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The tourism, Leisure and Hospitality industry is defined, not in terms of the production of special types of goods and services, but in terms of the circumstances at which goods and services are consumed. Hence, the sale of a particular good or service to a tourist is “tourist expenditure”. As a result of this difference in concept, this industry overlaps the usual classification of the industries defined according to the goods or services they produce (Luck & Lancaster, 2003)

This research paper analyzes the tourism, Leisure and Hospitality industry basing on the economic analysis tools by Porter, Porter (1980) proposed that firms benefit from the understanding of the forces which drive competition and the profitability in their industry, and he specifies that all firms should explicitly formulate a kind of competitor strategy. (Matthews, 2000) in order to understand the competition, a very competitive analysis should be undertaken. The Porter’s model is also referred to as the five forces competitive analysis.

Generally the tourism, Leisure and Hospitality industry has a unique business environment which affects all the competitors. According to Porter, five macro factors that influence the industry can be identified in relation to competition; (1) The bargaining power of the customers (buyers). This force shows the strength in the bargaining position, particularly the price, which the buyers have over their suppliers. (2) The bargaining power of the suppliers. The Suppliers, including the employees, influences the attractiveness and the profitability of the sector by increasing the prices (or the wages) thereby increasing the industrial costs and reducing the profit margins. Powerful suppliers are the organizations which control the supply of goods and services to the Tourism, Leisure and Hospitality industry. (3) The threat from the new entrants. The threat from the new entrants is dependent upon the barriers to entry into the industry. This is based on the ability to generate the economies of scale and experience, the opportunities for the product differentiation, the amount of capital which is required to buy into the industry, and access the distribution channels. In the tourism, Leisure and Hospitality, there are low barriers to the entry in most sectors. (4) The threat of the substitutes. The Substitute industries which provide the competing product with offers that perform the same function. The Continual advancement in the technology keeps on changing the potential threat from the substitute products. For instance, the rapid development of the video-conferencing is a substitute product for the hotel meetings.

Introduction

The Tourism, Leisure and Hospitality industry is an identifiable and nationally important industry. This industry involves a wide cross section of the component activities which includes the provision of the transportation, accommodation, recreation, food, and the related services .Tourism refers to the provision of the transportation, accommodation, recreation, food, and the related services both for the domestic and the overseas travelers. It involves travelling for all purposes, including recreational and business. Hospitality and tourism are certainly two of the most widely used words in the fields of hotels, restaurants, travel, and related areas.

Leisure is a sector that is growing rapidly, with the regular shows and events hosted regularly. Leisure is recognized as the essential factor which contributes to the demand for the tourism and recreation.( Kotler,& Keller, 2006). Leisure is an important factor which contributes to supply. It is therefore the anticipation of leisure which is the operational demand factor, whereas the use of leisure is a factor of supply. The Leisure time is the fundamental resource that is input and consumed in the tourism, Leisure and Hospitality industry. The leisure/entertainment events have created employment for thousands of people in a diverse range of roles. This is a multidimensional sector which provides a variety of services in the areas that include the corporate events such as the product launches, press conferences, corporate meetings and the conferences, the marketing programs; road shows and the grand opening events i.e special corporate hospitality events like the concerts, award ceremonies, film premieres, launch/release parties, the fashion shows, commercial events, private events such as the weddings and other parties. The industry also includes fields such as the exhibitions, conferences and the seminars as well as the live music and the sporting events. This research paper analyzes and links the tourism, leisure and Hospitality industry through the provision of the creative, technical and the logistical insights.

Methodology

This research employed a web based survey in gathering data on the industrial analysis. I analyzed several theories that act as the strategic tools for analysis. The instrument was divided into two parts;

The “Descriptive Analysis”, which describes the tourism, Leisure and Hospitality industrial analysis basing on Porters model of analysis.

The “Critical Analysis”, which assesses the extent to which various factors identified by Porter influence the Tourism, Leisure and Hospitality industry.

The contexts for the study were based on the distinctive nature of the Tourism, Leisure and Hospitality industry. Information was collected in the process of evaluation of the influences of the fundamental factors that determine the profitability: Industry structure, that determines the profitability of the average competitor and sustainable competitive advantage that allows a firm to outperform the average competitor” (Porter, 1979).

Analysis of selected industry

This paper examines the five forces which impact competitiveness within and thus the profitability of a competitor in the Tourism, Leisure and the Hospitality industry. From the guidance provided in the Five Factor Model recommendations are made to enhance and refine this industry.

Porter’s Five Factor Model

The five forces that impact on the competitiveness which are outlined in the Porter’s 1980 work are: the barriers to entry, threat of substitutes, the bargaining power of the buyers and sellers, and the rivalry among existing competitors. In considering these factors in light of the Tourism, Leisure and Hospitality industry, the theory provides the best means for analysis. According to Porter each of the above factors has a difference in relevance or impacts differently on the businesses so they are presented below in order of impact. Porter (1980) indicated that the most important determinant of a marketplace’s profit potential is the intrinsic power of the buyers and the sellers.

Threat of Substitute Goods

In the Tourism, Leisure and Hospitality industry there is usually higher chances to start a new business and progress successfully. The firms appear in all price ranges, with variations in the levels of service and the amenities. The constant challenge will always be to get the customers to choose your services over the competitor. With the technological advancements the internet makes the overall market to be more efficient while expanding the size of the potential market and creating the new substitution threats. Given the potency of this industry a superb strategic plan is vital.

The threat is that another firm chain may erode the customer base with a newly formulated internet approach or the marketing campaign. According to Porter the development of a value chain process analysis, supported by the collaborative event management, the structuring and sharing of the customer focused value chain data, powerfully enhances the performance of the value chains and of the electronic commerce.

Bargaining Power of Buyers

Business persons choosing a firm for business in the Tourism, Leisure and Hospitality industry are the savvy consumers and they are at par with the changes in the ability of their consumers. It has become very simple for the consumers to go online and survey on the best firm that offers great services. They no longer need the assistance from the travel agents, the corporate travel consultants or the middle men of any kind to determine where they will get their services. Porter’s model predicts the ability of the buyers bargaining power to elimination the intermediaries.

The Tourists who are the major consumers in the Tourism, Leisure and Hospitality industry are more and more capable of making use of the technological advancements in the means of communication such as the internet to increase their bargaining power thereby creating the fulfillment of Porter’s model. Due to the increased bargaining power of the consumers, they are finding internet businesses websites which will negotiate or discover the bargains for them. These processes shifts the bargaining power to the end user as it had been predicted by the Porter model and these buyer freedom reduces the cost of switching so that the loyalty to a single firm is a thing of the past unless the particular firm uses its one time opportunity when the customer sticks to the firm it deeply impress other customers with a very unique and valuable differentiator.

The Rivalry among existing competitors

The rivalry amongst the competitors in the Tourism, Leisure and Hospitality industry is fierce. When the potential customers learn about a hotel on line, the internet reduces the differences amongst the competitors. Business people tend to seek the best prices for the best experience and the tendency is to reduce the prices to a competitive level. This industry covers wide area so the market is widened which increases the number of the competitors. For example, someone who wants to spend the day in the historic site can easily choose a tourist firm in the nearby town if the amenities or the prices are low. The Variable and fixed costs can be different in the areas which are more expensive to live.

Barriers to Entry

The initial investments in the Tourism, Leisure and Hospitality industry creates quite a barrier to the entry but certain barriers to entering the tourism market are reduced by the internet. The presence on many efficient communication channels reduces the upstart marketing costs somewhat, and gives the new competitors the access to the potential suppliers and the resources. Even a starter in the industry can use the channels of large chains to understand the key marketing concepts and the lures for the customers.

A vital barrier is the differentiation. A firm that can successfully differential itself by the location, service, amenities or other quality has the greatest potential to attract and keep the clients. Another barrier to entry into business in the Tourism, Leisure and Hospitality industry would be the expertise. Unfortunately, in a mobile society employees can leave one firm chain to work in another and they take that expertise in terms of the training given or the experience with them. It is in the areas of expertise and of differentiation that a firm can make the greatest impacts on its clients and thereby on the bottom line. Many established tourism, leisure and Hospitality companies have the synergies between their established business and business channels.

Bargaining power of the suppliers

This is not a substantial threat in the Tourism, Leisure and Hospitality industry it can have the impacts especially in the area of the suppliers. The employees to the firms are the major suppliers, the bargaining power of the labor supply is higher when there are fewer people to fill service section of the industry, and the firms can attract excellent staff and create a chance for providing excellent and exceptional experiences to their clientele. As part of their strategy all the firm chains should have section employee recruitment. The other supplies that are needed by hotels are also easier to attain through internet channels whether originated by the supplier or by the hotel chain. With their products in the greater demand by greater numbers of the firms the suppliers gain more measure of power by competition for their offerings.

Findings about the industry

All of the firms in the Tourism, Leisure and Hospitality industry can benefit from Porters model of analysis because of the applications that produce greater value in the value chain, the industry is dominated by a few large companies. They have the greatest market shares and in most cases they influence the structure and shaping of the industry. The firm’s planning sector can benefit from analysis. They usually aim at making the profit and are usually commercial companies. When they fail to make a profit over a long period of time they are likely to cease trading. These include the parks, restaurants, tour operators and the travel agents. The Human resources can be managed by the analysis as part of the overall strategy as well as the provision for self service personnel and benefits, Value can be increased by standardizing the firms across multiple locations, forming knowledge directories, and allowing real time access to the resources by the consumers. , every firm could benefit by controlling and forecasting systems with suppliers as explained by Porter. These improvements can also lead to greater profitability (Porter, 1980)

Each type of firm needs to identify its unique strengths and the target market and align its strategy to support their identity, the firms’ chains choose to be low cost, or to command the premium price. Distinguishing a firm from the competition becomes vital. This can easily be enhanced by porter’s model, through the superior inputs, through better training of the staff as part of the supplier or through the better management. Differentiation adds value which makes it hard to maintain the distinctive strategic positions of a firm because it eases change to best practices and it improves the operational effectiveness. These distinctions make the business more profitable.

The firms in the Tourism, Leisure and Hospitality industry are fragmented. Therefore there is need for a strategy which makes it easier for consumers from far and wider areas to learn about the firms or to order for the services, the consumers must still access the services. It more likely for the profitability to be there for when process is easy to transact and complete. Porter points out similar examples within the industries. Dealing directly is great for the firms. Other than travel agencies who arranged hotel stays the tourism business has always been a face to face business and this normally sustains the economic value of the transactions. For all of the firms’ chains the porter’s model complements rather than cannibalizing the established ways of doing business. Hence it becomes a link in the value chain.

Conclusion

Whether a firm or its chain is well established or brand new, the underlying forces of competition will include: the threat of substitution, bargaining power of the buyers, the intensity of rivalry among competitors, the barriers to entry for new competitors, and the bargaining power of the suppliers helps to determine the profitability shapes its internet presence. When combined, these factors determine the economic value and even the survival. The porter’s model of industrial analysis provides the opportunities for the companies to communicate and establish the unique or distinctive positions for the businesses. In the case of tourism firms this is crucial.

The Porter’s five factor model helps to understand the rise of new ideas and the business firms in the context of the bargaining power of the Buyers. It helps in the understanding of what factors drives the businesses to differentiate themselves. It also helps in explaining why the labor may have greater bargaining power in the firms under the tourism industry; Porter’s concept of the “Bargaining power of Suppliers” determines the strength of the industry.

In reviewing the strategies of firm chains, differentiation is the key component. Some firms have chosen to differentiate by location and by very luxurious experience. Others have differentiated themselves by standardization means and by the price. The firms’ strategies must align with their business strategy in order to produce the desired profitability; Porter’s model leads the way of outlining the issues and the dangers which are inherent in each force.

In this paper, the recommendations for successful industrial analysis are made based on Porter’s model and the implementation of its suggestions could ensure a greater or continued profitability at the time planning and the structuring. This includes not only the customer interaction but also the applications in a variety of areas such as supply chain, the financial and Human Resources to increase the value chain. For the final analysis, however, Porter makes it clear that the model can add value when it is used in conjunction with other good business strategies.

Sri Lanka is one of the most sorts for tourist destinations in the world. It is advantageously situated between West Asia and South East Asia has been a significant stop on the silk route. To express the richness, beauty and the intensity of affection: the visitors addressed the country as Serendib, Ceylon, Teardrop of India, Resplendent Isle, Island of Dharma, and Pearl of the Orient.(Lanka Facts, 2012).

Today, visitors are welcomed to Sri Lanka to experience the nation’s glittering tapestry of culture, and the rich abundance of nature, so handsomely bestowed, and to give credence to the old adage that good things come in small packages. Its landscape orientation especially the Warm Sun kissed Beaches creates mix of opportunities which lead to the final holiday destination. The diversity of temperatures, vegetation and scenery grab a large sense towards Srilanka. It is a most demanding country for lovers of nature and wild life because tourism offers safaris, Treks, Nature walks and Camping that could be a marvelous experience for them. The entire island is swarming with birds and animals. And the animals like elephants and leopards are not scarce. Though foods are not much expensive: they are tasty and the people of the country are very friendly and helpful.This colourful collection act as an indicator of its richness.

All requirements are equipped in the country and it is to be one of the best tourist destinations with absolute peace, political stability and the climatic changes can be seen through beautiful waterfalls, rivers, sceneries, tea estates and many other attractive places. Sri Lanka is owned for a rich heritage and it has a recorded history of more than 2500 years and archaeological sites over 250,000.There are 8 world heritage sites within the country that was approved by the UNESCO and they are the hill capital kandy, the sacred city of Anuradapura, The Dutch fort of Galle, The ancient city of Polonnaruwa, The rock fortress of Sigiriya, The golden rock temple of Dambulla, the beautiful Horton plains and the Singharaja rain forest (Sri Lanka Tourism Development Authority, 2011). So, without a doubt a land like Sri lanka cannot be found because it has something to offer for everyone.

The increase of tourism occurred in 2011 and is expected to climb further in the coming years. Colombo the capital city, the Cultural Triangle (Dambulla, Polonnaruwa and Anuradhapura), the cities like Kandy and Galle, and most of the southern beach towns which are equipped with good tourist facilities, the roads connecting many of those destinations are improving. The pro of Sri Lanka as a tourism destination is threefold. Firstly, it is a real tourism destination. Secondly, a tourist can travel the whole compact island within few days because it consists only 65,610 square km.Thirdly, it has unparalleled diversity of tourism product. For the ease of communicating the diversity of Sri Lanka in 2010, 8 different products namely; heritage, beaches, wildlife, mind and body wellness, scenic beauty festivals, Essence and sports and adventure are started to position around the country by the tourism authorities. (Sri Lanka Tourism Development Authority, 2011). Art and culture, spices, tea, gems, handy crafts and its people are the unique features of Srilanka which are also known as the essence of the country. From the ancient time the travellers and the traders have attracted to Sri Lanka and it is a languorous tropical island of deep spirituality and serenity. Sri Lanka grabbed the Western imagination as the Tahiti of the East.

5.2.1 Institutional structure of tourism industry in Sri Lanka

Tourism industry is under the Ministry of Tourism. Four sections of it are; Sri Lanka Tourism Development Authority (formed in 2005 by replacing Sri Lanka Tourist Board which was established in 1966), Sri Lanka Tourism Promotion Bureau, Sri Lanka Institute of Hotel Management and Sri Lanka Convention Bureau. While Sri Lanka Tourism Development Authority is responsible for all the tourism development activities, the responsibility of all the marketing and promotional work goes to the Tourism promotion Bureau.

5. 2.1 History of tourism industry in Sri Lanka

Marco Polo mentioned the Sri Lanka as the finest isle in the whole world as a well-known explorer of the 12th century. For European Travellers it had been a immense tourism destination. (Lanka Facts, 2012). However, the year 1966 was a landmark for international tourism in Sri Lanka, with the enactment of the Ceylon Tourist Board Act No. 10 of 1966. The Act provided permission for the establishment of a public authority known as the Ceylon Tourist Board for encouragement, promotion and development of tourist travel to Sri Lanka (Deheragoda 1980). According to this Act, the Board objectives are numerous: establishment of an institute to control the tourist industry, to encourage people to provide an efficient, attractive and adequate service, the encouraging, promotion and development of the travel trade (Deheragoda 1980; Zoysa 1978). After the establishment of the Ceylon Tourist Board, the Sri Lankan tourist industry has systematically developed drawing much foreign exchange into the country (Handaragama, 2010).

From 1966 onwards, the tourist industry gradually inherited results of many mentioned implemented programs for the development of the industry. In 1977 the tourist industry had full attention and support of the government with the introduction of open economic policies and liberalization of the economy, because it was quite a suitable field for the operationalisation of the open economic policies. The tourist industry is gradually developing and reached a milestone in 1983 with ethnic problem with its manifestations particularly in the forms of conflicts in the North and East and bomb explosions in Colombo, threatening the safety of the tourists (Bandara, 2003).

According to ADB (1998), until the early 1980s 76 percent of tourism accommodation in the country is owned and forced by the Hotel Corporation (a semi-privatized formerly state owned body).During this era (between mid-1960s and early 1980s) as a result of the state investments, the tourism accommodation facilities expanded. However, with the introduction of liberalized economic policies in 1977, significant amounts of national and international investments were made to construct the accommodation of tourism, mainly in Colombo and the Southwest coast which ultimately lead to control the large part of the inbound tourist market by the private sector. (Sri Lanka, Tourist Boar d, 2003).

Growth of the tourism industry got stagnated because of the 30 year long internal conflict and terrorism which caused a negative impact on tourism. With the end of the conflict in 2009, created a lot of opportunities through tourism industry. (Agency for Technical Cooperation and Development, 2011). Sri Lanka had an expansion of 46% in tourism arrivals in 2010 just after the end of the war. The tourism arrivals got doubled from 2009 to 2011 with the number of arrivals attaining 855,975 as at end 2011(Figure 5.2). In 2012, Sri Lanka was named as the best valued destination for holidays by the post office worldwide holiday costs barometer.

5.2.2 Present situation of Sri Lankan tourism

United Nations World Tourism Organization (UNWTO) lists Sri Lanka with a 50 percent growth in tourist arrivals among 77 countries that have reported international arrivals data. So that, the year 2011 has been a significant year for tourism industry as the arrival target was over 750,000. Sri Lanka recorded 856,000 tourist arrivals with a 30 percent annual growth at the end of 2011and also expects 30 percent growth as well in this year because the country has performed well compared to the world tourism industry. The sector envisaged 30 percent growth for 2011 with revenue of US $ 839 million (Ref). The hotel occupancy rate has increased up to 77 percent and it has created employment for about 125,000 persons. Compared to other industries it has the fastest growth prospects. Though Sri Lanka is predominantly a beach destination, it could offer culture, nature, agro, community, religious and spiritual attractions by now.

Thirty year ethnic conflict of the country has been negatively affected for the growth and the development of the tourism industry (Ganegodage and Rambaldi, 2012). Sri Lankan government is now organizing several events and is in the process of developing the industry in order to make Sri Lanka a top tourism destination in the world. The Sri Lanka Tourism Development Authority will do their best to develop unique, quality and diverse tourism products and services that would globally make Sri Lanka as a unique destination. Identifying and developing tourist specific unique products and services, formulating and implementing Tourism Development Guidelines, facilitating and implementing the legal and administrative process for new product and service development are some activities done by the authority. (Sri Lanka Tourism Development Authority, 2011).

Main markets of tourism in Sri Lanka

Table 5.2 and Figure 5.4 shows a detailed account of the source of foreign visitors to the top 10 source nations the top ten source markets for tourism to Sri Lanka within the years 2010 and 2011. Sri Lanka relies greatly on Western European markets, especially the United Kingdom and Germany who rotate between second and third place as key source nations. However, India became the largest single source of arrivals in Sri Lanka. During this period, France, Maldives, Australia, Canada USA, the Netherlands and Russia also have become strong source markets. (Sri Lanka Tourism Development Authority, 2011).

When tourist arrivals are analyzed by regions, in 2010 and 2011, most of the tourists are from Asia and the Western Europe. Next highest number is coming from Middle East followed by Eastern Europe and North America (Figure 5.4). Thus, these are the important markets of tourism of the country.

Main tourist attractions of Sri Lanka

Sri Lanka has a large number of tourist attractions for different types of visitors. Bentota, Beruwala, Hikkaduwa, Galle, Negombo and Trincomalee are the dominant beaches in Sri Lanka and they are famous for relaxing, sun bathing and surfing. The living heritage of Sri Lanka of 2500 years was discovered by the culture & heritage. It was founded in the 5th century BC, when the Buddhism was first introduced to the island. Anuradhapura can be recognized as the capital city of Buddhism.

The oldest living tree in documented history is the sacred Bo tree, grown from a sapling of the tree under which the Buddha attained enlightment.(Lanka Facts, 2012). Sigiriya the 8th Wonder of the World. “Veddha’s” also known as aborigines of Sri Lanka.They are the Sri Lanka’s indigenous people.Wildlife is a vital assert. Animals such as Elephants, Leopards, Black Bears and many more can meet face to face with Jungle wildlife sanctuaries. Nature Witness the unmatched bio-diversity of Sri Lanka is waterfalls, misty hills, breezy mountains and Sinharaja Rain Forest. Sinharaja is a world heritage named by United Nations. The World Tourism Organization describes that Sri Lanka has the advantage of having 49 sites classified as unique attractions, 91 as rare attractions, and 7 world heritage sites, and 6 of the 300 ancient monuments in the world. (Asia-planet.net, 2012).

Purposes of visiting the country by tourists

The main purpose of visiting the country by tourists is to have pleasure. During vacations, most of the tourists come to the country to engage in various entertaining activities such as visiting beaches for swimming surfing, boating, fishing, jungle tracking for rock climbing, hiking, wild life seeing , bird watching, and so on. Therefore, it is very important to provide facilities for these activities at the best level. However, tourist coming for business, visiting friends and relations, religious and cultural activities are comparatively lower (Table 5.2).

5.2.3 Future development of the sector

There are 2 stages of the future tourism development in Sri Lanka. First stage is to be reached in 2016 and the second is in 2020. The main goal of the first stage is to attract 2.5 Million high spending foreign tourists by the year 2016 (Figure 5.5) and the main target of the second stage is to get 4 million tourists to the country (Figure 5.6).

Tourism targets during 2010-2016

The five year master plan prepared by the Department of National Planning for the period of 2011 – 2016 tackle a range of issues related to Sri Lanka Tourism Strategy including environmental, economic, social, cultural, institutional and promotional aspects together with their mutual relations with the National Development agenda, in order to create a favourable environment to achieve expected tourist proceeds by 2016 (Department of National Planning, 2010).

The key objectives to be achieved by the 5 year strategy are

®Increase tourist arrivals from 650,000 in 2010 to 2.5 Million by 2016.

®Attract USD 3,000 Million with 5 years of time as Foreign Direct Investment (FDI) to the country.

® Tourism related employment increase by125, 000 in 2010 to 500,000 by 2016 and island widely expand tourism based industry and service.

® Integrate tourism to the real economy by distributing the economic benefits of tourism to a larger cross section of the society.

® Increase Foreign exchange earnings from USD 500 Million in 2010 to USD 2.75 Billion by 2016.

®Contribute towards getting better global trade and economic linkages of Sri Lanka.

® Position Sri Lanka as the world’s most precious island for tourism.

(Department of National Planning, 2010)

Tourism targets during 2010-2020

The vision of the government is to change the Sri Lankan tourism sector, by 2020, to be the biggest foreign exchange earner in the economy and to position Sri Lanka as the world’s most treasured and Greenest isle and draw high spending tourists while protecting the cultural values, natural habitats and environment of the country.

Tourism development in the country: provincial level

Provinces are the first level administrative division in Sri Lanka. In 1833, they were firstly established by British rulers of Ceylon. Then in the next century most of the administrative functions were transferred to the second level administrative division which is known as districts. Because of increasing demand for decentralization, in 1987 this change was done. In 1978 Provincial councils were established by the Constitution of Sri Lanka (Mongabay.com, 2012). Presently the nine provinces are named as Central, North Central Eastern, North Western, Northern, Sabaragamuwa, Uva and Western Southern (Figure 5).

Ministry of tourism develop and manage tourism activities in each and every province because of the decentralization of the power. In line with the tourism development of the national government, provincial councils have development tourism master plans and implemented them during 2010-2016. Most of the tourism development programs of these provinces are mainly focused on rural tourism and niche markets such as nature tourism, ecotourism, culture tourism, agritourism in a sustainable way. Main aim of these tourism development programs is community empowerment and rural development.

Motivation of local tourists

Government expects to increase demand from domestic tourists, while planning to make additional foreign income to the country by providing facilities for foreign tourists to make additional foreign income to the country. Country’s total population is 21,283,913 (2011 estimated) and 0.934% is its growth rate is (2011 estimated). 14%from the total population is owned by the urban population (2010) and the annual urbanization changing rate is 1.1% (2010-15 estimated). Furthermore, age structure of the country is 0-14 years: 24.9%, 15-64 years: 67.2% and 65 years and over: 7.9% (2011 estimated) (Sri Lanka Demographics Profile, 2012. A positive background will be created in many ways in future because quantitatively and qualitatively local demand for tourism is rising. By using the print and electronic media government is trying to promote the less attractive places and grab the awareness which will help to fulfil the purpose of establishing a good culture among Sri Lankan travellers. (Department of National Planning, 2012).

When focusing the evolution of tourism industry in the country, there had been a flourishing period in the past. But, due to some bad experiences such as few youth unrest situations and revolutions, 1989-1992 a huge tsunami in 2004 and severe ethnic way during 2008-2009: the performance had gone down in the near past. However, recently, it is booming and the national government and the provincial councils have implemented lots of plans to get the optimum benefits of tourism in future.

Situated between China and India lies the small land-locked country of Nepal. Slightly larger than the state of Arkansas, Nepal contains eight of the world’s ten highest mountain peaks making it a popular destination for adventurous tourists. Nepal is among the poorest and least developed countries in the world. The country’s population reached more than 21 million in 1994 yet the per capita income is one of the world’s lowest at $160 a year. Agriculture is the mainstay of the economy, providing a livelihood for over ninety percent of the population. Nepal is also a producer of cannabis for both the domestic and international markets as well as the transit point for heroin into the West. With the growing number of tourists, however, the Nepalese Government is trying to exploit this resource as well. One Nepalese ecologist says “There are now three religions in Nepal — Hinduism, Buddhism, and tourism.” The influx of tourists has had dramatic effects on the environment and on the local communities who come into contact with the tourists. It is no longer uncommon to find discarded rubbish along the trekking trails. Just as common is the soil erosion during the monsoons as a result of severe deforestation, also caused by tourism. “Tourism is not only the goose that lays golden eggs…it also fouls its own nest,” says a Nepalese scientist.

The Nepalese portion of the Himalayas was “long remote from the main pathways of international tourism.” The first Americans and Europeans did not enter the region until 1950. Up until 1964 only mountaineering expeditions were permitted to visit the area. In 1971, scarcely one thousand visitors came to visit. “A decade later five times that number visited, and by the end of the 1980s tourists numbered more than 8,000 annually.” In 1993, the figure “was closer to 300,000.” The Nepalese Government hopes to attract a million people within the next ten years. More than ninety percent of these tourists are trekkers, coming mostly from the United States and Western Europe, but also from Australia, New Zealand, and Japan.

With the steady stream of visitors, at least $60 million in foreign currency has been generated each year. One person who is fearful of what this may do to the local cultures and to the environment is Sir Edmund Hillary, now 75. Hillary believes that explorers have an obligation to protect the very things which they come to marvel.

He was a driving force behind the creation of the Sagarmatha National Park and has established a trust which builds schools, hospitals, clinics, bridges and water systems for the Sherpas, whose culture is threatened the most.

Most tourists come to Nepal to trek through the mountains. Trekking may be arranged by a service and done in a group or on one’s own. Group treks are typically prearranged and paid for abroad or in the capital city of Kathmandu. The other alternative is to trek individually without the services of a trekking company.

Individuals instead rely on the villages along the way for food and lodging.

About one-half of the trekkers who come to Nepal, come with commercial groups. These treks generally last between twenty-two and twenty-five days. A trek for twelve clients will contain a support staff of approximately fifty members. Because these groups pay to make arrangements, little money goes to the local communities. The World Wildlife Fund estimates that “only 20 cents of every $3 spent by an average trekker each day reaches village economies. The rest goes for goods imported from outside, notably

the West.” Individual trekkers, however, rely upon local guides and families. This means that more money is dispersed to the local communities.

Regardless of how one travels, the environment and local communities are affected. Mountain trekking is part of a new type of tourism called “adventure tourism.” Adventure tourism attracts people who desire to see exotic and unknown places, primarily in the developing world. Adventure tourists, the name given to tourists who seek this type of tourism, are searching for “authenticity.” This means that the mountain treks are slow journeys which pass through the landscape, “allowing time to

explore both nature and village life.” The core problem is that the environment and communities begin to change as a result of their newfound popularity. The local cultures become influenced by the presence of the trekkers and become modernized in their own

way. Hence, they are no longer considered “authentic” and new “ever more remote locations” must be found. The idea behind “adventure tourism” is that the more remote a location is, the more it is desirable. This means that unless precautions are taken,

degradation will inevitably occur.

Perhaps the most visible impact of trekkers on the Himalaya is the growing amount of rubbish left behind. Galen Rowell wrote of the Himalayas,

The solitary splendor is dazzling – until I glance down

at my feet. There, frozen into the ice cap of Tharpu

Chuli, lies a miniature garbage dump; discarded candy

wrappers, film cartons, plastic bags, wads of tissue, and

half-empty food cans, all of it left by foreign climbing

groups. It is a familiar and sickening sight to old

Himalaya hands – the growing pollution of a priceless

heritage.

It is estimated that over the past forty years, eighteen tons of garbage, “from tin cans and beer bottles to oxygen tanks…(this does not include such items as abandoned helicopters)” have been dumped on Mount Everest alone. (The helicopters are a new form of tourism, called Sky Treks, for those who do not desire to hike up the mountains. Tourists instead ride helicopters to the top of the mountains, take their pictures, and then return to the bottom again.) Other estimates place the accumulated rubbish at fifty tones which will cost approximately $500,000 to clean up.

A second, and perhaps greater problem than all of the rubbish, is deforestation. Many visitors come to Nepal expecting to see massive forests along the slopes of the Khumba. They do not come expecting to find Western amenities. Often the reverse is true.

Western amenities assault the visitors in the teahouses and guest lodges they find along the trails while the forests are all but gone.

Over the years, the influx of tourists has encouraged changes in the use of forests for fuel wood and construction materials. The forests have typically been used by the Nepali for fuel wood. However, the consumption rates between Nepalis and tourists greatly differs and this is where the problem lies. The demand for fuelwood from tourists has always been a concern for the park planners, administrators, and managers. They consider “fuel-wood use by mountaineering and trekking groups to be one of the main environmental threats” to the parks.

“It has been estimated that four times as much fuel wood is needed to cook a meal for a Western tourist than for a Nepali due largely to differences in diet.” Add to that the fuel wood needed for the daily hot showers and for the bonfires to keep them warm and

“the impact on the forests is devastating.” One trekker alone consumes five to ten times more fuel-wood than one Nepali. In addition to the trekkers who are consuming gross amounts of fuel wood, there are also the estimated “150,000 guides, porters, cooks, and other support staff” who are traveling with the trekkers and who need fuel wood as well.

Massive amounts of fuel wood are needed by the teahouses and guest lodges as well. More and more people are staying in the lodges and the number of lodges has quadrupled since 1976. The lodges and teahouses may use “up to four times as much fuel wood a day” as does a local’s household.” Others have estimated the amount of fuel wood used by one trekker per day to be more firewood than the average Nepali uses in an entire week.

By 1979, the park authorities of Sagarmatha (Mt. Everest) National Park were beginning to see how extensive the deforestation, as a result of tourism, was becoming. As a result, they banned the use of wood for cooking and bonfires. All expedition and trekking groups now must use kerosene stoves to cook. However, there have been no restrictions on the fuel-wood used by loges and teahouses. This must surely change if the country wants to preserve the forests it still has remaining.

In the Annapurna Conservation Area, a program was created to link conservation and development benefits, through tourism and involving the local people. The program helped the local lodge owners see the benefits of halting deforestation. While the trees did provided needed fuel wood, their elimination would destroy the beauty that many of the visitors came to see. The program “organized lodge owners and all agreed to honor a requirement that trekking expeditions had to bring in their own kerosene.”

As a result of the burgeoning influx of tourists, the Nepalese Government began to establish wildlife reserves, national parks, conservation areas, and hunting reserves in 1976. The first three of these protected areas are recognized by the International Union for the Conservation of Nature and Natural Resources (IUCN) now the

World Conservation Union.

One of the most famous conservation areas is the Annapurna Conservation Area Project (ACAP) created in 1986. ACAP “was designed to minimize the negative impact from tourism and promote conservation and the socioeconomic development of the region.”

ACAP is unique in that it calls for the participation and management by the local people.

The project is based on the belief that properly managed tourism can bring benefits both to the land and to the people. “Tourists are regarded as partners in fulfilling the goals of biodiversity conservation, cultural revitalisation and sustainable economic

development.” ACAP managers and developers believe that mountain trekking is a form of education which can be used to benefit the

Annapurna region. In addition, the trekkers provide much needed revenue that can be used for further conservation and development programs.

Most tourists come to Nepal either during the “cool, clear days of October and November or during the secondary peak season that extends from March through early May.”

Tourism has contributed in depletion of forest resources in Nepal. It was estimated in one report that per capita fuel wood consumption per individual tourist and group tourist was 5.5 kg and 18.5 kg respectively.

Economic Data

Industry output was $60 million may be as high as 75% concentration in some areas. “Tourism provides the single largest source of foreign exchange for the country’s development plans and the largest source of employment besides agriculture for Nepali

nationals.” Tourism is also the major source of employment for many residents. Employment from tourism is seasonal as a result of the weather. Most people employed by the tourism industry work only four or five months a year. It also varies from community to community depending on the popularity and location of the village.

For most family members, the income is earned through trekking as guides, leaders, cooks, porters, and kitchen crews. During the expeditions the Nepali’s hired to assist trekkers are fed, lodged, and provided with equipment so they return home with all of their earnings. Employment in trekking has been predominate for men but the number of women earning income from trekking is on the rise.

There has also been an increase in the employment and income generated from the establishment of tea houses along the trekking route. An increasing number of tourists “carry light day packs and eat and sleep in the lodges for just a few dollars a day.”

A frequent complaint among the tourists is the lack of sanitary facilities. Sagarmatha National Park, the park which encompasses Mt. Everest, is getting a bad reputation as a result of all the trash. It is ironic that it is the tourists who are causing these problems, yet they believe that it is up to the park authorities to alleviate them.

The World Wildlife Fund estimates that if present rates of deforestation continue, Nepal’s forests will be gone by the year 2000. This is troublesome not only because of the soil erosion and habitat loss which result, but also because 86 percent of Nepal’s

energy comes from its forests.

CULTURAL IMPACTS

The influx of tourists have had a significant effect on the local communities, especially the Sherpas (a Nepali ethnic group) who live around the trekking routes. The culture of the Sherpas has been changed as well as the structure of the local economies.

When the first trekkers came to Nepal, the Sherpa paid little attention to them. Now that the numbers have increased and the Sherpas’ services are in demand (Sherpas have historically acted as guides, leaders, cooks, porters, etc.), trekking has encouraged a “get-rich-quick” mentality. The result has been a decrease in agricultural production, since it generates less income, and a decrease in school attendance, children dream of becoming guides and drop out of school the moment they get the chance to join an

expedition. The Sherpa see money now when they see a “white face.”

Villages are also becoming more dependent on cash rather than the traditional means of barter and reciprocal labor. This has meant that villages are changing from being self-reliant into beingdependent on “tourist dollars and outside resources to meet their

daily needs.” More and more agricultural fields are left fallow as more men are leaving to seek wealth from tourism. This means that more food must come from outside and that there is less of it, causing higher prices. The higher prices are a hardship on those families who do not have income from tourism. Other traditions are disappearing such as the custom of drinking Tibetan salt-and butter tea. The price of butter makes this drink nearly unaffordable and the supply of tea is uncertain since trade has also been disrupted by the beckoning wealth of tourism employment.

The Sherpas have not saved or invested any of their income generated from tourism. Rather, they have spent it on Western items, further degrading their traditional culture. “Trekking Sherpas,” as they have come to be known as, have discarded their traditional dress for “imported hiking boots, colorful wool sweaters, and down parkas.”

The division of the village into trekking Sherpa and non-trekking Sherpa has resulted in the creation of a new type of class. Whereas there were always class divisions in the past, all of the people dressed and lived in a relatively similar manner. Today donning the Western wear, the trekking Sherpa and his wealth is easy to distinguish from a farmer.

Another affect of tourism is that local crafts are dying out. These crafts can not generated the same amount of income as tourism and the supplies needed are harder to obtain. The Sherpa now have access to cash, hence they are now able to purchase manufactured items rather than make their own. Wool is one item which has become scarce, hence layers of cotton must be bought and worn to keep warm.

Trekking is one of the highest paying employments in Nepal today. The wealth available from this job draws many youngsters out of school and into tourism. Teaching and government jobs, once considered very prestigious, are no longer desirable since they do not provide the same income as trekking. It is ironic that many youngsters are leaving school since one of the qualifications needed today in trekking is knowledge of spoken and written Nepali and English. The youngsters may be even more valuable if they would continue their education rather than leave after a few years. It is also ironic that the Sherpa do not enjoy the trekking. To them, “climbing is simply a high-paying job.”

The trekking Sherpa are also forced to reflect the image projected upon them by the Western visitors. The Sherpa wear masks, having a public side for the world to see and a private side which is true to themselves. It is hard for the Sherpa, who work twenty-four hours a day, to maintain the public mask. Some Sherpa see themselves partly as actors and entertainers. It is only when the trek has ended that they may unveil themselves and “engage in drinking binges and general hell-raising that may go on for

days.”

Finally, there is the disruption to the family life. The men are often away from the home ten months of the year. Many of the trekking Sherpa who are married, keep another woman in the cities where they stay in-between treks. Other Sherpa are enticed by the forward gestures of Western women, who often initiate the affair. “A number of Sherpa women have lost their husbands or fiancaa‚¬A?s to foreign women.”

Perhaps a far greater concern is the loss of life. The decreasing number of young men has meant that many women are burdened with raising the children and with the responsibility of the farm-work. The young unmarried women are also disadvantaged since there are fewer young men. One must begin to wonder if it is justifiable to endanger the lives of the Sherpas so that others may enjoy themselves.

This part of the theoretical discussion gives an overview of Mauritius as a tourist destination. A general introduction to the cultural and geographical background with a description of tourism characteristics, attractions, as well as seasonal aspects is presented.

2.7.1 Mauritius

Mauritius is independent since 1968 and has been a republic since 1992.The population of Mauritius is 1.3 million, shared out in 1860 km2. While the official language is English mainly and French, Creole, a French derived dialect, is spoken by the majority of the population and is considered as the national language. Mauritius multicultural ethnicity made that other ancestral language such as Hindi, Tamil, Chinese, Urdu or Bhojpuri are also spoken. The capital, Port Louis, has population of 150000 citizens. Other important cities are Quatre Bornes (82 000 citizens), Rose Hill (91 500 citizens) and Curepipe (84 000 citizens).

The country has a diversified economy. Historically a sugar cane producer, Mauritius has taken the opportunity to develop itself in three sectors that are, sugar cane, textile and tourism. Tourism is a major industry representing 72% of the total GNP. Mauritius has made himself a luxurious destination for tourist. Mauritius is a tropical island located in the Indian Ocean and is part of the Mascarene Island. Considered to be the twin sister of Reunion Island, it is situated at the east of Madagascar.

Mauritius is encircled by a broken ring of mountain ranges, varying in height from 300 meters to 800 meters above sea level. The land rises from coastal plains to a central plateau where it reaches a height of 670 meters, the highest peak is in the southwest, Piton de la Petite Riviere Noire at 828 meters (2,717 ft).(Gov, 2012) The climate has two clear seasons of 6 month each; winter and summer. In summer time the temperature can rise occasionally to almost 30-35 degrees. On the other hand, it is not rare to have over 10-15 degrees during the winter time. Irregular rains caused by rapid changes in the weather characterize the Mauritius climate.

2.7.2 Tourism in Mauritius

In the past years Mauritius has been the fastest developing country in the African region measured by economic growth, inflation and increase in employment. Among the other industries: financial, agriculture and textile, tourism is a pillar in the Mauritian economy. In 2011 tourism gross receipt was 42 845 million in a year constituting 7% of the Gross Domestic Product of the island (ICCA). Mauritius has earned a reputation for excellent service in the tourism industry. In the past ten years Mauritius has become one of the most luxurious destinations in the world and has been award several times for its beautiful beaches, blue lagoons and its five stars resorts.

The tourism sector employs directly over 27 000 persons while total employment (direct, indirect and induced) stands at around 100 000 or 20% of total employment. Over 98 % of the direct employment is held by Mauritians whereas posts in selected scarcity areas are filled by expatriates. The sector also contributes to nearly 10 % in the GDP of the sector and is a significant contributor of FDI in the country. (AHRIM)

Mauritian governmental strategy in the sector is clear:

“The National Tourism Policy emphasizes low impact, high spending tourism. Selective, up-market, quality tourism is favored, and although such tourism is not the only type, it constitutes the major segment of our tourists who stay in high class hotels.” (MTLEC, 2011)

In parallel with the operation of these luxury hotels, a whole array of services has gradually evolved so as to offer the visitors a tourism product which is in line with the high expectations attributed to the Mauritius brand; Marinas, Spas, Golf courses, adventure and nature activities, shopping malls and restaurants have been set up. Tour-operators in presently in activity (Tourism Authority, 2010), offering a whole range of excursions and activities. A constantly evolving list of water-sports activities, ranging from traditional motorized sports, big-game fishing and deep-sea diving, to more elaborated products such as under-sea walk and sub-marine tours are also available to visitors.

The state of Mauritius has a yearly budget which is allocated to the Ministry of Tourism, Leisure and External Communication, the financial resources allocated to tourism related programs and promotions are increasing each year. Government investment in the tourism industry was 448 millions in 2010 and it is predicted to by around 490 millions in 2012. These investments concern policy making, regulations, controls, branding and sustainable tourism. The biggest proportion goes to the promotion of the Island. Government of Mauritius alongside with MTPA would invest in 2012 a total of 400 million rupees in the promotion of the island and its activities. (http://tourism.gov.mu)

Mauritius has performed well in developing a distinctive form of relatively high-end tourism. Growth in tourist arrivals has outpaced that of many of our competitors. Currently, the aim is to continue that growth with a visitor’s target of two million tourists a year by 2015. To achieve the set target, the number of hotels and room capacity has evolved considerably over the years to cater for the ever-increasing tourist arrivals.

2.7.3 Regulatory Bodies

The Mauritian Tourism sector is under the supervision of the Ministry of Tourism and Leisure. Promotion of the island as a destination is under the responsibility of Mauritius Tourism Promotion Authority (MTPA). MTPA conduct advertisement, participate in fairs, and organize fairs, activities inland and outside the island.

The Tourism Authority (TA) is responsible for licensing, regulating and supervising the activities of tourist enterprises, pleasure crafts, skippers and canvassers. “The Association des Hoteliers ET Restaurateurs de l’ile Maurice (AHRIM) is a non-profitable organization set up in 1973 to represent and promote the interests of hotels and restaurants in Mauritius.”(http://www.mauritiustourism.org/)

2.7.4 Attractions of Mauritius

Mauritius since its early stage in the industry have attracted tourist with it perfect blue lagoons, the sandy beaches, and eternal sun. The three S’ are the island main pull factors.

Almost all the tour operators deliver almost the same services and products according to the MTPA lists, the customers travel to Mauritius are for the attractions or other purposes: (MTPA, 2011)

The core product of Mauritius is the 3 “s” being Seas Sun and Sand

For the wedding and honeymoon.

For the tours to the small islands surrounding Mauritius which can be an adventure or a beautiful memory of their holidays.

For the water sports and other activities.

For the cultural tourism: historical monuments (Apravasi Ghat, Le Morne, Citadelle-Fort Adelaide, Port Louis Market and so on) and museums which contain the historical part of Mauritius when it was first found

For the spa and the relaxation moments.

For the events of different festivals in Mauritius: “Thaipoosum Cavadee& Marche sur le Feu” done by the Tamil communities; “Festival of Printemps” by the Chinese communities; “Maha Shivratree &Holi & Divali” by Hindu communities and so on.

For the multiracial food as the cultures are transferred to the food.

Offer also the IRS Villas which can be rented or bought by the customers who do not wish to live in the hotels which are all almost enclave, thus these villas will give them more liberty and get contact with local people of Mauritius.

For the natural and manmade scenery: “Vanille Crocodile Park, Casela Bird Park&SSR Botanical Garden are manmade attractions; Sept Cascades, Black River Gorges, or Chamarel are natural sightseeing”

2.7.5 Marketing of Mauritius as a destination
2.7.5.1 Mauritius Tourism Promotion Authorities

Mauritius being recognized around the world to be a tourism destination which offers a wonderful range of services including the quality made the acquaintance of the island. It is being promoted mainly by a group of tour operators which are registered at the Mauritius Tourism Promotion Authority (MTPA); the official Promotion and Marketing Organization which is being managed by a Board of Directors (Private sector) and acts under the assistance of the Ministry of Tourism and Leisure (Public sector).

It has branches in nine countries across the world. European country (France, England, Italy, Spain and Switzerland) were the island main target during the last two decades. After the euro crisis MTPA aims the Asian market to sustain the industry. It is present in Russia, India and China. The Asian market is the upcoming leader of outbound tourism (UNWTO, (2012)). MTPA

main marketing tools are Internet, Brochures, Road Shows, Tourist Guides, Conference and presentations.

According to the Mauritius Tourism Promotion Authority official website, it has some objectives that it must take into consideration: (Source:http://www.tourism-mauritius.mu/mtpa/)

“To promote Mauritius as a tourism destination abroad through:

Conducting advertisement campaigns and participating in tourism fairs.

Organizing, in collaboration with the local tourism industry, promotional campaigns and activities in Mauritius and abroad.

To provide information to tourists on facilities, infrastructures and services available to them in Mauritius.

To initiate such actions as may be necessary to promote cooperation with other tourism agencies.

To conduct research into market trends and market opportunities and disseminate such information and other relevant statistical data on Mauritius.”

2.7.5.2 MTPA Strategies’

Mauritius has developed a tourism industry of worldwide recognition. The image of high class delivery of tourism services and products is stick to the island since the last two decades. (Source:http://www.gov.mu/portal/goc/menv/files/nar2010/Chapter%208_Tourism%20Resources.pdf) It is targeting two million tourists by 2015 and it is interesting to know how it is going to be done.

Below are the following strategies proposed by MTPA: (Tourism Resource, (2010))

– Positioning Mauritius as a cruising destination and during the first quarter of 2009, cruise passenger arrivals grew by 83%.

– Marketing the country as “Maurice sans passport” to attract French tourists to Mauritius up till 30 June 2010.

– The Tourism Sector Strategy Plan (2009-2015) has been prepared recommending ways and means of achieving an environmentally sound, socially acceptable and economically viable tourism development.

– The Mauritius Brand Strategy has been launched in October 2009 to strengthen and enhance the image of the Mauritius destination and to ensure greater visibility of the Mauritian brand worldwide. The objective of this branding exercise is to attract investors for the business opportunities in Mauritius, visitors for its hospitality industry and buyers for its export goods.

– Professional assistance has been given to Small and Medium Enterprises under the Empowerment Program to improve the quality of their products so that they can act as reliable suppliers for the tourism industry.

– Measure will be taken to protect the environment (pollution control, sound environmental management, protection of natural resources, landscaping, etc.)

– Promotion of Sustainable Tourism

– Promoters of new hotel projects are encouraged to use renewable energy and adopt eco-friendly practices and use, as far as practicable, energy saving devices.

– Eco-friendly outboard engines for crafts at sea are now being used to protect the marine environment.

– Low-rise and low density hotel development is encouraged to avoid the disfigurement of the coastal landscapes.

– Hotel projects are monitored to ensure that they conform to the applicable Planning Policy Guidance (PPG) and the activities of tourist enterprises are regulated and monitored to promote sustainable tourism development.

– Permanent mooring buoys have been installed at dive sites to protect the coral from damage caused by anchors.

– Measures have been taken to ensure a safer and more secure environment for tourists.

– All guest houses, tourist residences and hotels must be equipped with burglar alarm systems, and CCTV surveillance cameras. A Tourism Safety Panel has been set up to register security companies which meet the Ministry’s established criteria.

– A Tourism Fund has been set up, which finances the provision of social amenities to locals in areas where tourism projects are being implemented; protection and rehabilitation of scenic landscapes, lagoons, rivers and islets; and control and eradication of pests and other nuisances.

– Measures are taken to protect our local culture:

The Festival International Kreol is organized on a yearly basis with emphasis on the value and beauty of the Creole culture, language, cuisine, art, music and dance. Organization of Regatta competitions have also been undertaken in traditional fishing villages

2.7.5.3 Mauritius Actual inbound Tourism Market

According to the government statistics, Tourist arrival in 2011 reached 964 642 bringing a gross receipt of 42 845 million rupees.

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Graph 2: Comparison of Tourist Arrival by Month in 2010 and 2011 (Source: Mauritius Government, 2011)

Graph 2 compares the number of tourists’ arrival in Mauritius in the period of 2010 and 2011. Mauritius receives it maximum number of tourists during the month of December (around 110000 Tourists) and it minimum during the month of June (approximately 52000 Tourists). In January, February, April, June July, August, October and November, the island had succeeded in increasing it number of tourists’ arrivals. In 2011 during the peak seasons (December mainly), tourists arrivals had decrease compare to 2010. Graph 2 illustrates the seasonality faced by Mauritius Tourism Industry (peak season and low season). Mauritius receives the highest number of tourists in December, January and July. During low season in 2011, such as in February, April, June and August, it is obvious on the graph 2 that Mauritius has managed to increase its number of arrival. The motive being this is the successful marketing strategies adopted by the MTPA to attract the Asian market in substitution of the European market. Compare to 2010, Tourists arrivals had increase of three percent. It is very slow progress but positive one.

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Graph 3: Tourist arrivals by country of residence, 2010 and 2011(Source: Mauritius Government, (2011))

Graph 3 compares the number of tourists’ arrivals by country of residence in 2010 and 2011. Since two decades, European countries such as France, United Kingdom, Germany, Italy and Switzerland, are Mauritius main tourism customers. Since the euro crisis, MTPA started targeting the Asian tourism market such as India, Republic of China and Russia to sustain its tourism economy. The marketing of Mauritius as a destination for tourist in this zone is still at it early stages, resulting in the disparity shown in graph 3 between European arrival and Asian arrival. France, with more than 300 000 in both year 2010 and 2011, take the biggest proportion in the number of tourist visiting Mauritius. Despite having the highest growth rate (more than 100 pour cent) Republic of China recorded the lowest number of arrival in the island. South African and Reunion tourism markets are the island main targets in the African zone. If this graph is compared to the MTPA’s presence around the world, the relationship between visibility in the target country and tourist arrival is clear. MTPA promote Mauritius in France, United Kingdom, Germany, Italy and Switzerland, thus resulting in a high number of tourist’s arrivals. Recently based in Asian zone MTPA marketing to attract Chinese, Indian and Russian tourists is as said above at it very early stage.

2.8 Conclusion

In this chapter the theoretical discussion is presented to create the framework for this study. The first section concentrated on definitions of the tourism product and how it is linked to customer’s perceived value and this is followed by a discussion of the concept of destination. These definitions were selected in order to explain the compound nature of the tourism product and destination and how these underpin one another.

The second part focused on consumer behaviour in tourism and presented the decision-making model of Schmoll. This part showed that tourism behaviour is a very complex issue with many internal and external factors influencing it. Due to these reasons some limitations were put in place to bring focus to this part of the theoretical discussion. Travel motivation and tourists’ expectations were discussed more thoroughly.

The third part of the theoretical discussion provided a comprehensive description of the development of Chinese outbound travel. This was done to provide the reader with a general picture of the Chinese outbound market and the special features it has today; mainly that traveling abroad is still strictly government controlled. The purpose of the last part was to give wide-ranging information about Mauritius, focusing on tourism and the attractions of the island. The chapter was concluded by introducing the marketing of Mauritius as a destination.

CHAPTER 4 – FINDINGS
4.1 Introduction

This chapter presents the main findings of the interviews. The findings and factors underpinning them are discussed in relation to theories and information presented in chapter 2. The main findings have been categorized into six groups to build structure for this part of the study. The chapter begins by providing some background information regarding the typical Chinese trip to Mauritius and the basic profile of a Chinese tourist. That is followed by an analysis of the findings regarding Chinese travelers in Mauritius.

4.2 Background Information

First, this chapter presents some information regarding a typical trip to Mauritius and a profile of a Chinese tourist coming to Mauritius to create context for the findings. The following information is based on the researcher’s interviews with tour operators.

The duration of the typical trip to Mauritius is normally seven days and focuses on the costal areas’. Most of the travelers use tour operators. The tours are all- inclusive including transportation, accommodation, meals and activities. According to the tour operators, Chinese tourists visiting Mauritius can be categorized into two groups. The first group comprises business people of whom the major part is men and women can be seen sometimes working as e.g. interpreters. These people are traveling on business purposes with their colleagues and they are invited to Mauritius by a local company or government that is also paying for the costs. The second group is made up of tourists traveling on leisure purposes, as part of a larger Chinese tourist group and paying for the trip themselves. These are mainly honeymooners, retired people and small family groups that have sufficient time and money for traveling. Travel Company is normally spouse, friends or other relatives. In this research no distinction was made between business and leisure travelers.

4.3 Main Findings and Discussion

This section presents the main findings of the interviews with the six operators. The interviews were made up of a total of 14 questions. Main findings are now presented according to the objectives set for the study.

4.3.1 Travel Motivation – the Pull Factors

The first objective of the study concerned travel motivation. This study was limited Mauritian’s pull factors. What attracts Chinese travelers to Mauritius?

The following pull factors were identified from the interviewee.

Firstly, all mentioned that Chinese tourists do not come to Mauritius for the purpose of only traveling to Mauritius. “Look at the world Chinese conference this week, there will be around 500 people travelling from china and Asian zone. Why will they come, certainly not for Mauritius itself but for a special purpose” (Interviewee 2). Same precision were noticed by another tour: “aˆ¦ And on the other hand, Mauritius is creating an image while hosting Chinese Weddings TV Show in Tamassa Resort.” (Interviewee 4)

According to the operators, the base for traveling to Mauritius is accessibility, namely the connections with Air Mauritius to Hong Kong. Air Mauritius ensures an eight hour flight to Hong Kong two times a week. “The other part of china is also connected to Mauritius via transit from Hong Kong ,Singapore or even Madagascar, but not much traveler actually use that option” (Interviewee 1). This finding can be reflected back to the theoretical discussion where different theories emphasize the importance of good accessibility for success of any destination.

In addition another pull factor is our clean nature, sea and sand, our beautiful hotels, and Mauritian paradise image, were mentioned to be reasons for visiting the island. “They come mainly on half board, at 8 o’clock they are out of the resort. Most of them use tours facilities to visit Mauritius” (Interviewee 6). They seek for adventure; they came here to escape from their day to day routine in a stressful and urban environment. They seek for something different and now they have disposable income to get it. Mauritius is seen as a natural paradise and this is a great opportunity for the tourism industry.

4.3.2 Expectations

The second objective of this research is to understand Chinese tourists’ expectations of Mauritius as a travel destination. The Tours operators revealed that when arriving in Mauritius Chinese tourists do not have any or they have very few expectations regarding the destination. Some of the tours put it in words:

“I think they do not have that many expectations but they expect that there is so much to see like in Maldives or Singapore” (Interviewee 1). “Chinese do not know about Mauritius when they come. They do not know what Mauritius is exactly” (Interviewee 2)

This can be due to two reasons; first that there might not have been sufficient information available before taking the trip, the promotion of Mauritius is only at it very beginning stage in China. The second possible reason is that travelers might not have had an interest to search for information in advance. It was also mentioned by the tours that many Chinese visiting Mauritius are having their first trip abroad. Also this result underlies the importance of tour operators as source of information, and in creating image and expectations for customers buying the trip.

On the other hand, it has been perceived by the tour operators that Chinese tourists know Mauritius is a paradise island. Chinese tourists have also heard about tropical aspects, our 3 S’ that are sea, sun and sand. These are the things that create for Chinese people their image of the island. As the other tour operator continues: “When they come to Mauritius they have excursions, discoveries, and shopping in their mind. So, if they come to Mauritius and they do not get thoseaˆ¦they feel disappointed” (Interviewee 4).

One of the tours linked the expectations with shopping. Buying gifts is very important for Chinese people and gifts are always given to relatives, friends and colleagues when returning home from a long journey.

“They would like to buy something typical from Mauritius to their friends,” (Interviewee 3).

According to tour operators Mauritius should concentrate on knowing its new customers then provide the service. “Meeting the customer expectation is the very basic definition of service and we should stick to that first” (Interviewee 1) Image and brand are important for Chinese and they are willing to purchase even very expensive gifts when the product has image strong enough, not even the quality is importance then.

4.3.3 Services in Mauritius

Destination has been defined as the focus of facilities and services designed to meet the needs of the tourist (Cooper et al., 1998). A range of services is offered for tourists in a destination. The third objective of the study was to discover how services offered in Mauritius meet Chinese tourists’ needs. Questions were limited to accommodation, transportation, catering and activities.

4.3.3.1 Accommodation

When asked about the accommodation for Chinese tourists, the tours’ revealed the following aspects. Even if the price was the considered to be quite high compared to prices in China, it was said that Chinese tourists love Mauritian luxurious 5 Stars. Especially the cleanliness of hotel rooms pleased Chinese travelers. A couples of reasons for dissatisfaction were also mentioned which arose from the differences of service standards in China and in Mauritius. Five out of six tours mentioned that the lack of a kettle in hotel rooms is source of dissatisfaction for Chinese tourists because Chinese regularly drink hot water or tea. Only a few hotels in Mauritius have this service available. Also toothbrush is a standard in hotel rooms in China. These two issues were mentioned to be a source of dissatisfaction by Chinese travelers, though both of these could be solved with little cost and effort. Chinese are very satisfied with hotel services but dissatisfaction with these services was mentioned when guides or interpreter are not available as it is hard to communicate with hotel staff. “Almost all hotel employees can manage French and English, some even speak German or Italian, but mandarin is not even on the training list.” (Interviewee 6) It would be important to meet or exceed customers’ expectations because it usually creates a positive attitude towards a hotel’s service quality. “Room quality standards should be maintained based on customers’ expectations.” (Interviewee 2)

4.3.3.2 Transportation

Tours’ answers about transportation services indicate that coach services meet Chinese travelers’ needs. Chinese tourists consider the drivers to be trustworthy and professional, and special mention was given to the time concept – tours excursions drivers are very punctual. Most of them book tours buses, and few of them would rent cars. “Chinese Tourists speak very few English and no French at all, we are the only one who provide them a mandarin speaking guide” (Interviewee 2). Chinese travelers do not yet use public transport very often. The island public buses are so far from the standards of China and the whole system itself is a mess. It is almost impossible for a Chinese traveler to enjoy an excursion journey with the local transport. Also, people had complained about the air transport. It is difficult for a Chinese tourist to come to Mauritius, as the only direct flight is from Hong Kong. We receive tourist from Shanghai, Guangzhou or Beijing. Guides had perceived them to be a very nice experience for Chinese travelers due to the beautiful environment Mauritius provides. No major complaints were notice about the tour buses itself and the activities provided.

4.3.3.3 Catering

Chinese travelers prefer Chinese food wherever they travel. Lunch is always in a Chinese restaurant. Tours explained that reasons for this are that western food is too different for Chinese tourists; this does not suit Chinese people. They are not even eager to try. “It is simple you want to get Chinese customers, you need to give them Chinese food, they don’t want to try something else.” (Interviewee 6) Whatever the price is the want to eat only food they are use to. They are pleased by Mauritian Resorts efforts, trying to give them Chinese breakfast and dinner. With typical Chinese trip in Mauritius breakfast and dinner are usually in the hotel, but lunch is always in a Chinese restaurant. If the trip is longer, for example 10 days (which is very rare) Chinese tourists might want to taste western food only once. The opinions about European and Mauritian food are divided. However, it was surprisingly mentioned that Chinese tourists do like the western type breakfasts at hotels even if western food was not preferred otherwise. However “some negative comments came up with groups are not that pleased with the Chinese restaurants, because Chinese food in Mauritius does not have its typical taste.” (Interviewee 3) The quality of the restorations is said to be very good in Mauritian resorts.

4.3.3.4 Activities

According to tours, sightseeing around the island (normally 2-3 hours) and shopping are always included in the programs. Sometimes groups visit Black river gorges or Chamarel Colour Park or Grand basin spiritual temple and SSR Botanical Garden. It was expressed by one of the tours: Sightseeing is too short and visiting gorges and SSR Botanical Garden is quite boring as it is reasonable small compared to other country (Interviewee 1).

There are no interesting or famous architecture (e.g. compared to Singapore or Thailand) in Mauritius. “There is not much to see” complain a Chinese Tourist to one tour. Chinese tourists would like to see nature or try as much as activity as they can. “A European would go on average on three excursions for ten days of stay, whereas a Chinese would go to seven through the same period”. (Interviewee 3) Shopping is always included in the tours, and groups prefer to do that with a guide as well. Even if Chinese love shopping, this seems to be a disappointment for them in Mauritius. “They are eager to buy luxurious product like Hugo Boss, Chanel, Rolex, and so on” (Interviewee 5), “the problem is that 75 percents of the product they would buy in Mauritius come from china, so why would they buy it here” (Interviewee 1). They would rather by traditional souvenir of the island and model boats. Price is not an issue for them; they are here to spend money. “Chinese do buy a lot, e.g. perfumes, fashion, watches from Switzerland and without caring for the high prices. What they want is quality and brands; they are not here to buy made in China” (Interviewee 5)

Tours mention that Chinese tourists do not enjoy free time on their own. Reasons for this were mentioned that there are no communication possibilities as only few travelers know English and due to their cultural background. Chinese tourists also enjoy casinos and live shows. Lack of interesting nightlife in Mauritius was also found to be negative.

Two of the tours mentioned that travelers are very happy if they are kept busy during their all length of stay. “A Chinese traveler, even if he has his plane at two in the afternoon, at 7 am he is going out on excursion. A Chinese tourist, even if he landed at 7a.m and arrives to his hotel at 9 am, at 10 am he is out for an excursion. This is Chinese Tourists.” (Interviewee 1) They are usually happy of the Mauritius’ experience.

4.3.4 Significance of Traditional Mauritian Attractions

This part will discuss significance of traditional Mauritian attractions for Chinese tourists. That is Sea; Sand and Sun. These attractions are normally promoted by MTPA and attached to the image of Mauritius. What is the significance of these attractions to Chinese travelers according to the interviewee?

The Chinese Tourists are not again the three S’, Mauritius is promoted the same way as in European Country, in China. However once in the island, the three S’ are definitely not their main interest

Hotels are tasked with the responsibility of providing efficient services for their clients. The day-to-day operation of a hotel involves the management of the hotel’s staff, customers and dispensation of other services offered. Hotels have traditionally relied on paper-based records. This system has been characterized by an ever growing need for storage space and proper maintenance to ensure customer’s records and other hotel data is not lost.

Kenya is gifted with a distinctive combination of tourist attractions, comprising tropical beaches, abundant wildlife in natural habitats, scenic beauty and geographically diverse scenery. The diversity of Kenya’s habitat is equalled by the remarkable variety of plant life and world famous wildlife heritage. Thus, Kenya can truly be promoted as a destination that offers the visitor – whether foreign or domestic – an unmatched variety of travel experiences.

Tourism in Kenya has played a very big role in the growth of the economy. It currently accounts for about 12 percent of the Gross Domestic Product (GDP), making it the third largest contributor to GDP after agriculture and manufacturing, and Kenya’s third largest foreign exchange earner after tea and horticulture. The sector has been singled out as one of the sectors that shall contribute considerably towards poverty mitigation as set out in the Government’s Economic Recovery Strategy for Wealth and Employment Creation 2003-2007.

Given that the essential road and rail network and superstructure are already largely in place, tourism has the ability to expand rapidly. Additionally, tourism through its multiplier effect has the capacity to promote regional development, create new commercial and industrial enterprises, stimulate demand for locally-produced goods and services and provide a market for agricultural products.

In order to change the image or perception of Kenya in overseas markets which had been adversely affected by negative publicity, whether warranted or unwarranted, the Kenyan government created a body called The Kenya Tourist Board to oversee these changes. The Kenya Tourist Board is tasked with promoting and marketing Kenya both internationally and locally. The key policies of the board include the promotion of up market eco-tourism and wildlife safaris; a gradual move away from low value package or mass tourism; the diversification of tourism products and markets; and the promotion of regional and domestic, as well as international, tourism. Emphasis has been placed on obtaining a precise understanding of customer needs, and developing and delivering the products that customer’s desire.

The Kenyan government also created some related organizations to help in training and management of Kenyan tourism industry. They include:

Catering and Tourist Development Levy Trustees (CTDLT)

Kenya Utalii College

Kenya Tourism Development Corporation

Kenyatta International Conference Centre

Bomas of Kenya

Kenya Safari Lodges and Hotels (KSLH)

Tourism Trust Fund (TTF)

1.2 Problem statement

The aim of this project is to develop software, which can manage and keep the records of the hotel. The existing system is manual. A web-based booking system enables the customer to view hotel services and select rooms without going to the hotel and he can make transactions through the internet. Thus, the customer can save so much time. Due to the advances in technology, the management of Sunset Hotel requested for the construction of an Online Hotel Booking System.

1.3 Overview of the Current System

The business organization name is ‘Sunset Hotel’. Sunset Hotel Kisumu is a wonderfully landscaped resort that is in a class of its own and is located in peaceful surroundings, away from the hustle and bustle of Kisumu’s noisy business district, and a few meters from the shoreline of Lake Victoria.

Sunset Hotel is just a 5 minutes drive from the city centre and 15 minutes from Kisumu International Airport. The hotel borders Kisumu Impala Sanctuary that hosts a wide array of animals like leopards, hyena, olive baboons and vervet monkeys. It also provides grazing lands for Hippos, habitat for several small mammals including the endangered Sitatunga, and supports a variety of reptiles and birds species.

The hotel has a capacity of 50 rooms and 100 beds all air conditioned with multi channel satellite TV, separate shower & bath, outdoor swimming pool, in-room safe and minibar. As the name suggests, guests from all over the world visit the hotel to view the sun setting from the privacy of their rooms. The hotel is renowned for hosting conference, cocktail parties, outside catering services and family gathering.

All over the world, businesses and hotels in particular have taken their services to the website. Sunset Hotel boasts of a very nice website where guests can view the services offered by the hotel, but it lacks the key advancement in the hotel industry. The hotel lacks an online hotel booking system where guests can book or make reservations in the hotel without having to call or send an email and wait for feedback.

For hiring a room in this type of hotel, the client needs to meet with the receptionist to collect the information of hotel facilities. After that he is to fill up the pro forma provided by the hotel authority, then he has to pay the defined amount of money and is offered room key for his/her rented room. But client always wants greater privacy and reliable security.

1.4 Solution statement

Hotel needs to preserve the records of visitors and reserve rooms in advance. Customers should be able to know the availability of the rooms on a particular date. They should be able to reserve the available rooms according to their needs in advance. To make their stay as comfortable as possible, they are provided with food, laundry services, transportation, phone calls and other services. The records of the foods taken by each customer and the services availed to the customer should be kept since they will be used to generate customer bill.

The Online Hotel Booking System for Sunset Hotel in Kisumu should be able to meet the following requirements:

The system should be able to keep the records of the guests and the room assigned to them.

Customers should be able to know the availability of the rooms on a particular date or a period of time.

Customers should be able to book the available rooms online.

The system should keep the record of food and other services availed to the customer.

The system should allow customers to make payments online through Visa Card, MasterCard, M-Pesa and any other internationally recognized mode of payment.

The system should be able to generate the bill for a customer.

1.5 Scope

The project was meant to come up with an online hotel booking and reservation system. The scope of this project did not cover the design and implementation of the online payment processing system since this will be integrated with PayPal worldwide payment system. Only links to PayPal registration page will be provided but not how it processes transactions.

Being an academic project, limited time and resources has restricted me to incorporate, in this project, only the main activities that will be performed by the Online Hotel Booking System, but maximum care has been taken to make the system well-organized and user friendly.

1.6 Project roadmap
CHAPTER
DESCRIPTION

1. INTRODUCTION

Define the scope of the project, problem and solution statement.

2. LITERATURE REVIEW

Examines literature and systems of a similar nature , gives insight into strengths and weaknesses of the current system

3. OBJECTIVES

Lists the criteria to be met in undertaking the project

4. METHODOLOGY

Examines probable methodologies that could be used and identifies the suitable one for the system to be developed.

5. FEASIBILITY STUDY

Examines the viability of the project economically, legally, organizationally, socially and technically

6. REQUIREMENTS ANALYSIS

Involves understanding the current system in order to determine the requirements that would be incorporated into the new system development.

7. REQUIREMENTS

SPECIFICATION

Involves defining the functional and non-functional requirements of the system to be developed.

8. LOGICAL SYSTEM

SPECIFICATION

The Technical Systems Option and logical designs of the system to be developed are defined.

9. PHYSICAL DESIGN

The logical designs developed in the logical system specification stage are implemented physically.

10. CODING AND TESTING

Codes that give functionality to the system are developed and tested to ensure they achieve the required functionality

11. CRITICAL APRAISAL

The project is examined in totality and its strengths, weaknesses and measures on how it can be improved are highlighted.

12. CONCLUSION

The lessons learned from the undertakings of the project are highlighted.

Figure 1: Project roadmap

In the essay the researcher was able to come up with the current status of the industry, that is, what the marketing body and the government are doing to promote tourism. Moreover, the study includes the country’s Strategic Analysis in a pursuit to shed light on the opportunities that are open for Lesotho’s tourism.

From there the investigation entails what other countries’ marketing mix especially Promotion involves and the researcher is not only based on fellow Developing countries but also other Developed countries.

The investigation also looks at the unexploited markets of Lesotho which can be a major boost to both the industry and the country’s economy at large. These unexploited markets are based on the Product portfolio of the country which has not yet been natured or in some cases, the products that are not being promoted well enough or at all.

In the conclusion there are recommendations on what the tourism stakeholders should do to ensure that the country’s tourism industry performs at its optimum level.

Lesotho’s tourism industry is currently ranked 180 out of 181 economies in relative contribution to national economies and 150 in absolute size worldwide by the World Travel and Tourism Council (WTTC) and personally as a Mosotho this is appalling indeed considering the fact that fellow Southern African countries like Swaziland and South Africa are ranked 167 and 101 in relative contribution to national economies respectively, but on the brighter side, Lesotho is ranked 50th in 10-year growth which shows that it has a high potential of growing.

Therefore the core aim of this essay will be how Lesotho’s tourism industry can be improved both in the long-run and short term. I will examine the Product, Promotion and Place mostly as it will be difficult to get the consumers view about the Pricing. Moreover I will use different Analytical tools as aids in this essay.

What made the researcher, me, choose this topic is the fact that I was born and bred in Lesotho and I have a close relative actively engaged in the country’s tourism industry and the above mentioned reasons have evoked my interest in tourism as a whole and has lead to this keen interest of looking into possible ways of improving this unique product better known as the “Kingdom in the Sky”, hence the topic: “CAN THE TOURISM INDUSTRY OF LESOTHO BECOME A MAJOR CONTRIBUTOR TO LESOTHO’S ECONOMY?”

What Lesotho is doing

The country’s tourism industry is primarily marketed by a parastatal, the Lesotho Tourism Development Corporation (LTDC) which is a government initiative.

I find it fitting to firstly establish the current state of the country’s tourism industry so that I can move on to raising applicable recommendations. To establish this I interviewed a Marketing personnel at the Lesotho Tourism Development Corporation at the Maseru Information Centre, who emphasized that they as the tourism body are in charge of promoting the country’s tourism and currently they do so by attending regional and international exhibitions such as the well-known Indaba which is Africa’s top travel show held annually in Durban and the ITB Berlin Convention which is the highly respected and decorated travel conference in the world; they attend these exhibitions in order to bring to the attention of international tour operators that Lesotho is the home of adventure tourism so that they include the “Kingdom in the Sky” in the around Africa or around the world tour packages they offer to their clients which mostly are “big spenders”.

The mammoth challenge is that the international market did not know that Lesotho exists therefore firstly the LTDC had to overcome this challenge which they have made commendable progress with their informative campaign by attending these kind of aforementioned exhibitions and others annually so that the industry takes them seriously and does not forget about them by seeing them frequently taking an active role and setting up award winning stands ( Lesotho’s stand was dubbed the best stand at the 2008 Indaba and at the 2010 ITB the LTDC’s stand was amongst the top 10 best stands at the exhibition)

Apart from the annual exhibitions, the LTDC hosts a monthly expo called the Maseru Bazaar at the Maseru Tourist Information Office which showcases local handicraft, traditional dances and local artists of all genres. Furthermore, stalls are put up for all interested individuals in the tourism industry to show their products to the public and visiting tourists who often make their first stop here when they enter the country. The core aim of this expo is to market domestic tourism, that is, to encourage the people of Lesotho to tour their home country, they call this campaign “Know your country first”.

Their campaigns are focused on adventure tourism more than anything because of the country’s rugged terrain and its mountainous geography, therefore most of their budget is apportioned to selling this type of tourism to their regional counterparts and the international market at large.

The LTDC has recently developed a travelers’ website [1] which provides information about where to stay, what to do and a list of upcoming events to mention just a few.

One key aspect in the business industry is the product, this is also the LTDC’s priority to make sure that what they are selling to the regional and international markets is of highest possible quality. They do this by encouraging people to keep the country clean although in this department they are not doing that much as expected.

There has to be a reason why the LTDC is performing the way they are currently, not being at their best. Like many other African countries would say, and has become their “anthem”, the main reason is funding, the government is not injecting sufficient money into the country’s tourism industry to allow the LTDC to function at their optimum best. For the 2010/2011 Financial year, the government apportioned M 53.2 million compared to M 69.7 million [2] for the previous financial year for the Ministry of Tourism Environment and Culture. This is a serious problem which may be caused by the cultural background of Africans because they do not believe in touring themselves but they put effort and money in agriculture which recently is failing them.

The private sector is the one which is doing their level best to try and market the Kingdom in the Sky so that they as individual companies can survive, they have gone to the level of setting up an independent body called Lesotho Council for Tourism (LCT) which includes every business related to tourism, tour operators, accommodation establishments, catering services and others. The core aim of this body is to provide tourism training programmes, support for tourism development and assistance to the tourism private sector to maintain high quality tourism products [3] . It aims to achieve these by encouraging local and international investments in the industry and by offering its members access to membership international tourism bodies (Regional Tourism Organization for Southern Africa, South African Tourism Association).

Strategic Analysis

But what are the strengths and weaknesses of Lesotho’s tourism industry? To answer these questions and others I will use the SWOT analysis.

Strengths

Product

Lesotho is home to numerous unique landmarks which can only be offered by Lesotho and Lesotho only:

The highest pub in Africa which is the Sani Top Chalet

The longest single drop waterfall in Southern Africa

The highest lowest point in altitude in the world

The highest peak in Southern Africa, Thabana Ntlenyana

LetA?eng Diamond Mine which is the highest (altitude) mine in the world

Apart from those unique landmarks Lesotho has the following:

Undulating landscape (magnificent and widely accepted)

Friendly and hospitable people

What Basotho call the Engineering Project of the decade which is the Katse Dam, consists of a 185m tall double-curvature arch wall, and other Lesotho Highlands Water Project dams

National Parks and Game Reserves

Rock art which comprises of foreshortening [4] and therianthropes [5]

Workforce

The industry has several passionate people engaged in different sectors of the tourism industry, tour operators, information office personnel, hospitable hotel staff and others.

Weaknesses

Product

There are various disturbing factors about the product that Lesotho is selling; the defects include:

Several places of interest like rock paintings have been vandalized by untrained care-takers and villagers some thinking they are preserving the works of art; as did one care-taker of the Bushmen paintings’ site who poured water on the paintings thinking they will be more visible only to find out that he was destroying the artifacts.

Maseru as the capital city of Lesotho cannot accommodate more than one thousand tourists. On the contrary, even if more establishments were set up, most of the time the rooms would not be occupied because this came to the attention of a tour operator when he had to organize a tour for a group of 1000 guests.

Tour operators do not have big vehicles to handle large groups which forces them to hire local coaches which most of them are not satisfactory because they travel day-in day-out as taxis therefore they are not looked after that well.

Workforce

Customs’ staff at the various ports of entry does not treat visitors well at all, they do not have customer care training. Numerous tourists have complained about this at the Tourist Information Office in Maseru.

Accommodation receptionists at several establishments in the outskirts of Maseru also have a problem of having not undergone a customer care course. This is a serious problem because one tour operator told me his anecdote of when he was at a hotel in Mafeteng where he waited for about half an hour for a receptionist to appear and when she appeared she did not even greet him nor apologized for being late, she arrogantly asked them what he wanted. This is appalling and is slowly driving people away from the Kingdom in the Sky.

Opportunities

The world is dominated by high-tech machinery and technological advances which cause stress to its users and this has lead to people wanting to tour original and ethnic countries away from their daily busy urban life and Lesotho is one of them, therefore the market for cultural and eco-tourism is fast growing and Lesotho should fight for its share in this market.

Lesotho is investor friendly and for that reason foreign investors could be approached so that they build accommodation settlements and other facilities to improve what the country offers the world and they themselves will be moved to promote the country for their investments sake.

South Africa’s accommodation rates have risen sharply because of the 2010 FIFA World Cup and these prices are chasing tourists away now that tournament is over while Lesotho’s accommodation rates have not changed significantly meaning more people would choose Lesotho over South Africa.

Threats

Lesotho is totally landlocked by South Africa; therefore healthy diplomatic relations between the two countries are of utmost importance because South Africa is the only road gateway into and out of Lesotho. This is not only the case when using road transport but also the case when using air transport because in order to reach Lesotho one uses a connecting flight (controlled by Airlink, an airways company) from the O.R. Tambo International Airport in Johannesburg, South Africa and this is because Lesotho does not own an airline company and its airport is too small to land big planes. This proved to be true during the 2010 FIFA World Cup where entering and exiting South Africa to Lesotho by road meant long hours in the queue waiting for your passport to be scanned and this was enforced solely by the South African government alone.

The number of South African companies marketing and making money out of Lesotho based tours is alarming and worst of all, the country gets minimal revenue from those tours. The biggest threat comes from Free State tour operators because they do not hire local tour operators to conduct those tours; they conduct the tours in Lesotho themselves.

South Africa is the country’s biggest competitor because it has almost everything and more than what Lesotho offers and markets those attractions well to the international market.

At this juncture I will try to look at what other countries are doing, both the developing countries like South Africa and the developed countries like Ireland and others.

What other countries are doing

The Developed Countries:

The first country that I will look at is Switzerland which nearly has a similar terrain to that of Lesotho as it is also mountainous and interesting enough it is also landlocked. It is ranked 15 in absolute size and 47 in relative contribution to national economies by WTTC.

Switzerland has different packages and tours such as Food & Wine, Time Travel (which is basically a historical package of the country), Shopping, Wellness, Cycling, Hiking, Adventure & Sports, Family Vacations and Gay & Lesbian oriented tours to mention a few.

They have a very informative website [6] and it doesn’t end there, different cities also have their own websites which concentrate on their respective cities, for example Zurich [7] which has its own website which is quite informative and up-to-date; it shows the different tour packages for different markets such as Smart spenders and Luxury lovers.

This shows that the marketing and promotion of tourism in this country is of utmost importance to the people of Switzerland.

Now, I will explore Ireland, known as the Emerald Isle; it is well known for its vivid greenness of its countryside.

Ireland is a small country ranked 42 in absolute size and 135 in relative contribution to national economies by WTTC. It exploits the honeymoon and romantic getaways markets; that is why it is also well known as a romantic getaway destination, from Northern Ireland to Southern Ireland you find suitable vacation areas for the newlyweds and ordinary couples who want to have a romantic holiday.

It markets different types of holidays also including adventure tours for the adventure seekers, cycling, family packages, angling, cruising, water based activities, wellness tourism and sports including Equestrian.

The Irish tourism sector is marketed by National Tourism Development Authority through the Failte Ireland [8] and its success is based on the fact that each tourism product which is of great importance is marketed individually by a team of executives, and the investment and development of facilities in those sectors of the tourism industry is their responsibility also. These Sectors include: Activities, Culture & Heritage, Festivals & Events, Sports Tourism, Business Tourism, Spa & Wellness, Food and Accommodation [9] . Ireland focuses on Business Tourism also as a key player in the industry so much that it has its own website [10] which deals with the corporate world leaders in pursuing them to choose Ireland as the host of conferences and seminars. On the website there is information about venues and their facilities and registered corporate event organizers so that the business people can enjoy their stay and the conference without any difficulty.

Failte Ireland has made tremendous progress indeed because it has managed to do the following:

Help improve the skills of people involved in the Irish tourism and help those seeking a career in tourism have been offered training.

Setup an Environment Unit whose role is keeping the natural and built environment at their highest possible standard

Setup a programme of country networks which help small tourism businesses to grow

For improving the range and quality of the tourist attractions, they have secured a seven-year grant aid through the National Development Plan

Caught the eyes of the world market by coordinating large events like the Ryder Cup, just to mention a few.

Moreover, the tourism body in Ireland focuses on not only to attract international tourists like most countries do but also they encourage the Irish population to tour their own country and take domestic holidays.

Developing Countries

Now coming to countries which the world views them as developing countries like Lesotho it would only be fair to consider other African countries, relatively bigger and smaller than Lesotho geographically.

Once again I will consider Swaziland as it has a lot in common with Lesotho, it is a monarchy, it is small like Lesotho and landlocked just to mention a few. Therefore, I believe it would only be logical and fair to compare the two countries.

Swaziland has an eye-catching, informative and most importantly, an up-to-date website [11] . Swaziland’s tourism body, the Swaziland Tourism Authority, focuses on promoting different types of tours for different markets which range from adventure tourism (like Lesotho) to shopping and culture oriented tourism because they are a country rich in culture hence the reason why the King is still both the head of state and the head of government.

Considering South Africa which is a trendsetter and a role model of other Southern African countries because of its success and influence, I will look at what it is doing to promote its product.

The Government of South Africa through the Ministry of Tourism injected R 631 million [12] into the South African Tourism (SAT) whose role is to promote South Africa’s tourism.

The SAT like the LTDC, promotes domestic tourism. Since 2007 they did so using a campaign called the Sho’t Left Campaign, “See your world differently” [13] . The campaign’s aim is showcasing the myriad of affordable and within reach holiday destinations to all South Africans. Its execution is colourful and lively, designed to attract South Africans, more particularly those who have not toured their motherland. The main objective of this marketing campaign is to show South Africans the ease factors and affordability of going around the country. The target market of the campaign is three niche markets, Well-off couples and families, the youth and independent couples and families. The main objective of the Sho’t Left campaign is sourcing and publicizing a variety of reasonably priced package holidays. At its inception, it involved an aired travel oriented challenge which was broadcast on SABC 2. Although the Sho’t Left Challenge is no longer aired, SAT continues with marketing and encouraging South Africans to tour their own country with TV commercials [14] which show foreign tourists, touring the places of interest and some closing with a comment: “They have toured our country, have you?”

Apart from promoting domestic tourism, the SAT has an up-to-date website [15] which covers all sectors of their tourism industry including Business tourism which is a good source of revenue because the international and regional conferences are attended by well-established business people who want nothing less than top quality and are willing to pay for it.

Unexploited Markets

At this juncture, I will look at unexploited markets which can be a cash cow for tour operators and the industry as a whole.

Firstly, like Swaziland, Lesotho still has rich culture which can be a measure tourist attraction as it is in Swaziland. The international tourists are interested in the African culture and are becoming more and more interested in experiencing traditional African cuisine. Another anecdote is of one tourist who was taken to one of these five star accommodation and entertainment establishments and emphasized that ‘they (Western people) are the ones who brought this establishments to Africa and they are tired of them, which is the reason why they are touring Africa’. This has proved to be true because during the FIFA Soccer World Cup which was recently held in South Africa, the international tourists especially the Germans enjoyed staying and dinning in Soweto which is a big township made of different ethnic groups of South Africa.

Secondly, adventure tourism has niche markets which have not been fully exploited yet. For example, the off-road market is increasing and as a result an increasing number of bikers clubs are looking for challenging tracks which they can use for their sport and Lesotho has an appropriate terrain for such people who want to ride on their bikes just for the fun of it, not for competitive racing. Therefore tours can be organized for this niche where a track across the mountain highlands can be set up for touring the highlands on bikes. Moreover there is this biggest racing competition of the year called the Roof of Africa Rally. Currently the race attracts the bikers’ families and their sponsors, therefore the rally should be marketed globally to attract foreign and local spectators to come and view this race first hand. The LTDC can help in by advertising this event extensively at the annual exhibitions that they attend and by coordinating this event to ensure its success.

When someone is in Cape Town, South Africa, one of the questions he will be asked by people is, did you go to the Table Mountain. Lesotho also can make money from its “Table Mountain”, Thabana Ntlenyana which is the highest peak in Southern Africa. A huge market exists for this because people would be able to make it to the top of the peak using a cable car if one is to be set up there and adventure seekers would probably climb up the mountain if they are familiar with rock climbing. Although the cable car can be very expensive to set up, it would pay huge dividends to the investors, government and the tourism industry as a whole.

One other possible cash cow is ecotourism, the reason being that Lesotho has an unpolluted atmosphere due to not being part of the industrial revolution. Furthermore Lesotho has undulating landscape and rugged terrain which other western and Asian countries do not have because many of those countries are flat.

Amongst other ecotourism sites there is the Maluti Drakensberg, this area consists of many exclusive features [16] :

Fauna and flora found in Lesotho only

24 species of snakes

350 species of birds of which 40 are exclusive to Lesotho only and 10 endangered species

100 grass types

Unspoilt ecology of the sites

It is one of the finest art galleries in the world due to the rock paintings

Adventure tourism hotspot

The importance of ecotourism and its benefits can be summed up in Hector Ceballos-Lascurain’s words:

“aˆ¦ the person who practices ecotourism has the opportunity of immersing him or herself in nature in a way that most people cannot enjoy in their routine, urban existences. This person will eventually acquire a consciousness and knowledge of the natural environment, together with its cultural aspects, that will convert him or her into somebody keenly involved in conservation issues” [17]

Conclusion

Having seen the potential income generators I will therefore focus on other recommendations:

Lesotho has to:

Add more information on the travelers’ website which includes tour operators’ contact details and more tourist attractions apart from the national parks.

Set tourism as a high priority: by investing in human, financial and other resources

Intensify marketing effort in the region so that the country benefits from the effort that SAT has already embarked on which is already bringing tourist in the vicinity of Lesotho.

Put in place representative offices in three major cities of South Africa – namely, Cape Town, Durban and Johannesburg.

Government should deploy tourism attache in every embassy of Lesotho around the world.

The government should also deploy a tourism attache at South African International Airports namely, the O.R. Tambo International Airport, King Shaka (La Mercy) International Airport and the Cape Town International Airport.

Empower local business people who are involved with tourism so that they can improve the performance of their operations.

Setup ongoing training programmes for the business owners, managers and staff in the tourism industry.

Monitoring of all the programmes and making adjustments progressively to ensure a constant growth of the industry.

Improve and protect tourism product, especially special attractions unique to the country.

The LTDC should refocus its strategies in order to adapt to the ever changing international market and competition by continually revising its action plan and revising its tourism trends’ forecast.

Market ecotourism extensively as Lesotho has world class ecotourism sites and features

In summation, based on the unexploited income generators aforementioned and my recommendations, I can safely say Lesotho’s tourism industry has a great potential of being a major contributor to the country’s economy as it is the case for countries like Zimbabwe and others.

With a fleet of enthusiast tour operators that Lesotho has, the chances of the industry growing are alarming because of the passion that they have as the interview [18] revealed but a lot has to be done to nature that passion so that they do not end-up losing hope and believe in the industry.

Appendix A

Interview with a tour operator and Secretary of the Lesotho Tour Operators Association

Mr. Motlatsi Rametse

Q. What are some of the challenges you meet as a tour operator?

“The destination (Lesotho as a tourist destination) is not known therefore it results in small number of tourists coming to this country although 7 million tourists come to Southern Africa annually

Lack of support by financial institutions

Rigid insurance companies offering limited insurance products, none of them able to cover tourism services

Lack of political will”

Q. Do you think the government and the LTDC has done enough to promote tourism, if not why?

“No, they have failed to link up with South Africa although the country is totally surrounded by it.

They have also failed to intensify tourism marketing in regions that predominately favours tourism to Lesotho. Only 5.8% that reach South Africa come to Lesotho.”

Q. What keeps you going irrespective of the challenges you meet in the industry?

“Diversifying by running other business ventures in parallel with tour operation and my love for tourism”

Q. Do you think the tourism industry has a potential of growing given its state currently and what can be done to facilitate the growth?

“Yes, what needs to be done is aggressive marketing in South Africa through South African media to travel agents and tour operators based in South Africa

Develop a revolving fund to support tourism related projects and businesses”

Q. What seems to be driving tourists away from Lesotho or why are the numbers of tourists who visit the country not increasing?

“Lack of marketing

Lack of standard accommodation facilities

Lack of quality service (customer care)”

The tourism industry is a complex system where its necessary to look at all different sectors which are influencing each other, to get a clear understanding how this system works. A helpful tool to use already models and theories, apply them on different example and evaluate them. The individual as a potential customer has to be analysed and categorised, which is ensuing a better understanding of tourist behaviour. Furthermore it helps to recognize their decision making progress for a destination, as well as getting knowledge about their needs and expectation. This essay will show the usage of these models and theories on example of the Dominican Republic.

Tourism can be defined as a combination of services and activities for people who travel to places outside of their familiar surroundings. The definition of a tourist is wide-ranging, because the purpose of travel ranges from holidays, business trips, and visits to friends and relatives to various other reasons such as study, religion, shopping and so on. More than an industry, it is rather like a system that sells packaged holidays, activities, attractions, accommodations, and entertainment. It is offering the opportunity to break away from normal life and enjoy leisure time in different locations. Tourism normally does not provide just one single product; mostly it is a bundling of various products to satisfy the demand of the tourist. For example, someone going on holiday to London would not merely consume one product from one supplier. It is more likely that he is utilizing a package of services. He might arrive by plane, go by bus/train to his hotel, dine in a restaurant, and take a sightseeing tour. Due to the fact that nearly every tourism product is interlinked, there is no owner or manager with complete control of his own destiny (Gunn A.C. 2002, p.243). Additionally, other industries, such as the oil industry, are linked to the tourism industry. In recent years tourism become a part of daily life because people have more leisure time than they used to have 50 years ago and the view of the work-life balance has changed.

Another important point to mention is that the tourism industry is one of the largest in the world and is creating millions of temporary and permanent jobs. In 2006 the travel and tourism industry’s percentage of the world gross domestic product was 10,3%, with a turnover of US$6,477.2 billion. The industry supported 234 million jobs, 8.7% of total world employment (Cooper, et al 2006: 3). This data represents the global importance and significance to the world economy.

Tourism does not include just the supply of hotels, beaches and travel agencies but also economical, environmental and socio-cultural impacts. These three areas are always commingling and conflicting. There are people whom are simply interested in making a profit, other people wanting to protect the environment, and yet another group of people concerned with the social and cultural impacts of a tourist region. All three groups must achieve a balance to enable sustainable tourism. This idea is shown on the following graphic:

3. Tourist typology and their implementation to tourism models
Stanley C. Plog

One approach to understand tourist behaviour is to identify different types of people, whereupon they can be categorised into a series of organised psychographic types. In 1973 Stanley C. Plog created a model for the American population showing how personal motivation influences the decision for a vacation destination. He divided tourists into four types: allocentric, near-allocentric, mid-centric, and near-psychocentric/psychocentric. The allocentric type views travelling as an opportunity to discover foreign cultures and prefers exotic destinations. They are self confident and open for new experiences. The near-allocentric type is sporty, seeks challenges and views the journey as a chance to test a new lifestyle. The mid-centric type looks for relaxation and pleasure in a well-known environment. They want to escape from the daily routine and enjoy comfortable accommodation. The near-psychocentric and psychocentric types are focused on themselves and are scared to discover something new. These people tend to look for a safe place to holiday. Their choice of destination will be a place they know and where they are not that far away from their home city (Johnson & Thomas, 1992: 19).

Plog considered that there are just a few ‘psychocentric’ or ‘allocentric’ types because the majority of tourists are mid-centric.

However, Plog’s model is hard to apply in reality. For example the Dominion Republic has a lot of organised mass tourism and it is possible to organize a journey by yourself as well. Every tourist is an individual, so they cannot be generalized. One trip can have a completely different occasion and characteristic than the other one (Cooper, 2008: 48).

Cohen’s tourist typology

Another model which classifies tourists is Cohen’s tourist typology. He divides tourists into the organised mass tourist, the individual mass tourist, the explorer and the drifter. Cohen explains that organised mass tourists are typically purchasing a ready-made package tour where they have no or just a little contact with the local people and stay most of the time inside a resort. This is similar to Plog’s ‘psychocentrics` type. In Cohen’s theory most of the tourists are individual mass tourists. They are similar to the organised mass tourists, but they have more flexibility and scope for personal choice. They want to have contact to the local people. This category is comparable to Plog’s ‘midcentric’ tourists and most tourists fall into this category. The third tourist type is the explorer, who organises the trip by himself and looks for something special, something away from the typical interests of a mass tourist. However, he is still interested in comfortable accommodations. The last type, the drifter, is completely independent, wants to live with local people and wants to take part in the native culture. Cohen’s last two tourists’ theories, the explorer and the drifter, which are also the minority in this industry, are similar to Plog’s ‘allocentric’ tourists.

(Cooper et al, p.51).

5. Demand for the creation of tourist typologies and their practice on the example of the Dominican Republic

The reason why we need these typologies for different tourists is to help and to be able to develop tourism destinations. Expectations and needs from tourists on a perfect holiday can be identified, so the desired service can be supplied. As soon as we know the different motivations for individuals travelling to a particular destination, a specific tourist type is going to be targeted. This means that in example of the Dom. Rep. the organised mass tourists in the majority, which are looking for a safe holiday, we know their behaviour and know how to plan for them. Most of the resorts in Dom.Rep. are designed for this clientele and have been developed very fast during the last 20 years to satisfy the demand from tourists. At the first stage resorts were build for explorer or drifter, and since the creation of package tourism, a lot of individual mass tourists came to this area. With the creation of ‘all-inclusive’, there is no need for tourists to leave the hotel. Because of investigating the different desire of tourists and define them, it was possible to develop this area (National and regional tourism planning 1994, p.147).

6. Doxey’s Index: The socio-cultural impact of tourism

The Doxey’s Index describes the relationship between visitors and the visited. He developed a five stage model which describes the first step as the upcoming ?euphoria? when a small number of tourists arrive thus stimulating the economy and a large number of new jobs are created.

The next steps are ‘apathy’ and ‘annoyance’. At this stage local people get first used to tourists in their familiar surroundings, and afterwards annoyed, because too many people are visiting the destination.

‘Antagonism’ and ‘acceptance’ are the last steps in this theory. Native people start to avoid tourists and at the last step they accept them. ‘Acceptance’ means, that they accept tourists in their usual life and forget how the area was before tourists arrived (Cooper et al, p.47).

Top priority should be always building better relationships between residents and visitors, which improves social life for both sides. In Punta Cana, where the proportion of tourists is high to the number of residents, cultural problems occur because of different society expectations (National and regional tourism planning 1994, p.147). While Punta Cana has grown within twenty years, the local community did not have enough time to adjust to the high number of tourists.

The three models of Plog, Cohen and Doxey are coextensive whith each other because when the first visitors (drifter) arrive at a destination, local people are euphoric. These tourists (‘allocentric’) are not scared to discover new areas. In the ‘midcentric’ are the ‘explorer’ and the ‘individual mass tourists’. At this stage the community becomes ‘apathetic’ and ‘annoyed’. The last step is the ‘organized mass tourist’ who belongs to the ‘psychocentric’ and native people start to ‘accept’ them. The relationship between the models is linear (Cooper et al, p.47).

7. Butler’s Tourism Area Lifecycle (TALC)

The Tourism Area Lifecycle(TALC) is a well-known model Butler created to illustrate the dynamic of a tourist -destination or -product through different stages. The graph describes a characteristic function due to the natural interrelation between the exposure and intensity of tourism. It shows the evolutional process where every tourism product is going through, which can help manager to find a way out in case of a crisis or new developed destinations to establish themselves.

Butler’ first stage is ‘exploration’, where small number of visitors arrive in an undeveloped area. These people been identified as Plog’s ‘allocentric’ or Cohen’s ‘explorer’ type. After their trip they are responsible for ‘Involvement’, because they tell others about place they been to (Ryan 2003, p.269). A following rise of the curve during the development stage is logical, because more tourists can be carried. Butler says that the number of tourists decrease until the carrying capacity is reached, this is the consolidation stage. New development has to happen again to rejuvenate, otherwise it would come to a decline of visitors (Butler 2006). While developing new strategies is important to investigate the existing facts and concentrate on the potentials the destination is already providing. At this point it is necessary to make a decision. To develop this place, to leave the place how it is and increase the price or let it decline. ‘Decline’ is the next stage of Butler’s TALC. This happens if too many tourists are arriving at a destination at the same time and the capacity is too low. Visitor are disappointed and the number of tourists will therefore start to fall. An option to avoid decline is ‘Rejuvenation’. That means that the area has to be developed for example with new hotels and beaches.

8. The 5A’s model

The 5As model was helpful to rejuvenate the Dominican Republic when it had been reached the stagnation point. A new development of ‘Attractions’, ‘Accessibility’, ‘Activities’, ‘Amenities’ and ‘Accommodation’ were necessary to bring facilities up to the level demanded by international tourists. When the carrying capacity was reached, an essential element in the tourism take-off was government investment in the infrastructure of tourism zones. Over $76 million went into the Puerto Plata region between 1974 and 1982. New hotels and transportation networks were built, to get electric power and satisfy water supply. Infrastructure was one of the main important things which had to be developed and when the airport in Punta Cana was built, a lot of new different tourists begun to visit this area. (http://kiskeya-alternative.org/publica/afuller/rd-tourism.html#ecsoc)

Today the Dominion Republic is one of the most visited countries and popular for family holidays. This destination fits perfect in Butler’s TALC because at first it was an undeveloped place and started to grow, decisions by the policy had to be done for example to rejuvenate the place, to let the area how it is or to let it decline. The Dominican government decided for rejuvenation because of the high potential of this area. With new roads, attractions, airports and hotels the resort development strategy was successful (National and regional tourism planning, 1994, p.147).

9. Multiplier effect

In tourism “the multiplier effect” is used to illustrate how many times money spent by a tourist circulates through a country’s economy. In other words when a new tourist destination is created, the local economy benefits as new jobs are being created and tourist bring additional trade to local businesses. The most common example is when a new hotel is being built it does not only create jobs directly in the hotel, but also indirectly in other sectors of the economy. The hotel has to buy food from local farmers, who then spend some of this money, for example, on domestic expenses. When tourists spend money for local products the demand for those products increases, which also increases secondary employment.

However the multiplier effect continues until there is a “leakage” out of the economy through imports, which is the purchase of goods from other countries.

The most common example would be a Third World country, such as Dominican Republic, much of the money spent by tourist end up leaving the country’s economy via foreign-owned airlines, hotels, imported drinks and food, etc. A typical luxurious four star hotel would be more likely to import most of its goods and services; if that means that better quality would be provided which would ensure better customer satisfaction.

(http://geographyfieldwork.com/TouristMultiplier.htm

10. Conclusion

Models could be helpful to develop a successful tourism destination and understand the different motivations of tourists. When the policy changes the supply for example to develop an area for package tourism, the demand will also change. That means that the supply has to meet the demand side when at the descriptive side the object and services changing. Plog’s, Cohen’s and Doxey’s models are descriptive because they just describe a situation but Butler’s model is descriptive and prescriptive. TALC explains what is happening in an area and makes diagnose. After this diagnose the problem becomes clear and it is easier to make a decision for solving this problem. It is always necessary to find out how much potential a place has to make substantial development it in the right way. For this fact tourism models are helpful.

11. References

Cooper, C, Fletcher, J, Fyall, A, Gilbert, D and Wanhill, S (2008) Tourism Principles and Practice (4thedn), Prentice Hall, Essex

Gunn, C.A (2002) Tourism Planning (4th edn), Routledge, London

Howie, F. (2003 a,b), Managing the Tourist Destination: A Practical Guide (1st edn), Cengage Learning EMEA

Johnson & Thomas (1992), Choice and Demand in Tourism, Mansell Publishing Limited

National and regional tourism planning (1994) Methodologies and Case Studies (World Tourism Organization) (1st edn), Routledge, London

Ryan, C (2003), Recreational Tourism and Impacts (1st edn), Channel View Publications, Clevedon

Dominican Republic tourism, Tourism Development in the Dominican Republic:

Growth, Costs, Benefits and Choices, avaible from http://kiskeya-alternative.org/publica/afuller/rd-tourism.html#ecsoc (accessed on 11.12.2009)

This report provides a product and market development strategy for the UK tourism industry. It focuses on the benefits and challenges of the UK tourism industry. The background history of UK and the overview of the scope are revealed in this study. It also outlines the vision, mission and its strategic objectives. The report highlights a summary of the key findings of strategic marketing audit of the UK tourism sector. The findings of the report are used to develop a strategy for increasing the economic benefits of tourism to UK. The strategy for overcoming the challenges in order to increase the number of individuals visiting UK for tourism is disclosed in this report. The report concludes by making strategic recommendations for areas of growth in tourism activities in UK, development of products and resources needed to ensure viability. More so, significant barriers to implementing those recommendations are identified throughout the report to address the concerns of stakeholders of the industry.

Summary of Key Issues and findings

The summary of key issues and findings that Britain needs to address in order to improve upon her global competitiveness includes;

The importance of local market and business markets

Growing Competition

New Trends in Demands

Competition from emerging destinations

Taxation of accommodation and food

Entry Visa and Increase in Price

Climate Change

Build on Britain’s image and increase distribution through the trade

Britain’s major source of market and Britain’s core market

However, only five points would be discussed in the body of the report and the rest will be sent to appendix 1.

Definitions, methodology and framework
Definitions

This section seeks to explain strategic positioning and tourism.

What is strategic positioning?

According to Michael E. Porter, (1996) ‘strategy is the ability to make an informed decision on how, when and where to target a customer group, facilitate resources and set objectives (limits) makes the difference between managers who thinks from a strategic perspective in light of what might emerge in future’.

Lovelock (1991), describes positioning as the process of establishing and maintaining a distinctive place in the market for an organisation and/or its individual product offerings.

Putting them together, Strategic Positioning is the positioning of an organization (unit) in the future, while taking into account the changing environment, plus the systematic realization of that positioning (source:http://www.zenska-mreza.hr/prirucnik).

What is Tourism?

According to, Guyer Feuler (1905), “Tourism is a collection of activities, services and industries which deliver a travel experience comprising transportation, accommodation, eating and drinking establishments, retail shops, entertainment businesses and other hospitality services provided for individuals or groups traveling away from home”. Tourism can be categorized into Domestic, Outbound and Inbound.

Domestic tourism involves people taking holidays, short breaks and day trips within UK.

The outbound tourism has to do with the people’s movement from UK to other provinces, territories or countries to explore.

The inbound tourism involves individual traveling from other places such as Ghana, Togo, USA etc. to UK

Methodology

This report seeks to focus attention on the benefits and challenges of tourism industry in UK. The methods used in completing this report include;

Literature review (Journals, Books, Articles and the internet)

Data analysis at UK, both national and sub-national level

Stakeholder engagement

Conceptual framework

The study adopted marketing framework to explain the functions that links the business with customer needs and wants in order to get the right product to the right place at the right time.

Overview of the marketing process

(Adapted from tutor2u, Riley (2012)

Mission, Vision and Strategic Objectives
The Mission

To increase tourism’s contribution to the growth and development of UK economy.

The Vision

UK is globally recognised as one of the world’s leading regional destinations for conference, business, sporting and other recreational activities. The country is noted for her high quality facilities, cultural and entertainment. In view of this, the report seeks to;

Improve the UK share of tourism worldwide and employment and quality of life.

Increase UK share in global visitor market.

Strategic Objectives

Maximize tourism visitation, spend and length of stay

Attract investment in tourism related products

Increase industry participation in marketing activities through industry engagement

Improve tourism related community assets/products.

improve the engagement of visitor with products

Improve market access and connectivity

Developing and marketing competitive tourist destination in UK

Build on Britain’s image and increase distribution through the trade

Improve the range of product on offer and make it easier to get to Britain

Introduction

This chapter provides the background history of UK and the overview of the industry.

Background History & Current state of UK

The United Kingdom is a country that consists of England, Scotland, Wales, and Northern Ireland. It is a wonderful country with diverse culture and tradition. It is highly belief that, the nature of the people in the country, its landscapes, culture, character, history and traditions; its achievements, impact, successes, and standing; and its future, its vision, its potential makes the country Great. The aforementioned characteristics of the country has reckoned its own people, and people from across the world to see Britain, to know Britain and to understand Britain (Source: Former Prime Minister, Tony Blair).

The country is a Member of plethora organisations which include the European Union, North Atlantic Treaty Organisation (NATO), Commonwealth of Nations, World Trade Organisation (WTO), and Organisation of Economic Corporation and Development. UK has the permanent seat on the United Nations Security Council. Through tourism contributions, United Kingdom is the world sixth largest economy and World’s first industrialized country with a population of over 62.4 million (Ref. UN, 2011).

The Overview of Tourism Industry in UK

Tourism industry in UK has immensely contributed to the economic development in the country. The industry occupies a unique position as the UK’s 5th largest industry, 3rd largest export earner behind chemicals and financial services and worth ?115 billion a year. Besides, it employs over 2.6 million people and supports over 200,000 Small Medium Enterprises (SME’s) (source: VisitBritain.com, 2012). Overseas visitors spend around ?18 billion a year in this country and they contribute more than ?3billion in tax and duty to the Exchequer (VisitBritain Consultation Document, 2012). Research has revealed that, tourism in UK is extremely growing faster than any other economic sectors. It is outpacing mining, agriculture, and fishing as a leading industry for the country. One could see the value of tourism in UK is extremely high.

Although, the industry has been helpful to the country’s economy, there has been stagnation of growth recently, due to few key issues and challenges. This has made the industry to decline to the seventh position in the international tourism destination. This result is based on the visitor’s attendance and expenditure (Ref. UNWTO, 2011). It means that, France, USA, China, Spain, Germany and Italy are all ahead of UK in the tourism hierarchy (Ref. UNWTO, 2011). The question here isaˆ¦. `what might be problems or challenges resulting to poor attendance of tourists in UK. It is argue that whiles UK tourism performs well, international tourism is fiercely competitive business and their competitors are upping their game (VisitBritain.com).

The industry is facing problem on how to create a competitive, world-class tourism industry in Britain which can match both the quality and the best of British business as well as the scale of tourism in Britain in particular.

Situational Analysis: The UK Tourism Industry and its Competitiveness
The Value of Tourism to the UK Economy

The contribution of UK tourism industry to the national economy demonstrates the magnitude and complexity of the industry. According to VisitBritain’s CEO, Sandie Dawe (2012), tourism has tremendously contributed to the development of UK economy. To her, the industry can grow by more than 60% which would be amounted to about ?188bn by 2020. Besides, the number of jobs directly and indirectly linked to tourism could rise by 264,000 to 2.89 million by 2020, (source: VisitBritain).

Value of Tourism

(Adapted from VisitBritain.com)

Deducing from this, one could see that, tourism is a major contributor to the balance of payments. On the contrary, it is one of the few activities which would enable UK to achieve competitive advantages through the redistribution of labour within Europe (Economist, 1993:5-6). It is also a vital motivator of the UK economy reducing the deficit of the balance of payments, boosting employment, generating income, and contributing to regional development (Zacharatos, 1989:274; Truett & Truett, 1987:178). In fact, tourism per se is one major generator of wealth in UK economy. The contribution of the tourism industry in the UK economy has been very encouraging. As of 2010, the contribution of tourism has a total revenue of ?110 Billion and 2011-?120 Billion per annum (UK Tourism Statistics, 2012).

Visitors (?m) Spent (?Bn)

Leisure 11.5 6.6

Business 6.8 4 .0

Students 0.5 1.4

Other 2.4 1.2

In 2011 (Ref: International Passenger Survey, 2011)

* 1% increase in the cost, meaning, tourism earning drop down by 1.3% (Sensitive Tourist, 2001)

3.2. UK’s Position in the International Market

However, the industry’s position in the international market chart has been falling for the past 3 years now. This is because the competition in the global market place has become very tough as a result emerging destinations and other outstanding destinations such as France, Italy, Malaysia, Turkey, U.S.A etc. Although the industry was able to beat the cut-out point set for year 2012, yet the country’s position in the global market is still declining.

In 2011, as illustrated in Tab.1 below, UK came in the 7th position in the world classification of tourist destinations. The growth in global travel over the last two decades means that UK is competing against more destinations, for a larger number of potential visitors (VisistBritain.com).

Strategic Key Issues & Findings Facing The Industry

The following key themes are outlined from the strategic audit based on research and findings in appendix 2 and 3.

The importance of local market and business markets

The local and business markets are seen as the UK’s core markets. Research conveyed by VisitBritain has revealed that challenging facing UK international tourism does not only come from economic trends and competitive activity, but source market also poses unique complications. The local market consists of Western Europe and its surrounding nations such as France and Italy. France, Spain, Germany and USA generate 1/3 of all money spent by visitors in the UK economy (Visitbritain). However, since 2006, UK has lost these market shares and visits. This indicates that, Britain needs to defend volume, value and market share of these areas.

New Trends in Demands

The International tourism is moving to a level where consumers are demanding in new and varying activities which would engage them always. Consumers are demanding for new areas such as eco-tourism, health-tourism, sports-tourism, and activity-tourism and education tourism. This means tourists are no more interested in the culture or geographical location of the country. Therefore, in order to attract the attention of tourists, the industry should turn their attention on activity tourism, education tourism

Growing Competition and Competition from emerging destinations

Competition from existing and emerging destinations is another challenge. The emerging destinations like China, Malaysia, and Dubai are the countries that are growing at a fast rate in the tourism industry. Competitors are moving at fast rate, investing in marketing campaigns and addressing policy issues. For example, US government recently has published tourism strategy and national travel to deal with the visa process, border controls and issues of image. However, the major challenge here is how to create a competitive, world-class tourism industry in Britain which would match both the quality and the best of British business and innovative policies to create value and enhance of competitiveness.

Emerging Markets

The competition in the global market place has become very tough as a result of emerging destinations and other outstanding destinations such as France, Italy, Malaysia, Turkey, U.S.A etc. The strategic audit has outlined China, Turkey, Malaysia, Dubai and Egypt as the key target areas for tourism growth. Although the industry was able to beat the cut-out point set for year 2012, yet the country’s position in the global market is still declining. This has resulted because the global marketplace is getting tougher and countries like France, US, China, Germany and Dubai have recognized the potentials of tourism. This has awakened them to deliver growth and jobs in a tough economic climate.

Taxation of accommodation and food

Research has revealed that UK hotels and restaurants overtaxed in detriment to revenues for the wider economy. Thus, most UK hotels and restaurants charges full VAT rate on tourist accommodation, meal and attraction. There are several shops and restaurants in UK that charges tax on everything tourists buy. A notable example is McDonald- any food bought from McDonald has been tag with tax. This has demoralised most of the tourist to visit UK.

Entry Visa

The difficulty in accessing entry visa to UK is another factor inhabiting Britain’s competitiveness as a destination for international tourism. It is an established fact that, for one to get tourist visa to UK is very difficult. Apart from difficult visa process, it is also expensive as compared to other tourist destinations. For instance, to get a tourist visa to UK, one has to pay an Amount of ?78 whiles Schengen visa is ?53. So comparatively, people would prefer going to Germany, France and other destinations in lieu of UK. This has resulted poor performance since visitors from china, India and other African countries are now visiting Germany and France.

Climate Change

The weather condition in UK is seen as a drawback and hindrance to tourism in United Kingdom. As the weather in UK is unpredictable, tourist most often complain of been disturbed by rain and unfavourable weather conditions. This has negatively affected the industry since most people are discouraged and lost interest in embarking on tourism to UK.

Developing Strategic Options from the above Analysis

The findings above outline a number of challenges facing the tourism industry in UK. This section will develop a strategy that would be used to increase economic benefits for the country’s tourism industry. It would also outline a strategic approach to destination marketing (refer to appendix 2) in order to increase the number of individual visitors. It will develop a brand for UK tourism to get a sustainable presence in the global tourism market place.

Pursuing local and business markets

The industry should increase domestic visitation and focus on the local which is UK’s core market. The UK industry should not ignore its local market and business markets whiles the emerging destinations such as China, India represent long term opportunity for growth. The industry should use advertisement, motivation and rewards to encourage the indigenes of this country to embark on domestic tourism. This will smell good for those outsiders to develop interest in visiting UK.

Strategic development of “clusters”

Clusters occur as a result of both vertical relationships with suppliers and customers as well as horizontal relationships based upon shared technologies and common customers (Barker, 2007). Thus, in order to increase economic benefit of international tourism in UK, the industry should aim at forming a cluster that will bring group of industries on board. The presence of the cluster will accelerate and magnifies the process of factor creation in the industry. Once the cluster is formed, it allows companies from the interconnected industries to invest in infrastructures, technologies, information and human resources to improve economic benefits of the tourism industry.

Japan, for example provides a compelling impact of clusters on a country’s competitive advantage. In Japan, Keiretsu has formed a cluster of companies around the major banks with shareholding connections (Barker, 2007). This has encouraged cooperation and interaction. In simple put, the scale of the cluster will encourage greater investment, specialization, exchange information and ideas about market needs. Porter on cluster has cited several examples and it will be interesting to observe that clusters are active and strong in Japan, Italy, Sweden, and Germany. However, it is very weak in UK

Strategic destination alliance

Research has disclosed that, France, Spain, Germany and USA generate 1/3 of all money spent by visitors in the UK (VisitBritain). However, since 2006, UK has lost these market shares and visits. This means that, UK needs to defend volume, value and market share of these areas. In order to gain market share, the industry should establish a strategic partnership with the emerging competitors. The industry can link up with such destinations to form a league of nations with must visit and must see places. The tourism industry can develop stronger relationships with other private companies in the name of tourism partnership program. This will help to develop and promote cultural tourism and opportunities.

Corporate social responsibility strategy

Scholars like Friedman (1962), and Grossman (2005) maintain that, the traditional view of a company is that, the company has a responsibility to make as much profit as it can for its shareholders. Alternatively, the stakeholder approach suggested by Edward Freeman in 1984 directs organisations to manage the interest of and acknowledge a duty of care to a range of stakeholders. Based on the traditional view of the industry or a limited stakeholder view of the industry, UK tourism board should focus on using corporate social responsibility to increase positive stakeholder benefits whiles eradicating the negative effects of its action. It has been reported that non-governmental organisations have been donating millions to help in various environmental projects. These projects are centered on environmental protection, climate change, and the promotion of renewable energies.

Also, VisitBritain should introduce structures that will engage and communicate with UK tourism industry and stakeholders. This will help to provide a coordinated approach to drive forward the implementation of the Strategic Framework for UK Tourism. The structure will give the industry the chance to share innovative and intelligence delivery as well as addressing key issues and challenges affecting the tourism industry. Notwithstanding that, it will acts as a key mechanism for VisitBritain to communicate with the industry and connect effectively with the emerging destinatioons.

Strategic Recommendations

To overcome the challenges and maximize the benefits of the industry, the industry in collaboration with UK Government should:

Tax elimination

There should be tax free tourists and ensure that there is no imposition of tax on any food and accommodation. The government should solicit for funds from private enterprises to support the tourism industry. This will help to eradicate if not reduce tax rate to its minimum.

Reduction of tourist visa fee to compete with Schengen visa

Thus the amount of money taken from tourists as they apply for tourist visa should be reduced to compete with the other competitive countries. Also the UK government should publish a national travel and tourism strategy which will aim at reducing the tourist visa fee and process, border control and issues of image. This will maximize tourism visitation, spend and length of stay.

Expansion of local and international sales teams

Use the corporate governance strategy to keep the industry accountable.

This will help to avoid any sorts of bribery and corruption in the tourism industry. Have a tourism industry which provides affordable quality, which is open to all and which makes the best use of Britain’s resources.

Summary

To sum up everything, Marshal (2012) opine that “the challenges facing the tourism industry are complex and numerous. However, the two key among all the challenges are; Tax on accommodation and food and how to create a competitive, world-class tourism industry in Britain.

Frankly speaking, “addressing these challenges will require a high level of coordination and cooperation to marshal resources more effectively. Fiscal pressures and competing priorities among all tourism partners and tourism stakeholders will require new and innovative partnership arrangements to respond to growing competition and global opportunities (Marshal, 2012)”.

Conclusion

This report has provided a product and market development strategy for the UK tourism industry. The background history of UK and the overview of the scope are revealed in this study. It also outlined the vision, mission and strategic objectives of the study. Situational analysis of the industry based on the local market, value of tourism and UK’s position in the international market has been scholarly presented. The report revealed a summary of the key findings of strategic marketing audit of the UK tourism sector. The findings of the report are used to develop a strategy for increasing the economic benefits of tourism to UK.

The strategy for overcoming the challenges in order to increase the number of individuals visiting UK for tourism is disclosed in this report. The report concludes by making strategic recommendations for areas of growth in tourism activities in UK, development of products and resources needed to ensure viability. More so, significant barriers to implementing those recommendations are identified throughout the report to address the concerns of stakeholders of the industry.

To amass everything, it is the objective of the Ministry of Tourism and the Government of UK to create the environment where the industry would “do not only teach people to smile but give them a reason to smile”. The Government should note the above recommendations a point and legislate new tourism policy ( Hon. Harold Lovel, 2012).

Annotated Bibliography
Vision, mission, aims and objectives

In order for an organization to have clear strategic directions, it must first formulate clear vision, mission, aims and objectives. The following books were helpful in discussing the purpose of the vision, mission, aims and objectives;

Dale, C. (2012), “Strategic Management for Tourism”

Senior Lecturer in Tourism

University of Wolverhampton

Evans, N. C. D. and Stonehouse, G (2003)

“Strategic Management for Travel and Tourism”. Oxford

Butterworth-Heinemann, 15-20

Understanding Strategic Position and Tourism

Strategy and Tourism have myriad of definitions from a different perspective. It is therefore important to open this report with a brief explanation on strategic positioning and tourism. This will help to facilitate better understanding of strategy formulation and implementation. The following books, journals and articles were helpful in capturing the main conceptualization of strategy and tourism.

Capon, C. (2008), “Understanding Strategic Management”,

Prentice Hall: Hemel Hempstead.

Lovelock, C. H. (1984). “Services Marketing”.

Englewood Cliffs, NJ: Prentice-Hall.

Lovelock, C. H. (1991). “Services Marketing”. 2nd ed., Prentice- Hall

Johnson, G. et al. (2008), “Exploring Corporate Strategy”,

Prentice Hall: Hemel Hempstead.

Porter, M.E., (1980),

“Competitive Strategy: Techniques for analysing industries and competitors”

New York: The Free Press

Tribe, J, (2010), “Strategy for Tourism”, Goodfellow Publishers, Oxford

Overview of Tourism Industry in UK

In order to get broad and comprehensive review of tourism in UK, there was the need to research into several books, journals and articles which helpful to this report. As a matter of fact, the following books and journals were able to give accurate information that the researcher was looking for.

Butler, R.W. (2011): ” Contemporary Tourism Reviews: Tourism Life Cycle”

Strathclyde Business School, Universiity of Strathclyde

Goodfellow Publishers Ltd., Woodeaton, Oxford, OX3 9TJ

Website- wwww.goodfellowpublishers.com

Shaw, S. (2012): International Hospitality Management Program http://www.sprottshaw.com/programs/tourism-hospitality/international-hospitality-management/

Accessed on December 12, 2012

The Economic Importance of Tourism: UK Tourism Satellite .., http://www.ons.gov.uk/ons/rel/tourism/tourism-satellite-account/2009—the-economic-importance-of-tourism/rep-2009tsa.html (accessed December 12, 2012).

Tribe, J. (2005), “The Economics of Recreation, Leisure and Tourism”, Butterworth Heinemann, Oxford.

UNWTO, EUROSTAT, OECD (2008), “Tourism Satellite Account: Recommended Methodological Framework (TSA:RMF)”, Madrid, Luxembourg, Paris.

UNWTO, EUROSTAT, OECD (2008), “International Recommendations for Tourism Statistics 2008(IRTS 2008)”, New York, Madrid. United Nations, Statistical Office of the European Communities, Organisation for Economic Co-operation and Development and World Tourism Organization (2008).

VisitBritain Consultation Document (2012)

“Delivering A Golden Legacy: A Grow Strategy for Inbound Tourism to Britain from 2012 to 2020”.

Website- www.visitbritain.org

Key Issues and Challenges

This part of the report is very sensitive to the study; therefore there was the need to get books which would give accurate information about the benefits and challenges confronting the tourism industry in UK. The research made reference from the following books and websites;

BIS Economic Paper (2012): “Industrial Strategy: UK Analysis”

Department for Business Innovative & Skills, No. 18

http://www.bis.gov.uk

“Business Management and Strategies”,

http://teeanthony.blogspot.com/ (accessed December 12, 2012).

Marshall, C. (2012), “Challenges facing the Tourism Industry in Antiqua & Barbuda”: Ministry of Tourism and Civil Aviation.

Office of National Statistics (2012): “The Economic Importance of Tourism: UK Tourism Satellite Account 2009”

VisitBritain Consultation Document (2012)

“Delivering A Golden Legacy: A Grow Strategy for Inbound Tourism to Britain from 2012 to 2020”.

Website- www.visitbritain.org

TOMORROW’S TOURISM – Home – Ask, common questions asked of … (n.d.). Retrieved from http://www.eastriding.gov.uk/corp-tourism/docs/TomorrowsTourism.pdf

Strategic Options

This section of the report focuses on the Marketing strategy and action plan. There was the need to get frameworks and models to support the work. Therefore made reference from the following books below, because these books give accurate explanations to the various strategic options and marketing models;

Buhalis, D., 1999a, Limits of tourism development in peripheral destinations: problems and challenges, Tourism Management, Vol.20(2), pp.183-185.

Cooper, C. et al., (1998), Tourism: Principles and Practices, 2nd ed, Addison Wesley Longman, England.

Digital Startup and Campaign Marketing station in Hyderabad .., http://browsemasters.com/ (accessed December 12, 2012).

French Luxury Vacations, http://frenchluxuryvacations.com/ (accessed December 12, 2012).

William, J. (2002): “H. Igor Ansoff, 83; education drew worldwide acclaim”- San Diego Union-Tribune. Retrieved (8/12/2012

http://www.mindtools.com/subscribe.htm.

Beatty, C. et al., (June, 2010): “The Seaside Tourism Industry in England and Wales”: Employment, Economic Output, Location and Trend. Centre for Regional Economic and Social Research

Sheffield Hallam University

Positioning the Destination Product – Bournemouth University ..http://eprints.bournemouth.ac.uk/15749/1/Positioning_the_Destination_Product_-_C an_Regional_Tourist_Boards_Learn_from_Private_Sector_Practice_(for_upload to_BURO).pdf (accessed December 12, 2012).

Porter M.E. (1996), “What is Strategy?”| Reflections, http://jensgulich.wordpress.com/2010/10/22/ / (accessed December 12, 2012).

Pima Community College : As with other impacts: Directories, http://ecc.pima.edu/~tourism/Negative%20Impact%20of%20Tourism.htm (accessed December 12, 2012)

Tugberk’s Blog – TugberkUgurlu.Com,

http://www.tugberkugurlu.com/?page=24 (accessed December 12, 2012

What is the difference between the United Kingdom, Great ..?

http://geography.about.com/library/faq/blqzuk.htm (accessed December 12, 2012).

Appendices
appendix 1 (KEY ISSUES & FINDINGS)
Increase in Price

A research conducted by San Francisco State University indicated that, the prices for local goods and services have increased by 8% as a result of tourism development. What it means is that, tourism development has tremendously increased in both building costs and land values. This is because the rich are now using the lands to build and engage in real estate for tourism purpose. This has resulted in difficulty for the indigenous people to meet the basic needs to purchase lands for their own use.

Economic Dependence

According to Marshall (2012), “over-reliance on tourism, especially mass tourism carries significant risks to tourism dependent economies. He argues that economic recession and the impacts of natural calamities such as tropical storms and hurricanes as well as changing tourism patterns can have a devastating effect on the local tourism sector.

Reduction of UK Government fund for tourism industry

In addition, the reduction of UK Government funding on tourism industry is a factor. Thus, the subsidy given by the UK government as a supporting aid to the tourism industry has dropped by ?48.0m to ?35.9m, which is 25% decrease in 2011. This has

The Maldives, known for its high end world class resorts, popular among the rich and famous is situated in South West of Sri Lanka on the Equator comprises of 1,190 tropical islands stretching over an area of 90,000 sq Km. With an average of 30 degrees Celsius, underwater coral gardens, white sandy beaches, turquoise blue lagoons, crystal clear water and 664 Km of coastline; the Maldives offers unimaginable natural beauty and remote tropical island experience to its visitors. An array of festivities and activities can be found on the islands including superb fishing, world class surf, shopping, diving and snorkelling, whale and dolphin watching and much more.

There are 97 luxury resorts established in the Maldives currently under operation and a further 30 resorts are been developed in addition to 145 safari vessels and city hotels already operating in the country. One resort one island is the policy that has been maintained in the Maldives. Each of them is self sustained providing maximum privacy to the guest.

Tourism is the main industry in the Maldives and contributes about 32% to its GDP – a figure which could easily rise to 70% if indirect sectors relating to tourism are taken into account. Tourism generates a 5th of Maldives total employment and 70% of its foreign exchange earnings. It also accounts for 30% of the Government’s revenue. Over the last five years tourist arrivals to the Maldives have been increasing constantly except for 2005 as the region was severely devastated by the tsunami. 2007 saw a record year for Maldives Tourism with a 12.3% rise (3.8% higher then expected), a significant achievement signalling the industry was coping well with the long lasting impacts of the tsunami.

However over the last 2 years the financial crisis in Europe and the rest of the world affected the Maldivian tourism industry tremendously recording a 4 % drop in total tourist arrival.

The year 2010 looked more optimistic for the Maldivian tourism industry as signs of economies rebounding in the form of increased tourist arrival. Maldives recorded a 21 % increase in arrivals and an 8 % increase in the European segment.

It has been identified that Maldives tourism will be facing many challenges especially from man made crises such as the economic recessions and the environment degradation.

Recessions can lead to a fall in disposable income of consumers resulting in a decrease in consumption of luxury goods such as holidays. When consumers becomes increasingly pessimistic about their future in terms of reduced job security and increased financial obligations they minimizes spending dramatically worsening the economic situation further.

the environmental impact of tourism expansion can threaten the very basic experience that is being sold , the remote tropical islands with coral gardens and a vast variety of species occupying them . Activities such as snorkeling, scuba diving and reef walking ,water sports activities where power boats are used extensively can threaten the very coral reef that sustain not only an ecosystem of multi species but the barrier to erosive impacts of waves on the resort islands. Without such natural barrier the beautiful white sandy beaches the Maldives is known for will fade away replacing it with a man made barrier changing the very image of the islands.

To meet the challenges face by the Maldives tourism industry, marketers are devising strategies enhancing the image and develop products incorporating the changing needs, values and consumer behaviour while simultaneously sustaining the tourism industry.

Table of Contents

Executive summary 1

Table of Contents 3

1.0Introduction 4

1.1 Limitations 4

2.0 Over view of the industry 5

2.1 Product 5

2.2 Pricing 6

2.3 Place 6

2.4 Promotion 6

2.5 Distribution 6

2.6 Competition 7

3.0 Key findings 8

3.1 Swot analysis 8

3.2 Current analysis of tourist arrivals 9

3.3 Other findings 9

4.0 Challenges in the industry 11

4.1 Impact of global economic recession 11

4.2 Impact of environmental degradation 12

5.0 Proposals to meet the challenges. 14

6.0 Conclusion 16

REFERENCES 17

1.0Introduction

This report presents a critical review of the tourism industry of the Maldives and an evaluation of the challenges it is facing .Discussions on how marketers are responding has been presented as well.

The effects of the global financial crisis which hit the Europe and the rest of the world on the Maldivian tourism industry will be evaluated. The effects on Maldives tourism from the financial crisis in Europe, which accounted to more than 70 % of the total tourist arrival in the country in the past, will be also evaluated. Factors in the external environment will be included in the analysis.

The report will focus on finding challenges faced by the tourism industry and evaluate the responses by the marketers in responding to these challenges.

Brief initiatives by companies within the sector to offset these issues will also be presented.

1.1 Limitations

The Studies limited to operators of the resorts and other tourists vessels. Due to lack of information on the 2010 statistics much emphasis is not put on to describe the extent of recovery of the economy as a result of the increase in tourist arrivals as only one month statistics were available during the time of this research. Furthermore the study considered only the man made crisis in deriving challenges to the industry.

2.0 Over view of the industry

The Maldives, situated in South West of Sri Lanka on the Equator comprises of 1,190 tropical islands stretching over an area of 90,000 sq Km. With an average of 30 degrees Celsius, underwater coral gardens, white sandy beaches, turquoise blue lagoons, crystal clear water and 664 Km of coastline; the Maldives offers unimaginable natural beauty and remote tropical island experience to its visitors.

Maldives has a rich and diverse culture with influences from African, Asian, Indian and British .An array of festivities and activities can be found on the islands including superb fishing, world class surf, shopping, diving and snorkelling, whale and dolphin watching and much more.

Over the last five years tourist arrivals to the Maldives have been increasing constantly except for 2005 as the region was severely devastated by the tsunami. 2007 saw a record year for Maldives Tourism with a 12.3% rise (3.8% higher then expected), a significant achievement signalling the industry was coping well with the long lasting impacts of the tsunami.

Tourism is the main industry in the Maldives and contributes about 32% to its GDP – a figure which could easily rise to 70% if indirect sectors relating to tourism are taken into account. Tourism generates a 5th of Maldives total employment and 70% of its foreign exchange earnings. It also accounts for 30% of the Government’s revenue. (W.T.O. 2010)

2.1 Product

Maldives holiday provides the following products to the tourists Honeymoon . Business, family, Spa retreat, wedding Ceremonies, Diving, Cruising and Surfing.(Maldives traveller website, 2010) . Recent tourist opinion survey showed that the main reasons for tourists coming to the Maldives were relaxation (55%); honeymoon (28%) and diving (11%).

2.2 Pricing

The Maldives is known for its high end world class resorts and, which offer tropical privacy in the modern hectic world, popular among the rich and famous. This privacy and seclusion of many Maldivian resorts is what makes them unique. This is what differentiates the Maldives from its competitors, and over the last few years many new exclusive resorts have sprung up. These high end resorts, and the tourism sector as a whole, are an important part of the Maldivian economy: in 2008, the sector contributed 27.2% of the Maldivian GDP. (MMA 2010)

2.3 Place

There are 97 luxury resorts established in the Maldives currently under operation and a further 30 resorts are been developed in addition to 145 safari vessels and city hotels already operating in the country. One resort one island is the policy that has been maintained in the Maldives. Each of them is self sustained providing maximum privacy to the guest. (Tourism ministry website 2010)

2.4 Promotion

Destination Maldives promotion is actively taken up by the government .activities are carried out by the government organisation called Maldives tourism promotion board. They initiate, lead, facilitate and execute the planned activities .Maldives is promoted mainly in UK, Germany, and Italy.

2.5 Distribution

The Maldivian travel and tourism industry is largely controlled by the private sector. The central government acts as a regulatory body in the industry. The key stake holders in the industry are the local tour operators, tour operators abroad, local airlines, international airlines, tour operators. Among them exists partnerships and strategic alliances together contributing to the quality service being provided.

2.6 Competition

According to Riza (2010) every country is a competitor in the tourism industry. However in terms comparable products to the Maldives the Bahamas; Barbados; Bermuda; the Cayman Islands; the Dominican Republic; Fiji; Guadeloupe; Jamaica; Martinique; Mauritius; New Caledonia; Reunion; the Seychelles; St Lucia; and Trinidad and Tobago can be considered as competitors they are tropical island nations which offers tourists tropical island experience.these destinations do not have an advantage over the Maldives in terms of distance to the main source market of markets.(Riza 2010)

3.0 Key findings
3.1 Swot analysis
Strengths

Unique model of island development

Natural resource base: tropical atolls and islands

Excellent resort facilities with ocean based activities (coral beaches, diving, and fishing)

Enviable brand image in marketplace

30-years of progressive growth

Liberal investment climate

Entrepreneurial drive

Weaknesses

Reliance on foreign personnel and Maldivians’ coolness (reluctance) to working in tourism

Long-haul destination for current market segments

Dependence on imports of capital and operating goods and products

Inter-island transport

Absence of forward linkages and poor integration of local inputs

Destination marketing

Poor information base for mature market

Opportunities

Productive public-private dialog and action planning-by including all stakeholders, including tour operators, in future planning

Product differentiation and segmentation: ecotourism, island themes

New markets (China, India , Russia)

Human resource development

Supply chains for local products, including coir rope, thatch, grass mats, fishing, fruit and vegetable production

Enhanced SME and microenterprise development

Improve government resource mobilization/use framework for tourism

Threats

Monochromatic product line

Losing traditional market base

Progressive commercialization

Environmental degradation and weak coastal zone management (e.g., sanitation)

Shallow financial sector and lack of savings and investment vehicles

Limited prospects for emerging entrepreneurs to enter the field

Source: (World Bank Report 2006)

3.2 Current analysis of tourist arrivals

Europe is the biggest market for Maldives tourism industry accounting for 73.3%, 72.8% and 70.5% in 2007, 2008 and 2009 respectively. The European share of the total tourist arrival has declined by 0.05 % in 2008 and 2.3% in 2009.Despite the a drop in overall share of arrivals , European sector saw an increment by 0.4 % .This increment is due to an increase in tourist arrivals from Russia and Ukraine by 53.8 % and 52.3% respectively. United Kingdom, Italy and Germany were the biggest markets for the Maldivian tourism industry accounting for 63.5 %, 58.3%, and 57.2% in 2007, 2008 and 2009 respectively. This is a continuous drop from 7.9 % to 8.8 % in 2008 and 2009 respectively. (Tourism ministry website, 2010)

Total tourist arrivals to the country dropped by 4 % despite an increase in Asian sector by 6.9 % especially china which registered the highest growth rate in 2009 at 46.1 % and overall share of the Asian sector by 39 %. china over took Japan which was the largest Asian market for Maldives shared 23.6 % of total Asian sector registering a drop in tourist arrival by 7.1 % and 4.1 % in 2008 and 2009 respectively.

However in 2010, total tourist arrivals increased by 21 % registering an 8 % growth in the European sector.

3.3 Other findings

The Only international airport in the country is Male international airport on Hulhule Island which is a 10-minute ferry ride away from the capital Male. It has a runway of 3,200 meters for the time being adequate however research suggests that at peak times the terminal facilities are stretched beyond capacity. Currently 30 carriers connect Maldives to the rest of the world. Recently the domestic airport in Gan was upgraded to an international airport status to cater for the southern resort developments .however it is yet to be run as an international airport.

There were plans for six regional airports to improve commuting between the atolls and the capital where Access to all islands is tightly controlled through transfers to resorts by speedboats owned by the resorts themselves or under contract with the two seaplane taxi services. For domestic flights,

There are two sea-taxi services (Trans Maldivian and Maldives Air Taxi), with a total of 31 Twin Otters and an airline serving the country’s network of airports (Island Airways). (World Bank report, 2006)

4.0 Challenges in the industry
4.1 Impact of global economic recession

Global economic recessions can have a profound impact on the tourism industry in the form of decrease in tourist arrival receipts.

Recessions can lead to a fall in disposable income of consumers resulting in a decrease in consumption of luxury goods such as holidays. When consumers becomes increasingly pessimistic about their future in terms of reduced job security and increased financial obligations they minimize their spending dramatically worsening the economic situation further.(Shina, 2010).

Furthermore loss in business confidence leads to cost cutting measures such as employee reduction and price increment which ultimately makes the destination reach and price of the holiday package more expensive.

Recessions can be caused by a hike in global fuel prices which makes cost of production expensive .especially the airline sector which is a product of tourism will be affected by the fuel prices. The increase in fuel price in other words the marginal costs are reflected in the fares or covered by reducing the discounted seats. (Shina, 2010)

It is clearly evident from the recent financial crisis which stemmed from United States that derived the economies of the world in to recession affects the tourism industry negatively. In the case of Spain, a sharp decline in consumer expenditure and surged in unemployment with a forecast in further increment in 2010 devastated the economy making it one of the worst affected countries in Europe. This was as a result of the government’s slow response to the crisis and problems in the political front in implementation of the strategies. (Sebastian 2009)

4.2 Impact of environmental degradation

According to McKercher(1993) tourism is a resource based industry which describes it as a voracious consumer of resources.

The construction of resorts located in areas with unique and fragile ecosystems can cause a permanent restructuring of environments and sometimes destroying the original ecosystems. The provision of infrastructure can extend the environmental impacts of tourist developments far behind the development site. (McKercher1993).

Despite numerous economic benefits from tourism the environmental impact in its expansion can threaten the very basic experience that is being sold , the remote tropical islands with coral gardens and a vast variety of species occupying them . Activities such as snorkeling, scuba diving and reef walking ,water sports activities where power boats are used extensively can threaten the very coral reef that sustain not only an ecosystem of multi species but the barrier to erosive impacts of waves on the resort islands. Without such natural barrier the beautiful white sandy beaches the Maldives is known for will fade away a man made barrier will have to be built changing the very image of the islands.

According to the Prior (1995) significant damage is caused by the leisure scuba diving to the coral reefs of Egyptian resort Sharm el Sheikh on the red sea. Similarly McKercher (1993) reports that damage of reef by scuba divers were reported in USA, Australia and the Caribbean.

However the demand from the tourism industry and the economic benefits from it had pressured the government to meet the infrastructure requirements such as extension of airports by land reclamation through dredging lagoons and leasing islands for resort developments in new areas which has no human activity etc. Despite these pressures in order to mitigate the damage government imposed strict regulations and guidelines for resort construction and operation. Government was particularly concerned with the carrying capacity of the islands. Measures to limit the number of people in a resort island below the environmental threshold such as limiting the maximum built-up area to 20% of the total land area were taken. (Ministry of tourism website, 2010)

Further more resorts are required to employ latest technologies to mitigate the damage to the environment such as having incinerators, bottle crushes and compactors and sewerage treatment plants.

5.0 Proposals to meet the challenges.

To meet the challenges face by the Maldives tourism industry, marketers are devising strategies enhancing the image and develop products incorporating the changing needs, values and consumer behaviour while simultaneously sustaining the tourism industry.

In partnership with the Government of the Maldives, operators are offering services to tourists visiting some resorts on complimentary basis to attract and increase the tourist arrivals to the country. (World Tourism organisation website 2010) furthermore strategic alliances have been made in order to increase access to the destination. British airways direct flights connecting Europe, and Bangkok airways direct flights connecting south East Asia to the Maldives in addition to the already established airlines.

Focus on other emerging destinations such as china, India and Russia to reduce the dependency of Maldivian tourism on western European segments. Maldives is undertaking extensive promotional activities in china and developing strategic partnerships in Russian and India to increase tourist arrivals.

Turning Maldives in to a green economy and promoting green tourism is another response to the challenges. Maldivian government had already initiated programs such as going carbon neutral by 2020 to re invent the destination image of Maldives. Strategic alliances with large multinational companies had already been establish one such project is providing safe and renewable energy for different parts of the country through wind farm which will be supplied to inhabited islands as well as nearby resorts. (The guardian website 2010)This is particularly optimistic for tourist resorts as the operation costs decreases since all the resorts in Maldives are self sufficient and produce their own energy by diesel fuelled engines.

Companies such as six senses hotels UK had initiated projects in its Maldives properties to become carbon neutral and promote itself as a green resort. Some of the initiatives included utilizing timber from sustainably managed and certified sources ,using natural ventilation as much as possible ,sourcing materials locally ,installing energy-saving light bulbs, encouraging the use of bicycles and battery-operated vehicles and reducing ‘food miles’ by growing fresh produce their two organic gardens. The resort implemented Water-saving measures as powering a reverse-osmosis desalination plant to convert seawater into freshwater for the resort’s operations and both guest and host needs was energy intensive. Measure such as (Six Senses Hotels website 2010)

Giving guests the option to not have their bed linen and towels washed each day

All swimming pools use filtered seawater

The newly renovated guest rooms as well as other areas are connected to a grey-water recycling system; the filtered water is used for the irrigation of the organic gardens

The island’s groundwater is used for staff sanitation

Rainwater is collected and channeled into the reverse-osmosis plant to make the desalination process more efficient

Native plant species only are grown in the jungle areas that do not require additional irrigation

MTDC is a key player in resort development and operation jointly owned by the government and public .some of the marketing initiatives by them to cope with challenges include implementation of a two faceted marketing strategy – one, to attract investment and management partners for the development and management of the resorts, and two, to market the properties under operations or approaching operations to tour operators and potential tourists.

MTDC participated in the leading international travel and tourism fairs. In 2009 MTDC took part in the two leading international tourism trade shows; the ITB International Tourism Fair held in Berlin, and the World Travel Market exhibition held in England. MTDC also participated in the BIT 2009 fair held in Milan. (MTDC Annual Report 2009)

6.0 Conclusion

It is evident that the Maldivian tourism industry largely depends on the tourists from the European segment. However the financial crisis in Europe that leads to a drop in tourist arrival n this segment leads to a shrink of the economy. This gave the tourism industry a new perspective as a slight change in the European travel consumer behavior can lead to slow growth in the economy which shared more than 70 % tourist arrival to the country. Therefore in order to counter the challenge focus was put on the Asian segment especially china and India the new emerging economic powers as well as Russia. This lead to another challenge, increase in tourist arrival to the country straining the natural resources, leading to pollution and environmental damage.

Therefore marketers had to counter these challenges by catering products to accommodate the changing consumer behaviors in the west as well as in sustaining the tourism industry by protecting the environmental by introducing green tourism.

According to option pricing theory, investment project often added value from it associated real options. Hong Kong Disneyland theme parks as an investment project has in enhancing its upside potential as well as reducing its downside risk in different economic conditions. In the early stage, due to the changing of environment and seasonal fluctuations, it result the development of Hong Kong Disneyland’s cash flows into irregular pattern. However, after the project has been switch, defer and expand, the value of the development of Hong Kong Disneyland is enhanced. With this, the Walt Disney had added attractions and other theme parks to the original theme park and turned Disney World into a vacation resort. In future, if the Hong Kong Disneyland project furthers their strategic options, the value of Hong Kong Disneyland will definitely increase and becomes attractive. The government projected that the theme park will attract a huge number of foreign and local attendees and

Study 2:

Since the establishment of Hong Kong Disneyland project, Hong Kong Special Administrative Region (HKSAR) government has been successfully established its own legitimacy. However, Hong Kong people rise up their doubt and even challenged the government because of government go through democratic election producer underneath. But, with the launched of Hong Kong Disneyland project, it grows Hong Kong people shown their confidence towards their government. After the success of Hong Kong Disneyland, it makes the politic of Hong Kong become stable compare to the time of colonialism, and thus, it attract more visitors who was stay nearby visit to Hong Kong. Hong Kong Disneyland has been made use by HKSAR to re-nationalize and decolonize Hong Kong society and to remodeling Hong Kong as a spectacular tourist magnet instead of a citizen-based participatory community simultaneously. In addition, Hong Kong Disneyland consolidates Hong Kong’s reputation as a shopping paradise for tourists.

Study 3:

Base on the study, compare with the other transnational corporations, Hong Kong Disneyland intentionally localizes the Hong Kong Disneyland theme park by keeping it completely. Hong Kong Disneyland didn’t modify any version but just keep an original version of American fantasy and imagination to it audiences. Although visitors who are come from mainland Chinese are not familiar with the characters of Disneyland, but Hong Kong Disneyland theme park assumes that those visitors can fully know the plot and legends of Disney animations; if they do not understand that, sure one day they will. Moreover, there is no obvious localization strategy buy just a segmentation of Mainland Chinese, English speaking visitors and Hong Kong. However, what the visitors’ experiences is difference, this is because this is a free, individualist American atmosphere that intensely contrasts with the repressive state in which they reside.

Study 4:

Base on the study, visitors are satisfied towards Hong Kong Disneyland theme park service quality consists of appearance, atmosphere and facilities, but visitors are disappointed with their staff performance in factors of “responsiveness and access”, “assurance” and “empathy. Hong Kong Disneyland is top five popular attractions for Hong Kong visitors. Therefore, it should not overpass the Hong Kong tourism industry. In order to build the good image and good reputation for Hong Kong, Hong Kong Disneyland theme park should provide high quality service to meet the demand of the visitors. Therefore, it can enhance the competitiveness of Hong Kong as a tourism destination. Hong Kong Disneyland Company should provide relevant training for their staff, it is because staffs play an important role during the whole service delivery process, and therefore to increase the customer satisfaction level in meeting their desires.

Study 5:

Base on the study, the case of Hong Kong’s tourism reflects and reinforces the meaning through how its source and symbol of identity has an importance for people and places during the period of transition when configurations and meanings are subject to interpretation and change. During the entire process and outcome, government plays an important role to influence over it. In addition, all of this identity, heritage and tourism will only become apparent in the expansion in Hong Kong history. From the perspective of marketing, the unique identity of Hong Kong is a way which can attract visitors to visit and also to compete in such competitive tourism industry. Furthermore, such homogenized place can sell as a product. If Hong Kong loses its unique identity, it will become danger in Hong Kong tourism industry because it wills loss of tourist arrival.

Study 6:

The meaning of globalization is the interaction between the global and the local. Base on the study, even as giant as the Disneyland, it’s also have to adapt to the local preferences. Therefore, it can help to generate maximum profit and stay competitive to compete with other such as Disneyland Paris. Disneyland Paris has shown the globalization work. The Disneyland of Paris have make this successful with (1) cutting the price, (2) turning shows and setting into French style, (3) change of food menus and eating habits and (4) change of employee customs and labor policies. Besides that, Disneyland Paris has generated a lot of profits. Walt Disneyland Company not only had accommodated to Europe’s local preferences, but it also applied to Hong Kong after Hong Kong Disneyland was opened in 2005.

Study 7:

Base on the study, this journal discussed the economic and social problem of Hong Kong since 1997. Hong Kong’s economic become even worse when the economic downturn, achievements and progress in social development for Hong Kong people. Therefore, the amount of unemployment is increase. The unemployment rate of Hong Kong is highest if compared to other countries such as Malaysia, Singapore, South Korea and Thailand. Therefore, this is the time for Hong Kong to learn from it neighboring stated which can help Hong Kong people sustain during the financial crisis.

Study 8:

Base on the study, it investigates the relationship of competition and cooperation between the theme park and tour operators in the context of Hong Kong. Since last time, the tourism industry has significantly raising in the world with it fastest movement development, the broadest prospects, and the largest scale. In addition, Hong Kong Disneyland’s stakeholders using different operate system to resolve their different business, not only by individual enterprises but also tourism supply chain. Theme parks are always the attractions point in tourism supply chain; for example, Hong Kong Disneyland is a key milestone in the development of Hong Kong’s economic. With the direct purchase mode and ticket exchange voucher mode strategic, theme park has been found out is the market leader and the tour operator is the follower. Despite the fact, both also bring profit to its own.

Study 9:

Hong Kong’s tourist is one of the most prominent destinations among Asia country. In addition, tourism of Hong Kong also is the main economic pillars of Hong Kong, abreast with financial, professional services and financial. There are competitive for visitors throughout the region, therefore, Hong Kong Special Administrative region (SAR) government to promote the city as a top-class destination for leisure by turning Hong Kong into “Asia’s World City”. Government has made a lot of efforts such as to provide additional infrastructure, improve the facilities, and increase the service quality and so on. With the success of all these efforts, even in the future of Hong Kong tourism industry, it really depends on the people who are employed in this industry. Therefore, higher education in hospitality and tourism education play an important role in preparing employees and executives for the tourism industry in Hong Kong and worldwide.

Study 10:

Base on the study, the world today can be characterized by the reality of business globalization and huge competition in all industrial sectors. The challenges are to compete favorably in the global market place if it exist today and as it grow tomorrow. Therefore, companies and individuals have to manage and adapt to the changing conditions and to cope with these conditions. The creative and regenerative value of metaphors is revealed in this study, which appear to bring serious effect for Disney’s theme park in Hong Kong and Paris. The educational metaphors for Disney such as cultural chernobly, political football, organ transplant and supermarket, and stakeholders, with all of these metaphors, Disney can identify these through a strategic surveillance process, and therefore, important for Disney to embarks on Hong Kong and Japan Disneyland.

Study 11:

Another major attractiveness theme park and also one of the key competitors of Hong Kong Disneyland is Ocean Park Hong Kong, which was officially opened on January 10, 1977. The number of visitors of Ocean Park Hong Kong has been increasing since the introduction of an “individual visit scheme” for mainland Chinese tourists. Since 2004, after the “Christmas sensation event” held, it drew more than 2 million visitors dramatically in the following years. But the problem of queuing has become an important issue for the park management. Base on the study, Western tourists are more willing to wait than Chinese tourists. Ocean Park should take steps to improve the waiting environment and provide better waiting experience for visitors. Therefore, park management by reducing actual waiting times to help increase the satisfaction levels of tourists.

Study 12:

Tokyo Disneyland was opened in April 1983, is another Disneyland located in Japan Tokyo, which is a licensed version of the American theme park and was re-made in Japan. Tokyo Disneyland was the biggest workplace among Japan’s diversionary outings since 1996, and also the most successful theme park in the world. Base on the study, it focuses on the organizational culture of Tokyo Disneyland. The success of it was due to the cultural fit between the Disney Way and the strong Japanese organizational culture developed in the context of regular workers and also the appropriation of the Disney Way followed the movement of the Japanese labor market in the 80’s. Tokyo Disneyland’s hybridization of organizational culture provides broader processes of globalization and a special interflow of global and local, America and Japan.

Study 13:

Tourism is considered an “engine of growth” in developed countries. In addition, also closely link to the development and planning. Base on the study, since the day Disneyland Paris opened, it gave French society positive returns for its public investment, although the company was registering losses. The French mode of social regulation helped to anchor the major capital of Disneyland projected generated, therefore, its economic benefits can directly translated into social benefits. With the incorporation of French mode social regulation, its help to rescheduled the economic crisis and stabilized future.

Study 14:

From the past few decades, the global theme park industry has fairly grown. There are few factors such as the volume and quality of advertising campaigns and marketing, guest experiences and development of new product, as well as external variables, in which the parks have to overmaster like competitors” strategies, economic condition, government regulations, weather, gasoline prices and so on, all of these are the factors which will affect the continuous growth of the theme park. Theme park industry has produced a broad circle of political, social and economic influences few key sectors. It will continue have an impact on society and will adjust their entertainment to changing cultural, social, political thought. Moreover, will continue to grow and impact a variety of demographic and socio-economic sections of the community in which they operate in destination development and sustainability.

Study 15:

Since 1997, Hong Kong reversion to China, Hong Kong placed an important emphasis on define its international visibility as a Special Administrative Region (SAR), a gateway to the Mainland in terms of finance, investment, trade, transport, tourism and communications. Therefore, to claim it image as “Asia’s world city”. This led to the Brand Hong Kong’s mission with to provide a better focus to the international promotion of Hong Kong. But, if this “progressive development” is still persisting, then the Hong Kong cultural will come to the last generation. However, few campaign have shown that the Hong Kong cultural did not come to its last generation due to the Hong Kong residents are not willing to surrender their history to the mercenary exploits of the administration.

Study 16:

From the past to this new millennium, the Asia Pacific travel and tourism industry has gone through some hard time in its modern incarnation. Base on the study, there are few dominant forces which may influence over the Asia Pacific travel and tourism industry in future. First dominant forces are the old, new and evolving inbound and outbound market. As growth and prosperity consolidate in Asia Pacific, the region will increasingly host international mega-attractions and mega-events, such as Disneyland Hong Kong. Upon the open of Hong Kong Disneyland, the park already makes an immediate difference to Hong Kong Special Administrative Region’s economy. Not only created thousands of job opportunities during the construction phase but also the opening of the Disneyland. Moreover, Hong Kong Disneyland theme park is estimated will be a huge draws for families across Asia.

Study 17:

As being the hub of many Asian Airlines, Hong Kong has become one of the most popular travel destinations in Asia. It drawn the whole world attention to Hong Kong about it future on the other after Hong Kong reversion to China since 1997. But before four months before the handover, the amount of tourist arrivals to Hong Kong began to decline. The economic turmoil in Asia has a tremendous impact on the tourism industry including Hong Kong. New government faced the issue of economic problem. During October 23, 1997, Hong Kong stock market crashed, after interest rates had been raised to protect Hong Kong dollar from currency problem. Because of the currency problem, many visitors have been attracting away from Hong Kong to other country. Base on the study, the new political which represent Hong Kong bring more challenges than opportunity. People in tourism industry are hope that Hong Kong’s tourism industry will recover as soon as the Asian economy recovers, but actually are not. Therefore, this is a long term growth or a struggle for Hong Kong tourism industry.

Study 18:

Forms of tourism that are highly popular in the Asia pacific region include urban tourism in major cities including Hong Kong. In all of these destinations, expanding meetings, incentives, conventions and exhibition markets can build up the growth, which from business travel markets and other leisure tourists for the broad range of cultural attractions that metropolitan cities can provide. Since Hong Kong handover to China, fears of repression and the end of democracy have led to the reducing amount of tourists’ number. The current condition of recession is likely exacerbated and reports that Hong Kong have been replace Tokyo as the most expensive city in the world. The past year has been one of the tremendous changes affecting tourism in Asia Pacific region. Therefore, changes are inevitable in many aspects of Asia Pacific region.

Study 19:

Base on the study, Disney have successful adapt the globalization theory to Hong Kong Disneyland with the changes of setting and decor, reduce the price, adaptation to local customs and labor practices. Since it opened in 2005, Hong Kong Disneyland lack of success within a year. Walt Disney Company failed to understand local Chinese customs, but also their eating habits, meal times, and so on. But after Disney adjusts to local preferences it led Disney to produce high profits and stay competitive in the global market place. The globalization works when Disney minimizing US culture and maximize the Chinese cultural. Now, Disney not only adapts the themes, products, ideas, services, and even the whole entire organization including corporate philosophies and strategies, model for supervisor (employee relations) and so on. All of these are closely linked to the contexts and the sociocultural environment in which they are performed.

Study 20:

Hong Kong and Singapore are most open and dynamic economies among Asia Pacific Region. Besides that, both also the leading tourist destinations, and strive to look after as the tourism hub in the region. International Institute for management development (1998) stated that, Hong Kong and Singapore hold the second and third place in the competitiveness rankings worldwide. Due to the strategic location and the unique competitive structures of both Hong Kong and Singapore, these two countries’ economies have made strong economic advantages for the rapid growth of their tourism and hospitality industry. Based on the study, a competitive strategies employed by travel agents and hotels in Hong Kong and Singapore have play an important role in hospitality industry. Moreover, they managed to stay ahead in maintaining a competitive edge based on non-price and price-related (cost) strategies both internationally and domestically.

Study 21:

Since early 1997, Hong Kong tourism industry sector visitors amount have dropped dramatically. The significant numbers of Hong Kong’s major tourism markets contribution was Japanese market. Japanese market was defined as a high-generating market in term of tourist arrivals and tourism receipts, but due to the discriminatory pricing for Japanese tourists during the handover period, it discouraged inbound Japanese travel and even worse that undermined the reputation of Hong Kong as an international tourist destination. Base on the study, Japanese tourists are satisfied with the accessibility of Hong Kong, in term of transportation, customs procedures, immigration, open street markets and shopping arcades. All of this factors influencing Japanese tourists’ overall satisfaction level, besides that, the likelihood of Japanese recommending Hong Kong this place to other people.

Study 22:

The amount of inbound tourists to Hong Kong has continuously increased, and big portion was occupied by Mainland Chinese tourists, it is also because of the geographical proximity and political ties in between Mainland China and Hong Kong. This phenomenon so called “Chinese tourists’ wave” was influx by Mainland China’s tourists, and have been brought enormous change to Hong Kong’s tourism industry, even local community and economy. Base on the study, local residents recognize the existent of this wave, it is because of the significant economic benefits have been brought. On the other hand, local residents perceive the dimension of environmental, social-cultural and other costs negatively. Furthermore, local tourism authorities can use this useful information to formulate future strategies and policies towards the “Chinese tourists’ wave”.

Study 23:

Hong Kong is the top destination cities for tourists among Asia country, the top three major tourists was Taiwan, Mainland China and Japan. With the launch of Individual Visit scheme (IVS), Mainland China tourists enjoy the relaxed visa requirement and lately become the first source market in Hong Kong tourism. Base on the study, error correction model (ECM) acknowledged that tourists are income-elastic, in which they consider travel to international tourism was a luxury product. In addition, the effect of the nominal exchange rate on tourism is also significant for Japan, it because Japanese are more sensitive with the exchange rate but Chinese and Taiwanese tourists are not. Hong Kong tourism was benefits from the implement of new visa requirement. Moreover, more Chinese residents can afford to travel abroad for sightseeing and shopping with the economic growth of China.

Study 24:

Hong Kong people had a desire for materialistic attainment for their quality of life. With the rapid economic development, Hong Kong has become a modern financial hub of the Asian-Pacific region. Furthermore, to sustain the economic growth, Hong Kong government and private enterprise has encouraged further digitalization and globalization of Hong Kong. In addition, decolonization and westernization of Hong Kong has cause many Hong Kong people to migrate, do business or study in other country, but after Hong Kong handover to China, Hong Kong people have return and this contributed Hong Kong to a higher level of global life, which is positive for peoples’ enjoyment, happiness and overall quality. However, despite the fact that due to the rapid and continuous socioeconomic development since the 1960s, majority of Hong Kong people didn’t feel content with their quality of life.

Study 25:

A country which is renowned for its complexity and bureaucracy and regulating everything, which is French. Their implementation involves different levels of authority and action, many actors and many types of policy instruments. In addition, it is not surprise that the government will take charge of every aspect include tourism projects. Therefore, the structures set up and planning culture of Disneyland Paris project are definitely take part by the French government. Moreover, the French government shows it interest in Disneyland theme park project because of the redistribution of benefits or revenue among social classes. Besides that, it also helps Paris to create urban growth pole economically independent. Furthermore, the Disneyland Paris project is based on public-private partnership which means the private company and government each presume responsibility and risks that are specifically theirs. This is totally different from other mixed economy country which the private company and government take on responsibility and risks together. The convention decides the responsibility and duty of each partner, not just those of the French government.

Study 26:

Based on the study, Hong Kong tourism market will dominate by Japan, Taiwan and Mainland China which during the forecasting period. But as the figures published from HKTB, it showed that the forecasts have been overestimated in long-haul market. The reason is tourists from Taiwan, Japan and Mainland China from these markets are more likely to cut their travelling expenses in Hong Kong. As a result, the negative impact of the financial crisis on long-haul market will definitely made Hong Kong’s tourism industry undergo losses. In contrast, short-haul markets are predicted to perform stably during the forecasting period. This study shows that there are strong relationships between demands for Hong Kong tourism and both the price of tourism products in Hong Kong and income levels in origin markets. Therefore, it is important for Hong Kong’s policy makers closely monitor economic conditions in this tourism source markets.

Study 27:

Based on the study, Mainland Chinese visitors created blog and micro blog to share their travelling experiences in Hong Kong with the objective of how this could help market a destination. As the result from 300 micro blog and blog indicate that generally Mainland Chinese bloggers have positive image towards Hong Kong as a travel destination. The travelers write about their experiences of attraction and food in the destination with photos provided. The photos posted create a very favorable image of the facilities and destination. Tourism organizations should consider using micro blog and blog service providers for marketing purpose in two ways.

Study 28:

Based on the study, Chinese tourists perceived the overall destination image of Hong Kong positively, there were unfavorable perceptions about the price of meals outside hotels, the quality of cosmetics and skincare products, five star hotel rooms and the experience at some attractions. With the emerging of popularity of travel blogs, all those information are useful to Hong Kong Special Administrative Region government, tourism practitioners and HKTB in map out strategies and making improvements to enhance and maintain the destination’s competitiveness.

Study 29:

From the past few decades, brand names have made a Trustmark like never before. There is an opportunity for businesses to stand out and illustrate that they have a strong commitment to people. The most important is the character and reputation, will definitely imposed brand a personal connection with customers and will measure the success in future. Based on the study, Disney is the brand which mentioned in this journal which Disney represented many of characteristics 50 years ago. For example, Mickey Mouse club was shows via movies and television and he was authentic, as there were many characters at Disneyland.

Study 30:

Based on the study, in the 20th century affair, Walt Disney is arguably having impact over the figure in animation. Besides that, Walt Disney also famous as the creator of the first theme park, Disneyland. In addition, Walt Disney as the creator of the “emotional environment” of the first animation only studio, he also expands his learning into a series of innovative projects such as Disneyland, the California institute of the arts and so on. Disneyland is named as the essentially a giant movie set, with each feature of the designed is to awake everyone emotional. In addition, Disneyland will definitely ensure visitors who entry to the park would be substantively separated them from outside reality world. That is because Walt Disney intended to induce his guests on the appropriate mood, so that once these guests came into the Disneyland, they were ready for “happiness”. Yet, Disneyland was merely the beginning.

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