysis of these major external forces, I would think the next Disneyland site should be in Canada. I think it should be top in priority because Canada is rich in history, landscapes and its aboriginal cultures. Canada is a country with much diversity as it has mountains, national park and alpine forest. According to the Nation Brand Index (Anholt and GfK Roper research agencies, 2008) that measures the world’s perception of 50 nations by interviewing 20,000 adults from 20 countries, the friendliest nation in the world is Canada. Canada has hosted several high-profile international sporting events, including the 1976 Summer Olympics in Montreal, the 1988 Winter Olympics in Calgary, and the 2007 FIFA U-20 World Cup. Canada is the host nation for the 2010 Winter Olympics in Vancouver and Whistler, British Columbia (The Vancouver Organizing Committee for the 2010 Olympic and Paralympics Winter Games, 2009) which we can see is obvious that it is a place for major tourists attraction which can bring advantages for Disneyland.. This scientific approach to friendliness may seem a bit formal, but indeed, the Canadians are really quite hospitable, kind people and are truly worthy of honors. Many Europeans and Americans travel to this country as it is less expensive if compared to the rest of Europe. The Europeans are most likely to head there during august, the people from the United States usually head up during spring break, and many companies offer trips to Canada as incentives, bonuses and conferences. Visitors from central and South America also visited Canada.

There is an influx of expatriates moving to Canada as many want to go there to escape the Asian life and as well to pursue “The American Dream”. Having stated all of this, it is still very important to that the tunnel vision of ethnocentrism be avoided. Although there are advantages and reasons supporting why Disney can do well with its current operation style because they are neighboring countries, Canada’s culture, beliefs and morals still vary. Like other countries, Canada is not considered to be a country of “workaholics” as the United States is stereotyped to be. The family or group is still top priority versus the American’s view of individual accomplishment being the top goal. It is important to learn from the mistakes that were made when Euro Disney was started. Having offices and managers from the country will be detrimental. Incorporating Canada’s culture and examining the tourists’ activities, practices and trends will be crucial to the making or breaking of a Disney in Canada.

Conclusion

Euro Disney has greatly enhanced their product since the troubled beginnings in 1992. During this period, many key lessons were learned about the relationship between culture and product offering. These lessons learned became the basis for future development in the European market. Today, the Disneyland Paris Resort is marginally profitable and is experiencing high, yet stagnant, attendance rates. It would be presumptuous to label the resort a success, especially since its net total loss is still over $700 million. However, changes in the marketing and design of the resort have led to profitability and gradual acceptance among the European citizens. In order to increase profitability and attendance, three factors must be achieved: product marketing must be increased, the current marketing strategy must be enhanced and ethnocentric obstacles must be overcome. There exists long-term optimism for the future of Euro Disney due to the strong foundation it has developed over its 10 years of existence, the strong financial backing of the investors, and its plans for future development within the European culture. With proper strategic planning and a relentless pursuit to continue to learn and adapt to the European culture, Disneyland Paris will be a successful resort.

Bibliography

Aguilar, F.J. (1967), Scanning the business environment. New York: Macmillan.

Cateora, Phillip & Graham, John (2002), International Marketing: Eleventh Edition. New York: McGraw-Hill.

[Online] CIA – The World Fact book (2010). https://www.cia.gov/library/publications/the-world-factbook/geos/fr.html, Accessed on February 18, 2010.

[Online] CIA – The World Fact book (2010). https://www.cia.gov/library/publications/the-world-factbook/geos/sp.html, Accessed on February 19, 2010.

Della Cava, Marco (October 10, 1999), “Theme parks are staking bigger claims in Europe.”

Prada, Paulo & Orwall, Bruce (2002), “Mickey’s Bosses Learn From Past Mistakes in Opening

New Park in France.” Dow Jones Interactive Business.

Schneider, Mike (2001), “Theme Parks Adapt to Nations Cultures; Disney, Other Firms Look Outside North America for New Markets.” Dow Jones Interactive Business.

[Online] Idealguides Ltd Group of Companies (2010). http://www.idealspain.com/Pages/Information/GeographyHeading.htm, Accessed on February 20, 2010.

[Online] Sylt, Christian (2008), Magic results: Euro Disney plans new hotels. http://www.independent.co.uk/news/business/news/magic-results-euro-disney-plans-new-hotels-899529.html, Accessed on February 21, 2010.

[Online] La-Vallee, Marne and Chu, Jeff (2002), Happily Ever After? http://www.time.com/time/magazine/article/0,9171,901020325-218398,00.html, Accessed on February 21, 2010.

Tourism And Regional Development In Romania Tourism Essay

1. Introduction

Considering its largely acknowledged economic and social effects, tourism represents a sector of great interest to many countries’ development strategies (Zanina, 2011), (Egan 2003). The positive impact of tourism development is usually addressed in connection with the balance of payments, regional development, diversification of the economy, income levels, state revenue, employment opportunities (Pearce, 1991). The tourist life cycle, the local tourist strategies and policies, the use of information and communication technologies in promotion campaigns, etc. have an important influence in this context (Quian, 2010), (Hu, 1996).

As far as regional development is concerned, tourism is seen as a driver able to turn to good account the less developed regions’ potential and, thus, to contribute to a more balanced distribution of economic activities over time and space as well as to the co-ordination of various policies in an inter-sectorial perspective (Nijkamp, 1999), (Constantin and Mitrut, 2008). It can also bring about encouraging responses to the question of regional competitiveness, based on the positive influence on regional employment and income. As a result of the indirect and induced effects, tourism generates jobs not only in its own sector, but also in connected sectors such as financial services, retailing, telecommunications, etc. However, the regional multipliers record significant variations, depending on the characteristics of each region, locality, project, etc. so that careful analyses are recommended in order to promote those projects able to generate the most important benefits to the region.

Highly beneficial are the coastal, mountainous, urban and historic regions as well as those with exquisite natural resources. On the other hand, regions with different profile such as rural regions promoting green tourism, leisure and nature activities, the remote ones or undergoing industrial restructuring can also benefit from tourism growth (OECD, 1999)

A focus on the factors that influence tourism development is also required in this respect, considering that, depending on the regional profile in terms of tourist attractions and economic situation, they might have a different significance within the corresponding strategies (Aghdaie and Momeni, 2011; Fletcher and Cooper, 1996).

Thus, Crutch and Ritchie (2005) quoted by Koufodontis et al. (2007) place a special emphasis on the physical, economic and social factors embedded in the so-called “region’s image”. Among them, the supporting factors and resources such as infrastructure, accessibility, facilitating resources (human, knowledge and financial capital), hospitality, and factors political will seem to play a special role.

Only infrastructure alone, to mention one of them, is a multifaceted factor, with manifold implications. It is considered a component of the regional tourist product, comprising basic devices, buildings and service institutions of a major importance for economy and society. The main defining elements relating to a certain destination refer to accommodation facilities, gastronomy facilities, transport to destination, services for active leisure (e.g. ski resorts, sailing schools, golf clubs, etc.), retail network, other services (e.g. information, equipment rental companies, etc.) (Panasiuk, 2007).

From a broader perspective, the Travel and Tourism Competitiveness Report prepared by the World Economic Forum (2011) has developed a complex, overall competitiveness index made of three main subindexes, namely regulatory framework, business environment and infrastructure and human, cultural and natural resources. Again, if reference is made to the business environment and infrastructure component, the corresponding subindex takes into consideration the following pillars: air transport infrastructure, ground transport infrastructure, tourism infrastructure, information and communication technical infrastructure, price competitiveness in travel and tourism industry.

Consequently, the regional policy measures meant to improve the frame conditions for tourism development at regional and local level play a key role: they should constitute a coherent ‘package’, including economic, legal, institutional, infrastructure, cultural and social elements. The aim of the package must be the definition of a regional profile, stressing and taking advantage of specific feature of each local area (Funck and Kowalski, 1997).

Based on these overall considerations our paper aims to discuss the tourism development factors proposing Romania as a relevant case study from two complementary perspectives: on the one hand, it displays an uneven regional development, which requires appropriate solutions in terms of regional strategies and policies; on the other hand the less developed regions have an important tourist potential, which might and should be turned to good account in order to reduce the gap separating them from the developed ones. Though, despite this potential the results are far behind the expectations, so that the study of the factors that still need a special consideration is highly required.

In line with the results provided by the World Tourism Organization via the country ranking in terms of Travel and Tourism Competitiveness Index (Blanke and Chiesa, 2011), which indicate the weak infrastructure as one of the major obstacles for the development of the tourism in Romania, we have proposed and tested a model able to quantify and shed light on the regional disparities in this respect.

Accordingly, the paper is organized as follows. First, a review on the tourism development in Romania is provided, emphasizing the disparities between its eight NUTS 2 regions. Second, a couple of econometric models are elaborated and tested in order to evaluate the impact of infrastructure on tourism activity, revealing the specific bottlenecks at regional level. Third, various solutions for tourism support, focusing on those able to surmount the infrastructure hurdle are discussed.

2. General discussion on tourism development in Romania

The evaluation of Romania’s tourist patrimony relies on a comprehensive activity of tourist zoning that was first developed in 1975-1977 and then periodically updated. Considering tourism as a system at national scale it has aimed at establishing a model for evaluating, constructing a hierarchy and proposing the most suitable ways of turning the tourist patrimony to good account. Multiple criteria have been used in order to delimit the tourist zones and to propose the priority actions in each specific case. As a result, a wide range of tourist zones have been identified, some of them of a particular importance to the European and world’s natural and cultural heritage.

Thus, the natural patrimony includes the Delta of Danube as biosphere reservation, the Romanian shore of the Black Sea, the Romanian Carpathians, North Oltenia, Banat area, the Danube Valley, and so on. The most representative areas for the cultural heritage are North Moldova (with monasteries and churches declared world’s heritage by UNESCO), the medieval core of Brasov and Sibiu cities in Transylvania, the medieval fortress of Sighisoara – also in Transylvania (the only one still inhabited in Europe), Bucharest and its surroundings, the Greek, Dacian and Roman archaeological sites in Dobrogea and Transylvania, the Neolithic archaeological sites in Moldova – most of them located in extremely attractive areas from natural beauty viewpoint as well.

More recently, the Spatial Planning of the National Territory has structured the zones of a major tourist potential into two categories, namely: (1) zones of a highly valuable and complex tourist potential (24% of the national territory), which includes national parks and biosphere reservations, protected national areas, cultural patrimony of national and international interest, museums and memorial houses, spa resources [i] ; (2) zones of a high tourist potential (34% of the national territory), with natural and cultural patrimony resources of especially national interest.

An important characteristic of Romania’s natural and cultural-historic patrimony is its relatively well-balanced territorial distribution that has a particular significance especially for the lagging regions, with other economic activities less developed.

Based on its potential contribution to the general economic recovery, competitiveness and reduction of interregional disparities tourism is approached by all significant actors – population included – as one of the priority sectors of the Romanian economy. All governments after 1990 have included tourism development in their strategies, this interest being reflected by its privatization prior to other sectors [ii] . Though, the results recorded in the last fifteen years are far below the expectations: the rate of tourism growth is under the economic growth rate and the contribution of tourism to GDP is pretty low (2.3% in 2005 and approx. 2.0% in 2009 according to the methodology of the National Institute of Statistics [iii] .).

According to the Travel and Tourism Competitiveness Index launched by the World Economic Forum in March 2007 Romania was ranked the 76th among 124 countries in 2006, with a score of 3.91 on a scale from 1 to 7. In 2011 the overall rank of Romania is 63, with a score of 4.17. With its three pillars referring to travel and tourism regulatory framework, business environment and infrastructure and human, cultural and natural resources, the index reveals relatively good results in terms of policy rules and regulations, price competitiveness in travel and tourism industry, human resources (education and training, workforce wellness), natural and cultural resources and quite poor results in terms of environmental regulation, air transport infrastructure, ICT infrastructure, availability of qualified labour. As a result, about Travel and Tourism Competitiveness Index Romania is behind almost all former or current EU candidate countries such as Estonia (score 4.88 and rank 28), Czech Republic (4.77 and 35) , Slovakia (4.68 and 37), Hungary (4.54 and 40), Slovenia (4.64 and 44), Bulgaria (4.39 and 54), Poland 4.38 and 63), etc. and, respectively, Croatia (4.61 and 38), Turkey (4.37 and 52) (Source: The Travel & Tourism Competitiveness Report 2011, World Economic Forum, Geneva, 2011).

3. Some comments on the number of departures and arrivals of international tourists in Romania

Romanian tourism has seen important changes during the transition from planned economy to market economy. Table 1 presents a series of indicators calculated in order to characterize arrivals and departures of tourists in Romania during the period 1990 to 2010, and also during the political cycles in this period. Statistical indicators are computed on the total number of tourists and transport categories.

Table 1. The dynamic of the arrivals and departures of tourists for Romania (%)

Indicator
Index/rhythm
Time period for the indicator

1990-2010

1990-1992

1993-1996

1997-2000

2001-2004

2005-2010

Arrivals of tourists in Romania

Total

Index change

114.8

98.0

90.0

102.2

133.7

128.4

The average annual rate of change

0.7

-1.0

-3.5

0.7

10.2

5.1

Road transport

Index change

161.0

131.5

94.5

98.9

149.1

133.4

The average annual rate of change

2.4

14.7

-1.9

-0.4

14.2

5.9

Railway transport

Index change

9.5

48.0

49.0

110.6

64.7

72.8

The average annual rate of change

-11.1

-30.7

-21.2

3.4

-13.5

-6.2

Air transport

Index change

448.0

113.7

147.2

122.9

100.0

132.1

The average annual rate of change

7.8

6.6

13.8

7.1

0.0

5.7

Ship transport

Index change

63.6

57.4

110.3

82.5

137.8

82.4

The average annual rate of change

-2.2

-24.2

3.3

-6.2

11.3

-3.8

Tourists departures from Romania

Total

Index change

96.7

96.7

53.4

102.3

108.8

152.7

The average annual rate of change

-0.2

-1.7

-18.9

0.8

2.9

8.8

Road transport

Index change

98.6

114.4

46.5

107.6

118.2

137.9

The average annual rate of change

-0.1

6.9

-22.5

2.5

5.7

6.6

Railway transport

Index change

7.8

44.1

74.3

69.0

34.6

87.8

The average annual rate of change

-12.0

-33.6

-9.4

-11.6

-29.8

-2.6

Air transport

Index change

911.3

57.4

184.1

132.1

127.0

274.1

The average annual rate of change

11.7

-24.3

22.6

9.7

8.3

22.3

Ship transport

Index change

16.8

24.8

144.0

82.7

38.3

51.4

The average annual rate of change

-8.5

-50.2

12.9

-6.1

-27.3

-12.5

Figure 1. The ratio between the number of arrivals and departures of tourists in Romania during 1990 – 2010

During the period 1990 – 2010 the two indicators, departures and arrivals of tourists have evolved quite different. Over the period 1990 – 2010 the number of arrivals of tourists in Romania recorded an increase of 14.8% with an average annual rate of 0.7%. For the same period, departures of tourists fell by 3.3% with an average annual rate of -0.2%. Figure 1 shows the evolution of ration between the annual number of arrivals and departures of tourists for Romania in the period 1990 to 2010. The values aˆ‹aˆ‹of this ratio for the entire period are subunit which shows that throughout the analyzed period, the annual number of tourist arrivals in Romania was lower than the number of tourists’ departures from Romania.

During the analyzed period, the data series of the number of departures and arrivals of foreign tourists in Romania are non-stationary, and they are integrated of order 1. Table 2 presents the results of applying the ADF (Dickey and Fuller, 1979) and Philips-Peron (Philips and Peron, 1988) tests used to determine the properties of stationarity and to determine the order of integration of the two data sets.

Table 2. Unit root tests

Variables
Dickey-Fuller
Philips-Perron

L

trend

trend

1

Yes

Yes

0

No

No

3

Yes

Yes

2

Yes

Yes

The null hypothesis H0 is non-stationarity of the variable. For each case the statistics value is specified and statistical probability of a type I error in given between brackets.

Here, N_DEP_T means the number of departures during a time period and N_ARRIV_T designates the number of tourist arrivals during the same period.

The two tests indicate non-stationarity of the data series of the number of departures and arrivals of foreign tourists in Romania. These series are non-stationary in levels but are stationary in first difference which shows that the two series are I(1). Furthermore, arrivals are stationary around a deterministic trend, while departures don’t have this property. These properties are confirmed by applying two statistical tests: ADF and PP.

In the following we mention some of the most plausible explanation of these evolutions. Firstly, political changes in 1989 caused an increase in the number of Romanian tourists who went abroad in the first years that followed. Secondly, the accession to the European Union caused a considerable increase in the number of Romanian tourists who went abroad, this being an immediate consequence of the free movement within the European Union. The largest growth of Romanian tourists who went abroad occurred in the 2005-2010 period of time. During this period the average annual growth rate was 8.8%, this growth being the immediate result of the accession to EU starting on January 1, 2007. The number of Romanian tourists who went abroad in the first three years of accession was 23.8%, 46.78% and 31.6% higher compared with 2006.

Thirdly, the evolution of the number of Romanian tourists went abroad was caused by an increase in the average wage in the economy. During the period 1990 – 2010 the average annual growth rate of the average wage in the economy was 0.82%. The most significant increase occurred in the periods 2001 – 2004 and 2005 – 2010 for which the annual average increases were 7.85% and 11.37%. Table 3 presents the results of the Granger test applied to determine if there is a Granger causal relationship between the number of departures and the evolution of the average wage in the economy (N_NAW). The results confirm that the evolution of the average wage in the economy Granger causally determined the number of Romanian tourists who went abroad. By applying this statistical test we also established that there is no Granger causality between the number of tourists’ departures and arrivals.

Table 3. Granger causality analysis between the number of departures, number of arrivals, and average net wage in the economy.

Hypothesis

F statistics

Decision

N_DEP_T does not Granger Cause N_NAW

0.09994

N_NAW does not Granger Cause N_DEP_T

5.68426

N_DEP_T does not Granger Cause N_ARRIV_T

0.32140

There is no causal relationship between variables

N_ARRIV_T does not Granger Cause N_DEP_T

0.57462

4. Features of regional tourism development

One of the main reasons of this unsatisfactory overall image is the insufficiency and bad state of both general and tourism-specific infrastructure, unable to meet the requirements of a modern, internationally competitive tourism. Other disfavouring factors in the last fifteen years have envisaged the rigidity of tourism administrative structures, the social instability, the poverty which the majority of population is confronted with, the deficient supply of food, fuel and other goods absolutely necessary to a proper tourism, the low managerial competence and tourism personnel’s behaviour, the image of Romania abroad, various environmental damages.

Some of these drawbacks have been partially alleviated as a result of including tourism development as one of the priorities of the National Development Plan since 1999 (when the first plan was launched) and, consequently, of supporting it via national budget as well as EU pre-accession instruments (e.g. Phare).

The investment and management efforts in tourism made it possible to stop the decrease in the total activity volume of this sector recorded between 1990 and 2000 and an upward trend has been recorded starting from 2001. Table 4 shows the average annual rates of three important economic indicators used to characterize the tourism activity at national level and each of the eight development regions: accommodation capacity (AC), staying over night (SON) and arrivals (A). The annual average rates are calculated for 1990 – 2010 period of time, and the electoral cycles of this period: 1990-1996, 1997 – 2000, 2001 – 2004 and 2005 to 2010.

Table 4. The evolution of the main indicators of tourism between 1990 and 2010

Region
Accommodation
Capacity (AC)
(number of beds) 2010
Staying over night (SON)
2009
Arrivals (A)
2009
Indicator
Average annual growth rate
1990-2010
1990-1996
1997-2000
2001-2004
2005-2010

North-East

21279

1509550

1509550

AC

-0.80

-4.62

-2.42

0.41

2.60

SON

-4.45

-10.88

-6.43

4.96

1.38

A

-4.77

-11.05

-3.15

1.94

1.26

South-East

13687

4423728

4423728

AC

-0.86

-3.13

0.20

-0.30

0.58

SON

-3.65

-9.43

-4.59

4.45

1.09

A

-5.92

-10.79

-3.66

-1.23

-3.68

South

22625

1674366

1674366

AC

-0.86

-2.13

-1.88

1.80

0.30

SON

-4.32

-9.95

-6.08

1.79

0.76

A

-4.73

-10.19

-6.59

0.44

-1.89

South-West

16410

1441604

1441604

AC

-2.34

-7.05

-3.68

-3.12

2.26

SON

-5.27

-11.09

-8.98

2.24

2.31

A

-5.29

-12.69

-1.84

-1.90

-2.60

West

23257

1676496

1676496

AC

-0.56

-2.73

-0.85

-1.88

1.78

SON

-4.48

-12.46

3.32

-0.33

1.82

A

-4.58

-12.05

3.13

0.10

-2.24

North-West

26103

2098589

2098589

AC

-0.54

-1.55

-1.18

-0.83

0.06

SON

-3.72

-10.36

-3.32

5.40

-0.03

A

-4.38

-12.56

0.16

1.61

-2.16

Centre

42029

2665298

2665298

AC

-0.26

-3.15

-1.61

-0.27

3.45

SON

-3.23

-7.74

-3.97

5.64

0.11

A

-4.46

-10.14

-5.36

0.94

-1.07

Bucharest-Ilfov

23120

1835779

1835779

AC

2.99

-5.35

-3.84

7.49

15.55

SON

-0.65

-8.67

-10.23

14.37

4.46

A

-2.59

-11.97

-10.67

12.00

5.51

Romania

188510

17325410

17325410

AC

-0.61

-3.20

-0.83

-0.30

1.92

SON

-3.59

-9.86

-4.94

4.97

1.42

A

-4.85

-11.20

-3.46

0.69

-1.46

Data source: NIS TEMPO 2011 and the authors processing of data; for SON and A the rhythms are calculated for the period 1990 to 2009.

We highlighted the following aspects of the evolution of the considered indicators on national level and for the eight development regions on the 1990-201 period:

the average annual growth rate of the accommodation capacity of 2.99%, was recorded only in the Bucharest – Ilfov region, in all other regions it have declined between -0.26% annual average in the Central region and -2.34% in the South – West region; at national level the decline was -0.61% on average each year;

in all developing regions there has been an annual average decrease in the number of overnight stays over the whole period 1990 – 2009. The annual average decrease of this index value among regions ranged between -5.27% in South-West and -0.65% in the Bucharest-Ilfov region. Nationally there was a decrease in the annual average number of overnight stays of -3.59%;

the number of arrivals over the 1990-2010 period decreased every year with an average of -4.85%. The annual average rate for the eight regions ranged from -5.92% in the South – East region to 2.59% in the Bucharest – Ilfov region;

the most significant decrease for the three indicators in most regions were recorded during the first two election cycles between 1990 to 2000. Since the period 2001 – 2004 there is a noticeable stabilization and a relative increase of values aˆ‹aˆ‹for the three indicators both at national and regional level.

This tendency is correlated with the overall evolution of the Romanian economy, which has recorded an important economic growth during 2000-2008 period (annual growth rates were above 5%). During the 2001 – 2004 period the annual average GDP growth was 6.0% and for the period 2005 to 2010 it was 3.9%. The economic growth rate during 2005 – 2010 has been reduced significantly due to economic crisis that affected the Romanian economy in 2009 and 2010. In the period following the political changes of 1989 a reduction of the values aˆ‹aˆ‹of above mentioned three indicators has been recorded at both national and regional levels because of the following reasons:

the number of employees in the economy has significantly decreased and thus the number of employees who requested a ticket for rest and treatment by union decreased. In the planned economy era unions distributed a considerable number of tickets for rest and treatment to its members. Many times the employee’s right to such a ticket turns into an obligation to accept it. Under these conditions a large number of spa resorts have completely closed their accommodation capacities;

a significant number of Romanians have preferred spending the holiday in other countries, mostly in Greece and Turkey;

public road infrastructure and railways has not developed to the level required by Romanian and foreign tourists. The average annual increase in length of public roads during 1990 – 2010 was only 0.62%, and the length of railways was reduced on average by -0.25% annually.

The accommodation capacity in use increased by 8.39% at national level as a result of the major increase in Bucharest-Ilfov region. Most of the other regions recorded smaller or bigger increases and only in the South region the accommodation capacity in use decreased. This is a result of the restructuring and modernization of the tourism capacity inherited from the communist period. The progress is visible in term of increase in the share of higher quality standard capacities (3-5 star capacities), especially after 2000 (Baleanu et. al., 2008) (Olteanu, 2011).

As far as the distribution by region of the accommodation capacity is concerned, an important disequilibrium can be easily noticed between the South-East region and the rest of the country, which is explained by the high concentration in the Black Sea area (Secara, 2010). However, the use of the accommodation capacity in this area is characterized by a big seasonality.

The number of arrivals and staying over night has recorded different evolutions: the number of arrivals increased whereas the number of staying over night decreased, especially in the seashore area. These figures not only reflect the increase of the weekend tourism but also the increase in the number of tourists who chose as seashore destinations other countries such as Bulgaria, Turkey, and Greece (Olteanu, 2011).

The index of using the accommodation capacity has a slightly increasing overall trend, as a result of combining important decreases (especially in the Black Sea area and Bucharest), but it has a relatively low overall level: only approximately one third of the accommodation capacity is used (Table 5).

Table 5. The index of using the accommodation capacity in function in 2007 compared with 2000 (percentage)

Region
2000
2008

North-East

31.7

29.3

South-East

44.8

42.5

South

28.9

32.8

South-West

42.6

41.2

West

36.3

35.1

North-West

29.9

32.7

Centre

28.0

30.0

Bucharest-Ilfov

36.3

24.6

Romania

35.2

36.0

Source: Territorial Statistical Yearbook of Romania, 2009

Romanian tourism in general is still confronted with the outdated and insufficient infrastructure, unable to offer proper access to architecture monuments, archaeological sites, to meet the demand of parking lots, information points for cultural sites, belvedere points for defence walls, medieval fortresses, churches, monasteries, camping lots for pilgrims, etc. Also the connected facilities – hotels, motels, restaurants, gas stations, car rental firms – are still behind the demand. The transportation infrastructure is particularly weak in all its forms – road, rail, naval and air, with an emphasis on road infrastructure: the highways are almost inexistent while the modernized roads are insufficient and concentrated especially around the Capital city (Table 6).

Table 6. The density of public roads and modernized public roads (Km/100sq Km) in 2008

Region
PR/100kmp
MPR /100kmp

North-East

36.6

9.34

South-East

30.7

6.64

South

36.5

11.79

South-West

36.5

12.56

West

32.1

9.17

North-West

35.4

8.39

Centre

31.4

8.17

Bucharest-Ilfov

48.9

36.37

Source: Territorial Statistical Yearbook of Romania, 2010

In almost all regions the public roads have a low density, whereas the modernized public roads represent less than one third out of total. The exception is the Bucharest-Ilfov region, where the density is higher than in the rest of Romania and the modernized public roads represent approximately 60% of the total length at country level. For comparison, in 1998, the density of public roads was 165.45 in Denmark, 64.75 in Germany, 51.29 in Sweden (referinta????).

The importance of public roads is explained by the fact that a big share of tourist activity in Romania is supported by road transportation. Thus, according to NIS da

Tourism And Hospitality Management

The public sector in tourism and hospitality industry plays important role in the development of small businesses. This sector is highly important in micro sector development of the industry. The services of public sector of the tourism and hospitality industry include strategic directions that are important for the overall coherent development of the industry (Teo, 2003).

The private sector of the tourism and hospitality industry plays important role in the active and passive development of the industry. This sector plays important role for transforming money from one country to the other. This sector is highly important for the economic development of tourism and hospitality industry (Teo, 2003).

The third sector of tourism and hospitality industry is voluntary tourism which refers to paid activities such as formal businesses (Teo, 2003). This sector play role in terms of local communities such as difficulties regarding resident involvement.

1.2 Evaluate a range of different tourism and hospitality sectors and the organization that operate within them

The tourism and hospitality industry is very broad industry which also includes service sectors such as restaurants, logging, event management, theme parks, transportations and other additional fields. The tourism and hospitality industry accounts for several billions across the world which depends on the disposal income of customers to facilitate them in leisure time. On the other hand, hospitality sector of the tourism and hospitality industry such as hotel, restaurant and other groups may also be included.

On the whole, the tourism and hospitality industry can be divided into eight major segments. These are:

Accommodation

Events and Conferences

Adventure Tourism and Recreation

Tourism Services

Attractions

Transportation

Food and Beverage

Travel Trade

Analyze stakeholders roles within tourism and hospitality industry

The individuals, organizations or groups that have interest or stake in an organization are termed as stakeholders. Practices of organizations can have long lasting impact on the interests of stakeholders. Therefore, it is very important to analyze the interests of stakeholders. In tourism and hospitality industry, the organizations or individuals who have put capital or efforts in the establishment or development of the industry can be referred to stakeholders of the industry. In addition to this, different stakeholders in private and public sector organizations in tourism and hospitality industry can exist (Belinda, 2008). Businesses in tourism, government and communities can have stake in the tourism and hospitality industry. Tourists cannot be considered as actual stakeholders of the tourism and hospitality industry because they do not make significant money through this industry. On the other hand, they can influence the practices of the tourism and hospitality industry because they are involved in the industry from different aspects. Some of the stakeholders of the tourism and hospitality industry are as follows:

Government:

The most important stakeholder of the tourism and hospitality industry is government because policies and regulations of the tourism and hospitality industry are shaped by the government. In context of overall tourism and hospitality industry, government influences the practices of organizations in following respects (Belinda, 2008):

By consultation with the private sector and other communities, it plans the policies of the tourism industry

It ensures that the organizations in tourism and hospitality industry follow the planned policies and regulations

It provides support in financial terms and guidance to the companies in tourism and hospitality industry

It ensures that stability and law and order situation of the country for attracting tourists

Industrialists:

Industrialists are also very important stakeholders of the tourism and hospitality industry. Industrialists include travel agencies, organizations in the industry, and transport agencies. The organizations in the tourism and hospitality industry include hotels, restaurants, and shopping centers. The practices of all these organizations can affect the operations of the tourism and hospitality industry, as a whole. Industrialists can have following interests in the tourism and hospitality industry:

To make investment in the tourism and hospitality industry

To market their products and services in different organizations in tourism and hospitality industry such as hotels, restaurants and shopping centers

To influence the companies for promoting their products and services

Customers/tourists:

Customers or tourists are also important stakeholders in the tourism and hospitality industry. This group of stakeholders demands value, quality and high customer care. These are the major source of money for the organizations operating in the tourism and hospitality industry (Belinda, 2008).

Employees:

Employees are the internal stakeholders of the tourism and hospitality industry. They have high level interest in the internal policies of the tourism and hospitality industry. They demand quality work environment, job security, compensation and truthful communication in the organizations (Belinda, 2008).

Local Communities:

In tourism and hospitality industry, local communities are important stakeholders. This is because they attract tourists and impact on their intentions of visiting a particular place. They can have stake in the tourism and hospitality industry in terms of job security, environment protection, promotion of local products and services and promotion of local culture and values.

1.4 Analyze the nature of changes to the structure of tourism industry over last 15 years?

Over the last fifteen years, several changes have occurred in the tourism and hospitality industry. These changes may include

change in oil prices which led to changes in charges of fuel in airlines

Increased capacity of aviation on different routes which attract tourists to the tourism and hospitality industry

low international airfares and cheap packages of travel with discounts which attract tourists towards the tourism and hospitality industry

Trends in consumer demographics which change the behavior of customers for tourism

law and order situation in different countries

Terrorism factor which reduces the tourism in certain countries

On the whole, trends in demographics of customers impact the consumer behavior in the tourism and hospitality industry. It is important for the organizations in the tourism and hospitality industry to make important steps regarding strategic management relevant to these changes. Organizations should make relevant policies to attract customers.

Task Two: Marketing Report
2.1 Analyse issues around sustainability and sustainable development in tourism and apply management strategies accordingly

The sustainable issues in the tourism and hospitality industry refer to the environment protection. It is important for the organizations to apply certain policies regarding these issues to resolve the problems and disagreements. In the global context, the sustainability issues are very important. Organizations need to develop relevant strategies regarding the sustainable development. On the long term basis, organizations need to develop local as well as global strategies for attracting customers and ensuring sustainable development. This is because of integration of sustainable issues across the world. There are many issues in local context which may impact the sustainability in global aspects. Therefore, organizations should integrate their local and global strategies for ensuring sustainability in global tourism and hospitality industry.

2.2 Evaluate certain ways in which tourism can be managed in a sustainable way with reference to given examples

There are three major ways through which sustainability issues in global tourism and hospitality industry. These are:

Resource based tradition: In this method limitations to growth in hospitality industry are evaluated in resource context

Activity based tradition: This refers to the transformation of hospitality industry on dynamic activities

Community based tradition: This refers to the integration of resources and activities in the hospitality industry

2.3 Apply principles of corporate social responsibility to a chosen tourism business

The corporate social responsibility refers to the commitment of the business to ethical and economic development. In tourism and hospitality industry, corporate social responsibility issues are highly important. These issues relate to the health and safety conditions. Moreover, commitment towards employees, customers and shareholders are also included in this context (Bhattacharya, 2011). The Savoy Hotel needs to be commitment towards environment in broad sense to fulfill its responsibility towards society. On the whole, Savoy Hotel needs to show its responsibility towards following sectors:

Workplace

Community

Marketplace

Environment

Task Three: Market Research
3.1 Apply PESTLE analysis to describe the main trends in global tourism industry

A business tool that evaluates the different factors of external environment of an organization is termed as PESTEL analysis. This tool analyzes the political, environmental, social, technological, legal and economic perspectives of the environment in which organizations operate. In perspective of tourism and hospitality industry, this tool determines that whether the industry is suitable or not for investment (Miriam, 2011). The PESTEL analysis of global tourism and hospitality industry is as follows:

Political Factors

Political factors refer to the extent to which government impacts the operations of the organizations in the tourism and hospitality industry. The important political factors such as health protection laws, tax rates, law and order situation and political stability can influence the operations of the organizations in the tourism and hospitality industry. In the global context, political situation in the Middle East can impact the tourism. Moreover, in countries like Afghanistan and Pakistan, where terrorism threats are high, tourism and hospitality industry is declining.

Economic Factors

Economic factors cal also the operations of the tourism and hospitality industry. These factors can influence the revenues and expenses of the organizations operating in the tourism and hospitality industry. The prices of products, raw materials and inflation can impact the industry. Rates of interest and exchange rates can also influence the industry. Financial downturn in the world decreased the purchasing power of the customers and tourists. In this way, overall revenues of the tourism and hospitality industry were impacted in that financial crisis.

Social Factors

Social factors may have long lasting impact on the practices of organizations in the tourism and hospitality industry. Health conscious behavior of customers may impact their purchasing behavior in the hotels and restaurant segment of the tourism and hospitality industry (Butler, 2004). Culture and religious practices of people in a particular country may also impact the practices of organizations in tourism and hospitality industry.

Technological Factors

Technological practices impact the demand and supply factors in the tourism and hospitality industry. Technological efficiency in the tourism and hospitality industry may enhance the demand. If the food technology is efficient in the tourism and hospitality industry, organizations in the restaurants and hotels can have high demand from customers. Organizations can prepare food quickly to meet the demand. Technology may also impact the relationship of organizations in tourism and hospitality industry with the customers. Efficient technologies can impact customer relationship management in the tourism and hospitality industry.

Environmental Issues

There are several environmental factors which influence the practices of organizations in tourism and hospitality industry. Packaging decisions are the major considerations in the tourism and hospitality industry. The practices of organizations in the tourism and hospitality industry which cause pollution may impact the image of the organizations in global context. Global warming, climatic conditions in different regions can also influence the practices of organizations in tourism and hospitality industry.

Legal Issues

There are many legal issues which impact the policies of tourism and hospitality industry. Rules and regulations regarding food practices can impact the organizations in restaurant sector of the tourism and hospitality industry. Laws regarding operating business in a foreign country can also impact the operations of the tourism and hospitality industry.

3.2 Distinguish between the elements of macro and micro environment

The macro environment of an organization is a broad environment which aims at the investigation of major issues. This environment is basically refers to PESTEL environment analysis that allows the researchers to focus at the factors which impact a business in external and broad environment context. These factors may include economic, social, technological, political, environmental and legal factors. These factors impact the organization in different contexts. It is very important for the organizations to adapt to these factors in an effective manner. The results of PESTEL analysis allow the organization to see the factors where its strengths can be capitalized.

Micro environment refers to a small environment which aims at investigation of a research problem in a small perspective. This environment refers to new patterns of organizations. This environment may include internal and small external environment of an organization. Internal environment may include employees and management. On the other hand, external environment may include suppliers, customers, and competitors. Both types of environment are highly important for the organizations to see their effectiveness for the operations of the business.

3.3 Analyze the effects of macro and micro environmental factors on tourism organization

Political factors: Improvement in the trade barriers and opening of new tourism avenues can enhance the scope of Sovay Hotel for tourism (McKercher, 1993)

Economic factors: Low bargaining power of customers and clients reduce the tourism revenues of Sovay Hotel

Environmental factors: high concerns of environment such as pollution influence the Sovay Hotel to mold its practices in environment friendly mode

Legal factors: Laws and regulations in tourism industry impact the Sovay Hotel to mold its practices according to laws

Social factors: behaviors of customers towards healthy food impacts the policies of Sovay Hotel to offer healthy food to customers

Technological factors: improvement in technologies and transportation influence the Sovay Hotel to reframe its practices for attracting customers and tourists

4. Task Four: Sustainability & Corporate Social Responsibility
4.1 Evaluate the stages of market research process
Defining the Problem or Need:

The first stage of the market research process is defining the problem or need. Before conducting the market research, the organizations in the tourism and hospitality industry need to identify the main problem or need of the research. They need to conduct investigation to discuss the need of conducting research and define the problems of the organizations. This stage defines the problems or issues that prevail in the organizations and hinder its performance. In order to find the solution of the problems, research is conducted.

Deciding the researcher

After defining the problem or need of the research in the organization, the next stage is to decide about the researcher who will conduct the research to resolve the prevailing issues. This stage refers to the formulation of analytical framework or methodology for conducting the research. The researcher creates case studies of the organization to make exact framework for the research.

Deciding the methodology

After defining problem and researcher, the next step is to decide about the methodology of the research. This stage refers to the exploration of different methodologies and frameworks for conducting research. These frameworks may include interview, survey or secondary data. It is very important to decide appropriate methodology relevant to the need of the market research. Relevant methodology aims at finding exact solution of the prevailing problems of the organizations (Baker, 2000). There can be qualitative or qualitative methodology for conducting the research. In qualitative methods, discussions are conducted with the relevant members for finding the solution of the prevailing problems. Qualitative methodology refers to the investigation of the problems in theoretical manner. On the other hand, quantitative methodology aims at finding the solution f research problems in quantitative terms. This methodology aims at investigating the research problems in numeric terms. Survey is the best tool for conducting quantitative research. There is another methodology which is used to conduct market research. This methodology is mix f qualitative and quantitative methodologies. Many researchers suggest that mixed methodology is effective for finding the justified and logical answers of research questions.

Data Collection Process

After deciding the research methodology and researcher, the next stage is the data collection process. At this stage, research design is produced for the research. This stage defines the appropriate framework through which research is planned. Aims and objectives of the research are defined at this stage of market research (Saunders et al., 2009). This stage defines that what type of data is to be included in the research. Basically, there are two types of data i.e. primary and secondary. Primary data is the data which does not exists in the earlier records. This type of data is collected for the first time. This data is the most fresh and recent data. Researchers need this data to find the solution of problems. The advantages of this type of data are low biasness, relevance and logical results of research problems. On the other hand, secondary data is the data which exists in the earlier records. This type of data exists in the books, articles and other data bases. Researchers include this data in the research to investigate the issues in theoretical terms. In order to investigate the research problem through secondary data, researchers study existing theories and models regarding the problem. This data is easy to collect. There are specific tools for collecting primary and secondary data. In order to collect primary data, survey, interview, focus group discussions or observations are used. On the other hand, secondary data can be collected through books, articles, newspapers and reports. Whatever the data is, the important consideration is to adopt relevant data tool which can investigate the research problem in effective manner.

Data Analysis

After collection of data, the next stage is to analyze data to find the answers if research questions in an effective manner. At this stage, data analysis techniques are discussed and decided. Data analysis must be relevant to the aims and objectives and research methodology. If data analysis technique is irrelevant to research methodology, justified and logical answers of research question cannot be obtained. Before analyzing data, it is important to present data in tables and appropriate transcripts so that reader can get deep insight of the research. Data analysis must be very effective so that relevant individuals can get benefits from the research findings. If analysis is not appropriate, management cannot get benefit from the market research to decide the solution of problems prevailing in the organizations.

Conclusion and Presenting the Report

The last stage of market research process is presentation of data and conclusion. This stage is highly important for the researchers as well as for management who are responsible for deriving answers of research questions. It is very important for the researchers to present the findings in an effective manner so that management can take decisions regarding the prevailing problems in the organization. The researcher needs to communicate the findings of the research in an effective manner. In market research, management does not take interest in the details of the research process but takes high interest in the findings and conclusion. This is because management has to take decisions regarding prevailing organizational problems. Therefore, if findings are not presented logically and effectively, management’s effectiveness in decision making is impact. It is very important for the researcher to present logical and justified recommendations regarding the research problems so that management can take help in decision making.

4.2 Provide a justified proposal for a suitable market research plan for a given organization

For the Savoy Hotel, following research plan is proposed in the following stages:

Aim and Objectives

Data Collection

Data Analysis

Results and Conclusion

Recommendations

In analyzing services provided by Savoy hotel elegant decor services with stylish Italian architecture for key attraction has been provided. The Florence atmosphere with classic marble and mosaic bathrooms with enjoyable and exhilarating experience attracts customers all around.

4.3 Understand the difference between qualitative and quantitative research and evaluate when each might be appropriate

Qualitative research is basically exploratory research which aims at obtaining reasons, motivations and opinions regarding the research questions. This type of research is conducted through development of hypothesis in quantitative terms (Saunders et al., 2009). This research is used to discover the thoughts, trends and opinions regarding a particular research problem. Qualitative research methods investigate a particular problem in theoretical terms; there are different methods which are used to conduct qualitative research. These methods may include semi structured interviews, observations and focus group discussions. In order to conduct qualitative research, small research sample is selected from the entire population.

On the other hand, quantitative research codifies the research problem through numerical data which can be converted into appropriate statistics. This research method is applied in market research to identify the attitudes, behaviors, opinions and suggestions in quantitative terms. The aim of this type of research is to generalize the results on a large sample (Russ and Preskill, 2001). Quantitative research is used to uncover the aims and objectives of the research in quantitative terms. There are several methods through which quantitative research can be conducted. These methods may include surveys, face to face interviews, website interceptors and online polls.

This type of research focuses on quantities and numeric for finding the solution of research problems. On the basis of statistics and numeric analysis, quantitative research finds the answers of research questions. On the other hand, qualitative research focuses on qualities such as behaviors and attitudes in real manner. The results of qualitative research are presented theoretically rather than numerically (Russ and Preskill, 2001). Quantitative research is applied at the scenarios where aim is to generalize the result on a large population. On the other hand, qualitative research methods are applied on the scenarios where aim is to discover problem in an organizational setting and find solution of problems.

4.4 Evaluate different research methodologies based upon a given scenario

There are different types of research methodologies which are implemented on particular scenarios. Each research methodology focuses on particular aims and objectives (Saunders et al., 2009). Some of the research methodologies are as follows:

Quaitative research

This is first type of qualitative research methodology which refers to investigation of the research problem in theoretical terms. This type of research methodology aims at investigation of research problem in words. In social sciences, qualitative research is conducted. This type of research is conducted in a natural setting so that researchers can get deep insight of the research problem.

Quantitative research

The second type of research methodology is quantitative research which is used to determine the relationship between different factors. The nature of relationship is quantitative.

Mixed research

Mixed methodology refers to mix of qualitative and quantitative methods. This type of research methodology is recommended by the researchers for finding logical and justified answers of research questions.

Action research

This research model refers to studying a particular problem and accomplishing its aims at the same time (Saunders et al., 2009).

Conclusion & Recommendation
Explain each of the 7PS and apply them to a chosen organization
Product:

The Sovay hotel offers services to customers with hotel, restaurants and accommodation service that manage business activities in effective manner.

Hotels

Restaurants

Spas

Amigo

BocconiRistorante

Browns Hotel

Browns

Lincontro

Charles hotel

Augustine

HIX Mayfair

Hotel De Russie

Verdura Golf and Spa

Verdura Golf and Spa

Verdura Golf & Spa Resort

Rocco Forte hotel

Parioli

The Balmoral

Villa Kennedy

Rocco Forte Hotel

Hotel Astoria

Astoria

Gusto

Rocco Forte hotel

Price:

The price of room, suites and halls varies with consumer demand.

The Edwardian Elegance Suite package

785 ?

Every ones an original winter offer

300?

Savoy festive package

395?

Savoy Splendor

295?

Savoy Suite Treat

775?

Sundays at the Savoy package

250?

Bed & breakfast package

305?

Cabaret Theatre package

540?

Impression package

495?

The Savoy element package

825?

Top hat theatre package

465?

The variance in prices in accordance with consumer demand present effective ways of accommodation, theatre package, dinner manage global event and meeting solution.

Placement:

The strategies regarding placement are as follows:

Savoy family Suite

One king and two twin beds

Junior Suite

One king bed

Deluxe Junior Suite

One king bed

Savoy Suite

One king or one queen bed

River view junior suite

One king bed

Edwardian Suite

One Queen bed

Art Deco Suite

One king bed

Art Deco two bedroom suite

One king bed

River view deluxe suite

One king bed

Personality Suite

One king bed

Personality Art Deco Suite

One king bed

Promotion:

24 hour Butler service, tea and coffee service, Audio i-pod service, unpacking service of arrival, fresh flower, daily news paper , magazine selection, leather desk manage to gather effective promotion services. In perspective of consumer demand dining , meetings and activities were offered. Global event and meeting solutions relevant to prestigious revenue services, divine dances with family oriented , personal or signature packages entertain customers.

Fairmont Gold

Guests, honor bar, relaxing comfort , continental breakfast services were offered

Family travel

Mayan, Hawaiian culture with resort, games and museum attractions were offered

Fairmont Golf

Luxury, lodging and property facility for elegant accommodation

Fairmont gift cards

Award winning restaurants, denomination and currency spas

Celebration life

Favorable places for positive celebration of life experience

Physical Evidence:

The services of hotel and restaurants in Canada, United states, Asia, Europe, Mexico, Caribbean and Bermuda, Middle East and Africa in different regions attracts customers. In areas like Dubai, Jakarta, Moscow, Riyadh ,Baku ,Austin and Amman attracts customers all over region.

People:

On website (http://www.fairmont.com/explore/family/) in different languages like English, France, Denmark, Arabic and Chinese were offered. Login and search offers were presented in accordance with family travel, restaurants and bars.

Process:

Facilities were offered with appropriate customer needs and advancement. Most of people all over region gain information through web portals as featured offers like celebrations, culture, discovery, family, food and wine, green and internet were offered.

Evaluate the four segmentation criteria and be able to recommend a suitable market segment for a given organization

Savoy hotel is famous for excitement and glamorous sparkling services to customers all over region. People of every cast, sect and culture had been offered with excellent services of like guest services including babysitting, bell staff, check inout, housekeeping and pet policy. Business service offered includes CD burning, DVD playing, High speed internet access, Microsoft application and VAT refunding service. Similarly Butler services for in-suite check-in and orientation, drink on arrival, complimentary pressing, wake -up call system, dressing service, travelling consultant and personal shopping to entertain services were offered. Wedding planning and event management system for private rooms, Banqueting rooms and high class customer services to entertain customers were offered. Special promotion offers with customer needs and wants for promotion and money compensation for presenting positive image were offered. Dinning, meeting and photo entertainment facility that improves customer attraction manage to gather user attention. Signature offers SANTA Monica, Bab AL Bahr, Fairmont Le Chateau Frontenac and Jasper park lodging service to attract target audience manage to attract customers. SPA and bathing offers to attract customer and made them treatment oriented for perfect customer association with user demand. The differentiation strategy to entertain customers all over region manages to attract customers all over region. The management of hotel and restaur

Tourism And Economic Development In The Caribbean Tourism Essay

The Caribbean is known for its beautiful islands and breath-taking shores. There are numerous sites in this region of thousands of diverse islands. To list a few reasons as to why it’s a huge attraction to tourists from all over the world, then the coral reefs, colorful fruits, golf courses, sailboats and the wonderful sunsets at the beach are just the tip of the ice burg. It’s the perfect place to relax with the family and a Caribbean holiday is the best place if anyone is seeking for a little adventure. The Caribbean seems to have everything for a great vacation from horse riding to hiking, wildlife tourism and much more. Everything from exploring the beautiful waterfalls, going kayaking upriver and even canoeing gives the Caribbean the top most position in tourism category. The Caribbean has both extinct and live volcanoes. It gives a definite adrenaline rush for tourists seeking it. Its tropical rainforests consists of rare and exotic animal species. It is by all means, absolutely beautiful. The Caribbean region consists of thousands of islands and to name a few that are of great tourist’s interest and as stated in “http://wiki.answers.com/Q/What_are_the_names_of_the_Caribbean_islands”: “Anguilla UK, Antigua & Barbuda, Aruba ~ Netherlands, Bahamas, Barbados, British Virgin Islands, Cayman Islands, Cuba, Dominica, Grenada, Guadeloupe ~ France, Hispaniola, Jamaica, Martinique ~ France, Montserrat ~ UK, Netherland Antilles, Puerto Rico ~ US, St. Barthelemy, St. Kitts & Nevis, St. Lucia, St. Martin, St. Vincent & Grenadines, Trinidad & Tobago, Turks & Caicos ~ UK and US Virgin Island.”

It’s not only about the adventures but the Caribbean features cites of its rich heritage and unique architecture. If we were to take a look into the most popular tourist attraction in the Caribbean then this would definitely include the Barbados; a small island also called as little England during the British era. It is called so, because it still contains a part of the thriving British legacy, cricket, Anglo Saxon activity and high tea.

We have Antigua & Barbuda that has more than 356 beaches (representing one for every year). This too is another popular tourist attraction. Then there is Guyana which is a one of the independent members in the Caribbean. It is also known for its beaches and countless rivers and lakes. The best side to it is that gold deposits and diamonds can be found at the river bottoms and hillsides. This place is popular for yachting and sailing.

Another beautiful island is ST Lucida. This island is known for its mountains that are covered with forests and the wildlife in it. Such other marvelous sites in the Caribbean’s are St Martin, Trinidad, Cuba, Jamaica, Cayman Islands and much more.

Situated in the Caribbean Sea is the Roatan Honduras Island that has brought the economy a constant dramatic increase due to the scuba diving fans. This place offers its visitors everything, ranging from marine wildlife to scuba lessons and even certification. It is know for its coral which is very diverse and can be seen easily. Here, tourism is well developed, hotels are well equipped and the resorts are numerous. This place is even called the “Caribbean’s best kept secret”. It is no doubt one of the most beautiful sites and experiences to have.

According to Gmelch, George (Behind the Smile: the Working Lives of Caribbean Tourism. Bloomington, IN: Indiana UP, 2003), the Caribbean governments welcome tourists with warm hearts because they realized that the Caribbean economy is completely dependant on tourism, also being referred to as “the engine of their growth”. Economic development in the Caribbean has benefited merchants, farmers, fishermen and many more. According to Pattullo, Polly. (Last Resorts: the Cost of Tourism in the Caribbean. London: Cassell, 1996), “Tourism is a huge contributor to the economies of all Caribbean countries and the biggest contributor to many of them such as Antigua and Barbuda, Bahamas and the Virgin Islands”

Yolande Wilson MBA ’08 In “the Caribbean Tourism Fueled by Hotel Development: The Good and the Bad”, explains that the success of Caribbean tourism is probably because people have the thoughts of aqua blue waters, warm sand beaches and luxury images on their minds. It is these precise thoughts that play a large role in the tourism business in the Caribbean. This puts all the focus on the tourism companies, services industries and real estate development. Tourism in the Caribbean is as early as 1862 where Jamaica had health spas and cruises that ran to the island but now, the tourism industries in the Caribbean estimates an anticipated contribution of over 18.7 billion dollars by 2011.

Another author named C. James Hospedales wrote about the importance of tourism to Caribbean development in (Healthy Tourism in the Caribbean) Saturday, 22nd September 2007. He explained that 25 billion dollars were the gross output in the Caribbean tourism with more than 12 million tourists arriving for stay in the Caribbean and more than 6 million cruise ships. Hotels were completely booked and tourism became very important to the Caribbean economy. Tourism in the Caribbean is even compared to oil in the Middle East. They have also made it a motto “Caribbean development through quality tourism” which made it clear that the economy will be completely dependant on tourism for the coming years.

With the arrival of the internet on 1995 which made it possible to spread the word of all the good and bad news. It was an effective tool in informing the world about this ravishing country. There was also the European tour operators whom made it easy for the tourists to get to the Caribbean from the European countries. However, with the success of increasing arrivals of tourists that helped boost the country’s economy, it also brought in the possibility of diseases being imported from different parts of the world. Yet this did not stop the Caribbean tourism organization from making sure that such issues along with injuries are minimized to its lowest. Their vision was that the Caribbean “to be the safest, happiest, and healthiest of comparable destinations in the world”

It’s obvious that tourism has affected the economy of the Caribbean region. These effects are mainly due to the travel and tourism industries. Through Paul McDaniel’s point of view, an eHow contributing writer in “The effects of Tourism in the Caribbean”, the economy was affected both positively and negatively. From these effects, we’d notice that it includes the Caribbean’s utmost and complete reliance on tourism and travel industries. But because, most of these tourism companies are never usually based in a particular Caribbean island, much of the money made does not stay on the Caribbean. This may also appear as a disadvantage for the Caribbean. However, without the competing companies, the economy could also be highly affected.

However, David Jessop wrote about “Grasping the full economic impact of Caribbean tourism” Sunday | September 23, 2007 and questioned if the governments truly understood the importance of tourism, which in his words is “the industry that now underwrites the regional economy”. He provided reports that were produced over the last 2 years that explained the positive impact tourism had on the economy. These reports were based on the studies produced, supported and encouraged by the Caribbean tourism organization and Caribbean hotel association. It was a clear demonstration to the government that tourism has become the dominant force in the Caribbean. In these reports, the Caribbean tourism is expected to get over 56.1 billion dollars economically with about 15% increase in tourism employment from 2007 to 2017. Basically these earnings are expected to grow over 3 percent per year. Therefore, from these readings it’s pretty clear that the Caribbean region is economically dependent on the tourism industry. However, if these industries do not remain competitive, then the economic boost could come to an end.

The problems that face the Caribbean tourism industry are those of globalization as well as interdependence. Therefore the beauty and nature of the country will not be enough to make the region’s case. It requires the government to play a role in supporting it to the fullest. Whether it’s decreasing the taxes, providing public health education or even changing the policies to fit the country’s increasing economy.

In a pacific islands report written by Sir Ronald Sanders in the “Benefits of Caribbean tourism must be shared”, he wrote about another problem that could affect the tourism industry in the Caribbean which is surprisingly the racial division notion in the island. This existing problem causes constant discomfort among many hotel owners that are expatriates, managers and the citizens yet they dare not deal with it. These problems are being left depressed like the racial division between the ownership on one side and the workers on the other. This problem is expected to worsen in the future if not dealt with now. Given the growing size of tourists coming into the country every year, it would keep requiring a large size of financial investments for the resorts and hotels in the Caribbean. These investments are primarily funded by the white expatriates that own tourism companies and can build or own resorts and any other tourism aspects in the business. This may seem as a problem because the profits in this case are sent abroad. The country does not benefit and the balance is disturbed.

In an abstract written by Harry G. Matthews, 6 May 2009 “Radicals and third world tourism: A Caribbean focus”, he talks about the metropolitan tourism in third world countries that have brought to question the tourist industries in a more political and social way. He talks about how it could affect the country and in this case, the Caribbean. He believes that tourism is an intrusion which is of metropolitan type, developed by the white people into the world of non-white. He also believes that these are merely fantasies sold to the tourists, causing the rise of cultures in countries like the Caribbean. Therefore the solution lies with the government of these countries where they are trying to bring forth an increase in sophistication. However, it is uncertain of how this action would actually take place.

A critique; Tom Womeldorff analyzes the Caribbean tourism in an interesting way in “Caribbean tourism: A Critical analysis” 10/14/2009. He writes about the western mentality of escaping to tropical islands with exotic animals, plants and warm sunsets. This fantasy is offered by the Caribbean tourism resorts and travel agencies that aim to fulfill the western dream. And recently, the market has included the catering of tourists whom want to experience the exotic island to the fullest. These tourism agencies are expanding to provide whatever desires that could have tourist dollars following it. Therefore these tourist industries carefully construct the hotels and resorts to meet the conceptions and needs of tourists. This perception to perfection however comes with a cost. Although it provides as a source of income to the Caribbean people, it has made them completely commoditized because it requires that they put all their focus in the tourism programme, to make every thing possible.

In “The state and tourism: a Caribbean perspective” by Hilton McDavid, Diaram Ramajeesingh, the abstract mentions an important something to think about and it’s how the tourism industries are now the center of attention. This is because the country is now tourism dependant. But does the government do what it takes to make sure that the social and environmental needs are taken care off? In this journal, the writers believe that the government have to work harder in order to shape the tourism industries in a way that every sector in the Caribbean benefits.

The Stabroek staff | February 5, 2010 in Business “the Caribbean tourism industry” raise an important question “Will the 2009 nightmare push regional tourist destinations towards diversification”. It is true that the Caribbean got caught up in the economic crisis that took away jobs, homes, savings and much more. The Caribbean people were beginning to wonder if they have to shift towards diversification for their economic incomes. The number of tourists drastically changed and Caribbean development bank activities showed a significant decline. “Sharply declining tourist arrivals” according to the CDB with other investments, “the main transmission channels of the crisis to regional economies.”

However it appears that the Caribbean has settled down from all the economic problems and found its comfort zone where it’s reassured that the tourists will keep coming in. the CDG even reports that the growth is expected to return and is likely to become the same by 2011.

Although the whole economy of the country, people’s jobs and welfare cannot wait till the crises associated with the whole world is recovered, diversification for a better economy should be considered.

In “Caribbean tourism looking toward an improvement in 2010” by Linda Hutchinson-Jafar, Jan 28, 2010, after the economic crises that effected the country’s economy due to the decline in tourists rate, the Caribbean tourism industry began improving despite criminal and tax problems in some of the islands.

And the earthquake that hit Haiti did not affect the island’s economy much. Chastanet said, during and annual event in the Caribbean “We will probably end the year 5.6 percent down but we’re looking for a strong rebound in 2010”

And a hotel owner Rene Seepersadsingh “The economic situation globally impacted negatively on Tobago. Hotels reported as much as a 40 percent decline in stayover, particularly from the British and the German markets”

As for Jamaica, it was seeing a 4% increase in arrivals while the other islands were reporting a decline in 2009. This is probably because it was running ads on television across North America, tempting them to join the warm summers. They were very successful with their ads as Barlett who works at the airlines said “For this winter season now beginning, we have a record 1 million (airline) seats which is the largest number we ever had”.

The unusual part is that Jamaica continues to attract tourists even though it is categorized as one of the most violent countries in the world. The murder and crimes rates were 1,680 last year alone. Barlett believes that “It’s a contradiction. The most iconic attraction in Jamaica is the people. It belies the crime statistics”

Finally the most spoke about topic in the Caribbean tourism is “HARPOONING CARIBBEAN TOURISM: SWALLOWING A DEAD RAT” by Sir Ronald Sanders

Sunday, March 14, 2010. The new attractions that require full support by the Caribbean governments are the whale watching activities. There was an international meeting held in Martinique from February 18 to 21 on what they call “Sustainable Blue tourism in the Caribbean”, specifically urging the Caribbean government to not only support this attraction but to protect the marine wildlife and mammal population by providing sustainable jobs to the fishermen. This new attraction is bound too boost the economy situation and the exotic fantasies keep getting better.

Thus the Caribbean keeps finding ways to attract tourists and its economy although highly dependant on tourism yet, very rich.

Tourism Analysis Of Disneyland Resort Paris

Disneyland Resort Paris (formerly known as Euro Disney) is the fourth of the Walt Disney theme parks, built to follow the success of Disneyland in California, Walt Disney World in Florida, and Tokyo Disneyland in Japan. It is located in central France, making it accessible by a two-hour plane flight to more than 300 million people. Disneyland Paris is a holiday and recreation resort in Marne-la-Vallee, a new town in the eastern suburbs of Paris, France. The complex is located 32 kilometers (20 mi) from the centre of Paris and lies for the most part on the territory of the commune of Chessy, Seine-et-Marne. After Tokyo Disneyland opened to great success in 1983, the executives of the Walt Disney Company began plans for a European extension. The company considered many possible locations, but soon chose Marne-la-Vallee, a French town, as the site. Disney CEO Michael Eisner signed the first contract with the French government in 1985, and construction on Euro Disney began in 1988. The information center Espace Euro Disney opened in 1990, keeping the public informed about the ongoing work. The park opened in April 1992, and although 500,000 visitors were expected, only 50,000 came. For the first three years, the park reported large financial losses. Attendance was poor, employees reported high dissatisfaction and the French press grew more appalled at the presence of an America-centric park in their country. In 1994, the park was renamed “Disneyland Resort Paris” in order to dissociate it from the negative press surrounding “Euro Disney.” In 1995, Space Mountain was added to the park’s attractions, and the park turned it’s first-ever profit. The park is still dubiously profitable. Even with much of its debt written off, the company reports billion-dollar deficits: specifically, $2 billion in 2007. However, in 2008, the park was the most-visited attraction in Europe and reports more than 15 million visitors every year receiving more visitors than the Louvre and the Eiffel Tower combined (Christian Sylt, The Independent, 2008).

Why was Euro Disney performing poorly during its first year of operation? Recommend and propose strategies and suggestions to improve the situation?

Michael Eisner, CEO of the Walt Disney World Company, once said, “Fantasy is very hard work.” Eisner was referring to the intensive labor that goes on behind-the-scenes within the Disney Company to create the magic and fantasy which have become synonymous with the Disney brand. From the founder’s humble beginnings (Walter Elias Disney) creating animated cartoons in the 1920’s, to the multi- facetted corporation Disney has developed into, hard work has always been the key ingredient to the success of this entertainment empire. However, hard work does not always lead to success, especially when international expansion occurs. On April 12, 1992, Disney officially opened Euro Disney, a $4 billion USD, and 4,400 acre resort located in Marne- la-Vallee, France. Despite over 7 years of planning and countless hours of research, Euro Disney quickly developed in one of the most costly mistakes in company history. In the first 2 years of operation, Euro Disney lost close to $1.03 billion USD and was forecasted to lose approximately $1 million USD a day for the foreseeable future (Lyn Burgoyne, Euro Disneyland Venture, 2001). The main reason why Euro Disney performed poorly during its first year of operation was due to several factors such as European recession, Cultural differences and Marketing.

Just as Euro Disney opened, Europe was in the middle of an economic slump. Disney felt that they could overcome this issue however; High interest rates and the devaluation of several currencies against the Franc caused Europeans to have little spending power at that time. That results in a reduction in disposable income among the French population. Many of the other countries in Europe were experiencing a similar downward slope during the period.

Disney did not anticipate the huge differences between themselves as consumers and the Europeans especially the French. The entire resort was designed along the same guidelines as the original Disneyland (Rohese Taylor, Disneyland Paris Case Study, 2000). Much of the reasoning behind this strategic approach can be attributed to the success Disney had with the opening of Tokyo Disneyland. According to (Marty Sklar, Vice Chairman and Principle Creative Executive of Walt Disney Imagineering), “The Japanese told us from the beginning, ‘Don’t Japanese us.’ What that meant was, ‘we came here for Disney. We came here for America. Don’t give us Japan, we know Japan.” Disney determined that the Europeans would want the same as the Japanese an Americanized Disneyland. However, the general sentiment among the French was one of indignation at what some called ‘cultural imperialism’. Therefore, Euro Disney was not accepted among the European culture.

Euro Disney was marketed incorrectly to both the consumers and the media. The views of the French were not considered when marketing strategies were created. The resort was marketed in the American-style of “aˆ¦bigness and extravagance”. Instead, Euro Disney should have concentrated on the emotional aspect, marketing that guest would have a unique, extraordinary experience they would not forget (Lyn Burgoyne, Walt Disney Company’s Euro Disneyland Venture, 2001).

To improve the situation, there is a need for Disney to take control of the management decisions and analyzing issues and problems based on their own practice and not to use some team to analyze the problem and have it presented that is way outside the management. Thus, there is also the imperative need to understand and execute appropriate plan of actions that will bridge the gap of culture difference such as knowing what are the characteristics and attitudes of the European people in terms of the nature of business considering what will work on both sides and achieve good marketing strategies that would have connection to promotion and advertising process.

The fact that marketing issues was present, it may be proper for Disney to consider strategies that will cater to resolving such issues and probably focus on useful market tactics. The Euro Disney should implement marketing mix strategies which are the price, product, place and promotion. Promotional discounts for families on weekends will fit in to the European culture and planning more ways on how to make business better despite of business conflicts will cater to resolving those issues. Furthermore regarding the environment and location factors, Disney can choose such locations that have strong sales magnet, something that sales and profits are manageable and that possibly, Disney can opt for transfer of Euro-Disney location considering that all aspects of costs and expenses have to be minimal and does not overspend the resources and the need for a justifiable budget is important as high risks within the management and its process may be evident any time. Moreover, Disney can implement and apply flexible labor systems that will be adaptable to the situation, and is accepted by the French laborers and thus, the need also to cut down costs and manage risks and small changes properly to have balance of business.

Question 2

To what degree do you consider that these factors were a) foreseeable and b) controllable by either Euro Disney or the parent company, Disney?

The factors that played into the unsuccessful first year for Euro Disney could easily be foreseen by either euro Disney or the parent company. The same goes to the factor that Euro Disney and its parent company is controllable. It is evident that French has develop a sense of hostility towards the plans as it was stated in the case study, that they did not want American imperialism invading their country and culture. The worse thing is that Euro Disney worked in the arrogant nature of the American thinking. In this I mean, they expected the Europeans to act as Americans and thrive over this newly designed theme park, thus making things a lot worse. (John Graham, International Marketing, 2002) stated that Paris theater director Arianne Mnouchkin became famous for her description of Euro Disney as a “Cultural Chernobyl.” In the case study, it was also stated that in the fall of 1989, during a visit to Paris, French columnist pelted Michael Eisner with eggs. The joke going around that time was, “For Euro Disney to adapt properly to France, all seven of Snow White’s dwarfs should be named Grumpy.”

The French was disappointed during the early advertising because the advertisements focus more on the size and glitz rather than the types of rides and attractions (Phillip Cateora, 2002). Everyone knows advertisements play a major part that influences the society today and affects our everyday life. Nowadays it seems that the only way to avoid any form of advertising is to isolate oneself and live in a cave but not all advertising is negative and bad. It is found almost everywhere such as just by walking on the street, driving a car or watching TV. (Ference, 2004) reports “Every surface that could possibly have an ad slapped on it such as clothing, buses, taxis, myriad walls and billboards, even the snow you ski on now hawks something.”

Every advertiser or company must do more than just make a product, give it an attractive price and offer it to the consumer, communicate and promote it to their current and future customers, they have to advertise it. Therefore, the ability to foresee that the advertising was getting a negative response was obvious and this could have been somewhat controlled by Euro Disney or the parent company. Advertising bombards us everywhere but it is not without control and regulation by the government, businesses and citizens. This opens one of the major issues in advertising, “the question of law and ethics”. Advertising should be carefully controlled. Society needs to make sure that people are not taken in by misleading advertisements in which Euro Disney make a huge mistake emphasizing the glitz and size instead of different rides and attractions. This can be controllable if Euro Disney followed principles such as telling the truth, showing the truth in which the product should look exactly the same way as the consumers will purchase it. The general impression should as well be truthful because “Advertising is judged not by what it says, but what the consumers thinks it says” (Roman & Mass, 2003, p. 200-202).

Other important factors that managers could have foreseen included the approaching European recession, the Gulf War in 1991 and increased interest rates. External factors that affected business also included the devaluation of other currencies against the franc and competitions that drew the attention of European tourists. These competitions were the world’s fair in Seville and the 1992 Olympics, which was held in Barcelona (Phillip Cateora and John Graham, p. 615). It was apparent that the managers of Euro Disney and Disney separated themselves from their counterparts with many levels and departments. These include the government, banks and other parties that were involved. Some of the Disney managers admitted that they were arrogant and that their attitudes were forceful and controlling. It was as if all would agree to do it the way they suggested, then everything would be just fine and everyone would be happy (Phillip Cateora and John Graham, p. 614).

Question 3

Evaluate the cross-cultural marketing skills of Disney.

The origins of cross-cultural analysis in the 19th century world of colonialism was strongly grounded in the concept of cultural revolution, which claimed that all societies progress through an identical series of distinct evolutionary stages. Culture consists of language, ideas, beliefs, customs, taboos, codes, institutions, tools, techniques, and works of art, rituals, ceremonies and symbols. It has played a crucial role in human evolution, allowing human beings to adapt the environment to their own purposes rather than depend solely on natural selection to achieve adaptive success. Every human society has its own particular culture, or socio cultural system (Encyclopedia Britannica). Cross-cultural marketing is international marketing on a personal level. It means considering cultural differences when planning marketing campaigns and media, realizing the need for a balance between localization and globalization and most importantly, implementing strategies that respect differences while seeking to unify brand messages.

The problem with Euro Disney was that they did not utilize the cross-cultural marketing skills. Based on the case study, Disney executives were told that the French did not eat breakfast so that the meal was downsized but surprisingly the French do eat breakfast. 2,500 breakfasts were served in a restaurant that only held 350 people. They also discovered that the French did not just want croissants and coffee, they wanted bacon and eggs (Phillip Cateora and John Graham, p. 615). This showed that the cross-cultural skills were not employed such as the misinterpreted of data and wrong information retrieved during the environmental scanning of the elements of the European culture. The managers should have known that Europeans were more energetic and will certainly covered more of the Euro Disney theme park and rides than those in the western hemisphere. In contrast to Disney’s American parks where visitors typically stay at least three days, Euro Disney is at most a two day visit. The European vacations were not examined so the theme park did not see the profits and success as hoped. Americans take short breaks but they take them more often. However, Europeans take one month holiday.

The American managers were naA?ve that they thought the Europeans would change their one month tradition and adopt the Americans shorter yet more frequent time off but that did not happen. The French schedule remained the same as they would close the office and factory during the entire month of August. These factors should have been considered. Cross-cultural marketing would have been extremely useful but the parent company’s executives were being quite ethnocentric and it cost a great price (Phillip Cateora and John Graham, p. 615). Needless to say, their cross-cultural skills were unsatisfactory; in fact nonexistent is more appropriate to say. Had they had any skills of this sort, the beginning would have been a success and not such a failed start.

As we now understand, the Europeans have to be “attuned to the nuances of culture so that a new culture can be viewed objectively, evaluated, and appreciated. Just because a culture is different does not make it wrong. Euro Disney marketers should understand how their own American-style cultures influence their assumptions of another culture (John L. Graham, The Global Environment of Global Markets).

Question 4

Do you think the new theme park would have encountered the same problems if a location in Spain had been selected? Discuss

Spain, a country located in south-western Europe, bordering the North Atlantic Ocean and the Mediterranean Sea, between Portugal and France covers a total area of 505,957 sq km. Spain has 4,964 km of coastline. Besides five other places of sovereignty on and off the coast of Morocco, Spain consists of 17 administrative regions, 15 of which are on mainland Spain. Spain occupies four-fifths of the Iberian Peninsula and is a land of immense geographical diversity. It offers the tourist a great deal. Spain’s coastline has long since been a magnet for visitors but in recent years more and more people are spending holiday time, exploring beautiful and cultural Spain, away from the sea and sand. Spain has everything from lush, green forests and mountain ranges, through to endless arid plains and long, sandy beaches (Idealspain, 2010).

Since the 1960’s and the invention of the package holiday, Spain has always been a top tourist destination. There are few areas of Spain that have not seen the effect of tourism. Spain has adapted to cater for tourists and every area offers something different. Northern Spain offers a different type of holiday with lush green forests, un-spoilt nature reserves and clean rivers. This part of Spain has adapted to offer nature holidays and activity holidays, based on the rivers or within the nature reserves. Hotels tend to be more individual and have rural locations. Beach holidays have always been popular in Spain with the attraction of the wonderful climate, clean beaches and ample hotel facilities (Idealspain, 2010).

If the location selected by Disney is in Spain, it would have been met with less criticism and is believed the cultural differences will play a huge role in its success. As I mentioned earlier, Spain is also one of the top tourist’s attraction countries in Europe. Disney would still have to learn the customs and the culture of Spain and incorporate them into the development, implementation and operation of a new theme park. The work habits of the Americans is totally different from Spain in which the Spain’s main concern is focus on life and family first whereas the Americans focus more on themselves and individuality, not the group. This suggests that if Disney theme park is in Spain at least the Spanish which gives top priorities to the families will often bring them to the theme park. (Tom Strong, Spanish Cultural Commentator) gives his view of the differences between Spain and the U.S.A. “In the U.S.A., a newborn baby gets a social security number. In Spain, the newborn gets added to the Libro de Familia. In Spain, it is not at all uncommon for children to stay at home until age 30 whereas in the U.S.A. they would be tagged with the word ‘loser’.

International marketing is all about culture and what we are able to do in marketing to a particular foreign product such as Disneyland to market its theme park is shaped by the cultural variables of the country as well as the great importance to understanding the Spanish culture. The geographical conditions of Spain provide sunshine all year round and milder winter temperatures. The advantages are that it may attract potential customers form the northern Africa and the Middle East because of its wonderful climate. In terms of its purchasing power, total population and it’s density it won’t lose to the French counterpart. The (Central Intelligence Agency World Factbook, 2010) stated that the Spain purchasing power for the year 2009 is $1.367 trillion and its French counterparts is $2.113 trillion and the GDP for Spain is $33,700 whereas the French is $32,800. As a member of the European Union, travel to the southern state already a tourist center in the Union, will yet provide more reason for the launch of Euro Disney. The entry ticket should cover the cost of the Spanish sunshine, sympathy and service, unlike the rest of Europe.

Question 5

If you were the business development manager, what would be the major consideration you would go through before selecting a location for the next Disneyworld? From your discussion select a location you think will be the next Disneyland site.

As a business development manager, I will have to take into consideration about some in depth knowledge and analysis about a country’s background before selecting the location for the next Disneyworld. There are many factors in the macro-environment that will affect the decisions of the managers of Disney. Tax changes, new laws, trade barriers, demographic change and government policy changes are all examples of macro change that will help Disneyworld to know more about the foreign market conditions and the external forces. To help analyze these factors I will categorize them using the PESTEL model.

Political factors may refer to the government policy such as the degree of intervention in the economy. What goods and services does a government want to provide? To what extent does it believe in subsidizing firms? What are its priorities in terms of business support? Political decisions can impact on many vital areas for business such as the education of the workforce, the health of the nation and the quality of the infrastructure of the economy such as the road and rail system (Aguilar, F.J., Scanning the business environment, 1967).

Economic factors include interest rates, taxation changes, economic growth, inflation and exchange rates. As we all know a shift in economic can have a major impact on a firm’s behavior. For instance higher interest rates may deter investment because it costs more to borrow a strong currency may make exporting more difficult because it may raise the price in terms of foreign currency inflation may provoke higher wage demands from employees (Aguilar, F.J., Scanning the business environment, 1967).

Social factors are changes in social trends which can impact on the demand for products and the availability and willingness of individuals to work. In the UK, for example, the population has been ageing. This has increased the costs for firms who are committed to pension payments for their employees because their staffs are living longer. The ageing population also has impact on demand for example; demand for sheltered accommodation and medicines have increased whereas demand for toys is falling (Aguilar, F.J., Scanning the business environment, 1967).

Environmental factors include the weather and climate change. Changes in temperature can impact on tourism industry such as Disneyland. With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant issue for firms to consider. The growing desire to protect the environment is having an impact on many industries such as the travel and transportation industries for example, more taxes being placed on air travel and the success of hybrid cars and the general move towards more environmentally friendly products and processes is affecting demand patterns and creating business opportunities (Aguilar, F.J., Scanning the business environment, 1967).

After the extensive analysis of these major external forces, I would think the next Disneyland site should be in Canada. I think it should be top in priority because Canada is rich in history, landscapes and its aboriginal cultures. Canada is a country with much diversity as it has mountains, national park and alpine forest. According to the Nation Brand Index (Anholt and GfK Roper research agencies, 2008) that measures the world’s perception of 50 nations by interviewing 20,000 adults from 20 countries, the friendliest nation in the world is Canada. Canada has hosted several high-profile international sporting events, including the 1976 Summer Olympics in Montreal, the 1988 Winter Olympics in Calgary, and the 2007 FIFA U-20 World Cup. Canada is the host nation for the 2010 Winter Olympics in Vancouver and Whistler, British Columbia (The Vancouver Organizing Committee for the 2010 Olympic and Paralympics Winter Games, 2009) which we can see is obvious that it is a place for major tourists attraction which can bring advantages for Disneyland.. This scientific approach to friendliness may seem a bit formal, but indeed, the Canadians are really quite hospitable, kind people and are truly worthy of honors. Many Europeans and Americans travel to this country as it is less expensive if compared to the rest of Europe. The Europeans are most likely to head there during august, the people from the United States usually head up during spring break, and many companies offer trips to Canada as incentives, bonuses and conferences. Visitors from central and South America also visited Canada.

There is an influx of expatriates moving to Canada as many want to go there to escape the Asian life and as well to pursue “The American Dream”. Having stated all of this, it is still very important to that the tunnel vision of ethnocentrism be avoided. Although there are advantages and reasons supporting why Disney can do well with its current operation style because they are neighboring countries, Canada’s culture, beliefs and morals still vary. Like other countries, Canada is not considered to be a country of “workaholics” as the United States is stereotyped to be. The family or group is still top priority versus the American’s view of individual accomplishment being the top goal. It is important to learn from the mistakes that were made when Euro Disney was started. Having offices and managers from the country will be detrimental. Incorporating Canada’s culture and examining the tourists’ activities, practices and trends will be crucial to the making or breaking of a Disney in Canada.

Conclusion

Euro Disney has greatly enhanced their product since the troubled beginnings in 1992. During this period, many key lessons were learned about the relationship between culture and product offering. These lessons learned became the basis for future development in the European market. Today, the Disneyland Paris Resort is marginally profitable and is experiencing high, yet stagnant, attendance rates. It would be presumptuous to label the resort a success, especially since its net total loss is still over $700 million. However, changes in the marketing and design of the resort have led to profitability and gradual acceptance among the European citizens. In order to increase profitability and attendance, three factors must be achieved: product marketing must be increased, the current marketing strategy must be enhanced and ethnocentric obstacles must be overcome. There exists long-term optimism for the future of Euro Disney due to the strong foundation it has developed over its 10 years of existence, the strong financial backing of the investors, and its plans for future development within the European culture. With proper strategic planning and a relentless pursuit to continue to learn and adapt to the European culture, Disneyland Paris will be a successful resort.

Bibliography

Aguilar, F.J. (1967), Scanning the business environment. New York: Macmillan.

Cateora, Phillip & Graham, John (2002), International Marketing: Eleventh Edition. New York: McGraw-Hill.

[Online] CIA – The World Fact book (2010). https://www.cia.gov/library/publications/the-world-factbook/geos/fr.html, Accessed on February 18, 2010.

[Online] CIA – The World Fact book (2010). https://www.cia.gov/library/publications/the-world-factbook/geos/sp.html, Accessed on February 19, 2010.

Della Cava, Marco (October 10, 1999), “Theme parks are staking bigger claims in Europe.”

Prada, Paulo & Orwall, Bruce (2002), “Mickey’s Bosses Learn From Past Mistakes in Opening

New Park in France.” Dow Jones Interactive Business.

Schneider, Mike (2001), “Theme Parks Adapt to Nations Cultures; Disney, Other Firms Look Outside North America for New Markets.” Dow Jones Interactive Business.

[Online] Idealguides Ltd Group of Companies (2010). http://www.idealspain.com/Pages/Information/GeographyHeading.htm, Accessed on February 20, 2010.

[Online] Sylt, Christian (2008), Magic results: Euro Disney plans new hotels. http://www.independent.co.uk/news/business/news/magic-results-euro-disney-plans-new-hotels-899529.html, Accessed on February 21, 2010.

[Online] La-Vallee, Marne and Chu, Jeff (2002), Happily Ever After? http://www.time.com/time/magazine/article/0,9171,901020325-218398,00.html, Accessed on February 21, 2010.

Tourism in the Algarve: History and Sustainable Development

Introduction

The Algarve is the southernmost province of Portugal and has gained a reputation in recent years as a popular tourist destination. Visitors now flock to the region each year in order to sample the agreeable climate, landscape and culture. A plethora of modern amusement parks, leisure facilities and golf courses await the prospective tourist and offer an impressive array of activities to chose from.

The tourist industry has been growing steadily in the Algarve since the 1960s, and over 4,5 million arrivals were recorded at Faro international airport in 2003. Indeed, when one considers that in 1960 only 353,000 foreign tourists visited the province, one could easily refer to the recent developments as a veritable ‘tourist boom.’[1] Such a surge in activity has naturally provided a great deal of economic benefit at a local and national level. As Boniface and Cooper have noted, tourism is now a fundamental component of the Portuguese economy and accounts for 8 per cent of GDP.[2] However, the rapid expansion of tourist development on the coastal areas of the Algarve has raised serious concerns regarding the environmental impact of the industry. Many commentators are now questioning the sustainability of tourism and other commercial projects throughout the province. Indeed, as well as environmental considerations, the prospect of an increasingly competitive international tourist market also exacerbates anxiety. Thus, will it be possible to maintain the thriving tourist sector and sustain commercial development in the Algarve?

The Geography of the Algarve

The climate of the Algarve is highly conducive to the tourist and leisure industries. Temperatures range from a comfortable 15°C in January to a peak of 28°C in July. Average rainfall is only 1mm in July, whilst during the winter period it rises to 70mm.[3] Tourist numbers peak during the summer months of June to August but the mildness of the winter months has permitted entrepreneurs with the opportunity to promote all year round tourism.

The province spans 160 km from the Atlantic Ocean in the west to the Spanish border in the east, and extends for 30 to 40 km inland from the southern coast.[4] Over 300 km of coastline boasts some of the finest beaches in Europe. Wuerpel has divided the province into three distinct areas, these are the mountainous, hilly and lower heterogeneous zones.[5] The mountainous region is sparsely populated and the stony soils in many areas are restrictive to agricultural practices. However, the higher rainfall and more agreeable bed rock of Serra de Monchique in the west provide excellent mountain pastures. The highest peak in the Algarve (Foia) is located in this range and at 902 metres has become something of a tourist attraction.

The hilly central region which forms a ‘crescent’ shape between the mountains and the coastline is named the ‘Barrocal’ by the local peoples. The fine terra-rosa soils of this zone support the orange, almond and fig orchards of the province, as well as the vineyards and olive crops. This area represents the true ‘garden of the Algarve’ and the small villages, which have maintained much of their traditional character, are to be found here.[6] Tourist operators have begun to promote the cultural heritage of these settlements and encourage visits further inland.

The coastal vicinity forms Weurpel’s lower Heterogeneous zone, and it is this area which has experienced the most pressure from recent developments in the tourist and leisure industries. The geography of the coastline can be readily divided into two separate sections east and west of the town of Faro, which is the largest settlement in the province and serves as the administrative centre. Picturesque bays, grottoes, coves and outcrops are evident to the west, whilst to the east the coast is flatter with sandy offshore islets (ilhas) and mud flats. Ellingham, Fisher and Kenyon have highlighted that most tourist development seems to have taken place between Faro and the town of Albufeira. They speak of the ‘Mediterranean style suburbia’ and ‘endless villa complexes’ which now dominate this stretch of coastline.[7]

The resident population of the Algarve is approximately 350,000. However, the influx of tourists, time-share owners, second home residents and seasonal workers, during the months of June to September, ensures a considerably larger summer population. Tourism is the major industry of the province and represents almost 70% of economic activity. The agricultural and fishing industries continue to play their role despite the recent tourist boom. Portugal is also one of the world’s leading exporters of cork and the cork oak trees of the Algarve are a lucrative source of this product.

The History of Tourism in the Algarve

The Algarve’s rise to become the ‘tourist Mecca of Portugal’[8] has been relatively recent. Wuerpel has noted that the province was always a ‘fundamentally quiet and remote region’[9] situated on the periphery of continental Europe. Ancient Roman ruins may be observed throughout the region, and the ancient fortified city of Silves is testimony to the influence of Moorish civilisation. The restoration of the town of Sagres, which was developed by Henry the Navigator in the 15th century as an important naval centre, now serves as a tourist attraction. However, as Kaplan has highlighted ‘the Algarve is not rich in historical monuments.’[10] This is partly due to the deleterious earthquake of 1755 which destroyed many of the ancient sites of antiquity. Wuerpel has commended the province for its unique character by noting that ‘the region has remained singularly distinctive, more Mediterranean than Atlantic, more African than European.’[11]

Visits to the Algarve, before the coming of the railway in the late 19th century, were mainly restricted to the health spas of the upland region, such as Caldas de Monchique which dates from the 17th century. Communications between Lisbon and the Algarve were poor and consisted of crude mule trails. In 1889 a railroad arrived in Faro and a gradual east/west expansion of the line continued into the 20th century.

The 1898 edition of Baedeker’s guide book of Spain and Portugal only speaks of the small towns of Faro and Loue, which were by then accessible by train. However, by the 1908 edition the author is more revealing when he states that ‘most travellers will scarcely find it worthwhile to visit South Portugal’ and adds, ‘the towns contain nothing of much interest while the places on the coast resemble large fishing villages.’[12] Indeed, prior to the second world war Portugal was an unfashionable resort and tourism remained a peripheral industry. In the 1930s only 36,000 tourists were visiting the country on an annual basis compared to over 5 million who visited the more well-known resorts of Italy.[13]

As Andrew Holden has explained, ‘since the 1950s there has been a rapid increase in the demand in western societies for people to travel internationally and visit a variety of different destinations.’[14] The post-war economic boom and subsequent rise in disposable income levels now permits more and more people with the opportunity to travel. Since the 1960s Portugal has benefited economically from the influx of tourists and the coming of mass tourism. Improved communication links, such as the international airport near Faro which was opened in 1965, have boosted the performance of the tourist and leisure sectors considerably. Tourist numbers have exhibited an almost continuous upward trend since the 1950s, save for a slight downturn in the 1970s after the April Revolution.

Sustainable Development

The notion of ‘sustainable development’ has been promoted by agencies at a local, national and international level since the 1980s. An increased awareness of the finite nature of natural resources within the modern global economy has dramatically altered the decision making process. Holden has noted that the concept of conservation can be traced back to the mid-nineteenth century but that the principles of ‘sustainable development’ have evolved rapidly in recent years. The publication of the Brundtland Report in 1987 and the promotion of the United Nation’s Agenda 21 programme by governments throughout the world have assisted in the solidification of the concept. However, Holden is quick to emphasise that ‘sustainable development is not concerned with the preservation of the physical environment but with its development on sustainable principles.’[15] In essence, sustainable development seeks to obtain a state of equilibrium between economical, political, cultural, social and environmental interests within a particular area. Developers should be allowed to promote new projects provided the local population benefits and environmental regulations are observed. The Brundtland report acknowledged that such development is necessary in order to alleviate poverty and reduce migration from disadvantaged regions. However, many commentators have criticised the concept of sustainability due to its ambiguity. Some feel that the principle of agencies, who often hold opposing interests, functioning in a state of equilibrium is idealistic and not practical.

Sustainable Development in the Algarve

The Portuguese have been determined not to overdevelop their tourist regions and emulate mistakes made by their Spanish neighbours in regions such as the Costa del Sol. Traditionally the industry has attempted to orientate itself towards the upper end of the market and avoid the deleterious effects of mass tourism.

Prior to the April Revolution the government promoted tourist development in the Algarve and generous state subsidies were provided for the province. Strict design restrictions were placed on building projects as the authorities attempted to maintain the distinctive Moorish characteristics of the region. However, since the 1970s commentators such as Kaplan have been critical of ‘uncontrolled development’ and how too many developments ‘bear the marks of speculation and indifference to the shape, the feel, the colour of the land.’[16] De La Cal has also drawn attention to the ‘resulting hodge-podge of uncontrolled building’ which exists on the coastline west of Faro and may threaten to scare off many potential visitors who dislike crowded beaches and urban environments.[17] Indeed, by the 1980s many felt that the Algarve was in danger of becoming a victim of its own success and that the environmental impact of the new industry would have to be controlled.

The Portuguese government had identified 75 sites which were to be designated as protected areas as early as 1973. The Algarve hosted 8 of these sites and a culture of conservation has since been cultivated in the province. Nature reserves such as the Parque Natural do Sudouste and zones of restricted development have now been established in order to maintain the unique environment. The Plano Nacional de Turismo (1986-89) sought to develop the tourist industry in the Algarve but identified that the natural environment and traditions of the province should be maintained. The government has attempted to realise these objectives through rural tourist programmes, like in north-eastern Algarve, which has suffered from severe depopulation since the 1950s. Tourists are now encouraged to visit the villages of the interior and sample the unique culture. Controlled eco-tourism to the east of Faro and on the western Atlantic coast is intended to generate new sources of income whilst protecting wildlife and fauna. Critics of the National Plan include Lewis and Williams, who believe that economic considerations shall always take precedence in a disadvantaged region such as the Algarve, and that increased environmental and cultural degradation is inevitable.[18] Kaplan insists that the environment is merely a secondary consideration and that ‘money is arbiter’ but concedes that the beaches of the Algarve are extremely clean.[19]

The World Travel and Tourism Council (WTTC) have recently assessed the impact of tourism on the economy in the Algarve. They have concluded that the Algarve has the potential to be ‘one of Europe’s most sought after tourism destinations’ and that the province’s unique environment, heritage and culture remain largely ‘untapped.’[21] The organisation has provided a range of recommendations in order to ensure sustainable development in the region.

The council suggest that leisure park facilities, such as the Aqualine theme park near Altura, should be encouraged and promoted in order to attract clientele on a year round basis. They have discovered that such facilities are popular with visitors from Portugal and neighbouring Spain. Such a localised customer base would naturally contribute greatly to the sustainability of the Algarve’s economy. However, the council concedes that Spanish tourists tend to stay for a short period and thus, spend less than northern European and American visitors.

The development of ‘golf tourism’ in the region also provides the possibility of employment out with the summer peak. The agreeable climate and excellent golfing facilities of the Algarve have the potential to attract visitors during autumn and winter. The organisation has also identified the threat posed by new low-budget resorts in eastern Europe. They insist that market and product diversification is now imperative in order to maintain a thriving economy. By targeting senior travellers in northern Europe and by promoting top quality retirement accommodation in the province, the council believes that the Algarve can reduce its dependency on large scale tourist operators. This is also consistent with the Portuguese orientation towards the more exclusive end of the market. However, the council are concerned that building restrictions on the coast may be hindering development in the region and the sustainability of the tourist industry. They highlight that there is a shortage of high quality accommodation and that it is now over 7 years since the last five star hotel development.[21]

Lewis and Williams have noted the over dependency of the Algarve on visitors from the United Kingdom and how they accounted for 35% of tourists by the late 1980s.[22]

The WTTC have also warned against this trend towards a dependency on the British, Dutch and German markets and recommends promotion in other potential markets. Williams and Shaw have identified that North American tourists tend to spend more during visits and it is hoped that many will be attracted to the new golfing facilities.

Studies of Alpine ski resorts in France have shown that the tourist industry is more sustainable within a region if local investment and participation in the industry is permitted and encouraged. Local people tend to be more respective of the environment and conduct business in a sustainable fashion. The recent international investment in the Algarve may have been beneficial in the short term but an over dependency on foreign investment may have negative consequences. Multi-national corporations may relocate as hastily as they locate in a locality due to international market fluctuations and erratic trends in the tourist industry. Kaplan noted that ‘foreigners are investing in the land, in commerce, in tourism, in the future of Portugal at record breaking levels.’[23] However, the recent promotion of more inland cultural tourist pursuits such as wine tasting and craft fairs is encouraging.

Conclusion

The Algarve represents a typical tourist resort experiencing a range of conflicting interests.

There are those who value the aesthetic elements of the province, such as Ellingham, Fisher and Kenyon, who complain that the ‘development and crowds overwhelm the charms that made the Algarve popular in the first place.’[24] There are also conservationists like Gordon Sillence, of the European Network for Sustainable Tourism Development, who warns of the depletion of the local ecosystem, forest and habitat of the Iberian lynx. Through impact assessment Sillence and many others are anxious about the continued level of development in the province and believe that the public authorities should do more to protect the environment.

Local people and the many Portuguese who arrive in the Algarve during the summer months to work in the service sector may feel that tourism is an essential and positive factor. The WTTC also espouse this view and feel that more should be done to encourage sustainable economic development in the region. They believe that environmental protection may in fact be hindering economic sustainability. The European Union has looked favourably upon the expansion of the Portuguese tourist industry since the nation’s ascension to the Union in 1985. EU funds greatly assisted the development of infrastructure throughout the south of Portugal and galvanised the tourist sector. However, commentators have warned that since the ascension of the new eastern member states, EU funding for the Algarve will decline considerably.

Clearly the Algarve is now at a crossroads in its quest for sustainable development. The WTTC have recommended that the government prepare a comprehensive plan in order to further develop the economy of the region. The organisation has also noted that the Algarve boasts some of the most beautiful and undamaged coastline in all of Europe, unlike its Spanish neighbours. Such a positive environmental factor, as well as the agreeable climate, will surely be of paramount importance as the Algarve attempts to target new tourist markets and diversify its economy in the years to come.

Bibliography

ANDERSON, B. ANDERSON, E. Algarve – Landmark Visitor’s Guide, Landmark, 2001, Pages: 9-10, 103

BONIFACE, B. COOPER, C. Worldwide Destinations: The Geography of Travel and Tourism, Elsevier Butterworth, Heinemann, 2005, Pages: 228-230

DE LA CUL, M. Portugal, Collins, 1988, Pages: 327-340

ELLINGHAM, M. FISHER, J, KENYON, G The Rough Guide to Portugal, Penguin, 2002, Pages: iv-x, 509-572

HOLDEN, A. Environment and Tourism, Routledge, 2000, Pages: 161-182

KAPLAN, M. The Portuguese: Land and Its People, Penguin, 1988, Pages: 23-24, 178-179

MABBERLEY, D J. PLACITO, P J. Algarve Plants and Landscape: Passing Tradition and Ecological Change, Oxford University Press, 1993, Pages: 219-243

MAGONE, J M. The Developing Place of Portugal in the European Union, Transaction Publishers, 2004, Pages: 85-100

WILLIAMS, A M. SHAW, G. Tourism and Economic Development: Western European Experiences, John Wiley and Sons Ltd, 1991, Pages: 107-129

WORLD TRAVEL AND TOURISM COUNCIL. The Algarve: The Impact of Travel and Tourism on Jobs and the Economy, World Travel and Tourism Council, 2003, Pages: 1-31

WUERPEL, C. The Algarve: Province of Portugal, David and Charles Inc, 1974, Pages: 15-43, 162-169

Socio-Cultural Impact of Tourism

Chapter 2Literature Review

There are many researchers who have examined on how tourism affects the local people in a destination. They have worked on how to assess the negative and positive impacts of tourism on society. This literature review will be based on the research of the socio-cultural impact of tourism on the local people in Mauritius. The impacts that tourism brings to the local people will be assessed by the use of a questionnaire. This literature review will be completed by searching for journal articles, relevant studies which have been previously done on the topic.

Overview of Tourism

Tourism is an active and deal process which include direct and alternative relationship between people and originator of tourism products. The interaction between people is the is often the necessary feature which characterizes a tourism experience. These experiences can lead to both positive and negative impacts and this should be controlled in order to maximize the positive impacts and minimize and negative impacts (Sheldon & Abenoja). Positive and negative feature of tourism can be moved to the tourists and the hosts population as a tourism product can only be consumed in a destination.

One of the most influential socially based plan refined to examine the impact of tourism has on local people and the environment in which the local people live is dependent on the work of Doxey (1975), who was able to demonstrate the feeling that local people show as tourism extend and start to use greater area of a local economy over time. (Doxey) also argued that there are basically four levels to be considered when assessing local feelings towards the tourism industry. These are as follows:

Euphoria: This is where tourist come to a destination where they are received with little control and planning in a destination

Apathy: Tourists are accepted by the local people in a destination, commercialization takes place and there is a relationship between groups.

Annoyance: As the tourism industry is being saturated, local people tend to have uncertainty about a location of tourism. Tourism planners increase infrastructure instead of controlling the growth of tourism.

Antagonism: Local people start to become irritated and this is presented to tourists and tourism and planning is restorative.

The number of impacts from tourism is physically wide and it often has the authority on areas beyond those usually linked with tourism (Kreag 2001). It is difficult to measure the exact type and magnitudes of impacts of tourism as they cannot be viewed in a separate way because the effect brought by tourism alone and the effect which has been accomplished by other agents of change such as modernization, development, and the influence of media (Archer & Cooper, 1994; Lickorish & Jenkin, 1997; Mathieson & Wall, 1982).

Socio-Cultural Impacts of Tourism

According to (Oppermann & Chon, 1997), they argued that the socio cultural impacts should be available in towns and it should be designed in such a way in order to achieve the ideals of sustainable development. The socio-cultural impacts of tourism occur when there is the interaction between the “host”, or local people, and “guests”, or tourists (Smith 1995). However, Glasson, Gofrey and Goodey (1995) argued that the socio-cultural impacts are the “people impacts” of tourism and it concentrates on the day to day changes and quality of life of residents in a destination. It has been stated by (Opperman and Chon 1997) that tourist and the host interactions does not have effect on the hosts and the society of the host, but also it has an effect on the tourists and the tourists’ societies.

Socio-cultural impacts have both positive and negative forms and it is the hosts and the guests who are affected (Cooper et al., 1998; Oppermann & Chon, 1997). Moreover, (Pi-Sunyer, 1973), stated that socially and culturally, tourism has often been victim of social tensions. It can be noted that the principal impacts affected by the tourists and host relationship are the demonstration effect, that is when the behaviour of the hosts community is developed in such a way to imitate the tourists (Boissevain, 1979; Tsartas, 1992). During their stay in a destination tourists interact with the local residents and this interation brings an outcome such as modifications in the quality of life of the host’s community, value system, labour division, family relationships, attitudes, behavioural patterns, ceremonies and creative expressions (Fox 1977; Cohen 1984; Pizam and Milman 1984).

The encounters of tourists and the hosts occur when tourists are buying goods and services from any host individual where there are at the same place and at the same time and where they can exchange ideas and information (de Kadt 1979). Another type of encounter which occur in tourism is where there is a failure in promoting mutual understanding among different nations and stereotypes prevail (Nettekoven 1979; Krippendorf 1987; O’Grady 1990). In addition, socio-cultural impacts of tourism also include change in the language that is used in a destination (White 1974; Brougham and Butler 1977; Jeffs and Tavis 1989; Wallace 1997); growth in the consumption of alcoholics, crime, prostitution and gambling (Young 1973; Graburn 1983; O’Grady 1990). According to Brunt and Courtney (1999) argued that socio cultural impacts of when there is the interaction of tourists-host could be utilized to host residents and was affected by their role and their relationship within the tourism industry.

Communities Perspective of Tourism

Considering the attitude of local people the large range of the positive and negative impacts of tourism on the community at large and individual can be analysed (Fredline, 2004). (Ratz 2002), said that the lives of the host’s community are changed by two major factors which are namely the tourists-host relationship and the development of the tourism industry itself. Local people and foreign companies are encouraged to invest in different types of tourist enterprises (Larsen 1998) and this is looked in such a strategy to motivate economic activities to take place which will make the state become richer. In a host community, not every people perceive the impacts of tourism in the same manner. Researches says that the level of satisfaction of residents in a destination and their attitudes in relation to tourism are conditional on their perception of the impact of tourism.

Socio-Cultural sustainability

Cultural sustainability is the maintenance of local values, the way that people live in their environment and identity (Heikkinen et al. 2007). According to (Besculides, Lee, & McCornick, 2002; Simpson, 2008) the cultural and social as aspect of sustainability may be supported by tourism development by granting a change of declining traditional industries appealing infrastructure development promoting pride referring to culture and community, fostering cultural acceptance amongst visitors, keeping cultural heritage, fostering cross institutional acceptance and bring into existence educational favorable circumstances. However, (Liu 2003; Stronza, 2007), argued that tourism can bring up new lifestyles, belief, and values to hosts, and come through changes in the living form of the communities.

Positive socio-cultural impact of tourism

Tourism brings into contribution of an improvement of the social infrastructure in a destination. Cultural development can be considered as a positive impact of tourism. Various situations exist where tourism is the active force behind the preservation and awareness of local culture and traditions. (United Nations, 1996; Jamaica Sustainable Development Network, 2001; Tourism Product Development Company 2005; du Cros; 2001)

Negative socio-cultural impacts of tourism

For some islands, there are negative social impact that are created due to tourism. An increase in the price leads to a fall in the standard of living of the local community. Fishermen are deprived from their occupation. Sometimes locals are prevented to get access to public beaches as most hotels give priority to tourists to enjoy the beaches and therefore locals are left with only part of the beaches. Moreover, there are capacity issues where the beaches are overcrowded which leads to traffic congestion and noise pollution, reverse acculturation and high crime rates also occur (United Nations, 1996; PA Consulting Group, 2007).

Physical influences causing social stress

The physical power that increasing tourism has on a destination can cause social stress because this encounter the local community. Cultural degeneration such as damage to cultural heritage may take place from vandalism, littering, pilferage and illegal removal of cultural heritage items or by changing the historical landscape that surrounds it. Resource use conflicts will arise because there is a competition between the host community and the tourists for making use of prime resources such as water and energy which are limited in supply. Conflicts will arise when there will be the construction of hotels in coastal areas.

Culture Clashes

As tourism is the movement of people to different places geographically and places of social relation between tourists and the hosts, culture clashes may come forward because of differences in their cultures, ethnic and religious groups, values, lifestyles, languages and levels of prosperity. There will be economic inequality between local people and the tourists as they spend more than they often spend in an economy.

Behaviour of tourists causing irritation

Tourists usually fail to respect local people and their moral values due to carelessness in a destination. They may not respect the locals traditions by taking pictures where they are not allowed to do so and they may also be not well dressed in religious places like temples, mosques, and church.

Crime

Jud (1975) stated that amount of criminal movement facing foreign tourists grows as the number of illegal chances increase. He also said that the more tourists arrival in a destination will result in more chances for crime to take place. However, Lin and Loeb (1977) argued that there might not be a certain connection between tourists and criminal activities. Moreover, Bernasco and Luykx (2003) stated that there are three factors which pull crimes against property and these are attractiveness, opportunity and accessibility. As a result if communities do not protect themselves and imperfectly put in order by external agencies, some individuals will precise their personal temperament and devotion towards criminal behaviour. Moreover, Shaw and Mc Kay (1992) stated that a weak organizational form within a community may produce an environment more favorable for criminals against people and vice versa.

Job level friction

There has been a lack of professional training and low-paid tourism jobs such as waiter, cleaner gardening are offered to local people whereas the higher-paying jobs are like managerial jobs are offered to foreigners.

Change of local identity and values

Conventional tourism can bring impact change or loss of recognition and values and leads to influences as stated below:

Commercialization of local culture

Tourism can turn local culture into product and this is when religious traditions, local customs and festivals are diminished to adjust to tourist expectations and this has been called as reconstructed ethnicity.

Standardisation

A destination aim is to satisfy and it risk standardization, accommodation, food and drinks, etc must meet the want of the tourists in a destination

Adaptation to tourist demands

In destination tourists have the desire to buy souvenirs, arts, crafts, cultural manifestations. Craftsmen in many tourists’ destinations have changed their products by designing new types to make them match the new customer’s tastes.

Increase of Prostitution and sex tourism

According to the WTO (World Tourism Organisation) experts (1994) sex tourism has its principal intention that effect of a commercial sexual relationship. Sex tourism is absolutely tangible encounter in which the partner is not anymore an animated object. Many men go to Asia to choose Asian girls because no communication is possible. Sex workers can be migrant women in a destination from neighbouring countries. Moreover, sex tourism has impacted to an increase in AIDS in India. It has been discovered that upper grade hotels have their supply for sex tourism to take place. Sex tourism is also linked to drug peddlers who search for long vacation tourists at cheap destinations.

The economic impacts of tourism

According to (Loomis and Walsh 1997) businesses and public organizations are progressively showing interest in the economic impacts of tourism at national, state and local levels as the tourism industry contributes to the nation’s balance of payment (BOP) and this provide a great supply of income (Tatoglu, Erdal, Ozgur, & Azakli, 2000). The World Traven and Tourism Council (2012) reported that tourism can be beneficial to an economy in terms of increasing the Gross Domestic Product (GDP). Moreover, (Andereck Valentine, Knopf and Vogt 2005) reported that tourism industries can have a positive effect on the economy of a community by effecting diversity, and tax revenue. Furthermore tourism is taken into consideration as a determinant that provides a higher living standard and which effect to attract investors to do investments and tourists to spend which as a result creates greater benefits than costs (Brida, Osti & Faccioli, 2011).

The benefits that tourism bring in an economy

According to (Rithie, 2000; Carolson & Millan, 2002; Getz, 2005) said that the events in a destination tend to improve the infrastructure and development capacity. (Westerbeek et al. 2005, p. 133) reported that when infrastructure is well articulated consisting of physical venues, accommodation and facilities such as transport can lead a an even to success and reducing costs, ameliorating the convenience of spectator, as well as the athlete and long term benefits for the local community when the event ends.

Multiplier effect

Tourism as a supply of income is difficult to measure, this is because it creates multiplier effect (Clarke et al, 2009; Brida et al, 2010; Rastegar, 2010). Multiplier effect is the abundance of money which is generated due to tourist spending in an economy it increases as it passes through different areas of the economy (Dritsakis, 2008; Boopen, 2006. Tourism does not only leads to employment opportunities but also motivates growth in the primary and secondary sectors of the industry.

Primary tourism sectors namely, lodging, dining, transportation, amusements and retail trade are influenced directly and most of the other sectors are have impacts of the secondary effects.

Direct effect in the economy

These are production changes which are linked with the actual effects of changes in tourism expenditures. An increase in the number of tourists staying in a hotel would lead to an increase in profits due to sales in the hotel sector. Direct effects of tourists spending also include hotel payments for wages and salaries, taxes, and supplies and services.

Indirect effect in the economy

This is the re spending of the hotel industry’s revenues in other behind industries. For example industries which supplies products and services to hotels. Modification in sales, jobs, and income in the linen supply industry shows another area of indirect effects after all connecting hotels to various degrees to multiple other economic sectors in the region.

Induced effect in the economy

Induced effect is the household income earned directly or indirectly by tourism spending. For example employees from the hotel and employees from the linen supply are supported directly and indirectly by tourism, they spend their money in the local region expenses of housing, food, transportation and spending of added wage, salary, or owners income are considered as induced effect.

Indirect effects of tourism on GDP (Gross Domestic Product)

Tourism is a big constituent of the services economy, representing 30% of international trade in services. Taking into account of the revenue, the T20 countries generate nearly 70% of global tourist activity. In addition, the contribution that tourism can make to the growth of the economy is found in its indirect impacts, which in the T20 countries showing over 45% of tourism’s total contributions to the GDP. These indirect impact which are linked both to goods and services bought by the tourism sector and to investment and public spending multiplied by tourism are an important factor of economic growth.

The exchange rate effect of tourism

Tourism is a major foreign currency earner as it supplies the market with foreign currency and this market would not exist if tourism would not be so large. This diminishes the cost of foreign currency below what it would otherwise be.

Creation of employment

According to (Bridenhann and Wickens, 2004), tourism is an industries among many other industries which has the highest power to contribute towards job creation and economic development, especially in rural areas.

Environmental impact of tourism

Negative environmental impacts takes place when the level of visitors in a country exceeds the carrying capacity of an environment or use greater space that is required for an environment. When it is uncontrolled, it brings threats to many natural areas around the world.

The environment quality, natural and man-made is of great importance to tourism. However, the relationship with the environment is intricate. The environmental impact is related with the construction of the general infrastructure in a destination such as roads and airports, and of the facilities of tourism, such as resorts, hotels, restaurants, shops, golf courses. As the negative impacts of tourism can destroy the environment in the long-term, and these impacts should be minimized. Further literature of the negative environmental impact of tourism is as follows:

Land Degradation

The important resources of land are fertile soil, forests, wetlands and wildlife. Due to an increase in the construction of tourism facilities there has been pressure on these resources. Direct impact can be caused by providing tourists with the facilities needed such as accommodation and other infrastructure needed on the environment. Moreover, when there is deforestation, forest often suffers from this disaster.

Air and noise pollution

Pollution is something harmful that begins into the environment and these harmful materials are called pollutants. It can be natural such as volcanic ash. Pollution can be also produced by human activity for example trash or runoff produced by factories. Pollutants damage the quality of air, water and land.

There are various things that are useful to people create pollution. Cars eject pollutants from their exhaust pipes. Burning coal to produce electricity pollutes the air. Industries and homes spread garbage and sewage that can pollute the land and water.

Impacts on Biodiversity

Tourism can cause loss of biodiversity in various ways for example by competing the wildlife for habitat and natural resources. Negative impact on biodiversity can be caused by trampling, stress in animals, import of invading species, destruction of habitats, marine habitat deterioration.

Strain on water resources

Water is one of the important resource that is needed to survive and for a business to continue to operate water is need in the everyday operation of the business. Hotels use water in swimming pools, golf courses and also water is used by the tourists for personal use. Therefore there is a tendency for shortage of water and generating a greater volume of wastewater.

Energy Utilisation

Hotels use huge volume of water. Tourists staying in a hotel use on average 1/3 more water per day than a local inhabitant. The consumption of energy per m2 per year by one star hotel is 157kwh (380 KWh in a four star hotel) (EEA, 2003). However, the infrastructure is not suitable as it has been designed to cope with peak periods.

The role of the UNWTO, (United Nations World Tourism Organisation) towards the environment

In order to prevent the unfavorable impacts of climate change, the IPCC reports 2007 need 25-40% emission reduction sphere for the Annex 1 Parties (industrialized countries) by 2020, compared to the basis year 1995.

Tourism – A complex industry made up of number of different businesses

Defining tourism industry is not a sample matter, it is very complex industry made up of number of different businesses. The common thing these businesses share that they provide products and services to tourists. The most accepted definition is provided by the World Tourism Organisation. According to WTO, “tourism comprises the activities of persons travelling to end staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes”.

Tourism has become one of the major economic activities in the 21st century. The development in aviation industry has made tourism industry very competitive. As airlines industry expands and the world economy experienced substantial growth in tourism industry. After World War II only wealthy people were able to enjoy travelling and tourism but late 20th century and early 21st century it became affordable to masses. The economic significance of tourism industry is quite evident in 21st century. According to WTTC Press Releases (2010) “World Tourism Industry contributes over 10% of the world GDP and growing every year. This industry can benefit an economy in number of ways e.g. by providing employment, increase in government taxes and creates more diversified economy.

Four industries are dominated in 21st century, financial, telecommunications, Information technology and tourism. The desire of travel is a human need and people keep travelling for number of reasons. The travelling activities will never stop therefore tourism activities will increase in the future more and more, especially with the development of transportations system and modern technology. In past few decades tourism industry growth was tremendous and numbers of tourists in the UK have risen every year since World War II, apart from 1992 gulf war, September 11 2001 terrorist attacks on New York and July 7, 2005 London bombing. The growth in tourism industry has been the result of number of factors, e.g. Economic factor (longer paid holiday, affluence), Social factors (education and advertisement create desire to travel) and finally Development in tourism industry have made easy for tourist to travel new holiday destinations and attractions, cheaper holiday packages, faster and reliable transport.

What is Terrorism?

Terrorism has been defined as the intentional use of force or threat to use violence against civilian, business and government, in order to achieve their aims. During past three decades over 25000 terrorists’ incidents has happened around the world, which have resulted over 100000 causalities or injuries. The basic objectives of terrorists have remained unchanged over the years but development in technology has allowed terrorists to use more sophisticated and devastating tactics to create fear in people’s mind. The biggest increase in terrorism activities in past decade has raised many questions about the economic impacts on many countries around the world.

In addition to the technological and natural hazards, people also face threats of terrorism posed by terrorists groups. Terrorist can be foreigner or domestic and their threats to people and nation from isolated acts of terrorism. The terrorists groups used different methods of attacks to create fear in people, like assassinations, kidnappings, car bombs, airline hijacking, building explosions, computer base attacks (cyber attacks), mailing of dangerous materials, use of biological, chemical and nuclear weapons. The main targets of terrorists are civilian, government departments, holiday destinations, international airports, historic and largest cities and businesses.

According to Enders W. and Todd S. (2002), “terrorism is the premeditated use or threat of use of force by individuals or groups to obtain social or political objective through the intimidation of large audience, beyond that of the immediate victim”. By using fear against civilian, terrorists create fear in general public through intimidation and hope to weaken the government’s legitimacy by strengthening their own importance. Beside civilian death and destruction, terrorism can have very serious impacts on economy and tourism in the worse and immediately affected industry by terrorism.

UK Tourism Sector and Economy as a Whole:

The tourism industry in one of the biggest and fastest growing industries in the United Kingdom, and an important economic sector for UK economy. It is the UK fifth largest industry which provide directly employment over 1.4 million people in UK. In last year domestic and international tourists spend over 90 billion in UK economy. According to Deloitte report 2007 tourism industry contributed direct and indirect in UK economy were worth 8.2% of GDP and also provided 2.65 millions jobs to workforce. The UK tourism industry employs more people than engineering and manufacturing industries, but both industries receive significant polices attention from Government. Growth in tourism sector could have significant impacts on UK workforce. In UK the combination of culture, history, world famous attractions and natural beauty is an attractive option for local and international tourists. There are number of upcoming opportunities like London Olympics 2012, Rugby League World Cup 2013, Glasgow Commonwealth Games 2014 and Rugby Union World Cup 2015 for the UK tourism that should be exploited and on the other side depreciation of sterling means increase in spending power of international tourists, which also make UK more attractive destination to visit. It also encourage local tourist to spend holidays in UK because foreign destinations become more expensive than UK’s. Recent reports shows that number of UK tourists going abroad has fallen significantly in past few years and they are planning holiday domestically. This is confirmed by BCC (2009) report, local business in Essex notes that, “there are definite signs that exchange rates are giving the UK tourism industry a boost with less people travelling abroad and more international tourists come UK”.

The future growth of UK tourism is predicted by BBC. According to BBC (2010) report; in 2018 domestic and overseas visitors will put ?115 billions a year in UK economy. The direct contribution in the UK economy will be ?52 billion in term of GDP which represent 4% of UK economy. Tourism also provides 1.36 million jobs in 2009 to UK workforce which is 10% of total work force. UK is the world’s sixth largest international tourism destination in term of number of tourists. After September 11, 2001 and July 7, 2005 incidents tourism industry was badly affected. According to the LCCI (2005) report, it has been estimated that the fall in tourism could cost UK tourism industry over ?300 millions. Liberal Democrat MP Sarah Teather and Brent East told GMT (2005), that the impact of London terrorist bombing on tourism industry is 60 percent worse than it was initially feared. They said that the terrorism cost UK tourism industry over ?500 million.

Why Terrorism target Tourism Industry:

The words tourism and terrorism exist at either end of a continuum of quality of life. The word tourism means living happily, enjoyment, and relaxation, while terrorism means feeling of death, destruction, fears and panics every where. According to Beirman D. (2003), “tourists are primary concerned with travelling to the destination satisfying their desires with minimum complications, threats to their safety and wellbeing “, while on the other hand Gilham (2001) said, “physical threat or serious disturbances to one’s plans are suffer to reduce the prospects of a tourist destination or tourist firm”. In past decade terrorism has very severe impacts on the travel and tourism industry than any other industry. The main reason of this may be because the basic objectives of the terrorist groups are to spread fear, as a result the basic safety and security of people threatened. According to Maslow A. (1943) the hierarchy of needs, he said that human nature never satisfied, when they have met their basic needs for safety and security. When they are able to satisfy their basic needs, then they attempt to satisfy their self actualisation needs such as better life, travel and tourism. According to Essner J. (2003), the psychological impacts are enough to have severe impacts on tourism. The fear of terrorism is irrational, because in terrorist attack chances of being killed are very little and security environment has demonstrated its negative impacts on tourism in many top destinations around the world.

In this competitive age, the business environment is changing dramatically. Terrorism is the biggest threat to tourism industry because travel is susceptible to the incidents of terrorism. When people travel they always avoid hazards, so for tourists safety is the major concern. During the past decade especially after September 11 2001, there are number of events which have had significant negative impacts on UK tourism. The correlation between terrorism and tourism is undeniable in the era due to industry strength and tourist places are the ideal target for terrorist to create large amount of economic and social disruption in the country. In UK terrorism can be seen in substantial part, as a result of this backlash to the tourism industry. There are number of definitions of terrorism, in the world of Alexander, Yonah, (1979) “terrorism is a threat or use of enforcement and inclemency to achieve a political goal by means of intimidation fear, and coercion”. In the present world context, the European Union (2001) define the terrorism relevant to international business in the following words. “Terrorist offences are certain criminal offences set out in a list comprised largely of serious offences against persons and property which, given their nature or context, may seriously damage a country or an international organisation where committed with the aim of: seriously intimidating a population; or unduly compelling a Government or international organisation to perform or abstain from performing any act; or seriously destabilizing or destroying the fundamental political, constitutional, economic or social structures of a country or an international organization”.

September 11 Terrorist Attacks and Tourism Industry:

Terrorism has deep history science the cold war but this issue become most salient after terrorist attacks in September 11 2001. This incident affected the UK and international tourism industry in various ways. On one hand the world tourism industry was affected financially, the other hand it suffers due to legal and security issues. The international tourism industry between countries was most seriously affected due to security and safety concerns and legal issue. Especially UK, US and other developed countries were compulsion to protect their territory and people at any cost. Tourism industry in UK and USA found themselves floundering financially in the months after the terrorist attack on world Trade Centre, while rest of the world tourism industry also lost millions of dollars. According to U.S department of state (2002) report more than 3000 people of different nationalities were killed in the terrorist attacks only in the United States in September 11, 2001. The attacks were the conspicuous example of terrorism on global level. According to the overview of European commission (2001) this was the one of the major event in the past decades which diversifies the viewpoint and outlook of people around the world. Terrorism affects both the long term and short term perspectives of the all economic sectors around the world. Czinkota (2002) cited that terrorism influenced long term karma of entire industries, for example tourism, retailing and manufacturing industries.

According to U.S Department of state (2001), “terrorist select businesses (e.g. tourism places) for attack compare to other targets”. The most kind of attack is bomb blast, although armed attacks and kidnapping are also some kinds of terrorist attacks. According to Council of Foreign Relations (2002) reported “the majority of victims in terrorist attack are civilians”. The relatively large number of tourists may not prepare to face these kinds of terrorist attacks. However the scenario has changed as it was at the time of terrorist attack in 9/11. Kunreuther, Michel and Porter (2003) said that during the days of terrorist attacks in 9/11 a common feeling came into mind of people that it could be me. But with the passage of time, this may give way to may be it will not ‘me’ next time. This kind of behaviour is more common now a day in south Asia. But it is a common thinking that it is extremely easy for terrorist that to attack any where in the world. Even in low cost and low tech attacks, terrorists achieve to disrupt the tourism industry.

After the September 11 terrorist attacks many international tourist destinations have badly affected legally because countries have introduced new laws for foreigner tourists e.g. strict visas requirements, security check and criminal record check etc. UK government also introduced strict immigration law for every one who wishes to come UK for visit, in the effort to prevent further terrorist attacks. The new terrorist laws restricted the tourists for freely travel across the UK borders and require by security department to keep proper track of their activities. The anti terrorist laws have made very complicated for tourism industry to conduct its business activities freely across the UK borders; as a result many people and firms engaged with tourism have financially struggled. Another major issue that affect the UK tourism industry is security and UK government have to invest huge amount of money to improve both internal and external security. The security is most important because terrorist target hot tourists spots and transportation network to achieve their targets.

There is not a vast existing literature which shows the relationship between terrorism and tourism management theories, and the lack of presence of research literature is absolutely visible on the relationship between terrorism and tourism management, which elaborates constructive techniques for tourism industry in the presence of phenomena of terrorism. Terrorism has capacity to create atmosphere of fear and can be intimidate industry in number of ways. This threat of terrorism attacks poses a continuous atmosphere of risk for the tourism around the world. This risk itself creates extension for treatment of risk in management theories. The majority of management literature theories adopt term ‘uncertainty’ as a factor of unpredictable environment which may influence the tourism industry in certain ways. The environment effected by terrorism also has a factor of unpredictability in it. This study is another attempt to research and investigates impacts of terrorism on the tourism industry in UK and we will also discuss different approaches for reducing and handling the terrorism threats.

Context and relevance of the Study:

The topic, impacts of terrorism on tourism industry has been widely explored, this study is based on past decade to find out the impacts of terrorism on UK tourism industry and suggest the appropriate framework that helps tourism industry to minimise the impacts of terrorism. Given this significance, the aim of this research is an attempt to find the impacts of terrorism on UK tourism industry in the present context for the period after September 11 2001.

Research Aim:

The aim of this research is to analyse and explore the effects of terrorism on tourism industry in the United Kingdom after September 11 2001. The second part of my research is to critically analyse and recommend the most appropriate framework for tourism industry to deal with the terrorist threats or scrutinize the different ways to avoid and minimise the impact of terrorism on tourism industry.

Research Objectives:

The research objectives will include the elements, which have relation to both terrorism and tourism. The objectives of this research will show the correlation between terrorism and tourism and the tourism industry is highly impacted by terrorism activities. This research has the following individual objectives:

To critically analyse the general impact of terrorism on United Kingdom tourism industry.

To recommend the most appropriate framework that helps the tourism industry to minimize the impact of terrorism.

Hypothesis:

The hypothesis of this study is as follows;

Tourism industry is likely, to be negatively impacted by terrorism events.

Research Questions:

The above research objectives can be broken down into following leading questions;

What are the effects of terrorism on UK tourism industry?

What measures and framework exist to minimize the impacts or consequences of terrorism on UK tourism Industry?

After having answered all above questions, conclusion and recommendations will be formulated to minimize the impacts for tourism industry. The conclusion and recommendations are put in the context of relevant political, economic and legal manners.

Scope and Limitations of the research:

This is an academic research that would shed some light on the matter of terrorism and tourism which have been discussed in different prospective in past. The significance of this study is found out the impacts after September 11 2001 and July 7 2005 terrorist attacks on UK tourism industry. Terrorism and tourism relationship is an ongoing issue and it relevance may change in different period because of the change of political structure of the countries. This study is relevant to the people involve in tourism and related industry and of much interest to get insight of the tourism industry.

The finding of this study will be limited from the following aspects. The study includes the impacts on UK tourism industry only. Hence, its findings may not be applicable to other countries tourism industries because of the frequencies and number of terrorist attacks. Another limitation is use of secondary data, this data is an important component of my research but there are some limitations that the secondary data may have and the problems that could arise if these limitations are ignored. The verification of existing data is difficult. Secondary data can be general and vague and sometimes it may cause difficulties in decision making. It is possible that data could be out dated and the sample used to generate the secondary data maybe small. The secondary data may not be accurate and sources of data need must always be checked. The sample used to collect data may be very small or very big, which means it may not show the true picture of the population. The secondary data sometimes does not help to design methods of formulating research question or answering that question. The data publisher company may not be reputable. While keeping in mind those limitations of secondary data, I will use data for my research from reputable academic websites and published literature.

Research Structure and Design:

This research consists of six chapters. It begins with chapter 1, which reveals the need, aim and objectives for this research to be attained. Chapter 2 of my research will discuss the methodology, which enables me to fulfil the requirements of this research. Chapter 3 is an extensive and deep interpretation of literature review about terrorism and tourism. This chapter also looks at the other literature on the tourism and terrorism topic, and also discusses the difference between previous researches and this research. Chapter 4 of this research will explore the impacts of terrorism on UK tourism industry. Chapter 5 of this research is about managing the effects of terrorism and discuss the framework to minimise the impacts of terrorism. Finally chapter 6 of this research is the conclusion and recommendation chapter which will answer all the key questions, aim and objectives of this research seek.

Abbreviation and terminology:

Uncertainty: specifically mean the unpredictable environment; it is unpredictable when next terrorist attack will occur.

Risk: mean threat; internal and external threat in tourism industry which may affect the productivity of organisation.

Toronto

Toronto is one of the most multicultural cities in the world. There are over 140 languages and dialects are spoken here, and just over 30 per cent of Toronto residents speak a language other than English or French at home. The top non-official home languages were: Chinese, Tamil, Italian, Spanish, and Portuguese.

“Visible minority” is defined by Statistics Canada as “persons, other than Aboriginal peoples, who are non-Caucasian in race or non-white in colour”

Background

Immigration to Canada can extends back thousands of years. The Inuit are believed to have arrived entirely separately from other indigenous peoples around 1200. Indigenous peoples contributed the culture and economy of the early European colonies and played an important role in fostering a unique Canadian cultural identity.

Immigration since the 1970s has overpoweringly of visible minorities from the developing world, since restrictions on non-white immigration was altogether removed, starting when Lester B. Pearson was prime minister with the revised Immigration Act, 1967. Currently, most immigrants come from South Asia and China and this trend is expected to continue.

Prior to 1885, restrictions on immigration were imposed mostly in response to large waves of immigration rather than planned policy decisions. The first Chinese Head Tax legislation passed in 1885, which was in response to a growing number of Chinese working on the Canadian Pacific Railway. Subsequent increases in the head tax in 1900 and 1903 limited Chinese entrants to Canada. In 1923 the government passed the Chinese Immigration Act which excluded Chinese from entering Canada altogether between 1923 and 1947.

Statistics (please refer to chapter 2 of the text)

In 2001, 250,640 people immigrated to Canada. Based on the Canada 2001 Census total population of 30,007,094 people, immigration represented 0.834% population growth that year. On a compounded basis, that immigration rate represents 8.7% population growth over 10 years, or 23.1% over 25 years (or 6.9 million people). Since 2001, immigration has ranged between 221,352 and 262,236 immigrants per annum.[8] According to Canada’s Immigration Program (October 2004) Canada has the highest per capita immigration rate in the world,[9] although statistics in the CIA World Factbook show that a number of city states and small island nations, as well as some larger countries in regions with refugee movements, have higher per capita rates.[10]

The three main official reasons given for the high level of immigration are:

A. The social component – Canada facilitates family reunification.

B. The humanitarian component – Relating to refugees.

C. The economic component – Attracting immigrants who will contribute economically and fill labour market needs (See related article, Economic impact of immigration to Canada).

There are three main immigration categories:
Economic immigrants

Citizenship and Immigration Canada uses several sub-categories of economic immigrants. The high-profile Skilled worker principal applicants group comprised 19.8% of all immigration in 2005.Canada has also created a VIP Business Immigration Program which allows immigrants with sufficient business experience or management experience to receive the Permanent Residency in a shorter period than other types of immigrations. The Province of Quebec has program called the Immigrant Investor Program [8]

Family class

Under a government program, both citizens and permanent residents can sponsor family members to immigrate to Canada.

Refugees

Immigration of refugees and those in need of protection.

Illegal immigration in Canada

There is no credible information available on illegal immigration in Canada. Estimates range between 35,000 and 120,000 illegal immigrants in Canada.

Issues involved

These cities are experiencing increased services demands that accompany strong population growth, causing concern about the capability of infrastructure in those cities to handle the influx. For example, a Toronto Star article published on 14 July 2006 authored by Daniel Stoffman noted that 43% of immigrants move to the Greater Toronto Area and said “unless Canada cuts immigrant numbers, our major cities will not be able to maintain their social and physical infrastructures”.[11] Opinions on how to address funding shortfalls vary, with others not citing immigration reduction as a solution. A public consultation by Mayor David Miller of Toronto, for example, emphasizes a better distribution of responsibilities among the three levels of government, and new funding models to address the concern.[12] Most of the provinces that do not have one of those destination cities have implemented strategies to try to boost their share of immigration.

Obviously, the fee made it costly, and therefore harder, for Chinese immigrants to come to Canada. But it also had the side effect of separating families – some could only afford to send one family member to Canada, who would save money to fetch the rest. But, when the Chinese Exclusion Act was implemented in 1923, families were then separated for extended periods of time, as long as 20 years in some cases. Chinese-Canadians were offended by the act, and observed July 1 as “Humiliation Day,” closing shops and boycotting Dominion Day celebrations. It made many Chinese-Canadians feel like second-class citizens. Obviously, the fee made it costly, and therefore harder, for Chinese immigrants to come to Canada. But it also had the side effect of separating families – some could only afford to send one family member to Canada, who would save money to fetch the rest. But, when the Chinese Exclusion Act was implemented in 1923, families were then separated for extended periods of time, as long as 20 years in some cases. Chinese-Canadians were offended by the act, and observed July 1 as “Humiliation Day,” closing shops and boycotting Dominion Day celebrations. It made many Chinese-Canadians feel like second-class citizens.

Due to lots of immaginat, heavy duty to services of health, education (like ESL for English as a Second Language), jobs, welfare, lot of money of welfare in refugees, city plan and facilities and crimes grown. Another way, the imagines help on economic development, like new house demend, small business grown, minopoty build up their community and poperty (land) grown and businese groet. Toronto start to delopment more north.

About two-thirds of the Chinese immigrants who came to B.C. during the last five years did not possess adequate English language ability at the time of landing. A majority of them spoke Cantonese and Mandarin as their mother tongue. As a result of the high concentration of Chinese immigrants in the family and independent worker classes, education qualifications of recent Chinese immigrants were somewhat polarized. Of those Chinese immigrants aged 20 or older who came to B.C.

during the last five yeas, 42 per cent had a secondary or lower education while 35 per cent had a bachelor degree or higher education.

A lot of Chinese immigrants from Hong Kong and China student prefer to stay in Canada and refugees. The reggges increase the health, social benift , and creim.

Key people involved in the public awareness?? of the issue or the resolving?? of the problem associated with the issue.

For discriminating against Chinese immigrants in past periods, an official government apology and compensations were announced on 22 June 2006.

Jane and Finch is a neighbourhood located in the former city of North York. It is a multi-cultural neighbourhood.

The Jane-Finch community has one of the largest concentrations of criminal gangs of any area in Canada. It also has “one of the highest proportions of youth, sole-supported families, refugees and immigrants, low-income earners and public housing tenants of any community in Toronto” (p.5, A Report of the Jane-Finch Street Involved Youth Issues Coalition, December 2002).

As well, there is a substantial and equally diverse population living in middle class detached, semi-detached, townhouses and high-rise tower blocks.

The area was alternatively named University Heights in January 2009 to get rid of its notorious tag.

Traditional methods used for resolving issues – if any

James Bissett, a former head of the Canadian Immigration Service, has suggested that the lack of any credible refugee screening process, combined with a high likelihood of ignoring any deportation orders, has resulted in tens of thousands of outstanding warrants for the arrest of rejected refugee claimants, with little attempt at enforcement.[16] Unlike in the U.S., refugees claimants in Canada do not have to attempt re-entry to learn the status of their claim. A 2008 report by the Auditor General Sheila Fraser stated that Canada has lost track of as many as 41,000 illegal immigrants.[17][18]

In the 1980s, there was a growing movement in Canada demanding payment and a government apology to make up for the injustices of the Chinese head tax. The Chinese Canadian National Council (CCNC) has been seeking redress for those affected by the head tax since 1984, asking for financial compensation and a formal apology from the government.

In December 2000, three Chinese-Canadians — backed by the CCNC — launched a class-action suit against the government. It was unsuccessful, primarily on the grounds that the Charter of Rights and Freedoms — introduced in 1982 — can’t be applied retroactively.

The decision was appealed. But the appeal was dismissed in Ontario Court of Appeal in 2002 and the Supreme Court of Canada in 2003. Ultimately, the courts felt the claim was a political issue, not a legal one.

And in 2003, the CCNC launched a new redress website and a Canadians for Redress Campaign.

In November 2005, the federal government, then led by Paul Martin and his Liberals, signed a $2.5-million deal to set up educational projects to commemorate those who paid the tax. The deal was struck with the National Congress of Chinese Canadians and 14 other Chinese-Canadian groups signed a deal with the federal government. But, the cabinet decided not to offer an apology because it could open the government to legal action. The agreement angered other Chinese-Canadian groups, including the Chinese Canadian National Council, who complained they had not been consulted.

In January 2006, then industry minister David Emerson said, after talking to lawyers, a full apology was in order. Then prime minister Paul Martin issued a personal apology on a Chinese-language radio program.

On April 4, 2006, newly elected Prime Minister Stephen Harper promised he would formally apologize for the head tax.

On June 22, 2006, Harper made a formal apology in Parliament. About 100 people, including some who paid the head tax and their families, boarded a train in Vancouver a week earlier to travel to Ottawa and hear the apology, in a journey dubbed the “Redress Express.” The public gallery in the House of Commons was filled with hundreds of people.

Harper apologized on behalf of the people and government of Canada for the head tax and the exclusion of Chinese-Canadians.

“We feel compelled to right this historic wrong for the simple reason it is the decent thing to do … a characteristic to be found at the core of the Canadian soul,” he said.

Harper also offered symbolic payments to compensate head-tax payers, or their spouses, and funding towards community projects. Susan Eng, of the Ontario Coalition of Head Tax Payers and Families, called it a historic day.

In October 2006, Harper said payments of $20,000 would start in the fall and the money would go to about 400 survivors or their widows. “Addressing it directly and honestly has been an issue we felt strongly about for some time,” Harper said.

Questions to be answered/Critical Analysis

Does the literature support the hypothesis and conclusion described in your previous assignment?

What other questions did you find from reviewing the literature?

Any ethical?? issues connected with research done in the

literature?