Category: Free Essays

CHAPTER THREE

COMMUNITY PROFILE OF THE WA MUNICIPALITY

Location and Size

The Upper West Region is located in the north-western part of Ghana and shares borders with the La Cote D’Ivoire to the north,-west, Burkina Faso to the north, Upper East to the East and the Northern Region to the south. The Wa Municipal Assembly was created out of the then Wa District in 2004 with legislative instrument (L1) 1800 in pursuant of the policy of decentralization started in 1988. The Assembly is empowered as the highest political and administrative body in the Municipality charged with the responsibility of facilitating the implementation of national policies. Under section 10 of the Local Government Act 1993 (Act 426), the Assembly exercises deliberative, legislative and executive functions in the District. By this act, the Assembly is responsible for the overall development of the Municipality. The Wa Municipality is therefore tone of the eleven administrative areas (District Assemblies) that make up the Upper West Region (UWR) of Ghana. The Municipality shares administrative boundaries with Nadowli District to the north, the Wa East District to the east and the Wa west district to the west. The Municipality lies between latitudes 9?50!N to 10?20!N and between longitudes 9?40! W and 10?15!W. It has an area of approximately 234.74 km2, about 6.4% of the area of Upper West Region. The implication of the location of the municipality for development is, enhancing bilateral trade and commerce with Franco phone countries. The Wa town has the potential to grow and be upgraded into both an industrial and commercial hub for the north-western corridor of Ghana. The Figure 1 (map) below shows the location of the Wa Municipality with some of the peri-urban communities that fall victim of the rapidly urbanizing process in the municipality.

Demography

The Upper West region is the youngest region in Ghana. In 2010, the population of the region stood at 702,110 with a growth rate of 1.9% per annum. According to the 2010 population and Housing census, the Wa Municipality has a total population of 107,214. Currently, the total population of the municipality stands at 127,284 (male: 61,826/female: 65,458) with an urbanized population of 71,051 (GSS, 2012) representing 66.3% compared to the national urbanized share of 50.9% and the regional urbanized share of 16.3%. This also implies the Wa Municipality alone accounts for a 62% share of the region’s urbanized population in the year 2010. The Municipality is also reported as having an urban population growth rate of 4% as compared to the national urban growth rate of 3.4% (Wa Municipal, 2012; GSS, 2005; GSS, 2012). The population structure of the Wa municipality revealed a preponderance of the youth over the aged and females (51%) over males (49%). The youth form 49% of the total population with a potential working population of 47% and 4% aged. This means a high dependency ratio since the economically active population is 47% compared to dependent population of 53%. The population density is 542 persons per square kilometers with its associated development implication in the areas of housing, education and health facilities, environmental sanitation, water supply, pressure on land and socio-economic infrastructure due to the rapidly urbanising township. This raises the issue of population management, specifically, housing, land use planning, streetism, conflict management, to secure the future of the municipality.

The gender implication of the above includes programming for women, mother and children to provide for peculiar health, educational and economic needs and strengthening institutions for effective governance and protection of the vulnerable and excluded and also ensure human rights especially for women. A second implication is that the youthfulness of the population requires the provision of social infrastructure especially schools, creches, day nursery, primary and junior secondary schools, healthcare services especially family planning, adolescent and reproductive health services. Thirdly, there is the need for skills development programmes that will provide the youth with employable skills to address current and future unemployment problems. These implications are linked to population management issues such as enhancing effective resource mobilization, human, financial and material resources for the provision of basic socio economic infrastructure and services in the educational and health sectors. There is also the need for capacity building and institutional strengthening for the staff of the municipal assembly and other sector departments and the need to embark upon vigorous population management programmes and employment creation for the youth. The existence of educational facilities universities, Polytechnics, long distance learning centers, vocational and technical institutions, availability of electricity, water, banking, telecommunication and transportation facilities employment opportunities and availability of agricultural fertile lands in the Wa town are responsible for the current rural exodus of populations into the city centre leading to the expansion of the urban centre towards the peri-urban communities in response to the influx of populations and developments.

Relief, Drainage and Topography

The Municipality lies in the Savannah high plains, which generally, is gently undulating with an average height between 160m and 300m above sea level. The gentle rolling nature of the landscape implies that the topography is no barrier to agriculture and other physical development. The low lying areas are found in the following localities; Charia, Zingu, Kperisi to the North and Piisi, Dapouha, Boli, Sing, Biihe and Busa to the South. These manifest in the form of valleys that collect and retain water during the rainy season and are therefore suitable for rice cultivation and livestock rearing. These low lying areas have further given rise to two main drainage systems, the Sing-Bakpong and its tributaries to the South and Billi and its tributaries to the North. The streams are seasonal and thus dry up during the long dry season thereby reducing available of water for agriculture, domestic, industrial and constructional uses. This implies the provision of dams, dugouts and rainwater harvesting in order to provide adequate water to meet the domestic and agricultural needs of the increasing population in the area.

Weather

The climate of the Wa Municipality is characterized by long, windy and hot dry season followed by the short and stormy wet season. The dry season occurs between November and April. The north eastern trade winds from the Sahara desert precipitates the cold harmattan winds between November and February which brings with it coughs, cold and other respiratory diseases and also skin diseases. The hot season records high temperatures with a peak of between 40⁰C and 45⁰C in March and April causing dehydration and incidence of cerebral meningitis. The effect of climate change is becoming more manifest of late due to human activities in terms of bush burning, felling of trees, poor farming practices and infrastructural activities. The wet season lasts between April and October. The annual mean rainfall volume of between 840 mm and 1400 mm is sparsely and poorly distributed over the months. The rainfall pattern is erratic and punctuated by spells of long droughts and heavy downpours and floods. This affects humidity levels, soil moisture levels, crop growth and general agricultural productivity.

Land use

Notwithstanding the fact that the municipality is the commercial hub of the upper west region, agriculture remains main the economic activity. It remains the largest single contributor to the local economy and employs about 70% of the active population. The main staple crops grown are millet, sorghum, maize, rice, cowpea and groundnuts cultivated on subsistence basis. However, soybeans, groundnuts, Bambara beans are produced as cash crops. Economic trees within the municipality are sheanuts, dawadawa, mango, baobab and teak.

The vegetation cover of the area is guinea savanna woodland, which is made up of grasses and tree species such as Butylosternum Paradoxum (Shea tree), Parkia biglolosa (Dawadawa), Adansonia Digitata (baobab), Anarcadium occidentale (cashew), Acacia, Ebony, Neem and Mango among others. There is a marked change in the plant life of this vegetation zone during different seasons of the year. The vegetation in this area is thus open and dominated by short grasses. In the wet season, the area looks green and in the dry season, the grass dries and most of the trees shed their leaves and prone to bush fires. Human activities such as firewood harvesting, charcoal burning, farming, quarrying, construction etc. are all combined to modify the natural environment. The Municipality lies in the Savanna high plains, which generally, is undulating with an average height between 160 and 300 m above sea level and has two main drainage systems, Sing-Bakpong and its tributaries to the South and Billi and its tributaries to the North. The streams dry up during the long dry season thereby reducing available water for agriculture, domestic, industrial and construction users. Apart from the Wa central-the capital of the municipality, there are eight peri-urban towns within the municipality. However, the study would focus on the four fast urbanizing communities (Busa, Kpongo, Charia/Loho and Kperisi) located almost equidistance from the municipality.

Economy of the Wa Municipality

The structure of the economy of the municipality has not changed since 2009. It is still dominated by agriculture (about 70%), followed by commerce (about 9%) and industry (about 3%). Other key sectors of the economy are transport, tourism, communication and energy. Peoples’ sources of income for livelihood depend on the economic activities they undertake, the level of diversity and the technology or know-how used. Comparatively, the diversity of the economy of the municipality is very limited and dominated by agriculture, which is equally not diversified. Wa municipal falls within the Savannah Zone where poverty has been above the national average. Currently, nine (9) out of every ten is said to be poor. Average households incomes are very low and bread winners few. An analysis of household’s expenditure shows that about 80% of their income is spent on food and 20% on rent, education, health, utility charges and funerals. The high level of poverty is attributed to underdeveloped social overhead capital. Social overhead capital, which supplies services (power, transport, storage, communication, education) that are indispensable to modern industry are under developed. The under development of this capital base is a constraint or bottleneck to economic growth and development in the Municipality.

Agriculture

The agriculture sector provides more than 60% of the municipal population sources of jobs, livelihood and business. It is a sector crucial to the local economy, because it is currently the major provider of jobs. Despite its strategic role in fighting poverty, it is under modernized. Traditional technologies still dominates agriculture production, processing, storage and marketing. Programs are therefore required to enhance development of sustainable agriculture production systems e.g. irrigation systems, enhanced farmer education and training, enhanced technology transfer in agriculture production, storage and enhance corporate development for marketing. Agro-Industry is an immense potential waiting development. The investment potentials are many and varied.

Cereals flour: processing from Staple food crops like maize, millet and sorghum. About 5,581, 7,113and 5,180 MT of maize, millet and sorghum respectively are produced annually. About 70-80% of the production is processed at grinding mills where the possibility of food contamination is very high.

Pito Brewing: A local beverage (Pito) produced from sorghum (Guinea Corn) which enjoys a lot patronage in the municipality and the region faces the challenges of maintaining the quality/standards beyond a day, meeting preferred taste and alcohol level of consumers, packaging and traditional brewing process. Yet it is one of the major sources of livelihoods and income for women. Modernizing pito brewing has a potential of not only augmenting sorghum production but improving women income level.

Processing/Packaging: of dairy and meat products (cheese, yoghurt, sausages) for households, catering and hospitality industries: Cattle herds are about 6,696 while small ruminants’ population is about 8,457. Livestock production is still basically open range, while a growing hospitality and catering industry lack the necessary meat product.

Edible oil extraction: Shea butter, Groundnut and Cotton seed oil are extracted using traditional methods. About 6,696, 5,154, and 5,303 MT of sheanuts, groundnuts and cotton seed respectively are produced annually in the Municipality.

Fruit juice/jam extraction: Yet another emerging business area with great growth potential is fruit juice extraction. Fruits of significant economic importance in the municipality include mango, cashew, shea, “zumbringa”.

Tourism

Tourism is one of the fast growing sectors in the Municipality of Wa and awaits a lot of investment. Apart from unique attractions (ranging from natural resources, culture and entertainment), a relative good basic infrastructure, transport and hospitality base promise the municipality a unique tourist destination. These potentials notwithstanding, lodging, food and beverages facilities, and support services are inadequate and substandard. Some of the notable tourists’ attractions include; the Wa-Naa Palace (a symbol of authority of one of the three epical authorities of traditional Wa), a flat roofed magnificent traditional building with rumble stripped walls; the Dzendzen Pool, George E. Ferguson Tomb (the first agent of the Governor of the Gold Coast Colony to reach Wa, May 4th 1894), Western Sudanese style built mosques e.g. the Centenarian Mosque at Nakori, Chegli crocodile pond, indigenous traditions, buildings and culture, dance and music.

Transport

The transport system in the Municipality is made up of road and very limited air transport. The road network is about 385km comprising 256km latitude roads and 129km, surfaced roads (trunk tarred roads). The Municipality has four (4) trunk road links to Kumasi and Tamale, Dorimon/Burkina Faso, Lawra-Hamile and Tumu/Leo. This is a strong advantage for enhanced trade and tourism. However, the conditions of these are bad and inhibit transport services between Wa and these locations. The absence of a by-pass road for traffic on direct route to neighbouring Burkina Faso, undeveloped arterial roads, poor drainage network, inadequate/substandard travelers and cargo lorry parks, limited pedestrian cross walks, absence of bus stop pavements do retard the progress of the transport sector. Wa Municipality has over 300 commercial/ private vehicles population and experience over 200 Vehicles passage day the services providers are dominantly private operators: GPRTU, Metro Mass transport, STC, OA, DKM, Diamond Winners, EMEKPA and Private alliance transport. Another most predominate means of transport is the use of motorcycle. This lessens traffic situations but however causes accidents in the town. It is incumbent that for the Municipality to tap the full benefits of all sectors, transportation requires a serious development intervention.

Housing /Real Estate development

As a regional capital the municipality performs political, administrative and commercial services which demand appropriate housing for households, offices/institutions and business. However, compound housing which usual accommodate six to12 households with poor municipal services still dominates the housing sector in the municipality. The housing challenge is aggravated by a floating students’ population which lack accommodation on campuses.

Commercial Hub of the Region

The Wa Municipality is currently the regional commercial/service centre with average trading/office facilities (infrastructure). It has over 800 SME in tourism, agro business/ processing, Commerce, metal fabrication, construction, banking & Finance. The presence of some market facilities (shops), do attract people from all corners of the region to trade in the municipality. A few Modern shopping facilities are also present to ease the congested shopping situation in the municipality. The relatively large number of SMEs opens up opportunities for Partnerships/Joint Ventures The industries in the Municipality are small scale and are categorized into Agro processing, wood, Textile, metal glass, leather & hide, clay/sand/stone, art & craft. There is a high level of agro-based industries in the Municipality. To finance these industries there are about 15 financial institutions (Banking and Non-banking) in the Municipality. This place the municipality in a better position to assist small and medium scale businesses to grow.

Light Industrial Area

The Local Authority, Wa Municipal Assembly, has acquired 20 acres of land for light industries. Utilities like electricity and water have been provided. This creates an impetus for a total transformation of the economy. The Municipal Assembly is seeking potential investors to do business with. Beside the Municipal Assembly is ready to front/assist any potential investor to access land for any investment in the municipality.

Banking and Financial Institutions

The municipality can boost of over 15 banking/non-banking institutions; ADB, SGSSB, Barclays, Stanbic, APEX Bank, GCB, NIB , 1st National bank, Lawra Area Rural Bank and Sonzelle Rural Bank. There also exist Five (5) non-banking financial institutions. There are Two Credit Unions Ghana Financial Services, Comforter, DKM, Line Paradise and Sinapi Aba. They provide the necessary financial services.

Infrastructure

Infrastructure comprises water systems, communication networks, electricity (power), health care facilities, roads, streets security system among others. The available infrastructure in the Municipality is averagely adequate to promote the growth of other sectors in the region. There is the availability of water systems, communication networks, electricity (power), health care facilities, roads, streets security system that will facilitate development in the municipality.

Key Interest Areas to do Business in the Wa Municipality

Expanding production and value addition in agriculture, industry, tourism and transport
Enhancing institutional competitiveness
Effective and efficient and communication system
Engaging diversified forms of partnerships
Developing and retaining the necessary human capital for hiring and self-employment
Facilitating access to financial and non-financial support service

Commercial Casino Industry has been occurring in United States over 75 years since Nevada legalizing it. When Chef Wolfgang initiated to out fine dining restaurant in commercial casino, this is the beginning of food and beverage revolution in industry in 1992. In 1995, American Gaming Association was created. MGM Mirage acquired Mandalay Resort Group, Harrah’s Entertainment Inc. and Caesar Entertainment in 2005 and the commercial casino industry started booming and other states started legalize opening casinos since then.

The international gaming industry is expanding. Many U.S. casino companies expanded or planned to expand to other countries such as Macao, Korea, Taiwan and Singapore. The international casino industry tends to have rapidly growth as gross gaming revenue in Macao has been more than gross gaming revenue in Las Vegas strip since 2006.

“Know your enemy and know yourself, and in a hundred battles you will never be defeated.” (Sun Tzu’s The Art of War Writings). This Chinese wisdom of warfare probably helps companies deploy a better strategy in many business situations. The MGM Mirage Inc. is the largest company in the Hotel and Casio industry by revenue in the U.S., but MGM financial statement showed that company bottom-line in debt. The company was facing bankruptcy code in the early 2010. In this project, the report had been organized and presented MGM Mirage Inc. or MGM Resorts International in 4W framework:

(1) Who are we? (Company profile, Hotel and Casino industry profile),

(2) Where are we? (Sophisticated tools in Management, Technology, Marketing, Financial and Accounting were used to analyze the company position with competitor in the industry.),

(3)What are problems? (SWOT analysis) and

(4) What are solutions?

Who are we? : Know yourself
MGM History
The Beginning of Las Vegas Race:
2005: MGM Merged Mandalay Bay Group.
MGM Profile in 2009
Organization Structure
Company Strategy

The MGM Mirage Inc. strategy is to generate sustainable, profitable growth by creating and maintaining competitive advantages and through the execution of our business plan, which is focused on: Owning, developing, operating and strategically investing in a strong portfolio of resorts; Operating our resorts in a manner that emphasizes the delivery of excellent customer service with the goal of maximizing revenue and profit; and Leveraging our strong brands and taking advantage of significant management experience and expertise. (Source: MGM Mirage 2010 Form 10-K)

Current Operation

As of 2009, the MGM Mirage reported that the company has completed control of 14 casino resorts and hold 50% of investment in 5 casino resorts. In addition, the MGM Mirage also owned 3 golf courses in Las Vegas, Mississippi and California.(Source: MGM Mirage 2010 Form 10-K)

Casio Resort ( Completely owned)

Nevada

MGM Grand Las Vegas

Mandalay Bay

The Mirage

Excalibur

Monte Carlo

Railroad Pass, Henderson

Gold Strike, Jean

Luxor

Bellagio

New York – New York

Circus Circus Las Vegas

Other

MGM Grand Detroit

Beau Rivage , Biloxi, Mississippi

Gold Strike Tunica ,Mississippi

Casio Resort ( hold 50% in stock)

Nevada

City Center

(Joint Venture with Dubai World)

Circus Circus Reno

Siler Legacy

Other

Borgata, Atlantic City, NJ

Gran Victoia , Elgin, IL

MGM Grand Macau, China

Industry Analysis

Industry Analysis process is an essential assessment tools for every company to deeply understand industry current trends and opportunities. In fact, company will gain a better position and achieve a competitive advantage when it truly understanding marketplace. In the complex marketplace, the U.S. government is categorized industry with 4-digits Standard Industrial Classification (SIC) system. In addition to SIC, the North American Industry Classification System (NAICS) is a new standard for the industry. The NAICS with 6-digits code contains more details than the SIC system. The purpose of SIC and NAICS are economy analysis.

The MGM Mirage Inc. has been classified with SIC into three major categories: Hotels and Motels (SIC 7011), Coin-Operated Amusement Devices (SIC 7993) and Amusement and Recreation Services, Not Elsewhere Classified (SIC 7999). In addition, the MGM Mirage inc. also has been classified with NAICS into two categories: All Other Amusement and Recreation Industries and Hotels (except Casino Hotels) (713990) and Motels (721110). To thoroughly understand MGM Mirage Inc. marketplace, the hotel industry and casino industry had been analyzed.

Hotels and Motels Industry (SIC 7011)

The U.S. government defined a company in Hotels and Motels Industry as

“Commercial establishments, known to the public as hotels, motor hotels, motels, or tourist courts, primarily engaged in providing lodging, or lodging and meals, for the general public. Hotels which are operated by membership organizations and open to the general public are included in this industry. Hotels operated by organizations for their members only are classified in Industry 7041. Apartment hotels are classified in Real Estate, Industry 6513; rooming and boarding houses are classified in Industry 7021; and sporting and recreational camps are classified in Industry 7032.”

Recession impacts hotel industry

In May 2010, Standard & Poor’s industry report stated the hotel industry is still in an unstable condition. The industry will require a longer period to recover from the 2008 recession. Currently, the industry is operating in a difficult situation. The hotel industry is facing drastic competition that forces hotel businesses to lower room rates, which in turn results in lower profit.

The data from Smith Travel Research (STR) Inc. indicated that on average the hotel industry has lost its Revenue Per Available Room (RevPAR) since 2008. The 2008 recession has also brought the hotel occupancy rate down from 60% to 55%. In addition, average daily roommate also dropped significantly 8.8% in 2009. Moreover, room demand dropped 6% in 2009. In contrast, the supply of rooms rose 3.2% in 2009 (refer to figure1). While the U.S. government is making their way out from 2008 recession, S&P’s forecasted that the hotel industry will not return to the same pre-recession level for the next eight to ten years.

Real GDP helps the hotel industry in predicting room demand

In the hotel industry, a high accuracy in room demand elasticity estimation provides CEO with essential information for a long term planning and deploying strategies. In 2009, the research by Dr. Hanson from Global Hospitality Group – Hospitality Lawyers shows approximately a 1-to-1 relationship that holds between the U.S. Real GDP and room demand until the 2001 economic crisis. The real Gross Domestic Product (GDP) is the total output of goods and services produced in a country and adjusted for priced change. The demand is more elastic when the greater the proportion of income spent on the good. After the 2001 recession, the demand retract and continue to grow in a slower pace when compare with the real GDP. The GDP is increasing 4 times faster than the room demand does. The 5 factors that researcher believes that might have an influence GDP and room demand relationship are: Long-term deterioration in consumer confidence, Higher consumer saving rate, consumers trying to recover lost investment, new pattern of behavior and proposed levels of tax increase affecting disposable income. Moreover, in the 2008 recession, the researcher also believes that the recession might create an additional snap back for room demand.

U.S. Business and group travel

The hotel industry profitability can be influenced by a demand from business travel. According to a member survey, the Association of Corporate Travel Executives (ACTE) reports hotel expense represents, on average, 40% of all business travel expense. In addition, American Express stated that airfare will increase from 2% to 10% in 2011, and hotel rates will increase 1% to 10% (Paurowski, 2010). The survey also indicated that 35% of its member strongly considered optimizing hotel expense in 2011 and 50% of its member expressed concern regard increasing in expenses. Passenger Name Record (PNR) in Computer Reservation System (CRS) showed that cooperate travelers have shifted booking methods from Travel Management Companies (TMCs) to Online Travel Agency (OTA). In fact, 30% of its members stated that online hotel rates offered are lower than negotiated rates. The complementary items that are preferred by the majority corporate travelers are: complementary cocktails, free WiFi-internet access and comfort. In conclusion, the demand for business and group travel will likely be for cheaper rooms at lower rates with free complementary. (Michael Boult, 2010).

Domestic and international travelers

Shifts in airline schedules and passenger booking have a direct impact on hotel occupancy. According to the data from Air Transport Association (ATA) 2010 annual report, the static in figure 3 shows that domestic capacity had a declining trend since 2000, and the data also showed that passenger enplaned has dropped significantly from 743 million passengers in 2008 to 703 million in 2009 reflecting a 5.3% decrease of airline industry capacity. In fact, profit margin in the airline industry has been on the negative side. Airliners cut back routes and canceled destinations.

For international travelers, The U.S. Department of Commerce (DOC) and Office of Travel and Tourism Industries (OTTI) expect the industry growth in 2010 and gradual increase to approximately 6-9% through 2015. Five countries, excluding Canada and Mexico, that rank highest in number of visitors to the U.S. in 2010 by volume are: China (40%), Brazil (35%), Korea (35%), Hong Kong (27%), New Zealand (24%) and Australia (19%). A weakening in U.S. currency helps the hotel industry by stimulating the demand from international travelers.

Medical tourism -a little hope for the hotel industry

In the economic downturn, hotel industry needs a stimulant plan to boot-up its occupancy rate. In 2009, Reuters Health section provided some interesting facts about medical tourism in the U.S. The report indicated that U.S. health providers have lost 650,000 patients to hospital oversea such as Thailand, India, and Singapore. In addition, the health providers are predicted to lose as much as $67.7 billion in revenue in 2010. Oscar Goodman, Mayor of Las Vegas, foresee the opportunity for the hotel industry in Las Vegas. Mayor encourages a local business to support the idea of medial tourism. The medical tourism will be an alternative business in the area, the national public radio reported.

Casio Industry

Casinos are the largest revenue generator in the gambling industry. The industry provided approximately 350,000 jobs in the U.S. market. The American Gaming Association and the National Indian Gaming Association (NIGA) are the main organizations in the U.S. casino industry. The AGA encourages its members and their employee to be aligned with updated law and regulations. Moreover, AGA is a realizable source for a gaming industry providing gaming history, educational program, and statistic data on the Casino industry. In addition, the NIGA under the Indian Gaming Regulatory Act has provided Native Americans opportunities to legally run casinos.

U.S. casino trends

The casino industry has been hard-hit by the recession. According to the United States department of labor, the Mass Layoff statistics (MLS) program showed that the hotel-casino industry eliminated 13,000 jobs in 2008 (Labor, 2010). The revenue trend in the casino industry has been on a downturn for the last two consecutive years. The S&P expected a slow recovery from the casino industry.

Las Vegas, Nevada

As of 2009, the American Gaming Association reported that Las Vegas with $5.55 billion in revenue was a dominant U.S. market. According to Las Vegas Convention and Visitors Authority (LVCVA), the statistic in figure 5 showed a 2.4% increase in the number of visitors from 2009. The Las Vegas Strip gaming revenue was increased by 4.3%, but the downtown area gaming revenue was decreased by -7.3% from 2009. In 2009, the 14% unemployment rate in the state Nevada plummeted the economic trail. On a carryover impact from the economic crisis in 2008, the number of attendees at conventions, and a number of scheduled conventions and number of meetings held remained on the decline with decreases of -1.1% and -6.7% respectively. According to the Las Vegas Visitor Profile, Market Segment reported by LVCVA (2009) that 76% of Casino guests were most likely to be traveling in a party of two and average stay in Las Vegas is 4 nights. Casino guests on LVCVA survey stated that 87% of visitors called the hotel-casino directly to book their accommodation.

In 2010, S&P’s industry report estimated casino revenue on the Strip to be 35%-45% of total revenues, and the revenue from hotel rooms was 20-30% of the total revenue. A total enplaned and deplaned air passenger continued to decline. The number of air travelers accounts for 42% of all visitors. (LVCVA visitor profile: ir visitor version). The S&P’s report indicated strong growth from Las Vegas.

Atlantic City, New Jersey

The Atlantic City is a second large of the U.S. casino marketplace. The static in figure 4 shows that casinos in the area have been losing revenue -5.7%, -7.6% and 13.2% in three consecutive years. According to S&P, casinos in Atlantic City are facing heavily competition from New York and Pennsylvania.

Macau, China: New Era of Asia Gold rush

Macau is a special administrative region of China. The CIA – The World Factbook reported that, in 2006, Macau’s gaming revenue surpassed that of the Las Vegas strip, and gaming-related taxes accounted for more than 70% of total government revenue. The Macau market attracted many casino operators from Las Vegas to come and establish a new home-based outside the U.S.

In 2010, the profit in Macau market increased 9.7% in revenue from its loss in 2009. The gaming industry in Macau was expected to rise, but, S&P reported a concern about the room surplus of 40% in 2011 and 2012. In the long-term, S&P still believes that the Macau gaming industry will generate a significant profit for China.

Singapore: A hidden dragon

Singapore is the one of the most strategic locations in South-East Asia. According to Economy Watch and World Bank, Singapore is considered to be a very attractive country for new business. Sources in the Wall Street Journal on October 7, 2010 reported that the Marina Bay Sands project is a 8-billion dollar casino in Singapore, known to be the cleanest city in the world. The casino includes three 50-story structure with approximately 2,500 rooms; a casino, retail stores, dining and 800,000 square feet entertainment complex. The S&P 2010 industry report predicted that the top five markets for Singapore casinos are: Indonesia, China, Australia, India and Malaysia. In addition, the Marina Bay Sands should have no effect on Macau market because the hotel presents a more family-orientated appeal.

Legal and Regulation
Internet/Online gambling

Online gambling is illegal in the U.S. as of November, 2010. Internet Gambling Regulation, Consumer Protection, and Enforcement Act (H.R. 2266) was introduced to congress in May 2009 by Frank, Barney (Rep). The bill is aimed to Unlawful Internet Gambling Enforcement Act of 2006, which prohibits internet gambling operators from receiving money related to any online gambling that violates State or Federal law (Frank, 2010). Online gambling is also on a serious debate among AGA members regarding a safety and government regulation. The concerns regarding an online gambling are a security technology such as firewall to protect million online users.

Summary Key Fact from Industry Analysis

Room demand dropped because economic recession.

Occupancy rate dropped because dropped in demand and increasing room surplus.

Real GDP could be used as atool for the hotel industry to future demand.

Business Travel booking trends changed from Travel agency to online travel agency.

China is a number one inbound visitor by volume from oversea.

Medical tourism could be an alternative route for simulating demand.

Gaming on Las Vegas Strip continues generating profit.

Atlantic City market for casino is not pleasant after loss in profit of 3 consecutive years.

Macau is growing and generated more revenue than Las Vegas Strip.

Singapore could be a new growing casino market in South-East Asia.

Legalize an online gambling is an ongoing process.

Casino Market: Oligopoly Market Competition

In 2009, the casinos industry had revenue in total of $US 21.8 billion. To determine an economic competitive type of market in the industry, the company uses a four-firm concentration ratio as the indicator. The ratio is the percentage of total industry sales made by the four largest firms (Fig. 4). The four-firm ratio for the casinos industry is approximately 70%, which had created an oligopoly form of market competition. In oligopoly, one firm decision can have a direct influence on demand, price, and profit of competitor in the industry.

Figure 5: Companies in the casino industry by revenue

Furthermore, external assessment of the industry is a critical process for management in decision making. The Porter’s Five-Forces Model, competitive analysis tool, has been utilized for in-depth industry analysis. The model analysis is provided five perspectives in assessing the industry: Rivalry among competing firms, Potential entry of new competitor, Potential development of substitute products, Bargaining power of suppliers, and Bargaining power of consumers.

Porter’s Five-Forces Model Analysis
Rivalry among existing competitors:

MGM : Rivalry among existing competitors : HIGH

Same-size competitors

High exit barrier

Indifferent in product and service among competitors

Table x: Threat of existing competitors

The competitive atmosphere in hotel industry is high. There are a lot of competitors in industry. Furthermore, it seems that competitors compete in same dimension because in commercial casino industry, customers are not much diverse. Therefore, players in this industry found it hard to target different customers with different needs

– There are a lot of competitors with equal power and size.

– Exit barrier in commercial casino industry is high because a company invests huge amount of money, especially, building cost. Even a company wants to exit from the industry, sometimes it force to stay in because exit costs are high.

– Product and service in commercial casino industry are identical. Moreover, there is no switching cost for buyers. Thus, competitor might cut price to attract buyers.

– Fixed costs are high. In order to compete in hotel industry, a casino manager adopts revenue management. The process allows buyers to stay in same type of room in different price. Even a hotel’s products and service are not rapidly become outdated but competitive atmosphere in commercial casino industry is hot, therefore, companies cannot make high profit from this industry.

Threat of new entrants:

The threat of new entrants for hotel and motels industry is low. The industry has significant barriers to entry which include:

MGM : Threat of new entrants : LOW

Supply-side economies of scale

Demand-side benefits of scale

Customers switching costs

Capital requirements

Restrictive government policy

Position advantages independent of size

Unequal access to distribution channels

Table x: Threat of new entrants

Supply-side economies of scale: In commercial casino industry these economies hardly appear. Even a company built more rooms or more recreations in its casino, these economies will not appear. Moreover, the company has to carry more cost, more maintenance cost and more employees cost.

Demand-side benefits of scale (network effects): These benefits occur when the numbers of buyer patronize the company. However, these benefits might not occur in commercial casino industry. In commercial casino industry, a company will find advantages in location, facilities and characteristics of personal working in direct contract with customers. Therefore, having a lot of customers patronize a company will not provide huge demand-side benefits of scale.

Customers switching costs: In commercial casino industry, when customers purchase service from a casino, it is one time use. Therefore, there is no switching cost.

Capital requirements: In order to enter commercial casino industry, a company needs to finance huge budget and the industry return is not attractive. Thus this industry has high barrier.

Position advantages independent of size: These advantages are not depends on a company’s size, incumbents can have competitive advantages that not available to competitors. These advantages in commercial casino industry can stem from locations, brand identities and service.

Unequal access to distribution channels: It is not hard to establish or find distribution channels in commercial casino industry. A company could use agents or let customer books rooms via its websites.

Restrictive government policy: There might be some restriction related to commercial industry such in some area government do not allow a company to build a building that higher than 2 floors or in some countries, a company has to has citizens hold more than half of a company’s shares to operate in that country. In U.S., commercial casino industry is the most regulated and monitored industry.

The threat of substitutes:

MGM : Threat of substitutes : HIGH

Competitor

Table x: Threat of substitutes

There are some substitutes for commercial casino such as hostels, apartments or houses. Customers can stay in hostel, apartment or houses and go to gaming or using recreation facilities at casinos. If buyers concern convenience, they might prefer casino. Because they will have maids clean their room and casinos always locate in a convenience location. If buyers concerns price, they might stay in hostel. However, if buyers concern privacy, they might prefer house.

– There is no cost of switching to substitute. Buyers can change to substitutes anytime if they would like.

Hostels, apartments and house can be substitutes for casinos. They perform similar products and service to casinos, if you concern only hospitality part. However, there are some differences which made substitutes have huge different from hotels. Buyers have to determine trade-off between hotels and substitutes.

In this industry, the threat of substitutes is not high because substitutes have too many differences in facilities and service from casinos. Thus, industry’s profitability is not suffered from substitutes.

The power of suppliers:

If suppliers have power over a company, suppliers might set its price higher, limit quality of service and shift its cost to other parties. In commercial casino industry, a company uses wide range of different suppliers such as supplier for construction, supplier for food and beverages and supplier for hotel equipment. There is almost no monopoly in hotel suppliers. Moreover, only a few supplies that have switching cost such as securities equipment and suppliers did not differentiate their products. The company has to differentiate itself by choosing good location, providing well-maintenance facilities and providing supreme service. Furthermore, the company can easily find substitute suppliers. Therefore, the power of suppliers in commercial casino industry is low.

The power of buyers:

MGM : The Power of Buyer :

Table x: The power of buyer

– There are various customers in commercial casino industry. However, there are some buyers that have ability to negotiate such as group tour.

– Products and service in commercial casino industry are not much different. If customers find that a hotel that they always stay in is full, they have to stay in other hotel. They have to purchase products and service in some hotel anyway.

– Buyers have no switch cost. If buyers want to change from a hotel to a hotel, they can just check-in to another hotel without any switching cost.

– Buyers cannot produce industry’s product if buyers found that a hotel is too profitable. Buyers can switch to other hotels but they cannot produce it by their selves.

– In commercial casino industry, buyers do not stick with brands. Buyers might concerns about quality of product and service. If they find another casino that cheaper but quality and facility are same, they will switch to another casino. In sum, in commercial casino industry, buyers are relatively price sensitive.

From analysis given above, buyers in commercial casino industry have high power and seem to be price sensitive. They can press companies to lower their price and can ask for more quality and service.

Financial and Accounting Analysis

The financial information was published annually to external and internal users.

MGM Mirage Inc. financial statements had been analyzed using financial ratio analysis and information in management discussion. The median number of industry ratio in 2009 is used in this report. By the nature of hotel business, MGM contains a high fix-cost in normal business operation and profits are driven by tourism and business travel demand. MGM requires a large capital to run its hotels and casinos. In 2010, MGM is in process of development a City Center, a capital intensive driven project. The delayed of City Center project has enormous impact on MGM financial statement.

Liquidity and Financial Position
Credit Risk: Facing Bankruptcy

As of December 31, 2009, MGM is in a weak financial position because of its indebtedness.

MGM with credit rating of CCC+ operated the business with 39% on the long-term debt. The management team declared unpleasant statement about the $1.1 billion senior credit facility debt which might be defaulted on maturity date in 2010. The management suggests that MGM must extent the payback period by negotiating with their creditors. Also, management has predicted that future revenue from operation and tax refunds would help reducing MGM debt. The current and quick ratio indicated that MGM has had insufficient fund to operate its casino since 2005. With the ratio less than 1 and below the industry average in both current ratio and quick ratio, MGM has been operated on the line of bankruptcy if the company defaults on its debt.

Revenue base and mix

MGM primary source of revenue came from Las Vegas Strip. As December 31, 2009, the majority of MGM revenue came from three sources: casino (44%), hotel room (23%), and food & beverage (23%).

Casino revenue dropped 12% from 2008 and it had been on decline trends since 2007. In 2009 MGM financial statement, revenue from casino had been divided into three sub-categories: Table games (36% of total casino revenue), Slots (60% of total casino revenue), and Other revenue. The table game revenue decreased 11%, even though there is 33% increases in demand for baccarat.

Sustainability of revenues and earning

MGM profitability ratios are negative in 2010 and 2009 for some ratios. ROA in both 2009 and 2010 are negative. We can break ROA to net profit margin multiply total assets turnover to deepen our analyzing. Assets turnover ratio shows MGM’s ability to use assets generate revenues. MGM’s assets turnover ratio decreases from 2007 to 2009. Even this ratio does not decrease much during 3 year period, it made ROA go down. The main factor that has impact on ROA is net profit margin. The MGM has very low net profit margin since 2008. MGM’s bad signal shows since 2008. After its net profit margin ratio plunge to -11.86% in 2008 and -21.61% in 2009 which a major factor lowing ROA. From analyzing ROA, we can see that MGM has a problem with maintaining its profit margin. MGM’s revenues in 2008 are not much different from 2007, however, MGM cannot control operating expenses, operating expenses in 2007 exceeds revenues. In 2009 MGM revenues decreases by 17%, further, MGM’s ability to control its operating expense decreased. MGM’s operating expenses in 2009 is 114.65% from revenues. The major increase in operating expenses in 2008 and 2009 is property transactions. MGM’s ability to fulfill its short term obligation is getting better in 2009. Both quick and current ratios go up. The reason both quick and current ratios increase because in 2009 MGM carries more cash. However, MGM debt management ratios worsen. Long term debt to equity ratio increases from 2007 to 2009 results increase in total debt to equity ratio. These ratio shows MGM has larger portion of debt compare to equity. Even MGM carries more long term debt recently; MGM has interest coverage ratio high enough to pay back its interest. But this ratio trend increase in recent year.

Hotel operating statistics
Strengths
Strengths – Various portfolios of products and services:

MGM mainly operates casino resorts which include gabling, hotel, restaurant, entertainment and retail. The main operation is in Las Vegas, Nevada, the world famous gambling and entertainment center. Properties in Las Vegas include CityCenter (50% owned), Bellagio, MGM Grand Las Vegas, Mandalay Bay, The Mirage, Luxor, New York-New York, Excalibur, Monte Carlo and Circus Circus LasVegas. MGM operates outside Las Vegas includes casinos in Michigan, Mississippi, New Jersey and Illinois. Not only operate in U.S. but MGM also own 50% MGM Grand Macau ownership. Because each MGM’s casino offers different theme, amenities such as restaurants, spas, private gaming and swimming pool facilities ;and difference pricing to target each customer segment, MGM enjoy competitive advantages over competitors. Moreover, MGM is continuously reinvesting in its business to keep this competitive advantage.

Strengths-Strong Brand Recognition:

MGM operates in tourism and leisure sectors which are gaming, hospitality and entertainment in two continental. MGM offers different casino for different segment, therefore, casinos brand that are operated by MGM are recognized by people all around the world. Moreover, Forbes Travel Guide bestowed AAA five-diamond awards to Bellagio and MGM Grand in 2010.

Strengths-Location:

MGM has properties in the top destination for traveler to go for gaming and entertainment. MGM has 10 casinos in Las Vegas, the world largest gaming and entertainment center and has MGM Grand Macau in Macau, the world second largest gaming and entertainment center. The reason behind this selection, these two places are the major tourism destination not only for gaming activities but also

n

Classification of hotel facilities is not based on rigid standards. On marketplace forces, touchstones, location, mathematical function, and the definitions can change, depending and preference, but the definitions that follow are generally accepted and are the ones intended for these classifications throughout this textual matter, in some cases, personal.

A hotel usually offers guests a full range of accommodations and services, which may include reservations, suites, public dining and banquet facilities, lounge and entertainment areas, room services valet, laundry, hair care, swimming pool, gym, sauna, spa and other recreational activities, gaming/casino operations, ground transportation to and from airport, and concierge services.

Motels:

Motels offer guests a limited range of services, which may include reservations, vending machines, swimming pools, and cable television. The size of these properties averages from 10 to 50 units. Motels are usually in suburban highway and airport locations. Guests typically stay overnight or a few days. Motels may be located near a freestanding restaurant.

All suites:

It may include reservations, living room and separate bedroom, kitchenette, optional public dining room and room service, cable television, videocassette players and recorders, specialty shops, personal services valet and laundry, swimming pool, and ground transportation to and from an airport. The size of the operation can range from 50 to more than 100 units. This type of property is usually found in centre-city, suburban, and airport locations.

Limited-Service Hotels:

The range of accommodations and services may include reservations, minimal public dining and meeting facilities, cable television, personal computers, personal services (valet and laundry), and ground transportation to and from an airport. They are usually located near restaurants for guest convenience. Guest stays can be overnight or long-term. These properties sometimes specialize in catering to the business traveller and offer special business technology centres.

Extended-Stay Hotels:

At Hilton’s Homewood Suites, the following room amenities are included: king-size bed or two double beds in the bedroom and foldout sofa in the living room; two remote-controlled colour televisions; fully equipped kitchen with a microwave, refrigerator with ice maker, coffeemaker, twin-burner stove, and kitchen utensils; a spacious, well-lit dining area; and ceiling fans and iron and ironing board. Additional hotel services include a business centre, an exercise room, and a pool.

2 Roles and responsibilities of accommodation and reception staffs

Hotel receptionists are responsible for making guests feel welcome, checking them in and out efficiently, and dealing professionally with enquiries, face to face and by phone, fax or email. They deal with general reservation enquiries, as well as answering guests’ questions and dealing with complaints.

Duties will often include:

allocating rooms to guests

taking and passing on messages

preparing bills, taking payment, and handling foreign exchange

Helping guests with special requests – such as storing valuables in the hotel safe or luggage area, ordering taxis or booking theatre tickets.

Figure 1 Medium size full service hotel organisation chart

Their main tasks are:

changing the bed linen and making beds

emptying bins, vacuuming floors, and washing glasses and cups

replenishing stocks of guest supplies, such as tea, coffee and biscuits

Tallying up items consumed from the mini-bar.

2.1 Identifying responsibilities of reception service staff

Receptionists are usually the first people hotel guests’ encounter, particularly in those hotels where hall porters are not employed. They thus occupy a gatekeeper role, frequently bearing the responsibility for guests’ first impressions of the hotel. In fact, the responsibilities that receptionists bear for that image of the hotel arguably extend beyond first impressions. E.g. Receptionists of Hilton hotels regularly being involved in book-keeping, letter writing, inventory taking, typing, record keeping, answering queries, filing, taking reservations, dealing with mail and lost property, dealing with room changes, taking payments of customers’ bills, banking monies, holding responsibility for room keys and producing reports and statistics.

3 Legal and statutory requirements for rooms division operations

The following legal and statutory requirements must be met by the Hotels in the UK:

Duty to guests

Employment & Pension

Environment

Food/ Hygiene

Health & Safety

Guest information

Insurance

Intellectual property

Licensing & tourism

Local & national tax

Planning & zoning

Other (Bureau de change)

4. Front of house area effective management

The Front of House Manager will be responsible for providing a high standard of customer service in order to maintain the customer loyalty from the general public and visiting companies, as well as to maximise revenue from Bar, Kiosk and Cafe, hotels the post holder will report to the Operations Manager, and work closely with the senior management team. He/she will be in the front line of customer liaison.

Responsibilities:

To maintain safe and friendly environment for all theatre visitors.

To give strong and effective management

To develop and encourage high standards of customer service.

To control and report on costs (staff and stock control).

To manage the Front of House sales facilities.

5. Planning for managing the front of house area

A little planning on the front office manager’s part is required to ensure that the new employee meets the entire staff in the first few days. Saying a few words about the role of each employee during the introductions will not only make new hires feel more comfortable with their co-workers but also make each current staff member feel like a special part of the team. The current staff will also appreciate meeting the new addition to the staff. Very often, this procedure is overlooked, and new employees feel awkward for days or weeks.

6. Operational issues affecting management and business performance

The front office team have the common goal of providing hospitality to the guest. Training, empowerment, and flexibility are necessary to make the team work. Forecasting, scheduling, developing a supervisory style, motivating personnel, balancing staff personalities, delegating tasks, training, and effectively communicating are only a few of the skills a good supervisor must master. It is a lifelong effort developed through continuing education and trial and error.

7. Importance of property interiors and design to effective management
This is important to positioning the front desk to allow front office personnel a view of guests who enter the lobby from the street entrance and elevators. The guest’s first impression is enhanced by the ambience, physical appearance, and orderliness of the equipment and personnel. The front office manager must establish a balance between guest service and work processing to allow for efficiency.

Figure 2 Front office layout

8. Aspects of planning and management of the accommodation service

Planning is very important to delivering continuous quality service in hotels, as defined by the guest. Successful extension of hospitality starts with management’s commitment to a service management program. Preparing a service strategy statement will focus the planning efforts of the owners, management, and employees. Principles of total quality management provide a manager with an opportunity to involve frontline employees in analyzing the components of delivery of service and methods to improve existing services. The development of the service management program requires the involvement of frontline employees, discussion of the guest cycle, moments of truth, employee buy-in concept, screening of potential employees prior to hiring, empowerment, training, evaluation of the service management program, follow-through, and interfacing with other departments in delivering hospitality. A long-term commitment to a successful service management program is necessary.

9. Operational issues affecting the management and performance of the accommodation service

There are some issues affecting this sector such as:

Environmental

Social

Legal

Economical

Technological

Political etc.

10. Yield management techniques

Achieving the best yield involves redefining the use of occupancy percentage and average daily rate. Although these concepts are important to the long-range potential financial picture, they take on a new meaning with yield management. Optimal occupancy, achieving 100 percent occupancy with room sales, which will yield the highest room rate, and optimal room rate, a room rate that approaches the rack rate, work together to produce the yield.

10.1 Yield management strategies

E. Orkin offers a simple policy for developing strategies to implement yield management: when demand is high, maximize rates; when demand is low, maximize room sales. These concepts are portrayed in Table 1. Orkin also offers some specifics on developing strategies. He says that when demand is high, “restrict or close availability of low-rate categories and packages to transients [guests], require minimum length of stays, and commit rooms only to groups willing to pay higher rates. When demand is low, provide reservation agents with special promotional rates to offer transients who balk at standard rates, solicit group business from organizations and segments that are characteristically rate sensitive, and promote limited-availability low-cost packages to local market.” Restricting or closing availability was indeed a challenge because most front office managers were familiar with the “sell out the house” operating procedure and were unsure if this aggressive marketing tactic would work. Some hoteliers were setting reservation policies that required minimum length of stay during heavy demand periods. The procedure recommended for low demand (special promotional rates and soliciting group and local business) was the strategy used during any demand period. As yield management continues to be tried and tested in hotels, various combinations of maximizing room rates and room sales will continue to challenge hoteliers.

Table 1 Yield Management Strategies

Demand
Strategy

High

Maximise rates, require minimum stays

Low

Maximise room sales, open all rate categories

The following strategies can be taken to maximise occupancy and room revenue:

Forecasting – room sales, setting strategies to generate revenue

Block-out Periods – high demand periods require to block out certain days

Systems & Procedures – using automated system that will process reservations, track demand, and block out room availability during certain time periods

Feedback – on decisions employed in yield management to set right strategies

11. Sales techniques that can use to promote and maximise revenue

The objective of the sales incentive program for front office employees is to encourage the front office to promote products and services in various areas of the hotel, including the front office, the food and beverage department, the gift shop, and the health facilities. Each promotional area may be considered, or the front office manager might choose only a few areas, perhaps those that generate the most revenue, as incentive targets. A few examples follow:

Upgrading a reservation during registration

Selling a meal in the hotel’s restaurant

Selling room service

11.1 Creative ideas

When developing a program to increase front office sales activity, the front office manager, in conjunction with other department directors and employees, should identify as specifically as possible the hotel products and services to be promoted.

In this case, the overall purpose of the program would be to maximize sales by the front office staff of front office, food and beverage department, gift shop, and health facilities products and services. The team must decide which area or areas would be most profitable.

12. Purpose of forecasting and statistical data within room division

An important feature of yield management is forecasting room sales. Orkin suggests using a daily-decision orientation rather than a seasonal decision-making scheme in developing a particular strategy. Accurate forecasting of transient demand will assist hoteliers in developing strategies to maximize sales to this group. For example, if a hotel has group business reservations for 95 percent of available rooms, seeking transient business with special promotional packages during that time period would not be advisable. If the period following the group business is low, then advance knowledge of this information will allow time for marketing and sales to develop special promotional packages aimed at the transient and local markets.

12.1 Limitations of employing forecasting techniques

Forecasting should be used to generate revenue by forecasting the volume of customers and allocating resources where it fits. Managers need to make sure that they have enough available rooms to control the guests flow. As we know “more guests brings more revenue”.

13. Performance indicators to measure the success of room sales

A general manger who reviews the report of a recent five-day block-out period, as depicted in Table 2, would find that the period restricted for a five-day minimum length of stay worked well for May 1-3, but 178 room reservations were lost for May 4-5. The director of marketing and sales will have to research the contracts the hotel had with the various groups involved. Also, the front office manager should ask if the front desk clerks, bell staff, or cashiers heard any guest comments on why they checked out earlier than scheduled. The turn away business on May 3-5 might also indicate that the convention events scheduled on these days were more interesting or that the members of this group did not want to commit to a five-day stay and wanted reservations for only the last three days of the convention.

Table 2 Turn away business report

Date
Yield %
No. Rooms Turned away
$ Lost @ $95 Rack Rate

May 1

98

35

3,325

May 2

96

20

1,900

May 3

93

60

5,700

May 4

50

90

8,550

May 5

50

88

8,360

13.1 Considerable factors to review the performance of sales manager

Were the anticipated profits outlined in the budget achieved? Use of a VIP Guest Card indicates to the restaurant manager that the guest was referred by the front desk clerk. Similar types of controls will enable management to pinpoint the origins of room reservations, gift shop purchases, and other sales. A recordkeeping system must be established to reflect the amount of money awarded to front office employees as incentives to increase sales in targeted areas and the directors should consider these costs in terms of generating revenues. The details of this recordkeeping system must be worked out with the various department directors and the controller.

13.2 Present and communicate appropriate findings of the Sales manager

Front office management includes helping to promote the overall profitability of a hotel. Developing a point-of-sale front office involves developing a plan of action, which includes setting goals and objectives, brainstorming areas for promotion, evaluating alternatives, discussing supportive areas for consideration such as incentive programs and training programs, projecting anticipated revenues and related expenses in a budget, and preparing feedback mechanisms. This simple framework for planning will allow front office managers the opportunity to gain a larger perspective on the issue rather than pushing forward with desperate efforts to produce sales.

Country Profile – Chile 2014

2014 LATIN AMERICAN BUSINESS ENVIRONMENT REPORT

INTRODUCTION

In 2014 the business environment in Latin America did not live up to expectations, and seems that it will not deliver significant results for 2014.Growth rate dropped again, down in 13 of the 18 countries covered in the LABER analysis. Lower commodity prices and financial market volatility in Latin America Governments struggled to cope with growing economic imbalances and rising social discontent.

The 14 countries adhering to the centrist social-market paradigm, in spite of these pressures, did not deviate from its more business-friendly policies. Should the economic slump deepen in 2014, it was not unreasonable to expect pressures for change to deepen.

Country Profile –Chile

Political Factors:

Capital

Santiago

Constitution

March 11,1981

Administrative Subdivisions

12 Regions and Santiago

Population

17.14 million

Area

756,626 sq.km

Official Language

Spanish

Status of Press

Free

Sectors of Government Participation

Mining, Transportation, Communication, Utilities

Currency Exchange System

Free-Floating

Elections

Presidential elections are held every 4 years. Senate members serve 8 year. Chamber of Deputy elections are held every 4 years.

SWOT Analysis of Chile:

Strengths

Chile experiences open economy and the bilateral, regional and multilateral trade agreements led to a increase in foreign trade
International competitiveness has faced an increased growth rate due to the trade agreements
Chile offers foreign investors some of the world’s most competitive business costs
Privatization and deregulation have created public utility and telecommunications industries
Corporate taxes and labor costs are relatively low
No evidence of active terrorism in Chile
Occurrence of serious offences remains relatively low, despite reports of increased crime levels
Chile capital, Santiago is considered one of the safest countries in Latin America
Enjoys a stable democratic political system, with strong institutions
Comprehensive legal framework and independent judiciary

Weaknesses

Binomial electoral system is ripe for reform
Chile is vulnerable to external shocks due to overdependence on primary export industries
Supply shortages and potential power stoppages due to heavy dependence on imported sources of energy
Reforms of Chile’s institutions and labor market remain unlikely.
Absence of reform exacerbate structural imbalances in the economy
Absence drags on economic growth

Opportunities

Foreign investors are supported by the Government through three investment mechanisms
The mechanisms offer the rights of both the state and the investor throughout the implementation of project
Significant opportunities for inbound investment in areas of power generation and transportation, as well as copper production
Since 1990, Chile has enjoyed an uninterrupted period of stable democracy
Voting is compulsory for all voters older than 18.
Government took important measures to increase efficiency of public administration by 2003 and ensuring a transparent government
Congress also approved a law to regulate the financing of political parties and election campaigns

Threats

Growing public protests among the poorer sections of society
High levels of income inequality and discontent with the cost of education
Weakening government’s popularity
Chile’s major ports and industrial mines suffer growing labour unrest

Business environment in the country:

BMI Business Environment Risk Ratings

Chile ranks 28th out of 191 countries in business environment rankings and scoring around 64.0. This makes Chile the outperformer of the neighboring countries by some distance and places it higher than several developed industrial economies. In terms of ‘market orientation’, it ranks well ahead of many developed states including the US and the UK. Nonetheless, causes for concern remain. The country has a sizeable infrastructure deficit, reflected in our relatively weak score for Chile’s business infrastructure, a category in which Chile ranks just 55th globally.

Chile is an open economy and practices bilateral, regional and multilateral trade agreements. This has led to a steady increase in foreign trade and the country’s international competitiveness. Chile offers foreign investors some of the world’s most competitive business costs. Privatization and deregulation have created sophisticated telecommunications, healthcare and public utility industries. Chile at the same time has maintained a moderately low corporate taxes and labor costs.

Environmental factors:

Chile is a highly Election dominated environment. It possesses the following features with regard to the environment:

Solid economic performance

Throughout the region of Latin America growth softened, but the drop was not steep in Chile and the outlook was encouraging with average annual growth rates for the period 2004-12. The causes of slower economic growth were lower export earnings, weaker investment and slower growth in the domestic demand. The local stock market has downgraded by 15% in dollar terms for the year, making it the worst performing of the major exchanges. This fall in the exchange rates made the economic scenario quite unfavorable for the foreign investment. The depreciating peso was accounted for the major fall in the economic performance. (upto 521 to the dollar)

Exports softened but FDI surged

Chile is the world’s largest producers of copper. Being in its maximum height of production, the decline in world copper prices affected Chile’s market negatively. Copper accounts for 60% of exports and 20% of GDP. Chile drew its attention away from copper due to the long-term need to diversify the economy and such heavy dependence on a single commodity. As the Chinese economy relaxed, copper prices fell down by 12% in November affecting Chile’s trade and exports, resulting in a fall in 2012. The CAD (current account deficit) and debt increased due to the exports slump. Chile has favorable access to bond markets and foreign investors due to its best managed economy and the highest credit rating in Latin America, and hence its environment remains very investor friendly. Resulting in a Net FDI tripled in 2012.

Public protests broke out again

Chile was recognized as a world leader in the implementation of the market reforms that was responsible for the generation of growth and rising standards of living. Chile has proven unemployment rate that fell to a historical low of 5.7% in October. Despite the growth, Chile was the first country to face rising citizen discontent in the form of the street demonstrations, which are now common throughout Latin America. Chile experienced for the first time in 2013 students, unions and Mapuche Indians all conducted disruptive demonstrations.

Election returned center-left coalition to power

As expected, former President Michelle Bachelet easily defeated Alianza por Chile, the candidate of the governing party, and her New Majority coalition won a majority in Congress. In many respects, the outcome was disappointing for Bachelet and her supporters. The disappointing fact was the low turnout , with voting was no longer mandatory, especially among first-time voters who were expected to deliver an easy first-round victory.

Central Bank lowered interest rates to stimulate growth

In order to stimulate the growth in the face of weak domestic demand, the Central Bank cut interest rates. This will further enhance the growth of the economy and productivity.

National strategies and public policies:

Chile follows the strategies to raise taxes, reform education and providing free tuition for university students. These reforms were mainly targeted in reducing inequality, thereby reducing the protests.

Keys: Progress on reform agenda; price of copper

Industry structure and competitive dynamics in terms of Infrastructure & Labor:

Infrastructure:

Chile has a well developed and efficient infrastructure network, which contributes to the government’s export-driven development strategy. Since the adoption of build-operate transfer concessions the country’s physical infrastructure has improved substantially.

Though considerable damage was done to the existing country’s infrastructure network by the devastating 2010 earthquake, the ongoing focus of government attention ensure the rebuilding of Chile’s infrastructure. The Pan-American Highway is considered to be high international standards and backbone of Chile’s road system. Chile also has world-class airport and seaport infrastructure.

Chile is working to develop a network of transport corridors across the region, using rail and road infrastructure. This will uplift the Chile’s exports to Argentina and Brazil, and also facilitate the use of Chilean ports for exports to Asia.

Energy:

Energy supply in Chile is considered the Achilles’ heel. With its limited domestic energy supply, the country heavily relies on the bulk of its energy resources on Imports. It has to maintain sound relations with its neighbors to realize the valuable energy supply. The reliance on energy imports, particularly on natural gas from Argentina (where 80% of gas imports originate), is a growing problem.

The Chilean government has prioritized addressing the electricity issue.

Intellectual Property Rights

In the International Property Rights Index of 2013, Chile comes in 28th place out of 130 countries. This places Chile the highest ranked of all emerging markets. Chile approved legislation to bring the country into compliance with the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) signatory obligations .As per the TRIPS signatory, Chile must meet the agreed standards pertaining to copyrights, including producer rights, industrial designs, patents and trademarks.

The area in which Chile was most scrutinized is IPR in pharmaceutical products. This is due to the fact that Chile lacks a transparent system for protecting pharmaceutical patents. In 2005, the MOP established a system in protecting data related to pharmaceutical products.

Business-government relations:

Chile is positioned with a stable political outlook and sound economic fundamentals for steady, albeit slower, economic progress. Due to its high reliance on copper exports and oil imports, Chile is posed to a high risk to economic progress. Diversification of the country’s economic drivers will be essential to ensuring sustainable growth to remove the high dependence on the copper exports and oil imports. But this diversification may drag the GDP of the country leading to a more consumer-driven economy.

Moreover, the GDP per capita is envisioned to nearly double between 2013 and 2022, in line with President Sebastian Pinera’s goal of at least US$25,000 GDP per capita by 2020. This would give Chile de facto developed country status.

Nevertheless, we will face two obstacles that would hamper Chile’s economic growth over the upcoming years: Despite the country’s vast reserves of hydroelectric power, periods of drought have exposed Chile’s dependence on energy imports; modernizing power generation and transmission will be highly essential to continued growth.

Potentials Risks and bottlenecks faced by Chile Government:

Chile faces few terrorist activity and regional security threats in comparison with neighboring countries. Other Potential risks are in the field of labor, education, healthcare, communication and transportation facilities.

Strikes and public protests present a significant risk to business in Chile. In recent years these events have been concentrated in the areas of health, education, transportation, communication and civil service sectors. The real wages are slowly increasing in a less alarming way and high corporate profits have led to greater worker resentment. Strike action is becoming more widespread. It is not totally uncommon for labor tensions to develop into full-blown conflict. These labor conflicts largely affect the copper mines functioning. This leads to a significant amount of delays in certain large mining and energy projects.

Mapuche political activists pose a growing threat to the foreign investments due to hindrances in the domestic security and the country’s business climate. These conflicts lead to a significant drag on the Chilean business environment if left unresolved. According to government statistics, crime rates are falling.

Chile OUTLOOK in the face of Attractive Business Environments

In the business environment analysis conducted by Business Monitor, only 9 nine countries emerged with the most business attractive environments in the Latin America region. Although there are differences among them, they all share significant positive strengths:

Sustained growth with moderate inflation
Favorable external profiles
Declining poverty and growing middle classes;
Stable, multiparty, centrist politics;
Social-market economic policies;
Slowly improving legal systems

Seven of the nine ranked highest of the 18 LABER environments on the 2013 World Economic Forum’s global competitiveness score as given below.

Chile government supports business and related investments with its strong and efficient legal framework

Most accommodative in the region
Government continues to place attracting foreign investment high on its priority list
Infrastructure network is a major asset to the Chilean business climate
Open foreign trade regime, helps to maintain the country’s reputation as an attractive foreign direct investment (FDI) destination
Corruption and criminal activity remains a nuisance
Pinera government has struggled to produce results on these fronts

Town centre managers have started to adopt the town centre management theories in order to promote and benefit their towns/cities. In the current climate there is increased competition between towns and cities to attract tourists and also to attract residents. With key cities such as London, Manchester and Edinburgh having a strong representation, it is evident that the smaller towns and cities need to compete and promote what they have.

Due to time and length restrictions in this report the key focus has been on Chester City Centre and the main attributes that the town has to offer, this town was chosen due to its strong direct competition with large cities such as Liverpool and Manchester as their local competitors. Analyses of their key stakeholders that are involved in the management scheme are reviewed along with perceptions of the town. Regional and National issues are addressed and how Chester have tackled this through their management scheme, if they have even made these issues part of their management.

Their management approach is reviewed using the above data and supports whether or not the management scheme is a successful approach. As it is a long term scheme in place that has to be nurtured and developed, a recommendation has been made to review this approach in the future when the management team have time to effectively implement their goals and strategies and review its effectiveness in more depth than has been address in this report.

Introduction: About Chester

Chester City centre is part of the Cheshire County. This consists of Cheshire West and Chester, Cheshire East, Warrington and Halton. Chester is a city in the North West of England and is also the county town of Cheshire which has been described as “the diamond in the UK’s crown,” Smith. B (2012). Due to the purposes of this assignment, a more specific in depth evaluation of Cheshire West and Chester – Chester City Centre has been chosen because according to Walsh, P (2001) there is limitation on the amount of areas that can be targeted for intensive intervention under one management scheme and therefore it is partly a function of the availability of resources to mount an intensive intervention across a large number of areas.

The town is situated on the River Dee, on the border with Wales; Chester is one of the best preserved medieval walled cities in the UK which has become a tourist landmark for the town. It is the largest and most populous settlement within the wider Chester District and has a population of more than 80,000. Chester is perhaps most notable for its successive historic uses and occupations, and the subsequent variety of architectural monuments found within the settlement, Chester Chronicle, (2012).

Chester has its own Regeneration body, Chester Renaissance, whose main job is to market and promote the town. This company holds its own set of objectives and have called it Chester’s ‘one plan strategy’ for the next 15 years, cheshirewestandchester.gov.uk, (2012). Chester’s marketing regeneration body have taken a strategic management approach, Wells’ (1991), which concentrates on the redevelopment of the centre. Alternatively, they could have taken a more operational approach which concentrates at the day-to-day management, such as the maintenance and policing of the centre, Wells’, (1991). Ultimately this report will research into how effective Chester’s chosen approach actually is.

According to Cheshirewestandchester.gov.uk, (2012) the management team involved in managing the town are currently striving to attract and greatly increase the number of people visiting Chester. They want to develop and maintain a positive relationship whilst sending out a positive message around the city; this is why it is an upcoming place to live, work and visit. It is an interesting town, and it has undergone a transformation using their town management process to promote itself as the better place against its rivals, Liverpool and Manchester.

On a national and regional scale Warnaby, Alexander & Medway, (1998) believe that competitive pressures are one of the major factors providing an impetus to the initiation of town centre management schemes, however in the case of retailing they continue by highlighting that the most significant competition is that which exists between and within towns at a regional or sub-regional level. Liverpool and Manchester have established themselves as key competitors for Chester, but more recently an issue has become increasingly threatening toward Chester’s retail stores, especially their independent stores. This is including the use of ‘out of town’ retail developments, with one key competitor recently being the Trafford centre for example. The North West collectively responded to this threat by creating a ‘Project Sunrise’, which is a small working group comprising of members from the ATCM’s North West region, Warnaby & Medway, (2004). The impact of ‘out of town’ was not as strong as first thought, and the most effective elements taken from this campaign was the high quality press releases and media-coverage. This raised public awareness of the “concept” of shopping “locally”, Warnaby, Alexander & Medway, (1998). Therefore in order to tackle the threat of regional out of the town movement Chester town centre must create an emphasis on their local shops and uniqueness of independent retailers to give them a competitive advantage. There are further challenges that have not been addressed within this report due to length constraints such as retail warehouse parks, factory outlet centres and Internet shopping, Otsuka & Reeve, (2007). It is vital that a management scheme takes into account the regional issues and builds solutions into their local objectives. Chester has done this by tackling a current unemployment problem, and have developed more business opportunities and provided more jobs, this is supported by Kleinman, (1998) who believes that “local initiatives must be supported by the right kind of policies at regional and national levels.”

Chester City’s main attributes:

De Nisco, A, Riviezzo, A, Napolitano, M.R, (2008) used a framework that was described by Warnaby and Davies (1997) as a ‘bundle of benefits’ to define the overall town centre offer. It was based around the customers’ experience that is influenced by the following factors:

[1] Accessibility: including the efficiency and adequacy of parking, public transportation, and car and walking streets. Parking in Chester is the same as in other major cities, congestive and frustrating – “The use of family cars for shopping has increasing importance to our customers. Where local authorities have recognised this need and worked with retailers to improve parking facilities and good access roads”, Schiller, R (1994). A scheme has been created in Chester specifically for residents, visitors visiting households that qualify may also apply for a permit within the scheme. Constraints with transport have also been implemented around the city in order to retain and protect Chester’s centre. There is a limited non retail offer and therefore outside of shopping hours the use car parks and transport dramatically decrease.

[2] Quality of life: promoting economic advantage and improving quality of life, the two most important objectives of place marketing activity (Burgess, 1982). Crime/ Security/ Road cleaning: Policing in Chester holds prioritise for the month of November 2012, Cheshire.police.uk, (2012). In particularly, the policing in the city centre are concentrating on retail theft and purse theft.

Figure 1: A pie chart representing Chester’s crime breakdown into specific areas. The largest area is anti-social behaviour, which will include incidents such as graffiti. In order to tackle this, the police have set up the Heritage Crime Programme, heritagecrime.blogspot.co.uk, (2012). It is designed to protect the cities key marketing attribute, its heritage and city walls.

Figure 1[3] Retail offer: Chester’s City centre retail offer consisting of large multi-national and national scale ‘high street brands’ as well as a number of specialist and independent traders. However, in recent years Chester has struggled to compete with the substantial levels of investment in flagship shopping facilities such as the Trafford Centre, Liverpool One, and Cheshire Oaks, Chester One City Plan, (2012).

[4] Leisure, cultural and public utility services: Apart from the shopping culture in Chester, there are also more social events such as visiting Chester zoo, clubs and pubs such as Lock keeper bar and Number fifteen, with the highest rating on chesternights.com, (2012). There is also the famous cathedral to visit, and seasonal events such as Christmas markets.

[5] Heritage and artistic aspects and their valorisation: Famous heritage sites include Chester’s cathedral, Chester castle and City baths. Chester’s cultural and heritage infrastructure is currently in decline and in a state of poor repair, suffering from years of underinvestment. Protecting these elements are shown as Chester’s objectives.

[6] Marketing strategy: Branding, or as said by Skinner, (2008) “place branding” who uses the term to better clarify the linking to a place’s promotional activities, contextualised in the domain of marketing communications. Chester’s approach is about promoting what they are planning for the future in terms of developments, but also what they currently have that makes them a successful city, its history. “This is about action and what we do not just what we say,” WhyChester.com, (2012).

Chester Brand – Vibrant History, Dynamic Future, WhyChester.com, (2012).

On the other hand, Anholt, S (2008) argues that there appears to be no evidence to suggest that using marketing communications to influence international public perceptions of an entire city, region or country is anything other than a vain and foolish waste of taxpayer’s money.

This could question whether all the time and effort paid by taxpayers is inevitably worth it.

Place Marketing in Chester

Warnaby et al, (2002) describe place marketing as the responsibility of a range of actors from public, private and voluntary sectors that collaborate in order to implement entrepreneurial activities. Chester uses place marketing to draw attention away from the large out of town shopping centres and back into the centres, one way they instigate this to get customers and visitors back into the city is via their tourist website, www.visitchester.com, (2012).

The target audience for the use of their visitor website is primarily tourists and visitors to the town. It encourages and promotes the private sector stakeholders involved in town centre management shown by Medway et al, (2000), such as retailers, property owners, restaurants, pubs and clubs, hotels and leisure facilities.

This resembles nationally what the Chester is attempting to achieve with their management strategy competitively against all other cities which coincides with Kotler, Haiden and Rein, (1993:346) who believe that places need to learn how to think like businesses developing products, markets and consumers. Chester’s competitive advantage through digital media – the VisitChester.com website, also competes for mobile investment, Lever, (1999). For leisure investment, it targets tourists that come to Chester to visit relatives, days out or holidays. According to VisitBritain.com, (2012) over a three year period from 2009-2011, 411,000 tourists in total visited Chester; with 139,000 tourists’ visiting friends or relatives; and 152,000 tourists’ coming for a holiday. This encourages the retail stakeholders to get more involved in Town Centre Management. The advertising through the website looks at the best hotels, restaurants and places to visit during their stay.

Kotler et al, (1999) created a four stage marketing process for TCM. The four stages that relate to Chester are:

[1] Analysis – audit of external environment opportunities and threats and internal strengths and weaknesses.

SWOT analysis of Chester: adapted from Investincheshire.com (2011)

Weaknesses:

Congestion in and out of the city and to other major neighbouring towns/cities.

Scarcity of jobs in former Congleton, Ellesmere Port and Neston districts.

Youth unemployment.

Lack of enterprise culture in Ellesmere Port & Neston.

House prices are higher in comparison to wages.

Local concentrations of severe deprivation/ high unemployment in larger towns and cities, some neighbourhoods with high levels of disability/poor health.

Strengths:

Strong presence of high technology, high skill sectors such as chemicals, pharmaceuticals and nuclear.

Local strength within other sectors i.e. car industry. Not reliant on the public sector.

New and upcoming business sites, increasing employment in the city.

Economic strength – business investment will be a key focus for the TCM.

Unique visitor attractions – Chester race course, amphitheatre, rows of shops, city walls and cathedrals. Also has good transport links for local competitive towns, such as Manchester and Liverpool.

Opportunities:

More investment for the local business will only result in growth.

Creating employment opportunities in area where jobs are scarce and there are limited prospects for future employment growth.

Attracting and retaining more high-skill labour. Keeping and retaining graduates from Chester University.

Affordable housing for residents in the city.

Threats:

Economic growth is only a short term solution.

Impact of ageing population and declining number of young working-age adults.

Weak economic climate/ or global competition leading for further job losses in key sector’s and slow overall job growth.

Relocating/ off shoring of high technology sector activity.

Inadequate support and advice for businesses

More outward commuting of high skilled residents.

Rising levels of CO2 emissions across Cheshire.

[2] Identification of Chester’s objectives to be developed includes 2 criteria – Internal and External:

Internal – Creating a leading regional economic driver – Supporting local creativity, learning and entrepreneurs. Encouraging inward investment and stimulating business growth. Providing modern living – a vibrant, distinctive and dynamic place to live for its residents.

External – Developing and supporting – a cultural, retail and visitor offer of the highest quality.

External – Celebrating its long varied history and heritage – protecting, promoting and utilising its assets, to enhance their settings and maximise their full potential.

Internal – Maximising the opportunities to use the network of green spaces and waterways – Improving residents’ quality of life, providing ecological services, and reducing the impact of climate change.

Figure 2: Identified objectives plotted using Kotler et al, (1999) Typology of TCM scheme marketing objectives.

The objectives presented by Chester’s marketing group have been plotted within the four quadrants shown. It does show that their priority is to get businesses to the city to promote one of their key strengths as a town, their economic growth. In doing so, this will provide jobs and benefit residents, Warnaby et al, (2005). When considering the tourism sector, Chester’s objectives are based around another key strength, their history and culture, their long standing permanent architecture can also be used as an advantage and a long term marketing tool.

[3] Implementation – as the third stage, it has been divided into three categories: Footfall drivers, Participation builders and Awareness builders.

Figure 3 below shows the long term and short term activities planned by the marketing company Chester Renaissance. These involve two types of activities from a retail perspective i.e. store discounts or fashion events, and then a business development perspective i.e. Networking events, business promotion directories. The majority of events focus mainly on a retail perspective; this is due to their agreement with the view cited by Warnaby et al, (2005) “that retailers are an important place marketing actor”.

Figure 3: Chester marketing activities undertaken by TCM schemes, Kotler et al, (1999).

Time periods

Short-term

Long-term

Target audience

Internal

External

Internal

Footfall builders

* Cheshire Oaks Christmas light switches on. * Lantern magic at Chester zoo. * Chester’s Victorian Christmas market. * Chester’s Christmas tours * Saturnalia Parade – City centre. * Chester food and drink festival.

* Christmas promotions include 15,000 shopping map leaflets,

Chronicle supplement, posters, competitions and online promotions with Marketing Cheshire.

*Residential cycle loans.

Awareness builders

* Novus Young Professionals ltd. Chester based networking organisations.

* The best of Chester – local business directory and events guide to the best of Chester.

* Customer loyalty with a ‘Charisma card’. Getting visitors and retailers involved through a discount scheme.

Participation builders

* Chester Fashion week.

* Customer surveys

The PEST analysis has been adapted to show Chester’s key attributes the city has to offer, and how these attributes and activities have impacted and affected Chester’s management scheme positively and negatively, which will establish how successful their current marketing is.

PESTEL ANALYSIS
Positive effects on Chester
Negative effects on Chester

Political

40.6% of the city voted conservative in the last election. Guardian.co.uk (2012)

The majority of the city that voted were successful and are happy with the current MP.

Coalition government in Britain may cause conflict overall.

Council hopes to apply for Responsible Drinking Zone, cheshirewestandchester.gov.uk (2012)

Will stop street drinkers at night and increase safety around the town.

Could deter potential trade for local clubs and bars.

Economic

New business quarter opening in Chester. Cheshirewestandchester.gov.uk, (2012)

Is set to create over 1,100 new jobs in the city.

Potential to divert custom and business away from the more smaller central independent stores and businesses.

Within the quarter: New residential development, Shot Tower and Former Leadworks. Cheshirewestandchester.gov.uk, (2012)

A new residential redevelopment. Improved living conditions and increase potential settlers in the city.

Potential to divert custom and business away from the more smaller central independent stores and businesses.

Waitrose Scheme – The supermarket chain plans to create a new store and hotel on the site of the former Boughton Retail Centre. Cheshirewestandchester.gov.uk, (2012)

More new jobs brought to the city. Increased shopping variety for local residents and businesses to take advantage of the new hotel.

Potential to divert custom and business away from the more smaller central independent stores and businesses.

Social

New theatre and culture centre to be built with 2 theatres and the city library. BBC News (2012)

Will bring a more unified view on Chester as a cultural city for the future.

Could potentially divert away the historical elements of the city by adding modern architecture in the city.

Chester Races held every year.

Continually brings money to the city, ?1.2 million in tourism revenue for the city. Chester-races.co.uk, (2011).

Chester races can also bring more drunk and disorderly tourists to the city, disturbing the quaint image.

Chester FC promoting themselves through the leagues.

Fans and local residents are continually supporting the club; after the club went into administration. They supported throughout and have now regained themselves back into the league.

If the club had financial problems again, they could lose the support of the fans and lose a strong social community.

Chester Zoo

Technological

New Technology centre being built by 2013 with the help of Bank of America’s. BBC News, (2011)

Bank of America creates thousands of new jobs in the city by locating their European technology and operations centre in Chester.

MBNA credit card business losing more jobs

Official City of Chester guide mobile phone app, VisitChester.com, (2012)

Makes it easier for tourist to navigate around the city, and book hotels, attractions easily. Allows the VisitChester company to continually update the app with relevant and changing information.

Promoting the city as historical, may bring an older generation which do not use this type of marketing.

[4] Control – consists of measuring and evaluating the results of the plans and taking corrective action where necessary to ensure the objectives are met.

Hogg, S (2001) highlighted that the evaluation of marketing activities is generally “ad hoc and reliant on anecdote”, primarily because of financial considerations. As one respondent cited in Hogg,S (2001) “I don’t think anything is actually built into the costs with town centre management”, meaning that formal evaluation of marketing activity was virtually unknown perhaps?

Footfall for October 2012 within Chester City increased by 6% from 2011-12. This is supporting their marketing strategy to increase visitors to the city. However there was evidence to suggest that consumer confidence has decreased due to the current economic climate and more consumers will be shopping online, Cheshirewestandchester.gov.uk, (2012). As the plan has only just been established and is slowly regenerating the city over the next 15 years, it has the potential to be reviewed on its effectiveness.

The Association of Town Centre Management (ATCM), Medway et al., 2000 indicates that three main categories of stakeholders should be involved in TCM initiatives:

(1) Public sector – local authorities, police, public transport, tourist agencies, emergency services, training and enterprise councils, schools, colleges and universities, leisure centres.

(2) Private sector – retailers, banks/building societies, chambers of commerce, transport operators, property owners, estate agents, restaurants and cafes, pubs and night clubs, leisure facilities, hotels, solicitors and other professionals.

(3) Voluntary sector – civic societies, conservation groups, disabled groups, residents’ groups.

Figure 4: The linkage model in TCM developed by Grunig and Hunt (1984). http://www.canaryclaims.co.uk/wp-content/uploads/2011/03/alliance-leicester-logo.jpg

Examples of the stakeholders involved in Chester city centre using the Linkage model above.

Enabling linkages: Funding for Chester is available from a variety of sources, including Government Grants, National Lottery Good Causes, Charitable Trust and Foundations and Local ad-hoc grants. Landfill tax credit scheme, rural support grant and European Social funding, these funds also provide support for businesses wanting to bring business to Chester. Corporate members involved in funding Chester as a city include many businesses that have set up their headquarters within the city due to its strong financial representation. These businesses include: M&S money, thebestofchester, BE group, Urenco, Trinity Mirror Cheshire, DTM Legal, Chester University and Chester racecourse, Investincheshire.com, (2012).

Functional linkages, Investincheshire.com, (2012).

Input: Restaurants, The Peel group – transport and real estate company, The county homesearch company.

Output: Chester city residents, Tourists from neighbouring towns such as Liverpool, Manchester and also neighbouring countries. Groundwork Cheshire also supports Chester

Normative linkages: www.visitchester.com, www.visitbritain.com, Cheshire police, Miller developments, Natwest. Investincheshire.com, (2012).

Diffused linkages: Chester University, Manchester Metropolitan University, Mid Cheshire College. Investincheshire.com, (2012).

Perceptions of Chester:

As with any town/city, residents and visitors will have varying perceptions, that’s why it is important to use surveys in town, retail planning is important especially because all over the world decision making in this field is characterised by biased perceptions and conflicting interest groups, Monheim, R (1998). Negative perceptions have included a tourist posting in chavtowns.co.uk (2007), that they had experience a negative visit to Chester: “Come to Chester to see the best chav scum in the northwest, I have been spat at in the end street and called just about all their mother could teach themaˆ¦it’s nice what you can see in an old English townaˆ¦P.S I have been robbed two timesaˆ¦nice place Chester.”

Residents have also raised some negative concerns about the nightlife of Chester: “The scales are being tipped for the residents. They now feel the commercial ambitions of the licensed trade and the increased fall-out from that trade in terms of noise, nuisance, and anti-social behavior in the middle of the night, now outweighs their quality of life,” Chester Chronicle, (2012).

On the other hand, there are positive perceptions of Chester also which mainly come from the tourist industry and people that visit Chester. One repetitive local visitor advised positively on someone moving to Chester writing: “You have no need to worry about safety at any of the locations; Chester’s a very safe city. If you intend to stay in the city centre it is vital to find a property with off street parking, it’s a nightmare trying to find a parking spot in the city centre,” Trip Advisor (2009).

Overall, most of the negative feedback comes from the nightlife of Chester and most reviews about the retail and government aspects appear positive. With regards to the marketing strategy and the ‘one city plan’, as this is a long term strategy over the next 15 years and has only very recently been implemented, research highlights no faults or perceptions at present. However, as the strategy evolves and it will become evident how successful it has been, and therefore this can be further reviewed in the future.

Conclusion:

Chester’s management strategy has been the responsibility of their marketing company who are driving the ‘one plan strategy’, Cheshire Renaissance. This shows the direction that the district, county and town want to be heading in. As an economy, is appears that we are gradually coming out of a recession and still the numbers for unemployment are high. It is evident that Chester is helping to tackle a regional and global issue within their strategy with the ability to drive their business district forward and consequently create more jobs. The marketing toward this appears to be diverted toward bringing new residents, tourists and visitors to the city. On the other hand, there is a slight risk that in doing this, the current residents may feel neglected and disperse from the city. This is supported by their strategic approach over their operational approach. However due to the high neighbouring competition from cities such as Liverpool, Manchester there is a risk of losing the visitors that bring the money into Chester. There can only be hope that supporting the businesses and landscapes, i.e. waterways in the town is sufficient enough to keep the current residents in the city and that they are not forgotten about. Looking at the perceptions, there is strong support from visitors and tourists, however from the research shown there appears to be a danger that the local residents do not seem to have much of a voice which is paramount to any city.

1

Contents

Introduction of destination

Tourist attractions

History

Lifestyle

Beliefs and traditions

Urban and cultural tourism

SWOT analysis

Strengths

Weaknesses

Opportunities

Threats

Conclusion and Recommendations

Bibliography

Introduction of destination

Chennai, formerly known as Madras, is the heart of the Indian state of Tamil Nadu, often referred to as the ‘Gateway to South India,’ it can be found on the south-eastern coast of India. With its strong transport and commerce links both nationally and internationally it has rightfully earned its status as the fourth largest metropolitan city in the country. It is a bustling city of 178-sq-km packed with diversity at every street corner. It boasts of not only a rich cultural and religious heritage, but also a historical one, where the mark of the British Rule is evident in the various recommended tourist destinations. Its population of a staggering 6.4million consists of citizens from the 7 different religious backgrounds, these not only include the 6 major religions, but also the rather surprising one known as Parsis. Additionally, the 4 languages of English, Hindi, Urdu and Malayalam are widely spoken across the city.

Tourist attractions

Chennai being the spiritual hub and the keeper of South Indian artistic religious traditions has many awe striking sites to visit, alongside the more modern cosmopolitan developments of luxurious hotels, swanky bars, boutiques, clubs and restaurants.

Marina Beach spanning a distance of 8.1 miles is the longest natural urban beach of the country and one of the most beautiful and second longest in the world.

Fort St.George is possibly the most important landmark in Chennai’s history. It was built in 1644, by Francis Day and Andrew Cogan, the founders of Chennai and the officials of the British East India Company. It was the first place of British settlement and was also under French occupation for a short period of time.

The Fort Museum, which was formerly opened in 1948, is the place where tourists will find fine collections of various artefacts from the colonial period of the country. The impressive collection includes medieval weapons, coins, original writings, and much more.

Gandhi Mandapam spanning over 16 acres is the home of 10 memorials including those for Mahatma Gandhi, is a great attraction where visitors can see the beautiful carvings on the historical buildings and be a part of various festivals including Gandhi Jayanti. Between 9-10am every Sunday devotees of Shri Aurobindo gather to pray and meditate.

There are a large number of temples, churches and mosques that hold great historical significance. These include Kapaleeshwarar Temple, Meenakshi Amman Temple, The Shore Temple, St Andrew’s Church, San Thome Cathedral, Luz Church, The Wallajah (Big) Mosque, and The Thousand Lights Mosque, to name just a few.

The War Memorial of Chennai offers a glance into the heroic past of India.

These are just a few of the renowned places to visit for an individual looking to immerse and enrich themselves with the cultural legacy of Chennai.

History

Chennai is said to be around 400 years old being the location of the East India Company’s first settlement – said to be officially founded in 1639. However “The Kapaleeshwarar temple, the Pallava Port and the Parthasarathi Temple of the 7th century are the effervescent facts to prove that the Chennai city has been present since the time immemorial” (Chennai.org, History of Chennai, Para 1). History accounts that the city was ruled by “well-known dynasties of South India, such as the Pallavas, the Cholas, the Pandyas and the Vijaynagar kingdom.” (Chennai.org, History of Chennai, Para 1.) In 1522 Sao Tome port was built by the Portuguese. The Christian apostle St. Thomas also settled into the city and the positive impact of this is perhaps seen within the Christian community of modern day Chennai. The bustling city of Chennai that we see today is due to the influence of two merchants of the East India Company, Francis Day and Andrew Cogan, who set up the factory. In the 17^th century Chennai was known by the name of Tondaimandalm, and a small village called Puzahl used to be where the military had their headquarters. The British held a strong position of power by mid-18^th Century; this then led to the creation of Madras Presidency. The beginning of the industrial revolution in Britain ensured that Tamil Nadu also reaped the benefits; railways in the late 19^th century allowed Tamil Nadu was able to establish strong networks with many important states and their capitals; this helped the growth of communication and business, thus leading to economic benefits. Chennai did not become the capital of Madras State until after it had attained independence from the colonial rule in 1947, it was then renamed Tamil Nadu. The city underwent another renaming ceremony in 1996 when the state government took the decision to change the city’s name from Madras to Chennai. The changes that Chennai underwent over the various centuries, socially, culturally, economically, and historically, is what makes Chennai one of the most unique, interesting and multi-faceted cities of India, giving it a unique selling point for the tourist industry to tap into and maximise the number of tourist visitors from all over the world.

Lifestyle

It is widely known that the people of Chennai live a simple and humble life, which is often said to be steeped in religious practices, superstitions and delicious traditional food. The people of Chennai are mostly described as being friendly, accepting of new people and extremely cultured and religious. It would not be a surprise to the eyes to find groups of people by the beaches at sunrise carrying out the ‘Suryanamaskar’ (Sun salutation). Religious festivals are celebrated with great pomp, filled with colour and vibrancy usually including everyone, not only from one street but neighbouring streets. The cost of living in Chennai is known to be amongst the lowest in the country, which allows for more economic comforts within a family household. Traditional arts including Carnatic music and Bharatanatyam are at the heart of the Tamil culture, and it wouldn’t be uncommon for at least one family member to play an instrument or be well versed in Sanskrit or enjoy a Saturday morning class in Bharatanatyam dance. Education is given the utmost value in a household as it is seen to carry the key to opening doors to a brighter future. This bustling city is the home to the biggest motor industry in India, with streets jammed with traffic and the Sea ports seeing daily imports and exports, seems to be the least likely place in which one could relax and unwind, but the Chennai lifestyle has ancient meditation engraved at its core, which could be the very reason why the Chennaiites are so chilled out and humble people.

Beliefs and traditions

Chennaiites are traditional minded people, who value their culture immensely and on a daily basis follow age old rituals with full faith and dedication. The women of the household traditionally carry out the early morning ‘kolam’, which is the drawing of patterns and waves on the entrance of the home. This is traditionally made of rice powder and said to welcome the auspicious into the home. Chennai celebrated many festivals both local and national. A couple of these are:

Pongal:- This festival is celebrated in January for three days. It is the harvest festival of showing gratitude and offering thanks to Sun, Earth and the Cow. On this auspicious day families at dawn in their respective homes gather around a new earthen pot. As the pot of milk boils over, signifying prosperity, a shout of ‘Pongalo Pongal’ reverberates in the air.

Arubathimoovar Festival: – Literally, ‘Arubathimoovar’ refers to the 63 saints of Shiva idolized for leading exemplary lives of devotion and penance. Every year the bronze figures of these 63 saints are carried in a colourful procession through the streets of Mylapore.

Urban and cultural tourism

“Today’s travel and tourism industry has grown into a global economic powerhouse whose combined direct and indirect impact on the world economy, according to the World Travel & Tourism Council (WTTC), in 2012 was US$1.2 trillion; 260 million jobs; US$70 billion in investment and US$1.2 trillion in exports.” (Fuller, 2013)Over the next 10 years travel and tourism industry has been predicted to grow by 4.4% on average each year. These figures exceed the growth of any other sector and other industries like retail and public services. A number of factors are fuelling this growth, and the demand for the travel and tourism destinations is growing. Sociologist highlight that the biggest factor is said to be the growing middle class across the globe, especially in countries like Russia, India and Brazil. It has been predicted that over the next 1-2 decades this middle class band will continue to increase, which in turn will increase the number of people wishing to travel around the globe. There are several countries which are popular tourist destinations, these being France and USA, with India not far behind as the 11^th fastest emerging destination worldwide, with a 6.4% growth predicted between the years 2014-2024. The modern world is seeing a boom in the travel and tourism industry like never before; in 2013 the online travel bookings revenue worldwide had raked in $34bn. The Global international tourism revenue stood at a whopping $1,159bn. Global hotel industry totalled at $457bn.

Cultural tourism has been defined as the “subset oftourismconcerned with a country or region’sculture, specifically the lifestyle of the people in those geographical areas, the history of those people, their art, architecture, religion(s), and other elements that helped shape their way of life.”(Wikipedia 2015, Para1.) Its focus is to allow the tourists to gain a realistic experience of the destination’s cultural heritage, along with the other attributes mentioned in the quote, whereas urban tourism looks solely towards marketing the history and the landmark of the city to increase business. Research reveals that cultural tourism is somewhat in its infant stage, where many countries have been working hard to nurture it and market it on a global platform, as they have realised the revenue it provides for their cities, on the other hand urban tourism is somewhat in its mature stage of development. However, the increase in global capitalism and consumer awareness alongside the development of modern technology has allowed it to be bought into the limelight and government alongside sociologists are conducting deeper research into trends and gathering statistical data, to utilise for domestic fiscal gain.

Where the development of such tourism is beneficial there are some practical issues that can hinder the development of urban and cultural tourism. These are the planning process for the infrastructure and the government’s approach to this. The various people and the roles they will play on a governmental level. Then there is the organisation of the relationship between public transport and the travel industry. Furthermore what may seem like a menial, job of signage in and around the city, is a vital element for the satisfaction and ease of a visitor. It is important to know and further analyse the behaviours of the tourists and what destinations would be more economically viable to invest in and maintain. There could be obstructions with traditional values and corporate cut throat approaches when it comes to making a cultural heritage landmark a tourist attraction.

Many countries are employing various strategies to ensure that they continue to be innovative and gain the benefits from the industry. Cities are evaluating the access to the destinations and attractions. They are creating marketing strategies to ensure maximum exposure to the public, and furthermore analysing the cultural barriers that may exist for tourists to visit certain destinations. To ensure that there are no oppositions from the locals, governments are also looking into the economic benefits the communities can also gain from such developments, thus making it an attractive proposition. Chennai is no exception from such investments and strategic planning. It is important to note the advantages and disadvantages to the growth of urban and cultural tourism within a city.

Table 1: Merits and Demerits

Advantages

Disadvantages

Contribution to GDP

Controlled by elite

Employment

Marginal employment

Cultural preservation

Cultural destruction-over commercialisation

Environmental protection

Environmental destruction

Foreign exchange

Illegal and/destructive economic activities.

SWOT analysis

Carrying out a SWOT analysis would be beneficial and most suitable, in order to distinguish the key values and impacts of tourism in Chennai.

Strengths

Chennai has many strong attributes which make an attractive tourist destination. The city and its people pride themselves in the retention of strong cultural and religious heritage, which allows tourists to gain an authentic experience. Bhartnatyam and Carnatic music are two of the cultural legacies, which can be enjoyed at the many concerts available by renowned artists. Chennai has been able to balance the modern western influences well with its traditional values and beliefs. Whilst keeping up with the modern world. Visitors can find many tourist attractions and beaches, which can be enjoyed in the hot weather that Chennai sees all year round. A varied cuisine, due to the mix of cultures again allows the visitors to have a choice whilst retaining authenticity. The Automobile industry is very attractive for those wishing to settle there as there are plenty of job opportunities. There is a steady stream of revenue for the city enabling economic stability allowing for standard of living to be maintained. Domestic tourism is strong and on the increase. Chennai has a strong transport network utilising all three modes rail, sea, and air. With strong links both nationally and internationally.

Weaknesses

Despite many positives Chennai has two core areas it needs to invest in as this could have a grave impact on the attraction and retention of the number of tourists visiting. One being safety; it is a real issue within the city as many tourists do not feel safe on the public transport, especially females. Additionally, the government must make investment in the maintenance of sewerage and drainage seriously- this poses a critical problem as it can easily make a tourist destination unattractive, thus lose tourists and damage the economic benefits.

Opportunities

There is still scope for improvement and growth in Chennai and this could be done with strategic marketing within the tourist industry. These could include catered holiday packages with specific design, these could include: pilgrimages, cultural site tours, spiritual breaks with particular focus on meditation and yoga, education perhaps in the arts, water sports at the beaches and lastly there is a strong scope for medical tourism, which is one the rise globally.

Threats

The biggest threat Chennai faces are the growing number of slums. There is a lack of investment in infrastructure and maintenance of heritage places, which would not make the destinations attractive. Traffic air pollution, filth leading to health issues taking away the beauty of attractions and beaches. The use of cameras prohibited in various attractions, as it is considered an act of sacrilege, can put tourists off. There is a gap in investment in the development of roads to the more rural areas, which could be a source of revenue. Low standard of local transport and pickpockets also pose a threat to Chennai being an attractive destination.

Conclusion and Recommendations

Chennai is one of the most beautiful cities in the South with a great deal to offer. It has a range of tourist attractions. It is vibrant and colourful; jam packed with authentic cultural and traditional values and rituals which are still upheld by the locals of the city. Chennai has come a long way from where it was 5 years ago within the tourist industry. There were clear shortcomings, where information of tourist attractions was not strategically marketed and the resources and natural landmarks were not used to the full capacity to benefit not only the industry, city, but also the local people.

For Chennai to ensure that it reaps the rewards of the rapidly growing global tourist industry it may be in their best interest to make some enhancements and fundamental changes. The government needs to commit to cleaning the city up, in terms of sewage and drainage, but also the investment is needed to solve the ever growing slums in the city. Security to be enhanced by providing tourist only buses for those travelling in groups. The government needs to make if economically beneficial for the city to continue to retain its cultural heritage and not lose this for commercial commodity. Lastly in order to allow the tourists to experience the real Chennai steeped in history, culture and traditional values they must continue to invest in the renovation and preservation of the heritage and tourist sites, to ensure the attainment of benefits for the long term.

Word Count: 2,748

Bibliography

Culture of Chennai. Available from: http://www.chennai.org.uk/chennai-culture.html

Facts on Chennai. Available from: http://www.chennai.org.uk/facts.html

History of Chennai. Available from: http://www.chennai.org.uk/history.html

http://www.chennai.org.uk/monuments/george-fort.html

http://www.chennai.org.uk/tourist-attractions.html

http://en.wikipedia.org/wiki/Cultural_tourism

E. Fuller, Impact Of The World’s Travel/Tourism Industry Adds Up To More Than A Walk On TheBeach, 2013. Available from: http://www.forbes.com/sites/edfuller/2013/12/03/impact-of-the-worlds-traveltourism-industry-adds-up-to-more-than-a-walk-on-the-beach/

http://www.hotelnewsnow.com/Article/7858/Chennai-growth-stimulates-travel

http://www.inpolis.de/inpolis-projektdetail_1_en.html

http://www.lonelyplanet.com/india/tamil-nadu/chennai-madras/things-to-do/top-things-to-do-in-chennai-madras

https://sriramv.wordpress.com/2008/06/27/tns-tourism-revenue-peaks-but-what-about-chennai/

http://www.statista.com/topics/962/global-tourism/

http://www.thehindu.com/news/cities/chennai/renovation-of-gandhi-mandapam-nears-completion-in-chennai/article5101635.ece

http://tourism.gov.in/writereaddata/CMSPagePicture/file/Primary%20Content/MR/Pplan/tamilnadu.pdf

Task 1

Student Name: Pankaj

CTH Number: 78108

In any widely developed, competitive market, like ours, quality service delivery of a consistent and superb hospitality separates business that do well from those who struggles to keep their head above the waters.

Quality service is about personalized connection. It’s about how people feel after they’ve purchased from you or spend days of their lives in your care whether is on a vacation or a business trip. It’s about the closely developed bonds, the stunning relationships and the extra-ordinary and positive feelings between the team and the customers. Hiring the most exceptional individuals who understand this concept and delivering it naturally on a daily basis. Product or name aside, it is widely believed that service and hospitality accounts for seventy five (75%) of what is actually sold. Companies are therefore empowered to engage their teams driving them to understand both and responsibly delivering them at the highest possible standard.

Hospitality industry is one of the service sectors, with relatively high level of customer contact. The higher the level of customer contacts the more numerous and higher the growth of the organization, quality services include but not limited to:

Benefits – Under-promise and over-deliver, this by all means should be the ultimate goal for every successful company in the hospitality sector, being attentive and passionate about their customer needs. Once a customer’s needs are satisfied, you automatically build the foundation and establish a relationship based on sincere trust and devoted loyalty. Collectively contributing to customer’s loyalty and hence retention which is integral for success and sustained growth in this industry.

Feedback – Always remain open to suggestions. Understanding what exactly your customers expect and desire from you. Placing a suggestion box in your reception area, cafe, air travel or tourism office so you can garner feedback from your customers. Furthermore, don’t just gather customer recommendations, but expeditiously act upon them showing that you really care and appreciate their business and value their opinion. It is very essential to understand the importance of quality customer service in hospitality in order to make a positive difference to the business through active listening, learning and implementation.

Prompt Service – Providing the best service is only the first step, providing it above and beyond the required pace is most essential in achieving a desired goal. Not being fast enough may cause you to lose an important customer and several other referrals. Keep in mind that if your customer is not satisfied, he will knock on other doors until someone else will, constantly learning how to innovate, meeting high expectations and providing excellent service. Customers should be the center of your universe and your services should be designed and tailored to meet their needs.

Convenience – Both the hospitality and other service related industries thrives on convenience. If customer’s convenience is missing, this essential ingredient, your business won’t last long unless numerous changes demonstrate your commitment to customer satisfaction. Service and hospitality industries were predominantly built to offer the basics of convenience to customers. Knowing that today the industry is expanding and the competition is rapidly expanding, hotel conglomerates are getting more and more innovative, thinking of various means to achieve highest possible standards in convenience offerings.

Value – Customer needs to be treated with priority no questions asked, and he should see superb value in the services received. Once a customer strongly believes he is getting a great value for the money he is paying, he will in no doubt keep coming back. On the contrary, dissatisfaction with your service will make him turn back and look for value offerings from your competition and paint a daunting picture of your business with his friends and associates.

Without these essential tools and services no industry especially in the hospitality sector will survive and stay afloat.

Community Based Tourism

Community based tourism is tourism in which local residents (often rural, poor and economically marginalized) invite tourists to visit their communities with the provision of overnight accommodation.

A community by definition implies individuals with some kind of collective responsibility, and the ability to make decisions by representative bodies.

Community based tourism (CTB) enables travelers and tourists alike to discover local habitats, wildlife while celebrating and respecting traditional native cultures, rituals and norms. Communities will be fully aware of commercial along with social values placed on their natural and cultural heritage through community based tourism, hence fostering conservation and preservation of these resources.

Nature lovers can visit naturally preserved areas accompanied by a local guide who explains traditional uses of the various plants and local forest lore, transmitting not just information but experience. CTB distinctively provides an excellent alternative to community development that’s previously not sustained, giving both rural and urban communities an additional source of much needed income.

In supporting community-based tourism, one can immerse themselves in the day-to-day living of the local and indigenous community members while helping to preserve their environment and rich cultural heritage.

Community Based Tourism is normally a jointly planned and managed tourism activity of local groups: this new business never can be the main or only income source of the communities and cooperatives but can be an additional income possibility for locals while effectively reducing the impact on the environment.

Characteristics that define community base tourism are:

Seeks to integrate natural beauty and the daily life of communities.

It promotes productive and sustainable practices

It adapts itself to the dynamics of rural life making it more welcoming and relaxed.

Is sustained by local initiative and participation, strengthening local organizations, which are made up of a wide cross section of families or of the community in general.

Fosters participation of the locals in the economic activity, distributing the benefits evenhandedly, while supplementing income obtained by farming.

Encourages land ownership by the local population.

Local culture passed on to the next generation

Build community management organization Environmental

Encourage respect for different cultures

Development in response to the community needs

A percentage of profits from tourism is contributed to a community fund for economic and social development of the community Fostering a shared learning process between hosts and guests

A local with organization or mechanism exists to manage tourism with the ability to link

tourism and community development Benefits are fairly distributed to all.

Educating and building understanding of diverse cultures and ways of life. Raising awareness of natural and cultural conservative among tourists and the local community

Stimulated by the sight of tourists and increasing support from government offices and local business operators, development agencies along with non-governmental organizations (NGOs), communities are fast developing the infrastructure and services required for sustainable CBT.

Rural community tourism in Jamaica for example, is a showcase of conservation of large tracts of virgin rainforest, reforestation work and organic agriculture as now been explored by the cockpit country and also a showcase of the rich musical heritage and colonial occupation when we were once enslaved, Travelers support these work through their visits and purchases of memorabilia’s available on location.

WHAT TRAVELERS CAN DO

Successful community tourism is mutually beneficial — for the communities and for the travelers. The big question is where to go? As some communities do have their negative side that spruce its ugly head every now and then.

UNDERSTANDING FAILURE

Community based tourism is not always successful; we could begin to look at these failures as pathways to great success. Rural community base tourism takes place in already marginalized areas. Created with great intentions, community-based tourism projects and activities are generally abandoned when political pressures arise, jealousies deeply intensify or the heralded ecotourism don’t arrive.

Many developers talk of ‘integrating communities into tourism,’ but they rarely visit a community and ask what it is locals would want to see done or the main areas that needs urgent attention. Instead, operations are just imposed in an all too familiar top-down fashion.

Likewise, many travelers may require to be graced with the experience community base tourism, but within two to four days they begin to complain that the services are not up to their standards or lack any form of professionalism. Greater time should be spent getting to know your guests. It normally pays off with a richer and more filling experience for all concerned.

Successful community-based tourism succeeds when it achieves mutual benefits for locals and visitors.

Factors Influencing Caribbean Tourism Growth

The Caribbean is experiencing a tourism boost.

The Caribbean islands have historically been popular with tourists from America, Canada and Europe. During the global economic recession, tourism growth slowed but remained strong. And now, with the ongoing recovery, tourism numbers are steadily rising with a 4 percent increase in 2010 alone.

Ease of Access

For most people living in the northern hemisphere, the Caribbean is the quickest getaway destination where they can be on a beach with a colorful drink in one to four hours. The Bahamas, for instance, has islands that are barely 50 miles away from Florida. This has made the Caribbean a favorite of many travelers and contributes to tourist growth. Airlines continue to create more flights such as the Jetblue route from both Boston and New York to the Turks and Caicos. And for those who prefer not to fly, there are numerous cruise ship options. These include the Royal Caribbean Cruises that visit the Bahamas, St. Thomas and the Disney Cruise Lines, which are tailored for families and take them not only to islands like Antigua, but also privately owned islands such as Castaway Cay.

Cost

As noted above, there are many options for getting to the Caribbean. Consequently, reaching the region is equally affordable, especially when compared with other destinations in Europe, Asia and even parts of Latin America. You can find an affordable ticket for a quick trip during off season when there are less tourists. And for large islands with airports that are hubs for air carriers, like the Bahamas and Puerto Rico, cheap tickets are available almost year round. And upon arriving, visitors can enjoy themselves without going broke. Save, of course, if they opt to shop at prime luxury stores, which can be found on many islands. This affordability is an essential factor in the region’s tourism growth.

The Caribbean has a variety of accommodations from high-end luxury resorts to bed and breakfasts and everything in between. These options mean that visitors of all economic levels can come to the region. But in addition to the accommodations is the affordable cost. Resorts and hotels continue to present competitively priced accommodations that attract visitors.

Reputation

The Caribbean has been visited by tourists since the 1800s, and tales of its beauty and relaxing environment precede it. In fact, the Royal Victorian Hotel was built in the Bahamas during the American Civil War, one of the earliest such establishments in the region. This continuing good reputation makes it easy for tourists to visit for the first time or return for a repeat vacation. Also, the region is known for being safe, alleviating concern from families and single visitors.

According to the Caribbean Tourism Organization (CTO), the Caribbean Basin in the most tourist-dependent region in the world. The region’s tourism dollars exceed gross exports by about a third of total receipts, and about a million workers are employed in the tourism industry. Many factors influence tourism in the Caribbean Basin.

Global Economics

Since the global financial crisis, which began in 2008, the Caribbean Basin has seen a slight decrease in visitation due to higher unemployment, particularly in major markets such as the United States.

Weather Patterns

Hurricanes and major tropical storms impact tourism in the Caribbean a great deal. Hurricane season in the Caribbean is June1 to November 30. In Caribbean islands where major storms are rare, such as Curacao, tourism remains unaffected by weather.

Oil Prices

As the price of crude oil increases, airlines cut back on flights to the region. This reduces access to the Caribbean Basin, resulting in a lower tourism rate.

Promotion

The CTO has increased the marketing and promotion of the Caribbean region, with more emphasis on Internet social websites, online booking agencies and international marketing offices.

Incentives

More deals and incentives by host countries attract more visitors. The CTO aims to provide attractive vacation packages to travelers, especially during holidays and the off-season.

TABLE OF CONTENT

Content Page

Objectives of Research ……………………………………………………………….. 1

Background ……………………………………………………………………………… 2

Methodology …………………………………………………………………………….. 3

Literature Review ………………………………………………………………………. 4

Findings and Analysis ………………………………………………………………….

Recommendation……………………………………………………………………….

Conclusion ……………………………………………………………………………….

Reference ……………………………………………………………………………….. 6

OBJECTIVES

Identify the term world tourist destinations
Analyze how the characteristics of a destinations affect their appeal to tourist
Identify the cultural, social and physical features of a tourist destination

BACKGROUND

The word tourist was used in, 1772 and tourism in, 1811.

“William F.Theobald (1994) recommended that “etymologically, the word tour is derived from the Latin, ‘tornare’ and the Greek, ‘tornos’, imply ‘a lathe or circle; the travel around a central point’. The suffix –ism is described as ‘an process; typical behavior or quality’, while the suffix, –ist specify ‘one that performs a given action’.

A destination is a specific location in which travelers decide to go to; therefore, tourist destination is primarily a travel city that attracts a large amount of tourist. Travelers may visit these destinations to see historic sites, natural wonders, or buildings. Some traveler’s attractions also contain activities, such as rides or games, or unique novelty. Souvenirs are often sold at the destinations, and many of these regions rely on the income generated by the tourists that visit.

Historical sites are frequently considered tourist destination. Normally, something of some sort of historical significance happened in these areas. Monuments or battlegrounds can be regard as historical tourist attractions. Gettysburg, Pennsylvania, is a good example of historical tourist areas, “Known for battle sites during the American Civil War in 1863, and resident of President Abraham Lincoln’s.”

“Areas with beautiful and unique natural creations can also be considered tourist destinations. Visitors to these areas are generally able to see amazing natural wonders, such as a waterfalls or canyons. Example of such is the Niagara Falls where millions of people each year visit; this destination is located on the border of the United States and Canada. This marvelous site is considered to be one of the Seven Natural Wonders of the World.”

METHODOLOGY

Qualitative research will be used throughout this assessment. Qualitative research is all about exploring issues and understanding facts. In the primary data collection method, there will be questionnaire and interview questions

The interview question were strutted benefits are, you would be better prepared to have follow up question when conducting the interview

The secondary research elements that I utilized was of high assistant because the primary sources could not fulfill some of the requirements of the assignment, and these are internet, books, classroom notes and articles that help me to obtain legible information for completing the body of my research

.

LITERATURE REVIEW

According Bhanumurth, (n.d) tourism is fast growing businesses in the world; it because the population have enlarged their free time and based on the cost of travel is not higher. Tourism boosts the employment and the revenue generation; tourism also contributes to the international trade among countries and supply beneficial foreign exchange. (Ramgulam, 2012). Therefore tourism is a quicker developing sector in the world, it because these days people have the ability spend the money go to travel see around the world. Ramgulam, (2012) cites as World Travel and Tourism council, (2009) also stated that tourism is fast growing business, so that it smooth the progress of the tourism development the WTO support countries diversify their economy.

Destination is very vital in the tourism sector. Destination Management Organizations (DMOs) is playing a major role in the running destination network, and it also helps to raise the relationship between the cooperation and the destination actors. (Pechlaner, 2012). Moreover destination believes as a tourism product. A destination not creates by one action then can become a destination it needs other process just can build “a destination product such as the tourism attractions, tourism institutions, transportation, hospitality, food and beverage lastly is host community. Gather all the operation it can build a successful destination package. (Botti, 2009).”

Tourist chooses one destination over another for the reason, such as cultural appeal, destination’s features and attractions, customer’s ability to access the area.

In dealing with tourist destination there are many characteristic that affect the appeal of the area, such as infant mortality, life expectancy, level of poverty and migration from rural to urban.

With dealing with tourism government and the industry has to deal with political instability which is describe as a condition of a country where as been toppled, also as a tourist you have to considered the type of leadership style that in the destination of visit, because one doesn’t want to be within a country that under a absolutist

FINDINGS AND ANALYSIS

LO1: Understand the scope of key UK and worldwide tourist destinations

1.1 According to UNWTO’s statistics France had attracted 83.0 million tourist in 2012 a 1.8% grow from 2011. France had invested a total sum of 37.2bn which is $64.2bn less than China and profited from a lump sum of $46.2bn. The main attraction in France are beaches, ski resorts, seaside resorts, villages, museums and galleries, amusement and theme parks, castles, palaces and historic sites. Paris being the capital and largest city holds most attractions. Unlike china, France is more of a multi cultural place celebrating and sharing traditions, cultures and religions from around the world. China has attracted 57.7 million visitors in 2012 which is an increase 3.4% from what they achieved in 2010.

Reasons France generates 5th more tourists in the world is because of currency, Euro is very strong. People from France travel to other countries and exchange their currency, they could get much enough money to spend their vacation. Population, France is 21nd rank (65,027,000) in world’s population list. This could be a one of the reason why France generates more tourists also French can get visa’s to travel all over the countries and also passport is acceptable in more countries to travel by on arrival visa unlike China which is the opposite expect for their currency which is also very strong.

1.2 In 2012 there were 1.03bn international tourist arrivals worldwide, with a growth of 4.0% as compared to 995 million in 2011, according to UNWTO’s. France had 83.0 million tourists in 2012 and 81.6 million in 2011 comparing to china that had 57.7 million in 2012 and 57.6 million in 2011, clearly tourist had preferred France as on destination compare to China. The UNWTO is predicting tourism should increase in rate in nature and culture tourism as well as health and black tourism. A tourist doesn’t always want to experience beach lust, some tourist rather a mixture of culture, adventure and other features and attraction of the destination which would make France one of the top tourist arrivals because a variety in its destination. Recent studies from the World Trade Organization (WTO) says in 2020 China will become the largest tourist country and the second largest for overseas travel. Presently, china is ranked the third and is likely to be the fastest in travel spending. Thus china is expected to be the fastest growing in the World from 2006 to 2015. Thereafter china will jump into the number two place for total travel spending by 2015. While France holds of tourist view for taste, it has numerous great appeals to the area. As the years are to come, the travel and tourism industry is expected to stay a major part for job creation and growth in France. France as a tourist destination is facing many competition against many other destinations; such as Turkey, China and India. Tourism is predictable to face major challenges in the next few years, from globalization to environmental issues. To tackle these issues, the French government commenced a new plan, “Strategie Destination France 2010-2020”, designed at making tourism more competitive and environmentally-sustainable.

LO2: Understand the culture, social and physical features of tourist destinations.

2.1 Tourist chooses one destination over another because of the destination itself, customers’ ability to access the area, cultural and social and physical appeal. For example France has a rich culture and has been shaped by geography profound historical events. France, and in particular Paris has played an important role as a centre of high culture since the 17^th century in cinema, fashion, cuisine and language. Social appeal of France refers to respecting human rights and equal opportunities for all in society. It requires an equitable sharing of benefits, with a focus on alleviating poverty. There is an emphasis on local communities, maintaining and strengthening their life support systems, recognizing and respecting different cultures and avoiding any form of exploitation. France has display that it has many physical features of the country such as River Seine, River Loire, River Garonne and the Alps, Massif Central and Pyrenees which are mountain ranges. France also has the highest mountain Mont Blanc, the Island of Corsica and the Ardennes forest. While China cultural features include Chinese architecture, dragon-boat racing, inventions and technology, shanghai and scared peak. Tourism in China has greatly expanded over the last few decades since the beginning of reform and opening. The emergence of a newly rich middle class and easing of restrictions on movement by Chinese authorities are both fueling this travel boom. China physical appeals of tourist also include forests, deserts, extensive mountain ranges, plateaus, sub-tropical forests and rugged high altitudes.

In comparison of France and China, France has shown that its cultural, social and physical are of rich background and of such tourist gravitate to the destination much more. China has great features to the destination and because of such it lays at the third position worldwide.

2.2 France is about 80% the size of Texas. Near the Italian and Swiss borders is the highest point—Mont Blanc. It is the largest country in the Western Europe and the European Union, and the third-largest in Europe, with the population of 66million. Paris being the capital which is the nation largest city and main cultural centre has over 37 sites inscribed in UNESCO’s World Heritage List and features of high cultural interest such as beaches and seaside resorts and rural regions that many enjoy for their beauty and tranquility. Some of the tourist destination site includes: Disneyland Paris theme park, Eiffel Tower, Louvre Museum, Palace of Versailles and Musee d’Orsay. With 475 airports and an effective railway system accessibility is not of an issue to France along with visa requirements.

Even thought France is a top tourist destination, this country faces many issues like others countries, like: the legalizing of gay marriages, prostitution, immigration and poor suburbs. The major issue France faces is human trafficking, which was stated by refworld.org that twenty thousand people in France’s commercial sex trade and about 75% of which are tourist.

In comparison to China that is located in East Asia and has a population of over 1.35 billion and covering approximately 9.6million sq kilometers, China is the world second largest country, which has a single-party state governed by the Communist Party with its seat of government in the capital of Beijing. China has become one of the world most visited country for both inbound and outbound tourist, which had generated 57.7million tourist in 2012 and place the country third on the top tourist destination sites. Some of China famous destination sites include: Yabulin Ski Resort, Hong Kong, Forbidden City and the Great Wall of China. Even thought China is third on the destination scale, to be at the top and stay there the destination has to deal with current issue affecting tourism such as travel requirement which is expensive, time consuming to some tourist, language and accessibility.

LO3 Understand how the characteristics of destination affect their appeal to tourists

3.1 It is not easy to compare the appeals of France tourist with that of China because they have different yet similar characteristics. China is located in East Asia and has a population of 1.34billion and of 9,706,961 km?. China is one of the oldest socialist country and its ranked a hundred and sixteen place in the world terms of environmental sustainability. The climate varies greatly. The winters are cold and summers are hot, however although the winters are cold, they are dry unlike American and the summers are very rainy.

The most popular tourist attractions are:

Pudong Skyline, Mogao Caves (finest Buddhist art cave), Leshan Giant Buddha, Mount Huang, Li River Cruise, Terracotta Army which is a collection of terracotta sculptures depicting armies of Qin Shi Huang the first Emperor of china, Victoria Harbour which is the deepest ports in the world that sunning views of skyscrapers of Hong Kong and Tsim Sha Tsui shoreline, Forbidden City, Potala Palace and the Great wall of China

Comparing the physical features of France and China, we can say that both of tthem have beautiful and unique landscape and a great biodiversity; however China is popular for its great flora and fauna. France has amazing physical features but consideration of weather should always be in tourist plans. Culture is another important factor and although China has an original culture, France represents a special Chapter for humankind: Literature, theatre, music, architecture, museums and cuisine.

It is very hard to produce the French culture in one paragraph hence my conclusion is that both destination have a lot to offer to tourist in terms of infrastructure, transportation, accommodation and attractions and will continue to do so once they have an sustainable tourism development plan.

3.2 Evaluating the characteristics of a tourist destination affect its appeal in various factor that have to be taken in consideration:

– The over commercialized resorts or destinations can lead to overcrowding and a high rise of buildings. In France this experience has been kept under control by the authorities, because the infrastructure has suffered a continuous development and the law enforcement has been trained very effective to cope with the large number of tourists, especially in the summer time.

– Sales promotion and advertising can have a negative impact on tourism, like the terrorist attacks on 9/11 2001 in USA and 7/7 2005 in UK. A positive impact can occur, for example the media coverage for the 2012 Olympics.

– Crime is one of the most important factors that influence the choice of any tourist. France is one of the safest countries in the world, however many tourists are targeted by pick-pockets in crowded areas like Oxford Street in London or resorts like Brighton and Bournemouth. * Product life cycle – the authorities in UK have strong involvement in tourism, providing many facilities and services for visitors, for example there are numerous tourist information centres, maps with current location can be found in most of the bus, train and underground stations, all police officers are trained to help tourists and there are many interactive digital maps located in the most visited places. For 2012 Olympics, London has suffered massive development works: widening North Circular, the development of East London area or improving the transport system. The situation of the economy can have a negative influence on tourism for a country like UK: the inflation, the exchange rate, the infrastructure costs will result in less investment in critical areas like health, social care or education.

APPENDIX

Fig 1.1

Statistic Verification

Source: World Travel Association

Research Date: 12.19.2013

World’s Top Tourist Destinations

Annual Visitors (Millions)

1

France

76.5

2

Spain

49.5

3

United States

45.5

4

Italy

39.1

5

China

33.2

6

United Kingdom

22.8

7

Russia

21.2

8

Mexico

19.8

9

Canada

19.7

10

Austria

18.2

REFERENCE

What Is a Tourist Destination? (with pictures). 2014. What is a Tourist Destination? (with pictures). [ONLINE] Available at: http://www.wisegeek.com/what-is-a-tourist-destination.htm. [Accessed 12 March 12, 2014].
Tourism – Wikipedia, the free encyclopedia. 2014. Tourism- Wikipedia, the free encyclopedia. [ONLINE] Available at: http://en.wikipedia.org/wiki/Tourism. [Accessed 12 March 12, 2014].
Niagara Falls Traditions l Lifestyle and Habits of Niagara Falls Residents – USA for Tourists. 2014. [ONLINE] Available at: http://www.orangesmile.com/travelguide-niagara-falls/traditions-20088351.htm. [Accessed 12 March 12, 2014].

http://en.wikipedia.org/wiki/France#Tourism

http://en.wikipedia.org/wiki/World_Tourism_rankings

Main Page（Home）

www.bized.co.uk/sites/bized/files/docs/appeal1.ppt?

View shared post

As the Hospitality industry is a very vast topic, therefore, in order to make my dissertation proposal probable, I had to narrow down the hospitality industry to hotels and bars only for some part of the project like the change in the viewpoints of consumers, and for certain hotels which have their locations all around the world. My key focus would be mainly the top Players in the Industry owing hotels and lounge.

In the recent past years, India has witnessed a tremendous boom in the hospitality industry, just like many other segments. The fact that the India’s economy had been growing rapidly and India as a whole had been facing a huge challenge of being “under roomed” gave a juncture to the hospitality industry. In order to leverage this opportunity a lot of real estate developers have also been investing into this business. (http://www.iloveindia.com/economy-of-india/hotel-industry.html, viewed on 28-dec-2010)

However, with an increase in the tourism industry, IT, BPO segments, foreign travelers, affordable airline fares, etc, there has been a growth in the hospitality industry. Many other factors such as Commonwealth Games in Delhi have been fueling the need further. The middle class is becoming more opulent and the native Indian tourist travel has been growing rapidly, particularly in places such as Goa, Kerala and Rajasthan.( http://www.iloveindia.com/economy-of-india/hotel-industry.html ,viewed on 28-dec-2010)

It was often said that a hotel must have a beautiful location and a succulent food in order to succeed. However, in today’s competitive world, even an inconsequential mistake can prove to be jeopardous. The contribution in the information technology segment has also strengthened and so the growing hospitality industries have started looking for new areas to improve their work and efficiencies. The IT first came into start at an upfront desk where the receptionist would look for the names of the customer and then provide them with a room. In order to improve the operations, big hotels started setting accounting system and software’s for their back offices. As the chain of hotels started progressing in their process across the country, it was much required to look after their assets. This gave rise to the demand for a system to manage the property, which allowed hospitality groups to keep a track of their assets across different states. It was during the same period of time, that the big hospitality chains also felt the need for centralizing the system. This period saw chain of hotels being networked and then connected to a central server. Just like the Taj Group of Hotels have linked a WAN that’s named Taj Net, which connects the groups of 55 properties across India, Nepal and Sri Lanka. There are many advantages in having a centralized system. As the Hotel industries has been dependant on Travel and Tourism industry to a great extent, the combination of this travel and tourism has also helped in building up hospitality industry. (www.expresshospitality.com viewed on 03-Jan -2011)

RECIPIENT FOR THE RESEARCH WORK

The recipient for this research work would be:

The key recipient – Myself

My research adviser

Top Hotels/ Resto- Bars in India and their Managers

The Customer’s of Hotels

RESEARCH SUITABILITY

The topic that I have chosen for research relates to me very well. In the present day scenario, the global market trend sights that the survival of the fittest companies are competing with each other and the quality and service that these companies provide are the key concept for any companies’ growth. My research is focused much towards the support and service that is provided after occupying the hotel room and for any organization it would be a basic foundation concept to satisfy their customers and understand the need of their customers. As we can see many of the leading MNC’s are paving their path to countries, which could provide them with services with better quality.

LITERATURE REVIEW

The hospitality industry is one of the largest employers in most of the countries with being geographically dispersed in different sectors. The globalization of the industry has advanced under the influence of the “advances in technology, transportation and communication, deregulation and elimination of political barriers as well as thriving competition in the global economy (Clarke and Chen, International Hospitality Management ,w. 2007). The hotel as a whole is basically a mix of five characteristics: its location, its mix of facilities, its image, the services that it provides and the price it charges (Holloway and Neil Taylor, 2006, Pg. 2003).

As said by Amadeus, “the global hotel industry is driven by globalization, new

Technology and a new breed of customers”. The hospitality industry, which has been with unparalleled opportunity, is undergoing a period of extraordinary transformation. A report accredited by the Amadeus group to learn about the hotel industry, recommended that the hospitality industry stand to face major difficulties from the emerging new technologies such as bookings through tele or mobile phones and from the online social networking sites. Guests can now easily exchange views about what they think of the hotels through social networking. Quality is now given more priority than before. Hotels are under threat to deliver the highest standards of excellence as the knowledge and level of exposure of travelers has increased. The hotels have been awaiting to modify their technology and communication systems

as mobile booking has expected to become a very common practice.(HayHurst,2008).

In recent years, the organizations in the hospitality industry are undergoing a

great deal of distract as due to the pressure of globalization, the competitive forces

within their businesses have been modified. Therefore, in order to survive, most companies have realized that they must frame a competitive advantage by relying on their employees to improve the quality of delivery (George Bohlander, Scott Snell, 2009 – Business & Economics)

Hoteliers are now able to identify the value of risk taking, novelty, and the intense search for opportunities as primary drivers of growth and value creation (Jogaratnam G., Vol. 18 No. 6, 2006). In addition, there has been an increase in the usage of technology as a mode of making online reservations through several distribution channels. These channels can be interpreted as an organized and serviced system that is paid for, out of the marketing budget and is used to provide an access to the customers, who are away from the location of production and consumption (Middleton and Clark, Marketing in Travel and Tourism, 2001).

Usually in India, customers would make a reservation by either directly approaching the hotel or by booking through a travel agent. However, now the electronic distribution channels like the Global Distribution System (GDS) and the internet have been steadily gaining popularity. (Dabas and Manakt., Vol. 19 No. 5, 2007). Because of the perishable nature of the inventories, its very crucial for the hotel to have an economical distribution. (O’Connor ,Vol. 4. pg 1-15, 2002).

RESEARCH METHODOLOGY

Every research methodology includes a research design which may be defined as “the set of conditions organized hypothetically for the collection and analysis of data that aims to integrate relevance to the research process with economy in procedure”

Research Problem:

Understanding the development in hospitality industry along with the current trends and, how the companies have been affected the need for their consumers as well as their perception.

Research Question:

The changing trends of the Hospitality Industry in India

Research Objectives:

1. The performance of Hospitality industry in India.

2. How has the trend transformed in the past few years.

3. Analysing the demand and supply of accommodation and growing

prices in different Indian hospitality industry?

4. How has the perception about the restaurants/hotels and bars changed in the minds of consumers?

5. Who are the chief players in the Indian market as well as the ones that have branched outside India?

Approach:

Since there is no relationship between the Hospitality Industry and the conclusion, the research would be fully prelusive so that the conclusion, which is being analysed using different methods of survey and study, would support the research.

Strategy:

The strategy that will be followed for the research work will be Surveys. Surveys will be taken from either the Hotels or Resto-Bars in India and also from the customers of different hospitality segments.

DATA COLLECTION

My data collection processes for this research would consist of series of procedures, which would be further branched into primary and secondary data collection.

PRIMARY DATA COLLECTION

The main processes that I would be relying on while using my primary data collection would be through questionnaire based on the information, that will be done by personally meeting the customers and by sending them posts and by meeting the staff of the hotel in person.

The questionnaire I would be working on, would be divided in a way that would be most efficient in handling them and by keeping the time factor into consideration, the most applicable system would be applied to the best suitable group. While applying a wrong process in gathering information would result in delaying the whole operation. The research topic requires a Qualitative method to evaluate the findings aimed for. A well framed questionnaire will be given in person.

The appropriate tool for my research proposal would be a type of a survey, because the best way to obtain the required data , in order to find answers for my research questions ,would be asking a set of questions.

Every methods of data collection have its own advantages as well as disadvantages. For example:

Internet survey: Survey done through e-mails and file sharing.

The advantages of Internet as a mode of survey are:

1. Survey can be set up faster.

2. Survey results are faster.

3. Response can be administered by allowing pre and post questions.

4. The skip-pattern questions can be used to eliminate interviewer error.

5. Respondent can answer at their own convenience.

6. Cost of interview in minimal.

Although, Internet survey has many advantages, it might not be the most appropriate method of surveying for this dissertation. The reason behind this is the anonymity of the web, which makes any type of affirmation difficult, if not impossible.

Postal Questionnaire is yet another type of survey which has the following advantages and disadvantages :

Advantages

Their costs are relatively low.

Data can be obtained from large sample areas.

Can avoid interview bias.

Privacy settings can be enhanced for the respondents.

Rating scales can be flexible.

Disadvantages

Poor response rates.

Respondents may misinterpret questions.

The intended person may not be the one who completed questionnaire.

The relative nature of the questions to be posted is supposed to have confidential information, has made me to decide that postal questionnaire might be the most appropriate form for collecting information.

The methods for data collection range from the simple use of postal questionnaire to face-to-face interviews, where an interviewer uses tape recorder and note taking as their tools for collecting information. Few of the methods are expensive but they surely guarantee a good response rate, while others being cheap to administer but are most likely to produce a poor response (Les Oakshott, 2001)

SECONDARY DATA COLLECTION:

The secondary data are the type of data that are made by others for their own purposes. The secondary data for my research proposal would be gathered from the companies own data archives and from their annual financial reports. In addition, the findings of former research studies on outsourcing an accounting process would give an ample amount of historical data or decision-making patterns. I would also be using Internet to get some more information about the industry and use journals for getting instruction from the past researches on this topic.

TOOLS FOR DATA ANALYSIS

The data collected from the questionnaire would be analyzed through the SPSS text analysis. Different mode of SPSS analysis will be used in analyzing the data from the questionnaire.

RESEARCH : NEW AND RELEVANT?

Lately this topic has been quiet popular , with a boom in the hospitality industry there have been a lot of researcher working on this topic in order to understand the needs and behaviour of the people, so that they could suggest steps to improve and help grow the industry. The topic for this research is also a hot subject as the tourism industry is also connected with the hospitality industry and the tourism industry has progressed alot.

In the last few decades, the hospitality industry has gone through many changes. According to Go and Pine, (1995) and Guerrier et al. (1998), changes in the industry are mainly due to the globalization, the changes are mainly due to globalization. Supported by Barrows C.W and Power T. (2009) globalization, in a sense has become old news but with the falling of trade barriers brought on by the North American Free Trade Agreement and the European Community has made borders seem nonexistent. With North America and European countries having a major trading role with other countries, the ease of financial transaction and information is an important step in the restructuring of the hospitality industry. Besides globalization, the growth of multiple ownership of hotels and stronger hotel brandings in the late 90’s and early 20’s has affected the hospitality industry, especially in organizational structure. (Go and Pine, 1995 & Guerrier et al, 1998)

Moreover, in this day and time, while those changes are still relevant, there are many other factors that contribute to the ever-changing nature of the hospitality industry. World changing incidents such as the tragic terrorist events in North America, Madrid, London and Bali, the severe acute respiratory syndrome (SARS), hurricane Katrina, the economy downturn, the A (H1N1) influenza pandemic and political tensions of the past decade will have a lasting effect on how the hospitality industry will operate. While there are challenging issues in the past, never has the industry have to face with so many issues at one time. However, in the face of these challenges, the hospitality industry is set to beat expectations on economic recovery with Global Travel & Tourism Economy real GDP growth is expected to rise by 2% this year beating the estimate of 0.5%, and thus creating an extra 946,000 job worldwide. (WTTC, 2010) High profile hospitality institutions have gotten together and hosted panel discussions and studies on the effects of these tragic incidents on the industry particularly on the terrorist incident of September 11, 2001. Both short term and long term effects are seen on the hospitality industries. These studies have identified different effects ranging from people not travelling for any reason to travelling for important needs and finally to somewhat normal travel patterns of the past. Surely but slowly the patterns will reach normal levels but the question here is when.

Trends of the hospitality industry

These days as more and more people travel the world be it for pleasure or business, they want somewhere as close to home to feel comfortable. However, there are other people who want otherwise, something different rather than having the same feeling at home, they want a different experience of living style which they can only dream off. (Weissinger, 2000) Therefore, there are many diverse types of hotels that sit under the umbrella definition of ‘hotels’. On that note, the front office department is often considered the nerve centre of a hotel and is unchanged in terms of roles to be played. (Bardi, J.A., 2007) According to Vallen and Vallen (2004) front office is defined in terms of role as the first and main contact point between a guest and an operating hotel. Generally the front office activities can include all functions that center around the reception desk and its allied areas. This can be simplified from greeting guests, providing of information, checking in and out, till the moment they leave the property. Roldan (2004) states that the key to success of a hotel business starts off with the first contact between the guest and the hotel personnel. Being the first contact point, the front office staff’s first impression upon a hotel guest is vital; the way they are received and treated can mean repeated patronage in the future.

The future professionals of the industry have to analyze who their customers are and what they want. In today’s day and age, Bardi J.A., (2010) and Barrows C.W., and Power T., (2009) supports Go and Pine, (1995) and Guerrier et al., (1998) in its changes of factors in the industry and moreover identifies additional aspects such as the different trends of customers that foster growth in the industry, the author says that, the trend towards the increase in leisure time and working less years is one reason behind the growth. The second factor would be the pleasure concept of consumers that was brought forth Barrows C.W., and Power T.,(2009) reinforced by Bardi, J.A.,(2010) stating that the work ethic of the eighteenth and nineteenth centuries have greatly influenced the way Americans play, as recreation and leisure was were considered privileges. With that in mind, in the world today, as the current trend for discretionary income in the emergence of two-way income and family planning is booming, the hospitality industry is changing.

Problem Statement

The hospitality and tourism industry is an ever-changing industry with new technological advances and trends that comes in waves and then disperses. Hotels being a part of the industry have to adapt and change as well. The hotel front office is one area that has to constantly reorganize with the changes in the industry. In regards to the fluctuating environment of the industry, the industry is still making a comeback, stronger each year. Both the demand and supply for workers are present at state; however, the qualities of these workers are still in question. The high labour turnover experienced in the hospitality industry is common in this day and time and can be due to many factors such as long working hours, low pay, the wide array of job opportunities and many more. In the hospitality industry, especially in the hotel sectors, service is the key to retaining customers (Maxwell, Watson and Quail, 2004) and is what separates competition these hotels from one another. Therefore, it is not a problem to be taken lightly and this study aims to take a look at the people of the workforce itself.

Research Questions

What are the key skills and attributes needed to be effective in the front office department?

Does graduating with a high school certificate, diploma or degree in hotel management make a difference in terms of performing?

What are the future prospects of front office employees?

What are the intentions of front office employees?

What are the natures of front office work?

How do the industry players retain its employees?

Research Objectives

To investigate and analyze the key skills and attributes to be effective in the front office department.

To look into the subject of obtaining a high school certificate, diploma or degree in hotel management; does it make a difference?

To further gain insight on the future prospects of front office employees.

To investigate the intentions of front office employees and what they want.

To investigate further the scope of front office work.

A research into the ‘whys’ of employee turnover reasons.

With the informed data gathered upon answering said questions on top, the enablement of the hospitality industry players to estimate

Hypothesis
Human Capital > Internationalization

Human capital positively affects the internationalization of an enterprise.

Human Capital > Service Innovation

Human capital positively affects the innovation of service employees in regards to their work.

Internationalization > Performance

Internationalization affects the performance of a firm whether it is financially or through guess satisfaction level.

Service Innovation > Performance

The innovation of the workforce leads to better performance and guest satisfaction.

Theoretical / Conceptual Framework

The original

Degree of Internationalization

Entrepreneurial Orientation

Performance

Service Innovation

Human Capital

The original framework was built for professional service firms especially small and medium enterprises (SME) (Radulovich, 2008). It was constructed to relate a service firm’s entrepreneurial orientation, human capital, the firm’s degree of internationalization, service innovation, and performance. This framework was constructed upon thoroughly examining in the aforementioned areas above.

Adapted Framework

Degree of Internationalization

Human Capital

Performance

Service Innovation

Skills and training (Human Capital) > Internationalization and Service Innovation > Effective workforce > Guest Satisfaction and Performance

This framework has been adapted and changed accordingly to fit into the hospitality industry’s index. The core conceptual framework is unchanged with the exception of excluding the Entrepreneurial Orientation aspect which is highly unlikely to affect the core concept and theory that is to be explained. As changes are made, Human Capital will now be the core driving force.

Hypothesis Related to Human Capital and Degree of Internationalization

In a study done by (Hitt, et al, 2006) concludes that human capital is a primary resource contributor to professional service international expansion. The theory here is that a firm’s degree of internationalization is closely related to the human capital of the organization. Key factors identified as contributing factors are knowledge (Autio Sapienza & Almeida, 2000) and also top management characteristics (Bloodgood, Sapienza & Almeida, 1996). This study also identified that the characteristics and experience of the top management team relates positively to the internationalization of an organization. Another more recent study also proves that there is empirical study which shows support for human capital resources as influencing degree of internationalization. (Hitt, Bierman, Uhlenbruck, & Shimizu, 2006) Therefore it can be concluded that there is positive influence of human capital professional service towards the internationalization.

Hypothesis Related to Human Capital and Service Innovation

Human resources can be defined as interpersonal and business skills and is proven that there is a positive effect on a firm’s innovation strategies. In a study done in the US, human capital at both the individual and firm level is identified as a positive effect on service innovations (Zhou, 2007). Shane (2000) also recorded that prior knowledge affects an individual ability to perceive new opportunities and to contribute innovative solutions. To support this theory, an in-depth study was done with 8 firms conducting a study on examining innovation and opportunity recognition and is reported that prior experience affected their ability to perceive opportunities and innovate. (Edelman, Brush, Manolova, 2005). Furthermore, the prior knowledge and specialized knowledge of the internal human resources are significant contributors to the innovation of work speed and competition level as recorded in Taiwanese high-tech ventures. (Wu, Wang, Chen, & Pan, 2008)

Hypothesis Related to Degree of Internationalization and Performance

Studies relating the degree of internationalization and performance are not new and there is empirical evidence to support this theory which positively affects a firm’s performance (Bloodgood, Sapienza, & Almeida, 1996; Delios & Beamish, 1999; Grant 1987; Hitt, Hoskisson, & Kim, 1997). Studies also show that as a new venture firm gets into the international markets earlier gains better advantages over their competitors and improved performance. (Brock, Yaffe, & Dembovsky, 2006). In the view of hospitality terms, a brand name can be created upon trust and loyalty which is an important factor for continuous visits.

Hypothesis Related to Service Innovation and Performance

Service innovation on service performance has been theoretically and empirically confirmed with studies done in recent years. It is confirmed that in differing context of globalization that innovation still improves performance of a firm. Zhou, Yin and Tse (2005) have documented this relationship in their study done in the emerging market of China. As China is a transitioning and developing market, it is only comparable to the market of Malaysia. The comparison of the effects of China to the economy of Hong Kong found that innovation plays a major role in both these markets. (Luk, Yau, Sin, Tse, Chow, & Lee, 2008)

Scope / Limitations

Scope: In this study, the author has chosen to conduct the research in all 5 star hotels in the area of the city of Kuala Lumpur. This scope will help dictate and represent city hotels in Malaysia as it is busiest all year round, and the job scopes of the hotels are wide enough to obtain data. On a deeper level, a survey will be conducted to all front office staff (e.g. Front office attendant, bellboy, front office accountant, etc) in order to obtain information.

Limitations: As for limitations, time restraints and resource limitations would be the biggest factor. As the author would only have approximately 6 months to collect and analyze the data, the depth of the research may not be too detailed. Besides that, there will be a limit to research options available to the author due to insufficient knowledge on research ways and as this will be the first research paper done by the author. Notwithstanding, being a student, there will be limitations in terms of access to data because of monetary issues and outlets to gain information in the industry.

Significance of Study

This research paper intends to analyze the different behavioural needs and wants of the front office workforce. By gathering the work backgrounds, studying the motivation factors and the intentions of this group, a better and effective workforce can be established to be in line with the transitioning aspect of the industry. Ongoing research is a must in this area because of the ever-changing prospects of the Hospitality and Tourism Industry, especially the front office department. Key skills and attributes are to be identified as a benchmark for structure when hiring by the Human Resource department. This paper would be a guideline for the hotel industry players to attain information on the behaviour of front office staff and their intentions for the future. Employing and constantly motivating a workforce is one of the hardest things to keep up in any industry. Without proper information on the behaviour and the intentions of the workforce, being in a labour intensive workforce and service oriented industry, there surely will be a loss in terms of customer satisfaction and the profits of a hotel and this is unacceptable.

Chapter 2 – Literature Review
Hospitality Skills and Nature of Hotel Front Office Work

‘Jobs commonly retain a low-skill character, especially in the fastest-growing sectors’

Bradley et al (2002) (p.129)

The hospitality sector is growing with a tremendous rate, especially in East Asia and the Pacific, Asia, the Middle East and Africa. These areas are forecasted to show a rate of 5% growth each year and 4.1% in Europe and Americas. (WTO, 2010) There has been long standing debate over the skills and nature of the front office work. It is widely characterised in both academic and popular press as a low-skilled job dominated by low skills profile. (Wood, 1997) In support of this theory, Shaw & Williams (1994) first claimed that the hospitality industry workforce were ‘uneducated, unmotivated, untrained, unskilled and unproductive’ (p. 142). Upon further research, the nature of front office work revealed by one side is in terms ‘un-unique’ (Mullins, 1981; Lashley & Morrison, 2000). Mullins and Lashley argue that the technical skills of the hospitality sector have relevance and can be applied to other sectors of the economy. Another dimension of why there is the public perception that the hospitality industry is regarded as ‘low skilled’ is because there are no real prerequisite for employment in terms of qualification (Huddlestone and Hirst, 2004).

As far as the research of Baum & Devine (2007) and Baum (2007) goes the educational attainment of a person is not an influencing factor to undertake the front office job. In terms of front office, the industry has considerable cross-over work of other sectors such as office administration, accounting, and IT systems management, these generic skills tend to overlap each other. In this argument, where is the uniqueness of work skill? By any means the hospitality industry is just borrowing a number of skill forces from different industries, in this case with a lower pay wage and a lower career development opportunity.

This theory of unskilled labour in the hospitality industry does not go uncontested, in the forthcoming years after the thesis (Baum, 1996, 2002). Baum questions the validity of hospitality work as a low skilled job universally based solely upon the assumption of westernized, international hospitality work. It may be perceived so in general, but it is not applicable in the developing world whereby the technical demands and skills are lower than those of the developed countries.

Another such example of a considerable contest comes from Burns (1997), Burns categorizes the labour force into two, ‘skilled’ and the ‘unskilled’. Burns uses a very distinctive definition of skills in the hospitality for this saying:

‘…the different sectors that comprise tourism-as-industry take different approaches to the human resources, and that some of these differences…are due to whether or not the employees have a history of being ‘organized’ (either in terms of trade unions or staff associations with formalised communication procedures.’ (p.240)

Both these factors are separated by manpower planning paradigns for the manufacturing sector and as for the workforce, it comes in traditional power, organization. The workforce takes control through the use of trade unions and control the supply of labour through apprenticeship and training.

Contributing factors worth noting are factors put forth by Seymour (2000) and Warhurst et al (2000), gives an added dimension to the work of hospitality employees. Seymour adds in ’emotional labour’ arguing that the added management of emotions as part of the day to day job is the difference between working in fast food as opposed to traditional areas of service work. The added ’emotional labour’ is there for the benefit of guest experience and that they are paid to do it. In Baum T. (2007), it is further perceived that there is the need for emotional intelligence (EQ) as defined by Goleman (1998)

‘. . . the capacity for recognizing our own feelings and those of others, for motivating ourselves, and for managing emotions well in ourselves and in our relationships. (p. 317).’

Explained by Warhurst et al. (2000) and Witz et al. (2003) the added aesthetic labour to the tools of trade is indeed of importance to the hospitality workers, especially to front office staff. In describing aesthetic labour it is the skill required to look, sound and behave in a manner that is required for the job while meeting the expectations of the customers. They have to demonstrate the ability to engage in different aspects with the customers such as cultural, social, and economical matters. This on hand requires a certain level of education to be obtained.

What industry wants: employers’ preferences for training.

In the industry, while representatives state that they prefer industry skills and experience above education skills and knowledge, it is only realistic that a mixture of both these qualities are required, which is lacking in the workforce. (Smith & Kemmis, 2010). In the hospitality industry most of the training is informal. Only a small portion (14%) of employees has gone through higher education in the respective industry. ( 2-1) The other 86% comes from the private sector and employer training in the industry. It was found out in a study that the National Vocational Qualification curriculum, found out that training in higher educational institutes would not cut it in the industry. (People1st,2009) In the same interview, two interviewees stated that on-the-job training is particularly the way to go in an industry that is interaction based in order for skill development. The focus on experience and skill over education is proved in a study done.

vocational education and training (VET) practitioners

Both industry groups felt that the most important skills and knowledge for trainers to possess were related to industry rather than education

There was a lack of tradition of training in the industries compared with other industries, with relatively new qualifications for most jobs, and managers in the industries were underqualified , meaning it was difficult for them to drive high standards in training. Given these circumstances it is perhaps surprising not that training for the service industries exhibits many challenges, but that it does the job as well as it does. This observation was supported by hospitality employers who acknowledged the difficulties faced particularly by TAFE teachers, and were very ready to make excuses on their behalf.

The recession, as in Australia, had provided opportunities for cross-fertilisation among industries as people lost their jobs in one sector and looked to move into other work where the skill set was similar (People1st, 2009). The standard of service in both industries was felt to be lower than required (especially in a situation where customer expectations were continually rising), with both industries also reporting a need for improved management skills. The hospitality industry had a skill shortage in chefs (People1st, 2009).

Customer service is paramount in these industries; Maxwell, Watson and Quail (2004, p. 159) point out that for hospitality ‘the customer reigns supreme’, and Huddlestone and Hirst (2004, p. 6), for retail, state ‘customer service is becoming the most essential employee skill.’ In a study of training in the Hilton chain, Maxwell et al. (2004, p. 269) note that a service culture is deeply imbued in organisational structures and practices, and cannot be added on simply by training individual staff.

Chapter 3

Research Design and Methodology

3.1 Overview

In this chapter of the sample proposal, an explanation on the research methodology and design is written. In the first part of Chapter 3, there will be a brief introduction on the purpose, aims and objectives and benefits of the study. Following that will be a discussion on the research design of the study. Exploratory details such as the population, sample and sampling procedures are discussed. On the third section of the chapter, there will be added explanation on the data collection procedures and data analysis steps. A brief explanation on the questionnaires will be given to give an insight on the questions asked.

3.2 Introduction

The purpose of this study is to illustrate the current behaviour conditions of the front office. The information gathered will compose of the nature of front office work, education attainment level, skills, work background, attitudes towards the area of work and plans for the future. By analyzing these areas and acquired from these group of people in the hospitality industry will enable the industry players such as managers, policy and decision makers to get a more personal insight look at the wants, needs and future perspectives of these in demand people. Appropriate changes and more effective strategies in regards to high satisfaction levels can be developed and be used in the industry to decrease labour turnover and low level performances.

3.3 Research Design

Population

The study is intended to collect data on one of the most important workforce in the hospitality industry; the front office workers. The population of the survey intended will be Front Office workers in the area of Kuala Lumpur.

Sample

The sample population identified in the survey goes by the different distinct areas of Kuala Lumpur (Table 1). The sampling method that will be used is Cluster sampling. Having already divided them into different location categories, the target sample is then identified as the front office workforce in hotels.

Name of Hotel
Area/Location

JW Marriot Hotel

Bukit Bintang

Park Royal Kuala Lumpur

Bukit Bintang

The Ritz Carlton Kuala Lumpur

Bukit Bintang

The Westin Kuala Lumpur

Bukit Bintang

Sheraton Imperial Kuala Lumpur

Golden Triangle

Hilton Kuala Lumpur

KL Sentral

Le Meridien Kuala Lumpur

KL Sentral

Ascott Kuala Lumpur

KLCC

Crowne Plaza Mutiara Kuala Lumpur

KLCC

Hotel Maya Kuala Lumpur

KLCC

Hotel Nikko Kuala Lumpur

KLCC

Mandarin Oriental Kuala Lumpur

KLCC

Micasa All Suite Hotel

KLCC

Pacific Regency Hotel Suites Kuala Lumpur

KLCC

Prince Hotel and Residence

KLCC

Renaissance Kuala Lumpur Hotel

KLCC

Shangri-La Hotel Kuala Lumpur

KLCC

The Gardens Hotel and Residances

Mid Valley

Palace of the Golden Horses

Mines

Grand Dorsett Subang Hotel

Petaling Jaya

Holiday Villa Subang

Petaling Jaya

Sunway Resort Hotel and Spa

Petaling Jaya

The Saujana Kuala Lumpur

Petaling Jaya

Table 1

For this study, a survey will be carried out on all the 5 star hotels in the city of Kuala Lumpur. On identifying the 5 star hotels located around Kuala Lumpur, the works of KL-Hotels.com were used. This will be verified again by…

Upon identifying the sample population, a sample frame will be created to categorize the hotels into different location categories for the enablement of easier data managing. An invitation will then be sent out to the General Managers of each selected hotel for approval on participating with the survey. Upon approval, the questionnaires will be distributed among the front office staff of the hotels.

3.4 Data Collection Procedure

Primary data – The data collected from the questionnaire will be the main source of primary data.

Secondary data – much research has been done regarding the effectiveness of a workforce and how to improve. These sources are highly resourceful and will come in helpful when data analysis is been done. The theories and conclusions can be used to support and disregard some of the findings in this study. The secondary data may come from a number of literature forms such as journal articles, textbooks and written experiences.

A formal proposal will be sent out to the General Managers of each of the selected hotels to ensure participation in the survey. Upon approval, the identification of all front office staff is indentified and recorded. As per identifying all the front office workers (night auditors, concierge, bellboy, front office assistant, etc) in the selected hotels, the questionnaire will then be distributed electronically to the head of the front office department; Front Office Manager. After the questionnaire is finished, the questionnaires should be collected and given back for data analysis. The data received will then be analyzed with the help of the SPSS data software. With the help of the SPSS program, bias answers and unreliable answers can be disregarded. As the data is sorted out and conclusions are done, comparisons will be done to reaffirm findings or to oppose them.

3.5 Questionnaire Design

The goal of the questionnaire is to collect data from within the front office department. To achieve this, questions pertaining to the nature of the job, the work background, intentions for the future and key skills and attributes will all be posted. In regards to explaining the structure of the questionnaire in sections, there will be 4 sections. The first section of the questionnaire will be in regards to personal details. The second part of the questionnaire will be closed ended questions with choices to choose from. This part of the questionnaire is to get a response from the employees regarding their views on the hospitality industry. The third section of the questionnaire will be about the nature of the front office work, and also to get an inner look to their needs and wants. The fourth and final section is designed to completely give freedom to the respondents with open-ended questions regarding their views on management levels and their thoughts on training and skills in the industry.