toptermpaper.com

This research paper is focus on tourism industry (ecotourism) in Malaysia. The objective of this paper is to report on an empirical research study which investigated how to improve or develop the industry tourism (ecotourism) in Malaysia? Besides improvements, the important for this research is to concern about the contribution of the tourism industry on the Malaysia GDP. To understanding the natural sources that we owned and generate it to develop our country. Findings were from the analysis of data such as internet, newspaper, government data and source that prepared by other people. A regression model was developed as evidence to this. The literature on this aspect is limited. Thus, the research findings of this study are useful for future studies. This study also provides several recommendations for future research in this area.

Introduction of tourism (ecotourism)

Tourism is a relaxing activity for people to travel for recreational, leisure or business purposes. Based on the World Tourism Organization describe that tourists is people who travel to other places and stay in places outside their usual environment. According to World Travel and Tourism Council (WTTC), tourism has become one of the global largest industries nowadays. In other word mean that tourism has become a well-liked global leisure activity. In year 2009, Tourism industry has contributed 9.4% of world GDP into the economy, or equivalent of 5433.7 US billion dollars. There are a lot of people who traveling around the world time by time just to release tension or enjoy their lifetime or business purpose. Based on WTO, there were over 922 million international tourist arrivals in 2008, with a growth of 1.9% as compared to 2007. In 2008, international tourism receipts grew to US$944 billion (euro 642 billion), corresponding to an increase in real terms of 1.8%. Furthermore, real GDP growth is expected to growth in average 4.4% over the coming ten years. In the other hand, tourism economy has provided a total 235 million jobs in the worldwide.

However, in the beginning of June 2008, international travel demand suffered a strong slowdown, with growth in international tourism arrivals worldwide falling to 2% during the boreal summer months. This negative trend become strong during 2009, worsen in some countries due to the outbreak of the H1N1 influenza virus, resulting in a worldwide decline of 4% in 2009 to 880 million international tourists arrivals, and an estimated 6% decline in international tourism receipts. The country that hit badly such as Mexico, experienced outbreaks of respiratory illness and enlarged reports of patients with influenza-like illness (ILI) in several areas of the country. Based on our tourism ministry Dr. Ng Yen Yen said that during that serious epidemic period, it unaffected our tourism sectors but further increase our tourist arrival. We can see that Malaysia is still attracting the tourist although there is happening the epidemic. This is also because our epidemic is still under control which mean our country less affected by H1N1, this caused to the people who favor on tour shift their planning to other more safety countries such as Malaysia.

In Malaysia, travel and tourism industry’s share of GDP has rise from 8.6%, worth RM8.02 billion in year 1988 to 14.1% of GDP, worth RM94.6 billion in years 2009. While travel and tourism direct industry (included transport, accommodations, food and beverages and etc.) has brought a total income of RM36.8 billions in year 2009, or 5.5% of GDP. Besides that, tourism has created a total job opportunities of 1395700, or equivalent of 12.7% of total employment. As we know that Malaysia is one of the country which held in the tropical area on the earth. Malaysia is an amazing country with immeasurable large quantity of biodiversity. It is not surprising to find that 75 percent of Malaysia’s land area is remains forested, with 60 percent virgin rainforest that unchanged for over millions years. The country is presented with numerous natural attractions such as amazing and diverse flora and fauna (refflesia, orang utan), white sandy beaches, exotic marine aqua life (Pulau Sipadan, Pulau Mataking), dense rainforests(Taman Negara) and the oldest and largest caves in the world (Deer cave).

To sharing of the mysteries in Malaysia, one of the twelve mega-biologically diverse countries in the world, which boasts at least 15,000 species of flowering plants, 286 species of mammals, 150,000 species of invertebrates, and 4,000 species of fishes in addition to the countless micro-organisms. Experience a huge range of outdoor activities, such as caving, hiking, jungle trekking, snorkeling, rock climbing, diving, river cruising and much more. Experienced outdoor professionals, who are well ready with the latest gear, can guide you through all of these activities. If you are looking for rich and exotic ecotourism experiences in balmy tropical weather, the time is now, the place is Malaysia.

This made Malaysia owned the potential to develop the ecotourism to growth up the economy furthermore can introduce Malaysia to other countries. To let others learn more about the natural better than keep reliance in the industrial sector to boost up the GDP. The widespread interest in ecotourism among tourism players is due to its direct linkage to the greater prospects for sound and sustainable tourism development with strong possibilities for appropriate local participation and shared responsibility for preserving the environment, cultural heritage and people’s way of life. It is needed everyone to responsibility to protect our natural environment well.

Research Problem

As we know that Malaysia is a tropical forest country that rich with the natural sources flora and fauna, white sandy beaches, exotic marine aqua life, dense rainforest and the oldest and largest caves in the world. Therefore we should introduce it to foreign country so that it can attract the foreign tourist to our country. But the problem is does it really known by other countries? What should we do to improve our natural sources to attract the tourist? What are the factors that influence the total number of tourist to Malaysia? Besides, how we going to develop it, so that it can more known by other counties tourists? However it is needed a sustainable develop to prevent it get harm to the biodiversity. And since we know that when there is a lot of tourist to our country sure it will generate capital flow into our country and increase our GDP. Therefore it is needed to understand the potential and how to attract tourists to generate our country income.

Research Question

What did the government do to develop the tourism industry?

Does it have the potential to attract the foreign tourists?

How to improve our ecotourism facilities and services?

What are the strategies to attract more tourists to visit Malaysia?

Research Objective

To realize the important of tourism industry.

To analyze the potential of tropical country that rich with immeasurable large quantity of biodiversity.

To examine what initiative will be taken by the government.

To analyze the contribution of tourism in our GDP.

Literature Review

http://www.apo-tokyo.org/gp/e_publi/gplinkeco/17chapter15.pdf

Mohammed Mohd. Daud, (n.d.) with his conference article “The Ecotourism Develop In Malaysia” mention that the services sector including the tourism industry, is the major revenue as well as the largest contributor to Malaysia’s Gross Domestic Product (GDP) at 46% in 1999. He specified that the tourism is a growing sector and gaining importance in the Malaysian economy. Besides, due to the existing legal requirements and the economic development strategy, the promotion of tourism and ecotourism activities in Malaysia involves a number of institutions and also including the statutory body – Tourism Malaysia to involve in marketing and promoting tourism product. Considering that the ecotourism objective such as the National Parks and wildlife sanctuaries are often located in distant places, but the government would provide basic infrastructure facilities such as roads, jetties and some amenities. Furthermore, the government is also supporting ecotourism development by means of sponsoring the cost of technical consultancy work on particular ecotourism destinations. For case study in this article mention that although the Kinabatangan Wildlife Safari has not matured yet in developing, it is already showing its potential in becoming a successful ecotourism destination where preservation of natural resources with sustainable development. It involves all parties such as the government, private sector, local communities and NGOs work together in a partnership to protect the priceless natural asset by translating business opportunities into maintenance benefits.

The purpose of this study is to calculate tourism’s contribution through deriving multipliers in terms of output, income, employment, value added, and import for Malaysian economy. Based on this study, they found that, tourism sector have been generated employment which is 174 full-time employee for every Ringgit of tourist expenditure. According to researcher, entertainment sector is most important sector that generated tourism income followed by accommodation and food& beverages. Malaysian tourism industry not only playing an important role for generating output, income, employment, value-added, and import but also creates spillover effects on other tourism related sectors of the economy. However, based on the analysis of this paper, it is obvious that tourism industry is contributing significantly to the Malaysian economy in terms of generating output, income, employment, and value-added.

http://www.google.com.my/#hl=en&source=hp&biw=1189&bih=544&q=DEVELOPMENT+OF+ECO-TOURISM+IN+TRIBAL+REGIONS+OF+ORISSA%3A+POTENTIAL+AND+RECOMMENDATIONS&rlz=1R2PPSU_enMY368&aq=f&aqi=&aql=&oq=&gs_rfai=&fp=42cdcfe0f1684f63

Based on the Nilakantha Panigrahi research paper “DEVELOPMENT OF ECO-TOURISM IN TRIBAL REGIONS OF ORISSA: POTENTIAL AND RECOMMENDATIONS” had mention about the wealth in being tourism of the Orissa region in eastern India. He said that with the well develop in the ecotourism will generate some income for the state. Tourism is identifying as an industry in Orissa in generate the income from the foreign tourists because that place seem to have different type of attractive onwards the tourists especially the countless temples of Orissa scattered at the state. The attractiveness is that the state owned 79 heritage sites in Orissa which protected by Archaeological Survey of India. Western Orissa is known by a small temple town, besides particularly of the western Orissa have the streams and forests which show the natural beauty of Harisankar in Bolangir and Nrusinghanath in Balangir. Furthermore, Kalahandi area is endowed with the wealth of forests, for example existence of a rare species of black tiger, with a natural waterfall at Rabandar, and a host of temples situated at the hilltops of Bhawanipatna.

Nevertheless, the concept of museum is also being established by government for collected and displaying those artifacts by following the types of it. The record from 1990 until 1998 with the attraction of tourists is 86.58% in domestic and 11.50% for foreign tourists. This can be proved that the well known of domestic people and unrealized in the potential of the place as being a tourism destination for foreign tourists because of poor developing that place. However the tourist arrival show that the increasing trend from 1990 until 1997 but dropping in 1997-1999 due to the Asian financial crisis and then increase again in 1999 to 2000. Due to the Orissa heritage place, natural environment with flora and fauna it can be the successful destination for tourists. The reason that it cannot attract more is because of poor developing by government as a tourism destination from an ecological and cultural point of view.

http://www.uea.ac.uk/env/cserge/pub/wp/gec/gec_1995_30.pdf.

From the “TOURISM AND SUSTAINABILITY IN ENVIRONMENTALLY FRAGILE AREAS: CASE STUDIES FROM THE MALDIVES AND NEPAL” research by Katrina Brown,R. Kerry Turner, Hala Hameed and Ian Bateman had said that Maldives and Nepal is a country which enrich with natural resources such as reefs, beaches, and mountains especially the most highest mountain in the world – Everest are attract many tourists to there. The amount of trekkers to Nepalese Himalaya grew by 25 percent per annum over the period 1985-1988. Furthermore, Maldives tourism visitors have increased from a total of less than 1000 per annum in 1972 to 178,000 in 1991. As we can see that the amount of tourist is increasing lead by globalization. It makes people able to move across to other countries. In analyzing the Maldives in 1991, total of tourists had increase to over 178,000 tourists. The annual rate is exceeds 30 percent for this period and this show that it stand at over 1.7 million. The total receipts are achieving 94 million in 1991 if compare to 1981 is just 15 million. However for Nepal, the data said that is just only 6179 tourists in 1962 but it change to a huge amount in almost 300,000 in 1991. This can show that the attracting to Nepal is increasing rapidly and with majority tourists came for the nature. This can be see that the successfulness of the ecotourism such as mountain or jungle trekking, jungle safaris, river rafting or ethnic tourism in Nepal. Both study also show that more tourists were came toward their country by enjoying the nature environment.

Research Hypothesis

By referring to the literature reviews mentioned, we are able to form 2 hypotheses that measure the growth of tourism sector that accelerated the industrialization process.

The first hypothesis model formed state that the contribution of tourism sector towards the Gross Domestic Product (GDP) is influence by the foreign and domestic tourists and the number of projects approved by tourism department. Hence, the function below is formed:.

GDP = f (tourists)

However, the second hypothesis model formed state that the contribution of tourists towards the tourism is influence by the number of projects approved by tourism department. Hence, the function below is formed:

Tourism = f (tourism department)

Methodology

There are a few methods which can be used in order to search and gather the information that we needed such as by gathering the information from the internet. But mostly all data are collected through the secondary data. Based on my title which focuses on the ecotourism, I am referring to the news article which published by The Star, beside we were gone through the government website to get the current news to get the tourism issues, activities, government gazette and also the government statistical data. Those articles that related with my topic in internet also can be using as reference especially those research paper done passed researcher. Furthermore we compare country between countries in tourism performance.

Analysis

http://www.tourism.gov.my/corporate/research.asp?page=facts_figures

As we can see that the tourist’s arrival to Malaysia has increase year by year. We know that 1997 is happened Asian financial crisis the following is 2008-2009 global financial crises with epidemic of H1N1 together. However it does not give much impact on our tourism but further increase our percentage of tourist’s arrival. If we compare the amount of tourist in year 1998 with 5.5 million and 2009 with 23.6 million it is already 4.3 times than amount in 1998.

http://www.nationmaster.com/graph/eco_tou_arr-economy-tourist-arrivals&int=-1

For the data show above which clearly stated that the ranking of Malaysia is in 19th in the world ranking. This can be proved that we still can develop it well to get higher rank in the list so that we can generate more income through tourism. Especially for the 10th Malaysia Plan is planning to improve the country’s position on the global tourism stage and become one of the top ten countries in the world in terms of tourism receipts by 2015.

http://www.epu.gov.my/html/themes/epu/images/common/pdf/rmk/rmk2/rancangan%20malaysia%20kedua%20-%20chapter%2011.pdf

http://www.epu.gov.my/html/themes/epu/images/common/pdf/buku%20rm%20ke%207%20-%20chapter%2016.pdf

http://www.epu.gov.my/html/themes/epu/images/common/pdf/8th_msia_plan_c15_cont.pdf

Based on the data above, we can see that during the period between 1960 until 1970, the employment is significant show that tourism is just contribute a little on economy only. For year 1965 is only contributed 287000 for employment (employment in hotel is 2700 in 1965), however for year 1970 it is slightly increase to become 340000 of employment (employment in hotel is reached 8000 in 1970) which contributed by the tourism. Furthermore, year 1975 tourism is only contributing 419000 employments. If we look seriously beginning from 1990, the employment is contribute a lot by the tourism in hotel industries, however hotel industries is just one of the part from the contribution of tourism, we can see clearly that it is quite potential in develop it. Based on the data show that the there is an increasing trend on employment which generate by the increasing in number of hotel, it can be show beginning from 1990 which is generated 39961 employments by 989 hotels, 1995 generated 67214 employments by 1220 hotels, 2000 generated 78671 employments by 1492 hotels and for year 2005 it generated 79603 employments by 1541 hotels. The opportunities in employment contributed by tourism are determined to achieve 1217000 thereby contributing 11.6% of total employment in year 2007. And the contribution of the Travel & Tourism economy to employment is 1,331,000 jobs in 2010 (Quarter 2).

http://www.economywatch.com/world-industries/tourism/malaysia.html
http://www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/Malaysia.html

http://docs.google.com/viewer?a=v&q=cache:ai8aqxFRL2QJ:www.undp.org.my/uploads/UNDP_SME_Publication.pdf+graph+for+small+medium+industries+malaysia&hl=en&gl=my&pid=bl&srcid=ADGEESixA75njhH_Yr4tgc4hpxAgfZYVgdeziqYg3nRtfCmVjUzHa1znOVM4b1Jpat-Y-LCTbLA5FNZKfD_5DHcCls8DAhtjBaunNOxuhyPF5VtvYCGztXMQhPJXCSZe7rFklzGswUg6&sig=AHIEtbTsqG5MieCX3egU2hgFoAp-fKdayw
http://books.google.com.my/books?id=C_8BctkNCBoC&pg=PA38&lpg=PA38&dq=small+medium+industries+for+tourism+malaysia&source=bl&ots=0-otW5zvRW&sig=wnvDlXlKoKcGABqV-ebXpikkSzQ&hl=en&ei=BKuyTMKvI8WPcdiHheoC&sa=X&oi=book_result&ct=result&resnum=5&ved=0CCMQ6AEwBDgU#v=onepage&q=small%20medium%20industries%20for%20tourism%20malaysia&f=false
http://ww2.publicbank.com.my/cnt_review46.html
Government action

By the way it is needed for government action in supporting the tourism sector, without government implementation of policy or action in develop the tourism it is impossible for the tourism to growth itself. To attract more foreign tourists, government is need to create some policy to strengthening the tourism, furthermore it government spending is also important so that the project that government planning can be successful to achieve. There is some action by the government in above such as:

1. VISIT MALAYSIA YEAR 2007

Tourism industry of Malaysia. Retrieved on October 12,2010 from http://www.thefinancialexpress-bd.com/2007/08/31/9636.html

This year, Malaysia’s focus will be on the Visit Malaysia Year (VMY) 2007, was is aimed at aggressively promoting Malaysia, increasing 4 tourist arrivals, as well as encouraging domestic tourism among Malaysians. Coincidentally, 2007 is also the year of Malaysia’s 50th independence. As such, the Visit Malaysia Year campaign is a timely event to celebrate Malaysia’s golden jubilee. It is an occasion to rejoice and to share with the world the unique qualities and virtues that have shaped Malaysia to be the country that it is today. The VMY 2007 campaign is expected to raise the awareness of foreign tourists to enable them to plan their holidays in Malaysia. For VMY 2007, the country has set a target to attract 20.1 million tourists.Overall, there are over 240 events, of which, 50 being major events and 5 as international mega events. All these events are presented in `One Golden Celebration`. A celebration that brings Malaysia to the world, and the world to Malaysia.

The first event of the year was the Visit Malaysia Year Grand Launch on 6 January by the Honourable Prime Minister of Malaysia in the presence 500 international media and trade representatives from all over the world. Highlight of the Grand Launch was the unveiling of the Eye on Malaysia, which is a 60-metre Ferris Wheel followed by the Flora Fest Parade, a spectacular display of floats dressed in all kinds of flowers found in Malaysia.The other mega events include the Malaysian International Aerospace Adventure, the International Fireworks Display, the Malaysian International Tattoo and the KL International Buskers Festival.

2. Malaysia My Second Home Programme

Malaysia My Second Home Programme .Retrieved on October 12, 2010 from http://www.mm2h.gov.my/

Malaysia My Second Home Programme is promoted by the Government of Malaysia to allow foreigners who fulfill certain criteria, to stay in Malaysia for as long as possible on a multiple-entry social visit pass. The Social Visit Pass is initially for a period of ten (10) years, and is renewable. It is open to citizens of countries recognised by Malaysia, regardless of race, religion, gender or age. The programme allows applicants to bring with them their spouses, parents and children. Foreign spouses of Malaysians and expatriates who wish to retire in Malaysia after expiry of their Employment Passes are also eligible to apply to stay in Malaysia on this programme. Applicants are allowed to bring their spouses, unmarried children below the age of 21 and parents above the age of 60 as dependants.

3. One Malaysia-Endless Experience

Tourism Malaysia launches ‘One Malaysia-Endless Experience’ campaign in New Delhi. Retrieved on October 12, 2010 from http://blog.drngyenyen.com/?p=412

The campaign was launched by Dato Sri Dr Ng Yen Yen, Tourism Minister, Malaysia in New Delhi. The packages have been made available to Indian travellers travelling to Kuala Lumpur, and other tourism destinations in Malaysia from five major Indian cities – Delhi, Mumbai, Chennai, Bengaluru and Hyderabad. The package is being offered by Tourism Malaysia in partnership with Malaysia Airlines and Malaysian hospitality partners.

As per the package, Indian travellers can avail a four-day/three-night package tour to Kuala Lumpur for Rs 17,000, comprising return airfare and accommodation. The travellers can also travel beyond Kuala Lumpur to destinations like Langkawi, Penang, Kota Kinabalu, Kuching, etc. for Rs 19,500 from five Indian cities. Through this promotional drive Tourism Malaysia is expecting to further enhance the sale of these destinations and products across all travel segments from India including ones like G3A (Golden 3rd Age); SSS (Super Smart Shoppers) and FET (Family Enrichment Tourism).

4. FABULOUS FOOD 1MALAYSIA FOOD TRAIL 2009

Ministry of Tourism Launches ‘Fabulous Food 1 Malaysia Food Trail 2009? Booklet- The Route To The Best Food in Malaysia. Retrieved on October 12, 2010 from http://www.tourismmalaysia.gov.my/corporate/mediacentre.asp?page=news_desk&news_id=468

The main objective for the Ministry to produce the “Fabulous Food 1Malaysia Food Trail 2009” booklet, a brainchild of YB Dato’ Dr. Sri Ng, to harness upon the attractions in the food sector and entrench them as outstanding products of Malaysia’s food tourism. The “Fabulous Food 1Malaysia Food Trail 2009” booklet features “10 Best” entries shortlisted out of the total 120 listings of restaurants, delicatessens and hawker stalls from the respective categories of the Nasi Lemak, Laksa and Meat Bone Tea. Among others, the listings were based on the quality of food, customer service and cleanliness. Since the launch of the website, over 25,658 fellow Malaysians and global foodies have joined the very tantalizing quest to investigate the rich diversity of Malaysian local food varieties frequented by patrons of all social levels who in turn recommended their findings in the website.

5. http://thestar.com.my/news/story.asp?file=/2009/10/24/budget2010/4968158&sec=budget2010. October 12

Based on the news from The Star on Saturday October 24, 2009 reported that by the way of aggressive and innovative measures to attract FDI, our country government will spending RM899mil in 2010 for the tourism industry. The Main planned to be implemented is including attracting more tourists from Britain, Japan, South Korea, Middle East, India and China to participate in the Malaysia My Second Home programme. However, attraction will be successful by upgrading the quality of infrastructure in tourism centers throughout the country, this is the most important such as ecotourism development and upgrading homestay facilities; and ensuring front liners are locals.

Recommendation

Recommendation to better improve the tourism industry to known by others country and attraction foreign tourist to generate our GDP will be identified after the full research has been completed.

The Ecotourism Development in Malaysia. Retrieved on October 12,2010 from http://www.apo-tokyo.org/gp/e_publi/gplinkeco/17chapter15.pdf

There are such ways to improve Malaysia ecotourism. As we know, we have many ecotourism place included Wildlife Protection Act, the National Park Act, the National Forestry Act, the Fisheries Act and the State Park Enactment (Pahang). These protected areas are gazetted under the various federal and state. The Department of Wildlife and National Parks, the Forestry Department, the Fisheries Department and the various

State Parks authorities have been responsible for managed these place.

First ways is ours tourism and travel agencies should be more creative to promoted ecotourism to attract more foreign tourist because government give many incentives to them. Creative means travel agencies should provide more packages for student, family, group and others. These packages will attract more tourists to visit Malaysia also attract local tourist. Local tourist actually more demand than foreign tourist because local tourists want different experience in the place they visit. Travel and tours agency also should use internet reservation to get more people use their services.

Next, government should provide more facilities in the ecotourism area and to go there. For example, access roads, jetties and some amenities. Every year government give budget to improve our transportation systems. For instance, government upgrading of Jalan Kuching-Sibu from Simpang Julau to Sibu Airport Interchange Phase I of the cost of RM176.5 million and the upgrading of Jalan Kuching-Sibu from Simpang Julau to Sibu Airport Interchange Phase II (RM10.3 million). Besides, governments have been providing funds to develop infrastructure facilities at various ecotourism destinations and RM 10 million was allocated between 1996 and 2000 to implement five ecotourism projects as pioneers

The other ways is this effort from government must support by local people and private sector. So the implementation will be easy and more successfully. Private sector should provide some funds, services and technical consultancy to help Malaysia’s government to attract more tourists local and foreign. Local communities can contribute to the employment, protecting the environment and shows a good behaviour.

There are more than 200 national economies involved in the competition of destination market and as of 2006 worlds governments have exceeded its expenditures US$1,480 billion to make their states as destination brand (Balakrishnan, 2008). This literature review aims to identify and examine the positive impact of the tourism in Dubai with especial perspective of hospitality industry. Historically Dubai is significant tourism destinations for world class comfort to tourists (Steiner, 2010) and tourism in Dubai has further impacted the hospitality industry in Dubai. It is reported that tourism is an integral part for economic growth of Dubai (Lee & Jain, 2009) as this industry accounts for 1.2 per cent of total GDP and the combined impact is expected to total 11.6 per cent in 2005 (Ryan & Stewart, 2009) and the development made in Dubai is helping the government to attract more tourist to travel to Dubai (Henderson, 2006). This study has aim to identify tourism as growing industry in Dubai while also discussing the increasing importance of the sector and its positive impact on the hospitality industry caused by increasing promotion of tourism.

The Importance of Growing Tourism Industry in Dubai
Tourism as an Industry

Tourism is comprised of individuals’ activities to travel and stay outside their usual permanent places for one consecutives year (Steiner, 2010). In the broader term the industry of tourism means all socio-economic activities that are directly or indirectly involves the provision of services to tourists (Henderson, 2006). According to the World Tourism Organization’s Standard Classification of Tourism Activities, different other sectors are also associated with the development of tourism industry including lodges, transportation means, food and beverage, culture and entertainment and finance (Ryan & Stewart, 2009).

Tourism Industry in Dubai

The latest report of World Travel and Tourism Council has highlighted Dubai as the most world-class destination for tourism and also reveals that the industry of tourism in Dubai has grown to 14 per cent annually (Stephenson & Knight, 2010). Over 100 tourism and leisure projects are underway and now the tourism sector accounts for almost a quarter of the Emirate’s annual GDP. To examine this figure there is need to evaluate the tourism industry in Dubai. Dubai is the capital city of the UAE and one of the fastest developing cities (Walker, 2009). With number of remarkable and outstanding tourists’ spots, Dubai has been the most popular destination for tourists. In addition, Dubai is also considered as hub of all tourism activities in Gulf while economy of Dubai majorly depends on tourism (Henderson, 2006). Since large number of tourists and travelers from different part of the world through Dubai for leisure purposes, this tendency of tourists has naturally led to increase the demand for the services of hospitality industry and providing different job opportunities in Dubai (Richard, 2008). However, the industry of tourism and hospitality is already well developed as a result of large number of travelers visiting the city the government is strategizing to more develop these industries (O’Connor, 2010). Moreover, the strategic implementation made by the government for the development of tourism has remarkably impacted the hospitality industry and this impact has been observed as positive (Weiermair & Mathies, 2004).

Development in the Tourism Industry in Dubai

The industry of tourism is an important part of Dubai’s economic growth as result of increase flow of foreign cash into the country (Boniface & Cooper, 2009). Dubai possesses a significant position in the world tourism and to maintain this position the government of Dubai has strategized to more develop and boost other agencies and industries related to tourism such as hospitality, banking and finance system and transportation (Marcus, 2010). The government realized that in order to reshape the industry the government has to signify the wholesome approach for development of Dubai (Henderson, 2006). To Walker (2009), the development of Dubai as tourist destination and business center has attracted the hospitality operators. Moreover, Dubai also allures the tourists for its shopping malls, architectural buildings and Islamic architecture, the government also focuses on the above sectors of the city so that it could maintain the sustainable interest and attention of the tourists for travelling. In the development of hospitality industry the hotels and resorts are developed as major part that helps to promote the tourism in Dubai (Eisen, 2008). The plan of Burj Dubai in Dubai has globalized its hospitality services by expanding its lodging brand globally to key destinations in the Middle East (Dunbar, 2009).

Impacts of Tourism in Hospitability Sector of Dubai
Social and Cultural impacts

It may be possible that tourism influences the social and cultural aspects of life in specific area depending on the strengths of cultural and religion. The relationship between the hospitality sector and the tourists can be considered as the main factor affecting a community as tourists may not be sensitive to domestic customers, traditions and standards. The positive impacts on the area include the benefits which include:

Domestic community can mingle with individuals from the different backgrounds with distinct lifestyles which might lead through the demonstration effect towards the development of enhanced lifestyles and implementations.

Wide range of cultural and social events available for domestic people which include exhibitions, entertainment etc.

Enhanced facilities for sports and leisure developed for the tourists which might be in use by domestic people

Encouraging the youth exchange programs, voluntary work overseas, etc.

Under the light of above key points, it can be said that Dubai is one of the best tourist destination (Stephenson, 2010) where the establishment of tourism has positive effects on social and cultural life of the region (Balakrishnan, 2008).

Economic Impacts

The main source to the success of Dubai is the ability and prediction of good opportunities, along with the avoided saturation of tourism industry by creating more beaches, tourist activities etc. The tourism in hospitality sector within Dubai is increasing at a faster pace without showing any sign of decline. The hospitality industry is helping in satisfying the demand of tourism in order to compete across the world effectively. The bulk of tourists are accounted for approximately twenty percent of hotel guests and during 2007, hospitality industry of Dubai received 92,328 tourists from China which was approximately a thirty five percent increase per year. The economic effect on the hospitality sector in tourism of Dubai includes the increased employment level (Sharpley, 2008) with the increasing development of hotels, increased revenue in terms of tourists’ arrivals in Dubai.

Environmental Impact

In most general terms, the environment has the significant and prominent effect on the tourism in hospitality industry within Dubai. There have been major hotel developments in Dubai which widely include the Palm, Dubai Tower, Burj al Arab hotel etc. Moreover, Dubai has evolved into the major shopping destination along with the Arab traditional culture which is intended to be expanded (Sharpley, 2008). The tourism within hospitality sector means to provide a comforting and soothing environment to the tourists while staying in hotels of Dubai. The planning structure of Dubai has been working on this perspective and brought various improvements in hospitality industry which attracts tourists on wide scale every year (Lee & Jain, 2009). The positive impacts on environment in Dubai within hospitality industry may include increased income for preservation of various facilities, encouraging the conservation of features etc. Moreover Dubai land is considered to be the largest theme park across the globe which is twice the size of Disney land existed in Florida.

Conclusion

This literature review examined the tourism industry in Dubai and found that with increasing rate of tourists the government of Dubai has taken initiations to more develop the sectors and industry associated with the tourism industry (O’Connor, 2010). Moreover, in the review it is found that hospitality industry is the most impacted sector and this impact has been observed as positive. Dubai offers tourists a fascinating adventure along with five-star leisure facilities, attractive beaches, Arabian hospitality and cultural blend of old and new cultures (Dubai, UNITED ARAB EMIRATES. 2005).

However, there are other sectors that provide growth to tourism but hospitality has become backbone of the tourism as mostly tourists are attracted traveling to Dubai due to its well developed and appealing hospitality. It is found that tourism has greatly affected social, cultural, economic and environment aspects of hospitality. However, the changes caused by constant development in the tourism has given new opportunity to different fields of life, development of hotels, shopping malls and others have expanded the Arab traditional culture. As a result of such development social and cultural life of Dubai is also impacted and due to increasing tourism domestic community gets an opportunity to mingle with people from different backgrounds. Since wide range of cultural and social events is arranged in Dubai it leaves a positive impact on the local people of Dubai. Moreover, increasing growth of tourism has also impacted the enhanced facilities for sports and leisure spots developed for tourists.

The Wright brothers penned their names down in history when they built the first airplane which flew for 12 seconds. Thirteen years later, in 1936; the first passenger aircraft was produced with a capacity of 21 passengers. Since then, commercial flying has become a reality. However, it was a harsh reality because only an elite group of rich people had access to this luxurious life. In 1971, the first low budget airline, American company Southwest was launched. With the introduction of budget airlines into the market, flying became available to people of every class in society. The demand for air travel skyrocketed and the industry flourished. Thus, it is safe to say that rather than causing harm to the environment by contributing to global warming, the industry brings huge benefits in economical and social aspects and its presence is very much needed and welcomed in the travel sector.

Throughout this essay, the term airline industry will be more commonly used than the term budget airlines as low cost airlines only represent a small fraction of the airline industry, not the whole industry. By looking at the bigger picture of the entire aviation industry, the impacts of the industry can be evaluated at a larger scale. Therefore, the overall impact of airlines on the environment and its benefits will be discussed rather than the effects of budget airlines alone. This essay will also focus on the airborne environment which comes more in contact with airline industry.

Beginning with the industrial revolution, air transport has gained popularity because it saves international travel time as transportation becomes a basic necessity. As a result, environmentalists argue that the airline industry no doubt highly contributes to carbon dioxide emission into the atmosphere as one of the fastest-growing sectors given the extra boost from budget airlines. The Environmental Protection Agency shows that in 1997, the U.S. aviation emitted carbon dioxide which was roughly comparable to the carbon emissions of certain industrialised countries (General Accounting Office 2000). Carbon dioxide gas is emitted as a by product of the burning of aviation fuel. As the main greenhouse gas, excessive amount of emissions cause global warming to rise at an alarming state. The Intergovernmental Panel on Climate Change (IPCC) predicts the worldwide temperature to increase from 34.7 to 40.1 degrees between 1990 and 2100 (Bowe, Hartley & O’Connor 2004). The increase in Earth’s temperature brings about a chain of events, such as ice sheets and glaciers thawing, sparking a rise in sea levels and successive coastal flooding. In addition, the occurrence of tropical infectious diseases might increase in moderate climates. On the other hand, it is affirmed by the International Air Transport Association (IATA) that the carbon dioxide vented by aircrafts actually only rationalise for a small 3.5 percent of the worldwide emission, even less by the budget carriers. This contrasts with 41 percent for other industrial sources and 23 percent for other transportation sources (General Accounting Office 2000). Moreover, aircraft experts are taking on the responsibility to minimise the negative impacts of aeroplanes. Giovanni Bisignani, director general of the IATA, claims commercial air travel has made much bigger steps in its environmental impact reduction than any other form of transport (Wastnage,J 2007), by using cleaner aircrafts, new fuels and introducing more sustainable technologies. Thus, the industry cannot be solely accountable for global warming.

On the contrary, airlines pose huge positive implications on the travel industry and economy as a whole. Low cost carriers pilot the industry to act as a catalyst for employment in other sectors such as tourism. A total of 7.7 million direct occupations in global tourism and 6.0 million indirect professions in sectors providing to tourism are estimated to be sustained by the spending of international tourists reaching by air, amounting to about USD 90 billion a year to global Gross Domestic Product (GDP) based on the Air Transport Action Group’s (ATAG) report in 2008. Just as air travel is a vital component of tourism, tourism is in turn essential for economic growth. For example, in Africa, 25% of all tourism careers, an estimated 1.5 million occupations are supported by overseas visitors arriving via air (ATAG 2008). Giovanni Bisignani states in 2005 that tourism directly accounts for up to 50% of GDP in Pacific Air Travel Association (PATA) countries, and in Maldives, the sector accounts for 80% of the economy. Hence, the sector holds a vital role in facilitating the growth of travel and tourism which are key factors in the increasingly globalised world economy.

From a different perspective, this essay also takes into consideration a key group of stakeholder in the travel industry, the tourists themselves. Based on ATAG’s 2008 report, “travel and tourism provide substantial consumer welfare and social benefits”. The existence of the air transport industry itself is a manifestation of consumer welfare where the demand to travel globally using a safe and fast mode of transportation is met. Looking beyond that, with budget airlines leading the way in making international travel readily accessible via cheaper tickets, a broader choice of holiday destinations are made available. As local standards of living improve, international air travel from India, China and other surfacing markets is raising swiftly (ATAG 2008). This means that tourists are no longer limited to regional holiday destinations. Travelling halfway around the globe becomes more common now than ever before. This provides freedom to travel and it facilitates the exchange of cultural and learning experiences. By being exposed to different cultures while abroad, many experiences are broadened while the understanding of other cultures increases. Both of these result in the improvement of quality of life and aid in better international integration. Moreover, the expansion of multicultural societies is supported when airlines, especially budget airlines provide an affordable mean for immigrants to visit their friends and family back home and vice versa. For that reason, inexpensive flights would ensure a raise in the quality of life.

As a whole, while budget airlines and airlines do contribute to many environmental issues, the percentage to involvement is relatively small and according to Philip Murray Condit, former CEO of Boeing, “it is the most environmentally friendly way to travel”. Comparatively, the airline sector provides jobs for millions resulting in the rise of global economy. Socially, airlines induce the popularity of international travel and enhance cultural knowledge in order to foster better intergovernmental ties. Overall, budget airlines as part of the industry plays an active role in the society, generating profitable gains for everyone while planning ahead to reduce its negative impacts. Bottom line, the airline industry, not forgetting the budget airlines are meant to stay for years to come.

(1111 words)

Genting Highlands, also known as Resort World Genting, was the idea of the late Tan Sri Lim Goh Tong. He wanted to create a holiday resort in Malaysia, 2000 feet above sea level, where one can experience cool weather and have a relaxing vacation amongst the nature. Today, Genting Highlands is a leading leisure and entertainment resort. It compromises of six hotels, a country and golf resort, two apartment blocks and a theme park, international shows, gaming experience, leisure cruising and meetings and conventions. Their vision is “to be a leading integrated resort operator in the world” (Genting Malaysia Berhad, 2011)

Genting Malaysia: http://www.gentingmalaysia.com/

Resort Word Genting: http://www.rwgenting.com/

Marketing Problem
Marketing Audit
External PEST
Political and Legal Environment

In 1965 when Tan Sri Lim Goh Tong purchased a mountainous land in between Selangor and Pahang there was an anomaly issue of the ownership title, one part of the land being leasehold and the other being freehold. Dato Harun Idris the Menteri Besar of Selangor at that time (politician) agreed to grant a freehold.

When one has a business in a country, the laws that are set have to be complied. In political and legal forces the laws that govern the corporations have an impact on decision making. Some of the most commonly used political strategies are constituency building, political action committee contribution, advocacy advertising, and coalition building.

Economic Environment

Here in Malaysia the economic climate has been quite sound. We have trade freedom, labour freedom, monetary freedom and high levels of fiscal independence. The highest corporate tax rate and the highest income tax rate are moderate. The tax revenue is low as a percentage of GDP. Inflation is very minimal and government does not alter market prices much with direct subsidies. The simple hire procedures with no minimum salary make the labour sector flexible and help businesses to stay competitive.

Social Environment

Customers have increasingly visited Genting Highlands as it was the first ever integrated resort. Globalisation has marked Malaysia on the globe and also increased more tourists to come over and spend their vacation in Genting Higlands. However times are becoming more challenging as new integrated theme parks are opening in Malaysia.

Technology Environment

Over the course of time the rate of change in terms of technology has moved to a rapid pace. Technology contributes directly to its competence in terms of substantially increases competitive levels as others may be better placed and have more sophisticated internal technology systems. Gentings Leisure and Hospitality also emphasizes technological facilities advancement. As mentioned by Mr. Andrew innovation is always encouraged in the theme parks bringing in new rides and adventure so as to not stagnate with the old school rides but keep adapting to deliver that experience of a lifetime. The Manager also mentioned that in terms of building customer relationship technology has evolved the strategies from analogue to digital. In terms of establishing a relationship between Genting and its customers, more mobile apps such as android or smartphone friendly websites are designed to cater to the customer’s convenience.

Supplier, Publics, Intermediaries, Customers and Competition (SPICC)
Suppliers

Most of the suppliers are from a local source. If only the supply is exhausted or the requirement can’t be fulfilled by a local vendor, then Genting looks for a foreign alternative. Even the live food stock for the restaurants and hotels in Genting Highland, they are purchased from a domestic vendor from the surrounding small business owners.

Publics

Genting Highlands provides abundance job opportunities, as per se there are 15000 employees working for Genting Berhad altogether. At least one person is said to be working for Gentings from the families of the neighbouring villages around Genting Highlands. Mr Andrew also mentioned that there are some avenues for the Orang Asli community. Help is being offered in the form of domestic aid and education aid.

Intermediaries

There are intermediaries such as the travel agencies and holiday package providers. They promote the leisure activities to the foreign and local market. Even the state tourism promotes the fun come holiday vacation at Genting Highlands.

Customers and Markets
Competition

As Gentings was the first evert integrated resort in Malaysia it did have much competition for years. Recently over the past 10 years many changes have occurred in terms of tourism in Malaysia which opens avenues for business to open more resorts and theme parks around the country. As a result few months ago Legoland opened up with its theme park and resort. Soon to come many more integrated resorts may be built so Genting Highlands has to renew its brand image to upkeep as a key player in this industry.

Relative Market Share

Genting Malaysia Berhad is in the cash cow sector. According to five year annual report summary, it shows that earnings before interest, tax, depreciation and amortization (ebitda) to be profitable as it increase from 2,024.2 Million (2010) to 2,330.2 (2011). Genting group Malaysia is considered to be in a matured market as it was operating since 1971which is still generating cash and making profits for the company. In the interview with Mr.Andrew, marketing manager of Genting Malaysia Berhad, he mentioned the Hotel is always occupied and customers need to do their bookings 2 to 3 weeks before visiting. From this it can be gathered that the Genting Malaysia berhad is continuously making money and he also mentioned that there is less investment needed in the company to be made to maintain its service. The investment made is only on the maintenance of the theme park, room service, renovation and refurbishment on the hotel which is going on from 1st October 2012 until the end of January 2013.

Competitors

The competitors of Genting Malaysia Berhad can be defined as any company that is in the similar industry. Genting Malaysia Berhad is into the Theme park and hotel business in Malaysia but also at the same time Genting faces competition from the Sunway Group Malaysia, Lego land and Mines Resort city.

Sunway lagoon and Sunway Resort

Sunway lagoon is a multi- park destination and into the theme park sector and one of the famous amusement park in Asia , with five division such water park, amusement park, extreme park, wildlife park, scream park (sunwaylagoon,2012). Together with Sunway lagoon attached with its own Sunway resort and spa five star hotel.

Lego Land

Lego Land recently opened in September 2012, and located in Johor, Malaysia. The size of the theme park is 76 acres (310,001 m2). Other park such as Legoland water theme park and hotels will be opening soon (Wikimedia foundation, 2012). The theme park has 40 interactive rides and 7 different theme park (legoland, 2012)

The Mines Resort City and Mines Wellness Hotel

Mines resort city has its own theme park named Mines wonderland and a Shopping Mall.The Mines wellness hotel is a five star hotel together the hotel is build with a man made beach and swimming lagoon.

Internal 5 Ms
Men (labour)

There are 7000 employees of Genting Theme Park. Some of the employees are Malaysians, and some others are from other countries. The employees of Genting Highland or Hotels must be trained before they actually do the work. The time for the training is depends on the job that the employees apply. For example, the employees who work in the front desk or entry level, they have to be trained for six months.

Money (finances)

According to Genting Malaysia Financial Statement in 2011, the company got RM 1,322.3 million profits. And the company total asset is RM 13,490.6.

Machinery (equipment)

Genting theme park has a ride that other competitor do not have, it is the Flying Coasters. The Flying Coasters is a unique hang-gliding roller coaster that mimics the sensation of flying (Resort World Genting).

Minutes (time)

Genting Highland Resort has been running for 47 years. Genting Highland has three parks, which are outdoor park, indoor ark, and Video Games Park. The time operation of those three theme parks has a little bit differentiation.

Outdoor Park

Indoor Park

Video Games Park

Monday – Friday

10 am – 6 pm

10 am – 12 am

9 am – 12 am

Saturday, Malaysia School Holiday, and Public Holiday

9 am – 10 pm

9 am – 1 am

8 am – 1am

Sunday and Malaysia Public Holiday

9 am – 6 pm

9 am – 12 am

8 am -12 am

Materials (factor of production)

Factor of production is an economic term to describe the inputs that are used in the production of goods or services in the attempt to make an economic profit (Investopedia Dictionary).

There are four factors of production:

Land
Labour

Land is all the natural resources used for production. Genting Highland resources it includes the land it self, 12,000 acres and 2,800 acres of land from the Pahang and Selangor State Government.

Each person has different level of skills. In Genting’s company, there are designers who design the hotels look, architectures, engineers, etc.

Capital
Entrepreneurship / Enterprise

A business capital can include, finance or investment for the business, machines, buildings, factories, etc.

The people who can organise the other three factors of production, which is Land, Labour, and Capital. The people are the managers who willing to take the risk and come up the innovatie idea to bring the company in the highest level of business success.

SWOT Analysis
Strengths

Genting Highlands is one of the big attractions especially to a foreigner who come to visit Malaysia. It is provides leisure and hospitality services, which comprise amusement, gaming hotel and entertainment. The strength of Genting Highlands is in great marketing programmed and strong brand image that can take advantage of the opportunity, which is to increase the tourist. Genting Highland also consider as a good location because it is near to everywhere and it takes like only less than one hours of driving away from Kuala Lumpur, the city centre of Malaysia.

In Genting Highlands, they have a five hotels at the resort which is genting hotel, highlands hotel, resort hotel, theme park hotel and first world hotel with a total about 10,000 hotel rooms and they are full house everyday. They are also including the genting convention centre for a meeting, any convention or exhibitions at the resort and also very famous with the casino. Especially during a night hours, we would never get bored because they still open the bar lounge, sports bar and also the safari so everyone can go and have fun in no time.

Weaknesses

As we know, Genting Highlands is a hill resort in Malaysia, and it is nestled on a mountain. So this can be effected by a global warming because it seems less showing because it is publics conscious issues towards the environment and especially when it is rain, so they need to wait or can play the indoor theme park only. It causes the problem to those who already bought the ticket with an outdoors theme park. Another benefits to educate the publics and make them feel confident with the environment on the harm of effect of global warming towards the Genting highlands. Especially, it would be a bad effect for those are coming for the first time and got no chance to play the outdoor theme park.

Opportunities

Most of the foreign Genting visitors come from Asia country such as Thailand, Singapore and China. The company more focus to improve the economic conditions of the market. Genting has also made further investments in other countries in developing its name as one of the international gambling and entertainment giant in the world.

Threats

After we have done with the research, we know that Genting can emphasize more on the uniqueness of having the best theme park and more excitement at a cool whether and can create something more interesting to the customers while having a weather problem. In the other hand, Genting also need to focus on their very close competitors because they are also faces increasing threats from gaming market in the region such as Macau and also in Singapore.

Market Assumptions
Marketing Missions/Values and Objectives
Marketing Strategy
Ansoff

Ansoff (1987) contends that ‘to survive and succeed in an industry, the firm must match the aggressiveness of its operating and strategic behaviours to the changeability of demand and opportunities in the marketplace’ (Thompson & Martin, 2006).

The Ansoff product/market growth matrix provides a simple way of generating four basic alternative directions for strategic development (Johnson, Scholes, & Whittington, 2008). Box A of Ansoff Matrix is an existing product with existing markets. Box B, the top right-hand one is a new product developed by the company with existing markets. Under the box A is box C, which is the existing products in the new markets. The last one is box D. In box D, what companies do is taking the full diversification, with altogether new markets and new products (Johnson, Scholes, & Whittington, 2008).

According to Andrew Leong, marketing manager of Genting group, Genting will have a new ride in anytime soon. The construction is on going. This means, Genting theme park developing a new product in the existing market (box B). He also mentioned that Genting is not just upgrading the theme park, sometimes they also improve the service and make it better. In the Ansoff Matrix, what Genting do is including in box A.

For the hotels, Andrew leong said, “By the time I do renovation in the first floor of the hotel done and it continue until the top floor, I will start to renovate in the first floor again”. From the explanation, the situation of the hotel business is include in box A. And it also can consider that Genting do an active continuously upgrading the business. They provide the best of the best what they can do for the customers and try to put their position ahead from other competitors.

In box A, it includes Market Penetration and Consolidation as the strategy companies used. Market Penetration is where an organisation gains market share (Johnson, Scholes, & Whittington, 2008).

While Product Development (Box B), involves thinking about how new products can meet customer needs more closely and outperform the products of competitors (Portkabin’s Case Studies).

Porters Generic Strategies

According to porter, strategies allow organizations to gain competitive advantage from three different bases: cost leadership, differentiation, and focus (David, 2009). Genting Malaysia Berhad can be categorized using the differentiation strategy.

Location

One of the uniqueness about Genting Malaysia Berhad is the location. The City of Entertainment is situated on the mountains called the Titiwangsa Mountains, which is on the border between Pahang and Selangor of Malaysia (Wikimedia foundation, 2012). Besides attracting Malaysia visitors Genting Highlands have attracted many people from various parts of the world; Marketing Manager Mr. Andrew has mentioned people from countries such as Dubai, Egypt, Saudi Arabia and Thailand, and the Philippines comes here to spend their holidays as it’s a beautiful place with great weather. Genting Highlands came up with a strategic idea by locating their entertainment destination in such area which is different from other competitors. Speaking of the weather, in Genting Highland since is located in the mountains area the weather temperature is not higher than 25 oC( Wikimedia Foundation ,2012) The weather can be described as amid cool misty mountains with spring-like weather year-round (rwgenting, 2012).

Hospitality and Service

Genting Malaysia Berhad has six hotels located in the mountains. The Maxims, Genting Hotel,Resort Hotels,Theme Park hotel, First World hotel and Awana Genting Highlands (rwgenting,2012). From here we can see that Genting Malaysia Berhad has gain its competitive advantage that no Hotels in Malaysia has come up with this strategic and secondly The First World Hotel is the largest hotel in Malaysia and 4th largest in the world with 6,118 rooms/suites available (Wikimedia foundation, 2012). There are few awards that Genting Malaysia Berhad has received this year and one of them are highest profit growth company under the trading/Services, Hotels, IPC and Technology Sectors category, awarded by the edge billion ringgit club. Last year they have also won Industry Excellence Award-Hotel Sector 2010/2011 by BASIS Publications House Sdn & Malaysia National news Agency (Bernama) (genting, 2011)

Theme parks and Entertainment

On the other side, Genting Malaysia Berhad has also gained its competitive advantage from the wide range of games and entertainment offered in Genting Highlands, the space they have provided for games only is over 200,000 square feet. Genting Malaysia Berhad is also known to be upgrading new and latest games for their theme parks that make them distinctive between their competitors. Genting Malaysia Berhad has recently invested in the new Snow World, the biggest winter wonderland in Malaysia with space area of 22.8K square feet and the one and only thrill game in Malaysia, the 4D Motion Masters (rwgenting, 2012).

In other ways to attract customers Genting has also held events for awards ceremonies such as Iffa Awards, Zee Cine Awards, Lux Style Awards and MTV Asia Awards (Wikimedia foundation, 2012). Mr. Andrew also said that he is indirectly marketing the Genting Malaysia Berhad through these ceremonies by having satellite to enable people in other countries to watch the award ceremonies LIVE.

Value Proposition

Their vision is ‘to be leading leisure, hospitality and entertainment corporation in the world’, (Annual Report 2008). Similar to their vision statement, their value proposition is to deliver the best of service to their customers especially their valued customers.

The Gentings Marketing Manager Mr.Andrew said that they take personal care to acknowledge the needs of their customers in order to build a long term relationship with them. He emphasized that they are looking at a very ‘friendly relationship’.

Digitalization has altogether made that very possible as their personal invites to events are sent out via emails, texts and there is a constant immediate response activity between the company and customers. The accommodation for valued customers is prepared to their personal interest and preferences in terms of food and beverages and other services.

As the resort is set out on the mountain with nature and a pleasurable weather, certain group activities are held in the midst of the rainforest or the cliff top overlooking an astounding view. Imagine having a corporate team’s outdoor activities with the tranquil sounds of nature, the scents and fragrance of flora and sometimes one may spot eagles, hornbills and other birds of paradise just cruising through the mountainous terrain. These are some of the customer valued moments that one may encounter in Genting, utmost exhilarating experience to those who hail from the hustle and bustle of the city lifestyle.

Directional Policy

Genting Highlands operates in two segments and they are: Leisure and hospitality, which includes the gaming, hotel, theme park, tours and travel, related to the bnty

Size of the Segment- The number of the customer in Genting Highlands are large. They are in too many category that you can see in the graph below :

Share Market – In this company, the Genting Highlands group has much brunch such as Singapore, because it is one of the major casino resorts, and also in Macau, India, New York and Australia and other more country. These are one of the strategies because it would better luck in the casino and healthy visitor arrivals to boost profits at the resort or any hotel in those countries. At the same time, they can promote and tell to the tourist that they can also travel in the same places but in other countries.

Current Market Share – Genting Company have investment for the racetrack in between US$70S million and US$730million based on US$380 million with the license fee and between US$325 million and US$350 million capital expenditure programmed. The US$250 million can be used to directly offset the capital expenditure, and the company’s net will be between US$455 million and US$480 million. The Maybank in Malaysia analyst said that it was a mere 3% earnings per share accretion which would give a low 6% return on equity on the intended multi billion ringgit investment in resort in New York. So we can see that the current market of Genting company is not focusing only on the one in Malaysia, or one country but they are very active in other countries also. The pretax profit from power increased 3 percent million ringgit on a higher tariffs in Malaysia and China, so at least they can cover whatever they have loss.

Profit Lift – The higher revenue was recorded at the group non-leisure divisions, particularly the plantation. For the plantation revenue, it is 53.8% owned the Asiatic Development amounted to RM249.50 million or the higher 93% higher RM 129 million a year earlier. The plantation company also achieved a higher crude palm oil and the selling price of RM3,403 starting from January to March against RM1,927 per tonne a year.

Marketing
Product
Price
Place
Promotion
People
Processes
Physical evidence
Budgets
Conclusion

The Phi Phi Islands are situated in Thailand, between the large island of Phuket and the western coast of the mainland. It is consisted by group of islands such as Phi Phi Don, Phi Phi Lae, Bidanok, Bida Nai, Yoong, Pai, the largest of which is named Koh Phi Phi Don, the only one with permanent inhabitants on. As a scene of a British-American film ‘The Beach‘ in 2000, this island came to a worldwide tourist attraction. Unfortunately it was trampled by the Indian Ocean Tsunami on December 2004, when almost every infrastructure on the island is destroyed. Till now, most of this has been restored and reopened to tourists all over the world.

As established a national park of Thailand in 1983, the islands feature beaches and limpid sea water are under the protection of local government. Tourism on Phi Phi, like the rest part of Krabi province, has developed only very recent years. It was so natural that only the most adventurous visited this island staying in only the most basic accommodation in the early 1990s. Nowadays, however, this island is becoming one of the major destinations for travellers in Krabi. Compared to other islands nearby, Phi Phi islands are still highly less exploded, where no road on the largest island while the others are completely free of human inhabitants. Hence visitors would enjoy their casual vacation without hustle and bustle. Based on its idyllic tourism resource, hiking, snorkelling and diving are the activities most highly recommended by every tourism agency company. Meanwhile fishing, rock climbing and cliff jumping are enjoyed among their specific participants.

Tourism System Identification

Before starting to write a management plan, it is necessary to identify resources of main destination. Resources include natural resources, culture, capital and organizations. Natural resources are climate, water, geography and scenery. Culture is about historic sites, cuisine, religion, local celebrities. Capital includes infrastructure, transportation and financing. Organizations are including public and private sectors.

Natural resources

O Weather

Phi Phi islands are located between the Pacific and the Indian. It is located about 50 km from Phuket. Because of its location, the weather is around 24°C to 32°C year round. From November to March is the best time to visit the island. However, local people enjoy from June to August. The reason is the weather is good and there are less people or tourists in famous sites.

O Water and Geography

In 1998, over 150,000 tourists visited Phi Phi islands and most of them are foreigners (Seenprachwong, 2001) because the Phi Phi has 3S. These are Sun, Sand and Sea. The sea is very beautiful and clean so that it is famous for scuba diving and swimming. The island is composed by limestone. Hence, it has a significant view of reefs. People even can see it clearly under the water. Moreover, in the south-east of Phi Phi Lay, there is a place called Viking Cave. The cave is full of wall paintings. Most paintings are elephants and boats. It is shown that people has lived in Phi Phi Island long time ago.

Phi Phi Don is the biggest island. In the north of this island, there is called Laem Tong. It is a best place for scuba diving. The plentiful, various marine ecology is the most important reason. Beaches such as Ao Lodalum and Ao Ton Sai are also good places for tourists to have a relax moment in Phi Phi.

O Scenery

As this report mentioned before, Phi Phi is part of National Park in 1983. In 1990s there are more and more people came to Phi Phi Islands. There are two reasons. The first is that it is near to Phuket. When Phuket is crowded by tourists, some people will come to Phi Phi for enjoying a relaxing and quiet time. The second reason is that the island, Phi Phi Lay is the scene of the movie “The Beach”. This place is Maya Bay. Some of tourists will come here to have sightseeing and have an adventure to experience sceneries of the movie.

Culture

Phi Phi island is belonged to Krabi Province. The population of Krabi is about 458,000 in 2000. 60 percent of people are Buddhists. 40 percent are Muslims. It makes the place with plenty of events. For example, there is a celebration called “Songkran Festival” during the Thai New Year. People will celebrate by visiting temples, sprinkling water on Buddha images for showing respects to Buddha, and sprinkling water on each other’s hands for wishing good luck. However, it becomes a water fight in recent years. Everyone is crazy to pull water on each other, no matter friends, strangers, or tourists. There is no exception that people will not get wet on that day.

The report has mentioned there is a Viking cave in Phi Phi Lay. The cave is full of ancient paintings. It is a place to discover ancient history. Because paintings include many kinds of boats, Chinese boats and European boats, this place might be a transfer harbour of trade or a shelter for mariners from storms.

Most of hotels and restaurants are in Tonsai. The famous cuisine in Tosai is seafood. People sell fresh seafood which is caught in the morning to attract tourists. After sun sinks into the sea, many nightclubs, bars are lightening up. Some restaurants only open in the night.

Capital

O Infrastructure

Since 1990, the tourism development makes this place more and more crowded. This development lets the environment in danger. When the movie “The Beach” filmed here, the company destroyed the environment by cutting down trees and planted coconut trees, building villas. This made a huge impact while tsunami hit Phi Phi islands in 2004. Most of buildings collapsed, around 70 percent. Thai government even prohibited people go to the island. After July, 2005, most buildings were rebuilt by government and about 300 shops and events started again.

After this natural disaster, Thai government started to plant trees which were big enough to reduce damages by natural disasters. Also, they proposed an agenda to protect local environment by limiting the development of hotels and setting up the limitation of tourists. However, local people were against this proposal. There were near 1500 hotels and restaurants opened again in the end of 2005.

Tonsai is the main place of tourists. There is a tourist information centre. There are few banks in Tonsai which is located in Phi Phi Don. However, there are no banks or ATMs on the east coast. People only can change or withdraw money here.

O Transportations

Phi Phi is near to Phuket and Krabi, only 50 km. There are two ways to go to Phi Phi. The first vehicle is ferries. People can take ferry form Phuket or Krabi. It takes 90 minutes. Moreover, people can travel by ferries with their cars. However, it only has two ferries each day. The other option is by speedboats. Companies are private. There are some speedboats companies to choose. It is more flexible then taking ferries. People can even get to their chosen resorts to save more time.

The inner roads of islands are small. The island is small, about 28000 km?. Hence, the most famous vehicle which people can use is bicycle.

Organizations

O Public

The number of tourists is increasing year by year. It was 2.5 million in 1981, and 11 million in 1993 to the national parkas. Because of this, the government revises laws year by year to solve the environmental problems. Hence, the Thai government had a proclamation of the Enhancement and Conservation of the National Environmental Quality Act. Of B.E. 2535 (1992). This Act is about prescribing how to manage, plan and maintain the environmental quality. There are some features of this Act, such as the polluter pays principles, designation of environmental conservation and protection zone, pollution control zone and special working group. Besides, The Tourism Authority of Thailand (TAT) had an event which could awake people’s awareness of environmental conservation. The authority used many ways to tell people how to protect environment, such as media, TAT’s publications and news. TAT also trained youth people to have knowledge of conservation. There were some campaigns which were held in tourist destinations calling people from every community to clean destinations, such as “Beautiful Phuket” project.

O Tsunami Warning System

Tsunami warning system is established in 1949. It is a system which can predict where tsunami happens and warn people to reduce damages. There are 26 countries and states joining the system. Thailand is one of members. However, before 2004, there is no detection system in west coasts of Thailand. That is one reason why Puket and Phi Phi Island had a huge damage. After this, the government set up the system in west coasts. In last year, there is about 14.09 million tourists from everywhere to Thailand.

O Private

After tsunami hit Phi Phi Island, a resident in Phi Phi gathered local Thais and foreign volunteers to help people to live. The group was called “Hi Phi Phi”. First, they cleaned up Phi Phi Islands. Then, they help local people to repaint houses, hotels and replant trees. They were essentials and hopes for restaurants, bars and guesthouses in Phi Phi Island to support their life. Now, their mission is complete. The group is trying to help local people for setting up charities. Charities can assist people to reconstruction and take care of orphans in a long-term.

Phi Phi Island is the renowned and alluring tourism destination in Thailand and in particular famous for its diversity of diving reefs and habitats. The regular tour activities of phi phi island include scene watching, fishing, diving, rock- climbing, sea kayaking and spas.

Management Plan

Ao Nang Tourism Strategy Steering Committee (ATSSC) is the regional institution based on Phi Phi Island and specific in exploring new tourism attractions; promote the resorts and public the up-to -date tourism information. ATSSC is the leader in achieving a sustainable tourism destination by balancing the economic profits and environmental, local cultural value in a regional and global context. The main target of the committee in 2010 is to project the “Phi Phi Island Tourism Development Program 2010”.

Objectives

First, combining the amazing natural resources and unique local cultures to foster the tourism industry as a viable sector of local economy(Stynes,D & O’Halloran,C,1987); to position the Phi Phi Island as the preferred four-season tourism and sports activities destination and build a recognizable even yearning image of Phi Phi Island among the travellers around the world.

Second, to encourage marketing initiatives that based on the existing tourism resources and comparative advantages to promote tourism development. On the premise of not ruining environment, the committee and local communities try to explore new activities to attract more staying visitors through promotion and provision of visitor infrastructures, tour services and characteristic events.

Third, to ensure the program is the well-managed process (D. Stynes & C. O’Halloran, 1987), keeping the tourism development with the carrying capabilities of the host community, balancing the needs of the travellers and needs of the local residence. The locals which live in the prime tourism location have great impact on the tourism development. One of the key objectives of the program is to gain a greater level of acceptance and support of local people, teach the locals to understand the impacts of tourism on local economy as well as to facilitate efforts to upgrade the quality of service, amenities and attractions.

Tourism is the pillar industry in Phi Phi Island, the committee aims to create more job opportunities and foster the investment through the program so as to enhance the viability and sustainability of local economy.

Tourism development is a systematic project which requires corporation among economic development agencies, the government representatives and tourism agencies(D. Stynes & C. O’Halloran,1987). One aim of the program is to gain genuine willingness to promote greater cooperation as well as to share responsibilities among different social sectors to facilitate the feasibility of the objectives and achieve the best results.

AlternativesGeneration

To generate tourism development alternatives requires some integrated analysis of local resources and demands of visitors. The committee present three tourism development plans as below:

O International Water Sports Centre:

Phi Phi Island is the most attractive scuba diving destination in Thailand because its tranquility privacy and its bespoke diving pier.(McGeown K,2005) The uniqueness of diving in Phi Phi Island compare to other islands in Krabi province are the amazing limestone cliffs drastically straight jutting out of sea and down to the sea as well as its diversity of diving reefs and habitats. On the basis of advantaged natural resources, the committee schemes to build Phi Phi Island as the world renowned Water Sports Centre (WSC scheme) covers from diving, snorkelling to sea kayaking.

O Wedding Paradise:

Phi Phi Island is the delightful place that full of cultural flavor and receives much exposure from Hollywood movies. The Maya Bay is the original setting place of love movie—“The Beach” starred Leonardo Di Caprio and “The man with golden gun” with James Bond. The remarkable natural scenery not only attracts the big names, the alluring local culture also fascinates the new couples and honeymooners around the world.

Infinite business opportunities hide in the pristine beach and crystal clear water, the ATSSC committee projects a theme tour that target on the young people, in particular the young couple to cater for the weddings and honeymoon services. This proposition will not only attract more staying visitors, but also drive development of related industries such as hotels, restaurants and bars and ferry industries.

O Ultimate Wellness Sanctuary:

The Phi Phi’s natural beauty is a large chunk of allure that attracts visitors from all ages. The path behind the Tonsai Village is the ideal position to view the classic landscape, and the long beach is super excellent for the view of sun rise and sun set. After one day’ trip, having an energy-enriching treatment is the fantastic enjoyable finish. Phi Phi Island is one of the origins of Thai Spa due to its rich natural materials include flower extracts, plants oils, sea weeds and fish-roe. The committee proposes to upgrade the spa treatment on Phi Phi Island to an upper class on the basis of pure natural resources and traditional massages. Transform the spa industry from the tourism supporting business to the core local industry.

Alternatives Evaluation

It is important to evaluate the tourism development alternatives from the feasibility analysis and impact analysis with the “Benefits and Cost” approach which link the tourism activities with the stability of local economy, the sensitivity of environment and social structure (Walsh, R.G, 1985). The tourism development program impact on Phi Phi Island as below:

Impact on local government: local government takes the major responsibilities to provide the infrastructures and services that key to tourism development. Developing the new tourism project can push government to ensure the carrying capacities, infrastructures that to meet the anticipated demands. Phi Phi Island has rich storage of natural resources and its tourism has developed more than two decades, in particular the diving industry has grown maturely. The new tourism project will reduces the capital pressure of government and increase the government revenue through charges, sales and taxes. (Stynes, D.J, 2004)

Impact on local business: The tourism development can directly serve the community benefit and drive related industries. The diving centre can attract more divers that stimulate the development of local transportation; the wedding services drive the growth of flower planting and the spa industry generate more job opportunities for skilled locals. However, the key point for tourism development is the more “self-sufficient” the community is, the better the tourism impact. (Stynes,D.J, 2004) For example, although Phi Phi Island has the fantastic diving sites, the necessary diving equipments are mostly imported from U.S, Europe and Australia. If these products are bought to mush from outside, the large amount of tourist spending will leak out of the local economy.

Impact on environment and residence: The quality of environment and life may go up or down depends on the way of tourism development. (D. Stynes & C. O’Halloran,1987) Developing Tourism may generate more job opportunities and increase revenue as well providing more retailers, hotels and restaurants; however, from the other hand, it also mean the higher living cost, busier traffic and higher tax, and the possibilities of environmental damage. (D. Stynes & C. O’Halloran,1987) In addition, tourism is the season-sensitive industry, and tourism work are basically in service sector and most are seasonal, part-time and low wage. The local government and tourism committee should balance the benefit and cost of tourism development and make a sustainable and strategically tourism development plan.

Tourism Development Decision

Tourism development plan should consider the relative roles of social sectors and involve a series of decisions. The ATSSC project the tourism program from four aspects.

Segmentation: Phi Phi Island is the alluring destination full of natural resorts and cultural mystery that attract the customers from all age groups all over the world. The target market of new tourism program is more precise based on the demographics and interests groups. Phi Phi Island is famous for its diving and sports, the committee aim to build the Phi Phi Island as the paradise of young people who love sports and beauty and are keen to spend indelible holiday in the pearl of Andaman Sea (Xinhua,2006).

Place: The destinations of Phi Phi Island program include the Phi Phi Don, Phi Phi Lee and the group islands. The key to perfect the local tourism is to regulate and improve the transportations among the different diving sites and attractions by combining the ferries, fast boat with the traditional boats as the uniqueness of local tourism.

Upgrade the local attractiveness:

O Diving:

The Phi Phi Island will offer the remarkable variety of diving possibilities to different degrees of divers from beginners to expertise. The local diving club will provide four-hour “Discover Scuba Diving” to the beginners that introduce the basic skills, the equipment instructions and accompany the divers all the time to experience the beauty of white coral bush. For the divers who want to be certificated divers, the club will advise them to join the “Dive the globe” program to take further experience in the most popular diving site— the Ko Bida Nok to appreciate huge garden of star corals and incredible beauty of anemones as well to play with the clown fish. For the certificated divers and PADI divers, the club tailors the special activities and guides the divers in small groups in speedboat and long tail boat to experience the specialty dives. (Udomsak,S,2003)

O Snorkeling and Sea Kayaking:

There are abundant coral reefs systems around Maya Bay, Pi Leh Bay and Bamboo Island that fantastic for snorkeling. Kayaking some uninhabited beaches and Viking caves in other islands is also the glorious alternative to the adventure potentials and addition to the overall water activities.

O Wedding and honeymoon service:

No one can reject the wedding with serenaded by sea gull and waves on a tropical pristine beach, massaged by soft sands and warm water from Andaman Sea. The tourism committee closely connected with the local premium hotels will offer one-step wedding services with world-class hospitable residences, fresh and colorful flowers and lovely weather. There are variety wedding package can be chose, from economic to luxury all guarantee to leave you the scared and memorable wedding.

O Ultimate pampering spa:

On Phi Phi Island, the visitors can experience the authentic Thai style spa in the atmosphere of tranquility. Phi Phi Island has its favourable natural advantage that has a rich storage of natural material, however, the massage parlours lack the unified standards and regulations to ensure the quality of service. The committee projects a training program for all the massage parlours on Phi Phi Island include the security check of environment, quality check of massage products, the certification of skill workers; the program does not mean to standardization of the spa service, on the contrary, the committee encourage the massage parlours to offer the unique services on the basis of security.

Expected results

The program will be launched on May, 2010. In the initial period, the committee and local government will focus on completing the local infrastructures and improving the carrying capacities to satisfy the increasing demand of anticipated visitors. With the international water sports centre completed, the committee anticipates Phi Phi Island will become the key all-round tourism destination in Andaman Sea.

Tourism is a systematic industry, the committee hope to take advantage of new round tourism development program to drive speed growth of local service business, transportation industry, generate more working opportunities as well to build the goodwill image of Phi Phi Island around the world.

Sustainable Development

Considering the graceful scenery given by earth, it is absolutely a competitive advantage for their tourism industry. However, small island ecosystem is less complicated hence fragile, even slightly changes may cause the collapse the whole food chain on this island. Without mentioning the careless visitors from every corner of the world, the most careful travellers would leave their trail by hiking, diving, or even simply breathing. For example, a new exploring route through jungle might threaten the small animals feeding on bugs and worms, would directly cause the drastically rise of natural enemies to plants. Under the circumstances of spices singularity of small ecosystem, such change is fatal.

Then how to protect the environment while making fully use of its natural resources is the question facing to authority. First of all, environmental protection awareness should be engraved on everyone’s mind. There should be consideration of environment protecting details through every step of development. From raw materials of building infrastructure to conspicuous signs at which remind travellers and even emission control of transportation, are basically demand. Second, accompany with the increasing tourism industry, a comparative rise of local inhabitant is a vital strike on ecosystem. Instead of restricting people moving onto the small island, it is wisely for authority to encourage local resident moving out, meanwhile providing more convenient transport. At last, there should be a visitor quantity control system. Providing different promotion and differentiating events, to avoid a capacity overload, which would lower the customer satisfactory and even lead to environment disruption. Apparently, there would be a conflict between sustainable development and profit maximization, however, it refers to improve reasonably and continuously.

Conclusion

Based on the identification of Phi Phi Island tourism system from variety resources including natural, culture, capital and organizations, this report set up series of objectives. In order to fulfil fostering the tourism industry with a combination of natural resources and local culture, encouraging promotion on existing tourist activities, and developing local economy through providing more job opportunities and attracting investment, several alternatives were generated. But these alternatives may influence the stability of local economy and environment. After evaluation of the impacts on different aspects from those choices, this plan made appropriate modifications to accomplish goal.

In the end, a successful alternative requires thoroughly resources analysing and impacts predicting with a sustainable implementation, so that achieve the initial objectives.

Two of the most general environmental laws are: Presidential Decree No.1151 known as The Philippine Environmental Policy and Presidential Decree 1152 known as The Philippine Environmental Code. Both laws were made during the reign of the late president, Ferdinand Marcos. The Presidential Decree No. 1151 aims to preserve natural sceneries and natural resources without restricting technological and industrial growth of the Philippines. It stated in section one of this given Presidential Decree that the goal of this Policy is to create a community that can develop, and enhance its economy without jeopardizing or sacrificing stability of the natural environment. It is also stated in section two under the same Presidential Decree that the government and other private organization should encourage and promote preservation of historic and cultural aspects of the Filipino heritage. The healths of individuals living within the area of Philippines are also being considered in this Presidential Decree. It is the right of everyone to have a healthy environment; therefore, everyone is also responsible in preserving the country’s environment.

In the Presidential Decree No. 1152 or known as The Philippine Environment Code are several sections that set standards, measures and proper management of the country’s natural resources, and other environmental aspects. Under Air Quality Management, Title one of this Presidential Decree are thirteen sections that focuses generally on air quality. Smoke emission can be arguably considered as the number one cause of air pollution and in section four under Air Quality Management, it is stated that there should be a national emission standards that shall be met by every industry and by every single person residing within the country. Noise pollution is also categorized to air pollution because sound waves travels through air; and still under Air Quality Management of the Philippine Environmental, sections four and five tackles the Community Noise Standards and Standards for Noise-Producing Equipment respectively. Both sections are requiring standards to minimize noise levels. There are several agencies responsible in enforcing these standards, and these are the National Pollution Control Commission, Land Transportation Commission and other government and non-government agencies concerned. Under this Presidential Decree is Title two which is the Water Quality Management, are the classification of Philippine Waters, where basic information about a certain body of water are taken into consideration for it to be classified; establishment of water quality standards, where the National Pollution Control Commission prescribes guidelines given by the National Environment Protection Council; upgrading of water quality, Clean up operations, and water quality monitoring and surveillance, where government agencies responsible shall monitor water quality in the country. Title three of this decree is the Land Use, the purpose of this title is encouraging conservation of land resources and to prevent imbalance in the environment. In section twenty three of this Presidential Decree, the national land use scheme includes: scientific land inventory and classification, determination of land uses, adaptability of land, method of identification of areas and exercising control by government agencies over use of land, system of controls and regulations regarding the possible sources of pollution and a periodic revisions and updating of national land use scheme.

As the demand for the quantity of a product or service gets higher in every industry, the demand for natural resources also goes up. The required raw materials by indutries are already causing damage to natural areas, and make the scarcity level for natural resources extremely high. The Natural Resources Management and Conservation under Presidential Decree 1152, aims to give the basic management and conservation of the Philippines’ natural resources. It is in this chapter that the government shall implement a system of preservation and conservation of wildlife resources and aquatic resources within the country’s area; where participation and contribution of citizens are highly encouraged. In addition, the conservation of forest resources is integrated to the system of exploitation, where the system includes regulating the selling of threatened forest resources. It is in this chapter that conservation of other natural resources like, energy sources, surface ground waters, and mineral resources.

It is in the same Presidential Decree where proper waste management is discussed. It is the Title Five or Waste management, and it aims to promote recovery, recycling and re-use of wastes to maintain the stability of the environment. In Section forty three of this Presidential Decree, waste management programs are discussed, these programs implies to all provinces, cities and municipalities. It is the responsibility of the Department of Local Government and Community Development to formulate and set guidelines for the proper waste management in their respective areas. All programs will include: an orderly system, provision that the program will not be a source of pollution of any kind and a provision for revisions to achieve effectively. Proper disposal area of these wastes is also tackled in the title, where the location shall follow the existing zoning land use standards and pollution control regulations.

The significance of acquiring knowledge regarding the environmental laws of the Philippines prior to entering the industry is under rated by most of the students. As future members of the hospitality and tourism industry, it is very essential to learn and be equipped with the knowledge of these environmental laws, because natural resources are essential to any industry. Therefore, learning how to preserve and retain these natural resources is crucial to us students. The hospitality and tourism management students are highly affected by these laws to be aware of current environmental concerns, and be knowledgeable on the different rules and regulations that can be applied in the future whether as employees or employers. These laws are important as we plan to create and form our own businesses especially to our industry which greatly relies on the resources available in nature. For Travel and Tourism Management students, these laws are their guide lines in conducting tourism destination plan development, wherein sites and destinations are analyzed and knowing the prohibitions and regulations for the certain area is very imperative. For Hotel, Resort and Restaurant Managements students, the importance of these laws is as important as it is to the Travel and Tourism Management students. These laws provide regulations as to how hotels, restaurant and other similar establishments could promote and apply rightful acts in nurturing the Philippinesaˆ™ natural resources. These laws also sets the standard on how the establishment operations would work without harming and creating imbalance in the environment, but rather retaining its value and even enhancing it.

The hospitality and tourism nowadays may be referred as one industry and is currently considered as the world’s fastest growing industry. It is a collection of separate industries that can stand on their own but complements each other. It is subdivided into several industries like lodging, transportation, food, recreations and other industries concerned. Like any other industry in this country of Philippines, the hospitality and tourism industry has its fair share of responsibility in protecting and preserving the country’s natural resources; and taking part in the improvement of current environmental concerns while sustaining economic growth.

The people in the industry can start their roles in the improvement of the country’s environmental issues by reading and being knowledgeable and educated about the current environmental laws of the Philippines. Transportation, one of the sub-industries under hospitality and tourism, can help in the issue of air pollution through being responsible with the smoke they emit during the business operations. Operators and drivers of public vehicles, and travel agency owned vehicles like tour buses and vans should always check and maintain proper conditioning of their vehicles to avoid excessive emission of smoke or smoke belching. They can also adapt to the current trend of using low fuel consuming vehicles, electric powered vehicles that don’t emit smoke and other existing technologies that are dedicated to decrease or extinguish smoke emissions of vehicles. Airlines can also help the fight against air pollution through meeting the standards of the National Pollution Control Commission and Civil Aeronautics Administration regarding the harmful effects of aircraft emissions, sonic booms and noise pollution to the environment.

Hoteliers, restaurant owners and other proprietors planning to build and start a business should comply with the rules and regulations of the Department of Environment, and Natural Resources if any tree will be cut upon the construction of the establishment. They should be responsible in planting more trees that would act as replacements for the trees that would be cut. Restaurants or any establishment that offers food should also be aware of what they serve to their guests. By not offering dishes or goods made of threatened or endangered species, they are already helping in protecting the wild life. Through offering and patronizing organic ingredients, food establishments can already protect the lands or soil of an area. This can eventually have an impact or can lessen the use of artificial fertilizers and pesticides that can greatly affect the fertility and health of the soil.

Proper waste management should also be exercised by hospitality and tourism establishments. Through segregation of wastes or garbage can hugely and positively affect problem in wastes. Food establishments can also decrease the usage of disposable utensils, plates and replace those with reusable things necessary to the business operations. Recycling of garbages is also a good way of waste management. Establishments may use their garbages to create something useful to their operations. Patronizing products that have chemically altered compositions that makes them degradable like the technology used on plastic bags and other plastic products that causes these products decompose faster compared to the average decomposition time of ordinary plastic products.

One of the trends nowadays in the tourism scene is the eco-tourism, this focuses on promoting ecological preservation while enjoying the beauty of nature. The emerging market of tourists who patronizes eco-tourism means the industry is using its influence and marketing strategy to promote tourism and preservation of natural resources at the same time. Through eco-tourism, natural resources are being preserved as well with the income generated by this trend.

Bounded by the lofty heights of the Himalayas, Nepal is a country of eternal beauty and attraction. It is a land of interesting cultures, ancient history and indigenous people, picturesque scenery and some of the greatest walking on earth. It is universally known for the highest mountain peak of the world, Mount Everest that stands tall at 8848 meters. Nepal tourism notifies about places to visit in Nepal, Lumbini; famous for the birthplace of Gautam Buddha who laid the foundation of Buddhism in the country. Having rich traditions of art, historical sites, customs, culture and heritage, Kathmandu, the capital city of Nepal is a treasure house of ancient art and culture.

Different article, Books, international publication and organization has mentioned that, Nepal is one of the most visited travel destination in South Asia. A report published by Lonely Planet names top ten destinations for 2010, Nepal is one the best destination including El Salvador, Germany, Greece, Malaysia, Morocco, New Zealand, Portugal, Suriname and USA [1] . Similarly, Magazine Current Issue December 2009/ January 2010 published by BBC, National Geography, had searched 200 top-rated travel destinations of the world and selected the best 25 destinations for 2010. Nepal is one of the best destinations out of 25 [2] .

Reactions of residents concerning tourism

Figure 3 shows a matrix representing the attitudes and behaviour of local residents of the region to tourism. The matrix is based on the framework developed by Bjorklund and Philbrick (1972) and applied to tourism (tourist-host relationship) by Butler (1980) [3] . The two dimensions of analysis are the attitudes of local residents towards tourism (positive – negative) and their behavioural responses (active – passive). Attitudes and reactions of individuals change in time, according to the process of tourism development in an area.

Host Attitudinal/Behavioural Responses to Tourist Activities in the Region
(% of the Population)
Active
Passive
Positive

57.7

17.4

Negative

4.5

13.6

In the Khumbu, Pokhara (including Annapurna), Chitwan and Lumbini regions, the majority of residents (57%) actively support and promote tourist activities and tourism development in the region (mainly by running their own tourist businesses, but also by other means, e.g. learning languages in order to be able to communicate with tourists, or trekking with tourist in trekking routes). Besides, only 5% of them oppose actively further tourism development in the region (mainly for environmental reasons).

The remaining 6.8% of the population have neither positive nor negative attitude toward tourism development.

10.1.1. Tourists and Motivations

“A tourist is a person who travels for various activities form origin to destination with some period. The movement could be inside the country or outside. Similarly, the people who travel and stay in places outside their usual environment for not more than consecutive year for leisure, business and other purposes not related to the exercise of an activities remunerated from within the place visited” [4] http://www.traveletour.com/.

Why do tourists visit certain places? By overlooking in academic approach given by Dann (1981) [5] , listed seven elements:

Travel is a response to what is lacking yet desired.

Destination pull, in response to motivation push

Motivation as fantasy- behavior not culturally sanctioned at home

Motivation typologies: a) behavioural, such as sun worshipping or wanderlust and, b) typologies focusing on dimensions of the tourist role

Motivation as classified purposes

Motivation and tourist experiences-includes the authenticity debate

Motivation as auto-definition and meaning

Similarly, McIntosh et al., 1995, utilize four categories of motivations, physical, cultural, interpersonal and status and prestige motivators.

In the case of Nepal, generally all international visitors are clubbed under the category of tourists. However, these visitors-cum-tourists visit the country for various purposes ranging from pilgrimage to purely official purposes. All of them spend money while they are in Nepal; they are contributing to this Himalayan economy. Therefore, such range of visitors might be put under the category of tourists. Nepal government has classified the categories of tourists according to activities, like pleasure, trekking, mountaineering, adventure and cultural activities, natural or eco-tourism activates business, education, health etc. (Agrawal, 2005, Tourism and economic development in Nepal).

Nepal is best destination for pleasure trip and adventure activities as well as natural and cultural tourism. It is followed by trekking and mountaineering. The two together accounted for around 90 Per Cent of the total tourists’ arrival before the nineties. Since, 1990 the average share has been around 80 Per Cent of the total. It is clear from the above data the major purposes of tourists in Nepal are pleasure, trekking, mountaineering and adventure activities before 1990. After that, new types of tourists also found in Nepal like cultural tourists (Pilgrimages), study and research, meetings and seminar, and health, since 1991 have shown growth rate of these types of tourist 8.22 and 9.12 per Cent of respectively. By the year of 2007 and 2008, largest number of tourists 41.4% tourists were visited for adventure activities and average length of stay in the country was recorded 12 days.(Source; calculated from several issues of economic survey, Ministry of finance, HMG/N)

On the basis on empirical data, the motivations of tourists were different according to the study areas. Tourists in the mountainous region like Khumbu and Annapurna are interested on adventure activities. Similarly, tourists in Lumbini, Janakpur and Kathmandu valley are interested on cultural pilgrimages. Again, tourists in Chitwan are interested on natural activities. However, majority of tourists agree on, adventure activities.

“Trekking is the gift of Nepal to the world in adventure tourism. To be one with nature, to regenerate one’s own self-esteem, to rediscover oneself, to appreciate Nepal’s beauty, to interact with its hospitable and friendly people are some of the highlights of trekking in Nepal. Trekking is one long-term activity that draws repeat visitors to the country. Possessing eight of the ten highest mountains in the world, Nepal is hotspot destination for mountaineers, rock climbers and people seeking adventure. Therefore, Nepal is the ultimate destinations for the trekking enthusiast. So these are the characteristics of Nepalese tourism, to attract us again and again.”

A German couple, who has visited Nepal more than seven times in Khumbu region.

“Well, Nepal is excellent destination for natural tourism, having highest mountain, varieties of biodiversity, and unique geographic structures are the major attraction for us.”

A group of tourist from USA in Chitwan

“Nepal has many unique cities for tourists like Kathmandu and Pokhara. Kathmandu valley is one of the oldest city with full of religious and cultural heritages, city of living God and Goddess and capital city of Nepal with full range of historic and artistic achievement. Therefore, Kathmandu Valley is world famous. The seven touristic areas (listed in world heritages by UNESCO), the Durbar Squares of Hanuman Dhoka (Kathmandu), Patan and Bhaktapur, the Buddhist stupas of Swayambhu and Bauddhanath and the Hindu temples of Pashupatinath and Changu Narayan. The Kathmandu is an exotic and fascinating showcase of a very rich culture, art and tradition. Again I am very much interested to know the Hindu and Buddhist society and culture; therefore I travel to Nepal frequently.”

A tourist nearby Kathmandu Durbar Square

“When I was in school, I read a book; Nepal is only one Hindu kingdom in the world, only one Hindu kingdom (no more now) For me it was interesting because I know many Christian and Muslim countries but not only one Hindu kingdom, so I have desire to visit Nepal form school level, and finally I am here now.”

A French tourist in Pashupatinath, Kathmandu

“Nepal is holy land for us, because this is the land, where Lord Buddha was born. We are happy to visit Nepal, especially Lumbini (the birth place of God Buddha).”

Around 60 tourists (in-group) from Sri Lanka in Lumbini

“Nepal is best destination for us because, God Pashupatinath, many Hindus temples, religions and cultures are attraction for us so, once a year we visit Nepal.”

A large number of Indian tourists in Kathmandu, and Janakpur

“The Mountains, landscape, and silence natural heritages are the god gifted monuments of Nepal, I love it and that’s why I am here.”

A German scientist in Chitwan

Therefore, according to empirical data, Nepal is the best destination for adventure activities like mountaineering, trekking, natural heritages and many more. Similarly, having majority of Hindus people and its related culture, tradition, temple and more phenomenon, and being the birth of God Buddha, Nepal is significance destination for cultural tourism too.

10.1.2. Major touristic destinations in Nepal

Roof of the world, home of the Gurkhas, land of legend and beauty: within its narrow confines, Nepal contains as amazing range of culture and physical environments offers the visitor and abundance of contrasts and the experiences. A unique landscape unequalled in beauty and variety, cultural diversity, aesthetically built monuments, rugged beauty and tranquility of snowcapped shimmering mountains, serenity and placidness of the lakes and valleys, an unmatched collection of flora, fauna and wild life, diverse races, ethnic groups, dialects and languages all combine to make Nepal a visitor’s dream come true.

Formally, It is also known as the Himalayas kingdom, possessing 8 of 10 heights mountain of the world, unique combination of Buddhism and Hinduism and its phenomenon are always attraction for tourists. Some of the major tourist destinations in Nepal are mountain regions; include the beautiful cities of Kathmandu, Bhaktapur, Patan, Pokhara and other sites. The places in Nepal are known for their various historic sites and sightseeing. Tourists must visit the Royal Chitwan National Park, Nagarjuna Forest Reserve, Pashupatinath, Dakhshina Kali and many more.

Ashok Vyas (2004) Nepal Darshan, indicated, the main touristic areas of Nepal are mountain regions, particular khumbu and Annapuran followed by, Pokhara, Lumbini, Kathmandu Valley, Chitwan and Janakpur. Again, small amount of tourist were interested to visit different parts of the Country.

On the basis on empirical data, the researcher came to know that, tourists indicated different destinations according to their interest. Western tourists were interested to visit mountain regions but Asians were interested to visit cultural sites. In general, Majority (80 out of 100 respondents), were interested to visit mountain areas like Khumbu and Annapurna and they were involved in adventure activities like mountaineering, trekking and rock climbing etc. In addition, 61 out of 100 tourists were interested to visit religious and cultural heritages like Lumbini, Kathmandu Valley and Janakpur. Similarly, 48 out of 100 respondents were interested to visit natural heritages; Chitwan and the Mt. Everest. However, both of them were interested (88 out of 100) to visit lovely city Pokhara. Figure 5.12

Fig. 5.12, major touristic areas of Nepal visited by tourists

Source: Field Study

Mountain Area= Khumbu and Annapurna Region,

Pokhara= Holiday, recreation and adventure

Cultural Sites= Kathmandu valley+ Lumbini+ Janakpur

Natural Heritages= Chitwan and the Mt. Everest

With the help of above empirical data, the researcher agreed on Nepal has been a best destination for adventure tourists. Similarly, pilgrimage (Cultural phenomenon) has been introducing a new kind of tourism destination in Nepal. Lumbini, the birthplace of Buddha, could be an important destination for Buddhist people. Besides there is a famous shrine of Lord Pashupatinath at the Kathmandu and many other Hindus monuments all over the country could be the attraction point for huge Indians.

10.1.3. Nepal, an economical (cheaper) destination

Nepal is the poorest and least developed countries in the world. More than 45 Per Cent of people are under the poverty line. Agriculture is the pillar of the economy, providing a livelihood for majority of the population and accounting for 38% of GDP. The unemployment rate of country is more than 45 Per Cent in the year of 2008. The per capita income of the county by the year 2008 was $473. Asian Development Bank, 2008. The current situation of foreign exchange rate against euro is more than 100 Rupees.

Moscow, the capital city of Russia, is the most expensive city for travelers, followed by Tokyo, Japan. There is not any city or place from South Asians countries, which is expensive for tourist (Source; www.travelersdigest.com, 2009-7-20). Nepal could be one of the cheap destinations for tourists, Upadhyay, Rudra (2006).

“On my personal experiences, Nepal is cheaper destination, because now I am in Namche Bazaar, 3,440 m, local residents said that this is an expensive place for tourist. However, I do not feel so; I am paying $ 20 for a hotel per day, 5 to 20 Dollars for food, which is normal for me. If I were in Switzerland, I have to pay huge amount of money.”

Tourist in Namche Bazaar, Khumbu Region

“Within few moments, I will be in the sky by Paraglide, I paid around 100 euro. But, in Switzerland I have to pay five to seven times more for same thing.”

A German tourist, in Sharankot, Pokhara

“When I was applying visa for Bhutan, I proved that I can spend more than 200 US Dollars a day; this is rule of Bhutan government. But, look in Nepal no condition like this. Again; I am spending less than 50 Dollars a day, which is enough for me.”

A tourist in Pokhara

Similarly, the researcher collected data from tourist on ‘Nepal visit and tourist’s budget’. Majority of respondents (54 Per Cent) were reported, Nepal is cheaper destination followed by, 30 Per Cent; middle and rest 16 Per Cent reported expensive. Figure 5.14;

Figure 5.14, Nepal visit and tourist’s budget.

Source: field study

Therefore, on the basis on empirical data, the researcher found that, Nepal is the cheaper destination for tourists.

During the field study, the researcher asked to the tourists, what amount of money are you planning to spend in Nepal. Majority of respondents ( 38 Per Cent) were reported up to 2000 US dollars, followed by 35 Per Cent; 2000 to 3000and rest 27 Per Cent more than 3000 US dollar, Table 5.13.

Table 5.14, Amount of money tourist wants to spend in Nepal

Source; Field study

Average length of stay of tourist is if on higher side they will spend more money. Thus, more money brought by international tourist would be pumped in the local economy. The average length of stay by a tourist during 1975-90 had been 11.87 days that declined marginally to 11.23 days in the following period of 1991 -2000 and around 12 days in 2008 and 2009 [6] . However, during the data collection the researcher found variety of data.

Fig. 5.13, Average length of stay

Source: Field study

In average, tourists were interested to stay in Nepal around 20 days. Based on the answers given by local people and tourist, it was found that majority of respondents 84 % (210 out of 250) reported that average length of stay of tourist in tourist areas was 20 days (Fig. 5.13).

XI
CHAPTER
SUMMARY OF FINDINGS AND RECOMMEDATION
Title: Page No.
Overall review of the research 214
Summary of the findings 215
Recommendations 218
11.1. Overall review of the research

Chapter 6 provides an overall review of the research aim, objectives, research questions, issues, findings, conclusions and recommendations of this study. Chapter 6 begins by summarizing the background to the research, and the research purpose, methodology and findings. The researcher goes on to make explicit the contribution of this study to the discipline of Socio-cultural and economic impact of tourism in the process of globalization in Nepal. Suggestions are made for future research based on the theme of this study. The chapter concludes with key recommendations for Socio-cultural and economic impact of tourism in the process of globalization in Nepal

The present researcher has attempted to fine out, “Socio-cultural and economic impact of tourism in the process of globalization in Nepal.” It is divided in five major topics with subareas. The first topic is introduction. This chapter has included the introduction, theoretical concerns, hypothesis, aims and objectives, statements (importance), research methodology, and data sources and data analysis model of present research. The key aspect of this chapter is research issues.

This research has three major issues: change in socio-economic setup of Nepal due to globalization and tourism; cultural globalization due to inflict of tourism but also due to globalization in general, and perception of Nepal by tourists. Under the first issue: socio-economic inequality, impact of tourism on Nepalese economy, development and change in touristic areas were the major points for analysis. Similarly in second; impact of global tourism on food, drinks, clothing, languages, family structure and everyday life; tourism and socio-cultural change in Nepal; types of globalization and homogenization adapting by Nepalese by tourist or tourism were major points. The last or final issue of this research was; important and interesting fact of Nepalese tourism for tourist was main phenomenon.

Research methodology is another important subarea of this research. The nature of this research is qualitative cum quantitative (mixed approach). The study areas of this research were major six touristic places of Nepal Mt. Everest National Park (Sagarmatha), Pokhara with Annapurna area, Lumbini (The birthplace of Lord Buddha), Chitwan National Park, Janakpur and Kathmandu Valley including Lalitpur and Bhaktapur. The total numbers of interlocutors of this research were 250 including local people (40 Per Cent), Tourist (40 Per Cent) and jobholder in tourism (20 Per Cent). Questionnaires, interviews, observation, case study and discussion were used for data collection on August to December 2008 and October 2009 to January 2010. The data analysis has been performed by using computer software like Excel, SPSS one way ANOVA and T-Test according to their necessity.

Chapter Two is the collection of theoretical literature review. This chapter has explained the all-important terms and variables of this research. Similarly, chapter Three is the detail explanation of culture, people, land and society of country of the great Himalayas (Nepal).

Chapter Four covers complete data analysis of this research. This covers general demographic (Age, Gender and Education) information of the respondents: tourism, globalization and its impact on Nepali economy, society and culture with different subareas and perception of Nepal by tourist.

Similarly, Chapter 5 includes the summary of findings and suggestions and end part includes references.

In conclusion, tourism is not a new phenomenon in Nepal. The county has welcomed tourists officially since 1953. Tourism has been a significant pillar in the country’s economy and the government using for socio-economic development of rural areas in Nepal. It was the aim of this study to address the important issues related to tourism and impacts in Nepal. The focal point, how residents evaluate the economic, social and cultural impacts of tourism on their community was examined. The final section dealt with the perception of Nepal by tourists.

11.2. Summary of the findings

Tourism is an important process of socio-economic and cultural globalization. It has both positive and negative impacts on society, economy and culture of destination. The truth is that tourism has become one of the largest and most rapidly growing industries in the world by combining social and economic activities. The industry fosters development and affects the people and the place. Impacts of tourism could be positive or negative according to the degree of planning and the level of involvement of local residents in the development process. The outcome is dependent on the relationship between the local residents and the site.

On the basis on data, it has both positive and negative impacts according to places regards to the impact of global tourism. The people are in Khumbu, Annapurana, Chitwan, Jankapur and Lumbini believe that tourism does not contradict religion or traditional customs; they are of the opinion that it has no influences on their daily life or their patterns of consumption. However, the people from Kathmandu and Pokhara Valley are strongly addressed there is huge impact of tourism and tourists’ activities on local culture, society, traditions, food, languages and everyday life. However, in general all respondents fell that it could influences in food, language, clothes and younger generations more. Finally, residents believe that tourism could be a solution for unemployment, poverty, income, and socio-cultural changes.

It was found that tourism plays the important role in the Nepalese economy. Tourism has playing quantifiable and positive effects on the development of GDP of the country. It has been increasing the economy of the country in general and as a whole. The increase in the volume of tourist flow has direct as well as indirect impact on the development process of Nepal. Nevertheless, tourism was found to be more capital investor and employer in Nepal

In general, tourism has both positive and negative impacts, but majority of residents have a positive attitude toward tourism and they believe that it can develop their communities, like main source of income, job, poverty alleviation, source of foreign reserves and revenue, and national and local business. People involved in this profession have found better life compare to others. They have better opportunity of employment, income, education, quality of life and many more. However, the largest economic impacts of tourism are experienced by the residents near the Khumbu, Annapurna, Pokhara, Lumbini, Chitwan, Janakpur and some part of Kathmandu Valley, while people living in remote areas and in off-site of tourist areas or routes could not reap the benefits of tourism as they have very limited things to offer. Thus, this is clear, tourism increasing socio-economic inequality among the Nepalese.

A side effect of residents expecting profits is that locals evaluate tourists according to their expenditures, potentially leading to negative attitudes and conflicts between residents and tourists and between the various social groups living within the local community. In addition, while tourism has the potential to introduce economic benefits for the government and the people.

Normally tourism still has little impact on local society and culture. Participants report that tourism has less contradicted religion and traditions, while some of them expressed the fear of potential impact on younger generations. Such sentiments were centered near Khumbu and Annapurna, where the impact on society and culture are more present than in the other sites. Among the negative impacts reported in study, areas are; the consumption of alcohol, the imitation of tourist behaviour and sexual relations with tourists, increasing foreign food, dress, drug, language, gambling and unwanted lifestyle change. The positive impacts of tourism were especially highlighted by those working in tourism. Some reported that tourism is single source of their economic life, while others claim to have learned positive skills from tourists that improve their interaction with family members and in society. Similarly, for the Government tourism is an important pillar of national economy and best way to reduce poverty in rural areas of Nepal. Finally, tourism is an important transmitter of globalization in Nepal. It seems a process of acculturation or westernization or Americanization and leads globalised homogenous society and culture. Majority of respondents agreed on tourism and globalization develops globalized homogeneous culture but the same time Nepalese cultures are reconstructed on local levels.

Tourists were found highly satisfied with weather, natural scenery, wild animals, people’s behavior, hospitality, friendliness, helpfulness humbleness, honest, welcoming attitude of the people, sense of remoteness and authenticity, religious customs, fulfillment of scene of adventure, historical sites, culture, entertainment, language communication, agency services and guide services. However, they were found to be less satisfied with immigration, transportation, airlines services, lodging, sightseeing tour, shopping facilities, tourist information service, regular strike (Nepal banda), tax, and food and drinks in Nepal. Again, they had realized the potential for further tourism development in Nepal.

Having top mountains of the World, colorful cultures, ancient history and people, picturesque scenery, birthplace of Gautam Buddha, rich traditions of art, culture and heritage and one of the best destination for adventure activities; the country of great Himalayas (Nepal) is one of the best destination for tourism. The perceptions of tourist are found positive. Out of different attraction phenomenon, adventure activities and places are the main attraction for tourists followed by religion and culture. Majority of tourist are agreed on Nepal is the cheapest destination.

Recommendations

There is no doubt tourism is a means of globalization and have impact on society, culture and economy of the country. Tourism is the main way of globalization in different phenomenon like economy, culture and society of Nepal. Nepalese society, culture and economy have been suffering from various impact of tourism. Basis on the empirical data, the researcher have found following suggestions on this research.

Tourism is an important process of socio-economic and cultural globalization. It has both positive and negative impacts on society, economy and culture of destination. Therefore, it is recommended that Nepalese should be aware from such impact.

Tourism is seen as the means of development in rural areas of Nepal. Therefore, government and local people should use tourism as the development tools for rural Nepal.

It is found that tourism has both positive and negative impacts on society and culture according to places. Some tourist areas have less impact and some have more. Therefore, Nepalese and government should implement proper programme to reduce negative impacts.

The impact of tourism on the social system and culture of locals are diversity according to tourist hubs. Participants from Kathmandu, Pokhara and Chitwan reported that tourism contradict religion, tradition, social norms, local culture, society, food, language, clothes and may more related to social and culture phenomenon, while others from rest tourist hubs reported tourism does not contradict religion and tradition. But, from both places people, express the fear of the greater impact on the younger generation. Therefore, to protect from such evidence, it is necessary to give proper education or information to the Nepalese and special education or information to the younger generation.

Majority of respondents have positive attitude of tourism and believe that it can develop their communities. Tourism is pillar, employer, poverty eliminator, source of foreign currencies, revenue, local business and capital investor of Nepalese economy but government is not giving proper importance in it. It is recommended that government should give priority for tourism development.

Regarding to the role of tourism in globalization of economy Nepal has been found that the direct impact of tourism on earning foreign exchange has been improving. However, if it is analyzed with respect to merchandize trade, overall foreign exchange earnings in the economy the role of tourism has been increasing. The ratio of foreign exchange earnings from tourism and GDP has been increasing very slowly. Nepalese and government of Nepal should think on it. The foreign participation in the tourism industry remains confined to mainly hotel, resorts and restaurants. Therefore, government and people should encourage foreign investors to invest in new areas of activities related to tourism in Nepal.

The residents near the tourist hubs of Nepal experience the largest economic impacts of tourism, where a large number of residents have become dependent on tourism, while in the other sites tourism still has no significant economic meaning. Therefore, in this situation economic benefit of tourism should be managed to the equal manner

It is found that people in tourism have better living standard because they have better income. Only few Nepalese are involved in tourism therefore they are getting better quality of life and education but majority of Nepalese are in off-site, which is socio-economic inequality due to tourism. To promote the living standard of those people, who are off-site, government and Nepalese should focus balanced tourism development project and distribute appropriate income of tourism.

Regarding employment in tourism, it was also found that tourism is not yet considered a plausible and appropriate employment opportunity by local jobseekers. Among the reasons are lacks of education and training centers, low wages paid to employees in tourism service, lack of insurance and job security, to a certain degree, the traditional and social values of the communities. Concerning education and training, the study identified that the authorities do not consider tourism to be a helpful means in dealing with the issues of human resources. This reflects the low priority given to education and training in tourism as an independent field of study, even when there is a project with a scheduled budget for training. Therefore, it is necessary to create positive attitudes towards tourism related job for this educational institution should be established.

Total foreign exchange earnings of Nepal have been growing after introduction of tourism. Foreign investment has been increasing in tourism because it will be potential sources of return for them. However, this analysis shows that foreign investors were keen to invest in hotels, resorts and restaurants. Other activities could not attract foreign investors. Here lies the need to promote other activities rela

Historically, from the 16th to the 18th century, the main attraction of people was the fairs. At that time, recreation parks did not exist. Fairs were often visited to enjoy moments with family. The first recreation park called Tivoli was created in 1771 in Paris. The diversity of activities present on that park made it successful. Over the years, new attractions were more and more set up. But people got bored of these attractions at a specific moment: it did not meet their needs anymore.

Towards the end of the 19th century, attractions experienced new changes thanks to technical progress. The development of new technologies permitted the creation of new games. In the midst of the 20th century, new parks emerged all over the world.

The object of this essay is to analyze the establishment of recreation parks on territories for destinations and tourism business in terms of opportunities and threats.

The essay will be organized in the following manner. After presenting the current market, we will be focusing on an internal analysis: strengths and weakens of the recreation parks. Secondly, we will deal with opportunities and threats of these leisure sites. Both parts will target on the implication of such parks on destinations and tourism business and will be illustrated through the example of a well known recreation park in France: Disneyland Paris.

France has almost 300 leisure sites of which 30% of recreation parks and theme parks. The annual number of visitors is estimated at 70 000 000 of which 16 800 000 recreation parks tickets. According to a study from the AFIT, more than one out of two French people is consumer of that touristic product and French people go in a leisure park three times a year as an average. The touristic attractiveness of a destination is an important issue in the tourism industry. A tourist destination is based on three main points. First of all, it comprises the destination attraction that is the whole factors which constitute the image of a destination. Then, its accessibility: more precisely to define the itinerary from one place to another including travel expenses for instance. As the last point, we can add the conditions of visiting a destination: accommodation, services provided on place… The internal analysis will be made through the VRIN model that is the Value, Rarity, Inimitability, Non Substitutability of a touristic product.

Let’s start with the notion of value. Each recreation park is different and we distinguish them by their image. The image is at the centre of the value of an organization. It is based on several parameters. First of all, the notoriety of the brand. This can be achieved through the adoption of a marketing strategy (presence of the brand on television, internet, shopsaˆ¦). Moreover, the second parameter to take into account is the accessibility of a recreation park. Indeed, the more the park is accessible in terms of transports the more it attracts people and makes a recreation park one of the main destination. These two elements mainly constitute the strengths of a recreation park.

Let’s illustrate with the example of Disneyland Paris. Since its opening in 1992, it has recorded more than 200 millions of visits. Disneyland Paris has become today the first tourist destination in Europe and comprises two Disney theme parks, hotels, Disney village and golf courses. That destination has an exceptional accessibility contributing to its success: Paris is at 35 minutes away with the RER, the proximity of highways and the construction of car parks permitted an easier access for motorists. Besides, the presence of train stations and airports near the park highlight the importance of the transports network. Public investments amounted to 666 million euros.

In addition, the park is characterized by its creativity and its strong capacity to innovate new products (new attractions were created each year, a wide range of extra services). Except attractions, it provides hotels, restaurants, shops. Then, the image of Disneyland Paris relies on the importance of quality of service with “Cast Members”. Indeed, they are trained in order to accompany visitors in “Disney World”

The destination attraction is thus based on the capacity of a recreation park to suggest rarity products which means at first the fact the product adds value to the customer and at the second time that the product is lasting in a long term. The more the product is rare, the more it may not be copied (it is linked to the complexity, the culture and history, the changes including innovationsaˆ¦). The choice of a destination considers the previous criteria: a non substitutable product will interest more a customer (unique services, products present in one place only for instance) rather another one which provides the same services in other park.

Despite these positive points, we need to point out the negative aspects of recreation parks. The construction of a recreation park requires an important capital to buy a “lot” for the park. High investments are needed for research, developments in innovations. Although the turnover of Disneyland Paris shows an increase of 1.29 billion of euros in 2011, the park has a net loss of 63.9 millions euros. The debt is still increasing and the company did not make profits.

The second point is linked with the attractions in a recreation park that makes the destination non attractive. Prices are problematic in that case. The park Disneyland Paris costs a lot for people.. Nowadays, the needs of customers change over the years. To face that fact, recreation parks have to modify and change their strategy.

This what Disneyland Paris did by focusing on innovation. The main issue is not to lost clients and to diversify the offer to attract them. It is a big challenge for recreation parks because if they suggest the same attractions people could get tired and could tend to another tourist destination more diversified and less expensive. If a park would continue to seduce tourists, it had to make available new attractions with new sensations. These rely on new techniques and technologies. Even if it is difficult to make a customer a member of the park, it is necessary to take him back. The renewal of new customers is a tremendous stake for recreation parks. It is essential to meet the demanding needs of consumers in terms of entertainment and quality of service.

Disneyland Paris is one the recreation park who has experienced numerous incidents. The worst incident happened in the 25th of April 2011 on a Disneyland Paris’s attraction. They are rare in recreation parks but some of them put into question the safety of amenities. According to the law of February 2008, a technique control is made once a year. The safety has to be followed each second and it requires the attention of each tourist by respecting the rules in a park. The “zero risk” does not exist”.

Even if, these facts are real no one is perfect. The idenfication of weaknesses is decisive to adopt strategic plans appropriate.

The different elements mentioned in the negative aspects of recreation parks can be a brake on the choice of a destination. Recreation parks are both a strength and a weakness in tourism industry but they create opportunities as well as threats for destinations and tourism business.

The following part will discuss about opportunities in the first place. Lastly, we will argue on the different threats implied by recreation parks for destinations and tourism business.

Presently, considerable research in the field of economics of tourism since the 1970s led to well established models and methodologies to quantify tourism demand. Main factors that proved its significance are for example income in the country of origin, relative tourism prices at the destination, or substitute prices of an alternative destination.

On the other hand travel motivation has been a focus within destination choice theories. The typical tourist undertakes several steps before deciding for a vacation destination. Each stage is influenced by internal and external stimuli and the tourists intention maximize its utility, thus to ‘make the most of it’.

It becomes apparent that the root of total tourism demand lies within both economic and socio-psychological theories. It is the intention of the thesis to therefore propose a combined framework. In order to prove its validity a survey will be conducted to capture stereotypes associated with Ireland and the Irish and to what extend this influences Ireland as a destination choice. The results will then be incorporated into the new framework to help future research testing other variables.

Literature Review
Theory of Tourism Demand

Research differentiates between two major approaches to analyze tourism demand: Tourism economists mainly consider an economic framework while travel motivation mainly applies a socio-psychological framework (Goh, 2012). The following paragraphs will go into more detail on each of the theories to illustrate that tourism demand can be derived from theories of destination choice as well as market demand theory.

Although studying the characteristics of tourism is a comparably new era starting in the 1960’s, this industry’s excessive growth has also led to an equally extensive evolution as a field of study and consequently its methods and findings.

Neoclassical economic theory usually assumes a multi-stage budgeting process for every choice for a certain product or service. Within a tourism context this process can be divided as in Figure . Additionally, each stage corresponds to a utility maximization problem where the consumer subconsciously intends to maximize the utility of the choices within the given budget constraint (Smeral & Weber, 2000). As Figure illustrates the budget line shows how different combinations of tourism expenditure could be allocated to the destinations, but the indifference curve shows that the tourist wishes to allocate set proportions of the budget to each (Sinclair & Stabler, 1997).

The most recent review papers by Song and Li (2008) and Song et al. (2012) summarize the research progress made in respect of approaches, applied methods, innovations, emerging topics, research gaps, and directions for future research. According to their assessment a number of researchers have created and tested a variety of demand models for different destinations in order to quantify its impacts. Most commonly the number of arrivals is used as the indicator for total tourism demand of a destination, although tourist expenditure, and tourist nights in registered accommodations were chosen in some studies. Predominantly considered determinants that empirically proved to have an impact on tourism demand were:

Income in country of origin
Relative tourism prices at destination
Substitute prices of alternative destination
Travel cost
Marketing expenditure
One-off events

(Song, et al., 2009)

While total impact and its explanatory variables have been thoroughly investigated through several econometric models, little attention is placed to the social context of tourism decision making: “Traditional demand theory does not explain how preferences and tastes are formed and change [aˆ¦]” (Sinclair & Stabler, 1997, p. 29).

Decision-making processes, its components and generalized frameworks have been widely researched over the past decades (Crompton & Um, 1991; Woodside & Lysonski, 1989). Decrop (2005) for example classified the factors of tourist’s decision-making process into six cognitive constructs:

Tourist perception
Learning and attitude
Personality and self-concept
Motivation and involvement
Emotion
Context

On the contrary, Crompton and Um (1991) explain how tourist’s perception of a destination is influenced by internal and external inputs (see Figure ). Connecting the findings of Heung et al. (2001) review about major vacation motives and Gallarza et al. (2002) findings on attributes related to the destination image, it becomes apparent that research exploring factors influencing destination choice has been extensive.

Despite the wide recognition of Um and Cromptons’s framework of a multi-stage destination choice and acceptance that beliefs and attitudes are related to destination preferences, they are some restrictions when it comes to the act of purchasing a vacation at a destination. During the early stage of selecting a destination socio-psychological factors such as image or beliefs are significant indicators in specifing which destination evolved to a late consideration stage. However, the ultimate selection depends to a higher magnitude on perceived inhibtors acting on a potential traveler such as monetary constraints (Crompton & Um, 1992). According to Crompton and Um’s findings in the consumer behavior, tourism, and recreation choice literature “aˆ¦constraints should be integrated into the cognitive choice process.” (Crompton & Um, 1992, p. 97)

Figure : Framework of decision-making process by Crompton and Um (1991) (Source: Own illustration)

Similarly, very few prior studies focused on the influence of socio-psychological factors on demand itself. During the 1970’s several studies concluded that a large number of explanatory variables affecting demand are too small to have a significant influence, but if aggregated “aˆ¦are likely to be as important as prices and income in determining travel growth.” (Goh, 2012, p. 1862). Additionally, O’Hagan and Harrison (1984) again proved the high significance of non-economic factors in their study.

The main reason for omitting relevant variables in tourism demand theory is its difficulty to define and collect accurate measures (Song & Witt, 2000). Attempts to integrate socio-psychological factors into tourism demand models have failed due to the lack of appropriated procedures and econometric models. As most these factors are more commonly interrelated a new more complex modeling approach would have to be designed and tested. As Stabler notes: “Though motivations and preferences, in which images are embodied, are acknowledged as being important, they tend to be ignored by ‘main stream’ economists, because they are either assumed to be relatively stable and therefore do not influence the model, or are considered too complex to cope with.” (Stabler, 1988, p. 137)

In summary, apart from each other the economic perspective as well as the socio-psychological aspect has been subject to extensive research. Both fields of study realize their incompleteness when it comes to assessing tourist behavior and demand. However, to fully comprehend and measure the tourism demand, theories of destination choice and theory of market demand should be combined to create an in-depth understanding (Goh, 2012).

Stereotyping

Social categorizing allows people to respond quicker to a range of perceptual impressions. As Lustig and Koester (1999) state the way humans process can be broken down into three aspects:

Conceptual categories [1]
Ethnocentrism [2]
Stereotyping

For this thesis most important, is the effect of “stereotyping”. First mentioned by Lippmann in 1922 it refers to a selection process to simplify our perception of others; creating “pictures in our heads” (Lippmann, 1922, p. 5). Basically, the cognitive representations of a group influence our thinking, judgment and behavior of people within that group. Hewstone and Brown (1986) defined three characteristics of stereotypes:

Often individuals are categorized, usually on the basis of easily identifiable characteristics such as sex or ethnicity.

A set of attributes is ascribed to all (or most) members of that category. Individuals belonging to the stereotyped group are assumed to be similar to each other, and different from other groups, on this set of attributes.

The set of attributes is ascribed to any individual member of that category (p. 29)

Thus, after defining an out-group, “they”, on the basis of their differing characteristic to oneself, the dissimilarities are emphasized and extended in order to create a more distinct division between the social groups. Last, the characteristics are attributed to all members of that group, resulting in a person not being treated as an individual, but as a typical example of a category (Lustig & Koester, 1999; Hinton, 2000).

Before judging, people rarely gather a sufficient amount of information from various resources. Most commonly, they had a direct experience with a few people of the out-group, received information and opinions second hand such as from friends or relatives, were influenced by the output of the mass media, or just general “pigeonhole” thinking (Brewer, 1996). These sources that form a stereotype initially are moreover the multipliers and causes for stereotypes shared by an entire social group. As Stangor and Schaller (1996, pp. 4-5) mention: “From one perspective stereotypes are represented within the mind of an individual person. From the other perspective, stereotypes are represented as part of the social fabric of a society, shared by the people within the culture. [aˆ¦] Because group values and group behavior provide the underlying foundation of stereotyping, stereotypes only have meaning to the extent they are culturally shared.” Stereotyping is therefore not only an individual problem, but when they are shared within a society; they have a considerable (positive or negative) impact on the labeled individual or group.

As diverse and intricate as the environment appears to be and as useful as it seems to simplify this complexity by structuring, the more dangerous it becomes to misjudge and have inaccurate assumptions. Judd and Park (1993) assessed three major phenomena resulting from stereotyping: The so-called “out-group homogeneity effect” causes the person in the in-group to consider members of the out-group to be much more similar to one another than in reality. Second, humans tend to make wrong or inappropriately exaggerated assumptions about the group average, such as when all US Americans are assumed to be friendly and service-oriented, but also superficial. Third, the phenomenon of prejudices occurs when there is a “negative valence inaccuracy”, thus a negative attribute is weighted more important while the positive is being ignored or underestimated. For instance, when visiting the US a tourist could stereotype all Americans being superficial or insincere (the negative attribute), but disregarding the fact that they are highly service and customer oriented (positive attribute). Conversely, one can show a “positive valence inaccuracy”.

As Kunda and Scherman-Williams already proved in 1993 imprecise stereotyping can eventually lead to false interpretation of ambiguous incidents. Consider, for example, the unambiguous event of losing a soccer game. Ethnic stereotypes could relate the failure to laziness if the team was from Germany or low ability if the team is Kazakhstani. “Thus, stereotypes will affect judgments of the target’s ability even if subjects base these judgments only on the act, because the stereotypes will determine the meaning of the act.” (Kunda & Sherman-Williams, 1993, p. 97)

Stereotypes even have consequences for future behavior. An investigation by Seta and Seta (1993) revealed the following results:

The stereotype would persist even after the subjects were exposed to a disconfirming behavior as they expected a future action would compensate for the atypical behavior

If a subjects stereotype would be consistently challenged by a member of the stereotyped group then expected compensatory behavior would cease. Nevertheless, the subject still expects another member of the group to “make up” for the disconfirming behavior.

This way people are still able to anticipate certain future events without making it necessary to revise their deeply set beliefs and values.

In conclusion, stereotypes are highly subjective, but because experiences and events are shared through various channels, it can eventually lead to a shared consensus. Although categorizing helps an individual to cope with an ambiguous environment more efficiently, caution has to be exercised to avoid unjust judgment of other’s behavior. Stereotyping is a strong set of beliefs and values, which is difficult to overcome for an individual and consequently even less likely for an entire social group.

Conclusion

Literature review gives a scattered insight into tourism behavior and demand. The field of tourism economics with its consistent developments in methodological innovations, research progresses, and different approaches consists of a comprehensive body of knowledge and theoretical foundations. Similarly, extensive research in the tourist behavior area and especially the understanding of decision-making process has led to a number of frameworks and assessment methods. Apart from each other, both have empirically and qualitatively evidence for a number of factors influencing the consumer equilibrium – the point at which the tourist’s economical constraints intersects with the consumer indifference curve. Thus, market demand is proven to be depicted from economical as well as socio-psychological theories. However, only very few studies attempted to combine and investigate their relationship and impact.

Factors influencing destination choice and destination image are many. Stereotypes are one of numerous causes shaping personality and beliefs. Due to its persistent nature and difficulty to overcome deeply held principles, stereotypes proved to be highly influential on expectations towards future situations & people’s behavior. Thus, although stereotyping is a commonly known phenomena its implications into tourism theories is yet limited.

The literature gave a profound understanding of economic and non-economic tourism theories as well as origin and impact of stereotypes on social behavior. It is the papers intention to prove a significant relationship between stereotypes and its influence on destination choice.

Research Problem
Research Problem

It is evident from the literature that market demand as well as destination choice theory face constraints when trying to explain the complexity of tourist’s choices. Despite their methodological developments in econometric models over the past decades, integrating qualitative as well as quantitative measures has failed due to lack of available data or complexity. Similarly, socio-psychological frameworks tend to omit inhibitors and constraints such as budget.

From the research problem identified above, the research question can be formulated as follows:

To what extend can stereotypes be classified as a relevant factor influencing tourism demand?

In other words, the author will intends to link both economic and socio-psychological factors into tourism demand theory. Further, it is hypothesized that stereotypes have a significant impact on the decision-making process of tourists and thus tourism demand in general.

Research Objectives

The research objectives are generated from the research question and should provide clearer sense of purpose and direction for the researcher (Baker, 2000). The following research objectives arise from the hypothesis above:

Establish a framework that includes both socio-psychological and economic factors

Song et al. (2012) as well as Song & Li (2008) noted in their review papers that developments in tourism demand are limited to quantifiable measures. During their early works Crompton & Um (1992) realized as well that the destination choice process is not limited to intrinsic motivators. Goh (2012) recently proposed an initial framework linking destination choice and theory of market demand.

Investigate on stereotypes existing towards Ireland/Irish

Seta & Seta (1993) found that stereotypes deep-rooted and difficult to overcome. Stereotypes about Ireland and the Irish are widespread which could be due to its high emigration throughout the previous centuries. Since its subjective nature social science has not scientifically named or analyzed existing stereotypes. It will ths become essential to collect primary data.

Analyze connection between existing stereotypes and willingness to choose Ireland as a vacation destination

The multi-stage destination decision-making process has most commonly been researched by Crompton & Um (1991; 1992) and Decrop (2005). Influencing factors are numeral and their magnitudinal impact depends on the stage of the process as well.

Assess to what extend the economic tourism demand formula can be extended by the socio-psychological factors

Research integrating socio-psychological aspects with tourism demand theory is limited. For example, Goh (2012) was able to link the factor weather with tourism demand theory. Based on the framework established from the first objective the author intends to generalize the findings.

Research Method

The methodology outlines how the research objectives are to be achieved within the given time frame and explains the rationale behind the chosen method (Saunders, et al., 1997). Special emphasize is to be placed on the research design, data collection, and ethical implications.

Research Design

In order to resolve the above mentioned research objectives a triangulate approach has been chosen, applying both quantitative as well as qualitative methods.

First, in order to fully comprehend and test the relationship between stereotypes and tourism demand, a framework needs to be created which stems from economical as well as consumer choice theory. This inductive and more discovery-oriented approach is necessary due to the lack of available research and quantitative data that combined the two fields of study. Through an investigation of the literature about economic tourism demand and socio-psychological theory, the exploratory research will confidently result in a comprehensive tourism demand framework. Additionally, it will clarify the authors understanding about the separateness and consequently help to successfully commence with subsequent objectives (Heath & Tynan, 2010).

The main focus of this thesis will rely on a positivist approach though, thus deducing a hypothesis from the theory and empirically testing it (Saunders, et al., 1997). The intention is to quantitatively prove a causal relationship between stereotypes and tourism demand. From the literature review it can be concluded that socio-psychological factors play a major role when deciding for a destination and as a result imply to have certain impact on tourism demand of that destination. However, this hypothesis has not been tested yet.

In order to do accomplish objectives two and three a survey will be conducted among people who have not visited or lived in Ireland. Conducting surveys allows the researchers to have more control over the research process and is widely perceived as authoritative by people in general (Saunders, et al., 1997).

According to an analysis from Ireland’s national tourism board “Failte Ireland” its main markets are Britain, North America, France, and Germany (Failte Ireland, 2011). The author intends to collect sufficient amount of data from at least two source countries, namely United States and Germany. As the survey is standardized it will be easier to distribute to the different nations and later compare the received results. It aims at collecting cross-sectional data about the kinds of stereotypes existing towards Ireland and the Irish as well as the participant’s willingness to choose Ireland as a vacation destination based on their held beliefs. Regression analysis will then allow the author to conduct the fourth step of positivist research: “Examining the specific outcome of the inquiry. It will either tend to confirm the theory or indicate the need for its modification” (Robson, 2002, pp. ???18-19)

According to Saunders et al. (1997) the data collected might not reach such a wide range as a qualitative research method would due to the limited number of questions a questionnaire can contain. However, in case the conducted survey does not give sufficient causal explanation, thus its validity and reliability cannot be assured, additional secondary data from a recent survey by “Failte Ireland” could be analyzed who interrogated tourists that have chosen Ireland as a vacation destination (Failte Ireland, 2011). It is important to note though, this data can only serve supplementary as a clear distinction between stereotypes and other reasons to choose Ireland has not been considered.

The reason for choosing a positivist approach is the advantages that come with it. Its deductive nature allows the application of a rigorous structure that would make this hypothesis applicable to generalization and give an opportunity for further research to test other socio-psychological factors (Easterby-Smith, et al., 2001).

The last objective intends to incorporate the findings from the survey into the framework proposed at the beginning of the research applying the knowledge gained throughout the thesis. If the survey were to prove the causal relationship between stereotypes leading to higher likeliness to choose Ireland, the hypothesis demonstrated its validity. The fourth objective is to conclude to what extend the findings can be generalized and applied to other non-economic factors.

Data Collection

As mentioned above the main purpose of this thesis is a survey among US and German citizens collecting empirical data about stereotypes towards Ireland and the Irish as well as their willingness to choose Ireland as a vacation destination based on their held beliefs. Irish born as well as residents who previously visited Ireland are excluded. This specification is especially relevant as stereotypes root mainly from other people’s experience (i.e. visitors to Ireland) and/or limited familiarity with the other social group (i.e. Irish emigrants) (Brewer, 1996).

The author targets to gain 50 utilizable questionnaires from each nation, totaling to n=100. In order to ensure a high number of participants from Germany the survey will be translated into German as well.

Distribution will primarily be channeled as a web questionnaire through social media. This note only enables the survey to reach a wide range of potential partakers and guarantees there anonymity, but also ensures a certain level of randomness which is one of the main challenges when conducting surveys. Although the author cannot fully exclude a connection with all the participants, the potentially exponential circulation minimizes this risk.

The data then will be used for a linear regression analysis in order to validate how the independent variable (stereotype) impacts the dependent variable (select Ireland as vacation destination). The linear regression will only be an approximation of the true relationship though, as it is not possible to include all the variables which may have an influence on the dependent variable (Koop, 2009). The omission of these variables in the model is referred to as the error term. The basic regression model is written as

where y equals dependent variable (select Ireland as vacation destination), coefficients I± and I?, x represents the independent variable (stereotype), and refers to the error term. A null hypothesis test will be applied to determine whether results are statistically significant.

Main problems arising using regression analysis can be autocorrelation, omitted variable bias and multi-collinearity (Koop, 2009). As the hypothesis is only testing the impact of one independent variable on one dependent variable, autocorrelation can be neglected. Similarly, multi-collinearity, evident through high p-values and low t-stats can be excluded as only one explanatory variable is applied. However, omitted variable bias can lead to unreliable coefficients if an explanatory variable which may have an impact on the dependent variable are omitted from the data set. However, as mentioned above it is nearly impossible to include all explanatory variables, which is why the error term is included. The values of the coefficients will nevertheless be treated with caution.

Ethical considerations have to be taken into account as well. The online survey ensures the participants anonymity and no personal data will be collected. Additionally, it goes without saying that the author conducts this hypothesis in an objective and non-discriminatory manner. Stereotypes have a tendency to classify or even favor one social group over the other. The thesis is not intended to strengthen or overcome beliefs towards Ireland or the Irish, but to capture a ‘snapshot’ of existing stereotypes.

It is widely acknowledge that planning is crucial to successful tourism development and management; and planning has been a widely adopted principle in tourism development at both regional and natural levels.

Tourism in Europe has been the subject of considerable academic debate and commentary since the political even of 1988-89. The debate has often focused on Central Europe, whose future free market depends on planning especially including tourism. In particular, strategic planning in the region will be critical to the future success of tourism as attempts are made to utilise tourism in the process of planned economic change.

The lack of coordination and cohesion within the highly fragmented tourism industry is a well-known problem to destination planners and mangers. Gunn (1988) stated that continuous tourism planning must be integrated with all other planning for social and economic development, and could be modelled as an interactive system. He pointed out that “the go-it-alone” policies of many tourism sectors of the past are given way to stronger cooperation and collaboration. No one business or government establishment can operate in isolation” (Gunn 1988; 272).

On the other hand, Inskeep (1991) has pointed out the importance of an effective organisational structure for tourism management and the need for continuous, integrated planning. Achieving coordination among the government agencies, between the public and the private sector, and among private enterprises is a challenging task, however, and requires the development of new mechanisms and processes for incorporating the diverse elements of the tourism system.

Countries need to have an idea about where they want their tourism sector to be in the future and the route it is going to follow to get there. If nations do not have a strategic plan for their tourism, then the old cliche can apply. “If you don’t know where you are going, how will you know when you have arrived”? (Tim Hannagan 1998, p. 120). In this write up, the meaning of both strategic planning and tourism will be analysing, and also analytical argument on strategic planning for tourism will be explored. Furthermore, few example of tourism planning activities will be evaluated to support the subject matter. Thus, what is

Strategic planning / Tourism

“Strategic planning is concern with deciding what business an organisation should be in, where it wants to be and how it is going to get there” (Smith 1994). Strategy “is the direction and scope of an organisation over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations” (Johnson and Scholes 2005).

Harrison et’ al (1995). Explain that “strategic is about clarifying your mission, setting clear long term objectives and formulating a comprehensive and integrated set of steps to achieve it”. Strategic planning then is concern with defining and achieving organisational purpose (Porter 1994). “planning is the purposive process in which goals are set and policies elaborated to implement them” and is “concerned with understanding and explaining the substance of policy content and policy decisions and the way in which policy decision are made.” (Barett and Fudge, 1981).

On the other hand, According to World Tourism Organisation (WTO) the organisation defines tourism as: “the short term movement of people to destinations away from the communities in which they live and work, and their activities during their trip, including travel, day visits and excursions” (WTO cited in T. Outhart. et’ al 2001, p.4) so tourism includes short term travel for all purpose, weather for leisure or business.

Furthermore tourism is about the temporary, short term movement of people to destinations outside the place where they normally live and work and about their activities during their stay at these destinations. (Outhart O. & Taylor L. 2001, p.6).

Tourism development is the planning and ongoing development of destinations, facilities and services to meet the need of current and future tourist. When tourism is effectively planned and managed, tourism development can result in huge improvement and benefits both for visit and tourist and for the local population, therefore the need of strategic planning for tourism in order to meet the desire of people living in the demanding world has to be encouraged so as to promote and attract tourist as well as building their confidence with tourism activities. Tourism planning has also been seen as a way of extending the life cycle of a destination with a view of exploring new opportunities, adaptation to the current market demand and marketing harmonisation and as well forecast for the future.

As stated by Clegg (1994), “tourism activities comprise the world’s largest industry with over trillion of dollars in revenue produced” and the challenges in benefiting from such economic impact is the result of efficient planning that will take into account the preservation and protection of the environment, the enhancement of a community quality of life and development and that will attract not only first-time visitors but also repeaters as a result of building a reputation and be a successful destination. (Inskeep 1991, WTO 1994) in their own contribution to tourism planning and development, they stated that “planning is crucial to successful tourism development and management; and planning has been a widely adopted principle in tourism development at both regional and national levels.”

On the other hand, (Cooper et’ al. 1993; Shepherd, 1998) argued that poor tourism planning will cause social problems, degradation of the environment, short-term benefit and failure or constraints due to “lack of analytical details or miscalculations regarding the control of land usage” (Cooper et’ al. 1993; Shepherd, 1998). Furthermore, (Tosun and Jenkins, 1996) elongated the above comment by saying that “the failure of central planning caused by lack of community involvement as well as mismatch between central planning and local possibilities is detrimental for the tourism market. Thus emphasising on a new concept of sustainable development to empower the planning system for long term success of tourism as it can help to promote and support conservation, regeneration and economic development as well as enhance the quality of life of visitors and host communities” (Holden, 2008; Wall and Mathieson, 2006).

Furthermore, Gunn and Varr (2002) stated that “if tourism is to reach towards better economic impact it must be planned as well towards goals of enhanced visitor satisfaction, community integration, and above all, greater resource protection.”

Strategic and Its Resources Implication Fig 1
Stage of strategy process
Questions
Description

STRATEGY FORMULATION

Mission statement

Statement of aims

Statement of Values

What is our purpose?

What kind of organisation do we want to take?

A clarification of the purpose of the business

Environmental Analysis

Where are we now?

This involves the gathering and analysis of intelligence on the business environment. E.g. staffing, resources, competitors, stakeholder expectation

Objectives

Where do we want to be?

This involves detailed articulation of aims i.e. setting a target for the organisation to achieve

Strategic choice of strategies

How are we going to get these?

Strategies describe how the objectives are to be achieved

Options analysis

Are these alternative routes

Here you identify options required to be screened

in order to choose the best

STRATEGY IMPLEMENTATION

Action

How do we turn plans into reality?

A specification of the operational activities & task required.

Monitoring and Control

How will we know if we are getting these?

Taking corrective action as necessary and reviewing strategy

Source: (Johnson & Scholes 1997 p. 13) & (Catterick 1995 p. 14)

Many organisations produce separate mission statements and statements of aims, objectives and strategies. The strategic plan will contain all of these, which is also applicable to all countries embarking on tourism activities.

Looking at the meaning of tourism and its activities, the theory and practice of strategic planning for tourism sector in every nation cannot be measured. This is evident on the ground that, it is clear that effective strategic planning and management is a prerequisite for the successful utilization of tourism as an agent of change in every nation. Tourism is seen as transcending the traditional economic sectors and is viewed as an industry which can actively regenerate the small business/entrepreneurial sector with all its flexible and responsiveness to dynamic changes. However, the transformation of a centralised economy, characterised by flexible practices and a low priority for tourism, does involve a change of “hearts and minds” as much as it is needs outside strategic planning from expertise. No wonder that, Hungary has recognised the advantages that tourism can bring as witnessed by Prime Ministerial statement in 1990 lauding tourism as a potential power-house for the economy.

However, Hall’s (1991a) most persuasive point is that, tourism is seen as an integral part of economic restructuring by exposing the system to both national and international forces and, in so doing, introducing potential foreign investors, encouraging privatisation and reducing the level of bureaucracy and centralisation. All this are made possible via strategic planning approach adopted by a given nation.

In the case of tourism, Page & Thorn (1997) suggested that a national policy or strategy was required in addition to the RMA, if sustainable tourism goals in New Zealand were to be achieved, since then a national strategy has been produced, reviewed and subsequently updated, emphasising the sustainable development concepts and the desirability of integrating environmental, economic, social and cultural considerations in the long-term management of tourism resources.

Tourism Planning Approaches (Countries overview)

The changing evolution of tourism, its different political and socioeconomic development environments, and the diverse scientific and technical contributions in the field’s related disciplines (urban, regional, environmental planning, etc.) shape different approaches to planning. Such approaches have been the object of interesting systematizations, especially the critical perspectives of Getz (1987), and Tosun and Jenkins (1998) for Third World Countries, which are neither mutually exclusive nor a reflection of a chronological evolution: boosterism, economic, physical-spatial, and community-oriented approaches. To these four could be added two more that are omnipresent in today’s literature: a strategic approach and planning for sustainable tourism.

Boosterism has been the dominant tradition ever since the emergence of mass tourism. It is based on a favourable, uncritical assessment of tourism that identifies it as intrinsically positive and ignores its potential negative effects on economic, socio cultural, and environmental levels. Halls (2000) expresses his doubts about its consideration as a way of focusing on Getz’s contributions, four approaches can be distinguished, and planning since it is precisely characterized by being a tourism implementation and development method that reveals lack of planning. The economic approach conceives tourism’s as an instrument that can help achieve certain economic aims. It reinforces tourism’s character as an export industry and its potential contribution to growth, regional development, and economic restructuring. Public intervention, in its regulating and promoting role, gives priority to economic purposes over environmental and social ones, although it also attends to all the factors that can jeopardize its economic efficiency: development opportunity costs, selection of the most profitable market segments, control over demand satisfaction, estimate of its economic impacts, etc. However, this approach does not usually analyze how the benefits derived from tourism are distributed socially (Burns 1999).

The physical-spatial approach incorporates the territorial dimension with the aim of adequately distributing economic activities, and specifically tourism activities, in space, while also ensuring a rational land use. It is an approach in which both town and country planning and tourism planning coverage as a result of the recognition that its development has an environmental basis. This approach mainly focuses on the preservation of the natural resources that make the industry possible and on the management of the environmental impacts it causes. Among the examples of the physical-spatial approach, Hall (2000) mentions the work by Gunn in the late 70s (Gunn 1994) or Instep’s integrated approach (Inskeep 1991).

The community oriented approach originated in the late 70s with the numerous works that criticized tourism’s negative sociocultural effects (de Kadt 1979; Smith 1977). It is not exclusively confined to the aim of solving and preventing those effects. In fact, it promotes a local tourism development control scheme so that residents are the ones who benefit the most from that development, thus avoiding conflict situations that could put the industry’s future viability in danger. Murphy’s work (1985) undoubted constitutes a basic reference point of an approach revitalized by the need to achieve greater social involvement in planning processes. This circumstance has provided the momentum to undertake, from public instances, bottom-top planning schemes, among them the European initiative leader for rural development.

Strategic planning moved from the business context to regional and urban planning in the 80s, and it has a strong influence on economic restructuring schemes for declining places and sectors (Borja and Castells 1997; Va’zquez Barquero 1993). This approach has been progressively incorporated into tourism planning and essentially focuses on the search for competitiveness of firms and destinations in a changing, complex environment. In short, it contributes to or reinforces the following distinguishing elements of tourism planning: analysis of the competitive environment as a fundamental element in the definition of the firm’s or destination’s strategy; definition of a wide time scope for planning on the basis of foresight and prospective techniques; stress on social participation and the creation of coordination and cooperation channels among stakeholders; and the rise in value of planning as a process that is permanent, flexible and integrated into management (Ansoff 1988; Borja and Castells 1997; Hall 2000; Ivars 2001; Porter 1982). Planning for sustainable tourism is related to the great deal of interest aroused by the development paradigm ever since the celebration of the Rio Summit in 1992. The application of its principles to tourism is especially relevant due to its ambivalence, for it can help to preserve and improve the environment.

THE STRATEGIC PLAN AND IMPLIMENTATIONS OF COUNTRIES

For example, the strategic plan and implementation program for the county of Szolnok in Hungary highlight many of the problems facing the future development and reorientation of tourism in Central European States.

During the construction of the strategic plan, the largest obstacle was identifying tourism facilities that would meet the development needs of the county while minimising the risk of social or environmental damage. The county strategic planner came up with the following planning strategy;

Phase 1; Immediate Action

Improve Quality of Existing Facilities

Improve utilization of existing facilities

Improve Economic Benefits from Tourism

Improve Performance of existing Entrepreneurs

Create environment for future tourism planning

Phase 2; Immediate to Medium Term Action

Develop Szolnok town as tourist centre

Increase Accommodation stock

Create new restaurants/cafes in tourist areas

Develop new tourism activities

Build on existing cultural/heritage attractions

Encourage the development of closer linkages between sectors

Phase 3; Medium to Long Term Action

Wider tourist base-conference business

Develop new up-marker tourist facilities

Widen the marketing activities

Establish strong links with national/international organisations

Adopt a fully international computerised reservation system

Continue to develop monitoring/regulation and research into tourism activities in the county

Develop new 5 year tourism development plans.

The result of the strategy plan and its implementation is a county that is now poised to break through into wider tourism markets, armed with promotional materials of high quality, tourism information and maps together with a broad spectrum of products, a network of commercial and organisational links that will enable it to capitalise on the potential market for visitors from within and to Hungary.

On the other hand the strategic planners for tourism in Spain came up with what is refer to as FUTURES (Master Competitiveness Plan for Spanish Tourism) (Ministerio de Comercio y Turismo 1994). This plan opened a new state of tourism policy in which the state redefined its role within an institutional discourse that intended to consolidate a system of coordination and cooperation between the different administrations. The FUTURES plan became the catalyst of this change encouraging the design of specific plans for the 1992-1995 period, favoring cooperation through actions financed jointly by the different administrations and fostering the participation of public and private agents. The plan was a reflection of the third generation of tourism policies, according to Fayos’ classification (1996) where competitiveness turned out to be a key element for tourism management.

The FUTURES plan formed a part of the structural adjustment theory (Bote and Marchena 1996) which focused on the adaptation of Spain’s supply to the structural changes caused by the market that jeopardized the competitiveness of the country’s tourism industry.

Finally, this period witnessed the start of the planning model derived from Spain’s entry into the European Union with the preparation of the 1989-1993 Plan de Desarrollo Regional (Regional Development Plan) for Objective -1 regions and the 1989 – 1993 Plan Regional de Reconversio’n Regional y Social (Regional Plan for Regional and Social Restructuring) for Objective – 2 regions. These plans made possible the application of Europe Structural Funds to tourism in Spain and implied the definition of a regional development strategy where special attention was paid to tourism, both in those autonomous communities in which it has a strategic role and in others where it was perceived as an emergent industry (Ivars 2001).

Essential objectives included taking advantage of tourism growth expectations, the valuation of non-exploited resources, the contribution made by new products to territorial rebalance and finally, the incorporation of tourism into local development strategies both in rural and urban milieus.

In the case of Barnette County, Wisconsin, a strategic planning was formulated to improve its tourism industry as for decades tourism has been the main economic revenue for the area. Based on existing data collected from a 1993 assessment, an action plan was implemented and the main issues encountered were lack of organisation, marketing performance, finding and government perceptions form which actions were created to eradicate the problem but it didn’t escape failure since estimated budget to find a visitor centre wasn’t reach due to lack of fund, marketing guides on the county printed but not distributed, eco-tourism was to be developed using a joint marketing grant but was refused by the state of Wisconsin. Overall, it showed the issues of lack of interest and participation from stakeholders (tourism businesses and government) for further tourism development of Barnett County.

Looking at New Zealand as a case study, a county that want to increase the level of its tourism activity and sustainable tourism has become the key of the country to do so, which according to Bramwell & Lane 2000; Hall & Page, 2006), “the success of sustainable tourism planning depends on existing planning and management functions that guide appropriate developments and the ability to respond to pressure on infrastructure and environments that increasing tourism demand creates”. The concerns for New Zealand are that the tourism product relies a lot on the natural resources and the image of a ‘clean and green country’ (Tourism New Zealand’s marketing campaign) and its has been quite a problematic issue in some areas with regards to conservation and preservation of the environment.

Page and Thorn (1997) suggested that “a national policy or strategy was required in addition to the RMA (Resource Management Act), if sustainable tourism goals in New Zealand were to be achieved.” Based on the previous research undertaken by Page and Thorn in 2001 and 2002, the following issues were encountered such as lack of considering the number of international tourist’ arrival at national level, lack of planning at national level which Page and Thorn argued that if a national plan was needed in order to achieve a more “balance equitable and beneficial patterns of tourism activity and development for destinations and host communities,” however a PCE (Parliamentary Commissioner for the Environment) report on education for Sustainable development, suggested that the like and dislike and the caring of something lies with the people.

What was found from the previous study was the lack of communication and integration between the RMA and the local authorities and resources available from the government was inadequate. However the recent study also reflect the incapacity of the RMA to work together with the national government, since tourism related project were not released but effort has been done to integrate the process of a sustainable development and increase the continuity of collaboration between the public and private sector, but there is still that major gap between strategy and the implementation of the policy formulated in the evolution towards a more sustainable New Zealand.

Based on which Page and Thorn (2002) stated that a national plan is required if tourism is to be developed with the target of enhancing the quality of life of its local people and increase environmental protection from the tourism activity. Furthermore, within the tourism planning the goal and objectives set should be achieved to challenge pro-development policy in order for New Zealand to keep up in the term of competitive advantage as a ‘clean, green and sustainable tourism destination’. As argued by Edgel, Allen, Smith and Swanson (2008), “those destinations, localities and nations that prepare good policies and implement detailed strategic plans will reap the benefits for sustaining their tourism products in the future”, which is the indispensable and fundamental basis of New Zealand tourism strategy. Hence leads to betterment of tourism activities in New Zealand.

Furthermore, before any implementation, analysis study will be performed through survey of existing data and collection of primary data. The data requirements will include information such as existing tourism profiles, “travel patterns, tourist attractions, accommodation and other tourist facilities, land availability, economic and government structure, education and training needs and provisions, environmental indicators, socio-cultural characteristics, investment sources and available capital, relevant legislation and regulation and private sector organisation.” (Cooper et’ al. Tourism Principle and Practices).

Ones data has been collected, the issues associated with it will be analysis in terms of assets (infrastructures), market assessment of demand and supply and feasibility study, source of funding and impact of economic, environment and social factors in terms of tourism needs and opportunities and overcome detrimental impact.

The result derived from these analysis will help in the formulation of plan and policies such as marketing strategies, human resources management, environmental conservation, economic and tourism development by which implementing and monitoring to ensure the development path and avoid deviation from the actual plan of the nation on tourism sector.

The diagram below represents the key stages in the planning process.

Fig 2 Key stages in the planning process

Source: Tourism principle and practices by Cooper et al.

RECOMMENDATION

Tourism has been identified as one of the primary industries with the potential to assist local communities in developing economic diversity (Allen et’ al 1993, Davis & Morais, 2004) However, tourism is not a panacea for economic decline. Tourism has the potential to create both positive and negative impacts. Gunn (1994) indicated that, there is no other form of development “that has so many far-reaching tentacles as tourism” (p.16). For tourism development to be successful, it must be planned and managed responsibly (De Oliveira, 2003; Inskeep, 1991; Martin, 1995).

Inskeep, (1991) furthered the concept of responsible management, warning that “ill-conceived and poorly planned tourism development can erode the very qualities of the natural and human environment that attract visitors in the first place” (p. 460).

Thus communities that use or plan to use tourism as an economic development tool to diversify their economy must develop strategic planning policies for the sustainable development of the community.

It should be noted that one key to strategic planning for sustainable development of tourism in a community is the inclusion of stakeholders. Without stakeholders support in the community, it is nearly impossible to develop tourism in a sustainable manner. Therefore, a clear understanding of the attitudes and interests of stakeholders is a necessary precursor to the strategic planning and management of sustainable tourism.

Strategic planning also emphasise the integration of economic, socio-cultural and environmental, therefore stakeholders should collaborate and take into consideration the preservation of culture and environment while maximising economic growth and returns to community. Jamal and Getz (1995) define these collaborative efforts as “a process of joint-decision making among autonomous key stakeholders of an inter-organisational, community tourism domain to resolve planning problems of the domain and/or to manage issues related to the planning and development of the domain.”

CONCLUSION

Tourism exists as a powerful economic force in the development of both community-based and global markets. Today, its activities comprise the world’s largest industry with over three trillion dollars in revenues produced. (Clegg 1994). Accordingly, the success of sustainable strategic planning depends on existing planning and management functions that guides appropriate developments and the ability to respond to pressure on infrastructure and environments that increasing tourism demand creates.

As Iskeep, (1991) argues, the special relationship between tourism and the environment, based on a unique dependency on natural and cultural resources, requires a balanced approach to tourism planning and development to maximise the associated benefits and minimise the negative impacts. Therefore, if ill-planned or excessive development is permitted, tourism can damage the special qualities that are essential for sustainable development.

Finally, the importance of strategic planning for tourism within a sustainable development context is now acknowledged globally as it was addressed as a specific topic in a review of Agenda 21 in 1997. In 2002, the world summit on sustainable development included a submission on sustainable tourism (chapter IV, paragraph 43) in the Johannesburg plan of implementation, which identified that while tourism has positive effects, uncontrolled (lack of strategic planning) tourism growth can undermine the basis of tourism. However, the extent to which sustainable development ideology is translated into policy and practice requires a strategic planning investigation to uncover the tourism activities that need urgent attention to meet the demand of visitors. This can be in a form of language to be used, create an image to be used, practically assistance and guidance, promotional material and its design, and strategic for the provision of tourism information.

Tourism planning has also been seen as a way of extending the life cycle of a destination with a view of exploring new opportunities, adaptation to the current market demand and marketing harmonisation and as well forecast for the future. Therefore, it is on this premise that the researcher believes that the role of strategic planning in tourism development of any nature can not be quantified.

Words Count 4365