Category: Free Essays

British Museum is one of the largest and most comprehensive museums in the world which was found in 1753 in London. The collections exhibited there were collected all over the world from the origins of human being to present day. By visiting those fantastic objects, people will experience a historical and cultural journey. As the mission cited below from the museum website, British Museum is more than a non-profit making institution, it is a great treasure belongs to all mankind.

The Aim of the British Museum (“the Museum”) is to hold for the benefit and education of humanity a collection representative of world cultures (“the Collection”), and ensure that the Collection is housed in safety, conserved, curated, researched and exhibited1.

——-British Museum Governance Policies and Principles

London Zoo is also a famous attraction in London opened to public since 1828 which is two years after since The Zoological Society of London has been found. Over 720 different species of animal exhibited here, it is a place not just for visiting, it is a playground in which you can interact with animals and get better known of their living.

The main purpose of this essay is to find out the similarity and difference of operation methods between two organizations. Therefore, the operation procedure of British Museum will be illustrated at first, which will be generally indentified through several aspects, such as layout and 4Vs. Afterwards, the necessary comparison and contrast will be analysed between British Museum and the given case London Zoo. And some recommendations will be given in the end.

Facilities of British Museum

In order to study the operation system in British Museum, the facilities used in the Museum will be illustrated in the following. Furthermore, the analysis will be taken specifically and try to find out the deficiency it needs to improve.

2.1 Operations management in not-for-profit organization

As the obligation mentioned in introduction, British Museum is a trust funding organization which is free to the public, so generally speaking it is a non-profit making organization. However, the Museum makes the profit in some certain ways, such as recruiting the members and selling the souvenirs in the shop. To make it simple and clear, in the following research, British Museum will only be considered as an organization which only provides service to satisfy people by creating a good atmosphere and to promote its reputation all over the world.

Layout and flow style

With 8 million objects housed in British Museum, the layout would be a little complex. After several expansions over the centuries, it went through the changes from a normal mansion in the past to today’s 75,000 m2 scale, which equals to nine football pitches.

British Museum has three floors, which are lower floor, ground floor and upper floor. For my observation, the main visiting area is ground and upper floors.

Ground floor

Ground floor has four levels from level-1 to level 2. (see figure1)

When entering the building from the main entrance, two small desks stand beside the passageway which only offers the free maps. Except for the securities, no staff can be found there. After gathering the map, I walk into the great court, and a large information desk at the right side of court, some staffs are working there for any requires. In addition, there is a special service provided here which is a multimedia guide (audio descriptions) can provide eleven different languages, by doing this the cost of staff is much reduced and the quality of service is increased.

At this level ( level 0), there is a reading room opened for special exhibitions in the centre of great court and several shops and cafes opened in the corner of great court. And other facilities such as toilets for man, woman, disabled and a baby changing room are on the two sides of great court.

Around the great court, more than thirty galleries are opened to the public on the three sides of the ground floor. On level -1,1,2, there are also some galleries opened. And both lifts and stairs are available between different levels. Visitors can choose any sequence of visit, clockwise, counter clockwise or random.

Figure 1

Lower floor

On this floor, there is less worth to visit on this floor, which only contains three galleries and two educational centres organized by enterprises ( see figure 2). Very few visitors reach this floor.

Figure 2

Upper floor

The galleries on this floor were arranged on the four sides of court (see figure 3). And the amount of rooms are more or less the same as ground floor, which include five themes, Ancient Egypt on the north side of level 3, Ancient Greece and Rome on the west side, Japan culture on the north side of level 5, Europe on the south side and Middle East on the right side.

Figure 3

Furthermore, as more and more precious objects will exhibit in the museum, the display is very important for the operation management in British Museum. They even formed a policy of display to process the layout and flow aimed to ensure all kinds of demand from customers and to make them satisfied.

Transformation process model
Input to the process

In the operation process, there are two sets of inputs, one is transformed resources which are always transmuted, and the other set is transforming resources which made transformed resources (Slack el al., 2004). Applied to the operation of British Museum, transformed resource will be the customers, and transforming resource is the staff, also includes all the collections.

To improve the operation performance, the museum needs to explore new collections, but more importantly, it should train the staff to enhance their professional skills in two ways, the exhibitions maintenance and customers service.

Within the process

In the process, Slack el al. (2004) point out that different inputs transformed can be determining different types of process. Here the types of process will be divided into three categories; respectively they are materials process which is to transform the physical products, information processing which concerned with informational properties and customer processing which means customers are considered as major input throughout the whole process.

As the above clarification, it is obvious that the British Museum belongs to customer processing, because at the beginning of transformation, each customer is fresh without any experience to the museum, but when tour ends, the physiological state of customers are equipped with basic knowledge and feeling about what they visited.

Outputs from the process

After studying the operation process, it is can be found that very few organizations produced pure product or service, in most of cases, services and products are merging together to enhance their competition in the market.

Generally speaking, the output of British Museum is service, which is intangible and hard to qualify. Some organizations adopted the customer feedback mechanism to qualify the fulfilment of customer’s need. This kind of processing requires a high qualification to satisfied customers’ psychology needs.

Characterizes of process : 4Vs
2.4.1 Analysis of 4Vs between London Zoo and British Museum

After identifying the outputs and inputs of British Museum, the volume, variety, variation and visibility should be analysed. Firstly, as the biggest national tourist attraction in UK, both British Museum and London Zoo have a high volume of visiting. In 2009/2010, 5.7 million people visited the British Museum. And in busy days, the visitors of London reached 4000 to 6000 per day in average. Next, the variety of service in London Zoo and British Museum is relatively high. Although a large amount of exhibitions provided by the two organizations, visitors can choose the touring routines according to their needs and preference. There is no fixed routine. Thirdly, the variation of demand in British Museum is low due to it just experiences a small fluctuation in summer holiday compared with normal days. Conversely, customers demand of London zoo on weekends and special events will spur to 18000 per day while on Christmas Eve only 48 visitors there, so the variation of London Zoo is relatively high. Finally, visibility means customer contact which made by organizations. As the case shown that London zoo has high visibility, in such circumstance, they realise the importance to improve service and to meet customers need. Similarly, British museum usually arrange the short period tours and try to benefit visitor to fulfil their need. However, the contact between staff and visitor is not frequent here.

Table 1.

Organization

Volume

Variety

Variation

Visibility

London Zoo

High

High

Relatively High

High

British Museum

High

High

Low

Medium

2.4.2 The implication of 4Vs of operations

Compared with the ideal dimensions in the four aspects, high volume, low variety, low variation in demand, and low visibility, the operation process of British Museum seems closed to the ideal model and cost less in its operation management. However, the high variation of customers demand requires London Zoo to explore what customers really want from them. And it is the point for London Zoo to keep a sustainable increase.

Pros and Cons of operation process in British Museum
3.1 Pros
3.1.1 Specify and categorize customer demand: Explore the Museum’s highlights

As a huge amount of collections exhibited in the museum, for most visitors, it is impossible to visit all the galleries in such a short period. To give the visitors a worthy visit, the museum selected a few of most valuable objects and created several options according to different length of tour. This is providing an opportunity for visitors to explore the highlight exhibitions, then visitors can plan their own trip by those suggested routine. Thus, the satisfaction of visitors can be largely improved. Meanwhile, it can also avoid the crowd in peak season and shorten the operation process.

The routine suggested currently as below (Visitors can find the information at information desk)

1 hour at the Museum

3 hours at the Museum

Objects to see with children

A history of the world in 100 objects

As the four selected routines designed by British Museum, on one hand visitors will tour the museum with the purpose, the time of visiting is much saved and it also make this touring much clear and effective. On the other hand, it makes the process flow fluent and efficient.

3.2 Cons
3.2.1 Complex layout for the large galleries

Generally, the collections are categorized in related to the nature and history of objects. So in British Museum, the main permanent galleries are Ancient Egypt, Ancient Greece and Rome, Europe, Asia and Middle East, Africa and America. And some large galleries contain two levels. The situation is when you wanted to visit the galleries completely, you have to go upstairs. If you pass through the way-out upstairs, your routine of the whole visiting will be disturbed. Otherwise, you have to go downstairs go on the visit to other galleries. Additionally, for such a layout, visitors are easily getting confused and lost directions, because there is no any sign of direction. During the visiting, I found the division between different themes was not so clear, especially for those big galleries which contain two levels.

3.2.2 Less space on the hot spot area

Another layout problem is that it was a little bit crowed in the popular galleries such as the gallery of ancient Egypt. For my observation on that day, so many people were interested in Egypt Mummy and stopped to take photographs or pay a notice on particular object. In such way, it made the gallery too crowded to visit, and visitors must feel unsatisfied at this moment.

Comparison and contrast between British Museum and London Zoo
4.1 General introduction of case London Zoo

London zoo is one of the most popular animal collections in the world which opened in 1828; the aim of it is to house and display live animals and makes profit. In the past few decades, visitor attendance keeps high although there is a fluctuation because of zoo’s reconstruction and some other public reasons. But by the mid-1950s the visitor numbers began to decline from 2 million year by year, and by 1995/96, the budgeted level was just nine hundred thousand. The main reason is from social-economic changes including changing of living habits, growth in car ownership, leisure preferences and inflation as well as fierce competition. Due to the decrease in visitor attendance and lack of investment in zoo’s developments or its image, urgent action needs to be taken to change the situation. With the support of zoo’s staff, a new development plan was published and adopted in 1992 in order to improve the facilities and the service quality. Relevant surveys also need to be made in advance.

Profit and not-profit

The British Museum can be regarded as a non-profit organization sponsored by the Department for Culture, Media and Sport, but it also has self-generated income through retail, international touring exhibitions, Membership, and fundraising programmes. By contract, London Zoo mainly relies on the financial profit to keep running its daily operation and maintenance and also partly relies on the public fund. To some extent, British Museum is trying to achieving a high reputation worldwide by create the most comfortable environment to visitors, however, London Zoo aims to enhance the quality of service to attract more visitors and increase the income.

Defined the targeted visitors

Both British Museum and London Zoo understand the importance to define their target visitors. Generally, the target customers of British Museum are tourist including individuals, couples and families, some specific researchers as well. After define the customer and their need, the museum provides selected touring options to normal visitors, which is a convenient service to visitors. Same as London Zoo, after specified the visitors, it is important to improve their service by knowing what their particular needs. By categories the visitors and figure out the characters of each group, organization will be easy to improve the service to meet their exact need.

Quality of service

As my observation of British Museum, it is hard to feel the existence of service even they provide the short free tour occasionally. Except for the information desk, you can hardly find any staff for help. Compared to British Museum, London Zoo also suffers from quality problem, due to capacity problem. London Zoo operated badly during peak periods because of lack of staff. As a result, the column ‘contact with staff’ received the lowest score in the investigation. Long queues, delays, lack of contact lead to problems in quality in London Zoo

Conclusion & recommendation

As the study above, although both British museum and London zoo belong to service organizations, the commercial purposes are different. However, they aim to provide the best service to achieve the success in their own business area.

As the big national organizations, even though both London Zoo and British Museum are fully equipped in facilities, there are still some operation problems in service quality and process of layout. For British Museum, in terms of layout, they may provide the visitors more comfortable environment by expanding the space in the hot spot galleries; in the large galleries, the museum can display the collections all in the same level to avoid making visitors confused or lost. While in terms of service, I suggest that the staff may contact with visitors face to face more. For London Zoo, the capacity should be improved through recruiting the temporary staff during peak season. As the survey adopted in the case study, they have to create more contact with visitors and supply more qualified catering to increase the performance.

No matter how big the organization scale is, it still has its strength and weakness. The obligation of management team is keeping optimize the operation process and continuously making profit and get a great reputation in the business area.

British Airways and British Airport Authority managing Heathrow Airport at London, which has four terminals , terminal1, terminal2,terminal3, and terminal 4 built a new terminal 5 in 260 hectare land, with sophisticated and advanced infrastructure designed to handle thirty-five million passengers per year which costed ?4.3 billion with 19 years of hard work involving totally 60,000 individuals. the construction finished its last phase in march 2008 after the 68 trails by 15000 volunteers the terminal 5 was ready for business on march 2008. Her majesty The Queen opened the terminal 5 on March 14th 2008, and was ready for business for passengers on 27th march 2008.

But instead of grand opening the terminal 5 opening went as a disaster, resulting in cancellations of about 38 flights, and misplaced luggage, operational and technical problems. Why this happened? Why the opening day became a disaster? Why it has become as a night mare to passengers?

The following data deals with what actually happened on the opening day and why British airways failed on the day of opening.

MANAGING OPERATIONS: British airways Heathrow airport

INTRODUCTION: British airways

British Airways plc or BA is the UK’s largest international airline in the world, based at Heathrow airport in London and serves about 95 million passengers a year using 441 airports in 86 countries using more than 1000 planes through its own operations and its alliance partners like TAT European airlines in France, Qantas in Australia, and USAir in United states. In last financial year to march 31, 2008 it carried about 33 million passenger worldwide and 805,000 tonnes of cargo, (www.bashares.com) and is considered as one of the world’s longest established airlines.

Heathrow and Gatwick airports are the two main operating bases of British airways. It earned ?9 billion in revenue in the year 2008/2009; passenger traffic accounted for 87.1 percent and 7.5 percent came from cargo and 5.4 percent from other activities.

Heathrow airport which is owned by BAA is 15 miles from central London and is the world’s busiest international travel hub and now operates terminals 1,2,3,4 and terminal 5. When we go back in to little history of this airport it was started officially in 1946 as an army surplus. In 1951 plan was developed to build terminals. In 1955 Heathrow terminal 2 was ready for business a d considered as Heathrow’s first rear terminal. In 1960 construction of terminal 2 took place and was expanded in 1970 and in 1969 terminal 1 was officially opened by queen, in 1976 Heathrow became supersonic being services operated by British airways and air France . In 1986 terminal 4 was opened by prince and princess of Wales which was worth of ?200 million. About ?1milloin a day was spent in developing infrastructure of Heathrow.

On 20th November 2001 the government gave approval to build a 5th terminal (t5) after a longest public enquiry in British planning history. The company aimed to move all its operations to terminal 5. Over the past few years terminal 5 is the largest building project in Europe costing ?4.3 billion to BAA. It was a big challenge to construct such a immense size building. it has a capacity to serve around 30 million passengers per year. The main terminal building has 1,100 piles. There are 5 tunnels serving terminal 5 with a length of 14km. The building has 96 checks in kiosks, a high glass cascade of 40 metre, and the terminal 5 lounge has a space for 2,500 passengers, and has 4,000 car parking spaces. This terminal will be used only by British airways .it took six years to finish the project, within time and within the budget.

INTRODUCTION TO THE PROBLEM:

British airways opened the terminal 5 for business on 27 march 2008, by her majesty the Queen describing it as a 21st century gateway to Britain. The opening ceremony was attended by hundreds of airport authorities and workers.

The BAA and airline British airways who built the terminal for many years forecasted that new facility would give a fresh start for Heathrow and millions of premium passengers. But the Heathrow’s new ?4.3billion terminal 5 suffered a disastrous opening resulting cancellation of flights, long queues and delays in luggage system. British airways was forced to cancel 34 domestic flights, one problem was followed by other problem on the day.

There was a problem to the staff in finding the car park. Then a technical problem has arisen which resulted in some flights departing without luggage on aboard. The first flight of the day coming from Hong Kong arrived eight minutes early and passengers off the building got their luggage quickly. But very soon the baggage reclaim system failed leading the passengers to wait more than two hours to collect their baggage. By lunch time due to continuous problems the British airways cancelled 20 flights in the beginning and later to 34 flights. One of the terminal 5s departure lounge the luggage belt failed. The road signs were not clear outside the terminal. A delay occurred in security screening of staff.

The computers did not recognise the baggage handlers ID’s and the handling system failed to log on because of these three flights took off without luggage.

Live examples: taken from media resources

“Sir George martin a famous producer of the work “Beatles” was one among them said he was first impressed to see terminal5 but it led him to wait many hours and the flight has been cancelled”.

“Mr Matt Duffy who was coming from Glasgow to terminal 5 was struck in the flight for more than one hour”.

“Mr kerb a wheel chair user couldn’t get in to the building without getting up a step, and he added its totally unbelievable”.

These are few examples of the chaos caused by British airways in terminal 5 on its opening day.

Relationship with operational management:

On the operational side there are many errors like little system testing, mechanical failures, technical errors. On the management side there was poor communication, a refusal to listen to the experts and staff, arrogance, complacency, poor training of staff with the new systems.

What went wrong on the day:

Logistics and planning: On the opening day staff arrived to work couldn’t find the car parking, the signs to car parking was unclear, it took long time for the staff to park their car, because of this reason staff arrived very late to work, staff were almost two hours late to work. Even when the staff entered the terminal 5 building there were no clear signs to navigate within the building , union representatives told the workers didint understand where to go,some of the staff couldn’t enter through security gates. Because of the communication problem staff couldn’t navigate within the building , they were given no telephone numbers to contact.

The luggage handlers couldn’t get in to the terminal because of improper training and less knowledge on the building. They were just shown the whole building which cant be remembered because of its massive size and therefore arrived late to work.

Technical and human errors:

The computer system in the terminal didn’t recognise the staff ID’s, so that staff couldn’t log in to the systems. This resulted in making only two desks working instead of 28 desks present. Even when the staff logged the systems displayed error messages showing access denied to logon to do their actual work.

About 17 terminal lifts jammed and failed, because of this passengers faced difficulty in getting in to the stairs of difficulty and disabled customers could not enter in to the building.

The transit system broke down hence failed to move passengers from main terminal to satellite terminal, which led to cancellations of flights.

Doors which should be kept open were locked so that staff and passengers couldn’t be able to navigate in to the building.

The electronic screens, walkways, escalators, and carousels were failed. Due to technical errors they failed to work and staff couldn’t log in to systems and there was no information displayed on the screens.

The baggage handling system failed to work after first flight arrived resulted in baggage misplace. Staff due to lack of training overloaded the belt and it stopped working, because of this reason some flights even left without any luggage.

Low morale and good will: from the sources it is come to know that most of the staff didn’t turn up for training. Because of this reason the baggage handlers and ground staff were unhelpful when the problem occurred. There was not enough staff working on the day to volunteer. BA didn’t recruit an extra staff and just asked the present staff to help on their day offs and without paying them.

Lack of communication and crisis management: there was no proper communication from the BA to passengers this led most of passengers feel frustrated. There were no announcements and no information was seen on monitors and websites. On the very first day by 5:30am about 200 passengers were queued up for information about cancellations. There were about 26 operational desks on that day but only 2desks were seen working.

Results:

As a result within in five days about 250 flights have been cancelled and still there is a backlog of 15000 bags, the bags were sent to USA and Paris to identify the original owners of the baggage.

It disrupted the travel plans of thousands of passengers and British airways were unable to find any hotel rooms to passengers.Even though the hotel rooms were found they gave compensation of only ?100 where the hotel rooms costs ?200, an extra burden to passengers.

About tens of thousands of customers vowed they will never use the airline again, as they faced many difficulties like standing in queues for about two hours for information, the luggage has been misplaced, and no help was available.

The opening of terminal 5 is considered as a most embarrassment for British Airways and British Airport Authority.

Because of this chaos the shares of British Airways felt down by 3% which accounts for about ?9million of the income and lost its reputation.

Discussion of relevant operational theory:

Any success of organisation depends up on people and their perception of success or failure, and staff willingness to anticipate to the vision of organisation as defined by management.

In the same way the failure of an organisation depends up on poor integration of different parts of change for example the implementation is poorly executed even though the build and develop phase goes well. High complex technology infrastructure becomes inaccessible to those who use it regularly.

And the management has to recognise that the success criteria should be broader than bottom line considerations:

The business driver is not only the share holder value but the staff working and customer satisfaction.

Organisations should be socially beneficial behaviour and mission and vision should include social responsibility and sustainability as their parts.

The management has to focus on the state of art infrastructure that is introduced in the large projects. Now a days the managers are more focused on multi disciplinary projects to re engineer business which provides competitive advantage. Rather than spending more time on traditional line management responsibilities the managers are spending time on project work. New projects tend to be exciting in first few years of the project life cycle. But some important project personals often show interest on the finishing stages of project. the operational management should be the key driving force of the project from the beginning, but “go live” phase of the project is in danger as it didn’t receive attention.

The terminal5 in a successful project delivered on time and in the budget allocated .the architectural design won awards. It is believed that customers will get great service and satisfaction from terminal 5 when compared to terminal4 and 3. Here the operations management followed properly go live phase in project life cycle as a planned construction programme for six years, it included 400,000 hours of man power and software engineering to built conveyors for 17 kms., 66 trails has been made by 15,000 volunteers, staff were given a training and support of six months, before opening the terminal the baggage system was fully loaded and tested for about twenty times.

Even though all these attempts were made the opening of terminal5 went as a disaster to customers and public. Sources taken from media showed that there were long queues in terminals, about 15000 baggage went missing, about 500 flights has bee cancelled in fist two weeks of its opening. There was big problem in sorting out the luggage to its actual owners , this luggage was sent to USA and Milan for sorting out. Even the insurance company didn’t compensate the lost luggage saying this is a” known risk”.

The management in companies should be fully aware of the prominence of the operational planning. And should be well prepared for go live phase of the project. In Heathrow terminal 5 the transport select committee was advised by chief executive officer of British airways that the building programme was not finished completely and this made to compromised the testing many time before opening. It was not that about 28 lifts are not working on the opening day, and there were discussions whether to delay the opening schedule of terminal 5, but it was neglected as the officials thought the potential risk will be low. Later the Chief Executive Officer admitted it was their fault to compromise on testing before opening.

Application of TQM:

According to Joel E. Ross and Susan Perry (1999) was cited in his book about the TQM is ” total quality management is the set of management processes and systems that create delighted customers through empowered employees leading to higher revenue and lower cost”

The main principals are customer satisfaction, employee involvement, and continuous improvement in performance.

Customer satisfaction: the customer satisfaction factor has been lost on the opening day of terminal 5, where customers have to wait in long queues, loss of baggage, flights cancellations, and British Airways couldn’t find the hotel rooms to customers.

Employee involvement: employee involvement plays a crucial role in success of any organisation. On the day of terminal5 opening, staff arrived about two hours late to work and the baggage handlers were unable to through the building as there were no clear signs. Even the staff working on the ground didn’t help them in any way. There were no announcements about the cancellations. Staff felt they were not responsible for the chaos going on. There was no one to volunteer the situation.

Continuous improvement in performance: the testing has been compromised by the British Airport Authorities. Staffs were not trained properly, only six months of training was given. There was no improvement in the training statistics. The luggage handling systems were checked about twenty times before opening but on the day of opening it failed to work.

Critical approach:

Terminal 5 is a complex building with advanced infrastructure which was built with a goal of improving customer experience and to prove Heathrow airport as world class airport. To achieve this a smooth opening was required but unfortunately the opening was disaster and terminal 5 stood in all headlines of media and was a hot topic in the whole world. The problem was caused by combination operational and technical failures. But there are some issues regarding risk management whether they performed rehearsals or not, of so why they couldn’t identify the problems before opening day. They would have hired some extra staff for the beginning days of the terminal. They would have tested it several times before opening it. If they would have tested they would have found all possible failures and would have rectified it before opening. If they would have done so we would have seen a good risk management system in operational management. According to media sources the airport staff was unable to give answers to difficult questions. When the issue raised the British airways would have focussed a heavy spokesman so that the customer and the whole world have felt the British airways took the issue seriously. British airways would have given free food and hotel rooms when the issue happened so that they would have managed the long-term damage of company with minor compensation.

Teething problems may be difficult to avoid for any major projects, but one of the oldest rule in business is “anything can go wrong”, “will go wrong” and the second oldest rule is the judgement is passed on recovery but not the mistake, and the third rule is when something goes wrong in an organisation the best thing is to admit it. In terminal5 there was no one with strong leadership skills, people with knowledge, and authority to sort it out ad it didn’t go according to the script. It is not excusable for staff for not being able to find car parking and not for being able to get through security, and not for being able to login in to the systems to start their work, they would have gone a series of complete training, testing and rehearsals there is no excuse for the BA and BAA for saying the baggage system failed to work as they tested it only with few bags and assumed that it would work properly with 40,000 baggage’, and tested escalators when it was empty but not when it is loaded.

CHANGES TO IMPROVE THE QUALITY OR CUSTOMER SERVICE:

The construction of Heathrow terminal 5 was very successful project as it was finished on time and in the budget given. But on the opening day it encountered technical problems and operational problems it would have been prevented it BA and BAA would have been followed some simple steps:

There should have been clear signs outside the terminal 5 for car parking, as it is known from the problem that staff couldn’t find the space for car parking they were about two hours late to work, so if correct signs and signals were given the staff would have arrived to work on time.

There should be clear signs in the building, as the terminal5 is massive in its size with advanced infrastructure, they should have been provided with clear signs to navigate within the building, as we came to know from the problem that staff and luggage handlers couldn’t find their designated places, they couldn’t navigate within the building.

The staff would have been trained several times before the opening day. Because on the opening day staff were unclear about using the new resource management system. When the disaster took place staff looked unhelpful, as they didn’t understand what was really happening, they couldn’t even answer to the customer standing in queues about the faults occurred.

The management would have asked staff to arrive a bit early to work to encounter potential delays in entering in to the building which they never entered before.

British Airport Authority and British Airways would have recruited some additional staff to volunteer the work on the opening day.

The baggage handlers were not given enough training to handle the new unfamiliar highly sophisticated luggage handling system, they would have given some extra training .

That new baggage system looked to have no backup system to recover when technical defaults occurs. And the staff keep on loading it even though it stopped working which resulted in sever delays in reclaiming back the luggage.

It was seen there were no announcements made and system stopped working, and the system couldn’t recognise staff ids. This is lack of testing done before opening. BA and BAA agreed it compromised on testing phase, if it would have been done several times before opening they would have avoided this disaster.

WHAT BA AND BAA DONE TO IMPROVE:

At London Heathrow terminal 5 after a one year of its opening day everything looks to be flowing smoothly, with more than 90 percent of flights departing and arriving punctually. And more than 16 million customers have now used the terminal 5 facilities properly.

New high tech equipment has been installed in security gates which make customers to pass through them quickly and pleasantly. This reduced the waiting time near the security gates.

A new system has been developed where passengers do not have to unpack their laptops as trays are available automatically and passengers don’t have to take shoes and belt as the security scanning system is very sophisticated.

The distance to the passenger gate is reduced to five minutes by walk and 45 seconds using unmanned shuttle. This reduced the time lapse between the entry and passenger gates.

The baggage performance was increased significally, the baggage is arriving the carousal before the passenger arrives saving time of passengers for reclaiming baggage. And when there is a connecting flight between destinations the luggage transfer will be done automatically, and luggage arrive quickly than passenger comes out.

BA has now more than 90 percent of flights arriving and departure on time. Hence keeping the chaos in mind the BA and BAA is following punctuality in departure and arriving times of the flight.

Staffs has given more training and daily regular meetings to make them familiar with the infrastructure. So that the BA and BAA want to give its customers the best service.

The building is designed in a way that BAA works closely and naturally with BA making them to interact and meet more often in contingency mode. So the two managements are under one roof now.

BA and BAA are using customer feedback to improve the quality and got positive feedback from most of the passengers. Hence it used these feedbacks to improve its quality service to its customers.

When compared to other airports and other Heathrow terminals the time taken to check in and drop baggage has been greatly reduced. This saves passengers time and increase the time for shopping and spending.

British Airport Authority reduced the time of waiting at security search in terminal 5 with queue less than 5 minutes.

BA moved all its staff and flights in to terminal 5, and made signals promising. Now it uses powerful satellite signalling system to manage air traffic of flights and another satellite is under construction which is due to finish by 2011.

After the management accepted its faults that it compromise in testing they applied many principles of management and rectified the whole mistakes and now terminal 5 is working properly, with 4000 car parking space, including car finders and help desk to find out lost cars, it has now its own railway station with six platforms connecting London underground and Heathrow express and lifts are working excellently handling 50 persons in one go all together, it has now automated kiosks where a passenger can cjesk in automatically and select seats and 140 desk are available for check in, and it has highly sophisticated single terminal baggage handling system whic is the best in Europe, and has major brands like Harrods, Hughes and Hughes, Links, Mapin, Paul smiths, Smythson, Cafe Nero, Starbucks, Gordon Ramsey, Giraffe, and Wagamama for customer service.

Hence the Heathrow Terminal 5 is definitely a successful project.

Introduction

Burger king is a well known brand of a fast food restaurant chain that operates globally. Founded in 1954, the burger king franchise has grown from its humble beginnings to a multibillion dollar empire over time and the business has gone beyond the borders f its country of origin and now it has franchise operations all over the world. However the character that embodies the brand, famously known as “the king” was developed and introduced in 1955 that grew to became an embodiment of the brand itself. Developing various versions for broiled beef lovers, the menu of burger king grew and so did its customer base. Owing to the immense success, the company decided to expand the business and franchises were granted in the year 1959 but the initial focus still remained on the western markets where there was a demand for and similarity with the cuisine that burger king offered but the first franchise restaurant to materialize outside the US was in Puerto Rico.

Up till the year 1967, the company had already opened up 275 restaurants but further expansion required the private owners to cohort with the Pillsbury Company. Currently, the company is a publically traded company with Goldman Sachs Capital Partners, TPG Capital and Bain Capital as its major stockholders. It is one of the most well known brands on earth and it is hard to find a country where there is no burger king outlet, Pakistan happens to be one such country. However franchise operations are a very risky business for the franchisee, especially in the case of a foreign brand. A multitude of factors; both external and internal need to be addressed before a franchise can be launched. An analysis of external and internal factors needs to be done in the form of a prefeasibility study to test the waters before taking the plunge (Kotler, 2008).

Pakistani Market

Having remained under the Mughal rule for a long time, Pakistani cuisine consists of hot, spicy and rich curries that are consumed with rice or bread with a lot of herbs (Black, 2002). This makes Pakistani cuisine quite different from the Western one and therefore offers a challenge to any international franchise thinking to enter Pakistan. However it is not unusual to find famous fast food restaurants in Pakistan and travelers’ home sick for their local food will have no difficulty in finding international restaurant chains in the major cities of Pakistan (Singh, Brown, Clammer, Cocks and Mock, 2008). Various names like Pizza hut, McDonalds, KFC, Mr. Cod, Subway etc are household names for Pakistani city dwellers as well as they offer a break from the usual cuisine available at homes. According to reports, the real private consumption growth rate in Pakistan is expected to be much higher that it’s GDP by the year 2014 and therefore points towards the existence of various growth opportunities and international food companies such as Nestle and Unilever are doing extremely well (PRlog, 2010).

Burger King provides a lot of support for its franchises and even plays a role in selecting the most appropriate site for the business. The employees are also given a training of a minimum of 70 days so that they are well equipped and knowledgeable about the company’s operations.

External Analysis: PESTLE
Political Factors

Even though Pakistan has had a history of political instability, upheaval throughout its history but the political factors that are relevant to a fast food business include health and Safety Guidelines, food labelling guidelines issued by the government that may be subject to change with a changing government. In Pakistan there are no well defined rules and regulations for monitoring the health standards of restaurants and there exist no labelling requirements as well. This presents easy operational conditions as well as the opportunity to define industry standards of the fast food business in Pakistan.

The security situation in Pakistan is also a question mark because terrorist and angry mobs have often targeted international restaurant chains in Pakistan and a KFC outlet in Karachi was destroyed twice because of such a situation (Schlosser and Wilson, 2007).

Economic Factors

Economic considerations that will help in establishing the operations in Pakistan low set up costs for the franchise and the ability to tap into a growing market as the awareness of consumers regarding international brands increases. The added advantage that fast food carry is that consumers view that they are being offered fair value for the money they are paying. Additionally, the growing middle class consumers in the country who do not want to eat at small local joints but do not have the money to spend on a lavish restaurant are the best target market for burger king. Moreover, Pakistani government offers favourable investment terms and foreign investors are permitted to keep 100 % of the firm’s equity but they are subjected to the condition that a maximum of 60 % of the total equity or profits can be repatriated (SECP, 1984) however the ever depreciating Pakistani currency may be a problem. However the double digit inflation remains to be the major threat as this would warrant an increase in prices that the consumers may not be willing to bear.

Social Factors

As the working middle class in the country is increasing, the lifestyles have become much busier than they were previously which has made the acceptance of fast food restaurants in the country easier. There is still lack of awareness of the concepts of healthy Eating and Obesity among the general population and Pakistani consumers are generally meat lovers which happen to be the speciality of burger king. Another added advantage it the homogeneity in taste across the major cities in the country which will be the target market. Fast foods are not viewed as poor man’s food and eating out in an international chain is still regarded as a social activity for many families. It is the accepted religious and cultural norm to consume Halaal food only and the consumers expect the restaurants to offer such food.

Technological factors

Significant investment will have to be made in terms of developing the technology that meets the franchise agreement requirements. Involvement of technology in food here is relatively new and therefore it may be difficult to develop a supplier base in a short time and the company may have to rely on the parent company. Computer ordering or till system are relatively new here and therefore employees will need training to operate these systems and will represent a significant cost.

Legal

Restaurants in Pakistan are controlled and registered through the Pakistan Hotels & Restaurants Act of 1976. According to this law, every restaurant must be registered and the owner must attach a certificate that verifies the medical fitness of the staff from the civil hospital of that area along with the application. Health, hygiene and comfort standards have aloe been defined in this law and the authority issues the certificate of registration and the license to operate at the same time though the firm may have to file a separate form for getting a license (SMEDA, 2009).

In addition to the above mentioned act, there are various other food laws in Pakistan such as the West Pakistan Pure Food Ordinance, 1960 and covers topics that relate to the preparation and the sale of foods and violations are punishable by imprisonment and fine. Another law is the Cantonments Pure Food Act, 1966 which is applicable only in the cantonment areas. Pakistan penal code, 1860 also contains some clauses regarding adulteration of food or drink (Khan and Hafeez, 1999).

Although the regulatory framework is in place, like many other unfortunate countries, these laws are not fully implemented and often exploited.

Environmental

Pakistan is located in such a terrain because of which the weather generally remains hot during most part of the year and the summers are harsh however the northern part of the country still receives a few good months of winter as well. Monsoon is also a regular visitor however, because of the lack of basic infrastructure; weather condition may cause problems for the consumers as is the recent case of flooding in Pakistan. To make the consumers comfortable, there is a need for proper air-conditioning, heating and selection of a location that is easily accessible despite harsh weather conditions. The environment protection Act of 1997 covers topics related to the protection, preservation, rehabilitation and progress of the environment, deterrence and control of pollution and endorsement of sustainable development (The Gazette of Pakistan, 1997).

Internal Analysis: SWOT
Strengths

A major strength of this venture is the international brand name recognition of Burger king that will help access many demographic groups of the population and gain an easier acceptance in the market. In addition to this, the strong financial backing of the company is another major strength as there will be no hitches in setting up the required infrastructure and the international distribution channels of the company will serve as an added advantage for the franchise. The assembly line style of food preparation of the business is also very efficient while food safety is also given very high importance.

Weaknesses

A major weakness of this operation is that Burger King is mainly concentrated in the US while there is already established competition from other fast food joints, both local and international in the country and it may be hard to develop a consumer base. It basically relies on its franchisees to run its operations abroad. The major weakness of Burger king is that it offers a very high calorie unhealthy diet and as the trend for health consciousness increases globally, it runs the risk of a shrinking consumer base. Additionally, burgers and fast food snacks are not an everyday meal for the Pakistani consumer as the traditional local cuisine is quite different from what the burger king offers. The logo of the king that makes burger king so recognizable and is the basis of many advertising campaigns may not resonate well with the consumers as the local consumers may not be able to relate with it.

Opportunities

Since there are no burger king outlets operating in Pakistan, it is a great opportunity to introduce the Pakistani consumer to the King. There is an opportunity to take advantage of the experiences of the other fast food restaurants and not make the same mistakes that they did. In addition this, there is an opportunity available for the customization of the burger king menu to the local tastes so that consumers can accept it with ease which many international chains have done in Pakistan. There is room for new product development especially in the breakfast segment in Pakistan which may prove to be a competitive edge for the franchise. Since Pakistan is one of the emerging markets, the economy is still developing and therefore there exists great potential for those who are willing to make a long term investment commitment.

Threats

The security situation in the country remains the major threat to the franchise operations and makes them easy targets of terrorism and requires huge investments in security. The company will face intense competition from the pre established brands especially McDonalds and also from other ready to cook options such as K&Ns chicken etc. consumer eating habits are changing inevitably all over the world. Although consumers still consume fast food meals but this is an occasional event for most of the Pakistani consumers as they are still more dependent on the local or “desi” food as it is fondly referred to.

Concluding Remarks

Pakistan being one of the emerging markets holds huge potentials as well as high returns but also offers a considerable level of risk as well. Even though the market is huge and profitable, other factors such as the weak economy, political instability, and security threats and poor infrastructure make it impossible to launch operations at a massive scale. Since fast food is not the local cuisine, it may be hard to find consumers outside the major cities which considerably restrict the target market. However there are immense opportunities available as well which can be tapped into by using the most appropriate entry strategy and developing a strong exit strategy if the need arises.

People travel from one place to another for many reasons, some due to their jobs or business and few for holidays and vacations. As a traveller they cannot own a car in every place or country they go, they always prefer other options like public transports, cabs, busses, trains and rent cars or bikes. Getting a car on rent has become very famous due to the cost as it is much cheaper than using cabs for a whole day and because it is much more secure and convenient. Keeping this in the mind Researcher has decided to develop an online car rental system, by using online car rental system a traveller can book the car.

As the name of the system suggest, this system will be an online car rental system. This system will not only help the travellers to select the car of their chose but they can also compare the different models of car available and different type. They can compare prices, models and brands. They can select if they want that the car should be delivered to their door step with additional charges or they will pick up the car from the nearest store. They can select the car according to their requirement and budget.

Problem statement and Literature review
aˆ? Expensive rent for travellers

As stated by Flowers, J and Levere, J. (2008) due to rise in drivers fees and taxes such as state and local surcharges applied on airports, the rent of the cars can increase at an average of 25 per cent.

Due to rise in Tax, the travellers have to pay up to 25% of tax when the booking or renting a car from the airports. Even if the traveller pays the higher price they have to go with the cars which are available at that point of time in the car rental office. It can be expensive cars or even luxury cars which are not in budged of every person.

To overcome this problem the Online Car Rental System will help the traveller to book the car even before they have arrived. So that they do not have to pay extra airport charges and get any car which is in their budget and which suits them and their requirements.

aˆ? Returning the car remotely

According to Yang, Y., (2008), difficulty is in uncertainty of length time of the person who have taken the car on rent and which referred location he wants to return the car.

Sometimes a person takes a car on rent, but it is not sure when will the person return the car and will the person be able to come to the same location to return the car or not, in this situation that person have to pay more if he delay to return the car on time.

This online car rental system will provide an online service where the person can increase the time limits and predefined the location person will be dropping the car or he want the car to be taken from.

aˆ? Cannot reserve specific car model

According to Korstanje, M. E., (2011), Due to limitation in operations creates problem for renter to reserve specific model. Reservations are not given on the basis of model but group.

Due to operation limitation in the area like airports, this problem causes issue like in which the renters are not able to get what they actually want and they have to go for the car which is available in the store even if it is not what they are willing to have.

This online system will help traveller to do online booking in which he can select which car he prefer with the facility of comparing with other car on the basis of type and price so that he can makes best decision.

aˆ? No time for customer’s feedback

As said by Meyer, C., and Schwager, A., (2007), Due to many transactions by individual customers which are monitored by the company they does not get time to take feedback from them regarding the service provided.

When a customer comes to an office for renting a car, due to having many customers the staff member of the company does not get chance to ask customers regarding their services because of which their problems are not rectified.

To rectify these issues the online car rental system will have an online feedback service after each customer have done with their transaction at the time of logout. The system will ask for a feedback from the customer.

aˆ? Time wasting

As said by Ahlstrom, C., Kircher, K., et al., (2012), Due to a single mistake of the airport rental service it take hours to get cars on rent.

When there is a problem in the airport rental service it can take hours to get the car on rent which is actually wasting the time of the renter.

In online car rental system the reservation will be done before traveller arrived at the airport so that when the traveller arrives at the airport the car will be ready to be taken.

aˆ? Change car on each route

As said by Asconavieta, P.H.S. (2011) car rental companies usually work on the regional basis because of which traveller have to change car on every route.

Due to shortage of area coverage as the car taken for the company should return to the same location makes the traveller to keep changing the car even if they go from one state to another. They have to come back to the same location. So when they go to different state they have to change their car.

To rectify this problem the online car rental system will have an option of selecting the area the customers want to return the car. So In the country like Emirates or Maldives where the area is short, the car can be taken from one state to another state without any problems.

aˆ? Improper scheduling for proper car utilisation

As stated by Minodora, 2009, improper scheduling in car rental companies causes the company unable to utilise their car and even increase work time for renter to get car.

Due to improper scheduling in the car rental companies the car spend more time in the company’s car lot or customers have to wait until the car is not returned.

Using online car rental system the scheduling will be done online by the customer itself as the car which they select they have to put the time they will return. If in case they fail to return or inform the pickup point extra charges will be charged to them.

aˆ? Return car on the same agency location

According to Goldbarg, M., Asconavieta, P. and Goldbarg, E., (2012), car rented from a company can only be returned to the agency of the same company.

If a renter take a car from a company he or she have to return it to the same agency of the same company but if the person is new in the region it will not be possible for him to do that it will be wasting of time in searching for the agency.

In the online car rental system the renter can select whether he wants to retune the car or he wants the car to be taken from where he is , it can be hotel, airport, mall or any other location he can predefined the location online and the car will be picked up from him.

aˆ? Insufficient revenue

Lin-in, H., and Tao, Q. (2011) described that car renting companies in certain areas unable to get sufficient revenue for growth.

This issue is due to concentrating on a limited region because the rate of sale increases based on the area of the company it is located in if the company is limited to its area only.

In online car rental system there will be no boundaries, the company can concentrate on any location and get revenue from any part of the area or even country if the country is not in a bigger size like Emirates or Maldives.

aˆ? Rejection due to short time frame

According to Guerriero, F., Olivito, F. (2011) in order to increase the revenue, company with limited car does not rent the car for a day or few hours.

Because of limited area of work company does not give their cars for short period of time to increase their revenue which make it difficult for the traveller to search car renting company after he have reached to the unknown country or location.

As the online car rental system allows traveller to book the cars online. A person does not really have to go through all this type of issues as a person will be getting the car as soon as he or she arrives.

Research Aims & Objectives
4.1 Aims

To create an online system, that will allow travellers to easily rent a car.

It will also allow user to select the car according to their requirement and compare it with other options of cars.

Make it easy for a traveler to return the car on remote locations.

Solving the manual scheduling problem as every transaction will be done online.

4.2 Objectives

Is to create a reliable web base online system on which user can access using internet from anywhere.

To use software tools in implementation, this will help in implementing features for easy access.

Allow system users to participate in the early stages of development so the outcome will be user oriented.

Research Questions

There are two categories in which the researcher has classified the questions.

5.1 Domain research Questions

How the system will help in car scheduling?

How the system will affect the operation of the renting company?

How the proposed system is different from existing systems?

How to integrate online payments by credit cards?

5.2 Technical research question

Which scripting language can be used for the proposed system?

Which data base system can be used for the proposed system?

How the different feature can be implemented into the system?

Which web authoring software can suits best of the system?

Research Design
6.1 Domain Research

The research in domain research will be conducted from literature source like journal, eBooks, white papers and library books. Furthermore research will be done by using online resources such as IEEE Xplore, Google Scholar and my Athens.

6.2 Technical research

Mainly Web resources such as eBooks and journal will be used in conducting technical research.

Research Plan
Personal Reflection
7.1 Facts finding Methods

The fact finding method which the researcher will use is questionnaire and interview fact find methods. Questionnaires are objective and will reach too many respondents which will provide researcher with sufficient information for accurate analysis. On the other hand the interview method will allow the researcher to get deep understanding about the topic area.

7.2 Limitations

Like every system have some limitation, in order to collect data and questionnaire from traveller during the development will be difficult and their participation is not possible so this matter can be overcome by using social networks and other web application to take questionnaire before or in the early stages of the system development

One of the latest buzzwords that have come into general usage in the world of tourism is that of “Integrated Resorts”. Over the last two decades, a number of large tourist integrated resorts have been developed around the world, many of which have become highly popular holiday destinations. The growth in tourism generated by these integrated resorts has brought significant economic and social benefits to their respective countries, including increased foreign exchange earnings, direct and indirect employment. In addition, the resorts’ development has stimulated local and regional development, encouraging new local industries and international trade. The success of these integrated resorts can be largely attributed to the adoption of an integrated approach to their development, caretirl planning and implementation that took into consideration regional environmental, economic and socio-cultural factors. This kind of approach helps minimise environmental, socio-economic and marketing problems often associated with uncontrolled tourism development.

The development of integrated resorts has grown rapidly over the last two decades also as a reaction to the proliferation of unplanned beach resorts. On the supply side, many governments have increasingly turned to integrated resort developments in an attempt to improve the well-being of the local population by generating iobs and increasing income, and private investors have seen integrated resorts as a way to maximise their profits, while on the demand side, statistics are not available on the relative proportion of tourist demand for integrated resorts.

In the context of globalisation and widening international tourist markets, it is acknowledged that integrated resorts offer great opportunities to visitors for leisure, recreation and sports, but due to the difficulty in assessing the impacts that may result from the construction of an integrated resort, as plans for integrated resorts are developed by consultancy iiirms and private investors that rarely publish or divulge their ‘secrets’ before resort operation, most research has been conducted only after the construction of integrated resorts.

The notion of integrated resorts came into plrominence in Mauritius after the successful approval ofthe environmental impact assessment report and construction of Tamarina Golf, Spa and Beach Club that is the first integrated resort in Mauritius.

1.1 Tourism Industrv in Mauritius

Mauritius has considerable natural advantages as a holiday destination such as beautiful coral beaches, warm clear lagoons, colouriixl reefs, picturesque mountains, a subtropical climate, a southern hemisphere location, an atmosphere that is exotically different, yet safe and stable, and people who are friendly and welcoming. These Advantages have been exploited with attractive well run hotels with good amenities, direct and reliable air services, efficient supporting infrastructure and effective marketing as an up-market quality destination. It is therefore hardly surprising that tourist arrivals have been rising by more than 8 percent a year and the tourism industry has become one of the most dynamic sectors of the economy, accounting for 19 per cent of gross export earnings and providing employment directly and indirectly for about 50,000 people.

However, there are problems. Average spending per visitor has not been going up as fast as hoped, and there have been some signs of adverse reactions at tourist numbers and behaviour. Infrastructure constraints have developed in the form of congestion at peak times at the airport and inadequate efiluent treatment leading to deterioration in water quality in some of the lagoons_ In the longer term, there will be more general environmental constraints, in the form of limits to the capacity for absorbing ever increasing numbers of visitors in a small densely populated country with a finite length of beaches and a sensitive coastal ecology. It will be necessary in fixture to place a ceiling on the number of tourists in order to protect the environment and, indeed, the fixture of the tourism industry itself Mauritius has been very successful in attracting foreign direct investment (FDI) in the 197O’s. However there has been a decline in the growth of FDI since the mid-19S0’s, particularly in the manufacturing sector. However, FDI growth has started to pick up again since 2005, led by the tourism sector, particularly the Integrated Resort Scheme as illustrated below.

Foreign Direct Investment by Sector, 2003-2007

2003 2004 2005 2006 2007

(USD million)

Export Processing Zone 2.7 8.7 3.6 2.8 2.2

Tourism 3.4 4.2 18.2 83.0 144.0

Banking 46.0 10.9 15.4 111.0 70.0

Telecommunications 0 1.3 5 _ 9 1 .4 0. 5

Other 16.8 37.8 52.0 30.7 64.3

Total 68.9 62.9 95.1 228.9 281.0

As illustrated above, tourism has proved to be a credible alternative source of foreign currency earnings. However the country will not be able to cope with a policy of mass tourism which is unsustainable. Also the characteristic of the country, which is a Small Island Developing States (SIDS) facing special disadvantages associated with small size, insularity, remoteness and proneness to natural disasters, limits the prospect of tourism development.

Hence since the economy of the country is highly vulnerable and the totnism industry having reached its carrying capacity, therefore sustainable tourism development is very instrumental. Mauritius has therefore resorted to the rejuvenation of its tourism life cycle, as this is nearing or has reached the stagnation stage, through the development of an alternative luxurious product known as ‘Integrated Resort’, as illustrated below.

This good mix of tourism and real estate development has been high on government’sagenda and has led to government’s intervention in the tourism sector with the twin objective of tourism rejuvenation and FDI increase.

1.2 Aims of study

The development of the tourism industry in Mauritius has been considered as an important economic diversification tool for the nation. Realizing the importance of the tourism industry in the economic development of Mauritius, government has initiated the Integrated Resort Scheme. Therefore the aim of this dissertation is primarily to conduct an investigation regarding development and impacts of integrated resort in Mauritius.

1.3 Objectives of study

This study purports to investigate the anticipated and current socio-economic and environmental impacts of integrated resorts in the Mauritian context. In particular, this study will aim to achieve the following objectives:

To investigate the context of integrated resort development and its aims and objectives in the development of Mauritius tourism.

To know the criticisms about the initiation of integrated resort in Mauritius.

To determine the positive impact of integrated resort in terms of society, economy and environment of Mauritius.

To know the negative impact of integrated resorts in terms of society, economy and environment of Mauritius.

To recommend guidelines for sustainable integrated resort development and minimizing negative impacts of integrated resort development.

This good mix of tourism and real estate development has been high on government’sagenda and has led to government’s intervention in the tourism sector with the twin objective of tourism rejuvenation and FDI increase.

1.2 Aims of study

The development of the tourism industry in Mauritius has been considered as an important economic diversification tool for the nation. Realizing the importance of the tourism industry in the economic development of Mauritius, government has initiated the Integrated Resort Scheme. Therefore the aim of this dissertation is primarily to conduct an investigation regarding development and impacts of integrated resort in Mauritius.

1.3 Objectives of study

This study purports to investigate the anticipated and current socio-economic and environmental impacts of integrated resorts in the Mauritian context. In particular, this study will aim to achieve the following objectives:

0 To investigate the context of integrated resort development and its aims and objectives in the development of Mauritius tourism.

0 To know the criticisms about the initiation of integrated resort in Mauritius.

0 To determine the positive impact of integrated resort in terms of society, economy and environment of Mauritius.

0 To know the negative impact of integrated resorts in terms of society, economy and environment of Mauritius.

0 To recommend guidelines for sustainable integrated resort development and minimising negative impacts of integrated resort development.

Chapter 2

REVIEW OF LITERATURE

2.1 Tourism Impact

Mauritius has built its successful up market tourism sector on a fragile and vulnerable natural resource. The growth of the tourist industry in an unplanned manner has led to the following negative impacts:

»’ High volume tourism has made an enormous impact on parts of the coast. There are plenty of examples of virtually every imaginable type of tourism impact on the environment, including the destruction of coastal wetlands and other sensitive environments, organic pollution and coastal erosion for example. Flic en Flac.

0 There are problems associated with monitonng and auditing due to institutional weaknesses. Most casual tourists bring their own equipment and are relatively self-contained, thus bringing in minimal cash into the country while making a large impact on the enviromnent for example tourists from Reunion and other islands of the Indian Ocean. y

2.2 Tourism Environmental Impacts

The natural environment is under increasing threat hom unmanaged human activities, and in assessing the impacts of tourism, it is essential to adopt a holistic view that recognises both the direct and indirect consequences of tourism activities and their intrinsic link with other sectors (Glenn Kreag 2001). Growth in the tourism sector may generate new impacts on the coastal zone but also raise the intensity of existing impacts by placing additional burdens on resources that are already overextended. For this is a feature of human settlement and not just of tomism. However, where this is exacerbated by a significant increase in the number of visitors and people employed within the industry, the tourism sector must take responsibility for providing solutions to the causes of environmental degradation. The major environmental impacts identified and theiR direct consequences on tourism development as well as impacts associated with activities that support the tourism sector are highlighted as:

* Water Resources and River Ecosystem

* Estuaries and Wetlands

* Soil Erosion and Sedimentation

* Waste Disposal and Pollution

* Coastal Erosion

* Marine Resources

* Recreational Activities

2.3 Tourism Economic Impact

In the developing world, economic impacts frequently outweigh other considerations when it comes to tourism development. The need for foreign exchange and the ease by which the industry can be developed relative to other sectors, makes tourism development a national priority (Glenn Kreag 2001), It is therefore important to have a clear understanding of the tourism industr`y’s economic impacts, particularly because not all of them are positive. These impacts are the primary impacts, employment opportunities, impacts on the labour force, inflation and the availability of essential resources and over-reliance on tourism.

2.4 Classification of Impact

There are several ways of looking at economic impacts. The following classification of impacts reflects the multi-sectoral nature oftourism:

Primary Impacts arise from the inflow of foreign cash as a result of visitor expenditure. They are fairly well recorded by banks and businesses such as airlines, hotels and restaurants. They are relatively easy to measure.

Secondary Impacts arise when the currency inflows penetrate to other sectors. This happens when the tourism industry passes some of its business on to other businesses, for instance, when an airline company contracts to provide on-board meals. Wages earned by people involved in sport services also fall into this category.

Tertiary effects arise when currency flows are not the result of tourist expenditure, but when the practise of tourism led to other opportunities. For instance, a filmmaker on holiday in Mauritius may decide to use that country as the venue for his or her next film. Or a tourist may be so enchanted with the sandy beaches and blue lagoons of Mauritius that he or she buys a bungalow.

From the above, it can be seen that the total economic impact of tourism is very hard to calculate indeed, but it would be wise to commission a thorough analysis of the tourism industry results. For instance, the high percentage of foreign workers in the tourism industry results in wages ending up going to their home countries which reduces the net benefit to the host Country.

2.5 Tourism Social and Cultural Impacts

The socio-cultural impacts of tourism are basically the consequences of either the development of the tourism industry or the presence of the tourists (and the characteristics of the tourist-host relationship) (Sharpley 1994). The table below contains a comprehensive list of these impacts, following the classification adapted from Pizam & Milman (1984), and Burdge (1994). The social and cultural impacts of tourism can be vast, and unfortunately many of them are negative. They include:

0 An intrusion of western culture into the host population. The tendency is often for local people to try to emulate westem consumerism. In new destinations, local populations are often not aware that many tourists work hard most of the year and then take time off for leisure. Instead, the tourists appear to have a lifestyle that is only enviable and the temptation to mimic them in terms of- dress or personal assets such as watches, sunglasses, etc, is great.

0 Value systems may be eroded, particularly in poor areas where tourists can be seen as an opportunity to make a fast buck. This may lead to theft prostitution, and sometimes violent crimes.

Local customs are often not respected by tourists who may be unaware or insensitive to them. It is critically important that the government and other role players make tourists aware of such issues;

Valuable cultural artefacts are olten bought by tourists, and shipwrecks are regularly plundered.

The table below show some of the main impact of tourism on a country

IDIPACTS IDF TOUllISlI

Positive Negative

Impacts on population

Population increase

(immigration, no emigration)

Immigration of seasonal workforce

(positive in case of lack of labour – negative in case of unemployment)

Presence of second home owners

(positive if involved in community life – negative if not involved)

Changes in population distribution (by age, sex, race, ethnicity)

Urbanisation of population

Changes in labour market

New jobs Seasonal jobs

New types of jobs in tourism Unskilled jobs

Increased value of knowledge, language Lack of labour in traditional sectors

skills

Economic diversification Increased economic inequality

Stimulation of underdeveloped regions I

Changes in community structure, characteristics

Income from tourism Increase in the number of temporary

residents

(not very committed)

Growing importance of service sector i Conflicts with second home owners

Stimulation of social, cultural life Difficulties in acquiring real estate

Increase in the value of land Increase in real estate prices s

Development of infrastructure Increase in prices, intlation

Wider opportunity for shopping Loss tiw

Improvement in the destination image ‘ Transformation of value systems

Increase in residents’ pride in their Religious conflicts

settlement l (with second home owners, with tourists)

Decrease of prejudices, disappearance of Overdependence on tourism

stereotypes, increase in tolerance

Congestion

Traiiic problems

Transformation of social stratification

(owners of totuist resources rise, owners of traditional resources fell)

Impacts on individual and family level

Increase in social mobility i Disruption of social networks

p (especially among the young and women)

i Improvement in leisure opportunities ‘ Changes in the rhythm of life

_ Meeting new people, wider social Loss of importance of liiendship

Improvement in the quality of life Increase in perception of danger

(due to increased criminality)

Language skills Xenophobia

Income hom totuism Commercialised hospitality

Improvement in attitudes toward work, Deviant behaviours (alcoholism,

politeness, manners prostitution,

I gambling, drug abuse vandalism)

Local language suppressed

Increased sexual permissiveness

Transformation of family structure

Transformation of consumer habits

Changes in housing conditions

Transformation of behaviour (demonstration effect)

Impacts on cultural and natural resources

Protection of rare resoufces of Disappearance of local habits, traditions

outstanding beauty <

Revival of local arts, crafts, cultLu’al Commercialisatknl of culture

events

Revival of local architectural traditions Littering, pollution

2.6 Conception and Development of Integrated Resort in Mauritius

Mauritius has during recent years been facing serious economic problems owing to the need to comply with free trade agreements and globalisation. This has severely affected sugar and textile exports, two major pillars of the natio al economy, and consequently our balance of payment. Despite serious economic problems, Mauritius has succeeded in realising a remarkable economic transformation due to a diversified economy resting on other pillars like financial and business services sector and that of tourism, hospitality and property development. Hence the development of the Integrated Resort Scheme can be seen as an economic strategy.

As a national strategy the Mauritian government has come along with the introduction of the IRS under the Investment Promotion Act 2000 through the Investment Promotion (Integrated Resort Scheme) Regulations 2002 in order to boost up foreign direct investment which is a necessary component in the fight to compensate for the decrease in sugar and textile income inflow. This has been a strategic attempt with the twofold objective, firstly to attract more foreign direct investment and secondly to strike a more favourable balance of payment. Hence recently Hospitality and Property Development have emerged, attracting substantial investment fiom both local and foreign investors under Investment Promotion Regulations 2007 which promotes the Real Estate Development Scheme comprising of IRS and RES (Real Estate Scheme) projects which are expected to be implemented in the next few years. The objective of the Integrated Resort Scheme (IRS) is to attract mainly high net-worth non-citizens into Mauritius by allowing them to acquire luxury villas of international standing and at the same time providing high-class amenities and facilities including golf course, marina, individual swimming pool, catering, nautical and other sport facilities and health centre within the boundaries of the integrated resort area. The acquisition of a villa for residential purposes by a foreigner under the Scheme will allow the foreigner & his family to reside in Mauritius as long as he holds the property.

Whilst the Investment Promotion Act 2000 expresses government’s political will to expand the economic sector by creating the Board of Investment, the Business Facilitation (Miscellaneous Provisions) Act 2006 enhances business opportunities

towards IRS projects. The Investment Promotion Act 2000 and Investment Promotion Regulations 2007 provide the legal framework for guidelines with regard to the implementation of these projects.

The Finance Act 2007 introduced amendme ts to the following Acts of Parliament in order to regulate the promotion, implementation and marketing of IRS projects in Mauritius:

0 Investment Promotion Act

0 Land (Duties and Taxes) Act

0 Morcellement Act

0 Non-Citizens (Property Restriction) Act

0 Registration Duty Act

» Sugar Industry Efiiciency Act 2001

0 Environment Protection Act 2002

Here under is a list of IRS projects currently being implemented:

Solares at Flic en Flac, Villas Valriche, Les Villas Telfair, Les Salines, La Balise Marina, Domaine de l’Harmonie, Barachois villas and River Club. A few other projects have received their letter of approval recently and upon compliance to conditions laid down they will receive their IRS certificates. In some other cases the Environment Impact Assessment (EIA) report, which analyses the environmental, biophysical and social impact of a proposed development, is being scrutinised in order to ensure that the proposed development is sustainable.

The Integrated Resort Scheme provides:

» for the development of luxury residential units of international standing on freehold land of more than 10 hectares to be sold at a price exceeding USD 500,000

» high-class leisure and commercial amenities and facilities intended to enhance the residential units. These may include but not limited to, golf course, marina, nautical and other sport facilities, shopping mall, restaurant and wellness centre.

0 day-to-day management services such as security, maintenance, gardening, solid waste disposal and household services have to be provided to the residents.

0 for a social contribution in terms of social amenities, community development and other facilities for the benefit of the neighbouring community where the IRS project is implemyed/

However the following conditions concerning the eligibility for the acquisition of residential property from an IRS Company have to be complied with:

(a) a non-citizen of Mauritius

(b) a citizen of Mauritius

(c) a company registered as a foreign company under the Companies Act 2001

(d) a company incorporated under the Companies Act 2001

(e) a Societe, where its deed of formation is deposited with the Registrar of Companies

(l) a trust, where the trusteeship services are provided by a qualified trustee licensed by the Financial Services Commission

It is instrumental to examine the importance and justification of the IRS in Mauritius liom a scientific point of view. Integrated resorts initiatives and development can be primarily viewed from the macro-economic perspective of foreign capital inflow (FDI) where as on the other hand they can be explained from the perspective of the market failure concept which has necessitated the rejuvenation process of the resort cycle in Mauritius.

The strong linkages of tourism and IRS with other economic sectors should be the key in realising that tourism and new products are a powerful factor for economic growth’ and employment. This can clearly be seen by the nature of tourism and permanent residence needs, that is to say, as an industry it calls for goods and services such as: transportation, food, fuel, water and electricity, crafts, tour services, entertainment, communication, etc. These linkages have always had a positive economic impact in Mauritius. Of coLu’se tourism and HKS development not only benefit the private sector

but contribute significantly to government revenues in the form of sales, business, corporate, personal, departure and of course, import levies.

2.7 The Rationale for Government Intervention in Mauritius Tourism Sector

Continuing globalization of competition has given confirmation to the market-oriented view entertained by the Mauritian government which justifies its intervention in the tourism sector by creating the integrated resort scheme to favour our export oriented strategy. It is believed that markets should be given primacy in the production and distribution of goods and services while government should provide the proper institutional infrastructure for markets to function properly. In cases of ket failure government should intervene to correct any imperfection and intervention is also justified because the more important the sector is to the economy, the greater intervention should be in order to ensure socially compatible objectives that foster sustainable development.

The public sector can “exercise varying degree of influence over the direction of tourism development by acting on both the demand side and supply side” (Akehurst et al, 1994). In Mauritius the demand management policies and the management of its supply side must be seen to go in pair with government’s macro-stabilization policy in an attempt to reach a state of equilibrium. Micro policies have to be endorsed to make markets function better. Govemmenfs political structure and the functioning of rivate institutions have to go in pair as well, Barriers and rigidities should be removed so that new projects like integrated resort development could function more

efficiently. Without appropriate macro-economic policies market-oriented projects in the tourism sector will have to struggle for survival. Thus the role of government in ensuring a better economic climate is of vital importance to improve returns in the lCOl1I`lSII1 Sa‚¬CfO!`

The Mauritian government had taken actions to correct market failure in the economic and tourism sector by rntroducrng the integrated resort development that is the integrated resort scheme Market failure arises from a situation where the ‘riee market does not guarantee environmental protection and community involvement rn development process Since the tourism sector rn Mauritius rs not an integrated

Citius Altius Fortius – Faster, Higher, Stronger is the Olympic Motto. Let us evaluate the role of 2012 Olympics in Promoting Hospitality Industry in London that is the degree of fastness, height and strength Olympic 2012 generates in the Hospitality Industry. The story so far aˆ¦On 6th July 2005 International Olympic Committee president Jacques Rogge made the announcement after IOC members voted 54-50 to eliminate the French capital in the fourth and final round of secret ballots in Singapore. London has twice played host to the Olympics, in 1908 and 1948. It becomes the first city to host the Olympics three times. The Games will act as a platform to display the London culture across the world. It will also attract tourism in the country .The arrival of spectators will produce a boost for the hospitality industry across London. The effects of London 2012 will be felt long after the Olympic flame has left the capital.

The days changed (from 2005 to 2008).The financial crunch has hit the market. At the London Olympic Park, the Olympic Delivery Authority is spending a lot for the development of Olympic city. London city will have major venues than any other city in the world. The evaluation and comparison is required which may be tricky when the games are over, however positively the project may become a vibrant element.

The role of 2012 Olympic in promoting the hospitality industry in London is vital. The government and the hospitality industry itself need to play a major role and take advantage of this historic event and develop standards and service which should play as a Role Model and set an example in itself. The government needs to implement strategies to promote tourism and attract tourist. They need to observe and the follow the fruitful strategies followed by the previous host countries. All the channels of mass communication such as Media and Press should be used appropriately to create awareness and enthusiasm, a sort of “Hype” which is most essential in publicity these days. The government should try at the optimum level to provide concession in the transportation, best infrastructure facilities and the most important of all create an environment to facilitate the multilingual international tourists. Financial support, if required will prove as Boon in Disguise, please remember the present Financial Crunch in 2008.

Tourism 2012 in number

?2.34b Estimated benefit of the Games to the tourism industry

?9.3b Current bill for the Games

?22b Estimated investment in Beijing Games

18% Was cut from VisitBritain’s funding for 2008-11

Source – Figures presented by Caterersearch (2008)

The skill factor comes into picture. Hospitality needs to improve skills to cater the needs of international tourist .Development of new innovative ideas, publicity strategies, procedures and improved quality should be the area of concern for the hospitality industry. Quality should not be made available at the cost of increasing the “COST”; however steps should be taken to permeate the cost with the help of “Optimum utilisation of resources”. The hotel staff should be provided training so that they can use their experience in the best manner to deal with attitude, culture and understanding level of the tourists.

The major impact of Olympic Games 2012 on economy as a whole will be observed when the hospitality industry will be able to derive long running benefit from and after Olympics 2012, in proportion to the spending made for infrastructural development with respect to Olympics 2012.This benefit should be widespread not only during the games also in the post game period. In order to achieve this benefit the expenditure and spending of the tourists should be accurately converted into income and employment in the hospitality industry that is the cost-cutting and budget should be well planned to provide the best standards with the affordable price. The Olympics Games with the associated facilities should be promoted in such a manner that they must act as “Winter Fuel” for the hospitality industry. Even after the games the spirit should be on that is there should be consistent flow of tourist.

According to the Economic Impact of the London 2012 Olympics Adam Blake 2005/5 in the pre-Olympics phase (2005-2011).A relatively small legacy effect also takes place, with a boost to international tourism arrivals and spending. Other sectors experience smaller increases in gross value added in the pre- Olympics phase, such as hotels (?54 million), Bars (?37 million), Restaurants (?37 million) and air transport (?37 million). These sectors gain through the legacy effect, and experience modest increases in employment in this period, for example 2,554 FTE jobs are created in hotels, 2,094 in Bars and 1,811 in restaurants. The post-Games period 2013-2016 is characterized by the legacy effect, with increased tourism demand from overseas. It is also a period in which, because there is less pressure on prices than prior to and during 2012, consumers choose to save less and consume more; prior to 2012 the Olympics raise returns to capital and increase prices, which induces a small shift towards savings and investment.

Source – “Report by Adam Blake, (May 2005) Economic Impact of the London 2012 Olympics”.

In a nutshell the role of 2012 Olympic Games in promoting the hospitality industry is directly related and effecting the enhancement of hospitality industry in a long run .It also requires the complete aid and funding from the government. The hospitality industry also, itself has to take initiative and play a complimentary role to “skim the milk”. This is an opportunity to grab and time to pull up the socks .The country is in real need of inflow of external wealth which will act as a lubricant to run the economy during the recession. Being optimistic, keeping the present Credit crunch aside, it draws us towards a conclusion that if appropriate measures are taken and implemented the 2012 Olympics will prove to be beneficial to the hospitality industry, develop the standards. This event will demand and appeal the government to provide contribution towards the hospitality industry. If this event is successful it will set a benchmark for future events, keeping the constant inflow of tourist which will keep the hospitality fertile and productive.

Let us be a part of the Olympic spirit and create a Win /Win situation.

Rationale for the Topic:

The most awaited event London Olympics 2012 , would not only bring fantastic competition rather would have long lasting effects on the city .The games would make the area more rewarding area to live and work in. Along with the rest of the UK, the games would also boost London’s tourist industry, create jobs in hospitality sector and stimulate the voluntary sector. Behind the curtains economic effects, impact on the development of standards and quality, the cost and the honour associated with the games and its potential to accrue benefits makes this topic interesting.

Research Questions:

The research is proposed to evaluate the role of 2012 Olympics in Promoting Hospitality Industry in London. The evaluation raises questions such as; Is the quality and standards of the hospitality industry developed to cater the international tourist? What is the role of government in promoting the Olympic Games to attract tourist? The comparison has to be made between pre-game cost in development and the post-game economic effects in terms of long lasting benefit? What is the general effect of Olympics on the hospitality industry where it was held? How to retain and convert the expenditure and spending into the profits to gain enduring advantage? The different types of spending patterns by the visitors?

Research Objectives:

The eventual objective of this research is to evaluate the role of 2012 Olympics in Promoting Hospitality Industry in London. Initially there is a need to study the measures taken for the development and promotion of hospitality industry in the pre game period to gratify the international tourist, accordingly to infuse the benefit of the same after the post-game period.

The major objectives of the research can be bifurcated as below:

1. To critically evaluate the role of 2012 Olympics in Promoting Hospitality Industry in London.

2. To estimate and appraise the growth of standards, quality and endorsement to satisfy and attract the Tourist.

3. To emphasis on the preservation of the positive drizzle of the Olympic Games for the betterment of the post-game period.

Literature Review:

Gourmet Burger Kitchen, Managing Director, David Sykes, said: “The Olympic Games will bring more people to the Capital than ever before – surely this can only be a good thing for London’s hospitality industry. We have 24 London restaurants, so we’re bound to feel the benefits of the hundreds of thousands of visitors the Games will attract to the city.” The CBI has also identified ways in which London can maximize the commercial opportunities that come with hosting the games, and include promoting London as a top tourist and business destination, while improving the quality and service offered by hotels and conference centers.

Source – Big hospitality (2008)

Liz Williams, Managing Director of London restaurants, The Real Greek, said: “The 2012 Olympic games can only be positive for London restaurants, as it will bring more people to the City, meaning more diners. Being so close to the planned regeneration site in East London, The Real Greek restaurants in Spitalfields and Hoxton should benefit from the Games. So the Games are good news all round and hopefully Greece will win some medals to boot!” County councils across the UK are currently offering schemes to help provide staff training to improve customer service skills in time for the games.

Source – Big hospitality (2008)

Peter Hancock, chief executive of Pride of Britain Hotels, said: “It is hard to imagine the minister for tourism in any other country making such negative comments about their own accommodation stock.” Perhaps he should not have been surprised. Tourism is clearly not a priority at the Department for Culture, Media and Sport (DCMS). Out of 77 press releases issued by the department so far this year, just one has been about tourism.

Source – Caterer & Hotelkeeper (2008)

Brian Wisdom, chief executive of People 1st, said: “The 2012 Olympics presents one of the biggest opportunities we have ever had to showcase the UK to the world – so it’s vital we look to eradicate the “Manuel factor” now, by promoting the right skills in the hospitality, leisure, travel and tourism industries. The welcome we give the millions of visitors flocking here will be pivotal in helping change long-held perceptions and ensure that the UK becomes globally renowned for its gold standard customer service.”

“By working together with employers and the industry we can continue to encourage and attract enthusiastic and motivated people into the sector,” he added.

Source – Caterer & Hotelkeeper (2007)

Methodology:

The method used in this research is the Exploratory method. The research has been commenced from an inductive position. Further analysis of articles and reports is required. It is necessary to identify the relationship between the data collected and the research objective and the research questions. A theoretical framework later need to be built up on the basis of the secondary data collected and analysed. Accordingly the Extended text has to be reduced for explanatory display. There are no controls over the variables at the present situation. Further observation is required with respect to occurrence of future events and situations to draw a comprehensive conclusion.

Data Analysis:

Qualitative data refers to all non numeric data or data that have not been quantified and can be a product of all research strategies. (Saunders, Lewis, and Thornhill, (2007), Research Methods for Business Students; 4th Edition, Prentice Hall (ISBN 0273701487), chapter-13, p-470)

Qualitative Analysis is expressed in words unlike the Quantitative which is expressed through numerical data .This type of Research lays the initial foundation for better understanding .This data is extended, unstructured and includes some statistical figures with respect to impact of Olympic Games in the Pre Game period and predictions of the same in the Post game period . So the slightest blend of Quantitative analysis is also required .This gives improved understanding of the Research Objectives.

Data Collection:

Secondary data has been collected using the inductive approach. Secondary data is the method of collecting data that has been already analyzed by some one .(Kothari C.R.,(2005),Research Methods and Techniques;2nd Edition,New Age International Publisher,chapter-6,p-111).In this proposed research, the data collected by using the secondary data in this most of the information is collected from the internet and articles. All the research questions and the objectives are met by the secondary data.

Conclusion:

With the above research findings, I can conclude that Olympic 2012 will bring

References:

1. Becky Paskin (2008, 12 June), Hospitality industry doubts benefits of 2012 Olympics [Online] Available from URL:

http://www.bighospitality.co.uk/cgi-bin/item.cg

[Accessed 01NOV08]

2. Caterer & Hotelkeeper (2008, 11 September), Industry needs to get on track for 2012 Olympics [Online] Available from URL: http://www.caterersearch.com/Articles/2008/09/11/323351/industry-needs-to-get-on-track-for-2012-olympics

[Accessed 01NOV08]

3. Daniel Thomas (2007, 04 September), Hospitality needs to improve skills in time for Olympics [Online] Available from URL: http://www.caterersearch.com/Articles/2007/09/04/315862/hospitality-needs-to-improve-skills-in-time-for-olympics

[Accessed 02NOV08]

4. Adam Blake, Nottingham University Business School (May 2005), The Economic Impact of the London 2012 Olympics [Online] Available from URL: http://www.nottingham.ac.uk/ttri/pdf/2005_5.pdf

[Accessed 03NOV08]

5. Personnel Today (2007, 15 October), Hotels poach top talent for 2012 London Olympics due to skills shortages and staff retention problems [Online] Available from URL:

http://www.personneltoday.com/articles/2007/10/15/42797/hotels-poach-top-talent-for-2012-london-olympics

[Accessed 08NOV08]

6. Kothari C.R., (2005), Research Methods and Techniques; 2nd Edition, New Age International Publisher, chapter-6, p-111

7. Saunders, Lewis, and Thornhill, (2007), Research Methods for Business Students; 4th Edition, Prentice Hall (ISBN 0273701487), chapter-13, p-470

Chapter 1

Hilton Hotels in groups UK is known as one of the leading hotel group in the world. The Hilton Hotels group was found with its’ very first hotel established by Mr. Conrad in 1919 in Cisco, Texas. But, today the Hilton Hotels group has expanded geographically, produced original hotel and travel concepts, and developed modern technologies to enhance the experiences of the valuable guests. Today, it consists of more than 3600 hotels all over the world also with nearly 500,000 luxurious rooms in 81 countries with the continuously growing crew of over 135,000 members internationally (Hilton Hotels, 2011). Depending on that, it is clear and it was proven that the Hilton Hotels group has the capability of satisfying the interest of their customers as well as their stake holders.

The Hilton Hotels consists of well reputed and highest quality popular brands with in their group such as, Hilton Conrad hotels and resorts, double tree by Hilton, Hampton inn by Hilton, Hilton garden inn, Hilton Grand vacations and home woods suites by Hilton and Waldorf Astoria collection.

The whole Hilton Hotels group is running adherence to the Mr. Conrad Hilton’s philosophy, the vision of the hotel Hilton Hotels group is “To fill the earth with the light and warmth of hospitality” (Hilton Hotels, 2011).

Accordingly, the Hilton Hotels group believes it is their insight to convey the message of kindness and generosity all over the world, simply known as hospitability. According to the core values of the Hilton Hotels group, their brand name HILTON stands for,

H

HOSPITALITY – We are passionate about delivering exceptional guest experiences.

I

INTEGRITY – We do the right thing, all the time.

L

LEADERSHIP – We are leaders in our industry and in our communities.

T

TEAMWORK – We are team players in everything we do.

O

OWNERSHIP – We are the owners of our actions and decisions.

N

NOW – We operate with a sense of urgency and discipline (Hilton Hotels, 2011).

At present, Hilton worldwide can be considered as one of the leading global hospitality company, crossing over the accommodation sector from luxurious full-service hotels and resorts to extended-stay suites and mid-priced hotels.

The Hilton Hotels group is operated as an innovative and dynamic company which is mainly focused on administrating their business operations following the eco-friendly concepts and also with the services to the global community and enhancing the guest experience.

Since the foundation formed by Mr. Conrad Hilton 90 years ago, Hilton’s commitment to creating exceptional guest experiences still remains unaltered, and our more than 130,000 team members continue to bring the highest quality of service to the global visitors also achieving the interests of the stake holders with the mission of “We will be the preeminent global hospitality company – the first choice of guests, team members and owners alike” (Hilton Hotels, 2011).

1.2 Groups of stakeholder and achieving their objectives

Stakeholder can be considered as a person or people who have a stake also known as share in a particular organization or system. Stakeholders can be groups of people, organisations, institutions and sometimes even individuals.

Sometimes the terms either actors or interest groups are used to describe the term stake holders. Accordingly, the word actor emphasizes that stakeholders are active in order to make interactions with each other. The use of the words interest group suggests that people can be grouped to achieve common goal.

In some occasions, stake holder can be identified as a corporate stakeholder, a party that may have the potential to affect or be affected by the actions of the business as a whole. This concept was first used in a 1963 internal memorandum at the Stanford Research institute. It defined stakeholders as “those groups without whose support the organization would cease to exist” (Grimble and Wellard, 1997).

The theory was presently developed by R. Edward Freeman in the 1980s. Since then it has gained wide acceptance in business practice and in theorizing relating to strategic management, corporate governance, business purpose and CSR together.

Stakeholders can be found at any level or position in society, from the international to the national, regional, household or intra-household level. It is clear that, stakeholders may include all the people who affect and may get affected by the policies, decisions or actions within a particular system or an organization.

Referring to the Hilton Hotels group, the stake holders can be identified at three major levels depending on their institutional levels.

Local

National

Global or International

Locally, the Hilton Hotel group is a business which is based on the ancient cultural environments as well as the aesthetic beauty in the country encouraging their customers as well as their stakeholders to incorporate those things to their beings. Therefore, it is clear that Hilton Hotel is being achieved the objectives of their local stakeholders objectives at a satisfactory level.

Nationally, the Hilton hotels group is known as a business which is mainly focussed on the development of tourism in UK. By providing the lodging facilities by enhancing the customer experiences on travelling through their branded partners such as Hilton Conrad hotels and resorts, double tree by Hilton, Hampton inn by Hilton they have achieved their objective of development of tourism commercially in order to achieve their national stake holders’ objectives.

Statistically it is proven that, the Hilton Hotels group consists of more than three hundred hotels all over the world also with nearly 500,000 luxurious rooms in 80 countries with the crew of over 135,000 members internationally (Hilton Hotels, 2011) and the group is still expanding all over the world. Therefore, the contribution of the international investors may lie at a higher level referring to that statistics. Because of that, it can be concluded that the Hilton Hotel group is being achieving their International Stake holders’ objectives.

1.3 The key responsibilities of the hotel group and the strategies

The key responsibilities that should be possessed by the Hilton Hotel group can be divided in to three major dimensions.

The Customer Dimension

The Employee Dimension

Internal process and financial dimensions

The Customer Dimension consists of increment of the market shares, guest satisfaction, improve the customers profitability, increased the awareness of brand name and the increment of the MICE conversion rate. At present, Hilton Hotels group is incorporated with several partners all over the world such as double tree by Hilton, Hampton inn by Hilton. Therefore, the Hilton Hotel has got the potential to establish as the market leader. At past few decades, Hilton Hotels’ market revenue index increased from 104% to 106% and customer retention has increased Customer retention increased 6% to 56% (Balanced Scorecard Collaborative Hall of Fame Case Study on Hilton Hotels Corporation, 2003).

The employee dimension may include, adherence to recruitment procedures, conducting training and development programs completion of the performance appraisals, control of the staff turnover and control the payroll as % of turnover. Proper management of human resources with the incorporation of employees are may be the strategy behind the achievement of these targets.

Reservations efficiency, improved check-in efficiency, time and motion cleaning of rooms, food beverage cost efficiency, and control property maintenance may be the responsibilities that can be taken under the internal process dimensions. Increment of average room rate and revenue per available room, increment of non-room revenue, proper management of variable cost and reduction of fixed cost can be considered under financial dimension of responsibilities. At past few decades, RevPAR of Hilton Hotels has been increased by 2.7% (Balanced Scorecard Collaborative Hall of Fame Case Study on Hilton Hotels Corporation, 2003).

Chapter 2
Economic, Social and Global Environment
2.1 Planned and mixed economic systems and impacts

Planned economy is an economic system in which the government directs the whole economy of a country. This economic system is driven by the central government and it may control and makes critical decisions regarding the production and supply of goods and services. The planners may decide what should be done regarding the production process and hoe to direct lower-level enterprises to produce those goods in collaboration with national and social objectives. Under the planned economy, state sector may involve in the environmental protection, maintenance of the standards of the employments and maintenance of competition and also the economic planning.

Beginning in the 1980s and 1990s, many governments of different countries, commanding over planned economies began deregulating. For an example, after fragmentation of the Soviet Union the economy is being moving towards the market-based economies by allowing the private sector to make the pricing for goods and services, production, and distribution decisions. Although most economies today are market economies or mixed economies. Examples for the countries for the existence of planned economies are as Cuba, Libya, North Korea, Saudi Arabia, and Myanmar ( Brabant and Jozef , 1991).

Considering the impacts of the planned economy on Hilton Hotels group, there may be a regulation of the production and services according to the decision which are made from the government. Accordingly, there may be economic barriers for the foreign investors and stake holders to invest their properties in relation to the hotel industry. This may negatively affect on the Hilton Hotels group also.

In contrast the mixed economy reflecting the features of both socialism and capitalism. In some occasions, it is also known as balanced economy. It is described as market economies with strong lapses, in addition to containing various government sponsored aspects. It is believed the term mixed economy should include the degree of private economic freedom mixed with a degree of government regulation process of markets. Countries may differ in relation to the relative weakness of each component. For an example, economies which are ranging from US to Cuba have been identified as mixed economies.

The economic freedom may include individual freedom, economic efficiency and also the incentives to innovation provided by competition. When considering the Hilton Hotels group, individual competition may be very important between the partners to improve their capabilities in marketing. For an example, if there is a competition between Hilton Conrad hotels and resorts and Hampton inn Hilton, the separate partners may tend to improve their marketing capabilities in order to increase their market shares. This may be beneficial for the Hilton Hotels as the mother – company. On the other hand, some times the whole marketing process can be negatively affected by the individual competition.

Referring the government side of the mixed economy, it may consists of several processes such as environmental protection, maintenance of the standards of the employments and maintenance of competition and also the centralized economic planning some situations. Those are the things that the private sector may not capable to address. Referring to the Hilton Hotels group, due to the environment protection policies implemented by the government, the marketing process can be affected. For an example, if the government is implementing an environmental policy restricting the private access to the places with an aesthetic beauty such as beaches and forests, if the hotel group rely on that places whole marketing process can be negatively affected. In contrast, the establishment of the centralized economic planning may generate positive results in the relation of Hilton Hotels, at marketing process.

2.2 Social welfare policy and industrial policy measures in the UK

The United Kingdom can be considered as a unitary state in which central government considerably lead the most of the state activities. But, when considering the structure of some regions such as Scotland, Wales it differs in certain degrees.

Each region occupies a secretary of state and administrative department located in central government, and its own congress and executive, which participate in the region of certain central state ministries. Accordingly, the laws which apply in Scotland and Northern Ireland may differ from those in England and Wales.

This framework has been subjected to the frequent changes. The most critical changes in recent years have been the renovation of the department of social security into the department of work and pensions, the significant transfer of income maintenance to the HMRC and the flattening of the department of transport, the regions and local government, whose key social policy responsibilities were positioned in the office of the deputy prime minister and have now been resettled mainly into communities and local government.

There are some main government departments which are dealing with social policy in the UK are, the ministry of justice, the department for education, the department of health and the Department for Communities and Local Government.

Referring to the administration of the welfare, UK has undergone two major phases of modifications. The first phase was applied in for 1960s and 1970s, saw central government transformed in order to allow the planning and control of public expenditure by the treasury. The objectives of these changes were to improve the managerial efficiency and economic planning. The effect was the generation of a system in which the treasury allocated resources to departments, and departments to services.

The second phase was taken place in has led in 1980s and 1990s to modify the structure of the civil service and the administration of welfare. It consists of three major elements viz., the change of administration into agencies, the introduction of management and the formation of quasi markets.

Due to that implementation of social welfare policies, the hotel field can be affected in several ways. Formation of new laws regarding to the economy and welfare, management there were some barriers against the growing of the company. That may negatively affect on the Hilton Hotels group.

Referring to the industrial policies in UK, multi- sector industrial policy is critical. Current mainstream economic thinking believes that industrial policy is ineffective, and that market forces should determine the fortunes of companies and industries. In the credit crisis, however, the UK state and most other governments felt obliged to step in. They established a de facto industrial policy strongly favouring the financial sector, at the expense of the rest of the economy. Consequently, the part of the economy that did not fail, was left playing by the old free-market rules, heavily penalised by austerity measures implemented to reduce the budget deficit.

For the UK, there are a number of problems with the theory and practice of this approach. First, SMEs which provide majority of UK private sector employment are starved of credit despite Government entreaties for banks to lend more. This may be acts as a negative impact on the growth of the hotel industry, with no end in sight. Similar way, the private capital concentration in the shadow-banking sector remains surprisingly high, and may lead to volatility and crises in the non-banking sector. Finally, some of the UK’s competitors, such as China and Korea, already have successful, multi-sector industrial strategies.

2.3 Impact of macroeconomic policy measures in the UK and US

The belief that economic growth requires sound macroeconomic policy is a central element of in relation to the development. Even those questioning about that it may be possible to believe that macroeconomic stability is a precondition for successful economic development. At the broadest level, the macroeconomic stability of East Asian countries between the early 1960s and the late 1990s could help to explain why East Asian countries have sustained high growth rates. In contrast, sub-Saharan Africa and Latin America have endured a painful combination of macroeconomic disarray and slow growth.

As most economists would expect, improper management of macro economy could explain not only slow growth, but also why some developing countries have become heavily in obligated. Even if slow growth is attributed to problems with external arrears, the origins of a debt crisis can typically be traced back to policy decisions. Easterly (2002) finds that the group of the HIPCs had worse macroeconomic policies over 1980-97 than other developing countries, even after controlling for income levels.

At present, the global economy has deteriorated rapidly and faced with a synchronised recession in most of the world’s major economies. These developments will have a reflective impact on the UK economy and raise the prospects of an especially severe downturn.

The source of the current recession can be traced to the unsustainable rises in lending, bond, equity and house prices and compression of risk that have been evident since the start of decade across many developed economies also common for both US and UK.

As poor as economic prospects currently are the situation is being getting worse without the various policy initiatives that have been adopted. For example, the Bank recapitalization scheme has clearly helped to avoid a collapse of the UK financial sector. Therefore, those factors can be generating adverse effects on many industries especially in the hotel industry.

Chapter 3
Behaviour of organisations and the market environment
3.1 Shortcomings of market models relevant to the hotel group

Market model can be identified as a mathematical representation of the interactions among various participants in the market, variety of economic forces, and variety of choices made during the process of marketing. There are number of market models are used to explain or predict the behaviour of one or more aspects of a market. In the framework of the securities market, for example, one model may used to express the outcome on a particular portfolio and how it can be maximized.

When considering the hotel industry, there are several types of market models can be identified such as future orientation model, results managing model , proactive approach and the on going process model.

Referring to the future orientation model, strategic management implies a future-oriented decision-making process. The objective of this model is to act now in order to survive and improve performance in the future. This can be implemented as 5-10 years year plans. As a fundamental, this model can be identified as an attempt to set future-oriented objectives, to predict and assess future trends in the organisation’s environment and to devise means to ensure meeting the objectives.

According to this model, it may be difficult to predict some market trends due to the unexpected situations. For an example natural disasters may create different market trends. This may be the major draw back of this model.

Considering the on going process, the responsibility of the marketing process lies clearly with top management. Their support and commitment is a requirement for both the design and application of any strategic plan. Furthermore, managing strategically implies a distinct way of managing organisations, i.e. not sporadic efforts to solve problems, but rather a logical framework for perceiving and managing organisations and their environments. The major draw back of this method is it may be difficult to pre identify the failures of the marketing system and trends before it happens.

3.2 Impact by the different factors

Supply and demand play an important role in the marketing process. There should be a balance between demand and supply in terms of achieving the goals of marketing. When considering those factors such as income, price, weather and substitutes can create both positive and negative impacts on the hotel industry. For an example, status of the personal income can be directly affected on the demand. Because, low income people may prefer to use facilities at low level hotel industry, while high income group prefer higher standards.

Price of the good and services can be generated by the costs plus profit margin of an organization. Therefore, if the industry is not going to use proper cross cutting methods and value addition techniques, the prices may increase. It may affect on the accessibility of that goods or service. Especially in the hotel industry this can be a great issue.

Weather also can be generated both positive and negative effects on the demand. If the customers are well interested in travelling and they are willing to enjoy the aesthetic beauty bad weather may lead to problems. This also can be affected on demand.

Substitution may lead the customers away from the loyalty. If the service is available at higher quality at cheaper price they may tend to purchase that one instead of earlier service.

Considering the above facts, it can be concluded that, managing those factors is critical for the hotel industry.

3.3 Competitive strategies in the UK

Competitiveness is defined as ‘the only complete indicator that defines the concept of competitiveness at a national level is national productivity’ (Porter, 1990).

The current situation manifested by globalization and the increasing recognition of interrelations has imposed new rules of conduct: the prosperity of nations is based on competitiveness on international markets, and that of enterprises, on the integration in the worldwide value chains. Because of that, the competitiveness has become a major issue for all the actors in economy, from the regional level to the organizational level. Therefore, it is clear that importance of implementation of competitive strategies in relation to the marketing process.

Considering the tourism as a business it is a sector in which the structure of supply is extremely volatile and the solid and reliable part is the demand. Tourism can be exists for various reasons such as pleasure, business etc. People may want to travel and are willing to spend money; consequently, they may generate demand for tourism products and services. Thus, the decision to travel precedes the acts of consumption (Keller, 2005).

The key to attracting and making clients loyal is offering a remarkable experience and not just lodgings; hotel chains innovate to create a unique environment, from hotel rooms to lobbies and the restaurant. Thus, changes in the design of Marriott restaurants and in the menus – so as to reflect the particularities of different regions – have lead to up to 50% increases in sales recorded in rapport to the number of rooms occupied (Hotels, 2004).

In company with innovation, technology also can be considered as an important strategic asset that allows hotel chains to improve their performance and competitiveness. On a global scale, the role of technology in strengthening the competitive advantage of a hotel is recognized, hence its contribution to the hotel’s success (Nyheim, 2004).

Since the hospitality industry, as any other branch of services, is capital intensive, human resources may represent a source of competitive advantage for a company. Failite Ireland (2005) , in the research conducted among 3, 4 and 5 star hotels in Dublin to analyze successful practices in hotels underline the fact that the industry depends on the know-how of personnel, of the knowledge and understanding of the clients’ requirements that would make the client feel at home.

By considering the above facts, it is clear that hotel industry should follow competitive strategies to survive in the market.

Chapter 4
International trade and the European dimension
4.1 Pros and cons of trade between the UK and other countries

Because of the rapid development of the international relationship between countries, Globalization process can be considered as critical in the marketing process. Therefore, globalization process may have the capabilities of generating both positive and negative effects on trade referring to the hotel industry.

Considering the positive effects, the hotel groups can trade in the working force from the countries at a cheaper price where the working force is available at lower cost. This may lead to cutting their additional cost in relation to human resources and beneficial for the hospitality industry. Through the strong international relationship, the hotel groups’ reputation can be published and marketed. This may lead to bring in foreign investors to the country who may have the capabilities of investment for hotel industry as well as for the other industries.

Referring to the negative points of international trade, increased job insecurity of workers may play a critical role. When the industry is demanding the working force at a lower price, the workers may not survive unless they provide their services at that lower price. Except that, the uniqueness of the culture of the country can be affected through the globalization referring to the international trade. Especially, through the development of the hospitality industry there may be a tendency to develop a globalized sub culture based on the tourism. This may lead to interfere with the uniqueness of the original culture in the country.

4.2 The impact of European Union policies on UK organisations and the hotel group

The EU can be identified as is economic and political union of 27 member states which are located primarily in Europe. The EU was originated from the European Coal and Steel Community and the European Economic formed by six countries in the 1950s.

At present, the EU has grown in size by the appointment of new member states, and in power by the addition of policy areas to its responsibilities. The Maastricht Treaty established the European Union under its current name in 1993. The last modification to the constitution of the EU, the Treaty of Lisbon, joined with the EU in 2009.

EU member states keep all powers not openly handed to the Union. In some areas the EU enjoys exclusive competence. These are areas in which member states have renounced any capacity to endorse legislation. In other areas the EU and its member states share the competence to legislate. While both can legislate, member states can only legislate to the extent to which the EU has not. In other policy areas the EU can only co-ordinate, support and supplement member state action but cannot endorse legislation with the aim of incorporating national laws.

Under the exclusive competence it states that “The Union has exclusive competence to make directives and conclude international agreements when provided for in a Union legislative act.” Accordingly the monetary policy for the member is established as Euro. Not only that, the establishment of the competition rules for the internal market has been adopted. Those things can generate both positive and negative impacts on the hotel groups.

Considering the supporting competence it states that “The Union can carry out actions to support, coordinate or supplement Member States’ actions in”. Referring to that, industries, culture as well as the tourism are being regulated. This also can create positive and negative impacts on hotel group.

4.3 EMU and the economy of UK

The term Economic and Monetary Union is used as a collective term for the group of policies aimed at meet the economies of members of the European Union in three stages so as to allow them to adopt a single currency, the euro. All members of the EU are expected to participate in the EMU. The implication of UK becoming a member of EMU can be explained as both positive and negative impacts.

For an example it is clear that, Exchange rate on locking with the Euro regarding the members as well as for UK. It may improve the stability of the value of the money against the inflation. On the other way, it may negatively affect on foreign investors.

Similarly, some policies implemented by the EMU may also affect both negatively and positively on the industries.

Chapter 5
Conclusion

Referring to the mission, core values and key objectives of the Hilton Hotels group as a worldwide business it is clear that the objectives are being achieved up to the satisfactory level. Though the impacts of the sudden changes in the business environment, still the Hilton Hotels group has been survived in their business of hospitality with the proven capabilities in successful marketing.

But, when considering the market modelling marketing mix modelling is being a developing trend at innovative marketing strategies.MMM means the use of statistical analysis such as multivariate regressions on sales and marketing time series data to estimate the impact of various marketing tactics on sales and then predict the impact of future sets of strategies. It is often used to optimize advertising mix and promotional tactics with respect to sales revenue or profit. Therefore, implementation of MMM on Hilton Hotels group may improve the trustworthiness as a marketing tool among its’ major rival companies.

Nice – Jewel of the French Riviera

Salut! (Hello in French)

As the jewel of the French Riviera (Cote d’Azure), the appeal of Nice is universal. A glamorous city with blue-green beaches, year-round sunshine, fashionable boutiques, splendid museums and galleries, a vibrant and energetic nightlife – Nice is a city that truly has it all! A major tourist attraction because of its splendid beaches and spectacular landscapes nearby, Nice casts a spell on visitors with its charm and energy. A perfect destination for everyone, from backpackers to wealthy businessmen, from partygoers to art aficionados and from honeymooners to families, you could spend a fortnight here and still be left craving for more!

Best Season to Visit Nice

With year-round sunshine and cool sea breezes, there is actually no bad time to visit Nice. Summer (June to August) is the most crowded season with a horde of tourists visiting. Parties run late into the night and the Jazz Festival is held during this time. Autumn (September to November) is a great time to visit with lesser tourist activity and milder temperatures. Winter (November to March) is mild and while one cannot venture into the sea during this season, it is perfect for sightseeing with minimal clouds and pleasant weather. The Carnival is held in February and is generally acknowledged to be the best in Europe. Spring (March to May) is pretty much the perfect time to visit, with the flowers in bloom, temperate weather and fewer tourists.

Highlights (Special Things to Do in Nice)

Visit the Port – Drink in the sight of all the glamorous yachts and the colorful fishing boats arrayed together while sipping on champagne in one of the many restaurants that line the port side.
Climb up to Castle Hill (Colline du Chateau) and be rewarded with a beautiful view of the beachside and the sea.
For a glimpse of St. Petersburg in France, pay a visit to the Cathedrale Saint Nicolas. Colorful and spectacular, it holds the distinction of being the first church to be designated a Russian Orthodox Church outside of Russia!
Be enthralled by the fragrance and riot of colors at the Cours Saleya Flower Market – famous in all of Europe for the sheer variety of well-known and unusual flowers that are on display here for sale.
Take a day-trip to the nearby Principality of Monaco. Everything about this small country screams luxury – Palaces, casinos, spectacular beaches, luxury cruise ships and yachts and even a Formula One Grand Prix if you visit in May.
Try the famous beer sorbet at Fenocchio, considered the best ice cream parlor in Nice.
Visit in July to get a chance to listen to “All that Jazz” – The annual Nice Jazz Festival is held at this time and features some of the best musicians performing from around the world.
Sail to St. Tropez, the undisputed glamour capital of Europe – from celebrities to royalty, everybody who’s anybody holidays in this glitzy, resort town of azure beaches, luxury yachts and elegant villas!
Experience the quiet life of the French countryside by visiting the charming village of Eze, perched atop a rocky mountain, with its ruined castle and beautiful views of the Mediterranean Sea.
Be sure to feast on the Nicoise cuisine, especially the Socca (chickpea pancake) and the mouth-watering Pissaladiere (thick crust Pizza with a topping of caramelized onions and anchovies).
Go celebrity spotting on a day-trip to Cannes during the annual Cannes Film Festival, that attracts the who’s who of filmdom from all around the world.
Step out into the night and be entertained. Dancing to the beats all night at a disco, the thrill of gambling at casinos or quietly sipping a drink at a lounge bar – the nightlife of Nice offers you all this and more!

Attractions in Nice

Old Town (Vieux Nice)

Vieux Nice (Old Town): The Old Town in Nice is a maze of narrow streets and winding alleys that are lined with beautiful Baroque churches, elegant cafes, trendy shops and vibrant public squaresBe sure to include the Cathedrale de Sainte Reparte and the Eglise du Jesu churches, and the Palais Lascaris, once an elegant home that has been transformed into an art museum now.
Place Massena: The city’s main square, it is centrally located with the seaside to the south, the prime shopping street of Avenue Jean Medicin leading off to the north and beautiful gardens surrounding it. It retains an old world charm with many roadside cafes that one can hang out in.
Place Garibaldi: One of the larger public squares bordering the Old Town, and along the way to the Port, this square is bordered by charming cafes and elegant shops. Every third Saturday of the month, a market is setup at the square that sells all manner of treasures from antique furniture to designer handbags and even old magazines!

The Promenade

Baie des Anges: The bay that is adjacent to the city of Nice on the Mediterranean is popular for swimming. The beach is pebbly and offers a contrast from the normal sandy beaches along the Mediterranean. Swim in the waters, or relax by lying on the beachside while waiting for the famed, epic sunsets of the Cote d’Azure.
Promenade des Anglais: The runs adjacent to the bay and is a 4 kilometer long walkway that offers a leisurely stroll by the light blue Mediterranean sea. The road that runs parallel to this promenade houses many elegant cafes, hotels and shops.
Colline du Chateau: The Castle Hill is situated at one end of the Promenade des Anglais and overlooks the city. One can take an elevator or climb the 200 steps to the top, to be rewarded with panoramic views of the Old Town and the seaside.
Port Lympia: Beautiful Venetian-colored buildings line the quayside while multi-million pound yachts are parked in the sea at the port. Visit one of the many roadside cafes and restaurants and feast your eyes on the lovely yachts, home to the rich and famous tourists on their visit to Nice.

Cimiez

Musee Chagall: The Chagall Museum is a museum that is dedicated to the artwork of Marc Chagall. It houses the largest collection of paintings, sculptures and drawings by Chagall.
Musee Archeologique de Nice: The museum lies at the site of the Roman ruins and displays artefacts and sculptures from the days of the Roman Empire. The ruins of Nice are a reminder of its days as an outpost of the Roman Empire. The amphitheater here is still used to this day during the annual Jazz festival.

Gare de Nice Ville

Cathedrale Saint Nicolas: A striking Russian Orthodox Church with onion bulb domes and beautiful sculptures, this is one cathedral you wouldn’t want to miss visiting! A strict dress code is enforced that excludes short skirts, shorts and T-shirts.

Shopping in Nice

There are many shopping streets that are worth exploring in Nice. Nice boasts of high street designer brands, open air markets with a typical French character as well as large supermarkets that sell everything that you would ever think of buying. Be sure to explore the shopping delights of Nice at leisure and fill your shopping bags with the choicest of items from the markets of Nice. Bear in mind that most shops are closed on Sundays.

Avenue Jean Medicin is the undisputed main shopping street of Nice. Home to designer boutiques, high street brands and large department stores, the avenue is choc-a-bloc with some of the best stores vying for shopper’s attention.
The main pedestrian shopping street of Nice is the Rue de France that is famed for exclusive clothing boutiques. A large number of cafes and restaurants also line the street that provides a welcome option for refreshments while shopping.
The open markets of Nice are famous throughout Europe. The Cours Saleya in the heart of Old Nice is worth visiting for its famed flower market, in addition to the food, spices and fish markets nearby. Every Monday, the market is transformed into a flea market selling antiques and secondhand clothes.

How to reach Nice

Nice is a major holiday destination of Europe and well connected by various modes. Nice Airport is one of the busiest in France and has frequent daily flights to Paris as well as direct flights to almost all major European cities, as well as destinations in North Africa, Middle East and Canada. Nice is also well connected on the railway network with trains to Paris, many Italian cities and even a weekly long distance train arriving from Moscow via Warsaw and Vienna. Long distance buses connect Nice with major European cities and the motorways are a great way to reach the city from either east or the west, with spectacular drives by the coastline. Being along the coastline, Nice is extremely well connected by the sea, and all holiday cruise liners have Nice among their destinations. Ferries connect it directly to many other nearby ports.

How to get around in Nice

Nice has its own local bus network which forms the primary mode of public transport within the city. Train services are available connecting it to the other nearby tourist attractions along the Riviera. Taxis, scooters and bikes are the other ways of getting around the city.

The local bus network, known as the Lignes d’Azur is the main urban transport option for locals to get to work or school. Of greater importance to tourists is the inter-urban network called the TAM, which connects Nice with other towns on the Riviera, such as Cannes, Menton and villages like Vence.
The Tram line links the main bus station, train station, downtown and the university. It is of value to tourists other than getting them to the city center.
Regional trains operated by the SCNF link all the eastern coastal towns and are a good way to travel between the towns along the French Riviera.
Taxis are expensive and it is not always easy to find one. It is better to hire one from your hotel or from a designated taxi rank.
Cycling enthusiasts can rent cycles to explore the city and its outskirts. Nice has a public bicycle rental system and the first 30 minutes of usage is free.
While Nice is a large and sprawling city, most of the tourist and historic attractions are concentrated within the city center, around a twenty minute walking radius. Walking is a great way of getting around for tourists and exploring the attractions of foot allows visitors to drink in the sights of this glamorous city!

Top Areas of Nice

Gare de Nice Ville: The main railway station of Nice was originally built away from the city center, but the modern city has grown around the station, making it the city center. The station building is a beautiful piece of architecture. Most of the Nice hotels are concentrated around the railway station.
Promenade des Anglais: The area of Nice that began to e [populated the foremost thanks to its spectacular location by the sea, the Promenade is flanked by the Bay of Angels on one side and many hotels and restaurants on the other side.
Vieux Nice: The Old Town of Nice is a maze of alleys with many beautiful churches, cafes and shops. It is the central part of the historic town of Nice.
Cimiez: Home to the ancient Roman Ruins and the Musee Matisse, this is an elegant neighborhood of Nice that played host to Queen Victoria, who stayed at the Hotel Regina during her trips to the French Riviera.
Vieux Port: The port of Nice is a beautiful locality with Venetian style buildings and yachts and ferries crowding the quay. Yachts can also be rented from here for taking trips along the French Riviera and the Mediterranean Sea.
Palais Des Congres: This locality gets its name from the Palais Des Congres Acroplois, which is a convention center that hosts various events.

Merci! (Thank you in French)

This paper is a report on the various factors that make up New Zealand. You will find discussions of the history, significant locations, government, economy, tourism, and food.

History

New Zealand became a recognized location in 1840 when the British made it part of their empire (History, n.d.). The Maori people were the first inhabitants of the islands in the tenth century, but they were flooded by the British culture later on. New Zealand was first discovered by European explorers in 1642; however, then encounter ended in bloodshed. The next meeting took place over one hundred years later in 1769 when both the French and British arrived without each other’s’ knowing. They began trade with the Maori people, who valued highly the arrival of weapons and began the Musket Wars among enemy tribes (The History, 2014).

The British developed their plans to colonize New Zealand as they heard rumors of France’s similar ideas (The History, 2014). In 1840, many chiefs signed the Treaty of Waitangi with the British Crown. This established British law in New Zealand and created a large basis for what the country is known to be today (History, n.d.). However, with the large influx of British settlers, many hostilities grew and began the New Zealand Wars, or the Land Wars, for twenty years. By 1870, Britain withdrew its troops, “not wishing to invest any further in a costly overseas war which was likely to continue indefinitely” (The History, 2014).

Today, “New Zealand…is an independent nation within the British Commonwealth” (The History, 2014). This means that although the country is under the British Monarch, New Zealand has its own active administration for government (The History, 2014).

Map

(NZ Map, 2014)

Government

“New Zealand is a democratic country in which the Members of Parliament (MPs) are chosen in free and fair elections” (NZ’s System, 2014). Parliament is made up of the House of Representatives and the Governor-General. The House of Representatives consists of 120 members, while the Governor-General is a representative of the Queen. The 120 members are elected by vote and are allowed in office for a term of three years. They hold the New Zealand government accountable for its actions and policies and pass laws over the unwritten constitution. New Zealand is defined as a constitutional monarchy, and so they have Queen Elizabeth II as the Head of State. The Queen and Governor-General “remain politically neutral and do not get involved in the political contest” (NZ’s System, 2014). New Zealand also has lower levels of government bodies, such as territorial local authorities, district health boards, and school boards of trustees (NZ’s System, 2014).

Economy

With a population of around four and a half million, their current GDP is around $132 billion at a 2.5% growth (New Zealand). A third of this GDP is made up by the export of goods and services. New Zealand’s economy runs on free market principles through a mixed economy. Its three largest economic sectors are manufacturing, services, and agricultural (Overview, 2014). New Zealand’s currency is called the Kiwi dollar and was “amongst the top 25 sovereign currencies in the world” at the end of 2012 (Economic Overview, 2014). Today, the Kiwi dollar equals about $1.29 in US Dollars (Rates Table, 2014).

Visiting Cities

Auckland – While it is the largest city in New Zealand, home to over one and a half million people, it is not the capital. Auckland is located near the top of the North Island and is the main transport hub into the country. Its location touches into beaches and rainforests, but also volcanic areas. The region has 48 volcanic cones, which provide for great views of the city and harbor (Destinations, n.d.).

Rororua – This city is south of Auckland, but is still on the North Island. “Rotorua is known for bubbling mud pools, shooting geysers and natural hot springs, as well as showcasing [their] fascinating Maori culture” (Destinations, n.d.). The bubbling mud pools are caused by the Pacific Rim of Fire: a “geothermal wonderland.” With the surrounding nature, Rotorua is a home-away-from-home for many adventure activists. It has world-class mountain bike trails, as well as horse riding, lake swimming, bungy jumping, ziplining, and more (Destinations, n.d.).

Napier – This city is located within Hawke’s Bay of New Zealand. It is known mostly for its art, architecture, culture, and history of the 1930s. The reason for this is that an incredible 7.9 earthquake hit Hawke’s Bay destroying a vast majority of Napier’s buildings and killed almost 260 people. “Rebuilding began almost immediately, and much of it was completed in two years” (Destinations, n.d.).

Wellington – According to Lonely Planet, Wellington is “the coolest little capital in the world.” It is located at the southern end of the North Island touching the harbor. It is known for its arts and heritage with many museums, art galleries and theatres. This city continues the adventure with more mountain bike trails and kayaking. New Zealand’s national museum, Te Papa Tongarewa, is located in Wellington too (Destinations, n.d.).

Christchurch – This city is fairly large taking over a majority of the middle of the South Island. It lies along the ocean and touches the Alps. To the 340,000 residents of the city, it is known as ‘The Garden City.’ While this location continues the historic beauty and forest-filled adventure, much was destroyed in 2011 from an earthquake. A large portion of the neo-gothic architecture in the central city was ruined along with many other buildings. Despite the destruction, Christchurch still hosts much beauty and fun. A special attraction is the Orana Wildlife Park, which is an open range zoo (Destinations, n.d.)!

Queenstown – This is the southern-most city to be visited on the trip in the South Island. According to New Zealand Tourism, Queenstown has become “world famous for its iconic scenery, friendly people, golf courses, wineries…bungy jumping, sky diving, canyon swinging, jet boating, horse trekking, and river rafting all year round” (Destinaitons, n.d.). Currently, most notably, area around Queenstown is recognized as the makings of Lord of the Rings, with locations that helped to create Middle-earth. Queenstown is clearly the most visited location in the country with a population of 19,200, but over two million visitors every year (Destinations, n.d.).

NZ Tourism

In 2011, New Zealand hosted over two and a half million visitors, and has expected that number to grow by over 650,000 each year (Tourism Factsheet, 2012). With tourists from around the world, there are some key differences to New Zealand (Key NZ, n.d.).

The currency is a dollar, but the make-up is different from that of the US. New Zealand has coins valuing 10, 20, and 50 cents as well as $1 and $2 – then bills of $5, $10, $20, $50, and $100. Banking is generally the same and allows for exchanging currencies (Key NZ, n.d.).

For driving, the lanes are swapped with drivers on the left side of the road. New Zealand also uses the metric system, where travel is measured in kilometers instead of miles. Other driving laws are the same: must wear a seat belt, no mobile phone usage, and no drinking and driving. Visitors from other countries can drive in New Zealand for up to 12 months with their home country license (Key NZ, n.d.).

New Zealand entertainment is made up of three parts: food, spirits, and fun. The cuisine style is tied to mostly Eurasian countries like Thailand, Malaysia, Polynesia, and most of Europe. New Zealand is most well-known for meats like lamb, pork, and venison, as well as seafood such as salmon, crayfish, bluff oysters, mussels, and scallops. The wines of New Zealand are remarkable and are desired around the world. While people in the US must be 21 to drink alcohol, they must only be 18 in New Zealand. Also, unlike than many states in the US, New Zealand has six different casinos throughout the country (Key NZ, n.d.). Aside from all of the scenic adventures in the forests, beaches, mud pools, etc., New Zealand played host to the Lord of the Rings films. “Since 2004, an average of 47,000 international visitors each year have visited a film location” (Sector Marketing, 2013).

Another small, but notable difference is the time zone. “New Zealand is one of the first places in the world to see the new day” – being 12 hours ahead of the GMT (Key NZ, n.d.). In comparison to the US, New Zealand is 18 hours ahead. A shocking factor when traveling to and from New Zealand is losing and gaining a day, which happens because of crossing the International Date Line. While this time difference is very large, a similarity is the use of daylight savings time, which a majority of the rest of the world does not use (Key NZ, n.d.).

Food Delicacies

In the Maori culture, a hangi feast is recommended (Destinations, n.d.). The hangi is a method of cooking, which has been used by the Maori for over 2000 years. To cook the food, it is placed in a pit oven which has heated rocks buried inside. While it is a well-known way of cooking, it has become very traditional and is only used on special occasions. The style of cooking is typically used for chicken, seafood, and vegetables, but can also be used for steamed pudding (Food & Wine, n.d.).

New Zealand has some of the most famous seafood in the world. Marlborough green-lipped mussels are not only delicious, but are known to have health benefits such as arthritis relief. Bluff oysters are especially desired in New Zealand and around the world – they even have their own festival in May: the Bluff Oyster and Food Festival. New Zealand also hosts a scallop festival in September called the Whitianga Scallop Festival. The forth seafood delicacy is called Whitebait. They are tiny fish caught during the springtime and are often made into fritters (Food & Wine, n.d.).

Works Cited

Destinations. (n.d.) Retrieved December 29, 2014 from http://www.newzealand.com/us/destinations/

Economic Overview. (28 Oct, 2014). Retrieved December 29, 2014 from https://www.newzealandnow.govt.nz/investing-in-nz/opportunities-outlook/economic-overview

Food & Wine. (n.d.). Retrieved December 29, 2014 from http://www.newzealand.com/us/feature/favourite-new-zealand-foods/

History. (n.d.). Retrieved December 29, 2014 from http://www.newzealand.com/int/history/

Key New Zealand Facts and Information. (n.d.). Retrieved December 29, 2014 from http://www.tourism.net.nz/new-zealand/about-new-zealand/keyfacts.html

New Zealand. (n.d.). Retrieved December 29, 2014 from http://www.heritage.org/index/country/newzealand

New Zealand Map. (20 Nov, 2014). Retrieved December 29, 2014 from http://www.mapsofworld.com/newzealand/

New Zealand’s System of Government. (19 Dec, 2014). Retrieved December 29, 2014 from http://www.elections.org.nz/voting-system/new-zealands-system-government

Overview of the New Zealand Economy. (9 Apr, 2014). Retrieved December 29, 2014 from http://www.treasury.govt.nz/economy/overview

Rates Table. (29 Dec, 2014). Retrieved December 29, 2014 from http://www.x-rates.com/table/?from=USD&amount=1.00

Sector Marketing: Information on key tourism and special interest sectors. (10 Apr, 2013). Retrieved December 29, 2014 from http://www.tourismnewzealand.com/sector-marketing/film-tourism/fast-facts/

The History of New Zealand: a brief overview of the pre-historic, colonial and modern periods. (29 Dec, 2014). Retrieved December 29, 2014 from http://history-nz.org/

Tourism Factsheet. (9 Aug, 2012). Retrieved December 29, 2014 from http://www.immigration.govt.nz/migrant/general/generalinformation/media/tourism+factsheet.htm

Abstract

Space tourism may be vocabulary to majority of people alive today. In well developed countries however, it is turning out to be the next must die for holiday experience for world billionaires’. It is expensive, adventurous, exciting, stunning and absolutely un-exploitable. Since the first space tour in 2001, the rich have stamped their foot on the fact that what they can do, the poor cannot and that where they can go, the poor will not reach either. Do not want to be in the same grounds with the poor, and the poor do not have what it takes to play in the same league with the rich. In the question of fun, entertainment and leisure, the rich will take extra ordinary measures to do what they enjoy doing in seclusion while at the same time, making not only news but history.

It is no surprise that in the just past decade, individual billionaires such as Sir Richard Branson of Virgin Atlantic and Paul Allen of Microsoft among other few names have seen their fortunes privately propel them to moon, while the key focus on this paper has been the seven (7) up to date space tourists, among them Dennis Tito. There are no limits to the extents these individuals will go to make their dreams come true.

There are challenges facing this industry and the objective of this paper is to champion for change towards the better of this industry. Chief in the subject of this paper is development of a new space vehicle for future space travels. Indeed, one of the ways to solve a problem is by ignoring it but the only way to solve this is by taking action and in this understanding, development of a space vehicle is not only necessary but unavoidable, not only a viable venture but an honorable accomplishment.

Table of Contents

Abstract 2

2.1.1 Introduction 4

Development of New Space Vehicle for Future Space Tourism 4

2.1.2 History of Space Tourism 5

2.1.3 Present day Space Tourism 6

2.1.4 Challenges in Present day Space Tourism 11

2.1.5 Viability of Development 12

3.0 Conclusion 12

Works Cited 13

2.1.1 Introduction
Development of New Space Vehicle for Future Space Tourism

Spencer and Rugg (12) define tourism as tour made for amusement, fun and relaxation or commercial purposes. People who travel and stay away from their places of residence for more than twenty four hours but less than a year with goals as outlined above are considered tourists. One could visit a coastal resort, a foreign country, an amusement park, an animal orphanage, a camp site or a historical monument among other sites with regards to where one feeds their amusement. Globally, tourism has grown outrageously over time. In fact, in 2008, well over 900 million (nine hundred million) international tourists were recorded (Goeldner and Ritchie, 19). Receipts amounting almost US$ 1 trillion (one trillion US dollars) were accounted for. According to the Great Britain Parliament, this was an increase of about 2% with relation to records of the previous year, 2007 (24). Tourists only go to attraction sites. There is little development in tourism in terms of attraction sites and therefore as time passes on, outgoing tourists shall literary exhaust the available tourist sites.

If any community, country or company is going to keep enjoying revenue from tourism, they are left with no option but to invent and explore. At the wake of the 21st century, attempts towards such efforts of invention and exploration have not been taken for granted. In Dubai for instance, construction of the palm islands (the only manmade islands on Earth) in the beginning of the millennium has attracted bursting numbers of tourists, making Dubai the largest tourist destination in the Globe (Conrady and Buck, 27). What happens when those that are willing and able to be there have been there? There is no more attraction left. Tourists find no pleasure in revisiting a site. The solution to this is unquestionably more invention. On the bit of exploration; land, water and space are the chief ingredients. There may not be much left to discover on land and water but every extra bit of exploration into space has left astronomer’s mouths agape. In 2003, during a space survey by astronomer Mike Brown, Chad Trujillo and David Rabinowitz at Palomar Observatory’s Samuel Oschin telescope, a new dwarf planet was discovered. It was named Eris in 2003 (Collins and Powell, 81). According to leads from NASA, every effort to build a better telescope is literary equal to a new special discovery. Out of human quest for knowledge and experience, discovery hasn’t just been enough. In this understanding, a new form of tourism has come to birth; Space Tourism. Space tourism may be vocabulary to majority of people alive today. In well developed countries however, it is turning out to be the next must die for holiday experience for world billionaires’. It is expensive, adventurous, exciting, stunning and absolutely un-exploitable.

2.1.2 History of Space Tourism

The history of Space Tourism draws us back to the period just after the Second World War. Countries healing the aftermath of war were as well seeking recognition and acknowledgement achievement. The soviet wasn’t lagging anywhere behind. In 1960, Soviet authorities dreamt together and joined hands to live the dream. They wanted to go to space. Not looking back, a program by the name Soviet Space Program was launched. Twenty men were selected were selected from the Soviet Air Force, among them Yuri Gagarin. These were prospective cosmonauts (Dillingham, 39). In the next couple of months, they were to be intensely trained and tested. They were subjected to various physical and psychological experiments. By the end of the experiment, Yuri and Gherman Titov qualified for the tour. On the other hand, aeronautical engineers were working on designing the first space ship to host the two men on their tour to space. The Soviet spaceship named Vostok 1 was the automobile behind this tour. Poorly developed in relation to today’s space ships, an anonymous writer describes it as, “a tin-can sitting on a bomb”. The journey was designated for 1961. Everything basically went according to plan. On 12th April 1961, Yuri Gagarin became the first man to set out on a tour to space. It was such a bold step to take given no one had ever left our home Earth before. How does it feel? Shall he make it back? Could he meet God? These must have been the questions in peoples’ minds. Their answers were to be answered in a few minutes.

One hundred and eight minutes later, Gagarin was back and the rest is history. America in its never dying dream could not stand the achievement of Soviet (Dillingham, 93). The designed a more complicated ship and took a more risky step. Apollo 11 was headed for moon. No one believed it, the world stared in amusement. An American Air Force Pilot, Neil Armstrong, among other crew members were the travelers in this mission. On 20th July 1969, Neil Armstrong became the first man to walk on the surface of moon. Apollo 11 had left Earth on 16th July the same year in Florida and on 24th July, it landed back to Earth in the Pacific Ocean. Other legends had been born. America had beaten Soviet in the Cold War Space race (Kortenkamp and Fox, 114). This accomplishment was a feat in Space Exploration and the key opening to space tourism.

2.1.3 Present day Space Tourism

With the increase in number of world millionaires and billionaires, there has come a human distinction on basis of class or caste. Lives of individuals today differ more than any other period in history. Where we live and how we live, when we eat and what we eat, what we enjoy and where we enjoy it are the defining lines of the class to which one belongs. The rich do not want to be in the same grounds with the poor, and the poor do not have what it takes to play i9n the same league with the rich. In the question of fun, entertainment and leisure, the rich will take extra ordinary measures to do what they enjoy doing in seclusion while at the same time, making not only news but history (Otto, 78).

It is no surprise that in the just past decade, individual billionaires such as Sir Richard Branson of Virgin Atlantic and Paul Allen of Microsoft among other few names have seen their fortunes privately propel them to moon. There are no limits to the extents these individuals will go to make their dreams come true. At this point, it is worth discussing the present day space tourists, their preparation for the tour and the tour itself.

To begin with, is the world’s first Space tourist Dennis Tito of America. Sixty year old Dennis’s visit came following the just collapsing Soviet Union. The Soviet was running bankrupt and one sure way to get back to its feet was to raise lump sum amounts by offering private space visits for up to US$ 20 (twenty US million dollars). Dennis Tito a former engineer at NASA then was in for the deal (Pelt, 34). He paid the sum and he was to take a three week intensive training on cosmonaut. The Soviet on the other hand is preparing the ship the will incubate the journey man with the rest of the crew to the only resort in space, the International Space Station (ISS). The Soyuz TM-32 is the craft in focus. It has been designed by the Soviets. It is spacious enough to comfortably host three individuals. On 28th April 2001, the day of departure, there are three men in the crafts belly, one of them Dennis Tito the space tourist and two Russian trained astronauts. Soyuz cruises problem free into space and docks automatically into its destination, the ISS, two days after departure. After 9 days, the crew is back to earth and the safely land. Not much is told on whether or not the ship developed any mechanical difficulties but unproved sources say that in his speech back home, Tito said he got scared at some point when the craft did not “respond as instructed” technically, on their way back home, but the God of the universe saved them.

Mark Shuttleworth, an African entrepreneur and South African to be precise, became the Second to travel to space as a private tourist (Pelt, 41). Mark, born in Free State South Africa studied in African schools for all his education (Pelt, 42). He went to college for a degree in the University of Cape Town where he graduated with a degree in Finance and Information Systems. Being an entrepreneur, he has been involved in a series of investments from which he has managed a worth of well over US$ 225 (two hundred and twenty five million dollars). By 2002, Mark felt rich enough to up his game with regards to entertainment and recreational activities. His goal was to reach space, and go down in history as the World’s second Space tourist. The rocket for the journey this time round is Soyuz TM booster, a little modified compared to Tito’s ship. On board to the ISS is an equal number of crew. The name of the mission is Marco polo and according to Barmin, the chief engineer in charge of the launch pad, there is no cause for alarm as everything is under control. Barmin says, “Everything is proceeding normally and quietly.” For this reason, the Journey commences on the designated date, on April 25th 2002 (Rycroft, 37). Eleven (11) days into the journey, crew is back on Earth and Mar reports that he is sure to fly again as opportunities in life keep knocking on our doors. He describes it as a tremendous experience of leisure and learning, emphasizing that his wish is to learn more. There are no complains by any members of the crew but often, silence should not be taken for contentment.

After the first two private tourist visits to space, five more individuals have joined this list. Greg Olsen, an American born and raised in Brooklyn, is known to have lived both phases of poverty and riches in his life. He is known to have joined the Army for inability to maintain his grades high in high school. Later, after thorough counseling, he joins college and as if he was an all time academic star, he graduates with a Master’s degree in Material Science. Greg is a go getter, a large risk taker in investment and out of his personality; he becomes the third space tourist when he and two crew members set out on their tour to the ISS on 1st October 2005 (Spencer and Rugg, 56). Through the eleven days of their tour, the crew is traveling in the Soyuz TMA-7, a modification of Marks Craft.

However, this time, the space tourist is not going to be silent and describe everything as not even awesome but at least okay. Olsen steps out of the cocoon and states that the implication of “space touring” is meeting the cost and then enjoying the ride which he further claims is not the case. He feels cheat after such a lump sum pay of cash and intensive two year training at the Russian Space Agency, the tour was not neither as expected nor worth the cost. We are hereby forced to question the problems facing space adventure limited. However, space visits do not stop here there. Anoushe Ansari an Iranian engineer and entrepreneur who co-founded Prodea Systems became the first woman and fourth in history of mankind to leave for space on a tour. Ansari left for the ISS just after her 40th birthday on 18th September 2006 (Kortenkamp and Fox, 88). Her journey lasted twelve (12) days and on 29th September the same year, the crew landed back safely. Ansari has greatly been honored by various distinguished organizations, universities and corporations around the world. Tyurin, one of her crew mates though skeptical at first later described Ansari as very professional adding that he felt like he had worked with her for a decade or so. The world’s fifth space tourist is Charles Simonyi. Simonyi is a Hungarian citizen who having graduated in Electrical and Electronics Engineering went on to work with Microsoft in the 1980s. His innovative nature saw him start his own company called Intentional Software through which he aims at marketing his idea of intentional programming. Of all space tourists, Simonyi seems to enjoy these rides the most, having drawn into the Russian Space Adventure deal twice in 2007 and 2009 respectively.

Consequently, he seems more adventurous and excited in the deeds he performs while in space. For instance, He makes numerous radio calls expressing his feelings to individuals back in Earth. In one of his interviews, Simonyi says, “It is amazing how it appears from the blackness of the sky. It was very, very dramatic. It was like a big stage set, a fantastic production of some incredible opera or modern play. That’s what I was referring to when I said I was blown away” (Goeldner and Ritchie, 16). After Simonyi’s visit, Richard Garriot, a British American game developer follows suit. On 12th October 2008, Richard heads on a twelve (12) day tour to ISS. His journey is successful and the crew is back on 23rd October the same year. Most recently has been the tour of Guy Laliberte of Canada. The early life and academic background of Guy are not well known. Guy is a reputed poker player and a world re-known entrepreneur. His life is however surrounded by a selfless dedication to philanthropic acts.

In fact, his mission which He himself named “Poetic Social Mission” was aimed at world awareness and campaign for water problems faced on earth by not only mankind but all life in it. This is one of the most acknowledgeable positive influences in space touring which has in fact led Guy to various Awards and recognitions around the globe. This is the far Space Tourism has come at the moment. Up to date the only company manning these space visits is Space Adventure Limited of Russia. This makes it a sole player in service provision which limits the quality assurance capability of the company in terms of service delivery. This is hence the genesis of the problem.

2.1.4 Challenges in Present day Space Tourism

A careful consideration of the trends highlights on several challenges facing the space vehicles used in space touring today. The main challenge has been the cost of air travel. Due to the sole-man-ship in provision of the travels, Russians hike the costs of travel without chance for bargain as any willing space tourist has no choice but to rely on Russia pricing. This has scared away millions off willing but unable parties as the prices are way above the ceiling for majority.

Considering the time taken to train individual tourists for just a few day visit calls for action in modification of the vehicles used. There should be simple user friendly vehicles whose duration of training should not take more than a few days, a month at most. It is rather unreasonable to pay US$ 20 (twenty million US dollars) for a space visit and to be denied chance to make such a visit on the basis of one’s performance during the training (Conrady and Buck, 28).

Accessibility of the current vehicles is largely limited. Efforts to push towards signing the agreement between the prospective tourist and the respective company is more or less like signing a treaty between an individual and a country. According to records, it takes more than half a year to complete the document exchange process with regards to the expression of intention to tour space by the individual tourist and approval of the same by the relevant Russian authorities. However, with a more accessible commercial Space visit vehicle, the duration of time taken in paper work could be immensely reduced.

Lastly, relying on the current vehicles has an effect of limiting innovation and invention. If we are going to push human race to the next level, we ought to give equal chance to all for innovation and invention. Through innovation, better programs could be drawn in line with the missions of space tourists other than the selfish agenda of the Soviet to raise funds and get back on its feet. Inventions never stop; if explorative measures are channeled in line with space exploration, and then it goes without say that space tourism will never reach a peak!

2.1.5 Viability of Development

The first steps in space tourism have been all successful. Since the first space tour in 2001, market research has shown that there is a vast demand for Space trips, if only it were possible. Economically, when demand is huge, maximum profits are best attained by a reduction in price of good or service and subsequently an increase in sale of the product in question. This approach targets the proportion of market share, especially in markets faced with stiff competition. According to Gregory Stephens, an economist of the 21st century, the establishment and sustainability of any commercial activity is entirely depended on the market share held by the transacting party (Collins and Powell, 72). If the same principles are applied in this Space Tour Venture, it goes without doubt that the viability of this development is literary guaranteed.

3.0 Conclusion

Living in the 21st century has proved a time for humans willing to develop only. In the field of Space Tourism, the players are not yet near catching any sleep. There are challenges facing this industry and the objective of this paper is to champion for change towards the better of this industry. Chief in the subject of this paper is development of a new space vehicle for future space travels. Indeed, one of the ways to solve a problem is by ignoring it but the only way to solve this is by taking action and in this understanding, development of a space vehicle is not only necessary but unavoidable, not only a viable venture but an honorable accomplishment.