Category: Free Essays

Human Resource planning has been criticized as speculative and over-mathematical. Nevertheless, proponents argue that rather than attempting to predict the future, the value lies in challenging assumptions and stimulating thinking.

Human resource planning has been recognized as an undeniably important process in organization from the past. To mention about the statement above, it represents that human resource planning has focused more on quantitative and missed the qualitative part. In other words, most managers in organizations relay on theories and statistics over their own opinions and observations.

In the introduction, there are 3 main parts which consist of the original development of the plan, about the nature of the hospitality business and how this distinctive industry affects human resource planning.

Afterwards in the main body, there are the analysis of forecast demand and supply which are the most important steps in human resource planning.

As soon as employees are considered as human capitals to an organization, human resource management started to develop. Despite the word “human capital” is used, people are still tcomplex objects that have feelings and psychological needs that are unlike tools. And those needs and feelings can be analyzed and fulfilled through psychologies and theories. In order to utilize this capital in the organization, first and foremost, it is important to have better understandings about them.

The whole Human Resource planning is an evolving process as it is a part of Human Resource management; it is an evolution from scientific management developed in the late 19th century by Frederick Winslow Taylor and the System Theory by Niklas Luhmann. The concept of HRP was drawn upon from these classical approaches, thus the core consideration while developing a HRP is theory-based, as the guidelines and the framework are set. These approaches were sufficient and commonly used in the late 19th and early 20th century as the majority of the workforce was engaged in productions and factories.

And yet the contemporary human resource planning is facing a lot of challenges and instabilities such as demographic and political changes, intense international competitions, expensive and rapid development of technologies, and rising demand of customers. Because of all of these changes and development, they have shifted the nature of Human resource planning from being just plain predictions to including personal assumptions and thoughts in order to prolong the ‘life’ of HR planning.

The relationship between profitability and employee engagement

According to a workplace research done by the Gallop Organization, they conducted a survey in 2003 showing the relationship between profitability, guest satisfactions and employees recognitions within a corporation. The result of the research showed that corporations have more opportunities of achieving their goals by recognizing the employees when they met the goals that set with the supervisors or managers. Moreover, guest loyalty and engagements are also increased when employees are more committed to their work and corporations. The research also found that the commonness between successful organizations from the rest is that they had great managers who did a good job at selecting employees with the right skills and abilities to fulfill the role, developing employees’ strengths and skills, and creating the motivational environment.(Macaleer, Bill; Shannon, Jone, 2003)

Furthermore, as one of the characteristics of hospitality industry, the quality of services is perceived by guests at the point that the service is delivered, so the moment of truth lies largely on the commitment and involvement of the staff. (S.E Jackson, R.S.Schuler, 1990)

In other words, in order to meet organization’s goals, a comprehensive and effective Human Resource planning is a potent element. Hospitality industry is an extremely competitive industry in terms of revenue and market share, and by seeing the potential of increasing revenue by employees engagements, managers have to come up with more complex and non-traditional planning in order to survive from the fierce competition and to be able to retain the key individuals. To add, being traditional here means being too rigid, quantitative, and statistics-oriented.

Therefore, the traditional bureaucratic, task-driven, and over theoretical planning is not efficient anymore. Managers tend to be more dynamic during the planning process since they are required to be proactive and sensitive towards environment changes so as to make adventurous assumptions to keep up with the uncertainties.

Moreover, a well-planned human resource planning can also be the competitive advantage for the organizations in the sense that the Human Resource plan has fully done its job by generating revenue with the most important assets of companies or organization, the labor. Like the usage of Delphi method in forecasting demand and replacement chart in forecasting supply that will be mentioned later in the paper.

Balance of methods in forecasting Demand

In Human resource planning, there are two critical factors to be forecasted which are the demand for employees and the supply of employees.

The first sketch to draw is to forecast the demand. In order to do so, there are two different methods, and these are objective statistics method and subjective judgmental method. Although forecasting demand involves two completely different methods to look into, both methods are inevitably interrelated during demand forecasting and more importantly both should be balanced in order to determine the most accurate amount of people needed in the organization. A combine of forecasting methods can maximize accuracy and minimize errors. (J.Scott Armstrong, Kesten C. Green, 2009)

The two general types of forecasting are called Top-down forecasting and bottoms-up forecasting. General speaking, these two methods are to gather the relevant information to forecast the demand for employees.

According to Robert H. Woods(2006), top-down forecasting depends on quantitative or statistical approaches, while bottom-up forecasting is based on the experience of the managers. In another words, it can be described as an objective method and subjective method.

The word demand refers to rather characteristics of the particular job such as responsibilities, skills, and abilities. In spite of the fact that forecasting demand involves more towards soft factor, however, it does not necessarily mean that forecast demand should be based only on qualitative assumptions.

For example, if there is a hotel organization that starts at the very beginning, then it is impossible for the manager in the new company to forecast the demand since he or she has no experience and there is no history of the company to review. Therefore, during human resource planning, and when it comes to the first step to forecast the demand, it is crucial to have the same amount of importance on the core of organization, hard factor, and as well as the behavioral culture of organization, soft factor, in order to find the suitable employees for the particular job positions.

Without knowing the statistics and history of the organizations, it is hard to forecast demand correctly. Otherwise, the forecasting will turn out to be only subjective guesses, whereas the forecast isn’t accurate and reliable, and vice versa.

If the manager only depends on the hard factor without managerial judgment, then it will also bring about the case when the business miss the key impact on success since recognition on softer issues have been increasingly important. As far the softer issues, there are included with employee behavior, employee attitude, motivational of employee, business objective, and organization culture.

Delphi Technique

Apart from bottoms up and top down forecasting, there is also a method called Delphi technique that has been used more recently. It is a forecasting method that combined the quantitative and qualitative aspects to analyze the current demand of business with historical statistic data to determine on the future trends. It is a way to decide the demand forecasted by various number of experts’ judgments. It is true that a decision based on a number of people is a lot more unbiased and fair than only one person’s personal assumption. Therefore, the Delphi technique can be described as a combination group communication that lies on the real value of forecasting demand and that meets the purpose of human resource planning which is to hire the right qualified people the most. Talking about the evolution of human resource planning, the amount of importance has been getting more recognized on soft factors, as the human resource function has also evolved from the scientific management, personnel management and into human resource management eventually.

However, it shows that not only the speculative forecast based on quantitative soft factor is needed to take consideration, but also the qualitative assumptions and stimulus thinking from managers as well in order to have the balance to forecast demand accurately. Judgmental data should collect in a systematic manner and act as inputs to the quantitative models, instead of solely used as adjustments to the output, and that are proved to be the most effective by Armstrong and Collopy (1998).

After the forecasting demand, the next step is to forecast the supply. Since it is deeply interrelated with forecasting demand, it is inevitably important to follow the step one by one. During the human resource planning, if the demand is forecasted without the consideration of both objective and subjective aspects, then there will be nor right supply for the organization, which means that the company will not able to predict the right number of employees they need.

Forecasting the supply

As soon as the decision for demand is forecasted, the organization has already a clear and basic number to follow of how many people do they need and at what skill level. (L.S. Kleiman, 2004). The crucial challenge for forecasting supply is whether the result of demand forecasting is accurate, as the demand forecast is the base of the pyramid, if it was not build correctly, the pyramid is very likely to fall.

The supply refers to the number and typical of people available for the specific jobs. There are two sources generally when it comes to forecast supply, and that is to forecast internally and externally. Internal resource is used primarily and considered to be the most crucial and most available. (Bechet & Maki. 1987;Miller, 1980)

Both quantitative and qualitative techniques are available for supporting the forecast of supply.

Internal supply forecasting: Judgmental techniques

Internal supply forecasting starts with the judgmental technique by creating employee’s skill inventories and replacement chart to look for the suitable personnel for the specific job and while the statistical technique is used mostly in large organization is Markov analysis. (Dyer, 1982; Piskor & Dudding, 1978)

The latter is less commonly used in small organization because this technique requires the organization to have an extensive record keeping procedure and system. Whereas, the judgmental techniques has been developing rapidly into a more computerized system called Human resource information system. Proven that judgmental technique is more useful here.

External supply forecasting: Statistical Technique

External supply is a challenging criterion as it involves a lot of instabilities and uncertainties that is outside the organization environment. There are so many details to pay attentions to; therefore quantitative analyses are essential components in this step.

Higher education in Taiwan is divided into 3 levels, junior college, college and graduate school; each of the colleges has different numbers of academic years of 2 years, 4 years and 3 years respectively, thus, there will be three different figures of manpower supply from collages in Taiwan every year. Moreover, not all the graduates are joining the labor market right after graduation. Junior college graduates go to collage continuing their study or study aboard; female graduate may stay at home and become housewives. If the organization is planning to fill up the vacant with fresh graduates, they then need to look at the percentage that the Department of Statistics of Taiwan and calculate the exact amount of supply available in the market.

Furthermore, the correct quality of supply is also another consideration that is taken into account, so the courses of that the colleges are given are adopted as criteria as well. (C. Kao, L.H Chen, T.Y. Wang, H.T. Lee, 1997). A huge amount of numbers and statistics are collected for further analyses. The quantitative technique is emphasis greatly during external supply forecasting.

Same as in demand forecasting, the emphasis is on the balance between 2 methods of quantitative and qualitative. The same applies to supply forecasting, as using qualitative method to be the primary internal supply forecast method and using quantitative method in external supply forecast. The final result is the integration of both methods.

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Does the industry need it?

Human Resource planning is definitely needed in hospitality industry; in fact, it is needed in all types of business and industry if their primary concern is being successful and profitable. HR planning is the process to bring the organization to where they want to be from where they are.

Human Resource is an important department in hotel business, develop a HR plan is one of their major responsibilities. Labor cost is the number one expenses in hotels, because there are so many items and activities related to labor, for examples, training programs, orientations, evaluations and appraisals, a carefully planned HR planning can as well reduce the unnecessary labor cost. (G. Kumar, 2010)

Conclusion

Human resource planning is a relentless process as the business is going.

Planning won’t be effective without creativities and boldness to make adventurous assumption as we have mentioned in the text. Since human resource planning is mainly all about people, it should be included human factors as well.

The ideal planning is the balance between quantitative and qualitative while forecast demand and supply. Although the discussion is continuously going on the issue about the two different ways to organize the human resource planning, both are deeply interrelated with each other proven by the research that is written in the text.

Therefore, it can not fulfill the main objective of organization if there is no balanced amount of recognition on both methods to organize the human resource plan.

To conclude, during human resource planning, both hard and soft factors are equally important and essential in order to meet the main purpose of human resource which is to hire the right people to the right position at the right time.

Comprehensive project report is part of the MBA sem 3 and 4 curriculum. Under which 2 students in one group are supposed to study one industry and so we have selected TOURISM INDUSTRY for our study.

Tourism Industry is one of the fastest growing industries in the world with an average GDP of 11.6%. Changing lifestyle of the people because of a sudden increase in their income levels accredited to the opening up of the economy and Multinational Corporation has led to the steep growth of tourism industry in India. Tourist’s attention is shifting from established destinations such as European countries to emerging destination such as Asia-pacific countries. Travel barriers have been broken and there is a flow of free trade. Tourism has become multiple activates focused with the integration of shopping and recreation, entertainment and education and culture and business center development.

Tourism Industry is deeply affected by the social, technological, economic factors. All these factors have been given their due credit in the project. Economy being the bloodline of any country has been devoted a major chunk in the study of these factors followed by social and technological factors. Government policies provide a basic framework, which minds and controls every industry. Therefore, it has to be studied so that not a single factor remains untouched.

For the development of any industry the basic infrastructure facilities are very important. Indian railway is the world’s largest network under a single management. The railway is one of the facilities required for tourism besides aviation, telecommunications and accommodation.

Tour operators and travel agents perform the role of a liaison and a catalyst too in this industry without whom it is very difficult to operate.

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As we know that tourism industry of India is growing at a very fast pace so in this we have project also deals with the current scenario and the challenges faced by the tourism industry of India.

A few suggestions about development of tourism in India have been market in the project such as planning, organizational structure, business process reengineering, information systems, operations management, marketing strategy formulation, environmental impact assessment and project management.

GROWTH AND EVOLUTION OF TOURISM INDUSTRY IN INDIA

The fall of Roman Empire resulted into downfall of tourism, at least till the end of Middle East. The available facts reveal that Roman evinced interest in visiting temples, shrines, festivals and baths for health and amusement. The contours of Development underwent radical change at least till the 15th century. The trade and commerce along with religious activities gained the momentum but till the beginning of industrial revolution, tourism continued to remain the matter of pilgrimage. Of Course a number of developments took place between 15th and 18th centuries. Specially In the industrial world which raised the significance of specialization or expertise for excelling competition. This motivated the elite of the society to go abroad for enriching the knowledge, speeding up the learning cycle developing the excellence and making possible cross fertilization of thoughts and ideas. By the turn of 19th century, we find multifaceted development in transportation, communication and, technological sophistication, which energized the process of industrial transformation. The tourism started developing as a business and the professional Travel agents started taking part in the process. With the beginning of the 20th century the process of invention and innovation stated gaining momentum which made ways for the development of infrastructural facilities and further added new dimensions in tourism business. No doubts, the World War I and World War II obstructed the flow of development but the second half of the 20th century proved to be golden age, since almost all the countries of the world started patronizing tourism as an important economic activity.

Thomas cook was of the view that beauty is for the people. The opinion of Mr. Cook generated new dimension in the tourism business, which paved copious avenues for development of tourism as an industry. We can’t deny that since the time immemorial travel has been first choice of masses , the qualitative improvement in the process could take place with the participation and co-operation of leading global organization , such as WORLD TOURIST ORGANISATION, PACIFIC AREA TRAVEL ASSOCIATION, INTERNATIONAL UNION OF OFFICIAL TRAVEL ORGANISATION or so With the development of a broader concept, the essence of Tourism further distilled and it was more holistic approach because in the general theory of tourism, Walter Hunziker and Kurt Kraph (1942) considered it both a human As well as economic activity. In 1974, Burkat and Medlik again brushed up this approach since they viewed tourism as a composite phenomenon embracing a whole range of different relationship between traveler’s and the host population.

The intensity foreign exchange requirement was found at its peak and the tourism appeared to all of them an important source to be tapped optimally. In the face of succulent benefit, the developed, less developed and even the Developing countries started assigning due weight age to the tourism industry in their national development agenda. We agree with this view that with tremendous Socio-economic potential, the tourism industry is considered to be an economic bonanza which paves avenues for the Development of a number of allied Industries, such as hotel, communication, banking transportation, trade and commerce or so. In addition, we also consider tourism a potential source for making possible world peace through mutual appreciation and international understanding.

In the Indian perspective, we find Seventh Five Year Plan as watershed in the Development of tourism industry. For the first time, the vast potential of tourism as a foreign exchange earner and generator of employment opportunities was recognized.

Several policy initiatives were taken to develop the tourism sector In the development of tourism, the public sector has made a significant contribution. Of late, the industry is equipped with a reasonable infrastructural base and is poised for a self-sustained growth. The future growth of tourism is required to be activated with the support of the private sector. The strategy for the development of tourism is required to be designed on the basis of low-cost economy, higher level productivity, efficiency in the use of infrastructure and sophisticated tourist facilities.

The tourism industry bounced back from the global economic slowdown of last year with 2011 poised to show a positive growth number. As a matter of fact tourism is one of the largest industries globally, both in terms of size and employment ($5.4 trillion and 8.6 per cent of the global workforce.)

Indian tourism industry contributes 6.4% of total GDP. This compares to 3.3% for automotives manufacturing, 4.5% for education and 3.7% for the mining industry. So INR 6.7 billion is contributing from tourism industry in India.

PRODUCT PROFILE

1. Holiday as a Base – Mass Market, Popular Market

2. Demand as base – Primary, Secondary opportunity

3. Geography as a base – Cities, Provinces, Regions, Countries

4. Psychography as a base – Lifestyle, Personality Motive, Product, Knowledge.

5. Demography as a base – Age, Sex, Occupation, Class, Religion.

6. Socio-economic of base – Rich, Poor, Rural, Urban, Literate, Illiterate

7. Purpose as a base – Business Travel, Cultural Tourism, Common Interest

8. Age as base – Kids, Teens, Youths, Young, Married, Single.

The holiday base focuses or attention on the fact that long-distance tours require availability of more leisure hours. The holiday market is classified in terms of demand. The different categories are, the mass market, the popular market and the individual holiday market. The mass market involves largest number of- vacationists who generally travel in long groups. They prefer all-inclusive tours. The users belong to the conservative group in which we find skilled and semi-skilled workers, blue-collar employees as the potential users. The users are generally class one and class two groups, pensioners and retired people. The individual holiday market involves “social group-A7 like corporate chairman and senior executives. We find an apparent change in the behavioral profile of different categories in the holiday base. Another base is purpose in which we find business travel market, cultural tourism market, common interest tourism market and conference and convention.

The demand base classifies markets into primary tourism market, secondary tourism and opportunity tourism. The geographic base includes lifestyle, personality, motives, product and knowledge. The demography base covers age, sex occupation, class and religion. The socioeconomic base makes classification like rich, poor, rural, urban, literate and illiterate. The age-base classifies markets for kids, teens, youths, young married and old people market.

The aforesaid small segments simplify the task of tourist professionals. They know about the changing needs and requirements of different segments and innovate their strategic decisions accordingly. The development of marketing resources in tune with the changing levels of expectations make the ways for the stimulation of demand and simplify the task or marketers. It is in this context that we need to segment the market for the different allied industries helping the tourism industry in many ways.

Designing a Package Tour

In the process of formulating a sound product strategy, there are a number of factors to be given due attention. The designing of a package tour occupies a place of outstanding significance. For the profitable marketing of tourism services, it is pertinent that the different components of product are managed in a right fashion. This gravitates our attention on the offering of a package holiday product which necessitates management of the following factors.

Destination

The development of destination or tourist sites has a far-reaching impact on attracting the tourists. It is essential that destination or the tourist sites are easily accessible. This necessitates safe, fast and reliable transportation facilities hither and thither the tourist sites. To be more specific for promoting world tourism or attracting the foreign tourists, it is essential that the flying time is made proportionate. The site should be clean, the beaches should be sandy, sun-shine should be certain, the entertainment facilities at the site should be of quality the site should be safe to walk about, the local people should be friendly, the tour operator, the travel guides and others should have competence of speaking English and other regional languages. These facilities at the destination would add attractions.

Management of Airport

While managing the tourism product, the airports are required to be managed carefully. The airport should be local and convenient. The arrangement for car parking should be safe and adequate. It should not be congested but it should be spacious. In addition, the shopping facilities should be duty free. The airport should be clean and the vehicles should be available so that tourist doesn’t face any trouble. Besides, the security arrangement should be tight to protect the passengers and their valuables. The aesthetic management occupies a place of significance in the very context.

Airlines

The flights should maintain the time schedule otherwise a dislocation may invite multifaceted problems, not only to the tourists but even to the airport authorities. The services should be reliable, good and polite. The sophisticated modern aircrafts of new generation should be included in the fleet to attract the tourists. The safety record should also be up to mark to remove the fear psychosis or psycho-fobia.

Road and Rail Transportation

For the tourists preferring to travel by buses of railways, it is significant that the stations are well managed. The booking and reservation counters should be managed scientifically. The enquiry should be controlled by efficient and well behaved staff. The safety arrangement should be adequate to counter the law and order signposts should be positioned at right places to help the travelling passengers.

Hotels

For managing the hotel services, it is essential that we are also careful to the hotel accommodation facilities. It is pertinent that hotels are easily accessible to the tourist sites or beaches or shops. The hotel personnel trustworthy and competent enough to speak English and other regional languages. They are supposed to be friendly. The management of facilities at hotels need due care. Though the standard of services, amenities and facilities depend upon the grade of hotels still it is essential that hotels offer the promised services to the users. The gap between the services-promised and service-offered should be – bridge over. The hotels should be well maintained, the decor should be attractive; possibly a fair mix of eastern and western culture, the atmosphere should be calm and quiet; specially at the night time, public rooms should be adequate in number, the swimming pool should be neat and clean where inflow and outflow of water should be scientific to protect the danger of water contamination or pollution. There should be bar with good range of drinks.

The bedrooms should be spacious in which balcony facilities should be made available. The childcare services should also be made available. Particularly at the beach resorts, the sea view should be possible with all rooms, in-room telephonic services should be available, in, and room-TV should be provided. There should be adequate cupboard space. The hangers should be attractive and artistic, toilets should be neat and clean and well equipped with east and west provisions. The lighting and ventilation arrangements should be adequate. The intensity of light at different points should be given due weightage. While managing hotels, the restaurants and cafeterias also need due care. The restaurants and cafeterias should be well managed. The food and drinks should have taste-orientation. The varieties of meals and drinks should be available. The seating arrangements should be comfortable, the meal should be flexible and the hotel personnel should be polite and friendly.

Resort Representatives

Regarding representatives of resort, they should be-knowledgeable friendly, accessible and competent.

Miscellaneous

In addition, the fellow travelers should be like-minded. The main thing is to make the tour pleasant and memorable. If the tourists have companionable fellow travelers, the journey would of course remain memorable.

The aforesaid facts make it clear that being an amalgam of a number of industries and services, the tourism industry is known as a multi-segment industry in which the designing of a package which proves its instrumentality as a motivational force is found a bit difficult and challenging. It requires professional excellence so that we are in a position to assess the changing levels of expectations of the guests/tourists and all the required amenities and facilities are made available to help tourists to go to the destination, to enjoy and to come back safely. The tour operators and transport operators bear the responsibility of formulating a package tour and therefore they should have world class professional excellence to know and understand their changing needs and requirements.

The services are related to a number of industries managed by others and therefore, the tour operators and transport operators managing the affairs should make it sure that whatever the promises they have made on behalf of hotels, airways,’ railways, roadways are not to be distorted. This is likely to project the image of tour operators and therefore a gap between the services-promised and services-offered would make the task difficult. It is against this background that designing of a package tour occupies a place of outstanding significance and all the allied industries making the package are required to be careful that they are not inviting degeneration.

DEMAND DETERMINATION OF THE INDUSTRY

You should know this fact that India is such a country which is rich in beautiful and amazing places. Some places are god created whereas some are manmade. But in spite of having unbeatable tourism potential, lesser number of tourists visit different destinations of India for which it is known. Though Government authorities are continuously paying attention towards the growth of the tourism industry but still it is lacking the attention of a good number of travelers. It is a fact that tourism industry is contributing a large amount to the total GDP of the country so governments want to attract a good number of tourists to India. But Indian tourism is lacking a good number of tourists. This may be due to various reasons. Some of the important reasons are:

PRICE:-

While time and price are self-explanatory, pricing is an art in itself and

requires careful study as part of corporate policy. Price is the most powerful single variable in the marketing mix. But it does not operate in isolation. Value for money, albeit at different levels, is imperative. The product must be in demand or fashionable. It may be in short supply. Competition can be weak or strong, affecting achievable rates.

The wide variety of airline and hotel rates for basically the same product at different times and conditions of sale reflect these characteristics. The market may be very price sensitive, as in the case of traffic from Northern European urban areas to Mediterranean beaches where there is a strong competition and a wide choice. There are also resorts and their establishments offering exclusive attractions, justifying a premium price. Price discounting and discrimination, and segmentation, in the market has always been a feature in travel services. The historic rule is to charge

what the market will bear. The product is highly perishable and cannot be

stored. It is necessary normally to appeal to a number of different

segments. The railways invented first-, second- and third-class travel on

‘scheduled services’. When capacity exceeded demand, excursions and

package tours were invented, the purpose being to sell to capacity and

maximize the yield or return. Prices can be lowered segment by segment.

But the marketing task is to ensure that cheap traffic does not drive out

or invade the higher price and regular clientele. Airlines, for example,

offer Saturday night stopover fares at half or less than full fare, on the

assumption that full fare paying travelers, notably business travelers, will

not stay over the weekend. In times of crisis or recession, special rates apply. In fact, recession has always been the mother of invention in tourism, giving rise to new initiatives that created new movement.

Packages, cruises, specialist tours are all examples. Indeed many hotels have created events to attract business. Tactical plans must be highly flexible, short term and changing to meet the

varying ‘tides’ in demand, especially seasonal change. Economic and

political ‘perturbations’ usually unexpected, can alter trade suddenly and

sometimes with great force. Currency devaluation, the Gulf War and the

severe recession of 1991 in world markets are examples.

The strategic plan with its long-term marketing implications needs

consideration with the development plan. As marketing has a key role in

product formulation the plan must select market segments. For example, it may give priority to quality and higher priced services, which will affect the investment in equipment to provide luxury items. It will be important to select segments that fit together. At a later stage in preparing the marketing plan, a detailed product/market match exercise will be necessary.

The early resort promoters understood the selective approach very well.

There were from their inception select resorts, usually quiet, small and

patronized by the ‘upper classes’ and higher spenders, and large, gregarious resorts which were popular centers for ‘lower class’ visitors.

THE SUPPLY DETERMINANTS:-

There are supply determinants, ranging from absolutes such as under- or

overcapacity to infrastructure weakness, e.g. transport bottlenecks and

health and security dangers or political instability. Such factors can seriously

limit or even destroy for a time a tourist destination’s reception capacity. The

marketing plan will take such factors into account.

SEGMENTATION AND MOTIVATION:-

Two key aspects of the third demand determinant – consumer preference –

need careful study. Indeed the success of the whole marketing operation

depends on this. They are segmentation and motivation.

Tourism’s mass expansion takes many different forms. It is a heterogeneous

not a homogeneous movement, made up of many different types of

traveler, seeking a wide range of tourism products. Thus the mass

movement divides up into a number of segments, each differing from the

others and needing a separate approach in sales, servicing and product

provision.

There are many possible divisions and subdivisions which can be made

usefully in planning, but essentially the segmentation task is to identify

specific groups in the travelling population interested in the same type of

facility and service. The group identified must be large enough to warrant

separate marketing or production attention, to make a specialist approach

profitable. It must also be possible and practical to reach this section of the

population in an effective way. This means that the group should not be too

dispersed, and that there should be efficient media and distribution

channels enabling the producer to reach the customer at a reasonable

marketing cost. There are a number of criteria and categories in segmenting the total market.

POOR ARRANGEMENTS OF TRANSPORTATION FOR THE TOURISTS:-

Even after making lots of effort in improving qualities of the comforts for the tourists, it is said that the transportation system still requires to be improved. Tourists from outside India want to enjoy their tour with comforts in all respect and they are ready to pay for all these facilities. So it is essential to offer the best transport facilities for the tourists in order to attract more and more tourists.

NON-STANDARDIZATION OF FARES AND RATES:-

There are not any standard fares and rates for the transportation. Due to this tourists face lots of problem. Most of the travel agencies want to earn more and more especially from the tourists outside India. This ultimately gives a bad impression of India on outsider.

IMPROPER MAINTENANCE OF HERITAGES:-

With the advancement of tourism industry in India, numbers of heritages and resorts are built at different destinations in order to avoid inconvenience to the tourists. But most of the heritages are not maintained properly and these things are disliked by the tourists especially from outside India.

LACK OF SECURITY AND CHANCES OF HARASSMENT:-

If we talk about the security of the tourists, it is little bit weak. We can’t say with full confidence that the tourists who tour to India are secured completely.

LACK OF TRAINED AND PASSIONATE PROFESSIONALS:-

Due to lack of trained and passionate professionals, tourists don’t enjoy and get satisfied fully.

LACK OF PROMOTIONAL STRATEGIES:-

Indian tourism must adopt a good number of promotional strategies which will help in attracting a large number of tourists.

ABSENCE OF HYGIENIC AMENITIES IN THE RESORTS AND HOTELS:-

Though there are numbers of hotels and resorts but most of them lack in hygiene especially in the basic amenities which they offered to the tourists.

PLAYERS IN THE INDUSTRY
TOURISM COMPANIES
MARKET SHARES

Prime Travels

Thomas Cook India

SOTC tours

Cox & Kings

Club Mahindra Holidays

Kuoni Travel Group, India

Galileo International

Goodwind Travels Pvt. Ltd

Airtravel Enterprise India

Compass Tours India

KEY ISSUES AND CURRENT TRENDS

Tourism as one of the important foreign exchange earning industries has manifested great potential of growth under liberalized Indian economy. To attract the foreign tourists in India, liberal policies and reduction in taxes along with a comprehensive package for attracting tourist and foreign investment are the need of the hour. There is also a need to increase the government’s role in promoting India as a brand. Just like exports and other sectors, tourism will grow only if the India brand is established in the global market. Hence, we must have an open mind on alliances with other countries, which might help in adopting better promotion strategies, marketing, services and packaging. Only overall growth can help in improving revenue generation, which needs to grow in line with the additional capacity being setup by the hospitality industry.

Present Position of Tourism Industry in India:-

It may be mentioned here that the Government of India had no Tourism Policy for more than forty years since the initiation of planning in the country in1951. Consequently, no efforts were made to lay down any sort of infrastructure for the promotion and development of tourism industry in the country. As a matter of fact, the country, after independence, had to pay serious attention towards increasing food production and laying down infrastructure for industrial development. On both the fronts, the country made tremendous progress and became leader of the developing nations. In order to achieve targets of faster economic growth, a number of Public Sector Enterprises were set up including India Tourism Development Corporation. However, no worthwhile progress was made in developing tourism in accordance with tourism potential of the country. It was only in 1992 that a tourism policy was laid down by the Government of India.

As far as total revenue to the Government of India is concerned, tourism is the third largest source of foreign exchange earnings to the country after garments, gems and jewelry. India has tremendous potential to earn more foreign exchange because it has a huge and diverse potential for tourism ranging from pilgrimage tourism, beach tourism, eco-tourism, spiritual and health tourism to leisure and adventure tourism. The amazing diversity offers tourists everything they want to enjoy from a holiday but still we could not capitalize on the huge variety of amusements offered by our country. In order to attract the influx of tourists in the years to come, the Government of India has allocated US $590 million for the tourism sector for the period of 2002-07. While the global tourism market has shown negative growth, tourist arrivals in India have improved a little in the recent past. This is a positive indication but much more can be done to promote inbound tourism in India. In brief in India, the tourists feel insecure and irritated on account of unwanted paper work, time consuming compliance of various rules and regulations, customs and immigration formalities, currency convertibility, beggars, tipping, bargaining, environmental pollution, transport problem, high rates and taxes etc. Beggars are such a nuisance that they are visible almost at all tourist spots, hotels, shopping centers, markets, monuments, places of worship, railway stations and bus stands. They constantly follow the visitors and there have been occasions that the tourists are so much irritated that they cut short their visits, shopping and spending. The tourists, thus, ignore India to avoid hassles and prefer other destinations where the specter of poverty and its manifestation like begging do not spoil their holiday spirit. Thus, India’s third largest foreign exchange earning industry is beset with a large number of problems. These problems have been examined in greater details in the pages that follow.

RECENT CHALLENGES OF TOURISM INDUSTRY IN INDIA:-

During the last few years tourists have witnessed good amount of violence and killing almost in every country including India. Kashmir, historically known as ‘Heaven on the Earth’, appears to be deserted on account of terrorism and violence. A large number of tourists, who used to visit and stay for a longer period in the Kashmir valley, do not tour the State of Jammu & Kashmir for fear of violence and aggression. The business travelers also schedule their business trips only when it is absolutely essential. In fact, terrorism and violence have become the first and the foremost problem for tourists everywhere and India is no exception. The problem has assumed such alarming proportions that the world community must find its last in solution. The injustices done to the people in various parts of the world have result in great damage to tourism industry all over the world Tourists, especially of the developed countries; have been avoiding such destinations where there is any chance of violent activities against them. The problem has become so acute that the Governments in UK and the USA, in the recent past, had to issue travel advisories to their tourists. Though these travel advisories were, later on, withdrawn but the damage had already been done. India is not a preferred destination now for most of the Western tourists who spend, from our standards, a lot of money on tourism. Tourists are also irritated on account of unwanted paper work, time was the compliance of rules and regulations in India. In addition to customs and immigration formalities, language barriers are also the major problems faced by the foreign visitors. The difficulties of entry and exit too spoil half of the holiday charm. Again, our poor infrastructure, shortage of packaged tours, lack of connectivity between places, lack of transportation, our failure to create mass awareness throughout the world, polluted environment, discriminating economic and social behavior, inadequate and inexperienced staff, uneasy current convertibility and lack of multi-linguistic guides come in their way of pleasant tour and make the foreign tourists reluctant to come to India.

PEST Analysis

The Indian tourism industry has seen rapid growth in the last few years. Before any kind of analysis is undertaken, it is important to find out what are the main environmental influences that have lead to this growth and how the extent to which the changes are occurring. This is important because the change in these factors can have significant effect on the way the industry performs.

These environmental influences can be analyzed by using the PEST Analysis. The PEST Analysis within its parameters indicates the importance of the political, environmental, social and the technological changes on the industry.

a) Political / Legal Political

The political factors are the main force of the industry. The Indian tourism industry is built on the ba

The importance of Tourism and hospitality industry can never be over-emphasized in the development and growth of many nations in the world. As a result of the advancement in technology and globalisation, tourism and hospitality industry serve as a vital driver of job creation as well as being the main source of income for many developed and the less developed countries. Due to the pivotal role of this industry in the creation of wealth for nations, several companies as well as international organisations devise efficient and cost effective operational management methods in order to maximise their profits.

A key industry that propel tourism and enables tourism and hospitality industry to its present global height is the aviation industry, which not only transport people from one place to the other, but ensures that places that were deemed unreachable can be discovered, thereby creating wealth for organisations as well as enhancing the geographical prominence of countries in the league of nations. Virgin Atlantic, the second largest commercial airline in the United Kingdom play an active role in the tourism and hospitality business by ensuring that it provide cost effective and innovative services to its various clients.

As a result of keen competition in the aviation industry, Virgin Atlantic is renowned to be one of the pioneers of in-flight entertainment as well introducing a premium economy class services for its customers that can not afford to travel on an upper class but still wants to benefit and enjoy some of the privileges of the upper class clients.

The global economic recession as well as the harsh business climate has made it imperative for companies to re-evaluate their business models and device strategies to cope with the ever changing macro and micro environmental factors that affect the company. These are made possible by the analysis of the company’s Strength, Weakness, Opportunities and Threat (SWOT) it faces while operating in relation to their competitors.

Despite the advancement in technology, the three core functions of any organisation i.e. marketing, product and service development, and operation are well guided in order satisfy the ever increasing customer demands. To do these, most organisations align their operation management strategies to the changes in the external and internal forces that affect their operational model. Kim and Olsen (1993) corroborated this by advocating that a balanced approach must be used to monitor the events that occur in the external domain and assessing the potential impact on business and unit level operations.

Organisations must focus on their strengths in order to deal with the wide range of external factors in creating opportunities for themselves. On these basis, the identification of the external and internal operational management methods are clearly identified as a tool in increasing productivity ,customer satisfaction as well as promoting their products to their target audience.

STATEMENT OF THE RESEARCH PROBLEM

In every research, there are various problems that are identifiable, but for the purpose of this research, the following questions need investigation. What operational method can organisation adopt? What is the significance of operational management to an organisation? Should organisations in the hospitality industry adopt similar or different operational management?

OBJECTIVES OF THE STUDY

The objective of this research can be summarised as follow;

1. To analyse the operation management of Virgin Atlantic in relation to tourism and hospitality.

2. Establish the impact of internal and external factors that affects Virgin Atlantic operations.

3. How company formulate and adopt strategy.

4. Identifying the strengths and weakness of Virgin Atlantic

5. How the company measures service quality and improvement.

6. To established the best operational management methods for productivity and promotion.

SIGNIFICANCE OF THE STUDY

The study is of great importance because it underlines the understanding of the operation management of Virgin Atlantic which is one of the pioneers in innovation in the tourism and aviation industry. The research highlights the various approaches used by Virgin Atlantic in their daily operations and how it has been able to remain a viable and competitive company

LIMITATION OF THE STUDY

Due to time constraint, it was not possible to do a comparative study of the operation management of Virgin Atlantic in relation to other organisations in the aviation industry in relation to hospitality management.

HISTORICAL BACKGROUND OF VIRGIN ATLANTIC
Summary

Virgin Atlantic is the second largest commercial airline in the United Kingdom that starts operation in 1984.It is headquartered in Crawley near Gatwick airport and owned by Sir Richard Branson (51%) and Singapore Airlines (49%).The airline operates between the United Kingdom and North America, the Caribbean, Africa, the Middle East, Asia, and Australia from its bases at Gatwick Airport and London Heathrow Airport, using a mixed fleet of Airbus and Boeing wide-bodied jets (web 1). Almost uniquely among major airlines, it operates no short-haul services whatsoever, with its shortest route being from London to Accra (web 2).It offers three classes of travel: Upper, Premium Economy and Economy classes which all bears the hallmark of Virgin’s award winning inflight entertainment and based on airlines aims of provision of innovative service at excellent value for money for all classes of air travellers (web 3).

Birth and Formation

Virgin Atlantic was conceived as result of an idea from Randolph Fields who wanted to be operating flights from London to the Falklands islands after the Falkland war. But due to Logistic and operational cost, the Falklands operation was aborted and an alternative arrangement to have flights operating from London to the United States was agreed upon.

Randolph Fields proposed his idea of flights operations to Richard Branson at a party in Central and he agreed to be a partner in the flight business with 25% stake going to Randolph Fields and 75% to Richard Branson (Web 4). Like all Richard Branson businesses, he approaches the partnership as a venture that must succeed within a year or he exits the partnership. The airline was an instant hit in its first year and it was able to lease more planes in the second and subsequent years. Richard Branson eventually bought out Randolph Fields stake in the business in 1997 after disagreement over operations of the airline.

After its maiden flight to Newark in the United States on its leased Boeing 747 in 1984, the airline had acquired more aeroplanes to cover different routes and destinations ranging from Tokyo, Boston, Los Angeles, Rolando etc. Despite the apparent success and popularity of the airline, the company faced financial problems in the 1990’s due to the recession, the Gulf War and the subsequent collapse of International Leisure Group (ILG), there was need to save Virgin Atlantic from collapse and involves the abolition of the Traffic Distribution Rules (TDRs) which was meant to create equal distribution air traffic between Heathrow and Gatwick airports in order assist Gatwick airport to make profit.

The TDRs rule stated that airlines that do not operate international flights from Heathrow airport prior to 1977 would not be permitted operations there, but will instead be using Gatwick airport. The abolition of the rule made it possible for airlines to commence operational flights from Heathrow. This subsequently paved way for Virgin Atlantic to begin operations at Heathrow airport despite opposition from British airways who was the largest operator then. As a result of this move, Virgin Atlantic was able to increase its long-haul flights and survived the recession in the economy.

In order to consolidates its position and expand its flight operations, Virgin Group the parent company of Virgin Atlantic, sold 49% stake of the airline to Singapore airlines in year 2000, while Richard Branson retains 51% stake of the airline. This increased the value of the airline ?1.25 billion thereby making it one of the biggest private operated airline in world (Web 5).

Rivalry with Competitors

The movement of Virgin Atlantic operations to Heathrow signal a rivalry between the airline and British Airways. Amongst the rivalry between both airlines was the famous libel fine of ?500,000 and ?110,000 in 1993,that was awarded out of court to Richard Branson and Virgin Atlantic as well as ?3million court charge against British Airways for its “dirty tricks” campaign on Richard Branson and his airline (Web 6).Subsequently in June 2006, and British Airways was fined ?271 million as a result of a tip-off from Virgin Atlantic after investigation by the US and the British office of fair trading for alleged price-fixing between both airlines (Web 7) .

Agreement and Co-operation with Other Airlines

Despite Virgin Atlantic fierce rivalry with British Airways, the airline do partners and codeshare agreements with other airline in the world namely; South Africa Airways, Air China, Cyprus Airways, Flybe, Gulf Air, Scandinavian Airlines, US Airways, Malaysian Airways etc. in order to spread its reach across the world (Web 8)(Web 9).

Service and Innovation

Virgin Atlantic has been a pioneer in services and innovation in the aviation industry through its introduction various services and technology that are used to distinguish itself from other airlines in the in Industry. It operates three-classes (Economy, Premium Economy and Upper Class) of travel in order to cater for the needs of its passengers. The Economy class is the standard class and it provide among other facilities such as free meals, drinks and lumbar support for its passengers. The Premium Economy class provide clients with a wider seat having more leg room, priority boarding as well as separate check in area from the economy class passengers (Web 10).

The Upper Class provide the passengers with first class services ranging from larger menu and in-flight bar. It is also equipped with the biggest fully fitted flatbed compared to any other airline business class services. Virgin Atlantic airplanes also are equipped with the state of the art In- flight entertainment system, that provide entertainment to all its passengers in order to ensure that they have a memorable time while flying the airline and maintain their loyalty them.

CHAPTER TWO
LITERATURE REVIEW

The aim of any service business organization is to create goods and services that are of high quality, quantity and cost efficient in order to satisfy the consumers’ needs. This can be achieved by ensuring that detailed attention is devoted in the planning and control of day today running of the business, design of products and creating a competent processes for employees to work. Operation management covers all these essential functions from the top level management to the immediate control of operations in the business.

Operations management according to Nigel Slack et al. (2010) is defined as the activity of managing the resources which produce and deliver products and services. This system of management relates to the function of any organization responsible for the design, planning and control of resources for the provision of goods and services (David R.B and Paul L.F, 2010).

Operation Management Model

Source: Operations Management, 6th edition, Nigel Slack et al (2010, p.25)

The Evolution of Operation Managements

The history of Operations management can be traced to different projects in the development of human history from the construction of Egyptian pyramid to the building of the Great Wall of China and the industrial revolution that began in England in the 18th century. Before the industrial revolution, production of goods and services are made through custom made products. But as machines were invented, there was an increase in the factory system thereby leading to the specialization of labour as proclaimed by Adam Smith in 1776 in ‘The Wealth of Nations’ which emphasize the benefit of breaking down production activities to smaller parts and assigned to individual worker through the manufacturing process. This ensures an increase in the production of goods and services through specialization as opposed to the cottage system of manufacturing for individual needs of the consumer.

By the mid 19 century, most cottage industries were being replaced by factories which expanded to urban workforce with effective communication thereby paving way for the great output explosion of the 20 century (David R.B and Paul L.F, 2010).

A number of techniques were later introduced during this period among which is the scientific management principle developed by Frederick Winslow Taylor (1856-1915) (Taylor, 1911), that was used for the creation factory Ford Rouge plant in which mechanized assembly lines, specialized labour,mass production and interchangeable parts were featured. But with the major studies in the relationship between output production and human motivation by Maslow (1943) and Herzberg (1966), the essence of developing a social as well as a technical system for manufacture processes.

The growth in the Asian economic coupled with new manufacturing processes such as Just-in-Time (JIT) principle and Lean Operations in the 1960’s brings a different perspective to quality and design management thereby making businesses to improve on their product delivery. Wickham. S (1985) and Terry (1985) also emphasized this in their studies by recognizing that the view that techniques and systems are not the most important part of operation management but taking a more balanced strategic view of management operations. As a result business competitiveness depends not only on low level, limited impact system of operation but on a broader management operational view (David R.B and Paul L.F, 2010).

CHAPTER 3
MACRO AND MICRO ANALYSIS OF VIRGIN ATLANTIC

The operation of every business is affected by several internal and external factors which determine the growth and survival of a business organisation. These factors can analysed by looking at the environment in which a business operates otherwise called Environmental Scanning or Macro environment. Macro environment refers to the clients, markets, industries and competitors which an organization interact with during their business operations. These factors are outside the control of an organisation and indirectly affect its activities.

Kroon (1995) defined environmental scanning as ‘the study and interpretation of the political, economic, social and technological events and trends which influence a business, an industry or even a total market’. Based on this definition, Macro environment can be analysed by six factors or segmentation called PESTEL which is Political.Economical, Social, Technological and Environmental and Legal factors. These are in constant change and organizations must define strategies to meet up with the changes. Holloway (2004) stated that macro business environment is subject to continuous changes and in order for the business to survive, it must learn to adapt to these changes.

The Political and Legal factors such as government policies and legislations affect the mode of operation of every business. This factor can encompass political stability and favourable legislations such as tax concessions which encourage and promote the operation of business. Since Virgin Atlantic operate flights to different countries from the United Kingdom, the political environment in which it operates play a long way in the determining its success. The political decision of abolishing the Traffic Distribution Rules enables the airline to expand its operation flights and increase revenue for the company. Furthermore, countries of high political instability in Africa and Asia have a negative impact on the airline because the tourism potential reduces as a result of less people flying to these countries.

The Economic factors are significant in determining the operation management of Virgin Atlantic in the hospitality industry. The factors such as inflation rate, recession, spending power, deflation determine the role of Virgin Atlantic in the hospitality industry. The recent recession as well as the euro zone crisis has deeply affected the tourism and hospitality industry with less people travelling on holidays due to job cuts and ,high inflation rate and redundancies have lead a reduction of flights of Virgin Atlantic thereby affecting its profit.

Furthermore, deregulation of the airline industry has created an avenue for Virgin Atlantic to reduce to reduce airline fares. Although financially distressed airlines have cut fares to boost operational profit, Virgin Atlantic operates different incentives for their customers such as discount for senior citizens in the society as well as group travellers in order to stay ahead of their competitors.

Social and Environmental factors play a great role in the tourism and hospitality industries because the society demands the services that are rendered by the airline industry. Virgin Atlantic strive in is staff recruitment to employ people that care about the customers and provide their best for the customers by bringing their individual personalities to work while having fun at the same time (Virginatlantic.com, 2011).Consequently, as part of its corporate social responsibilities, Virgin Atlantic allows trained pets that accompanied disable people on its flights as well as providing assistance to unaccompanied children to travel. It also offers its customers complementary limousine pick up and provide in-flight beauty treatment for its business economy passengers.

The commitment of Virgin Atlantic to reduce its environmental impacts of its operations was highly lauded by the government for introducing biofuel in to some of its aircrafts in order to reduce emissions to the environment. It has also introduces recycling programme on board of all its aircraft as well company’s office in order to reduce the amount of waste generated and become a conscious and cost effective organisation(Virginatlantic.com,2011).

Technological factors are important in the provision of highly effective and accident free operation in the hospitality industry. Virgin Atlantic Airways believes in the role of technology in improving services and ensuring that safety of its staffs and passengers. It has been able to accomplish this by ensuring that it acquires new technological advanced aircrafts in order to improve the operation management and safety of the airline. Since flying is an highly dangerous operation if effective checks are not carried on airplanes, Virgin Atlantic have engineers that are highly trained have been researching to improve safety and security of airlines. They also introduce technologies in-flight entertainment to entertain the passengers while waiting for arrival as well while travelling on their flights.

MICRO ANALYSIS

The micro analysis factors influence the operation of any business organisation. These factors directly affect the operation of an organization and can change in order to align with organisation vision and goals. The micro economic factors that affect the operations of Virgin Atlantic in the hospitality business are; Customers, Suppliers, Employees, Competitors and Shareholders.

The customers are the main contributor to the survival of any business because they contribute to the revenue in which the business operation is being run. Virgin Atlantic take utmost care in providing a second to known service for its numerous customers, based on the original philosophy of Richard Branson, which is “to offer the best possible service to its clients while delivering the best possible value. People also regard Virgin Atlantic as a distinctive, fun-loving and highly innovative brand and one that is admired for its friendliness, intelligence and integrity” (Virginatlantic.com, 2011).

It also try to retain the patronage of all its customers by operating frequent flyer incentives such as the flying club where points accumulated from previous flights can be redeem later for free flights in the company. The introduction of in-flights entertainments on all is flights is also a ploy to make flying experience with Virgin Atlantic a memorable one.

The Virgin Atlantic employees are the assets of the organisation that project the values and culture of the organisation to the outside world. As a result of their importance to the goals and vision of Virgin Atlantic, serious emphases are placed in the recruitment of staffs that care about customers and bring their individual personalities to work in the company. It provide perks for its customers in form of staffs flight discount, excellent retirement benefit as well as good health care entitlement while working for the company.

The main suppliers to Virgin Atlantic airlines are Airbus and Boeing; aircraft manufacturers. They play a significant role in the operation of the airline by providing reliable and state of the arts airplanes the company. There are other companies that contribute to the successful operation of the airline such as Fuel companies that supply fuel for the operation of the airplanes, airports staffs that management the successful taking off and landing of the airplanes ,IT companies such as Del,IBM,CSC etc,that provide the hardware and software for the administrative activities of the company. Virgin Atlantic must work harmoniously with all these companies in order to have successful operation management.

Since the airline industry is a highly competitive industry different airline devise methods and promotions to lure customers to their airlines. The core competitor of Virgin Atlantic in the United Kingdom is British Airways. There have been several legal as well industrial disputes between both airlines in order to entice customers from each other. Since the reduction in government influence on the aviation industry in the United Kingdom, there have been intense completions between airlines to provide services that are better than its rivals. The core services provided by Virgin Atlantic which differentiate it from competitors are innovative technologies as well cheap and affordable flight tickets in relation to its rivals.

The shareholders of any business organisation are the ones that provide the capital for the operation of the business. As a result of this fact, their interest in ensuring that the business runs successfully in order to generate profit is very important. Virgin Atlantic is owned by Richard Branson (51%) and Singapore Airlines (49%) which form a global partnership and increase their operation capital for effective operation and to remain completive in the airline industry.

SWOT ANALYSIS

All businesses must assess and evaluate their positions in terms of where they are at the present and where want to be in future. In order to do this, the SWOT Analysis is carried out whish focus on the company’s Strengths, Weaknesses, Opportunities as well as Threat it faces in relation to its operation and survival.

Strengths

The strengths of any organisation are toe positive advantages that it possess in relation to other organisations. The strengths of Virgin Atlantic are;

Innovative and comprehensive services: Virgin Atlantic has innovative and comprehensive customer services which are designed to meet the ever increasing needs of their customers. The company’s passenger services unit arranges check-in facilities, baggage handling, meal catering, and in-flight entertainment. It also provide work in association with special assistance department unit to provide customers with special travel needs such as mobility aids, special meals, health camps at departures and arrivals (Datamonitor, 2011).

Association with Singapore Airline: Virgin Atlantic association with Singapore airlines has been highly beneficial to the customers of both airlines which enable them to book their flights through both companies. This association also enables virgin Atlantic to tap into the highly lucrative Asian countries thereby increasing revenue for the company as well as better services for the staffs and customers.

Weakness

Small Size: The apparent small size of Virgin Atlantic in relation to other big players in the aviation industry makes it difficult to compete fairly in the aviation industry. British Airways and Air France operates flights to about 300 and 244 destinations in the world in comparison to Virgin Atlantic that operates to just 30 destinations in the world. Virgin Atlantic also 38 aircrafts compared to the British airways and Air France with 238 and 558 respectively which also limit their competitiveness.

Price Fixing Allegations: The Office for fair Trading (OFT) found Virgin Atlantic and Cathay Pacific guilty of price fixing allegations after a three-year investigation. They were fixing the price for flights between London to Hong Kong route and were likely to face a severe penalty of about ?250 million. Allegations of this type of nature can severely dent brand image and make customers to lose faith in the company for providing competitive price for its services.

Opportunities

Increase in the Global Freight sector: The International Air Transport Association (IATA) forecasted that aviation will handle 38 million tonnes of air cargo in 2014, up 12.5 million tonnes from the 26 million tonnes carried in 2009. International freight volumes are expected to grow at a CAGR of 8.2% over the forecast period (Data monitor, 2011).As a result of this promising forecast from IATA, which most of the activities occurring in the Asia pacific routes, Virgin Atlantic will benefit significantly through its association with Singapore Airline.

Positive outlook of the Airline market: As a result of the Olympics coming up in the United Kingdom next year, Virgin Atlantic will benefit immensely in the transportation of tourist as well as other participant to the United Kingdom for the games. This will increase the revenue for the company as a result of the prominent position it plays in the United Kingdom aviation industry.

Threats

Price Discounting from Competitors: The ever increasing discount pricing in the domestic market by close competitors a such as BMI, Ryan Air, British Airways, Air France etc., has made it increasingly difficult made for Virgin Atlantic to have stable pricing structure thereby making it extremely difficult for the domestic operations to be profitable. Consequently, the increase in the size of airlines route system have significantly increase the competition between airlines thereby affecting the profitability as well as impacting on their operation’s.

Natural Disaster: The Volcanic eruption of Mount Eyjafjallajokul in 2010, created a huge dent in the operation of Virgin Atlantic. The ash from the volcanic eruption disrupts air travel operations across Europe, with flight being grounded several European countries such as United Kingdom, Germany, France, Denmark and other Scandinavian countries. It was estimated that airlines during this period lost hundreds of millions of pounds due to flights cancellation caused by the volcanic ash. This situation severely affected the operation management of Virgin Atlantic profit.

European Union (EU) Regulation: In 2005, an EU regulation came into effect for compensating passengers with valid ticket but which were denied boarding an airplane irrespective of the situation. This law also imposes fixed compensation to passengers for cancelled flights except if the airline can prove that such cancellation is caused by extraordinary circumstances, such as weather, air-traffic control delays or safety issues (Datamonitor, 2011).Subsequently, this law makes it to the prerogative of the airlines to provide meals, drinks, and accommodation as well as telephone calls for customers if delayed overnight. The overall expenses created by this law made impacted on the operational profitability of airlines in which Virgin Atlantic were one of the casualties.

Jet Fuel Cost: Since the airline operation depend on the jet fuel, the instability the fuel prices has significantly affected the operations of Virgin Atlantic. The volatile price of jet fuel exacerbated by the political uprising in the Middle East has impacted on the profitability of margin of Virgin Atlantic in its operations as result of high cost of buying the fuel for the aircrafts.

CHAPTER FOUR
CURRENTAND FUTURE OBJECTIVE OF THE ORGANISATION

After the SWOT analyses of Virgin Atlantic, it is imperative to take a deeper look into the current objective of the company in relation to its future plans. The current objective of any organization must align with its vision which is reflected in the organisation’s mission statement. The mission statement of Virgin Atlantic is “To grow a profitable airline, that people love to fly and where people love to work” (Virginatlantic.com, 2012).

As result of this statement, the operation management of the organisation was designed to cater for the needs of its customers by providing the best service while delivering it in the best possible values. It also ensures that its workers not only work for the organisation but derive enormous pride, fun and sense of well-being in the course of their services to the clients.

Furthermore, in-line with socially and corporate responsibility of Virgin Atlantic, introduced a wide range of environmental initiative that are meant to reduce the amount of waste generated in the company. These initiatives involves the recycling of all waste such as plastic glasses, vending cups, papers aluminum cans which are collected and recycled in order to raise money for the various charity organisations the company supports.

Virgin Atlantic is also a trail blazer in the technological innovation by volunteering one of its Boeings 747 for the test of bio-fuels in operating airlines with the hope of reducing the dependency of airlines on jet fuel. As a result of the initiative, the company intends to use biofuels composed of algae as a part supplement to the jet fuel in its flight operations (Airline in first biofuel flight, 2008).

The future objective of Virgin Atlantic is to seek ways in order to be competitive in the United Kingdom aviation after the tie-up agreement between British Airways and American Airlines (Sir Richard Branson begins strategic review of Virgin Atlantic, 2011).As a result of this, the company appointed Goldman Sachs to advise them about the potential approach from Air France-KLM and Delta Air Lines in order to re-align its business for future challenges (Virgin Atlantic Airways, 2011).

CHAPTER 5
MARKETING AND COMMUNICATION OBJECTIVES AND STRATEGIES

According to Baines et.al (2008), marketing strategy serves as the basic plan and template in which an organisation commences its operations in order to achieve its goals. The essence of marketing and communication objectives of any organisation enables it to differentiate its products and services from other related organisations. Marketing and communication strategy enables Virgin Atlantic to analyse its opportunities and target customers which it believe are relevant to short and long term goals as well as the objectives of the organisation. These strategies are achieved through various marketing mix i.e. the price, product, place and promotion which are used to communic

The tourism industry is one that is rapidly growing and constantly expanding in the 21st century. There seems to be an increase in the amount of people travelling and exploring all the wonders this world has to offer. According to an article published by the World Tourism Organization (UNWTO) in September of last year, the International Tourism percentage grew by almost 5 percent in the first 6 months of 2011 and this exceeded the 6.6 percent growth difference in that of 2010. The article goes on to say that this growth in tourism in such times needs to be examined and looked closely and they urge that countries make tourism as a priority in national level policies. There are many terms to specifically define tourism but in general and simple terms; tourism is the activity of a person travelling from one place to another for not more than a year. To add to this, tourism can be divided into many different branches, for example, adventure tourism, sports tourism, medical tourism, leisure tourism and many more. However, with this growth in tourism, there is a new aspect of tourism that is slowly making its mark and it is known as Food Tourism. Food tourism simple means the act of people visiting a particular place for the purpose of partaking in food festivals, or trying out of different food and restaurants in that particular country (Hall and Mitchell 2001).This new aspect of tourism was never famous but with the aid of new technologies, increase in accessibility and awareness, food tourism is slowly but surely rising. In Malaysia, this aspect of tourism is rising with more and more tourist travelling to Malaysia for reasons other than leisure and this in return has reflected the local economy of this country. Malaysia, being a country that is rich and diverse in its culture and heritage, has become an ideal place for tourist not only to experience the lifestyle and culture but to also partake with the local lifestyle and one example of doing so is by experiencing the food. There have been many attempts by the relevant industries in Malaysia to promote this growth of food tourism to make it an ultimate destination for food lovers around the world. This paper will outline an in-depth look at the meaning and definition of food tourism, and how this aspect of tourism is on the rise here in Malaysia and how this growth has effects on the tourism sector of this country.

1.1 Research Objectives

The tourism sector is moving into a new phase in present times. There are many new aspects of tourism that is on the rise, namely, heritage tourism, medical tourism, adventure tourism and now, food tourism. Gastronomic Tourism (as it is known scientifically) or Food tourism is defined as the visit to a particular place for the purpose of food festivals, or to try out and experiment different types of foods and restaurants (Hall, Sharples and Mitchell 2001). In Malaysia, food tourism is on the rise as there are more tourist visiting Malaysia for reasons other than leisure. This country has become a leading holiday destination among tourist everywhere with the blend of the three different races (Malay, Chinese and Indian) and the cultures these three races offer. Not only that, the location and climate of this country being warm and tropical year round adds to the many reasons to visit this country. With the blend of different cultures and heritage, the birth of different foods sets Malaysia apart from any other country allowing it to become a food lover’s paradise. According to an article by the News Straits Time paper in September 2010, it says that Malaysia has been ranked as the 9th most travelled tourist destination with around 23.65 million tourist and this research was done by the United Nations World Tourism Organization. The article goes on to say that potential tourist visiting Malaysia will spend around RM10.13 billion on food and beverage. The tourism ministry in Malaysia is working on making food as one of the main choices for tourist to visit Malaysia and there have been on-going initiatives being done by the relevant parties to help ensure that this aspect of tourism continues to grow and in time is able to sustain its own self. The objectives this research paper aims to achieve are:

To outline the growth of food tourism in Malaysia

As said earlier, Malaysia has managed to gain the upper hand in becoming one of the tourism destination spots. There are so many things that this country is able to offer and food is one of them. However, this aspect of food tourism is not widely known yet in Malaysia as there have been more studies and analysis carried out in other countries (Fox, 2007; Kivela and Crotts, 2006; Ryu and Jang, 2006); but the over the past years, the leaders and relevant parties have begun to recognise how Malaysia and its food is able to influence and has an impact on the tourism industry. Findings from this research will show how there has been a shift in the growth of food tourism in Malaysia and how this growth has impacted the local tourism industry.

How this growth has resulted in positive and negative impacts on the country

Growth in any form is good and healthy but with growth there comes positive and negative impacts and these impacts must be examined clearly to avoid any form of issue and to plan for future goals. This paper will outline how the growth in food tourism in Malaysia has resulted in a few positive and negative impacts and how these impacts can be interpreted to support and ensure this aspect of tourism continues to grow.

How this growth has affected the tourism sector and the initiatives taken to ensure continuous growth in the future

The tourism sector in Malaysia has been booming over the past few years and food tourism is even more so growing. In the latter part of the research, it will outline how this food tourism growth has had an impact on the tourism industry both positive and negative and how the government and the tourism sector have come up with ways and means to sustain this growth and ensure continuous growth in the future.

1.2 Significance of the study

The Kuala Lumpur tourism industry has seen a tremendous growth over the past few years with the number of international tourist arrivals rising up to 0.6% in 2011 compared to the previous years. One of the major motivations for tourist to visit Malaysia is because of the culture and heritage that Malaysia possesses and this is expressed in our food and local delicacies. People from other parts of the world are eager to know, learn and understand how is it that people with different races are able to live under one roof and allow their cultures to blend together. When people visit Kuala Lumpur, they are immediately thrown into a cultural explosion and one of the ways they are able to experience and learn about the different cultures is thorough the tasting and partaking of the local food.

The main significance and importance in conducting this research is that, there seems to be a rising pandemic in the food tourism sector. There has been a shift in the factors that influence the main reason tourist visit Kuala Lumpur, and food happens to one of the reason. There have not been many past researches and literature debate about the growth of food tourism in Kuala Lumpur as most of them are general and give and overview. This is why this research is important because this paper is able to highlight the growth of food tourism in Kuala Lumpur and how tourist have changed their motivational factors to visit Malaysia.

1.3 Limitation of study

The limitation of the study is that, it is only focused and limited to food and the role it plays in the tourist decision making process. Other influences such as cultural, or heritage or personal reasons to visit are minor and they will not be focused much on. The other limitation to this study is that, the questionnaires will be answered by tourist and not local people because this paper aims to examine the tourist reasons to visit Malaysia and does food play a role in their decision. The problem to that limitation is that the tourists are scattered all around the city so to target a large number and obtain different feedback, will be a challenge.

The other limitation that will be faced is that this research is only limited to the Kuala Lumpur surroundings and the tourist that stay with this area. This is because most of the tourists that travel to Malaysia stay within the city center and most of the attractions and local food can be found within the city limits. Besides that, by narrowing it down to just this area, there will be a better and clearer understanding of the objective that is being achieved.

1.4 Research Questions

This paper aims to outline the growth of the food tourism industry in Malaysia and how will it affect the tourism sector of Malaysia. When dealing with this topic, there are a few questions that will arise and it is through the results of the questionnaires and other literature findings that these questions will be answered.

The first question that will arise while conducting research on this topic is that, when and how did this growth in food tourism come about in Kuala Lumpur, Malaysia? This paper will determine how food tourism came into the scene in Kuala Lumpur and how has it been since it started. The next question that needs to be answered in this research paper is the impacts that these growths in food tourism have on the tourism sector in Kuala Lumpur, Malaysia. In any form of growth, there is bound to be certain impacts both positive and negative and this paper will aim to outline those impacts and how they affect the local tourism sector. The next question that will arise while conducting research on this paper is, will there be a future for the food tourism industry and if so, how will it be? This is where the question of sustainability will arise whereby, even though there is a growth in the food tourism industry now, will it still be the same in the future? All these questions will be answered in the latter part of the research paper.

Chapter 2 : Literature Review

Malaysia is slowly rising to become one of the key destination spots among tourist worldwide. This is largely due to the fact that Malaysia is a country that is developed, diverse, tropical and rich in its culture and heritage and this can be found in the traditional dances, beliefs, food, practices and many more. In addition, food tourism is slowly but surely on the rise here in this country. With the blend of the various cultures and beliefs, food seems to be the best expression. When debating about food tourism and its growth here in Malaysia, there has to be a separation in order to gain a better understanding. There has to be a clear definition of food, tourism, food and tourism in Malaysia and how it has an impact on the local tourism sector.

2.1 What is Food?

What is food? This may be a simple question yet, it plays a large importance in our daily life. Food is simply defined as a nutritious substance that people eat or drink in order to maintain a healthy life and growth. Food is an essential item in order to continue with life. The first and main importance of food in our everyday life is to provide our body with the necessary energy in order for us to carry out our daily routines such as working, walking, breathing, digesting and so on. Besides that, food helps to regulate the body’s processes and also to help fight against infections and diseases. In basic understanding, food is simply needed in order to live and carry on with life; however, there has been a great deal of change in the evolution of food.

2.2 What is tourism?

Tourism is an industry that is rapidly growing in the 21st century. More and more people are developing an interest in travelling and exploring all that the world has to offer. However, many fail to really understand the true meaning of tourism and what it really comprises of. Tourism is said to be the act of people or a group of people that lead them from one place to another, from one country to a different country, to perform something specific or to visit a place for the point of leisure, entertainment, business and so on. The World Tourism Organization defines tourism as the activities undertaken by and individual or a group of individuals that travel and move away from their usual place of comfort and environment and this has to be more than a period of 24 hours or more. The reasons behind their travel can be because of leisure, entertainment, business and other activities that are different from their daily routines. Tourism on the other hand can also include the relevant businesses or industries that are involved in providing services, activities, and facilities to the tourist that travel to their country

Tourism in any country is important and crucial. For countries like Egypt, America, Australia, Italy, Malaysia, India and China, a large portion of their earnings and income depend on the tourism industry. Tourism is important because, it stimulates economic growth for a country. When people travel to a particular place, they are bound to spent large sums of money on the flight, lodging, domestic travel and food in the particular country they are in. When you spend money in a country, it in return helps the economic growth for that country because the money spent there goes to help out and to cover the cost of development and in the sustaining of the country and its people. The second importance of tourism to a country is that it helps to promote development within that country. Countries around the world constantly strive to develop and be in the front lines in terms of development. Tourism is an industry that acts as a motivational factor for development to occur. When there is a demand and a rise in the amount of tourist that travel to a country, the need for new and modern facilities and activities will rise and this is where the country is able to gather its resources and develop the country so that it is able to cater to this growing demand. For example, Bangkok, Thailand has seen a major boost in its international tourist arrival and the tourism industry has seen this phenomenon and there has been an increase in the amount of lodging facilities to help cater to this demand. They have built new hotels and guesthouse that are modern, clean and affordable for the growing tourist market. The next importance of tourism to a country is that in terms of sociocultural, it helps to create new job opportunities and career prospects for the locals of that country. When there is any form of development in the country, there is bound to be new facilities and activities to help cater to the demand that is growing and when there are new facilities and developments taking place, the need for man power and job opportunities will arise and this is where the country is able to use the citizens of the country to help ensure that these developments in the tourism facilities and activities are sustained for years to come.

2.2.1 Tourism and Kuala Lumpur, Malaysia

The tourism industry in Kuala Lumpur, Malaysia is rapidly growing in these present times. The tourism industry has registered 11.63 million tourist arrivals in the first half of the year 2012 which is a 2.4% increase compared to the same period in 2011. This growth in tourism in Kuala Lumpur is largely due to the fact that, Malaysia is located in such an ideal location whereby the weather and climate of the country is tropical the whole year around with minimal rain which makes it easy to get around and explore the city. Besides that, Malaysia in itself is a country that is diverse and rich in its culture and heritage and this is expressed in our daily routines, local attractions, food and beliefs and this gives us a upper hand because no other country in the world can boast and say that they have 3 different races (Malays, Chinese and Indians) living under one roof and to add, we are all able to get along. This is something that foreign tourist find amazing and they are intrigued by and that is why they want to visit Kuala Lumpur.

2.3 What is Food tourism all about?

There are many branches to the tourism industry and food tourism is another aspect of tourism that is on the rise. Many people may argue and debate that food and tourism have no relationship to each other what so ever but in reality, food and tourism coexist and help each other because part of tourism is largely related to food and vice versa. One may look at food as a minor role played in the field of tourism but in reality, food is vital to ensure the full circle of a traveller’s experience. Hall and Sharples (2003) say that food is an integral part of the experience and how it contributed in a big sense to a person’s vacation. They go on to say that before, food was not taken into consideration as something that is important but of late it has been widely debated about. The book says that food acts as an expression of identity and culture which is in reality true. When travelling to another country, one is motivated to immerse themselves in the local culture of that place and subsequently this involves food. For example, it would be ridiculous if one travels to India and experiences the various cultures without tasting their local food. As mentioned, tasting and immersing in the local delicacies will help give a better understanding about the country and its culture. Over the years, the recognition of food tourism has increased and it is seen as a valuable asset the tourism sector has to offer. Even if there are some barriers because of some tourist that are not attracted by the local food, it still represents a vital and competitive advantage for some destinations (Cohen and Avieli, 2004).

2.3.1 Tourism Motivation: Is food one of it?

In basic travelling, there has to be somewhat of a motivational factor that causes people to travel to that particular place. In her book, Tourism Development (A K Bhatia 1985), she broke down the basic motivational factors for travelling into four different aspects:

Physical Motivators – This is related to the physical aspect of the destination, the activities offered and others.

Cultural Motivators – Individuals in this category are motivated by the beliefs and cultural heritage (the art, music and dance) that particular destination offers.

Interpersonal Motivators – This motivation is to visit family members, relatives, or to meet new people.

Status Motivators – This is derived from the need to accomplish certain activities to boost self -esteem or for personal development.

These however are the basic motivators for travelling but these motivators change when talking about travelling for food based purposes. Travelling for food based purposes can be linked to the cultural motivators (as seen above) or it can be classified as separate aspect all on its own. The motivator for food tourism can be linked to Maslow’s Hierarchy of Needs (Maslow 1943). In this hierarchy, there are 5 different levels of needs that are to be accomplished and they are physiological, safety, love, and esteem. For instance, if a person is lacking love or food or safety, they would probably yearn for food the most because in reality, food is needed to survive and the other needs come over time. But the real question that is to be asked here is that, is food the main motivation for ones decision in travelling? Are they travelling to fulfil their needs and desires? Or are they travelling to immerse themselves in different cultures? Or even are they adventure seekers and they want to try new things? According to Sajna (2005) she conjured up 4 different concepts as to why people participate in food tourism, namely:

Food Neophobia – This is related to how adventurous and open one is to trying new foods. According to Pliner and Hobden (1992), food neophobia is a personal trait defined as the reluctance to eat or avoid novel foods.

Variety- Seeking Tendency – This is related to ones desire for variety that is due to factors such as change in taste, constraints and feasible alternatives.

Hedonic Consumption – An aspect of consumer behaviour that relate to the multisensory, fantasy, and emotive aspects of a person’s experience with a certain product.

Enduring Involvement – The involvement of the tourists in the buying and participation of the travelling and tourism experience.

So in conclusion, food does and will play a role in the decision making process of the tourist when they visit a country. For those tourists that have a love for food and diversity would be motivated to travel to a country to experiment and try out their local delicacies and it is this act that is known as food tourism.

2.3.2 Food Tourism in Kuala Lumpur, Malaysia

Malaysia is a country that is rich in its heritage and culture with the combination of 3 different races living under one roof namely Malays, Chinese and Indians. With the blend and combination of these many cultures and ethnic background creates a haven of many different festivals, sights, heritage and FOOD. Because of all these variety in cultures and heritage, Malaysia has become a top choice of destination for tourist when it comes to their travel agenda. According to an article in the New Straits Times paper (2010), in the year 2009, Malaysia was ranked as 9th as the most travelled tourist destination United Nations World Tourism Organization (UNWTO) with 23.65 million tourist and the Tourism ministry of Malaysia plans to increase that number to 36 million tourist in the near future. This phenomenon can be due to many reasons such as the many historic sights to witness, the green landscape Mother Nature has to offer and also the endless shopping available to cure ones addiction. But other than that, food also plays an important role as one of the motivators for tourist to travel to Malaysia. Malaysia is known as a country that eats 24-hours a day with eating outlets ranging from traditional and authentic food to modern day cuisine and from road side delicacies to five star fine dining outlets. Anything you earn to eat can be found in Malaysia. No doubt that other country has their own unique blend of food but Malaysia is well known for its diverse mix in food ranging from Malay to international dishes.

Tourism in Malaysia is rapidly growing every year. More and more foreign tourists from all over the world want to visit Malaysia to experience first hand all the country has to offer. Food tourism another aspect of tourism is also on the rapid rise in Malaysia. There are many reasons to this phenomenon the first being that Malaysia is a country that is full and vast in its heritage and culture due to its blend of different races and religions living under one roof. Foreign tourist want to experience what it is like to be living in a country that has many rich and diverse mix of culture because they are unable to experience that in their own country. Take Australia or America or even Arab Saudi, these countries have only one main culture or heritage that they are exposed to where else when they visit Malaysia, they are able to experience maybe 3 or more cultures all under one roof. Because of this rich and diverse mix of cultures in Malaysia, food has also been a major pull factor for tourist. Just like everything else in Malaysia, food in Malaysia is a blend of many diverse cultures that add up or transcend into something that is very unique and that fits for all demographics. Even though Malaysian food may lack somewhat of sophistication, or design compared to that of the western world, it still meets the culinary requirements. There are so many different restaurants that cater to the Malaysian visitor that they can never get bored off. The next reason that can contribute to the rise in food tourism in Malaysia is because of the increase in the infrastructure of the country. It is now easier to get to places in a short time frame with the help of the many public transport systems such as the monorail, Hop-on Hop-off, LRT, busses and taxi services. With the increase of the number in tourist arrivals, the government has taken the initiative to expand its infrastructure to help cope with the stated rise in tourism thus, making it easier and cheaper for tourist to get around the country. Another reason why food tourism is easily accessible in Malaysia is because of the many different and affordable accommodations available from guest houses to 5-star hotel accommodations all located at a central area making it easy to get around the city.

Food Festivals In Malaysia

Because there is a rise in food tourism in Malaysia, many initiatives are being taken to ensure that this aspect of tourism is prolonged and not just for the present time. In order to do that, the Tourism Ministry of Malaysia has come up with many different showcases and festivals and attractions to draw in the foreign market to part-take in food tourism in Malaysia.

Malaysia International Gourmet Festival

This event was introduced in September 2001 and it is a collaboration of 13 five-star fine dining restaurants. The reason this event is held every year is to popularize the fine dining scene in Malaysia as many people perceive fine dining to be something that is very expensive and a waste of time. Even though Malaysians love dining out, they usually go for more traditional and known food rather than this type of a cuisine. Each year, the restaurants put aside their differences to come together in a collective effort to help market fine dining. Many people have taken interest into this event and it is growing every year.

Malaysia International Food and Beverage Trade fair

This fare has existed for more than 10 years and it has become the leading trade event for the food and beverage industry. It has become one of the most anticipated events in the country. This event offer new products, services and opportunities for the food industry enthusiast from all over the world. The highlights of this event range from the Malaysian Indigenous food and beverage as well as it gives the chance for foreign producers to dive into the local and worldwide food market place.

Food and Fruit Fiesta Malaysia

This event usually takes place in the month of July and it comprises of a wide spectrum of Asian and International cuisine together with a blend of tropical, subtropical and temperate fruits and food. Apart from this event being a past time among Malaysians, it has become a shared event.

Fabulous Food 1Malaysia

This is a 3 month food drive that has been organized by the Ministry of Tourism Malaysia and Tourism Malaysia that aims to celebrate and make known Malaysia’s unique and diverse culture represented in their cuisine with a series of exciting activities to draw the taste buds of all Malaysians and also the foreign market. According to the minister of tourism, this event not only highlights Malaysia as an eating destination full of culture and heritage but also as a country that is united through the blend of different types of food.

Apart from local events, there have been several occasions in which food festivals were held in countries outside Malaysia to highlight to those foreign market that are unable to visit Malaysia about Malaysia and its heritage and culture expressed through food.

Malaysia Night at Trafalgar Square

This is a famous tourist destination spot and it is located in central London. A festival on Malaysian street food was held at this square to give the local people there a small glimpse about Malaysian street food. The free food festival features around 20 different stalls from all over Malaysian restaurants and also some live entertainment. Besides food, art and craft were also displayed at the festival together with some live performances of Malaysian traditional and contemporary dance,

Malaysian Food Festival, Sydney

The Grace Brassiere located in Sydney, Australia recently had a Malaysian food festival to present and showcase to the local people in Australia about Malaysian food. Several cooking styles from mamak to the very aromatic lemak, were provided to cater to all the different pallet present. The festival was not only for those foodies but for everyone.

A Malaysian Food Celebration in New York City

New York has always been blessed with an array of different Asian cuisine ranging from Chinese Dumplings to Japanese Sushi and also South Asian Food. Recently, a Malaysian food festival was held in the Big Apple and this thrilled not only the Asians there but also the country’s residents. This event was sponsored by Malaysia Kitchen whose aim is to make Malaysian food well known. There was an array of many different kinds of food displayed to please ever palette present.

The Malaysian Food Festival, Taj Banjara Hyderabad

In an effort to spread the ‘Truly Asian’ hospitality, Tourism Malaysia, Malaysian Airlines together with The Taj group hotels recently had a nine day food festival on Malaysia. Truly Malaysian cuisine was served at the festival with the help of chef Ishaq from the Crown Plaza hotel. Besides food, people gathered were also treated to some Malaysian entertainment.

As stated, there is a collective effort being made to made to promote Food Tourism in Malaysia, Food tourism not necessarily has to be done by the locals but it can also be undertaken by everyone be it locals or foreigners. Not only in Malaysia but food festivals about Malaysia are being held everywhere in the world to spread the news about Malaysia and its food. Through proper and effective marketing and promotion, Malaysian food is able to reach across many borders. It’s only in recent years that the Malaysian government has recognised the increase in food tourism in Malaysian and it has now come up with various plans and strategies to further increase this aspect of tourism. Because of this, more and more foreign tourist are flooding Malaysia to experience first hand all that Malaysia has to offer and Food Tourism is one of them

Since 1987, the concept of sustainability was mentioned on a coordinated international platform, the movement towards “sustainability” had been expanded over the globe. The governmental and non-governmental organizations, corporations and consumers those focusing on exist in harmony are increasingly with the surroundings and environmental footprints. The hospitality industry also not exception, therefore the sustainability concept had begun to gain the momentum in this industry. (Ernst and Young, 2008)

Alison Sperry (2010) defined that Going Green is making the daily decisions with responsible that benefits to the environment and also can reduce waste and pollution. This concept also encourages a lifestyle of recycling, using chemical-free products, using the alternative energy sources such as the wind and solar, and reducing the dependency on fossil fuels for energy.

Hotel businesses developed and operated by the consumption of significant amounts of natural resources which are affected the sustainability of the natural environment. The field of corporate social responsibility (CSR) therefore, has grown considerably over the last decade due to an increasing number of companies formally recognising the impacts they have on the environment, on society and on the economy (Jones et.al, 2006).

Ernst and Young (2008) defined that “green: not a black and white issue.” The travellers that concerned about the environment were increasingly and they always make their own determination as to what constitutes “greenness” in the lodging industry.

According to Deloitte Survey (2008) showed that, consumers, employees and individual travellers start to concerned more about the hospitality industry’s sustainability. Most of the individuals also start to changes their lifestyles and accepting higher green standards for themselves and also to the companies that they cooperate with.

Marriott International has more than twenty-year commitment to start the environmental preservation. The Marriott International is “working toward a greener, healthier planet” and their operating units are employ methods to protect the surroundings of natural and resources (Marriott, 1996 – 2010).

Every year, the Marriott International and its owners had spent around 10 billion just for buy the products and services for its 3,300 hotels around the world. Marriott International also expanding its “green” hotels and buildings’ portfolios. Besides that, approximately 275 of Marriott’s hotels have received the “ENERGY STAR®” label from the U.S. Environmental Protection Agency (Marriott, 1996 – 2010).

Last but not least, Marriott International also was ranked 42nd out of 100 in “The Greenest Big Companies” on Newsweek’s first-ever list. Moreover, Marriott International also gets the “2009 Tourism for Tomorrow Award for Sustainability” in the categories of the Global Tourism Business by the World Travel and Tourism Council (WTTC) (Marriott, 1996 – 2010).

The Problem Statement

The problem of this topic is about how Marriott International. Inc. practices their going green programs in their properties. Marriott International Corporation is a leading worldwide hospitality company (Marriott, 2010). Currently, Marriott has more than 3100 of lodging properties is in the United States and 65 is in other countries and territories through 17 lodging, and vacation resort ownership brands (Marriott, 2009). Marriott Corporation has more than twenty year commitment with environmental preservation (Marriott, 2010). In 2007, Marriott formed a Global Green Council, a cross-functional team of senior executives that collaborated with Conservation International, a global environmental organization, to evaluate its practices, set long-term goals, develop an environmental strategic plan and catalyze its progress (Marriott, 2010).

Five-point Environmental Strategy of Marriott International was developed in collaboration with Conservation International which are includes (Marriott, 2009):

Reduce Consumption of Water, Waste and Energy

Greener Buildings, expansion of LEED-certified hotels

Greening Supply Chain

Protecting the Rainforest with Carbon Offsets

Employee & Guest Engagement

Over the last decade, for, the Marriott International corporate organized the “Going Green” programs which involved in energy conservation by changed 450,000 of the light bulbs with fluorescent lighting, installed around 400,000 low-flow of showerheads and toilets and also introduced the linens reuse programs in their hotels worldwide (Marriott, 2009). Besides that, the Marriott’s Retro-Commissioning (MRCx) program, planning process and a comprehensive evaluation that helps their properties which conducted more than 30 of their largest properties become as energy efficient as possible (Marriott, 2009). Through the projects to completed over last few years and those which currently under way, Marriott anticipate saving 12 million kilowatts of power (Marriott, 2009). In general, properties find that after it implement all the recommendations that evolved from an MRCx assessment, it energy costs decrease 5 to 25 per cent, they are also achieving on the average and a payback on their investment in just 1.4 years (Marriott, 2009).

In the Americas, Marriott achieved a 2.2 per cent reduction per available room (Marriott, 2009). In late 2009, through a partnership with a U.S.-based landscaping company, Marriott adopted a climate-specific approach to landscaping, using native plants and restricted colour palettes to reduce irrigation demands and cut the amount of fertilizer required to keep plants healthy (Marriott, 2009). In 2009, Marriott’s landfill waste in the USA totalled 726,993 tons which reflects a 17 per cent reduction from 2007(Marriott, 2009). Additionally, its recycling rate also was increased to 69 per cent and all the header quarters’ waste also was diverted from the landfill to the waste-to-energy plant (Marriott, 2009). Also, Marriott expanding its existing of ‘Reduce, Reuse and Recycle’ programs that already in place of 90 per cent of hotels which included guest room and meeting rooms (Marriott, 2009).

Forty Marriott International hotels are expected to receive the LEED certification from the USGBC (USGBC, 2010). In addition, Marriott international’s global Headquarters in Bethesda was received the LEED-Existing Building Gold status (USGBC, 2010). Moreover, the U.S. Environmental Protection Agency also had awarded Marriott International for three following years with its Sustained Excellence Award and more than 275 of its hotels also placed the “ENERGY STAR®” label (Marriott, 2010).

Marriott has teamed up with many Corporation or organizations to help them support their efforts to preserve and protect the environment (Marriott, 2009). For instance, Amazonas Sustainable Foundation (FAS), Conservation International, ENERGY STAR®, International Tourism Partnership (ITP), and U.S. Green Building Council (USGBC). The Marriott’s protecting the rainforest strategy is help to protect 1.4 million of acres in endangered rainforest for the Juma Sustainable Development Reserve (Marriott, 2009).

Research Questions

The followings are some key questions addressed by his research:

Is the Marriott International had practiced the going green?

How the Marriott International practiced the going green in this industry?

Why the Marriott international will practiced the going green?

What level of going green programs of Marriott International?

What differences between Marriott International’s going green program with other companies?

Does the going green program increase the income of Marriott International?

Research Objectives

To answer the above research questions, this study seek to accomplish the following objectives:

To investigate going green practiced among all Marriott International’s properties.

To determine how the Marriott International practiced the going green.

To determine the reasons of Marriott International practiced the going green.

To examine the level of going green practiced among all Marriott International’s properties.

To compare the level of going green with other companies.

To determine the advantages and disadvantages of going green in Marriott International.

To defined the relation between hospitality industry and CSR.

Theoretical/ Conceptual Framework
Conceptual Framework
Marriott International. Inc.
Going Green’s Programs
The strategies and programs of going green in Marriott International. Inc.
Identify the concept and structure of CSR in hospitality industry.
The Actions that practices by Marriott International corporate.
Theoretical Framework

This research mostly searches on the Marriott International Corporate practising the level of going green in most of their properties. The reason why Marriott International become famous in going green program because their organized a lot of events or activities to greening their companies. In the internet or newspaper, we can see that Marriott International corporate organized a lot of activities in greening and get a lot of award internationally in greening program. Besides that, their also is one of the famous go green corporate in the world. Moreover, the going green is not easy to practices in the companies because it need a lot of resources to make it really work.

Scope and Limitation

This study was carried out among all Marriott International in going green program. The Marriott International, Inc.’s operations are grouped into the five business segments which are North American Limited-Service Lodging, North American Full-Service Lodging, Luxury Lodging, International Lodging and Timeshare. This study also for defined the level of go green in Marriott International Corporate by Corporate Social Responsibility (CSR).

Significance of the Study

The significant of this research proposal is to evaluate the level of going green activities that practices or organized by Marriott International Corporate.

According to The New York Times (2009), the Marriott International announced that they would no longer deliver newspapers to every guestroom in the morning. They only will deliver to which guest rooms had requested a newspaper or can pick one up in the lobby. Although that change is arguably as much about saving money more than saving trees. Marriott had assessed that it would reduce the newspaper distribution at its hotels to about 18 million only annually.

Furthermore, this research is for acknowledge people around the world to know how important and advantages of going green in hospitality industries now a days. Now, most of the knowledge people are targeting the greening companies to cooperate with than normal companies.

This is why more and more companies going to practising greening in their company because followed by the trend of all around the world.

CHAPTER TWO
Literature Review
2.1 Introduction

The literature review will begin with an essential understanding of the key points needed in order to accomplish the aim of the project. The research will be analysed in the literature to help construct an academic structure on the definition and concept of Corporate Social Responsibility (CSR). The literature will also evaluate the purpose of sustainable development in the hospitality industry and its advantages and limitations. One area which has been particularly analysed is the going green programmes that practice by the hospitality industry as it contains most of the key areas. Furthermore, the literature reviews also analysing the views, theories arguments and perspectives of previous authors for assessment. The literature reviews also will finally perform as a source with which to analyse the differing perspectives on these key points identify gaps for argument and highlight key issues associated with going green programme in hospitality.

2.2 Corporate Social Responsibility Definitions and Concepts

The field of corporate social responsibility (CSR) has grown considerably over the last decade due to an increasing number of companies formally recognising the impacts they have on the environment, on society and on the economy (Jones et.al, 2006). CSR issues are now being combined into all parts of the business operations. CSR is made in the missions, visions and value statements of companies all around the world (Ofori and Hinson, 2007).

Definitions of corporate social responsibility (CSR) have, however, remained an area of deliberation from the concepts very beginnings. A variety of definitions have been framed. The Commission of the European Communities, Brussels (2001, p.6 ) defines CSR as:

“aˆ¦a concept whereby companies integrate environmental and social concerns in the business operations and in their interactions with their stakeholders on a voluntary basis.”

Therefore, CSR is not just fulfilling legal responsibilities but may also go beyond compliance to embrace wider social, environmental and economic goals (Brussels, 2001).

The concept of CSR is one which has emerged over the last 50 years to occupy a significant role in certain aspects of organisational theory and has only been in wide use since the 1960s (Meehan et al., 2006). CSR was eventually recognised as businesses that are part of society and have the potential to make a positive impact to the social goals (Jones et al., 2006). CSR therefore seems to be synonymous with charitable and voluntary acts by business organisations designed to improve social skills. Conversely, Donaldson and Preston (1995) believe that businesses are not responsible to society but responsible to their stakeholders and view CSR from this perspective.

Furthermore, one of most cited definitions of CSR is defined by the World Bank (2003), which defines CSR as the responsibility of businesses to contribute to the sustainable economic development which working with internal stakeholders, the local community, and society to improve the quality of life which is positive for business and development. The similarity among these different definitions of CSR is that companies should engage in CSR behaviour as part of their organisational strategy.

Bevan et al. (2004) list nine potential benefits of CSR which include reduced operating costs; improved profitability and financial performance; enhanced capability to innovate; better risk and crisis management; long-term sustainability for companies and the workforce; improved staff commitment and involvement; good relations with government and society; enhanced reputation and brand value; and enhanced customer relationships and increased awareness of customer needs.

2.3 The Sustainability Development of the Hotel Industry

International Tourism Partnership (2010) defines the term ‘green’ in business as initially related to the environmental issues. It also has evolved to include all aspects of corporate social responsibility (CSR) and sustainability. Sloan et al. (2009) define a sustainable hospitality operation as one which manages its resources in such a way that economic, social and environmental benefits are maximised in order to meet the need of the present generation while protecting and increasing opportunities for future generations.

According to Green Hotels Association (2010), “Green Hotels” have gained a foothold in lodging operators’ contribution to society’s concern for the environment which focuses on programmes which are designed to reduce solid waste, save water and save energy. Programme components such as towel rack hangers and sheet-changing cards have achieved positive responses by hotel management staff as well as guests for over ten years.

The UK hotel sector would appear to accept that it does have an impact on the environment (Brown, 1996). This is not only confirmed by exploratory research but also through the formation of the International Tourism Partnership (ITP). The ITP has published an environmental magazine, the ‘Green Hotelier’, whose readership cares about environmentally and socially responsible hotel behaviour as focused on positive sustainable travel and tourism development (International Tourism Partnership, 2010). According to research by the Carbon Trust (Green hotelier, 2010), rising energy prices and taxes are the biggest worries facing the British hospitality industry in 2010. This view is supported by Alexander and Kennedy (2002) who find that the most wasteful and costly of resources usage in hotels are commonly in the consumption of over water usage, non-renewable energy and also the overall wastage.

2.4 The state of CSR within the Hospitality and Tourism Industry

The state of CSR within hospitality and tourism enterprises may be slightly different from that in other businesses. Since 1992, the trend in the hospitality and tourism industry has been to focus on environmental concerns, use of technology, and efficient use of energy (Henderson, 2001). European hospitality organisations have established two initiatives that improve CSR in the European hospitality sector which are European Federation of Food and Agriculture and Tourism Trade Unions (EFFAT) and “Green Hotels” (Holcomb, 2007). In 2004, the EFFAT and the Confederation of National Associations of Hotels, Cafes and Restaurants in Europe drafted the agreement parameters for employers to sign a joint document on CSR, concerning working conditions, pay, equal opportunity, training, health and safety, and restructuring (The European Agency for Safety and Health at Work, 2008). These combined actions would appear to show the hospitality industry’s adoption of and commitment to socially responsible behaviour as opposed to externally derived governmental compliance directives.

2.5 Green initiatives, incentives and green wash

Nunes and Bennett (2010) list two categories of green initiatives that are operational in the marketplace. Firstly, businesses focus on integrating green features into the design or characteristics of individual products, for instance, developing a laundry detergent that is eco-friendly. Secondly, larger proportions of resources have been committed to reductions in the amount of waste generated and energy used, and also to building green and limiting CO2 emissions from production. In a major study, Alexander and Kennedy (2002) propose a ‘Zero Waste Approach’ that includes energy efficiency, water conservation and solid waste reduction, which can increase efficiency, provide cost savings, reduce the burden of extraction from and waste to nature, and allow more resources to be available. This view is supported by Nunes and Bennett (2010) who suggest that, ideally, green behaviour should go beyond simply creating a recyclable product to a more holistic incorporation of sustainable values into a corporation’s core principles and values.

Bohdanowicz et al. (2005) finds that the availability of facility-specific data and access to information on the relevant best practice are essential for assessing and benchmarking the environmental performance of hotel facilities. Alexander and Kennedy (2002) suggest an option for conserving energy which is implement energy-efficient projects in space heating and cooling systems. For instance, The Hyatt Regency International Hotel in New Zealand developed a project to link energy use with room occupancy which has saved $14,000 of energy annually (Hyatt, 2010). Alexander and Kennedy (2002) suggest that low-flow shower heads and tap aerators are some options for water conservation, which are becoming common among hotel facilities, and the payback period can be three years depending on the extent of the project. For instance, Green Hotels Association (2010) observed water use in the La Quinta Inn, San Antonio that had saved 180,000 gallons of water per year by installing ultra-flow toilets, low-flow shower heads and aerating taps in each room.

In addition, Priesnitz (2008, p.14 ) defines greenwash as:

“aˆ¦.the acts of misleading consumers regarding the environmental practices of a company or the environmental benefits of a product or service”.

Whellams and MacDonald (2007) label the corporations as greenwashers if they spend more on corporate image advertising that boasts about humanitarian programmes than on the programmes themselves, for instance, charities, donations or contributions. Greenwashing can have fatal effects on a company’s trustworthiness. This view is supported by Priesnitz (2008) who points out that not only are a firm’s customers deceived, but, that greenwashing can also ruin relationships with all stakeholders.

2.6 Case study of Accor and Hilton

Based on their total room number and location of their hotels, the two hotel groups selected for case study were Accor Hotel Group (Europe) and Hyatt Corporation (USA), being in 2009 the top 10 hotel groups in UK (Caterersearch, 2010). Marriott International Corporate also is one of the top 10 hotel groups in UK.

Company

Number of hotels

Number of rooms

Number of hotels worldwide

1

Whitbread Hotel Company

577+

40,000+

580

2

InterContinental Hotels Group

248

34,955

4,200

3

Travelodge (Dubai International

Capital)

372

23,150

380+

4

Accor Hotels

138

19,996

4,000

5

Hilton Hotels Corporation

78

16,566

3,200

6

Best Western

285

15,305

4,035

7

Wyndham Worldwide

122

12,274

7,000

8

Marriott Hotels

58

12,015

3,200

9

Carlson Hotels Worldwide

50

9,718

1,030

10

The Rezidor Hotel Group

42

7.759

380

Table 1: Top 10 Hotel Groups in the UK, 2009 by number of bedrooms.

(Caterersearch, 2010)

Accor Group Hotels

Accor currently manages 4,100 hotels under 13 different brands worldwide (Accor, 2010). The philosophy of Accor Corporation is respect for diverse cultures and incorporating environmental best practices in all its properties’ operations (Accor, 2010). The goals of their ‘Earth Guest’ programme, launched in 2006, are to reduce water and energy consumption, promote balanced nutrition and to double, in three years, the number of hotels that offer fair-trade products (Accor, 2010). The programme is divided into two parts which are a social responsibility development area (EGO) and an environmental responsibility development area (ECO) (Accor, 2010). EGO is includes programmes for local development, the protection of children, combating of epidemics and the promotion of healthy eating. Besides that, the ECO is includes the reduction of water and energy usage and the preservation of biodiversity, as well as the upgrading of waste sorting and recycling (Accor, 2008 and 2009).

The Hotelier’s Environmental Charter is Accor’s internal benchmarking tool and provides the local hotel managers with guidelines for environmentally sustainable business practices. According to the World Travel and Tourism Council (2010), the 88% of 4,000 Accor’s properties has adopted Hotelier’s Environmental Charter. The Charter gives hotel managers and employees clear instructions on how resources can be saved in the areas of energy, water and waste (Accor, 2008).

The first and second point of Hotelier’s Environmental Charter considers is energy and water (Accor, 2010). Compact fluorescent light bulbs are used in 82% hotels for areas that remain light 24 hours a day (Accor, 2010). Accor also continued to promote the use of renewable energy sources, installing solar-powered hot water systems in 32 hotels in 2009, with a total of 99 hotels now equipped worldwide (Accor, 2009). Accor is actively involved in water conservation measures and water usage per occupied room, total was reduced 4% between 2006 and 2009 (Accor, 2009). Moreover, flow-regulators have now been installed in showers and faucets in 89% of hotels (Accor, 2009).

Accor actively promotes waste sorting and recycling as well as eco-designed products for instance, 51% of hotels recover paper, cardboard and glass (Accor, 2008). Accor has improved its performance in waste management by manage with a dedicated waste management module that monitor the amount of waste produced per room, the recovery rate and the cost of waste disposal (Accor, 2009). Waste Traceability mainly concerns the separation of waste, where the company already achieves a high score in France owing to its proactive information policy (Accor, 2008). According to Accor (2010), their hotel prefers eco-labelled suppliers. In 2002, Accor dispatched an environmental purchasing charter to its purchasing organisations as well as to over 2,000 preferred suppliers (Sloan et al., 2009).

Hilton Hotels

Currently, Hilton Hotels Corporation has more than 3,200 hotels and 525,000 rooms in 77 countries. In 2009, Hilton is new global headquarters in McLean, Virginia which meets the highest environmental standard for his design, operation and construction (Environmental Leader, 2009).

Besides that, the sustainability target that aims in coming 2014 by Hilton Hotels was announced. Those include:

20 per cent: Reducing energy consumption from direct operations;

20 per cent: Reducing output of waste;

20 per cent: Reducing CO2 emissions;

And 10 per cent: Reducing the water consumption.

Furthermore, Hilton had already started to green its properties operations. Hilton says that it was reduced CO2 emissions in Hilton hotels that participating by more than 64,000 tons or 56 per cent of its carbon footprint. Those are from the introduction of carbon-free electricity at its properties in the United Kingdom and Ireland. Moreover, they also said that, it has also reduced around 10 per cent in over the last two years for the water consumption and energy usage. Hilton Hotels also reported that, in May it has delivered more than 10 per cent in last year of energy savings which across more than 80 hotels in the Europe.

Summary

In 2007, the Association of Corporate Travel Executives had conducted a survey which showed that, only 1/3 of corporate travel policies had promoted the sustainable tourism. Most of the major hotel chains are looking the ways to participate in green concept to their hotels; the water and energy conservation became popular ways to greening. Therefore, Marriott International has set their goal to lowering the GHG emissions around 2.2 million pounds by 2010 which said by Ed Fuller- the president and managing director of Marriott. Besides that, Wolfgang Neuman of Hilton Hotels also looking toward the eco-friendly in solar heating, air-conditioning and heat recovery systems to extract the water waste from another system and use it in other ways in short term period. As well as the 200 of Accor’s hotels in France will have Solar Panels by 2010.

CHAPTER THREE
Methodology
3.1 Introduction

In this research, in order to obtain the broad of knowledge about environmental operating practise in the hotel industry, a wide range of secondary sources will be reviewed. In addition, research strategy adopted was to conduct multiple case studies in two top hotel and Marriott companies in Europe and the USA. The main data collection techniques used in this research study was documentation analysis and content analysis. This chapter is divided into three sections. First, the interpretive stance in the field of information system is examined; second section is about the construction of the secondary research design which deals with the research design and covers the reasons for selecting resources; third section is describes the research approach followed in case study research.

3.2 Research Design

Currently, the secondary literatures have increase rapidly, particularly as new resources which are developed or ready through the internet (Saunders et al., 2009). In this research project, secondary research will allow the research to incorporate suitable and reliable data of green operation initiative in hospitality, so that all the gathered data can respond to the research questions relating to the green activities of hotel in Europe and the USA. Secondary research differs from primary research in the collection of the documentary is not the responsibility of the analyst. Stewart and Kamins (1993) was point out that the analyst enters the picture after the data collection effort is over in secondary research.

On the other hand, in primary research, the analyst is responsible for the design of research, the collection of data and the analysis and summary of the information (Stewart and Kamins, 1993). Secondary data although, has lack of direct control of the date, type, and procedure for collecting and recording of the data (Sauder et al, 2009), however, secondary data is more financial and time saving. For instance, secondary data particularly not necessary to wait for or pay to marketing researchers for a research project to collect primary data. By using secondary data, author can has more time and effort in analysing and interpreting the data, as it has already been collected. Secondary research moreover may increase the quality of the research by targeting the real dilemma and mistakes. Consultation on secondary resources increases the efficiency of the research by targeting real gaps and oversights in knowledge.

Primary research therefore has not been used in this project due to the wide variety of secondary data has been found. Primary research methods such as, questionnaires or interviews will not provide relevant information for this topic. On this basis, it can be concluded that secondary research is the main source of information provided in this study including information from academic journals, books, corporate reports and internet. Nevertheless, author should analyse cautiously the information gathered to determine its validity and reliability. This is because the research only uses one kind of research models and the argument generated about research topic.

3.3 Sources of Data
3.3.1 Secondary Data

Secondary research data is the key resource of information incorporate in this research proposal. However, the different secondary resources might have different type of information. A guideline for obtain valid and reliable information from different resources therefore, has been designed which can found in Table 2.

Type of information
Resources that might have that information

Established facts and figures

Reference books; official publications; government web sites

General information on a topic

Books of collected articles; text books; web sites of relevant organisations

Reviews of the literature on a topic

Journal articles; books of collected articles

Publications of recent research results

Journal articles; proceedings of conferences

Professional and academic debates

Journal articles; web sites of relevant organisations; newspapers

Table 2: The types of resources that provided different information.

In order to justify the author’s arguments and

Tourism industry is one of the leading industries around the world. It has been proved that this industry generates billions of money and it also helps people around the world to travel and increase their knowledge about other cultures and languages. But unfortunately, after thousands of years we found out that the tourism industry have a negative impact on the environment. However, there has been awareness both for the research arena and people since decades in the protection of the environment, and the need to safeguard the natural resources for the future generation. This awareness has spread all over the world starting first in US and Europe. The green practices were put into action after the deal Mauritius made with France for the contract of ‘Maurice Ile Durable’. The population of Mauritius comprising both consumers and producers have recently shown an increase concern about the environmental impact of products Considerable attention has been directed toward green products such as organic foods, recyclable paper, phosphate-free detergents, energy-efficient lighting. Consumers make product choices based on which combination of product attributes that meet their needs based on dimensions of value, cost, and prior satisfaction (Kotler, 1997). Considering the tourism industry in Mauritius, we can say that it is the leading growth sector. Somehow the country depends a lot on this industry and same as foreign countries, Mauritius also has made a lot of evolution. Big hotels were built in every coastal area to accommodate tourists and the minister of tourism has also embellished our historical gardens and other visiting sites. It is also well known that tourists are attracted by the 3’S of our country, that is, the sea, sun and the sand. Mauritius is a small Island and we must conserve and preserve the natural resources and also protect the environment surrounding us. As mentioned above, same as in Goa, Mauritius as well is facing serious problems concerning pollution and over use of resources. At present hotels, travelers and other tourism industries are aware of the measures that should be taken to preserve the nature together with the satisfaction of customers. This is why, nowadays it can be seen that there are hotels that are innovating into green hotels and more green hotels are built so as to be sustainable.

2.1 The Green Concept in the hotel industry

The “Green” concept of the hotel industry is an increase in awareness since the late 1980’s. The hotel sector is said to be one of the most energy and water intensive sectors in the tourism industry. (Bohdanowicz, 2005). When hotels are constructed there is a need to make use of the environment’s resources like the land. Hotels can operate in different parts of the environment. The facilities like comfortable services, supplies (heating, cooling, lighting, ventilation, etc) to customers are necessary for their operations. (Bohdanowicz, 2005; Han et al., 2009). All these are said to be contributions to negative impacts on the environment. However, the success of the tourism industry, as well as the hotel sector will depends on the availability of a clean environment. Hotels’ operation lead to pollution, waste, and other elements represent a threat for the environment. The “Green” concept in this context is to turn these elements into a recycling process that will cause less harm to the environment. It is believed that hotels have produced great harm to the environment by, for example, consuming vast quantities of non – recyclable products that generate tremendous waste, consuming substantial amounts of water and energy and emitting carbon dioxide and air, water and soil pollutants (Bohdanowicz, 2005; Chan, 2005). According to Wolfe and Shanklin (2001), the term “green”, which can alternatively be called “eco-friendly”, “environmentally responsible”, “environmentally friendly”, sustainable” and “environmentally oriented” (Han et al., 2009; Pizam, 2009), are referred to actions (for e.g. recycling) that diminish harmful impacts on the environment.

Green hotels are therefore described as environmentally responsible hotels that actively follow environmentally friendly guidelines, practice environmental management, implement diverse eco-friendly practices, institute sound green programs and commit themselves to achieving environmental improvement by displaying eco-labels or a green globe logo (Department of Environmental Protection, 2001; Green Hotel Association, 2008; Han et al., 2009, 2010; International Hotels Environmental Initiative, 1993).

There is a public concern over environmental damage and customers’ desire for environmentally oriented products have stimulated hotel operators to green their operations (Han et al., 2009; Manaktola & Jauhari, 2007; Wolfe & Shanklin, 2001). Researchers and practitioners agree that the greening of a hotel contributes to satisfying eco-friendly customers’ green needs, avoids criticism of existing tourism practices, fulfils the requirements of government regulations and substantially decreases costs through waste reduction, water or energy conservation and recycling (Chan, 2005; Han et al., 2009; Wolfe & Shanklin,2001).

2.2 The Green Building

Green building is a new term which refers to environmentally friendly practices from the building design to the landscaping choice. With the introduction of sustainable development, building also need to be sustainable because buildings generate large amount of wastes from its construction and during its lifetime. And these wastes impacts on the surroundings, the environment and the people.

According to Scatterfield (2009) “the less impact a building has on human health and the environment, the more green it is”. A green building can cost a lot at the beginning, but is profitable in the long run. It brings more benefits such as less pollution, more comfort for the employees and guests, and increase in productivity. The U.S Green Building Council (USGBC) in 2010 organised a competition with the aim to identify the “best and brightest vision” in the designing of “an environmentally friendly hotel suite”. The title of the competition was the sustainable Suite Design Competition. The judges have to consider several elements such as the resources efficiency of the suite (water, energy and materials), the guest room overall attributes, innovation nad aesthetic and lastly the cost associated with the design of the suite. The winner’s name was “Haptik”. The techniques developed by Haptik concerns the saving of energy in the room by using the PIS which is the passive infrared sensors. The PIS switch off light automatically when nobody is in the room. Haptik utilized the Trombe wall in the bathroom which uses sunlight to heat the water. A model of the suite was shown to the public during the HD Expo 2010.

2.2.1 The Green Building Certificate

There are several certifications given to hotel all over the world to encourage them to move towards eco friendly attitude. The certification includes specific norms from energy saving to waste water disposal. Having a certification is often considered as a marketing tool also. The certifications are often internationally known.

2.3 The Green Tourist

Nowadays, tourists are showing preferences for destinations that protect and preserve the environment. In the literature there has been a tendency to use the terms green and sustainable interchangeably. However, there are very distinct differences between the two. Green is defined as a product or service that is both environmentally and socially responsible. It is accountable to and respectful of the places and people that provide and use them (Mc Laren, 2006). Sustainable is defined as the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs. (Brundtland, 1987). Green Tourism is defined by the Green Association as travel and exploration within and around an area that offers visitors enjoyment and appreciation of the area’s natural assets and cultural resources, while inspiring physically active, intellectually stimulating and socially interactive experiences (Blackstone Corporation, 1996). The United Nations designated the year 2000 as the international year of Ecotourism. Eco tourists or green tourists attempt to travel in a manner not harmful to the environment. To travel green means to travel responsibly while conserving the environment and minimizing the social, cultural and ecological impacts, a green tourist enables other people to visit the same place later and still enjoy the same experience. Green tourism is informative because travelers learn their destination and local people learn what to appreciate what they have to offer. It supports the integrity of the place because conscientious travelers seek out things that are characteristic of the locality in terms of architecture, cuisine, heritage or environment. Quality not quantity should be the goal of Green Tourism, therefore permanence and richness of experience is what both parties are striving for.

According to environmentalists, the “Green” Practice was put into action when the view of the Earth was broadcasted through satellites programs. From that moment itself an increase concern to protect the earth’s fragility, and there is a need to conserve and protect it. This is the result in an increase of awareness of the following terms like; the ozone layer, greenhouse effect and acid rain. (Walker, 2000). Despite the complexities surrounding green behavior the tourism industry is still keen to understand how the green concerns of consumers correlate to tourists and how the concerns convert to travel- or holiday-related behavior. Moreover, Peattie (2001) has claimed that although all consumers are green consumers at some point in their lives, most green purchases involve a trade-off. These compromises include paying a green premium or accepting a lower standard product or service for better eco performance. However, differences in concerns and behaviors among tourists highlight the lack of homogeneity in this market. For example, concerns about the impact of transport and conservation of wildlife tend to be more mainstream issues, whereas erosion of recreational areas by walking or riding may only concern niche market segments, such as eco-tourists, environmentally responsible tourists or ethical tourists, which are the alternative terms given to green tourists ( Horner and Swarbrooke, 2006 ). These differences have been explained according to four factors – ‘awareness and knowledge of the issues; attitudes towards the environment in general; other priorities in life; information obtained from the media and pressure groups; and their health, family commitments and housing ‘ ( Horner and Swarbrooke, 2006, p. 181 ).

Although many in the tourism industry question whether the environmental concerns of tourists influence decision making, there is evidence that some tourists may choose anairline based on their environmental management practices ( Horner and Swarbrooke, 2006 ). They may also boycott events involving animal cruelty (for example, bull-fights) or campaign against tourism development that destroys wildlife habitats. Furthermore, the extent of change varies from one type of tourist to another. The very dark green consumers may convert their beliefs into action by not taking holidays away from home so as to prevent harm to the environment and in doing so do not become tourists. On the other hand, the ‘not all green’ tourist may show only a passing interest by reading about the environmental issues caused by tourism (Hornermand Swarbrooke, 2006).

2.4 Attitudes towards the Green Practice

Over the last few decades, protecting the environment has been a major issue in our society (Easterling et al., 1996). Recognizing the seriousness of ecological problems, people have become increasingly environmentally conscious. This ecological awareness has led an increasing number of individuals to engage in environmentally friendly behaviors in their everyday lives. (Kalafatis et al., 1999; Laroche et al., 2001). In addition, Amyx et al. (1994) has focused on the perceived importance of the environment to the degree to which individuals express their consciousness of environmental issues. In conceptualizing the perceived importance of the environment as the primary indicator of attitudes toward environmentally compatible behaviors, Laroche et al. (2001) determined the levels of these attitudes by whether individuals considered eco-friendly behaviors to be essential to themselves or the entire society. This ATGB mainly involves the perceived importance or inconvenience of environmental consciousness, the severity of environmental problems, and the level of responsibility of corporations (Laroche et al., 2001; McCarty and Shrum, 1994; Roberts, 1996). In other words, individuals’ ATGB can be established by the level of their awareness of these dimensions of ATGB for themselves and for society as a whole. Some researchers has also pointed out that only a small portion of environmentally conscious customers actually purchases eco-friendly products in the marketplace because of high monetary and non-monetary costs and inconvenience (Maibach, 1993; Roberts, 1996).

However, numerous findings indicated that more environmental concern tends to result in more environmentally friendly buying behaviors (e.g., Kalafatis et al., 1999; Laroche et al., 2001; Manaktola and Jauhari, 2007). Consumers may be willing to purchase environmentally-friendly products but are faced with constraints or conflicts that create a resistance to adopting pro-environmental behavior. For example, consumers may want to be environmentally responsible but still want to maintain their existing life-style (Schwartz, 1990; McDaniel and Rylander, 1993). They may not be prepared to sacrifice convenience (Simon, 1992; Stern, 1999), accept lower performance levels, or pay a price premium (Peattie, 1999b). Based on Ajzen’s (1988) theory of planned behaviour consumers’ environmental purchasing intentions and behaviour may be influenced by a number of factors, such as the individual’s knowledge and motivation, the ability to perform the behaviour and the opportunity to behave in an environmentally-friendly way (Pieters, 1989; O ? lander and Thogersen, 1995).

2.5 Tourists’ willingness to buy Green Products

Products are defined as “environmentally friendly” if in some way they aim at reducing a product’s negative environmental impact. Some authors have suggested that the failure to reassure consumers on the product’s functional performance was partly attributable to the early “failure” of many environmentally-friendly products (e.g. Davis, 1993; Ottman, 1999). Although it has been found that some consumers may, for example, accept a lower functional performance in order to buy a product that delivers environmental benefits, the environmental benefit in itself is neither the primary benefit sought nor the primary motivation for purchase (Speer, 1997; Ottman, 2001). As Wong et al. (1996) observed: “‘Green’ is seldom the over-riding determinant of product or brand choice but just another benefit or attribute that adds value, usually a ‘feel good’ factor to the overall product. (Wong et al., 1996, p. 269).

Some marketers appear to have overlooked this and assumed that an environmental positioning alone was sufficient to guarantee product success (Ottman, 1995). Product performance appears to play a key role in influencing consumer adoption and retention of environmental products. So, when there is consumer skepticism of the relative performance of environmental products or a performance gap exists (i.e.consumer expectations of the product’s performance have not matched up to the in-use experience), this may strongly influence the product’s acceptance (Wong et al., 1996).Within the hotel sector, increasing numbers of customers prefer to choose a green lodging facility that follows environmentally friendly practices, showing concern about the seriousness of ecological degradation (Han, Hsu, & Sheu, 2010; Manaktola & Jauhari, 2007). In recognition of this eco-friendly consumption need, nowadays many hotel firms seek to incorporate customers’ emerging concerns about the environment in their management or a marketing decision-making (Bohdanowicz, 2006; Lee, Hsu, Han, & Kim, 2010; Mensah, 2006). Altering their hotel operations to be green (i.e. significantly reducing environmental impacts) is becoming a necessity to attain noticeable improvement in their competitiveness in the market (Han, Hsu, & Lee, 2009; Manaktola & Jauhari, 2007). One of the most credible pieces of evidence demonstrating the increase of environmentally friendly customer behaviors is the increased number of customers who have a strong intention to pay more for green products (Laroche, Bergeron, & Barbaro-Forleo, 2001). In the hotel context, in reality, green hotel prices do not significantly differ from those of comparable conventional (or non-green) hotels (Han et al., 2009; Manaktola & Jauhari, 2007). The green hotel operators’ interest is in whether travelers are willing to pay comparable regular-hotel prices for their hotel, perhaps sacrificing little conveniences while staying at their green hotel (reusing towels, limited use of disposable products, use of recycled products/furniture, recycling bins, buffet-style foods without garnishes, meeting tables without tablecloths, minimized decor, non-smoking areas, dispensers for soap/shampoo, etc.). For consumers who are more receptive to environmental products and purchase them through choice, there may be a segment that are willing to pay more for the environmental benefit. But, whilst some authors suggest that consumers are willing-to-pay more for an environmentally-friendly products (Kassarjian, 1971; Freeman, 1989; Klein, 1990; McCloskey, 1990; Kapelianis et al., 1996; Laroche et al., 2001), others suggest otherwise (Wood, 1990; Simon, 1992; Sims, 1993). Marketplace examples also suggest that in reality consumers are not always prepared to pay the premium prices suggested by research (Fuller, 1999). Although our knowledge about consumers’ acceptance of paying a higher price for environmentally-friendly products appears to be inconsistent and inconclusive, it has often been found that consumers will pay on average around 5 percent more (Schwartz, 1990; Kapelianis et al., 1996; Speer, 1997).

2.6 Cost of going green in the hotel industry

With a broadly point of view, there are two approaches in the environmental cost analysis. One emphasizes the costs associated with environmental damage and its remediation, the other stresses on the price of control. In practice, this damage costing approach faces some essential problems in estimating the environmental impact as described by Bernow at al. (1991). Hotel developers still face specific barriers in developing and operating green properties, such as finding vendors, contractors, engineers, housekeepers, landscapers and managers that understand new systems, products and procedures. Complicating matters for hotels is to cover the typical hotel management and franchise agreements. The highly structures arrangements negotiated between hotels owners and hotel managers have not yet addressed a number of issues raised by green development, redevelopment or operation that affects the bottom line of both entities.

Finally, there is the issue of meeting the expectations of paying guests. Although we believe guests expect hotels to operate in an environmentally conscious fashion, it may also be that those same guests may have unrealistic expectations of luxury and comfort in terms of green operation. To take simple example, do hotels still need to put out individual shampoo bottles and does the spa need to smell faintly like chlorine to satisfy guests’ expectations. The costs arising from the implementation of ISO 14001 include those associated with initial set up, maintenance and improvement (Chin et al., 1998). The price of initial set up refers to all costs associated with the provision of hardware and software facilities, plus tools for establishing the system in compliance with the ISO 14000 EMS standards.

Based on the definition above, the Great Barrier Reef tourism industry is composed of a network of stakeholders, which include tourism businesses, nongovernmental organisations and government agencies who all work together to attract tourists to the area and to expand the industry. Most of the stakeholders are interconnected and they play an important role to achieve sustainability within the industry.

The table below lists the tourism industry stakeholders and their contribution in managing tourism sustainably.

Even though most of the stakeholders are aware of the issues of sustainability, not all of them bring a contribution to make tourism more sustainable.

? Stakeholder description and participation

?? The National Government, State Government and Local Government have a major role in setting policies, they are legally responsible and they provide funding. They not only influence the decisions but they have the major power in decision-making.

Environmental sustainable

The government agencies are responsible for producing and enforcing laws and policies.

Socio-cultural sustainable

Some of the policies set by the government force the other stakeholders to interact with the local community in order to make them beneficiate from the tourism industry.

Economic sustainable

The government invests in tourism development and expand the employment opportunities within the local economy.

?? Great Barrier Reef Marine Park Authority is the body that manages the protection and development within the Park. If the other governmental bodies have only few departments dedicated to ensure protection of the Great Barrier Reef, GBRMPA is the main body that focuses all its activity to ensure that everything within the marine park is managed sustainably. There is a strong connection between all the government departments and GBRMPA in order to develop the tourism industry and to ensure that is managed sustainably.

Environmental sustainable

Through this, GBRMPA??s goal to provide protection, wise use, understanding and enjoyment of the Great Barrier Reef is achieved.

Socio-cultural sustainable

GBRMPA is the stakeholder that links to all the other stakeholders, which collaborates not only with the other government bodies but also with the community, aboriginal people and tourism entrepreneurs.

For GBRMPA, community participation in decision-making is important.

Economic sustainable

GBRMPA ensures that a tax is perceived for both: realising permits and entering the reef

?? Aboriginal people can be defined as a pressure group that has tourism as a marginal interest. According to the table aboriginal people are not economically or environmental sustainable, their main interest is only to protect their culture and not to support or take part of the tourism industry. Their relationship with other stakeholders has been characterised through time by a lack of trust and communication.

Later on, the report will highlight the lack of will of communication and explore some of the conflicts raised between the aborigines and the other stakeholders.

Environmental & socio-cultural sustainable

?? The Community organisations represent a key influence due to their interaction with tourists; they participate by advising the governmental organisations regarding sustainability issues but they do not have power in decision-making.

?? The tourism entrepreneurs are the direct beneficiaries of the tourism industry. They have a strong relationship with the governmental bodies but they do not cooperate with the community group and the aboriginal people. As the table shows, they are sustainable only economically and environmentally. The next chapter will explain why they are not social-cultural sustainable and it will illustrate some of the issues raised between tourism operators and aborigines.

?? The tourists are not involved in decision-making but they have influence as they are the consumers and they can refuse the product. They are neither environmental nor social cultural sustainable but they bring hard currency to the country.

5. STRATEGY MATRIX

As it is shown in the matrix below, the stakeholders have a different impact on The Great Barrier Reef .Institutions such as: National Government, State Government, Local Government and Great Barrier Reef Marine Park Authority have a low impact upon the reef while their potential in decision-making is high. On the other hand, the aborigines, community, tourism entrepreneurs and tourists have a significant influence upon the reef but they do not have any potential in decision-making.

6. Conflicts between Aboriginal people and other stakeholders

Even though there is strong evidence to support the partnership with the aboriginal community, there are still issues that are not solved and they are difficult to deal with. There are problems regarding the haunting and fishing, the protection of the aboriginal culture and the lack of will of communication between the aboriginal community and the other stakeholders.

There are places where efforts are made to build relationships between aborigines and other tourism stakeholders. For example, The Marine Park Authority collaborates with the aborigines by allowing haunting and fishing in all areas of the Cairns Section except the Preservation Zones in order to help them conserve their culture. Still, not all the aboriginal people comply with the rules, therefore, there are conflicts raised between them and tourism operators.

For instance, reef tourism operators are in conflict with the aboriginals from Green Island hunting green turtles in front of the tourists in daytime. Furthermore, aborigines are selling the turtle??s meat illegally to tourists at high prices. A possible solution to minimise this conflict would be by providing education to aborigines regarding the importance of conservation of species. Tourism operators should also come to an agreement to let aborigines hunt after a certain hour when visitors leave the island.

Another issue influencing the relationship between stakeholders is the state government initiative to promote aboriginal tourism that is seen offensive rather than beneficial by aborigines that are still traditional. The reason why most traditional aborigines do not agree to take part in the tourism industry is their belief that their customs are in danger as long as they are followed for commercial purposes. The continuous growth of demand of tourists to interact with the aboriginal culture pushed the tour operators to exploit and to misrepresent the aboriginal spirituality. Moreover, some Aboriginal enterprises try to integrate ??traditional?? Aboriginal principles for marketing purposes.

For instance, it is certainly believed that only aboriginal men can play the didgeridoo, however, it has been found through an informal survey that some Aboriginal art galleries in Queensland allow tourist females to take part of this custom, which is totally against the aboriginal culture.

There are places where aborigines agreed to take part of the tourism industry just in special occasions such as the Queensland Centenary of Parks celebration day. Apart from this day, the aborigines do not agree to sell their dance for tourism purposes. Tour operators should come to an agreement with the aborigines and should assure the tribes that they will not allow any misrepresentation or exploitation of their culture.

7. Conclusions

To sum up, this report briefly outlines the importance and the impact of the stakeholders upon The Great Barrier Reef. This report also highlights the main issues that make some of the sustainability factors unachievable for some of the stakeholders.

One of the improvements that should be made refers to the relationship between aborigines and the other stakeholders, which would be more sustainable if the aboriginal community would benefit from an assurance that their culture will not be invaded and they will receive support in order to preserve it. Another step in building a healthy relationship between aborigines and the government is to initiate an educational program where aboriginal people would be helped to understand the benefits brought by the tourism industry and not only the negative part of it.

Gold Coast – The Surfer’s Paradise

Hello

A coastal city in the southeast Queensland state of Australia, Gold Coast is home to around 3 million people. Surfing is one of the main interests here. Both locals and tourists take a serious interest in surfing here. 35 kilometres of its golden sand beaches puts it as one of the most popular beach holiday destinations in Australia. Over two million tourists visit Gold Coast annually.

Best Season to visit Gold Coast

Gold Coast is open all around the year. You can expect clear-sky winters, crisp autumn mornings and golden and vibrant summers. When you have close to 300 days of sunshine a year, formal seasons become less apparent. Temperatures are much cooler in rural areas and the hinterland all through the year.

The peak seasons are mainly summer (December to February) and autumn (March to May).

Highlights (Special Things to Do in Gold Coast)

Adrenaline-pumping rides, exotic animals and endless number of waterslides will help cool you off here. Gold Coast holidays have a full range of interactive entertainment to offer, be it big dazzling theme parks or small yet hilariously quirky museums.

Let your hair loose at one the many theme parks dotting Gold Coast. Gold Coast is home to some of the largest and best theme parks in the world.
You can Cuddle a koala, feed a flock of rainbow lorikeets or even swim with the dolphins – do much more at the wild parks and aquariums nearby.
Revisit history, at some of the city’s oldest and most renowned attractions.
Watch Whales.
Experience the bio-diverse city and the largest subtropical rainforest in Australia, at the natural parks and attractions around the city.
Sample the city’s stunning walking tracks that come with incredible lookouts.
Learn how beer is brewed and taste one of the region’s finest wines at a local vineyard.
Rejuvenate and unwind at one of Gold Coast’s award-winning spas or wellness retreats.
Indulge in sports and recreational activities, from surfing to sky diving.

Hotspots of Gold Coast

You can check out these popular places to visit in Gold Coast.

Surfers Paradise: Surfers Paradise is the signature high-rise settlement emerging out of the commercial centre of the Gold Coast.
Surfer’s Paradise Beach: Three-kilometre long strip of golden sands between Surfers Paradise and the Pacific Ocean is a picture perfect location that mesmerizes millions every year.
SkyPoint Climb: This is the highest external building walk in Australia. Feel a sense of achievement when you stand on a 270 meter high with the sun shimmering around you with a 360 degree view of golden sands, lush green tropical mountains and the Gold Coast skyline.
Ripley’s Believe It Or Not!: Get overwhelmed by hundreds of incredible exhibits, rare stories, mystery and magic, incredible deceptions, interactive games and astounding movies.
Movie Stunt Experience: Be an action hero, choosing whether to break through windows, commando-style or fly around by being suspended on wires or jump from buildings or even be lit on fire.
Slingshot Gold Coast: Holding 2 people at a time, with a video camera attached to capture the riders’ reactions, the Slingshot catapults you 80 meters up in the air.
Jetboat Extreme: Spin and slide across the sea in a custom-built, twin-jet-powered, turbo-charged jet boat.
Coolangatta
Coolangatta Beach: Known for its slow pace and laid back lifestyle, it is the southernmost beach in Queensland.
Snapper Rocks: Snapper Rocks is a small rocky ridge that is famous for the Superbank, the start of the large sand bank.
Kirra Beach: The small rocky headland Kirra Point, is known as one of the world’s leading surf breaks. This surf break is known for producing high quality waves.
Gold Coast Skydive: You get to jump off a plane at 12,000 feet above the ground; free-fall for roughly 40 seconds before opening the parachute to take in the mesmerising beauty of Gold Coast, and finally landing on to the warm sand of Kirra Beach.
Southport
The Rockpools: A water theme park for all age groups, the Rockpools that comes with a coastal theme has a creek bed and an array of pools that mimic coastal tides.
Burleigh Heads
Burleigh Heads Beach: Simply Burleigh to locals, it sits like a pause, between Surfers Paradise and Coolangatta to the north and south respectively. It’s a charming punctuation mark along the Gold Coast and absolutely a place to stop and take notice.
Springbrook
Natural Bridge: Natural Bridge at Springbrook National Park is the most uncommon geological feature created by water flowing through the roof of a basalt cave for millions of years. It is home to an enchanting colony of glow-worms, which can be seen after sunset.
Mermaid Beach
Putt Putt Golf: Play golf in one of the three unbelievably themed 18 Hole Courses with themes like the Jungle Trail, Waterways Cove or the Fun Run. Navigate through bizarre animals, conquer motorised obstacles and cruise along a water filled putting adventure.
Currumbin
Currumbin Wildlife Sanctuary: More than 1,400 native Australian animals on display here in a natural bush land and rainforest landscape. The Sanctuary offers a world of discovery through enthralling wildlife shows, night safari and an interactive science activity zone.

Shopping in Gold Coast

Offering a shopping experience like no other, the Gold Coast has a range of options from department stores and discount traders to boutiques and specialty shops, markets and also duty free stores.

For cheap souvenirs and t-shirts go to Cavill Mall and its surrounding areas. Dozens of stores in and around Surfers Paradise cater solely to the tourist crowd and you could end up picking up sheepskins, Australian opals, wool products and even aboriginal “artefacts”.

Out of the numerous shopping centres in Surfers Paradise the popular ones are the Chevron Renaissance and the Centro Shopping Plaza. These places are good for a tourist shopping; however for day to day value items it is better to shop elsewhere.

For a selection of high-end or mid-range boutiques and shops, head to the Orchard Avenue, Elkhorn Avenue and Cavill Avenue in Surfers Paradise. Care should be taken while purchasing in Surfers Paradise as counterfeits are very common. It’s an irony that the real Louis Vuitton boutique is right next to the fake goods shops on Elkhorn Avenue.

Robina Town Centre has a modern shopping mall with eateries and shops that take care of everyone’s needs.

A large selection of shops across all budgets can be found at Harbor Town Center in Biggeria Waters.

The small farmers market across the road is a must visit for its good restaurants and delis.

How to reach Gold Coast

Air – By Plane

The Gold Coast Airport, better known as the Coolangatta Airport, is located in Coolangatta to the south of the city. It is a pretty unique airport as it lies across the Queensland and New South Wales borders; you would always land in one state and arrive in the other.

Though it is a fairly small terminal, it receives around 3.5 million travellers annually. The airport is well connected with major cities in Australia, New Zealand, and Asia. Another thing to keep in mind is that it is NOT a 24 hour airport, so do not plan on staying overnight before an early morning flight.

The Gold Coast Tourist Shuttle runs transit services from the Gold Coast Airport to hotels and theme parks all over Gold Coast. Customer service kiosks are in the located in the international and domestic terminals.

An alternative, especially if using a rented car, is to fly into Brisbane Airport. You have better connectivity from there.

Land – By Train

CityTrain is an electric train service between Brisbane and Nerang, Robina, Coomera and Helensvale. It’s roughly a 70 minutes journey from Brisbane Central to Robina and Nerang.

As the train runs along the coast you can check which station on route is closest to your destination.

Countrylink in New South Wales has trains running from Sydney with bus services at the Casino to Surfers Paradise.

How to get around Gold Coast

Car – Gold Coast is easily accessible by car, and large parking lots at most locations make parking a less harrowing experience. Most car rental services are available here.
Bus – Surfside Buslines, are the main form of public transport here in Gold Coast and they have designated stops on most areas. Buses are available 24 hours a day; the frequency is higher during the day.
Airport Transfers (shuttles) operate ‘point to point’ between Coolangatta Airport and most places along the coast and are a popular substitute to taxis.
Taxi – Taxis are available but expect to wait longer for it on busy nights.
Bike – The Gold Coast Ocean way is a 36km pathway meant for pedestrians and cyclists connecting the Gold Coast Seaway to Point Danger, covering most of the coastline on route.

Top areas in Gold Coast

Surfers Paradise – Surfers Paradise, located on long stretches of golden beaches is where surfers do more than just riding the waves. High rise apartments line the shore, nightclubs, pubs are abundant here. The late night shopping will keep you busy all through. Most Gold Coast hotels, high end and budget, are located around here.

Broadbeach – “Broadie” as called by the locals, it is a quieter version of Surfers Paradise. It is known for its gorgeous beaches dotted by lazy parks and bustling weekend markets. It is the second busiest tourist suburb and is home to casinos, shopping centres and many eateries.

Mount Tamborine – Located in the peaceful and scenic hinterland and at just an hour from Gold Coast, it is a tropical rainforest, populated with unique, vibrant and colourful, exotic birds. Many interesting types of flora and fauna can also be found here. It is also known for its serene calm atmosphere.

Main Beach – High-rises and resorts dot this upmarket suburb. Located at the northern end of the Gold Coast, Main Beach is called so as it was the main surf beach at Southport. Its open shore break makes it very popular with Surfers.

Burleigh Heads – Home to tall aromatic pine trees, this parkland has plenty of places where you can picnic or have a barbecue. You would also find arts and crafts markets here, where you can haggle your way to a good deal. You can find good mid-range accommodation here.

Coolangatta – This is one of the twin cities located on the border between New South Wales and Queensland. The surf here is outstanding, particularly off the northern corner of Coolangatta Beach. Snapper Rocks and Duranbah are world-class surf breaks that are located here. You also have a few mid-range accommodation options here.

Mermaid Beach – This is simply a serene laid-back spot. There’s an extensive mixture of dining options here ranging from modern Australian to a lot of Pan Asian culinary options. While there are plenty of cheap accommodation options here, from apartments to caravan parks, do not forget to check out the flashy and flamboyant ‘millionaire’s row.

Miami – A small beach town located south of Surfers Paradise, Miami has a beautiful stretch of golden sands that is perfect for families.

Thank You!

Introduction

In recent years, U.S. hotels have been expanding their brand into the global market. Just forty years ago, the idea of ‘global enterprise’ in the industry was ludicrous. However, with new markets opening and expanding in other countries, the U.S. lodging industry has seized the opportunity and has already begun expansion into the international market. Currently, the U.S. lacks any further growth prospects partially as a result of the suffering U.S. economy and as prospects grow internationally, it is the perfect time to seize the moment.

Purpose ofthe Study

How will a lodging brand grow when the growth opportunities are limited in its home market? The literature review will describe step by step the procedures and measures taken into account when hotel companies expand internationally. This perspective will aid the reader in understanding with greater clarity how the U.S. hotel industry’s international market flourished to become what it is today and the future that lies ahead.

The International Environment

The globalization of the hospitality and tourism industry has accelerated under the pressures of advances in technology, communication and transportation as well as the deregulation of the industry and the elimination of political barriers. In addition, global economic development, and the growing competition in a global economy. Environmental scanning is defined by Byars as “the systematic methods used by an organization to monitor and forecast those forces that are external to and not under the direct control of the organization or its industry.” It is a systematic process to collect information, interpret trends and events, and provide possible courses of action for the hospitality firm. The general or external environment consists of many forces that exist outside the boundary of the organization. These forces are sociocultural, economic, technological, political, and ecological.

The sociocultural dimension helps to define the attributes of society and aid the hospitality manager in interpreting how his/her business will be affected by social and cultural changes. Demographics (age structure, sex, race, education, language, income levels), culture (family, reference groups, feeling and reaction shaped by social class, and learned patterns of behavior), psychographics (interests, habits, opinions, and personality characteristics), social factors (relationships, attitudes, values, opinions and beliefs), education, and nationalism are several factors which are included in the sociocultural dimension.

When scanning the economic environment, factors such as the gross national product (GNP), income distribution, foreign exchange rate, monetary and fiscal policies, financial and investment markets, taxation and tariffs, trade/industrial factors, and labor markets must be considered. “With the lifting of regulatory restrictions by many industrialized countries, the financial markets of previously separate national capital markets are now integrated into a global financial market. As a result, many capital-rich multi-national companies in all industries have taken advantage of interest and exchange rates and expanded through mergers and acquisitions globally.” (Zhao & Merna 14) Global economic policies and developments play a critical role in the hospitality and tourism industry.

Technology is the utilization of available knowledge and techniques to produce products and services. The industry’s demands for new technologies are focused on the attainment of convenience, speed, efficiency, control, and the ability to meet labor shortages. It must recognize technological advancements such as communication, transportation, safety/security, food/nutrition, equipment, and computers. “In the hotel industry, high-tech hotel equipment has been grouped into two categories: (1) systems to maximize profits; and (2) systems to maximize guest service. (Zhao & Merna 18) It is extremely important for the hospitality manager to realize the level of technology and technological capabilities within the host country in order to assess the advantages or disadvantages the hotel may face.

The political environment includes political systems, regulations, laws, and political stability and risks within a country. Political stability is not inherent with a specific type of government or degree of economic development, or with capitalism or communism, and therefore the awareness of a host country’s internal and external political environment is necessary in environmental scanning. A wide range of barriers exists that can limit worldwide travel. Restrictions on visas, administrative delays in obtaining licenses to begin building work or the management of hotels by foreign hotel companies, and discrimination in favor of national businesses are examples of such barriers. However, government incentives can encourage many corporations involved in the tourism business to extend their activities to encompass recently industrialized countries.

Scanning and evaluation of ecological issues will assist the manager in assessing individual responsibility for and liability to environmental damage, in integrating environmental affairs with operations, and in developing policies and professionals to manage environmental issues.

Location, Location, Location

Choosing where to develop is very important and political stability is always the primary concern. Developers typically us a four step process to determine the opportunities of expanding in a foreign country. In order to analyze the business environment, it requires a very detailed study of the political, economic, social, and cultural aspects of the desired country. Similar culture and language between the U.S. and other foreign countries make things easier when planning, developing, managing, and controlling the foreign hotels. Also, the physical proximity of the hotels and areas of prospective guests is another important condition. If the distance is far, then the hotel company must take into account the forms of transportation in the surrounding area of business. Prospective developers need to take into consideration the attitude of the target country toward tourism and international hotel companies. Some areas see tourism as an intrusion upon their country. Therefore, understanding the people in the target country before expanding is very important. After considering the question of political stability, market potential is for owners the next most important question to look into. Basically, the higher the market potential, the more willing a developer will be to support the project from start to finish. Market analysis consists of identifying the different markets, analyzing present and anticipated market conditions, and estimating occupancy rate and potentials. The third step in this four part process is forecasting sales to determine the economic viability of the project. Factors which affect the forecast are the market trends, number of hotels competing in the same group, the strength of competitors, potential market share, seasonality, anticipated ADR and occupancy, and planned sales and marketing strategies. The last step in the process is assessing profitability of entering the foreign market against the risks which may be involved. Political stability and government requirements can be a few of the factors which incur risk.

With the realization that a strong overseas presence helped domestic hotel properties gain a fraction of the foreign travel market, the U.S. began looking into the expansion of its hotels. The prediction around 1970 was that the Asia – Pacific region would be the fastest growing economic area influenced by the “exotic locales, shopping opportunities, and beautiful beaches in many areas, in addition to the region’s flourishing commercial centers and expanding markets, made it a natural for visitors from all over the world. Nearly every hotel chain of stature pursued development in the area.” (Gee 34) Today, hotel expansion is geared towards Asian countries such as China and India.

Lodging Brand Expansion into India

Two engines are driving hotel construction in India: the country’s surging economy and the country’s great lacking number of hotel rooms. “Nearly half of the new projects are luxury hotels which account for about $1.58 billion in investment.” (Hayward 31) Also, major events such as the Commonwealth Games in 2010 and the Cricket World Cup in 2011 will add to the already high demand for hotel rooms. Most hotels are developing in cities such as Mumbai, Bangalore, Kolkata, Delhi, and Chandigarh. Large hotel chains are seeking to capitalize on the undersupplied markets where demand has pushed room rates dramatically higher in the past year. “In Bangalore, for example, are some of the highest in the world, due to the dearth of supply and a sharp influx of travelers. Smith Travel Research pegs year-over-year rate increases in Central, South, and Southeast Asia at more than twenty-five percent.” (Business Travel News) With the hotel growth spurt coming to India, Hilton and Marriott have recognized that the middle class is approaching three hundred million people. As India continues to prosper, the middle class is certain to become even bigger. “Layer on top of that the fact that only thirty seven percent of hotels worldwide are branded, and the incentive for the big chains is clear.” (National Real Estate Investor) Hilton’s principal role will be to manage its properties. The hotels will mostly be a mixture of the Hilton Garden Inn brand geared toward business travelers. Hilton’s overseas expansion will help a greater number of potential guests around the world become familiar with the Hilton brands, benefiting owners of U.S. Hilton hotels when international travelers visit the United States. Marriott plans on focusing on the expansion of its Courtyard brand for the large middle class population in India. However, there are some difficulties facing India’s domestic market, the main problem being space shortage. “The infrastructure in India has always been its bane. The country’s ability to deliver a regular water supply is often tested, and water tankers regularly ship in water when the taps run dry. Power cuts in most metropolitan cities of India are a daily occurrence. The hotel industry is also posed with these hurdles on an ongoing basis.” (Mathews 2)

Lodging Brand Expansion into China

The Asia-Pacific region which is an area that is growing rapidly in terms of inbound and outbound tourism is attractive to many leading U.S. and European hotel groups. These markets provide great opportunities for hotel expansion that have not gone unnoticed. “In 2002 alone, more than forty hotels opened under the brands of just the following four global hotel groups: Accor, Marriott, Six Continents, and Starwood.” (Jogaratnam & Tse 4) Even with all this development, opportunity still exists in many Asian markets. Hong Kong, Malaysia, China, and Singapore are now home to major international and regional hotel brands (i.e. Hilton, Hyatt, Marriott, Mandarin Oriental, Peninsula, and Shangri-La). “Demand for hotel accommodation in Singapore is so strong that the Singapore Government has announced a number of new sites for hotel development, equating to approximately an additional 6,000 new rooms.” (Asia Pulse) “InterContinental Hotels Group, one of the world’s largest hotel companies in terms of room numbers, announced yesterday it will launch a franchising business model for its Holiday Inn Express hotels in China to help expand its local portfolio more quickly.” (Shanghai Daily)

“We plan to increase our China presence to a total of 125 hotels covering four of IHG’s brands by 2008, with the Holiday Inn Express brand contributing a significant part,” said Kieron Ritchard, vice president for IHG’s China strategy. (Shanghai Daily)

It is seen that Intercontinental is taking advantage of these opportunities to expand its hotels disregarding the current status of the economy and not letting it influence expansion into Asian countries entirely. Also, the Beijing Olympics has been a tremendous impact on creating a blossoming and lucrative tourism industry. “China’s booming economy and this year’s Olympics, to be held in Beijing, have made immediate contributions to the activity, and the Shanghai World Expo, to be held in 2010 also factors in.” (Gilligan 1) There is an enormous amount of business and leisure travel activities, and with this growth comes the construction of new hotels. “A lot of hotels are looking for international brand affiliation. When you have a Western brand in the front of the hotel, you have credibility immediately for that hotel.” (Taulane 46)

Maintaining the Brand Image

“Expansion-minded chains have three conventional choices: (1) expand existing markets at home, (2) create new products to fill market niches, or (3) develop new markets abroad. The most progressive hotel chains have adopted all three strategies at various times, alternatively or concurrently.” (Gee 167). The more locations a chain has, the more loyalty and familiarity it can build among existing and future customers. With the brand name abroad in other countries, it offers a type of reassurance for travelers looking for reliable hotel services and to first-time tourists who are seeking comfort in a foreign atmosphere. However, since tourists are continually searching for new experiences, new places, and new accommodations, creating a sense of loyalty to a particular brand name is difficult. Therefore, to maintain client loyalty to a particular brand, “the following factors must be taken into account: (1) each brand must be defined so as to conform to certain specifications that must be adapted to the chosen market segment; (2) each brand must be created to conform to consistent quality standards, so as to attract different market segments; (3) each brand’s image must be used in a consistent way by all the chain’s hotels.” (Cunill 150) Currently, Marriott International is looking to global markets with its new Edition brand, an upscale boutique chain being created in partnership with Ian Schrager. But the company is also looking to some of its other upscale brands, such as Renaissance, Ritz-Carlton and J.W. Marriott, to grow its global presence. With development taking place throughout the globe, maintaining consistency within each brand has become a major priority for franchise companies. “As such, Hilton recognizes the need to align itself with partners with a proven track record and to closely monitor its properties worldwide. The need to maintain brand standards while accounting for the differences that each market presents is a key for successful expansion into new international markets. “Consistency of the brand is more difficult in a down time because people don’t have as much capital to invest,” said Goldman. “As a truly global company, we have the challenge and opportunity to create a guest experience that is consistent around the world, but still caters to the specific needs of a given market” added Turner.” (Nessler 1)

According to Dr. James F. Downey, Professor of Hospitality Management at Lynn University, there are five important factors which have the greatest effect and are extremely important before taking into account the idea of expansion. The first of these five factors is the commercial leasing vacancy rates. If commercial leasing vacancy rates are low, businesses occupy more real estate property, which contribute to the commercial business traveler’s need for hotel accommodations. “Similarly, when rates on the second factor — unemployment rates — are low, businesses are at labor capacity, thereby again contributing to the need for these businesses to accommodate their employees. Airline, rail, cruise, limousine and other transportation growth also contribute to lodging demand, if their rates are high. Likewise, increases in retail, eating and drinking sales have positive effects on stimulating room demand since they are all tied together.” (www.resorttrades.com). One of the most critical points one needs to remember about expansion is timing. Timing of an expansion can be related to a corporate timetable, international business trends, or the availability of the right opportunity. Either way, the company should gauge which domestic strategies should be directly transferred to foreign markets, which ones should be modified for export, and which strategies should just be eliminated in order to be successful.

Lodging Structure

Structurally, hotel companies involved in the international hotel industry usually are categorized in three possible ways.

“Corporate hotel chains – hotel organizations that have their own brand or brands which may be managed by the corporate chain or by a conglomerate.
Voluntary associations – independently owned and operated hotels that join together primarily for marketing reasons.
Conglomerates – companies that manage corporate brands or independent unbranded hotels.” (Gee 176)

Out of the three, conglomerates are the ones making the most impact on the international hotel industry through merger and acquisition. Usually the owners of one company merge with another company to reduce competition, to increase the company’s efficiency and profitability, to improve stability of results, and to find an outlet for surplus funds and/or an outlet for investment when a good opportunity arises. In return, executives allow their companies to be taken over in order to increase their growth capacity through the addition of new resources, increased efficiency, and a raised value of shares.

Seven Theories on Mergers or Acquisitions

There are seven different theories which are used to achieve different objectives with a merger and acquisition. With the efficiency theory, acquisitions and mergers are carried out to obtain financial, operational, and managerial synergies. “Although financial reasons have been most commonly used as a justification, thereby generating the greatest number of theoretical and empirical studies, they may not be the main reason behind mergers and acquisitions.” (Cunill 76) Through the monopoly theory, mergers and acquisitions are carried out to improve companies’ competitiveness. Horizontal mergers can reduce market competition, whereas vertical mergers and those that lead to conglomerates can create situations in which competition is restricted. With the raider theory, either no negotiation has taken place between the companies involved or, if there had been any, it led nowhere. According to the valuation theory, acquisitions and mergers are carried out by executives who have access to more accurate information on the real value of the company to be taken over that that can be found from the investment market. The empire-building theory is based on the idea that managers have only one aim in mind which is to maximize their use. This will increase as the firm achieves greater market power. The least developed theory would be the process theory. It attempts to justify acquisitions and mergers by attributing them to the limited rationale of management teams that make this decision. The last theory is the economic disturbance theory. This theory upholds the idea that acquisitions and mergers succeed each other in waves. Caused by economic disturbances, it modifies the individual behavior patterns and expectations.

Franchise Agreements

The cost-benefit relationship of management contracts and franchise agreements are studied thoroughly before hotel owners choose an affiliation. “The franchise contract includes at a minimum (1) the use of a shared name and common layout, design, and presentation for the premises where the franchisees run their businesses; (2) shared know-how; and (3) ongoing technical and commercial support, given to the franchisees by the franchiser.” (Cunill 111) With a hotel franchise contract, the franchisee operates under the same brand image and with the same methods as its parent hotel chain, the franchiser. A franchise contract is usually active for a period of twenty to thirty years for a fixed annual amount. Employees from the franchising company carry out regular inspections to check for full compliance with its corporate regulations and with the production process. Noncompliance with either aspect is considered a breach of contract to be alleged, on the grounds that the hotel may discredit the franchiser. Franchise contracts are designed to benefit the franchiser. They offer initial assistance to franchisees; hotel franchisers also offer a system of finance for the business and consultancy in the design and construction of hotels. They also offer booking services, public relations assistance, quality control programs, publicity campaigns, and marketing programs to help their franchisees. However, certain franchising fees do apply. These fees include an initial fee (a fixed sum per room which covers the cost of an analysis of the existing or potential hotel and expenses incurred prior to the hotel’s inauguration), a yearly fee (usually a percentage of the gross room revenue in exchange for the use of brand names, logos, and graphic material), a marketing fee (based on a percentage of the gross room revenue), a reservation fee (a fixed amount for each booking made), and other variable fees to cover different backup services. A master franchise program is well-suited for international development since the person responsible for development and support of the brand in the designated territory. “Typically there is a large, nonrefundable development fee, often adding a substantial immediate boost to the franchisor’s revenue, with the potential for a steady stream of royalties without substantial on-going obligations.” (Fitzgerald & Schott 17) It is more knowledgeable, experienced and connected in the culture and business of the designated territory. However some challenges which come along with the master franchise program. It can be a significant disadvantage due to the franchisor’s substantial loss of control over the system resulting from the transfer of responsibility. Another challenge is the difficulty in enforcing system standards. This is because “…delegation of virtually all operational responsibility to the master franchisee. The franchisor will also have to anticipate and plan for its response to a master franchisee’s failure to meet its development schedule.” (Fitzgerald & Schott 17)

Management Contracts

“A business management contract can be defined as a contract under the terms of which a company agrees to manage another one, on behalf of and at the risk of the latter, in exchange for financial remuneration. (Cunill 127) The owner does not make any operational decisions but holds the responsibility to supply the necessary capital and to meet the payment of expenses and debts. The management company receives a fee for its services and the owner receives the remaining profits after all the costs have been deducted. Management contracts for hotels are long term, covering periods of up to twenty-five or thirty years. The long periods are sufficient to cover the length of the loan taken out by the developer. Management contracts must be designed to suit each individual situation, with special attention to the agreement fees. The contract has to cover matters such as the provision of capital by the management company, the budget and expense limits, accountancy and financial conditions, the length of the contract, a possible renewal clause, the conditions for the cancellation of the contract, services to be provided by the management company, and the minimum annual amount to be spent on advertising, maintenance, replacement furnishings, equipment, and other related items. The contracts should also clearly state that it is an agreement between an owner and a hired manager, not a leasing contract.

Management Contracts and Franchise Agreements for International Hotels

Certain international hotel chains prefer management contracts while others prefer franchising. “Holiday Inn and Ramada engage in more franchising, while Inter-Continental, Westin, Hyatt, Hilton, Sheraton, and Four Seasons prefer management contracts; these latter companies are philosophically opposed to selling the use of their names without having day-to-day management control. Historically, franchising has been more prevalent in the middle and lower tiers of the hotel industry.” (Gee 229) This is because hotels in this segment can be run by an owner/operator. “For Asian owners who have been more involved in operations than their Western counterparts, greater control typically means shorter management contracts. Fearful that the owners may be looking for nothing more than technology transfer (and, perhaps, to hire away a few executives), many operators are making contract duration a top priority in negotiations, preferring to make concessions elsewhere.” (The Cornell Hotel and Restaurant Administration Quarterly 20) The greatest degree of control for the owner over a brand affiliated hotel would be franchising. Because of this, Asian owners have become interested in these franchise-type management contracts.

Multi-Unit Franchising

For many franchisors, multi-unit franchising may be the next logical step in the expansion of their system. Before heading for the multi-unit path, franchisors must conduct the internal and external due diligence necessary to analyze whether or not multi-unit franchising makes economic and business sense for their system. “The franchisor should focus on where its system is in its evolutionary process, what goals multi-unit franchising will help satisfy, whether there are unique aspects of its system or industry that may impact its multi-unit development plans, and whether it has the resources and infrastructure to support its plans.” (Fitzgerald & Schott 18) However, instead of using multi-unit franchising as part of a comprehensive plan, franchisors use it in reaction to enthusiastic inquires from prospective franchisees. “More than likely, all U.S. franchisors who have been around for any length of time have been approached by foreign prospects who, for a large up-front fee, want to acquire the development rights for a particular county or countries.” (Fitzgerald & Schott 18) Although tempting, the franchisor should conduct a thorough analysis. Franchisors should set minimum development schedules that are reasonable. To help ensure that development schedules are reasonable, franchisors should conduct meaningful due diligence and get in-depth business plans from prospective franchisees. “…However it may still be difficult to determine what is “reasonable”. Accordingly, a franchisor may want to consider dividing the development period into intervals and negotiating in good faith a separate development schedule for each interval. Franchisors may also want to consider imposing minimum performance standards as a condition to the development of additional units.” (Fitzgerald & Schott 18)

Labor Strategy in International Hotel Management

“Hilton Hotel Corp. has increasingly derived a greater share of revenues from managing and franchising hotels than it has from owning them. The company owns about sixty of the two thousand eight hundred hotels it manages…” (Gilligan 4) Owning properties means that Hilton is better able to monitor talent and promote deserving employees; it gives people the opportunity to build careers. “With any growth come growing pains, and in China’s ever changing market, a definite problem that has emerged is a shortage of skilled workers – from front line staff to experienced management positions. The explosion of new properties compounded by an influx of internationally based companies from other industries caused the demand for skilled, multilingual employees to surge.” (Taulane 48) Wanting to keep certain people while at the same time needing a peripheral workforce presents management with a complicated motivational obligation – managers have to get the best out of people with loose job tenure. Training and growing your own skilled people can be expensive, but leaving it to the labor market runs the risk of market dysfunction. “In the case of labor strategy, we are thinking about people, skills, motivation, knowledge, how work should be organized, control, and authority. These are the bricks that make up any organization.” (Riley & Jones 301) There are seven dimensions of the organization: stability, occupational value differential, training capacity, rewards, knowledge base, intergroup relations, and morale. For international hotel companies, the common policy is to allow ‘local conditions’ to predominate because of labor laws. Managers must carefully question each of the dimensions of the organization when reviewing strategy. A policy manual lays down policies and procedures. One problem which all hotel companies share is the cost of developing employees to become supervisors and managers. Employees are valued in their early employment for their technical skills rather than for managerial skills. “A common problem in the development of hotel managers is that they often see their self-identity in the original technological terms. This is a barrier.” (Riley & Jones 310) The role of the strategy is to ensure that career management knows the career path and to ensure helping people grow on their career path. “The international dimension adds further problems. There are three problems. The first is that management has a different value and style in different cultures. Second, rates of learning vary from country to country. What is unskilled work in some countries can be regarded as skilled in another. Third, the culture of international hotels is basically Western European, so training takes on the additional burden of culture transfer as well as teaching skills and knowledge.” (Riley & Jones 310) Therefore, when developing a labor strategy, forethought, questions, and a vision are required.

Future Predictions of Lodging Brand Growth

While many of the big hotel companies have until now built significant presences in major foreign capitals and other cities through large, center-city hotels, they are now growing globally by introducing their middle-market and extended-stay brands in countries that deeply lack such lodging product, such as China and India. However, there are two countries that maybe turn into hotel-development hot spots in the future too. “Vietnam is becoming a low-cost manufacturing alternative to China, which should continue to strengthen the economy there, said Patrick Ford, president of Lodging Econometrics Inc. And casino-hotel development in Singapore is increasing as the island nation strives to compete with Macau.” (Gilligan 2) Las Vegas Sands Corp. is currently building The Marina Bay Sands, a casino/gambling resort, in Singapore because it is a tourist destination, a financial center, and a meetings location.

Findings and Limitations

The major studies in the subject mostly concern the development of hotels internationally. Much scholarly research is concentrated on China and India as these currently are the two major areas where the growth and development of the hotel industry is readily apparent. The economies in these countries have vastly expanded in the past few decades as they industrialized. With their modernity consisting of rapid transit, luxury restaurants, high-class shopping, entrepreneur opportunities and other attractions, there has been a huge influx of tourists and business travelers. This inevita

We are living in the year 2010, the era of globalization, a phenomenon that is eliminating all cultural, economical and political borders between the countries and even the continents. Especially the economic situation is affected by this phenomenon. The financial integration, the intercontinental investments and the global companies are reasons that make the economies of the entire world related and dependent to each other.

Since late 2007 the world is facing a very hard economic crisis, which is considered to be the greatest economic breakdown since the Great Depression. Thanks to globalization this financial break down is spread all over the world and is affecting all areas of life. A particular sector that is affected by this economical crisis is tourism as an integrated part of the global economy related to other industries directly and indirectly. The tourism industry is based on the number of travelers and on the expenses that they do for it. With the economic crises people didn’t stop traveling, but they just changed the way they think about it. They don’t look anymore for luxury and for expensive places, instead they prefer cheaper ones because their incomes have decreased. Even those who can’t effort to travel abroad, travel within their own countries. As a result of this, tourism is affected, and since the economic situation has decreased, its effect on tourism is negative.

Another important factor that influences tourism is the financial stability of a country. With the global crises the market is getting more and more insecure, so people try to save more rather than invest. So, tourism will be affected by this attitude of the “tourists”.

All economies, developed, emerging and under developed ones are having serious tourism problems because of this crises. The most affected ones, who were the first to experience the effects of the global financial crises, where those countries which were fully integrated to the world economy. The other countries even though weren’t directly affected by the beginning of this global financial breakdown, now they are dealing with the effects of these crises. Why did developed countries feel the economical crises before the developing countries?

The first countries to be victims of this crisis were the developed ones as USA and the Western Europe where the crises began and have its roots. As a result of this their tourism sector was the first to experience the bad effects of the crises. Tourism is divided in inbound, outbound and domestic tourism. Since the economies of these countries deteriorated rapidly due to these crises, there was an economical downturn in the financial sector, the real estate market and everything else was suffering the consequences. The business was going down and down, a lot of banks and big companies broke down, these lead to a lower number of business tourism and to a lower number of other kinds of inbound and domestic tourism as well.

On the other hand also the other countries were having the same financial problems so the number of travelers from abroad was diminished as well leading to a lower outbound tourism. As a result the overall tourism situation was deteriorated. Since tourism and the economies of a country are closely related and have effects on each other, there was a double effect in the economies. From one side the economical break down caused a lower number of tourists, so to a lower level of incomes from the tourism industry, and on the other hand the deteriorating situation of tourism aggravated more the economic situation of many countries.

An important factor that affected the tourism situation for many countries was their dependence in the developed countries economies. A very good example for this is The Bahamas. About 80% of the visitors and tourists in The Bahamas are from the United States (U.S. Economic Crisis Will Affect Tourism). So, when the number of tourists from US decreased due to the economical problems that US was dealing with, a good portion of the tourism industry was affected, and it was seen a deceleration in the arrival growth in The Bahamas, since the most important part of the tourists was dramatically diminished. Although there are some new constructing tourism plans, according to Mr. Cunningham these project implementation in The Bahamas have been slowed down due to the crises.

Another example for this is Hawaii, whose tourism is also linked to the market of USA. Hawaii is facing a recession due to the financial crises and as a state which relies mostly in tourism, this industry is the most affected one and its effects are directly influencing the overall economy of the country. Lately it is trying different strategies on how to handle with these problems and to raise the island tourism in higher levels, even though it is not expecting to reach its peak level of 2006 of over 7 million visitors till 2012. (The Economist. London: Jan 2, 2010, Pg. 23). A good stimulus was the holidays that the President Barack OBAMA had in Hawaii that is being used as a way to attract tourists, but since holidays in this beautiful island are expensive, with the lowing of the financial incomes, people tend to give up the luxury and expensive things and to focus on cheaper attractive places. Even Hawaii is trying to lower the costs of hotels and even to give free nights, but according to some studies this has taken the revenues of the government and of the hotel chains. (The Economist. London: Jan 2, 2010, pg. 23). According to this article the economy of Hawaii will not improve till the economies of its main markets, as it is USA and Japan become more stable and are reinforced.

As we can see from these two examples, even though The Bahamas and Hawaii, were not directly related and involved to the economic global crises, they still were greatly affected from it due to the dependence that their economy has with other economies and due to their integration to the global economic system.

There are some other countries, which have emerging economies and they didn’t have to handle with the economic crises for a short period. So the process of the crises in these countries started late and had slightly less effects than in the other countries. Since these economies develop more slowly, even the effects of big changes will act slowly. Another reason for this is the low integration to the global economy and the low exposure to the international market. A very good example of this case is Bhutan in South Asia. According to the data report “Impact of Global Financial and Economic crises: Bhutan’s case” by Mr. Phuspalal Chhetri, Bhutan did not experienced a strong impact of the crises, because it is one of the countries that is not fully integrated to the world economy. Being so, it is affected from the global changes after all the other related economies. Another basic reason for this is the financial and integration situation of the main countries in which the Bhutanese economy relies. The Indian market, which is the main country in which Bhutan exports its inflows, is also an emerging country not fully globalised. This made these two countries to have the same life cycle of the crises and so they “helped” each other at the beginning of the crises to handle it pretty well. Although they didn’t directly feel the beginning of this economic downturn, it is sure that they are going to deal with this very soon.

Another example for this is the case of Dubai, which didn’t really feel the crises till lately when he is having a lot of tourism problems like every other country. Dubai was one of the most expensive countries for tourism, it has luxurious seven-star hotels and air conditioned beaches. The economical downturn is making the region suffer the consequences of the global situation and so having a decreased number of tourists. But, since Dubai has a lot of opportunities and a lot of investments which are being used to face this financial crisis, the prognosis for the long term situation is good for this country. This is not only about the tourism resources but also because the state has the economical potential to face the problems because it still has 95% of the reserves and half of the entire Emirates GDP that can be used in the worst situations. (What future for Dubai?)

Some economies even though are deep merged in the global financial crises, are still managing well the tourism industry and are having high levels of it. According to a report about the National Observer of Tourism in Italia, this country tourism is reacting well to the crises comparing it to the other economical factors. Italia has taken some measures to fight the crises and also helped by the nature, because of the beautiful mountains in the winter, the beautiful beaches in the summer and also because of the promotional campaigns for tourist attraction, has maintained to a good level the tourist’s rates. In this way we gave an example on how different politic decisions and a good management of the situation can give better results for the tourism and the overall economy even though the economical crises is deep.

As a conclusion we can say that tourism and the economic global crises are closely related to each other. It is inevitable for every country to have to deal with the effects of the crises, independently if they are related directly or indirectly to it. The tourism industry, as an important sector of every economy cannot be left outside of the current global economic situation. But, even though the number of tourists and visitors will decrease, tourism won’t stop, because people for different reasons will need to travel, if not for pleasure, then for work or different purposes. The only difference is the way they will spend their money. If before the economic crises they could have planned to have luxury holidays than, after the economic crises they will probably prefer cheaper ones, and they will probably prefer domestic tourism instead of going abroad. Economy and tourism are closely related to each other and they cannot change without affecting each other. Different countries are dealing in different ways with the economic crises, some have faced it the first and some others felt it later, but all of them are trying to come out of this economical crises and stimulating tourism industry since it can be very beneficial.