The Ibis Hotel Introduction

Ibis is Europes leading budget hotel with more than 950 hotels in 55 countries; ibis offers its customers the highest level of service and ultimate comfort in its category at the best market prices. The ibis standard guarantees its customers around the world offer homogeneous: a modern room, connected and soundproofed bedding to innovative comfort, breakfast from 4am to noon and a varied cuisine.

In this ultimate comfort the ibis room: became modern, comfortable and fully equipped, all hotels in the network, the ibis room is designed to offer its customers a happy sleep and the ability to work calmly: soundproof, connected to the Wi-Fi hotel, with a flat-screen LCD TV, a spacious bathroom and a work desk.

New bedding to comfort Ibis, happy sleep specialist, has developed a concept of innovative and revolutionary bedding. The pillows are generous, welcoming duvet and mattress adapts perfectly to your body for a deep, restful sleep. And the secret weapon of ibis a mattress 7 cm more comfort for soft sensations. Unprecedented in the economy segment, the new ibis will change your bed nights.

The highest level of service in its class c is enjoy your stay cloudless day and night, our teams are at your disposal Our teams live to the rhythm of your needs and your desires: Front 24h/24, small kitchen ibis at all times and a bar service open continuously.

A commitment to quality service

Ibis is the first hotel brand to receive economic since 1997, the ISO 9001 quality certification. This International Standard deals with the quality service day and night reception, accommodation, small kitchen ibis, and breakfast from 4am to noon and bar service. Today, 758 ibis hotels in 21 countries are certified ISO 9001 or 84% of the network.

The contract Satisfaction 15 minutes

“Contract Satisfaction 15 minutes” is a unique example of this demanding process. If a cloud disturbs the residence of a client, ibis teams give 15 minutes flat for a solution, day and night, and if they cannot hunt that little cloud in the allotted time, the client is invited by the hotel.

Ibis pioneering environmental commitment

Ibis registered its commitment under PLANET 21, the program of Accor’s sustainable development. Ibis is the first global chain engaged in the environmental certification ISO 14001 which installs a continuous progress via: a recent on-going compliance regulations continuous improvement: hotels certified are regularly audited to set new goals. Already 420 hotels in 18 countries have achieved ISO 14001 environmental certification.

SEVEN P S

PRODUIT: The ibis standard guarantees its customers around the world offer homogeneous: a modern room connected and soundproofed bedding to innovative comfort, breakfast from 4am to noon and a varied cuisine, Attentive and efficient.

PRICE: According the price of ibis is one of the major determinants of the profitability of the hotel, and the price also depends on which city the hotel is situated, so Ibis Greenwich is little be expensive because of the activity and the advantage that the around him.

PLACE: Ibis Greenwich is located in a very charming and cute town, and is located in the heart of Greenwich, near the Maritime Museum, Cutty Sark, and Royal Observatory and the train station

PROMOTION: regarding the promotion hotel ibis create a new concept where you reserve 2 nights with Ibis styles every Tuesday and you pay for just 1 night, you can book to in last minute.com you will have possibility to get 50% every week end Friday and Saturday.

PEOPLE: The Ibis Greenwich has a very friendly receptionist staff and very harsh reception of this profession the qualification requires is GCSE or LEVEL and is depend for which brand or star are you working if you don’t have any qualification but you have a motivation for the trade of the Ibis hotel industry hotel will propose you evaluation of training to evolve a team leader to manager.

PROCESS: all Ibis customer use internet to book or do they are rooms reservation or, send of Email or calling the line reservation for and all our reservation agent will reply to the customer by email, fax, or post.
PHYSICAL EVIDENCE: the hotel is clean, the rooms are clean, quiet, well heated hotel, the staff are presentable and pleasant
http://books.google.co.uk/books?id=zFfo2MGH90gC&pg=PA41&source=gbs_toc_r&cad=4#v=onepage&q&f=false
analysis of the Micro and Macro Environment of hospitality marketing
THE MACRO ENVIRONMENT

Economy: Consumers spending on hospitality services are discretionary spending. The share of household budgets spent on food away from home declined slightly during the recession of the early 1990s (Putnam and Allshouse 1999).

Society and culture: As social and culture values, beliefs, and opinions change, opportunities are created for new products, services, and concepts. As people become more concerned about second-hand smoke, more restaurants, even in states where a complete smoking ban is not required, have become completely smoke free, Hotel also provide non-smoking rooms or floors in response to the contemporary climate of the social environment.

Political: the restaurants restaurant industry continues to experience pressure from the government, to improve nutritional labelling or menus.at the state and local levels, destination marketing agencies, such as state tourism offices and convention and visitors, play an important role in building sales for the hospitality industry.

Technology: the greatest impacts of technology on hospitality operations are in the area of communications and the amount and quality of information available for example computers are used to keep track of a guest’s history on spending, Hotel offer automatic check in and check out etcaˆ¦

Environment: Many hospitality organisations have implemented environment friendly programs like many restaurant serve water only on request, and hotels ask guests to keep towels on the rack if they will be used again so that they will not be washed unnecessarily.

The micro environment

Competitors the market place for independent operations is much more competitive than it was just a few years ago. The high degree of competition in both the hotel and the restaurant segments affects pricing strategies and all other elements of the marketing mix. And the relatively fragmented nature of the industry means that the environment will remain highly competitive and unpredictable.

Customers: families are important to hospitality marketers for two reasons
PESTEL POLICAL ECONOMIC SOCIAL TECHNOLOGY environment legal

Political The political scene has an enormous influence on the regulation of businesses, the purchasing power of buyers, as well as related companies for this reason, we had to take a look at many criteria policy so that companies can grow and perspective is rather a healthy atmosphere.

Economical Marketers need to consider the state of a trading economy in the short and long terms. This is especially true when planning for international marketing.

Social and cultural the social and cultural influences on businesses vary from one country to another. It is very important that such factors be considered. What is the dominant religion, what are the place of men and women within the society, what are the reactions when coming to foreign products and services? In the hotel industry the sociological aspects of UK have not really affected the business; UK is a rather open minded country and therefore is easy going for the hotel business.

Technological Technology is vital for our competitive advantage, and is a major driver of globalization technology offers companies a new way to communicate with their consumers. With development of internet, most of the bookings are made via internet. Finally technology allows for products and services to be made more cheaply and to a better standard of quality.

Environment: PLANET 21 is our 21 commitments to sustainable development. Health, nature, carbon, innovation, local development, employment and dialog: 21 commitments to help the world run a little more smoothly.

Legal: these are related to the legal environment in which firms operate. In recent years in the UK there have been many significant legal changes that have affected firms’ behaviour.

Opportunities
Development of skills, career opportunity Evolution of poste to another like (the manager at reception), possibility to travel around the world
IBIS HOTEL SWOT
STRENGTH
Located in the heart of Greenwich
Near the Maritime Museum, Cutty Sark,
And Royal Observatory
And train station.
The rooms offer satellite TV and internet access.
Relax at the bar with a coffee or a glass of wine
Let your self be tempted by the snacks and light meals that are offered.
Increase the twin rooms
Threats
There is strong competition in the market, opening of smaller hotel, and client requests a very high qualification
Weaknesses
The hotel charged me for twice for the same room on the same night, claiming I did not show up for the second of the…
I could not park at the hotel, the two extremely miserable receptionists offered me the ?10 parking permit which would enable me to park…
Tiny rooms uncomfortable beds
PORTERS FIVE FORCES

According to Porter (2001) the internet is an enabling technology that can be used within the context of a good business strategy in any industry. The five forces that impact competitiveness which are outlined in Porter’s 1980 work are: barriers to entry, threat of substitutes, bargaining power of buyers and sellers, and the rivalry among existing competitors. The most important determinant of a marketplace’s profit potential is the intrinsic power of buyers and sellers.

Threat of Substitute Goods

In the hotel industry there is usually another hotel just around the corner. They appear in all price ranges, with varying levels of service and amenities.

The constant challenge will always be to get the guest to choose your hotel over the competitor. The internet makes the overall market more efficient while expanding the size of the potential market and creating new substitution threats. Given the potency of this threat a superb internet presence is vital.

“Bargaining Power of Buyers Business persons choosing a hotel for business travel are savvy consumers and they are comfortable with computer technology, It has become very simple for them to go online and book a hotel. They no longer need travel agents, corporate travel consultants or middle men of any kind to determine where they will stay. Porter’s model predicts this elimination of intermediaries.

Rivalry among existing competitors

The rivalry among competitors in the hotel industry is fierce. When potential customers can learn about a hotel on line, the internet reduces the differences among competitors. People tend to seek the best price for the best experience and the tendency is to reduce price to be competitive. The internet covers wide geographical areas so the market is widened increasing the number of competitors.

Barriers to Entry

The initial investment in the hotel industry creates quite a barrier to entry but certain barriers to entering the hotel market are reduced by the internet. A presence on the internet reduces upstart marketing costs somewhat, and gives the new competitor access to potential suppliers and resources..

Bargaining power of suppliers

While this is not a substantial threat in the hotel industry it can have impact especially in the area of labour. With an aging population, there are fewer people to fill service industry jobs and hotels which can attract excellent staff have a greater chance of providing excellent and exceptional experiences to their clientele. As part of their internet strategy all hotel chains should have a section on recruitment for employment.

http://themarketplaceoflife.blogspot.co.uk/2011/02/porters-five-factor-model-and-hotel.html
Segmentation and positioning

According to the Ibis website the SEGMENT AND DESIGN is International standardized brand. ROOM SIZE 16/17sqm – Can be customized according to market requirements. BEDDING the bed comfort is one of our utmost priorities. We will be launching a new ‘Ultimate Comfort Bed’. QUALITY Most of the hotels have been ISO 9001 certi¬?ed.

ENVIRONMENTAL FRIENDLY Over 400 hotels in 17 countries have obtained ISO 14001 Environmental Certi¬?cation. Since its creation in 1974, ibis has expanded continuously and has a network of 957 hotels, 117,171 rooms in 55 countries***. This strong global positioning is the result of an ambitious expansion plan launched in 2007.

http://www.accor.com/fileadmin/user_upload/Contenus_Accor/Franchise_Management/Documents_utiles/Developpement/ibis_megabrand_developpement_brochure_022012.pdf
http://www.accor.com/en/brands/brand-portfolio/ibis.html
Branding
An ultimate comfort offer the ibis room: modern, comfortable and well-equipped in every hotel of the network, the ibis room is designed to offer to its guests a happy sleep and the possibility to work calmly: soundproof, connected to the hotel Wi-Fi, with a flat screen LCD TV, a spacious bathroom and a desk.
Brand new bed, brand new comfort Ibis, the good-night’s-sleep specialist, has developed an innovative and revolutionary bedding concept. Pillows are fluffy, the duvet is super-soft and the high-tech mattress aligns with the density points which provide your body, so your sleep will be deep and refreshing. And the ibis secret weapon is a 7cm topper of extra comfort for a soft and welcoming feel. Unique in the economy hotel segment, the new ibis bed will transform your nights.

Recommendation Ibis hotel must focus more on business segment and individual travelled, must change they are design room, also enlarge the lobby space.

Conclusion The success in the tourism sector is not within the reach of everyone, the trade of the hotel industry and catering require certain qualities very Particular. First of all, and contrary to what we tend to believe that carriers are not easy, they are certainly travel, leisure, pleasure, but the majority of jobs are sedentary serious or stressful.

The Hotel And Tourism Tourism Law Tourism Essay

In problems with the Environmental Issues or Laws, with the cooperation of our tourism they develop awareness, concern and knowledge of the environment and its different importance and other things. Those are different laws that have rule in Philippine tourism, including or even the different government office is involved too. It will also provide current situation that have in the tourism, travel and making hospitality which may be analyzed, interpreted and doing what can do on laws that have. The Environment laws protect our natural resources by controlling businesses that have the possible cause to them. Due to the matter of these laws, the Environmental Protection was formed whose main duty that must have done is to control and decrease pollution in finding out some materials that could cause harm, to see that companies that may cause environmental injury, they sets right of practice to lessen environmental effect and to carried punishments for those who did not follow environmental rules.

Therefore, for any industry or in the hotel and tourism, it is helpful to be well known with the matter that given by our environmental laws, and responsible for law that government given, and the kinds of different way and some business through which those environmental laws are need to implement. Tourism or the Hotel Management can have different effects on a given area such as economical, social, environmental etc.The most important economic effect that tourism has is that it provides more employment for the people in that area and hence in a way increases their standard of living. In fact certain economies primarily run on tourism.As a result it also helps the region as a whole to develop and as a result the governing bodies can utilize the funds to promote the destination and make it more attractive for tourists.

Tourism is now one of the world’s largest industries and one of its fastest that is develop in our country. For many countries tourism is seen as a main used for wide development, as it alert to the new different economic performance or activities that have in the government. Tourism may have a positive economic effect on the balance of payments, on employment, on gross income and production, but it may also have negative effects, particularly on the environment. Unexpected things in developing tourism can result in such a worse of the environment that tourist growth can be demanded. Being the major source of tourist product of the government, therefore it should be protected in order to have something development of tourism and doing good for the country in following years.

In additional of business activities worldwide and as a result of more high knowedge , there has been increasing learn to everyone and concern with the injury to human health and environmental damage that cause by the different business activities .These problems is need for business and industry to be controls at all levels, and for the main that could be hardly sustain development to be established in international and national environmental laws to make sure that foreign investment and other business activities lead to development that is sustainable in environment . In this way, the Hotel and Tourism Management play an important role in development . If the government takes the recommended actions for development and promotion it will establish market targets that specify the number and types of tourists that the country will be able to attract. To make sure that national and local tourism development agreements stress a policy of sustainable tourism development.

Incentives that given by the government can encourage many corporations involved in the tourism business to do more their activities to have more recently having a large countries. Thinking of environmental problems it will assist the manager in helping such individual responsibility for and liability to environmental damage, in integrating environmental affairs with operations, and in developing policies and professionals to manage environmental issues. Tour operators have a great deal of influence on the destinations, activities and overall experience of tourists. Therefore its hard that they have understand the idea of ecotourism and the conservation requirements of protected areas that have rules to follow. They need to be fully aware that the ecotourism product they are trying to promote is easily broken and must be carefully preserved. The tourism industry is also an important partner since it is a vital source of information about need trends, promotion and marketing. It would bring attention to the present and future environmental issues facing the health of our planet and the people it supports. And our responsibility to protect the health and well-being of that ecosystem start to beginning of a day on the number of aware that surrounds in the world.

Philippine laws rule the rights and obligations of which support in the hospitality and tourism industry. It provides for their rights, liabilities and even benefits as order by law. It affects the globalization of the tourism industry, also in opportunity to begun addition or widely into the international market or in target grow internationally. Realize the level of technology and technological capabilities within the host country in order to assess the advantages or disadvantages the hotel may face. Human activities are sources of environmental impacts. Since a sustainable environment must be achieved, individuals should make efforts towards developing and protecting the environment in learning of good methods, techniques, and policies.

Human activities are sources of environmental impacts. Since a sustainable environment must be achieved, every person should make efforts towards developing and protecting the environment by learning or doing of good methods, techniques, and policies. Support different developing countries’ efforts to implement different things that could have in development the practices and protect the global environment. To make sure that the goal is in full support of environmental laws.

Overall, consideration of the environment and stick to environmental laws and regulations have become important in the day-to-day behavior of business or in the Hotel and Tourism Management all in the Philippines or throughout the world. Working together by the businesses, workers, environmentalists, and government officials is to find economically into our environment. In helping of our government rules as well our tourism department, we can do better for the everyone’s life. Inspite of rising the demands of needs of everyone, of everyone come to show full support to the strong campaign for the different environmental laws or regulations, with the biggest role of our tourism in advocating and promote or not violating any rules to anyone who is responsible, we should have all the confident to win this one..

With the skills or knowledge of all in the tourism management and see how that connects and from there start volunteering for programs and tell people about it.” But before that first learn how blessed we are and how rich our natural resources are, you would be inspired and motivated to take better care of it. From there, you start with yourself not only our government who pay attention on it.

Sources

http://www.egerton.ac.ke/index.php/bsc-ecoahos.html

http://bio427.blogspot.com/2010/10/environmental-laws-of-philippines.html-.

http://wiki.answers.com/Q/What_are_the_Philippine_tourism_laws#ixzz2718t1XVm

The Host Of Community Perception Towards Tourism Development Tourism Essay

Over the past few years, Grand-Baie witnessed an increase in tourism development and the number of international tourists. Though tourism development plays an important role in enhancing economies, tourism development may conflict with the region’s conservative traditions and culture. The purpose of this research is to identify the attitudes and perceptions of residents of Grand Baie towards tourism development based on socio-cultural aspect by: (1) applying Ap & Crompton’s (1998), (2) measuring social or cultural environments, and the residents’ acceptance of visitors, (3) by identifying resident attitudes based upon demographic factor.

Respondents were selected using a random sampling technique to complete a survey instrument. Descriptive statistics, factor analysis, independent t-tests and One way Annova were used to describe data and to better understand resident attitudes. Survey findings reveal that resident attitudes differed according to respondents’ age, length of residence, and ethnicity, particularly with respect to perceptions of change in local services and natural environment.

Acknowledgements

A project of this magnitude is not an individual endeavor. Consequently, I dedicate this mini dissertation to the many individuals who provided support, encouragement and assistance for its realization. A very special gratitude goes to my team members, Mr. Shaktisham Soobhow and Miss Anousha Keetaruth for their support and input.

I would also like to thank my lecturer, Associate Professor Ramesh Durbarry, Head of School of Sustainable Development and Tourism , for his helpful input and guidance which helped me every step of the way and enabled me to fulfill my assignment requirements

Last but not the least; we are grateful to our parents and friends for their support and understanding and also the team working at the Resource Centre of University of Technology for extending their help.

Table of content
List of tables

Table 3.1: Types of Dataaˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦aˆ¦ 16

Table 4.1 Respondent Profile

Table: 4.2 “Host Community Perception based on a Socio-Cultural Aspect”

Table 4.3: “One Way Anova”

Table: 4.4 “One Way Anova”

Table 4.5 ‘Host Community Perception Towards a Positive Socio-Cultural impact’

INTRODUCTION
1.0 Tourism in Mauritius

Mauritius has become a well known tourism destination the world over with arrivals rising from 103,000 in 1977 to 915,000 in 2010 for the first trimester. Since the mid 1990s Mauritius more precisely the northern part of the island has experienced a remarkable growth in tourist numbers with international arrivals doubling. It is estimated that this trend is having a significant impact upon host communities in Grand-Baie. Given the fact that tourism development can flourish in an area only with the support of the host community, it is thought that the perception of the host community toward tourism development and impacts serve as crucially important inputs in identifying the strategic and managerial priorities of the tourism sector.

The host community remains one of the most important tools for the promotion and continuous development of the tourism industry in Mauritius. Tourists have direct and constant contacts with the host community and it is the attitude of the host that will determine whether tourism development can be implemented or whether it is successful. Without the host community participation, any tourism development that will be implemented will not be a flourishing one.

1.1 Problem Statement

It is very important to explore host community perception towards tourism because tourists have direct and constant contact with host community. Besides, the measurement of the host community’s perceptions of tourism development plays a vital role in the future success of a destination (Sheldon and Abenoja, 2001).

The benefits received from tourism development may not always be plausible if the negative impacts, such as crime and traffic congestion, outweigh the economic benefits (Chen, 2000). hosts’ perceptions toward tourism development are critical to sustain the growth of community tourism businesses. If the level of hosts’ loyalty to tourism development is high, the potential conflicts between hosts and tourism establishments should be avoided.

Host perception towards tourism development in Grand-Baie Mauritius is a very crucial because the tourism industry there is growing at a rapid pace with the development in that region. Since hosts are there to stay, as such their perception are fundamental to the smooth pace of tourism development.

1.2 Objectives of the Study

The aim of the study is to analyse host community perceptions on the tourism development based on socio-cultural in the region of Grand-Baie in Mauritius. Therefore, the objectives of the study are to

analyse the different components of host community perceptions towards tourism development based on Socio-cultural aspects;

Evaluate the socio-cultural impacts of tourism development on host community

Measure the demographic perception of the Host Community on the tourism development.

2.0 Literature review
2.0 Introduction

Tourism is a product that relies totally upon simultaneous production and consumption. The implication of this for the destination’s host community is that it will come into contact with an alien population during the production process. This contact can be beneficial or detrimental to the host community depending upon the difference in cultures and the nature of the contact.

Tourism can develop and grow when host community has a positive attitude toward it and when they see their role in the process of the tourism development. At the point when a tourism destination is born, the quality if the life of the local hosts goes through radical changes, which are not necessarily negative. Literature suggests that tourism development has created both positive and negative impacts on host communities. The most complex problems that accompany tourism development, reside in the relationship between local host and tourist. Furthermore, there are limits of tourism growth that are closely associated with the place capacity and with the quality of life in the local community.

The most complex problems that accompany tourism development, reside in the relationship between tourists and local host and also the impacts on their society and culutre.

2.1 Tourism Development

Tourism development is an expression that encompasses not only destinations, origins, motivations and impacts, but also the complex linkage that exist between all the people and institutions of that interconnecting, global supply and demand system ( Pearce, 1989).

In general, tourism development within a host community often impacts the community both in negative and positive ways. Resident’s attitudes will be positive if they can use tourism resources such as recreational facilities or if they perceive that tourism development will protect or preserve the environment ( Lankford et al, 2003). Conversely attitudes towards tourism were found to be negative if residents perceived the impacts as negative, or if the resources within a host community diminish as a result of tourist activity ( Lankford et al.,2003; Perdue et al., 1990). The host community perception toward tourism will be affected due to impacts.

2.3 Host community

According to Sherlock (1999), it is difficult to define the term “community” precisely; nevertheless, the word can be used to refer to a group of people who exist in one particular location. Aramberri (2001) suggests that “host societies are in fact communities, made of one piece”. For Williams and Lawson (2001) community is defined as “a group of people who share common goals or opinions”. “Host Community” is particular is defined by Mathieson and Wall (1982) as the “Inhabitants of the destination area”. Similarly, Swarbrooke (1999) defines it as “all those who live within a tourist destination”.. In the light of the previous definition, it can be concluded that a host community consists of all those people in the destination, whether they are homogeneous or heterogeneous and regardless of whether the impacts of tourism are beneficial or otherwise.. However, the host is community is often the last to be notified of tourism development (Thyne and Lawson,2001) and quite often they are not given a chance or encouraged to give their opinioin on tourism issues.

2.4 Relationship Between Host Community and Guest

A good relationship between local hosts and tourist is essential for the long term development of tourism destination. ( Ap and Crompton, 1998). The relationship between host community and tourists is mainly affected by the socio-cultural impacts that are caused due to tourism development (Smith, 1995). Smith (1989) conclude that contacts between tourist and host community if different cultural background take the form of direct face to face encounters between tourists and host of different cultural groups. The interaction between hosts and international guests raises another issue linked to cultural tolerance. As argued by Bochner (1982), the mutual understanding between cultures can create an opportunity for acquaintance leading towards enhanced understanding and tolerance and, consequently, reduce prejudice, conflict and tension between hosts and tourists. This type of contact is experienced by tourists when they travel from home culture to a host culture by hosts when they serve tourists from a foreign culture. That is, both tourist and the host community participate in exploring each other’s culture.

2.4.1 Doxey’s Irridex Model

In 1975, Doxey devised a theoretical model in which it states that an increase in numbers of tourists and a more developed tourism industry at the destination results in irritation in the host community. In this case the perception of host community vary from ‘euphoria’ ( a feeling of happiness or comfort) to ‘apathy’ when locals start losing interest in tourism; to ‘annoyance’ after the number of tourists and the unfavorable impacts have increased ; and finally ‘antagonism’ ( a generation of hostile reactions against tourism) (Cordero 2008).

Although Doxey’s model is a useful approach towards identifying the four stages of tourism evolution at a destination, it has been criticized for its limitation by Wall and Mathieson (2006) because it is a unidirectional model intended to represent the entire nature of the host community.

2.5 Host community perception towards tourism development

Research has been conducted for the convenience of tourists, while local community perceptions and attitudes towards the industry have been given less of a priority (Murphy 1985). Butler (1980) claimed that there is a correlation between the development of tourism and the attitude of the domestic people towards the tourists. Positive attitude is gradually replaced by the negative attitude as the time passes.

Studying host community attitudes and the antecedents of resident reaction can help both residents and planners (Williams and Lawson 2001).Williams and Lawson argued that it was possible to select those developments that can minimize negative impacts and maximize support for the industry. By doing so, on one hand the quality of life of residents can be maintained or enhanced; and, on the other hand, the negative impacts of tourism in the community will be reduced.

2.6 Tourism Impacts

Researchers in the early years of the twenty first century list an impressive range of both positive and negative impacts on the host community as a result of tourism development (Fredline and Faulkner, 2000; Upchurch and Teivane, 2000; Gursoy et al., 2002; Besculides et al., 2002). The study of impacts from tourism on local communities takes in a range of literature that includes both the positive and negative effects of hosting tourists to a community. However, researchers agree that a necessary condition of successful tourism development strategy is the inclusion of residents of the entire community if tourism investment is to yield substantial returns (Allen et al., 1988, 1993; Jurowski & Uysal, 1997; Long et al ., 1990; Snepenger & Johnson, 1991).

2.6.1 Socio-cultural Impacts

Tourism is a socio-cultural event for both the guest and host (Murphy, 1985) and the contact between host and tourists can be beneficial or detrimental to the host community depending upon the difference in cultures and the nature of the contact .Tourism development also affects the social, cultural and environmental aspects within a destination. Socio-cultural impacts are concerned with the “ways in which tourism is contributing to changes in value systems, individual behaviour, family relationships, collective lifestyles, moral conduct, creative expressions, traditional ceremonies and community organization” (Pizam & Milman, 1984, cited in Haralambopoulos & Pizam, 1996, p.503).

Tourism development increases and promotes cultural exchange between tourists and residents. Tourism can also be a force to preserve and revitalize the cultural identity and traditional practices of host communities and act as a source of income to protect heritage sites (Easterling, 2004).

However, the cultural changes caused by tourism “threatens to destroy traditional cultures and societies” (Brunt & Courtney 199, p 495) and to others it represented “an opportunity for peace, understanding and greater knowledge” (Brunt & Courtney 1999, p.495).

2.7 Factors Influencing Host community perception towards tourism development

To understand the antecedents of host communities’ perception towards tourism development, extensive literature has attempted to examine the influences of socio-demographics on attitudes, such gender ( Ritchie 1988; Weaver & Lawton 2001), age (Brougham & Butler 1981; Fredline & Faulkner 2000; Madrigal 1995; weaver & Lawton 2001), length of residency ( Allen et al 1988), Education ( Weaver & Lawton 2001). Those tested variables are classified as the intrinsic dimension which includes residents’ demographic attributes.

2.7.1 Demographic Factors

The use of socioeconomic factors (Harill, 2004) like income, ethnicity and length of residency to explain host community perception has been widely used. These variables are included simply as standard point of survey instrument.

2.7.2 Gender

Regarding gender, it was found that woman were more opposed to tourism development than men due to perceived negative impacts, such as increase in traffic, noise and crime although acknowledging positive benefits, including community facilities and regional economic benefits. In a study in California, (Harrill and Potts, 2003) also found gender to be a significant predictor of tourism’s perceived economic benefits, with more women than men negatively disposed toward tourism development.

2.7.3 Education

It was found that more educated people having more positive views of tourism (Weaver, 2001). Hosts who have a tourism education background were more in favor of tourism because of the economic and social improvements. In the context of Samos, Greece Haralambopoulos and Pizam (1996) indicated that well-educated people were more correlated with positive tourism attitudes.

2.7.4 Age

Age has also been explored as a factor in host community perception toward tourism development and received more attention as the baby boomers retire and seek tourist destination in which to work and have vacation. Older hosts are generally as favourably inclined toward tourism development as young resident (Tomljenovic and Faulkner, 1999). In addition, older hosts are more tolerant of international tourists and less concerned about tourism’s adverse environmental impacts. However, a study of Kusadasi, Turkey revealed that older hosts had more negative perceptions than youngsters.

2.7.5 Length of Residency

Length of residency (Girard and Gartner, 1993) found that for those host who has a second home in the tourism development community appreciate the availability of goods and services from increased tourism, but long term host community who stay permanently in the community do not want to see any increased in tourism development. Thus, long term host had a less favorable perception of tourism than did short term hosts.

2.8 Summary

This chapter provided reviews of literature relevant to the present study. The review provided the basis of the entire research design. Furthermore, the review results would be brought into the Discussion chapter to compare the findings of the present study with the existing literature.

3. Methodology
3.0 Introduction

This chapter provides the methodology of the survey envisaged on host community perception towards tourism development based on socio-cultural aspect. In this vein, it represents the crux of the study. It offers a framework about how the research was carried out and elaborates on the questionnaire design and enumerates several limitations pertaining to the survey.

3.1 Research Design

For this research both primary and secondary data were used.

Table 3.1: Types of Data
Primary Research
Secondary Research

Questionnaire

Books

Academic Journals

The research method used to collect and analyse the primary data was based upon a quantitative approach. This is so because it made it possible for the respondent that is the host community to express their feeling and perception towards tourism development. For this purpose, a questionnaire was designed and distributed to the targeted population.

3.2 Sampling Frame

This study was conducted in the Northern region of Mauritius that is in Grand-Baie which is one of the major tourist destinations. As such, the targeted population for this study comprised of hosts community of Grand-Baie. This is so because tourism development in Grand-Baie has reached the maturity stage (Butler Destination Life Cycle). There is a high concentration of tourism development in this northern village compare to the other region. 60 questionnaires were used for the survey.

3.3 Questionnaire Design

The questionnaire was prepared following a review of existing literature dealing with hosts’ perception toward tourism development based on socio-cultural aspect. For this particular study, the scales from Ap and Crompton (1998) as well as Lankford and Howard (1994) were adopted and modified. An interviewee completed questionnaire was designed and it consists of 38 questions. The questionnaire was categorized into section A, B and C, where A and B were measured using likert Scale and C the respondent profile background. (Refer to Appendix A)

3.4 Hypothesis Testing

The following hypotheses were tested:

H1: Tourism Development has an impact on Socio-Cultural aspect

H2: Residents Perception towards cooperation between local people and tourism development differs across gender and level of education.

H3: the level of hostility towards tourists differs across length of residency and occupation.

3.5 Pilot Survey

To judge the validity of the questionnaire a pilot survey of 10 questionnaires were undertaken with host community to check whether there is a proper and broad flow of questioning. The number of questions were reduced and also the rephrasing of sentence.

3.6 Data Collection

An informal interview was chosen as a method of data collection with the host community. Questionnaires were distributed door to door using a random sampling procedure. Interviews were conducted during the day so as to obtain a more representative sample within households. during the week day. The overall data collection lasted for 1 day, with a total of 53 questionnaires completed, which result in 88.33% response rate.

3.7 Data Analysis

A number of statistical procedures were carried out for this study using the Statistical Package for the Social Sciences. The socio-demographic factors like education, occupation, level of education and gender were used as independent variables and the 32 Likert scale statements as the dependent variables. One-way ANOVA and descriptive analysis were used.

3.8 Limitation of Study

Normally, no survey can experience a perfect evolution. Similarly, the present one had to undergo certain constraints and was subject to various limitations as exhibited below.

Host people were busy working.

They didn’t want to expressed themselves as they felt embarrassed

3.9 Conclusion

This chapter provides a thorough explanation of how data was collected, processed and analysed for the methods of data collection. It gives further details on the purpose of the research and describes how the questionnaire was designed. Lastly, the sampling frame as well as the limitations of the research was discussed.

4. Results and Findings
4.0 Introduction

This chapter discusses the findings of the questionnaire survey. It not only deals with the individual analysis of each question, but also compares one question in relation to others and tries to establish a link between the results found.

4.1 Profile of the Respondents

Demographic information about the respondents is provided in Table 4.1. Males account for a larger share of the respondents, which is 50%, following 38% for female. More respondents were married, with a percentage of 53.33, and 28.33% were single. The majority, 35.33% were employed or working in the tourism sector, 23.33%. Most of the respondents of Grand-Baie work in hotels nearby their house but also many of them worked for themselves.

More than one half of the respondents, 65.33%, lived in Grand-Baie for more than 15 years. Around 52.33% reported that they have studied till School Certificate .

Table 4.1 Respondent Profile
Number
%
Gender

Male

30

50

Female

23

38.33

Marital Status

Married

32

53.33

Single

17

28.33

Divorced

2

3.33

Widowed

2

3.33

Occupation

Student

5

8.33

Employed

21

35.33

Retired

1

2.33

Own Business

12

20.33

Tourism Sector

14

23.33

Education

CPE

8

13.33

SC

31

52.33

HSC

10

17.33

Undergraduate

3

5.33

Graduate

1

2.33

Length of Residency

Less than 5 years

2

3.33

5-10

11

18.33

11-15

1

2.33

More than 15 years

39

65.33

Total questionnaire

53

88.33

4.2 Host community perception based on a Socio-Cultural Aspect

Table 4.2 illustrates the overall results of the descriptive analysis of section A and B of the questionnaire, which in turn show that there is a significant variation (according to the Mean and SD values) between the perceptions of the respondents towards socio-cultural aspect according to the degree of exposure. The domestic people show a very positive attitude towards the increasing number of tourists in the region at the beginning because they have high expectations from the tourist in long term basis. Furthermore, from the table itself, the mean is ranged from 4.81 to 2.57. Demonstrating that the host community highly accepts the presence of tourists in their area although the level of tourist has increased for the recent years.

The results clearly shows that the presence of tourist in Grand-Baie help for the conservation of prestigious monument and also the awareness of the culture. The host community of Grand-Baie stated that their tradition are not being affected at all, as shown in the statement 5. The analysis shows that the tourism development does not make enough effort for the tourist to be aware of the host community culture. Moreover, another reason why the host community perception is low is that the tourism development is much more profit making.

Table: 4.2 “Host Community Perception based on a Socio-Cultural Aspect”
Factors
N
Mean
Std. Deviation

1A

Residents accept the presence of tourists

53

4.81

0.441

2

There is awareness and recognition of the culture and heritage

53

4.28

0.744

3

Historical buildings are restored and protected

53

3.89

1.155

4

There is cooperation between local people and tourism development

53

3.96

1.270

5

Traditions of the local is affected

53

2.91

1.458

6

Local people changes their way of living

53

3.47

1.422

7

There is a variety of entertainment in the community

53

3.49

1.120

8

Tourism increases the level of education in Grand-Baie

53

3.60

1.166

9

Tourism encourages some immoral behavior of some people of the locality

53

2.57

1.352

10

Earnings from tourism lure children in your community to leave school at an early age

53

2.75

1.580

11

Tourism is the reason of some younger`s misbehavior

53

2.98

1.337

12

Tourist make the effort to understand your culture and society

53

4.28

0.632

13

Tourism development give the opportunity to put your culture on display

53

3.89

1.050

14B

Do you welcome the fact that tourist comes in your region

53

4.70

0.696

15

Is tourism only a way of profit making or much more

53

4.36

1.058

16

Due to the number increasing number of tourist arrival in your region can you still support the impacts

53

3.34

1.159

17

Do you feel that there is a feeling of hostility towards tourist due to those impacts by the local community actually

53

3.28

1.215

4.3 There is cooperation between local people and tourism development

Table 4.3 shows the p-value as well as the F value obtained through an ANOVA analysis for both the Gender and Education Level. This analysis shows that there is a difference in the level of perception that varies according to the gender since the p-value is less than 0.05 (= 0.017) which confirms the statement that there is a difference in the level of perception between male and female. In order, to determine where the difference lays a Tukey Test was carried out (Refer to Appendix B).

According to the Post Hoc Test Table (Appendix B), where men disagree with the fact that there is cooperation between local people and tourism development, we found that women strongly agree with the perception that there is cooperation between local people and tourism development which is contrary to what Harill and Potts, (2003) study found. This is so because the p=value is less than 0.05 (= 0.045). The reasons for the level of perception between male and female may vary for different reasons.

First of all, Female may view tourism development in a more positively way as with tourism development many women may find it beneficial for them because they are able to find a job easily or benefit indirectly with small businesses such as craft.

However, the perception do not differs across Education since the p-value is greater than 0.05 (= 0.741). This can conclude that irrespective of the level of education the level of perception is the same. According to the study of Weaver (2001) which states that the educated people mainly those who have a tourism education background are in favor of tourism development.

However, the study made in Grand-Baie demonstrates that the level of education of host community do not has an impact on the level of perception. The reason for this may be because whether a host community is educated or not he or she may find employment due to the tourism development taking place in his locality.

Table 4.3 : “One Way Anova”
Factor Item
Demographic Variable
F
Sig
There is cooperation between local people and tourism development

Gender

3.327

0.017

Education

0.493

0.741

4.4 There is a feeling of hostility towards tourist due to those impacts

Table 4.4 shows the p-value as well as the F value obtained through an ANOVA analysis for both the Length of Residency and Occupation. This shows that there is a difference in the level of perception that varies according to the length of residency of the host in Grand-Baie since the p-value is less than 0.05 (= 0.031). In other words which mean that there is a difference in the level of perception of those living in the region of Grand- Baie. In order to determine where the difference lies a Tukey Test was carried out (Refer to Appendix B).

Referring to the Post Hoc Test Table (Appendix B), where those living in Grand-Baie whether living over there for a long time or short time, it has been found that they do not express a feeling of hostility vis-a-vis the tourist due to the impacts that tourism industry in the region brings in. This is so because the p=value is less than 0.05 (= 0.016).

However, the perception do not differs across Occupation since the p-value is greater than 0.05 (= 0.952). This can conclude that irrespective of the work being done by the host community, the level of perception is the same.

In other words, this demonstrates that the level of Occupation do not has an impact upon the perception of host community. Reason why it is so is because whether they are employed or unemployed or working in the tourism sector, the host find tourism as beneficial for them directly or indirectly.

Table: 4.4 “One Way Anova”
Factor Item
Demographic Variable
F
Sig
There is a feeling of hostility towards tourist due to those impacts

Length of Residency

2.909

0.031

Occupation

0.171

0.952

4.5 Host Community Perception towards a Positive Socio-Cultural Impact

Table 4.5 illustrates the different perception of the host community towards the different aspect. The host community of Grand-Baie has a relatively high positive perception towards the presence of tourist in the region as it benefit from different point of view. This is so because the tourist make an effort to learn the culture of the host community and a

The Hospitality Services Industry Of India Tourism Essay

The Indian hospitality sector is certainly the most apt replication of the belief Atithi devo bhava- touch of tenderness, a helping hand and a welcoming visage. According to the Tourism Satellite Accounting (TSA) research, released by World Travel and Tourism Council (WTTC) and its strategic partner Oxford Economics in March 2010.

Hospitality is the world’s largest service industry, employing millions of people working in hotels, restaurants, cruise lines, resorts, private clubs, casinos, and bed-and-breakfasts throughout the world.

As per the Travel and Tourism Competitiveness Report 2009 by the World Economic Forum, India is ranked 11th in the Asia Pacific region and 62nd overall, moving up three places on the list of the world’s attractive destinations. It is ranked the 14th best tourist destination for its natural resources and 24th for its cultural resources, with many World Heritage sites, both natural and cultural, rich fauna, and strong creative industries in the country.

India also bagged 37th rank for its air transport network. The India travel and tourism industry ranked 5th in the long-term (10-year) growth and is expected to be the second largest employer in the world by 2019.

The hospitality industry is a 3.5 trillion dollar service sector within the global economy. It is an umbrella term for a broad variety of service industries including, but not limited to, hotels, food service, casinos, and tourism. The hospitality industry is very diverse and global. The industry is cyclical; dictated by the fluctuations that occur with an economy every year.

Trends in Hospitality Sectors

Trends that will shape the future of hospitality sector are:

2.1. Low cost carriers:

Travelers in general are more price sensitive to airfare than they are to hotel room rates. Often a low airfare will stimulate demand for travel even if hotel prices are increasing. LCCs are a good option for business travelers, as they have advantages like low costs, more options and connectivity.

2.2. Budget hotels:

More than 50 per cent of occupancy of a majority of hotels comes from the business travel segment. The average room rate (ARR) realized from business travelers is normally higher than from leisure travelers. Heightened demand and the healthy occupancy rates have resulted in an increase in the number of budget hotels. Some of the new players entering into this category of hotels include Hometel, Kamfotel, Courtyard by Marriott, Country Inns & Suites, Ibis and Fairfield Inn.

2.3. Service apartments:

The concept of service apartments, though a recent phenomenon in India, is an established global concept. Villas in Spain, flats in the UK and apartment complexes in the US have all created a viable market for those who want more than just a room in a hotel. Service apartments are the latest trend in accommodation, offering the comfort and convenience of a home without the hassles of having to maintain or look after it. Ideally suited for medium-to-long staying guests, service apartments are a natural choice for corporate employees or expatriates relocating to a particular city, non-resident Indians visiting the country for long spells and foreigners visiting the city for long durations.

2.4. Technology:

Travel and technology have become inseparable. Technology is making its own advances with high-tech video conferencing facilities, web cameras and virtual reality mode of conferencing. On-line bookings, e-ticketing, Wi-Fi Internet connectivity, easy access to information, etc. are just a few areas where technology has completely changed the the way we travel.

2.5. Loyalty travel:

Today, airline-credit card company tie-ups have brought a whole range of benefits to the travelers. These include insurance cover, upgrades, free tickets, access to executive lounges, and a host of other goodies.

Hospitality Industry in India

Today hospitality sector is one of the fastest growing sectors in India. It is expected to grow at the rate of 8% between 2007 and 2016.

Contribution to the economy

Combining unparalleled growth prospects and unlimited business potential, the industry is certainly on the foyer towards being a key player in the nation’s changing face. Furthermore, banking on the government’s initiative of upgrading and expanding the country’s infrastructure like airports, national highways etc, the tourism and hospitality industry is bound to get a bounce in its growth.

The hotel and tourism industry’s contribution to the Indian economy by way of foreign direct investments (FDI) inflows were pegged at US$ 2.17 billion from April 2000 to September 2010, according to the Department of Industrial Policy and Promotion (DIPP).

India’s hotel pipeline is the second largest in the Asia-Pacific region according to Jan Smits, Regional Managing Director, InterContinental Hotels Group (IHG) Asia Australasia. He added that the Indian hospitality industry is projected to grow at a rate of 8.8 per cent during 2007-16, placing India as the second-fastest growing tourism market in the world. Initiatives like massive investment in hotel infrastructure and open-sky policies made by the government are all aimed at propelling growth in the hospitality sector.

Foreign Tourist Arrivals

Ministry of Tourism compiles monthly estimates of Foreign Tourist Arrivals (FTAs) in India and Foreign Exchange Earnings (FEE) from tourism on the basis of data received from major airports. Following are the important highlights, as regards these two important indicators of tourism sector for October 2010.

FTAs in India during October 2010 were 487,000 as compared to FTAs of 446,000 during the month of October 2009 and 450,000 in October 2008.

FTAs during the period January-October 2010 were 4.32 million with a growth rate of 9.9 per cent.

FEE from tourism during the month of October 2010 were US$ 1.18 billion as compared to US$ 1.09 billion in October 2009.

Changes in Demographics

Population is changing and people are living longer

The need to provide family-oriented services will soon peak

Number of older club members will increase

Number of younger workers will decline

A shortage of 10 Million workers is expected.

Government Initiatives/policy

According to the Consolidated FDI Policy, released by DIPP, Ministry of Commerce and Industry, Government of India, the government has allowed 100 per cent foreign investment under the automatic route in the hotel and tourism related industry. The terms hotel includes restaurants, beach resorts and other tourism complexes providing accommodation and /or catering and food facilities to tourists. The term tourism related industry includes:

Travel agencies, tour operating agencies and tourist transport operating agencies

Units providing facilities for cultural, adventure and wildlife experience to tourists

Surface, air and water transport facilities for tourists

Convention/seminar units and organisations

The Government of India has announced a scheme of granting Tourist Visa on Arrival (T-VoA) for the citizens of Finland, Japan, Luxembourg, New Zealand and Singapore. The scheme is valid for citizens of the above mentioned countries planning to visit India on single entry strictly for the purpose of tourism and for a short period of upto a maximum of 30 days. During the period January – October 2010, a total number of 5016 VoAs were issued under this Scheme.

The tourism master plan, the first for Karnataka, envisages initiatives to attract private investment ranging from US$ 2.2 billion to US$ 4.4 billion in the next three to five years. The plan is prepared based on the Vision 2020 document prepared and adopted by the Karnataka State Planning Board. The state government aims to generate 200,000 jobs in the tourism sector in the next five years. The master plan is aimed at making Karnataka the number one destination for tourism in the country by 2020, according to Mr G Janardhan Reddy, Minister for Tourism and Infrastructure Development

Strengths

Natural and cultural diversity : India has a rich cultural heritage. The “unity in diversity” tag attracts most tourists. The coastlines, sunny beaches, backwaters of Kerala, snow capped Himalayas and the quiescent lakes are incredibl

Demand-supply gap : Indian hotel industry is facing a mismatch between the demand and supply of rooms leading to higher room rates and occupancy levels. With the privilege of hosting Commonwealth Games 2010 there is more demand of rooms in five star hotels. This has led to the rapid expansion of the sector

Government support: The government has realized the importance of tourism and has proposed a budget of Rs. 540 crore for the development of the industry. The priority is being given to the development of the infrastructure and of new tourist destinations and circuits. The Department of Tourism (DOT) has already started the “Incredible India” campaign for the promotion of tourism in India.

Increase in the market share: India’s share in international tourism and hospitality market is expected to increase over the long-term. New budget and star hotels are being established. Moreover, foreign hospitality players are heading towards Indian markets.

Weaknesses

1. Poor support infrastructure: Though the government is taking necessary steps, many more things need to be done to improve the infrastructure. In 2003, the total expenditure made in this regard was US $150 billion in China compared to US$ 21 billion in India.

2. Slow implementation: The lack of adequate recognition for the tourism industry has been hampering its growth prospects. Whatever steps are being taken by the government are implemented at a slower pace.

3. Susceptible to political events: The internal security scenario and social unrest also hamper the foreign tourist arrival rates.

Opportunities

Rising income: Owing to the rise in income levels, Indians have more spare money to spend, which is expected to enhance leisure tourism.

Open sky benefits: With the open sky policy, the travel and tourism industry has seen an increase in business. Increased airline activity has stimulated demand and has helped improve the infrastructure. It has benefited both international and domestic travels.

Threats

Fluctuations in international tourist arrivals: The total dependency on foreign tourists can be risky, as there are wide fluctuations in international tourism. Domestic tourism needs to be given equal importance and measures should be taken to promote it.

Increasing competition: Several international majors like the Four Seasons, Shangri-La and Aman Resorts are entering the Indian markets. Two other groups – the Carlson Group and the Marriott chain – are also looking forward to join this race. This will increase the competition for the existing Indian hotel majors

3.9. Major players in Hospitality Industry in India.

1. The Indian Hotels Company

2. ITC/ Sheraton Corporation

3. The Leela Group

4. The Bharat Hotels Group

5. The EIH Ltd (The Oberoi Group)

6. India Tourism Development Corporation (ITDC) / The Ashok Group

7. The Hotel Corporation of India (HCI)

8. Jaypee Hotels Ltd.

India’s Role in Hospitality

The current count of hotel rooms is 130,000, and the country is expected to require an additional 50,000 rooms over the next two to three years, according to World Travel and Tourism Committee (WTCC) estimates

US-based hotel chain, Marriott International, plans to expand its network in India to 100 hotels over the next five-years, stated Arnie Sorenson, Chief Operating Officer, Marriott International. At present, the group operates 11 properties across the country.

The Road Ahead

The contribution of travel and tourism to Gross Domestic Product (GDP) is expected to increase from 8.6 per cent (US$ 117.9 billion) in 2010 to 9.0 per cent (US$ 330.1 billion) by 2020.

Export earnings from international visitors and tourism goods are expected to increase from US$ 11.1 billion in 2010 to US$ 33.6 billion in 2020.

Travel and tourism investment is estimated at US$ 34.7 billion or 7.2 per cent of total investment in 2010. By 2020, this should reach US$ 109.3 billion or 7.7 per cent of total investment.

Roots Corporation, a subsidiary of Indian Hotels Company (IHC), plans to open 60 to 70 budget hotels, known as Ginger Hotel, in 23 locations across the country.

ITC, the Kolkata-based cigarette major, also projected its plan to open 25 new hotels under the Fortune brand over the course of next 12-18 months (or by 2011).

International Hospitality Business

Hospitality is very important component of Service industry in any country’s national economy. When a domestic hospitality company decides to expands its operation into a foreign country, its overseas development recognizes as international business and its business revenue generated from overseas operations are described as service export.

Advantages of International hospitality services:
Management Companies
Investment Companies

Fast Chaining: Hotel management companies can develop much faster using this method with very limited risk.

Reduced risk in running hotel business

Financing the property: management companies need a little or no initial investment

Generally minimum profit is guaranteed and the capital investment will be paid back

The reduced risk: the risk for management companies running the deriving from excess building cost, market recessions or changing markets are all significantly reduced.

With the recognition of the prestigious hotel brand name the value of the property may increase

High return on investment (ROI): due to the low amount of investment required from hotel management companies, very high financial and economic earnings can be achieved

Disadvantages of International hospitality services:
Management Companies
Investment Companies

Obtain only part of the profit

Last control of daily operations of property

Loss of properties potential appreciation in the past 5 years, in many parts of America and Britain, property prices are more than doubled.

The management company may not have necessary year of experience, knowledge or resources in managing overseas business

The owners may interfere despite the contract in some of the management issues limiting the management companies’ operational potentials

Management companies may lose the contract in certain stage

Case Study – TAJ HOTEL

The Indian Hotels Company (IHC) is the parent company of Taj Hotels Resorts and Palaces. It was founded by Jamsetji N. Tata on December16, 1903. Currently the Taj Hotels Resorts and Palaces comprises 57 hotels at 40 locations across India .

Physical Evidence

Lobby- It being the first & the last part of the hotel that the guestsees,thus it should be well designed, also to ensure that the customer returns again the room should be comfortable and should have made his stay hassle free process

Major service encounter that extremely delighted or disappointed are:

1. Check – in.

2. Bell person carrying luggage to the room.

3. Food.

4. Wake up call

5. Check out.

PROMOTION STRATEGY

Promotional schemes are carried on regularly the hotel has many loyalty programe, clubes, membership, previlage etc some of them are

The Taj Inner Circle.

The Taj Junior League.

The Taj Club.

Taj also offer Taj surprises including weekend savers,value vouchers,book early get more.

ADVERTISEMENT

Business news paper(E.T, Financial Express, Bombay Times)

T.V channels like STAR NEWS,CNN and CNBC.

Magazines like THE OUT LOOK TRAVELAR,GO NOW and TRAVEL.

Global Awards:
Jan-2008

Dun & Bradstreet – American Express Corporate Awards 2007 -India’s Top 500 Companies 2007 – in the “Hotels” category – The Indian Hotels Company Ltd.

Sep-2008

Taj Hotels Resorts and Palaces is proud to receive the award for

‘The Best Business Hotel Chain in India’ by the readers in UK at

the 2008 Business Traveller Awards.

Some Mile stone of Taj GROUP

1903 – The Company opens its first hotel, the “Taj Mahal Palace” in Mumbai, India. The Company opens its first five star deluxe beach resort, the “Fort Aguada Beach Resort” in Goa.

1974 – The Company begins business in metropolitan hotels by opening the five star deluxe hotel, the “Taj Coramandel” in Chennai

1980 – The Company opens its first hotel outside India, the “Taj Sheba Hotel” in Sana’a, Yemen.

2006- The Company acquires the “W” hotel in Sydney, Australia which is later renamed as the “Blue Sydney”.

The Company commences operation of its first wildlife lodge at Mahua Kothi, Bandhavgarh.

2007 – The Company acquires the “Ritz-Carlton” in Boston, USA which is later renamed as the “Taj Boston.” The Company commences operation of its second wildlife lodge at Baghvan, Pench.

COMPETITERs

The hotel has many competitors like

The Oberai towers

The Marine Plaza

The Orchid.

Le Meridian

Mergers and acquisitions

Starwood Group (W Hotel)

Sydney

Dec-05

The Pierre US

July 2005

Regent Hotel (renamed Taj Lands End)

India

Sep-02

The Hospitality Industry Tamilnadu Tourism Essay

This study has analysed the trends of the hospitality industry with special importance on Tamilnadu where the researcher has aimed at helping and growing the family business. This is done to get a better understanding of the Chennai’s market place, along with many other important cities in the state making it possible to go on board on selected strategies to effectively reach the local consumers.

As Mohanty (2008) says, Hospitality is all about offering and comforting someone by all means to their needs. Good support from customers can be achieved by receiving and entertaining each and every single guest. In commercial context point of view, the word Hospitality refers to hotels, resorts, restaurants, clubs, catering etc.

In today’s world Economic Growth of a country depends on Hospitality industry along with Industrial and Agriculture. Tourism and Hotel sector is a widely expanding and booming segment in the market, and this industry offers huge job prospects to Indians.

Due to globalisation there has been immense growth in Hospitality segment in India, especially in the metro and cosmopolitan cities. This has resulted in demand for well qualified and experienced candidates from this field in India and Overseas. India has become a ideal place of tourism and is the only country in the world with different cultures, languages and diverse topography along with political stability.

India has become the place for Information technology companies and as Purushottaman (2005) says India has propelled to the top of the world in both Information Technology (IT) and Information Technologies enabled Services sector (ITES). Many MNC’s from all around the world have opened their operations throughout India especially in South India. Initially Bangalore served as the Indian operations head office for many companies but then later on Chennai, capital of Tamilnadu state is becoming a business hub for major MNC’s. This is due to involvement of many foreigners coming to India for business development. As a part of business development, business travels boomed to high and due to this the Hospitality sector developed along with more profitability. Nearly 50% of occupancy in all the hotels in major cities of Tamilnadu like Chennai, Madurai, Coimbatore, Trichy, Tuticorin, Tirunelveli have come from business travellers. In this particular research, the author has evaluated the development of the hotel industry with a focus on above mentioned cities in Tamil nadu, India.

The performance of Hotel Industry is back on its development and growth path as it had been in decline for the past two years (i.e.) 2008 & 2009 due to global economic recession, which affected the hospitality business in India. According to HVS 2009 report, the foreign arrivals have declined by 20% in 2008 – 2009, resulting in decline of occupancy and performance of hotel industry throughout India. All the major cities in India like Mumbai, Chennai, Delhi, Bangalore, and Kolkata had an average of 10% marginal decline in occupancy rate. According to FHRAI and HVS 2009 report, though the industry has faced decline in performance, the demand for the industry will immensely grow from 2010 and has reported that an average 5% growth will be recorded from 2010. In Tamilnadu though the industry faced decline in its capital, Coimbatore and Ootacamand has raised its status to become one of the 12 major cities in India after the metro cities. According to HVS 2009 report, the occupancy rate of Hotels at Coimbatore, Madurai in Tamilnadu has increased by 5% respectively, though the industry on a whole has faced decline. So this clearly indicates the rise of demand for Hotel industry in Tamilnadu. In Industrial aspect all the cities in Tamilnadu has developed along different businesses. In last year several new projects have been announced in Chennai, Coimbatore, Madurai, Ootacamund which is due to higher growth market and more are required to ease the current situation. General occupancy rate and cost of rooms is high in major cities as the demand for rooms have increased but then the number of available rooms is less than the demand (HVS International survey, 2004

).

India economy has boomed in the last 5 to 6 years which is due to flourishment in IT sector, Finance, Banking, Telecom , Biotechnolgy, Real estate, Retailing etc. As Joshi (2005) denotes many major hubs in the country lacks quality hotels and rooms. Though the industry has developed a lot in the previous decade still there is demand for number of rooms required is under lack. He also denoted that India will become one of the world’s fastest growing tourism market and as suggested by him, the number of foreign tourists have increased in the year 2006 and 2007.

SWOT ANALYSIS of Hotel Industry in Tamilnadu.
STRENGTHS

Natural and cultural diversity: India on a whole is very rich in cultural heritage and values. While considering the state of Tamilnadu, its heritage and history dates back to B.C., it has many historic places and monuments. The state pocess three main tourist spots in the country namely Oatacamund, Kodaikanal, Courtrallam and it’s the place where Rameswaram lies, one of two most spiritually important places in India for Hindu’s community. The state is along the southern coastal line of the country and has got many beautiful and sunny beaches along is shore. The state has become the region for business as it has got all the transportation means required and the state capital has one of the busiest ports in India. The state has got 8 national sanctuaries, and it has got many hills station including Ootacamund & Kodaikanal.

Demand Supply gap: There has always been a mismatch between demand and supply of rooms in Indian Hotel Industry. This has been the reason for higher room tariffs and the level of occupancy. The demand is raised a lot as India is hosting the 2010 Commonwealth games, and most importantly the demand for Chennai will increase due to 2011 Cricket World Cup in India. Many star categorized hotels have come in important cities of Tamilnadu in the last decade.

Economical Growth: India’s economy is growing to new heights and been predicted to be second after China by 2050. India has now become a part of G20 nations which in turn denotes the growth of the Indian economy. Chennai city being one of the major business hubs of India is Bourne to immense growth in near future due to increase IT firms, growing Industry in numbers, government tourism development, and other business activities. Coimbatore, the other city in Tamilnadu which was initially a hub for textile industry has now turning out to be IT hub with many MNC’s started to have their operations there. Due to industrial and automobile growth, the state of Tamilnadu has now become more occupied with the state having 6 different automobile company plants. Overall the International and domestic economic growth has brought in huge opportunity for Hotel Industry in Tamilnadu. Many huge player in the global market with global chain have started to walk in to Chennai market and along the state (tamilnadu).

Weakness

Slow Implementation- Growth in the tourism sector is considerably slow when compared to other departments. Though the market needs have increased, the adequate infrastructure facility for Hotel Industry is still lacking. Lack of proper manpower has always been an issue in the industry.

Regional Imbalance: Regional Imbalance of hotels is prevailing a lot throughout India and that prevails in Tamilnadu also. Still some of the tourist spots in Tamilnadu, there isn’t adequate number of rooms for to increase the demand and develop that region to be major tourist spot. Due to this, those tourist spot regions are still under developing schemes and they lack the actual demand which they are capable of producing.

Capital Intensive: Initial cost involved in Hotel construction project (i.e.) cost of land is very high and contributes 50% of the total project cost, whereas in other countries it is around 15%. This operates as a major restriction to the Indian hotel Industry, with Tamilnadu being no exemption to this context.

Long Gestation Period: Due to lack of proper government development scheme being actuated many rural tourist spots with cultural importance and heritage places lack hotels. This is due to long gestation period for the hotel to get back its breakeven point and also the future growth of the firm is under immense doubt. As mentioned earlier land cost being high in India, time period for Hotel development needs to be very fast in order flourish in the market. As of now this long growth period is making a full stop to Hotel Industry development in those areas.

Oppurtunities

Rising Income: The tendency of spending has increased among Indians due to rise in income levels. People of different age groups are bound to spend on different purchases and are more bound to spend on leisure tourism on a whole.

Economy Rise: As stated in The Financial express (2008), Overall Indian Hotel Industry is going through a healthy growth phase due to rising economy which has made many foreign companies and investors to enter India, which in turn has raised the occupancy in Hotels. Thus due to economy rise government have implied many schemes to develop tourism. It has also stated that in Conde Nast Travaller ranking, India is been ranked 4th among 167 countries in most preferred travel destinations. This denoted that India has making its mark on global tourism sector.

Threats

Global Recession: In the last couple of years though the market for Hotel Industry has increased, the occupancy level has decreased due to global recession. Due to this situation, the percentage of business travellers dropped heavily as the company’s restricted the travel expense for its employees. The dependency level on foreign tourists is always risky, as the economic depression has affected in all the developed companies and developing countries across the world. Hence there has been a huge fluctuation in International tourism.

Rising Competition: Major International Hotel chains are entering Indian market as it is becoming the destination for economical growth. The existing market players are also bringing in lot of new facilities and offers to attract customers. Hence striving a place in customer mind will prove to be a hectic job. Thus there will be a rise in competition among the exciting Hotel market.

.
Aim:

The main of this research is to explore the fundamental factors influencing the performance of the Hotel Industry in India, with special emphasis on Tamilnadu.

Personal aims include:

Preparation for myself in this hospitality line which will guide me to develop my family business to new heights in the market.

To encourage Hoteliers make best use of the information resources gathered in this research.

The need for the study emerges as more and more Hotel chains have started involving themselves in different type of complex business models and also they emphasize the need for cost-efficiency.

Objectives:

To assess the past and present performance of Hotels in Tamilnadu.

To categorize the core factors of the identified trends.

To understand the future growth opportunities for the hospitality sector in Tamilnadu.

To provide proposals for the further development on this sector with regards to the state of Tamilnadu.

Literature Review

The term Hotel in British law is defined as the place where a bonafide traveller can receive food and shelter provided he is in a position to for it and is fit condition to receive (Yashroy.U, 2008).

The origin of hotels came to India from British people. Until late 1920’s all the hotels in India were maintained by British and Swiss people. The fact of Chennai being a metropolitan city dates back to 1639 when Chennai was used as main port for trading by East India Company which was maintained by British (Chennai Hotels, 2007).

In current industrial world, one of the most successful industries is Hotel Industry. Demand has always been more than supply in all the cities. As FDI restrictions been eased off by government many MNC’s have opened their operation in India especially in Tamilnadu. Indian economy rise in global market and rise of business activities in India has insisted for a need of quality hotel rooms for corporate and industrial people. This trend of hospitality development is significant all over India. Leisure travelling has increased in India, which also contributes to the factor of growth in Hotel Industry. Almost all the major hotel players in the world have their operations in India, which itself indicates the growth of Hotel Industry in India.

While considering the state of Tamilnadu Chennai, Coimbatore, Madurai, Trichy, Tuticorin are the major cities and Ootacamund, Kodaikanal, Courtrallam, Yercaud, Kanyakumari are the main tourist spots in the state. Demand supply mismatch has increased along all the above mentioned places in terms of Hotel rooms.

In the last few years the number of inbound tourists (foreign tourist) has increased and has been around 4.9 million in 2007, while outbound tourists (Indian going on foreign tour) have been around 8.3 million in 2006 (ITOPC, 2008). In the outbound tourists segment lot of travel has been business travel while others have been leisure travel segment. Since both the inbound and outbound tourism has increased, the need for quality hotels in India has been rising. India being a country of wide culture and composite of world class heritage is the main reason for its tourist attraction in the global arena.

Considering the tourism in Tamilnadu, the domestic leisure travel is based on seasonality for the tourist spots and for cities is based on full swing business travel. Beside the rise in income level of the people has been a main reason for rise of leisure tourism in Tamilnadu. But still the majority of Star class hotels are used for business travels and Budget hotels are used for leisure travel.

Inbound Tourism Statistics
Foreign Tourists In India (Number)

2001
2002
2003
2004
2005
2006
2007
2008
January

283750

228150

274215

337345

385977

459489

532088

584765

February

262306

227529

262692

331697

369844

439090

498806

560658

March

248965

225558

218473

293185

352094

391009

444186

509926

April

185338

155378

160941

223884

248416

309208

333945

369677

May

151098

132998

141508

185502

225394

255008

267758

290785

June

176716

143100

176324

223122

246970

278370

310104

344526

July

224432

186432

225359

272456

307870

337332

377474


August

196517

161477

204940

253301

273856

304387

360089


September

162326

151721

191339

226773

257184

297891

325893


October

181605

212191

260569

307447

347757

391399

440715


November

209685

243566

290583

385238

423837

442413

510987


December

319271

417527

479411

541571

575148


Total

2282738

2073025

2726214

3457477

3918610

4447167

4977193

2660337

Source: Ministry of tourism, Govt.of India (ITOPC, 2008).

Domestic Travel Statistics
Tourists Statistics – Tamil Nadu
Year
Domestic Tourists
2004

42279838

2005

43213228

2006

58340008

Source : Ministry of tourism, Govt. of India (ITOPC, 2008).

Outbound Tourism Statistics

Statistics of Indian National Going Abroad
Year
No of Outbound Indians
Percentage Change over the previos year
2000

4415513

7.3

2001

4564477

3.4

2002

4940244

8.2

2003

5350896

8.3

2004

6212809

16.1

2005

7184501

15.6

2006

8339614

16.1

Source: Ministry of tourism, Govt. of India (ITOPC, 2008).

The categories of hotels in India are of five segments. Those segments are Premium & Luxury segments, Mid Market Segment, Heritage Hotels, Resorts, Budget Hotels, and Unclassified Hotels.

Premium and Luxury Segment

This segment is based on major players in the local and International market. The whole slot in this segment comprises of 5 -star and 5 -star deluxe hotels which mainly serves business travellers and upmarket foreign travellers. These hotels fall into luxury segment and they offer a high quality and higher range of services. They tariffs and other service cost in considered to be expensive and is situated only in metro cities and major tourist spots. This segment alone contributed 30% of total number of rooms back in 2004. When comparing with Tamilnadu’s context, it contributes 15 % of total number of rooms which is nearly half to the national segment ratio (Bhatia, 2004).

Mid-Market Segment

This segment is based on local players in the market and small chain of hotels within the domestic market. The 3star and 4star hotels falls under this segment, and they mainly cater to the average domestic and foreign leisure traveller, along with domestic business travellers as they nearly offer all the services as of premium hotels under low cost than the premium as the tax component for this sector is less than that of luxury and premium segments. This segment contributes 30% of the total number of rooms in Chennai, Coimbatore, and Madurai – major cities in Tamilnadu (HVS International, 2009).

Budget Segment

This segment has emerged due to liberalisation in economy and is been mainly catered to middle class people with higher disposable income. This class comprises of 1 star and 2 star hotel. This type of hotels holds the major percentage of existence in the state of Tamilnadu. This segment caters for domestic travellers who prefer reasonably priced accommodation with limited luxury, and offers special seasonal discounts for domestic tourist packages. Low cost and good service is the main forefront of this hotel segment.

Heritage Segment

This segment is classified in the recent years to denote the hotels in palaces, castles, forts, and other buildings which were constructed before 1950. These traditional structures symbolise the ambience and luxury lifestyle of the past golden era (Ghosh, 2005). They have come to limelight with their lesser initial capital and for mirroring the traditional lifestyle of the past. These values have proved to be a major point of attraction and business for these hotels. While considering the context of Tamilnadu there are more than 10 hotels in existence (HHIMT, 2006).

Unclassified or Other Segments

This segment of hotels and motels are spread out throughout the country. If taken into account these contribute 50% of room’s occupancy in India. Their main point of sales income is low pricing policy. However some of them came into prominence on account due to increase in tourist congestion in major cities and tourist spots. These hotels officially now contribute 19% of the Industry.

Performance measures in hotel management

The performance of hotel property and chains can be measured in several ways. The simple method would be evaluating room rates and occupancy ratios. Another important measure with regards to occupancy rates is the Average Daily Room Rate (ARR). This is manipulated by dividing the revenue with the total number of rooms occupied. This occupancy ratio is also relatively important as that of ARR because it is an important indicator of profitability. The rate of occupancy is manipulated with number of rooms occupied by number of rooms available (Sola et.al, 1997, p.85).

Market concept of Hotels

As mentioned by many authors, Hotel is an commercial hospitality institution which offers services and loads of facilities to its customers on various cost factors aspects (Ghosh, 2005).

Facilities

Service

Location

Price

Image

(Source: Ghosh, 2005, p.131)

All the five factors denoted in the factor are the terms related to hotel marketing concept. The term Location refers the geographic location of the hotel whether is the hotel is present in a city, rural area, or a tourist spot etc. It denotes to attractive features of the form, accessibility to the hotel, convenience factor, along with the surroundings. The term facilities refers to classy rooms, restaurants, leisure features, bars, banquet halls and recreation facilities (Weissinger, 2000). . The term Service refers to the quality of the facilities offered and the extent to which it reaches to the consumers, availability of that service offered (Hoque, 2002). Price factor implies the value given to its facilities and services offered to customers. The Image is a vital marketing factor as it portrays the hotel in the market and to the customers. This image is obtained from the above mentioned factors. For to maintain this factor all other factor have to be streamlined (Ghosh, 2005).

Performance of Hotels in Tamilnadu

The main focus the occupancy patterns of hotels two major metropolitan cities and two major tourist spots of Tamilnadu.

The two major cities to be discussed are Chennai and Coimbatore and the two major tourist spots are Ootacamund and Kodaikanal.

The percentage of occupancy rate in Chennai has risen by 12% in the current 2009 -2010 financial year after a decline in 2008 – 09 by 13% due to global recession. While in the case of Coimbatore, though the industry was also affected by recession in 2009, it dropped only by 5 % considering its growth ratio for the past decade with an average rise of 6% per year. The industry has also risen in current 2009 – 10 financial year by 10%. Both the cities are expected to have 16 new hotels, commercial serviced apartments for MNC’s over the next 5 years. Both the cities have become an IT hub in the southern part o India. Chennai is amongst the seven major metropolitan cities, while Coimbatore and Ootacamund has become one amongst the twelve other major cities in the Hospitality and Industrial growth list (HVS&FHRAI survey, 2009).

The performance of Hotel Industry in Chennai city saw a decline in first half of 2009 as there was cost cutting activities taken by IT & ITeS sectors and other business sectors along with decline in travel and entertainment. Though there was decline the city had the opening of two new star hotel property Taj Mount road & Lemon Tree. The industry by the end of 2009 saw a rise in occupancies as the businesses boomed again and many new projects associated with travel and occupancy was announced. As mentioned earlier Chennai has always had a steady rise in Hotel Industry (HVS&FHRAI survey, 2009).

The performance of Hotel Industry in Coimbatore has been growing with steady Growth phase and Demand. Coimbatore is popularly known as Manchester of the south. The city itself is based on diversified economy consisting auto – ancillary sector, textile sector, textile manufacturing and majorly in the past 6 years service sector has boomed in the city. The lower cost business operations have raised the city to prominence as a business destination in Tamilnadu and now across India. The occupancy rate has risen from 64 % in 2005 to 79% in 2009 though had a drop to 72% in the start of 2009 due to global recession. Coimbatore also has close proximity to Nligiris which implies that the demand for the Leisure segment will rise in the next few years. The current Star rated occupancy of 350 rooms is expected to rise to nearly 875 rooms which add pressure to the need of upgrade with the performance of hotels in a short term (Times, 2009).

The existence of Ootacamund or in short term called Ooty, one of the major tourist destinations in India and has clearly marked as one amongst the other twelve major cities in India with its tourism Industrial growth. It is one of the primary hills station in South India. It is easily accessible via road and railways from Coimbatore, Chennai & Bangalore. Ooty has retained its name as a Hills station tourist destination and hence many innovative and eco friendly hotels have come up nearby to the wildlife destinations. It is surrounded by natural sceneries, lakes, wildlife sanctuaries and many others. Domestic travel to this destination is being increasing at a higher pace (Kumar, 2010). The hotel occupancy has increased from 44% in 2005 to 59% in 2009 (HVS&FHRAI survey, 2009).

Kodaikanal is another major hill station in Tamilnadu. Tough Kodaikanal is categorised under developing urban areas, it still remains untouched by urban development and dense population as that of Ooty. It has got access from all the major cities in Tamilnadu and from Kerala as well. Though the number of Hotels in Kodaikanal is less than that of Ooty, they offer iunparelled experience in terms of comfort and services. It is surrounded by hills, huge lake, and number of parks, museums, and heritage places. There are two five star hotels, three four star hotels, more than 10 three star hotels in Kodaikanal. It is an intense developing tourist spot in India (Agarwal, 2007)

Principle factors for growth of Hotels in India (Tamilnadu)

The factors which influence the occupancy rate of Hotels , and their average room cost across the country are Domestic travel, International Arrivals, Health and Medical tourism, Business travel, MICE – Meetings. Incentives. Conferences. Exhibitons.

The Domestic travel is the vast growing market in India. Domestic Guests market is considered to be the most important segment for Indian hotel Industry, which accounted to 71.7 % of all guests in 2004- 05 (HVS, 2006).

The effective guidance role for domestic travel is played by Budget airline, or low cost carriers. These have played a vital role in short business trips, short visits etc. Due to this a person from Chennai can go to Delhi in the morning, do his work over there and come back in the same day evening. This has made people’s work more convenient and easier than before, initially the cost factor played a vital role in choosing airlines. They were only used by higher business people as the ticket fare was costlier but then after the entry budget airlines in the market the frequency of air travel and the number of domestic travellers has been increasing from the initial entry period. The number of destinations has increased due to rising air trafiic. So connectivity to various destinations from one single destination is now very much possible. Now all the major private carriers, government carriers, and other small players in the market deal with budget airlines. They are Jetlite, Jetkonnect, Spice Jet, Simplifly deccan, Air India Domestic formerly Indian Airlines, Go air, Paramount, Indigo and other new players which are in the queue for launch (Goyal, 2009).

Tourists Statistics – Tamil Nadu
Year
Domestic Tourists
2004

42279838

2005

43213228

2006

58340008

Source: Ministry of tourism, Govt. of India (ITOPC, 2008)

International arrivals have been increasing steadily as the Business travels due to MNC’s, leisure trips, and other trips have increased. Many Private and Government Indian carriers are now been operated to various destinations in the world which plays a vital role for the rise in International arrivals. Governments tourism scheme Incredible India is the most successful plan implemented by tourism ministry. This campaign has brought in many foreigners. This particular scheme has offered many advantages for tour packages. Hence the tour operators are doing aggressive marketing and attractive package offers to attract foreign tourists to India. The table below suggest that year 2008 has attracted around 5.4 million tourists from around the world, which is 5.6% more than previous year. The estimated foreign exchange earnings generated in the year 2008 was 50730 crores which are 14.4 % more than that of the previous year. The foreign exchange earning in terms of US dollars was 11747 US million$ which is 9.3% rise than the previous year. Hence the rate of tourist’s arrival and the income has increased which in turn has resulted in growth of Indian hotel industry. In accordance to an official review the impressive inflow is one of the main reason for the rise in airline passengers, which in turn as the result of intensive advertising campaign done by the Ministry of tourism (Travel & Tourism, 2005).

Year

Foreign

Tourists

Arrivals

(in nos.)

Percentage

Change Over Previous Year

Estimated Foreign Exchange Earnings (Rs. In Crore)

Percentage of Change Over Previous Year

Estimated Foreign

Exchange

(in Million US$)

Percentage Over Previous Year

1999

2481928

12951

—-

3009

—–

2000

2649378

6.7

15626

20.6

3460

15.0

2001

2537282

-4.2

15083

-3.5

3198

-7.6

2002

2384364

-6.0

15064

-0.1

3103

-3.0

2003

2726214

14.3

20729

37.6

4463

43.8

2004

3457477

26.8

27944

34.8

6170

38.2

2005

3918610

13.3

33123

18.5

7493

21.4

2006

4447167

13.5

39025

17.8

8634

15.2

2007

5081504

14.3

44360

13.7

10729

24.3

2008

5366966

5.6

50730

14.4

11747

9.3

Source: Ministry Of Tourism India (2009).

Medical tourism has now become one of the developing concepts whereby people from foreign countries come to India for medical treatment and relaxation. Major surgery treatments include Heart surgery, Plastic surgery, transplant surgery, Cosmetic surgery and Dental care. Patients from all

The Hospitality And Tourism Industry Tourism Essay

Hospitality and tourism industry nowadays has become one of the large and essential industries that contribute to Malaysian economy. With more and more jobs on offer, hospitality and tourism industry are among the growth industries in the world. The Malaysian Department of Statistic has reported that Labor Force Participation Rate (LFPR) in tourism industry is 7.4%. So, this indicates that workers participation in this industry is quite high and same important with other industry in Malaysia. Hospitality and tourism industry has grown from the days of the late 80’s until 2012. Hospitality is between guest and host and a service that includes in terms of accommodation, restaurants, event planning, casinos, catering, resorts, theme parks, transportation, cruise line, and additional fields within the tourism industry. Each unit hospitalities like hotel or restaurant has its own management as waiters, receptionists, cleaners and others. However tourism can be define as the leisure, business purpose and also the recreational time for people that need rest.

In Malaysia, statistics show foreign tourists come to Malaysia increased from year to year. As in 2009, foreign tourists coming to Malaysia is 23.6 million while in 2010 it rose again to 24.6 million people. For 2010, Malaysia earns the profit of MYR57bn of the total expenditure from foreign tourists. In 2011 Malaysia had recorded a total of 24.7 million foreign tourists came to this country and it showed a slight increase from 2010. Revenue from foreign tourists, this country has been incurring a total MYR58bn in 2011. Malaysian Association of Hotels (MAH) was established in the year 1974, it is intended to further enhance hotel service and this also show Malaysia government take a serious action in attracting foreign tourists to come and show this industry will become one of important industries contribute to national economy. Par with the current technology, the government has implemented a development plan and the progress of the hospitality and tourism industry, it also includes the improvement of the hotel industry in Malaysia.

Hotel industry is booming in Malaysia, especially in places that have an attraction to tourists, such as in coastal areas and historic sites. Malaysia is famous for its country has many islands such as the island of Langkawi, Redang Island, Perhentian Island and others. Focus area for foreign tourists is in Malacca, because Malacca have many places to visit as well as the history of the formation of this country is in Malacca. Referring to the hotel industry in Malaysia, the rapid development in every state has led the industry also be involved, it is expanding from time to time. In the Klang Valley area, there are hundreds of hotels for tourists, it is made up of budget hotels, 3 star hotel and above. Among the famous hotels around the klang valley between them is Concorde Hotel Shah Alam, Quality Hotels, Holiday Inn Hotels, Hilton Hotels, DePalma Hotel, One World Hotel, Sunway Resort Hotel & Spa and more. There are various facilities provided by the hotel such as a gym, swimming pool, spa, family karaoke, bar, technology center and convention rooms. It is because around the hotel there are interesting places to visit for tourist such as KLCC, KL tower, National Museum, I-City, Sunway Lagoon and luxury shopping complex. These places have attracted tourists to come to Kuala Lumpur and Selangor. The state government said the influx of foreign tourists promote the construction and hotel to cater for the undertaking of these tourists.

Existing hotel needs many people to manage and provide services that are consistent with the objectives of the hotel. A hotel 3 star hotel and over has more than 50 employees to ensure smooth running of the hotel management. The problems was faced by the hotel management is about worker turnover. This is raises worries to all hoteliers. So, this research is conduct to study and examine the antecedents of workers turnover in hospitality and tourism industry in Malaysia specifically in the area of Klang Valley. After make some reading and analysis from previous study, it is found that there are some factors influencing to this situation which is worker turnover. Remuneration system, job satisfaction, incentives and working conditions are considered as the determinant. However, the concern and attention of this study is the most important factors that influencing to workers decision to come in and out from the industry.

1.2 Problem Statement

Currently, hospitality and tourism is one of the world biggest and fastest growth industries especially in Malaysia. This industry offers vast job opportunities but still have problem of worker turnover, there are many factors that contribute to workers leaving their work. The problem to be analyzed in this research will be the reasons on workers are turnover. It is surprising given that hospitality and tourism industry has been characterized in terms of high turnover rates, a part-time and causal workforce and an absence of the internal labor market (R.D. Iverson). Estimates of average annual employee turnover range from around 60 to 300 percent (B. Ronra).

1.3 Purpose of study

Each of research and study should have their own reasons and purposes. The purpose of this study is conducted in order to gain more understanding of the relationship between the remuneration scheme, job satisfaction, and incentives with workers turnover rate happen to employees in this industry. The result derive from this study will show whether all the factors will effects to workers turnover in Hotel industry.

Research questions

Is there any relationship between workers turnover rate with the remuneration scheme given to employees in hospitality and tourism industry?

Is there any relationship between workers turnover rate with the job satisfaction level among workers in hospitality and tourism industry?

Is there any relationship between workers turnover rate with the working environment given to employees in hospitality and tourism industry?

Is there any relationship between workers turnover rate with the incentives to employees in hospitality and tourism industry?

What is the most important factor that effect to workers turnovers rate in hospitality and tourism industry?

Research objectives

To identify whether workers turnover rate in hospitality and tourism industry can be effected by the remuneration scheme, job satisfaction, working environment and incentives.

To identify the most important factor that contributes to workers turnover rate in hospitality and tourism industry.

To suggest some recommendations for future study.

Research Hypothesis

A series of testable hypothesis were developed from the proposed research model, as shown below:

Hypothesis 1

Ho: workers turnover in hospitality and tourism industry was not influenced by

the remuneration scheme.

Hi: workers turnover in hospitality and tourism industry was influenced by the

the remuneration scheme.

Hypothesis 2

Ho: workers turnover in hospitality and tourism industry was not influenced by

the level of job satisfaction of employees.

Hi: workers turnover in hospitality and tourism industry was influenced by the

level of job satisfaction of employees.

Hypothesis 3

Ho: worker turnover in hospitality and tourism industry was not influenced by

working environment condition to the employees.

Hi: worker turnover in hospitality and tourism industry was influenced by working

environment condition to the employees.

Hypothesis 4.

Ho: workers turnover in hospitality and tourism industry was not influenced by

other incentives given to the employees.

Hi: workers turnover in hospitality and tourism industry was influenced by other

incentives given to the employees.

Significant of study
1.7.1 Policy maker

The result obtain can help policy maker (government) to make a needed action to any problem incurred in labor force participation especially in hospitality and tourism industry.

1.7.2 Hospitality and Tourism industry

The result of this study can allow the management of hotel and tourism industry to understand more and also to be closer to the real situation about worker turnover issues. They also can implement any suitable action in order to improve workers arrangement in their management system.

1.7.3 Researcher

Researcher can understand deeply about the real situation in labor force. This knowledge is useful in future when this researcher enter the labor force and maybe he/she can provide own opinion and advice to his/her employer regarding worker turnover problem.

1.8 Limitations of Study

Every research will have own limitations. This study also has limit by some factors.

The limitation is as follows:

1.8.1 Population

First factor is population, as the sample is only focus to the respondents who works in the area of Klang Valley. This study may have different result or can be more strengthened if the sample area is enlarging to other hotel around Malaysia. A detail empirical analysis among variable that have multiple categories can be perform when the sample size is to be increase.

1.8.2 Lack of time

Next limitation in this study is about the time. There is about 5 months to complete this research and it will cause to the lack of time in order to collect more information and to properly prepare the full report for it. More time may provide with more detail and better research.

1.8.3 Lack of experience

Because this is the first individual research to the researcher, so the study will be conduct in the very minimum knowledge and lack many of experiences. It also may cause the researcher make many mistake further needs for corrective action.

1.9 Definition of term
1.9.1 Worker turnover

Cited in Minyen Ku, according to Phillips and Connell (2003) this term can be define as “the percentage of employee leaving the organization for whatever reasons”.

1.9.2 Remuneration

An exchange of service performed by employee in terms of monetary or also refers to as wages and salary.

1.9.3 Job satisfaction

Different perception felt by every employee of job that is entrusted, whether it is satisfied with the job or not.

1.9.4 Working environment

Factors that can determine an employee’s performance analyzed as physical environment, equipment provided, great facilities, materials used and others.

1.9.5 Incentive

The reward given by employer to his worker and example like a bonuses, holiday package, insurance cover and health care.

CHAPTER 2
2.0 LITERATURE REVIEW

Currently there is a lot of people come in and out of labor force. According to F.B Puteh (2011) every individual in their life will follow five main stage of career development. The first stage of the career development is starting in the age of 16 to 25 years old. At this stage an individual is trying to find a suitable job in labor force. It is followed by the second stage when that individual has chosen the best job and enters to any organization. Next stage of career development is begin when individual reach an age around 25 to 40 years old. In this stage, early career for an individual begin beside they try to adapt with the work environment and condition at this time. Further continue with the fourth stage when an individual start to put some effort and hoping for appraised by others people in an organization they work. However, at this stage there might be many things to happen and cause a workers turnover to be occurs. Last stage is the growth of the career until the day of retirement.

The Malaysian Department of Statistics has revealed in their latest report 2010, Malaysian total of population is stands at 27,565,281 (K.S. Chen, The Star 2011), with around 11,517 of them is in the labor force. In Malaysia, the tourism industry has been identified as the key driver in the growth of the service sector (Economic Planning Unit, Prime Minister’s Department, Malaysia).

2.1 Perspectives of worker turnover

The hotel industry is one of the sectors that contributed to the economic growth of a country. Throughout the world there are thousands of hotels antecedent labors. This is to accommodate the arrival of tourists from inside and outside the nation. However there is a problem faced every hotel management around the world is about worker turnover. Globally, the turnover rate in the hotel industry is estimated to range from 60 percent to 300 percent annually, far higher than the 34.7 percent reported in the manufacturing industry (Foley, 1996). Many organizations in the hotel industry face difficulties in retaining employees since they are unable to identify the factors that contribute to both employee satisfaction and loyalty (Rahman, 2011). Annual turnover rates as high as 50 percent remain the standard in the hospitality industry, and many hotel operations have chosen to simply accept this as a fact of doing business (Levine, 2005). According to Cornell University estimates, turnover in the hospitality industry averages more than 100 percent with the cost of turnover at about $5,000 per associate in lost productivity and wages (Davies, 2006). Effect of worker turnover included to all system or management of hotel industry. From the organisational perspective, employee turnover can represent a significant cost in terms of recruiting, training, socialisation and disruption as well as a variety of indirect costs the higher the turnover will caused more pressure placed on recruiting because it increase cost of training, loss of productivity plus its take time. (C.Y. Chang, 2010).

2.2 Perspectives of remuneration.

Every the job done whether related with the service, production, management, wages paid with, whether they are paid according to the hours worked or monthly. In the hotel industry, most workers are paid by the hour. If the wages paid to non-favourable, it can cause worker turnover. Remuneration scheme is one of the factors that will influence worker turnover in hotel industry. According to Jichul Jang, B.S (2008) the nature of hotel work such as labor intensive, low in wage, and promotion opportunities are limited will automatically increase worker turnover in hotel industry. Not worth it income or pay and also hours worked will be the strongly reason for hospitality and tourism industry will make worker leaving the organization (Pavesic and Brymer, 1990). ”Highest influencing factors affecting employees’ turnover was the insufficient tools and resources to do the daily job, followed by inadequate recognition and rewards for a job well done, the benefits received were not met with the employees’ needs, the salary and responsibilities were not compatible and the career path advancement was not compensate for lack of salary increase”, (Boondarig Ronra and Assoc. Prof. Manat Chaisawat, 2011). Moreover, based on Assoc. Prof .Cengiz demir , the reason why many employees quit the job because lack of wages. Most employers assume that higher workers turnover reflect of lower paying job and it if proved that workers turnover is very costly (Mobley, 1982).

2.3 Perspectives of job satisfaction.

According to M. M. Alam and Jamilha (2009) stated that job satisfaction is an attitude of an individual towards his jobs that extending to the feeling of different perception. Hospitality and tourism industry has face some difficulties in retaining and maintaining loyal employees since inability to identify the factors contributing to employee job satisfaction and loyalty (Rahman A. , et al 2011). Workers turnover is assumed related to the level of job satisfaction. Satisfied workers usually become more loyal towards their employer. Whether met or unmet, employees’ expectations of the job itself will influence their subsequent job satisfaction (Wanous et.al,1992). Knoop (1995) stated that job satisfaction is found to be a significant predictor of organizational commitment and also become an important factor to the intention of workers turnover. As cited in Boondaring Ronra the absenteeism and high workers turnover is reported to be related to job dissatisfaction level. While lower absenteeism is associated with high job satisfaction. The research also study and shows a consistent relationship between leadership support and job satisfaction which is also affecting employee turnover. Another element and factor to deciding job satisfaction is career motivation (Jichul J., 2008). Higher level of management should understand what motivates their employees in their jobs for the purpose of increasing job satisfaction and reducing employee turnover.

2.4 Perspectives of working environment

Since the hospitality and tourism industry is labor intensive in nature, the customer retention and defection are highly dependent on how the frontlines deal with customer (M. A. Hemdi, 2006). The employees feeling towards their work environment will affect the level of service they may provide (Yin.T. C, 2008). The more satisfied workers to the work environment are assuming to give and serve their customer better than those who are less satisfied. “Stress theories assume that individual can try to cope with the stress they are experiencing”, Desmette and Gaillard (2008). Workers usually have leads to leave their job if they feel uncomfortable. O’Reilly et al (1991) in their result revealed that employees will have reduced commitment and higher intent to leave if they do not fit the organization’s cultural requirement. According to Terry Lam et. al (2002) reduction of work – related stress, increase job satisfaction and motivation, and improve performance is normally reflected by a positive perceptions of workplace relationship.

2.5 Perspectives of incentives.

Incentives for employees go a long period of time in increasing the productivity and thereby lowering the worker turnover. Incentives for employees such as flex hours and/or telecommuting, health and wellness program, insurance package, paid holidays and relaxation, social and networking events and others. If hotel management not offers good incentives for their worker, it will make worker turnover to ensure their loyalty to the hotel. The manager should hold social activities as a reward to them, it was thus able to increase their loyalty to employees (Catherine, 2002). From the journal Executive White Paper, they said “turnover is less when employees have a high level of value for their work, these employees persist more than colleagues who report low levels of value, employers can help employees value their work through consistent praise, recognition, and special incentives”. A promotion is one of the best incentives to encourage employee’s loyalty. Moreover, promotions serve two rules in organization. First, they help assign people to the roles where they can best contribute to the organization’s performance. Promotion serves like incentives and rewards is a second rule (Fairburn and Malcomson, 2001). Other than that, if management unable to offer more money, so that give incentives is the best way to forced up the employees. Other word, incentives is benefit to the employees. The lot of benefit that management provided will make employees to stay. According to Heneman and Schwab (1985) defined benefits as most employees view or examine the benefits of a company given, it is not a form of money, but like insurance, health care, holiday package and so on.

CHAPTER 3
RESEARCH METHODOLOGY AND DESIGN
3.1 Research Model

The model examines the relationships of human decision in labor force which is workers turnover in hospitality and tourism industry with all the independent and moderate variables shown in Figure 1.

FIGURE 1
A SCHEMATIC DIAGRAM OF THE RESEARCH MODEL

REMUNERATION SCHEME

JOB

SATISFACTION

WORKER TURNOVER

WORKING ENVIRONMENT DEPENDENT VARIABLE

INCENTIVES

INDEPENDENT VARIABLE

MODERATE VARIABLE

As shown in Figure 1 above, the workers turnover in hospitality and tourism industry will be the dependent variable for this research is analyzed for the purpose of deriving the result and answer to the research questions. Meanwhile, the independent variable for this research is the remuneration scheme, job satisfaction also working environment. Incentives will become the moderate variable for this research.

3.2 The Data Collection

Because this research is about the perception among workers in the industry the data for this study will be gathered in November 2012 by using primary data collection method which is a self-administered questionnaire. The set of questionnaire will be passed around and distributing to selected workers in hospitality and tourism industry in different gender, age, race, education level and department only in the area of Klang Valey, Kuala Lumpur. An appropriate questionnaire will be constructing and distributing to all suitable respondent.

3.2.1 Primary Data Collection Method

A set of questionnaires adopted from the combination of several previous studies has been constructing. The first part of the questionnaires included five questions about the demographic characteristics of the respondents such as their age, race, gender and others and this part will be answered by using category scale which is by just ticking an appropriate answer. Further part including and will be ask in the questionnaire is Part B which is the respondent’s perception and own opinion about the most factor that contribute to workers turnover in the industry in Malaysia. The main part of questionnaire is part C and it can be use to measures and derive the result that we want to test in this research. Likert scale which is the range from 1 to 5 is to be use to answer this part. This section is also used to test the hypothesis and measure the relationship of dependent, moderate and independent variable of the research.

3.2.2 Secondary Data

This research is also completed by using a secondary data and it is use for identifying other problem. Secondary data is also used as references in the literature review. Useful information and needed data is also obtained from various journals, articles, research methodology and labor economics textbooks, economic bulletins, websites, brochures and newspaper.

3.3 Sampling Techniques

3.3.1 A snowball technique has been used and the total of 100 set of questionnaires will be distribute to respondent which is a workers that work in this hospitality and tourism industry in Klang Valley. The respondents will be comes from different level of department in order to get any different perception towards workers turnover. The distribution of questionnaire is specific to the respondent from the age of 15 to 58 years old, worked in Hospitality and Tourism industry, and they will come from different kind of race, age, gender education level and department.

3.4 Measures
3.4.1 Procedure for analysis

Further step of this research is to process the gathered data. All data will be key in and process by the software of SPSS to examine the frequency, mean, standard deviation and others. This is really helpful in order to get the most influential reasons contribute to workers turnover in the industry. This research also provides a descriptive and frequency table for all the demographic profile information in order to analyze the data. It is use to determine the types and characteristic of respondent. The value of Cronbach’s alpha will be deriving to test the consistency and reliability of this research. This method will ensure whether all the questions ask in the questionnaire is consistent and suitable. Correlation analysis is to be use for the purpose of deriving the positive or negative relationship and also the significant of all independent and moderate variables with the dependent variable. R- Square, F statistic and t- test can be performed by measuring the regression analysis. Using the Multiple Linear Regression and looking at the t -test of the analysis, the research hypothesis and the most important factor that contributes to workers turnover can be determined

The Hospitality And Tourism Industry In Kenya

Tourism in Kenya dates back to pre-independence days and as recorded in history as early as the 1930’s (Tourism in Kenya). In the early days the bulk of the tourist that visited Kenya did so mainly to take part in the gaming industry in the game – hunting expeditions, while the other were the typical old tourist that travelled for Sun Sea and Sand which is one of the tourism products offered by Kenya’s tourism industry.

In the early days the tourism industry in Kenya attracted first world rulers e.g. The queen of England, Queen Elizabeth II and the President of the United States of America Theodore Roosevelt.

Infrastructure

As expected the infrastructure that was available in Kenya in the 1930’s was less than ideal or/and adequate to facilitate the new growing trend in Kenya which was tourism, never the less the tourism industry was steadily growing. Kenya gained independence in December 1963 (Kenya Timeline) after that time the infrastructure also grew but it is still said to be in an extremely poor state.

The infrastructure includes:

Electricity

Telecommunications

Roads

Transport

The government has urged the public and private sector to work cohesively to achieve an infrastructural development in the country, which would ultimately develop and increase the tourist arrivals to the country.

Kenya’s tourism is heavily comprised of natural attractions. It is stated that approximately 10% of the country has been reserved for the preservation of the natural attractions and wildlife (Tourism in Kenya)

The tourism industry has evolved with the emergence of the new tourist, which brought along new forms of tourism for the country; it include Domestic Tourism, Community and Eco Tourism, Cultural Tourism, Business Tourism and Sport Tourism.

Eco tourism is the prevailing form of tourism for in the country with the 10% dedicated by the government for its natural reserve

Kenya Eco tourism attractions:-

Game viewing expeditions (Flora) – This form eco tourism can be linked to the Pre-independence day, where the old tourist travelled for the hunting of the game and Sun, Sea and Sand, with the evolution of the new tourist this has brought along the new game viewing expeditions, where the tourist no longer hunt the animals but view the animals of the country on a Safari. The country has its popular animal attractions which are now commonly called “the big five” that include the popular:

Elephant

Rhino

Lion

Buffalo

Leopard (Tourism in Kenya)

Plant watching (Fauna) – The tree and flowers watching tourism in Kenya is jointly part of the Kenyan agricultural industry, which is the main contributor to the Kenyan GDP. Kenya climatic seasons are similar to those in the Caribbean with a dry and rain season annually. The rainy season in Kenya is responsible for the boom in the fauna of the country. This is the season where the trees and flowers bloom whereas the dry season is quite different. The trees drop their leaves and the flowers dry up. A tourist that visits Kenya in the dry season would have a different experience to a tourist that visit in the rainy season in regards to the country fauna.

Safari – A safari is another natural way to enjoy the natural aspect of Kenya while understanding the native people and observing their natural lifestyle. The safari is also a main way to enjoy the game viewing expeditions through Kenya’s forest reserve.

Economical Factors

Multiplier Effect – The tourism industry is heavily dependent on other industries in Kenya to be a successful industry that caters to its tourist. A main dependency of the tourism industry is the agriculture industry. The agricultural which is predominantly responsible for the food and beverage industry that provides the food that is being served to the tourist. Other industries include the: – Textile, transportation and entertainment industries. A multiplier effect is very evident within the economy, to sustain the other industries, the tourist dollar is extremely important to the country.

Tourism Employees – Kenya’s tourism industry caters to the employment of 500,000 Kenyans (National Geographic 2010). These Kenyans have positions in the tourism industry ranging from the service e.g. Tour Guides for Kenya’s ever growing Game industry and Safari to the management sector in hotels and Tour Operators.

Negative Factors Affecting the Tourism Industry

Lacks of awareness of the people – The people of Kenya are never included in the decisions brought about from the government and private institutions to the development of the Kenyan tourism as a product. Negatively this would prompt the nationals to act negatively towards the tourist and encourage them to deface the infrastructure of the country, this could also prompt them into vandalizing the belongings of the tourist.

Socio-culturally – With the improvement in the tourism industry and the influx of tourist into country brought along the ways and attitudes of the new world, negatively this has impacted on the culture by, the increase of prostitution, lack of traditional rites and performances etc.

Terrorism Threat – The bombing of the US Embassy in 1998 and attempted bombing in Mombasa 2002, has prompted countries to issue negative travel advisory to Kenya which negatively affected the tourist arrivals to the country as depicted in the statistical data.

Kenya is a country with a diverse range of tourism products that cater to many types of tourism as mentioned previously. The country is heavily focused on maintaining its natural aspect as well as developing in a sustainable manner keeping with its eco tourism trend as it foremost tourism product. Overall the tourism industry is slowly increasing despite the negative factors that thrown them they were able to increase and move on.

The History Of Travel Agencies

Travel agencies exist mainly as intermediaries among suppliers of travel services such as carriers and hotels, and customers. Travel agencies do not deal with tangible products but with information where it is different from other distributors in many industries (Cheung & Lam, 2009). As for the travel agent it is best defined as an individual who undertakes a work for another individual, who is being the ‘principal’. The principal in such an affiliation not only sets the aims of the work, such as selling tickets, however can also control the means and way in which the work is completed (Cheung & Lam, 2009). Cheung & Lam (2009) added that modifications in the business over the past ten years have affectedly changed the environment and significance of info in the travel industry and, subsequently, the role of travel agency.

Lately, the technology advancement has brought changes in tourism industry. Why did the Internet so affectedly affect the travel industry? What impact do the changes have on travelers? (Harrell Associates, 2002). The Internet has revolutionized the method in which customers make their travel choices (Anon, 2012). Customers nowadays have several additional selections because the Internet offers providers additional chances to generate direct customer relations and allows a varied range of pricing (Harrell Associates, 2002). The Internet offers an influential atmosphere for the conception of virtual representations of tourism destinations permitting indirect experience that really exceeds the potentials of traditional travel agents (Bogdanovych, Berger, Simoff & Sierra, 2005). Currently the Internet is the perfect connection among customers and dealers, over hundreds of websites, travelers have sufficient information for their travel preparation (Ortega, 2008). According to Travel Industry Association of America (TIA) over 75 million online travelers used the Internet for their travel planning such as to look for places to stay, rental car prices, also searching for maps and driving directions, searching for airfares and schedules and other information about tourist destinations (Ortega, 2008).

According to Ortega (2008), he said that the travel planning and booking on the Web are among the greatest popular online activities in best important e-commerce markets and online travel sales are rising at an explosive amount (over $115 billion this year) in the US, Europe and the Asia-Pacific regions. Therefore, because of the growing of the e-commerce in the tourism industry, the tourists have numerous selections provided by the Internet to obtain online, in the ease of their houses or offices, touristic services and products (Ortega, 2008). Furthermore, the Internet assists to locate low prices in tourist services such as air tickets and hotel rooms. In conclusion, it offers tourists a remarkable total of information to make an exclusive trip.

According to Vrana (2010), she claimed that a main forte to travel agencies is the capability to offer personal information and assistance to tourists endlessly, along with consultancy service for corporations and will keep on secure if their advice-offering ability remained supported by the existence of the Internet. Even though there are many online travel services, a traditional travel agent is as far a vital part of the trip as ease is to traveling! (Will, 2012). The travel industry is comprised of over a dozen related industries: airlines, restaurants, hotels/motels, travel agencies, gift shops, auto rentals, and a host of other businesses that may not be even recognized their dependence on travel and tourism since travelers are usually indistinguishable from local customers (Cheung & Lam, 2009). Will (2012) also stated that, the part of a travel agent has remained growing with the eras and currently most people are reliant on them for fulfilling most of their travel plans so that they can rest calmly and just relish their trip.

This study aims to examine the factors involves in sustaining travel agency’s operation in order to survive in this tourism industry and evaluate their performance or sales of travel agency that can affected by the uses of technology such as Internet.

1.1 RESEARCH ISSUES

Tourism has become the second largest economy contributor after manufacturing. One of the factors that contributes to the boom of tourism market is the advancement of technology. Travel industry are comprises of variety related industries, such as airlines, travel agencies, restaurants, hotel/motel and more (Cheung & Lam, 2009). More or less, each of the related industry will get at least a little impact from the technology advancement, notably these travel agencies. There is some research that indicates that tourism product is popular to be bought through online (Nysveen & Lexhagen, 2001). Online tourism has grown rapidly as the consumer nowadays are using the advancement of technology to acquire information and also purchasing tourism products and services (Dixit, Belwal & Singh, n.d).

There are many reasons why consumer tends to choose Internet as one their medium in purchasing tourism product and services. One of it is Internet are giving them cost-saving convenience (Cheung & Lam, 2009). Cost-saving convenience means that there are no efforts required for the consumer to spend their time and money to seek for information needed about a certain package. Some of the consumers also choosing Internet rather than looking for travel agencies because of the flexibility that Internet has to offer. The consumer are seeking flexible tourism product to suit their travel needs (Harris & Duckworth, 2005). Based on their research, the consumers buying pattern recently has change rapidly to independent travel from the typical package holiday. To support this statement, they are adapting a research done by Mintel, in UK independent travel has conquered the travel market in 2004 with 55%.

The other reason why consumers tend to choose Internet over travel agencies is because of online experience has greater potential in visualizing travel destinations (Bogdanovych, Berger, Simoff & Sierra, n.d). They also stated that online technology offers 3D interactive tours that can deliver clearer image on the destination. Interactive videos can also be shown online without interrupting other customers. Based on a study done by Daugherty, Hairong & Biocca (2005) which they wanted to get consumers reaction on the product presentation method. The two choices are indirect experience (virtual presentation), and direct experience (direct product manipulation). The results proved that, product knowledge and decision quality made by the consumer are both significantly higher when they are exposed to interactive 3D products than to static products presented in a form-based way.

Despite from all the factors, travel agencies which are at stake need to survive in order to sustain their spot in the travel industry. They have to differentiate themselves more than what technology advancement has to offer. Based on the statement of research problem, we want to conduct a research on how travel agencies can sustain their operation. There are a few factors that make travel agencies can sustain themselves in tourism industry in Malaysia. These factors can determine the sales of the travel agencies because the trade travel agency community has sustained substantial losses due to the mutual effect of the growth of Internet (Cole, 2009)

1.2 STATEMENT OF RESEARCH PROBLEM

Generally, in real world, an increasing competition from other channel had caused the number of traditional travel agents nearly decrease (Buhalis, 2003). The Internet is changing the industry’s structure and the consumer’s behavior. Widely used of technology in tourism industry has affect the operation of the travel agencies in Malaysia. The usage of Internet by travelers has decreased the number of travel agencies’ sales in Malaysia. Besides that, Internet also has caused the high street travel agencies to close, thus creating job losses within the businesses (Anon, 2010).

Many studies have looked into The Internet Travel Industry: What Consumers Should Expect and Need to Know, and Options for a Better Marketplace (Harrell Associates, 2002), Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals (Bogdanovych, Berger, Simoff & Carles Sierra, n.d), Evaluating the Adoption and Use of Internet-based Marketing Information Systems to Improve Marketing Intelligence : The Case of Tourism SMEs in Jordan, AL-allak, 2010), Attitudes Towards Internet Use Among Travel Agencies In Greece (Vasiliki, Costas & Savvas) and Travel Agents Fight A Losing Battle With the Internet (World Airline News, 2008). Unfortunately, there is no specific study that evaluates or observes on the factors that lead to the methods of sustaining the travel agencies operation in Malaysia regarding on the technology advancement.

1.3 RESEARCH OBJECTIVES

1) To identify the factors that capable to sustain the operation of travel agencies in Malaysia

2) To identify whether the performance or sales of travel agency are affected by the uses of technology such as Internet or not.

1.4 RESEARCH QUESTION

1) What are the factors that can sustain the operation of travel agencies in Malaysia?

2) Does the performance or sales of travel agency are affected by the uses of technology such as Internet?

1.5 CONCEPTUAL FRAMEWORK

Independent variables Dependent variable

Sustainability factors:

aˆ? Human Touch

aˆ? Negotiation Power

aˆ? Interpersonal Skills

aˆ? Niche Market

Travel agency’s operation

Figure 1: Proposed framework for the study

1.6 SCOPE OF THE STUDY

The scope of the study is using the travel agencies around the Klang Valley area. All the travel agencies that took part in this study offers wide-range of services and products in their company. These travel agencies have been selected according to their location that located in Kuala Lumpur and Selangor. Most of the travel agencies are located in Kuala Lumpur.

1.7 SIGNIFANCE OF THE STUDY

This study will basically benefit few categories of organizations that play important key roles in the tourism industry. Firstly, the government bodies such as the Ministry of Tourism, Tourism Malaysia and travel agencies in Malaysia. Secondly, this study will benefit the educational institution especially academicians and students in the tourism line. Therefore, it is hoped that this study can act as a guide and reference in future studies. There might be some filed in this study that is not investigate thoroughly due to constraint of time and funding and therefore it is welcome for any future researcher to examine those intended field.

1.8 LIMITATIONS OF THE STUDY

For this study, we were using online survey. In order to deliver the questionnaires, we need to use an email. We took the email address of travel agencies from MATTA website, MOTOUR website and also their own website, however, some of the emails are not valid. This problem leads to the difficulty in collecting the information and giving us some difficulties in processing the result. Other than that, some of travel agencies did not give cooperation to us. They were not answering the questionnaires even though we already stated that all information are confidential and only use for study purposes. Lack of the cooperation and resources limit the researchers to gain extra information to enhance the study.

1.9 SUMMARY

This chapter has presented the background of the research and research problem, outlining the research objectives and questions relevant to the research topic. This chapter also covered the scope of the study together with the importance in conducting the research.

CHAPTER 2

LITERATURE REVIEW

2.0 INTRODUCTION

This study aims to discover the factors that can make the travel agencies in Malaysia sustain its’ operation in this tourism industry. In order to achieve the objectives of the study, literatures regarding the sustainability factors will be examine.

2.1 HUMAN TOUCH

According to a professor of psychology, Dacher Keltner from a University of California, Berkeley, he says that, touch is “our richest means of emotional expression”. The researcher found out that, touch interconnects in ways that words cannot (Moll, 2012). In retail store settings, concisely touching customers has been shown to rise the consumers’ shopping times, store valuations and purchase volumes (Lynn, Le, & Sherwyn, 1998). According to Jochman (2009) in his article title ‘The Benefit of Human Touch’, he said that the quantity of body contact plays an important role in people’s physical growth and mental as infants and in our happiness as an adults as shown by the scientists. Human touch has experience of working with banks, credit unions, insurers and other financial service providers to increase awareness of how service excellence can have a dramatic impact on their bottom line (Anon, 2012). A service representative asking the right questions and being sensitive to a customer’s needs can make all the difference between the sale of a financial product and the loss of that business to a competitor (Anon, 2012). In the years of computer-generated workplaces, where e-mail, teleconferencing and fax machines increase, something is missing that American business people need to close a deal the human touch (Seaberry, 2000). In other words, handshake and looking at each other’s eyes are still needed by the business people.

According to James J. Green (2012) in his article, he said that the personal touch-the person-to-person touch-that you offer to your clients the one that distinguishes you. He added that talking to your peers, in person, provides you with perceptions that you cannot get electronically. Individuals play an important role in any business relationship because it is actually managed by individuals (Nguyen & Nguyen, 2011). In manufacturer-distributor relationships, personal interactions talk about the communication at the individual level between distributors and manufacturers’ vital contact people (Ulaga, 2003). Furthermore, research has shown that personal interaction can play a critical role in distributors’ valuations of suppliers’ performance (Ulaga, 2003). As said by Kaufman (2012), automation is vital for growing and speeds up service in many industries. However, he added that when individual care or courtesy is required, customers require contact with real people. Once human energy flows and connects, good things can get completed and you can increase customer experience to your advantage (Kaufman, 2012).

Scholars in marketing and organizational behavior are present giving increasing attention to the personal interaction among the customer and the employee on the frontline of service businesses (Mattsson, 1994). The personal interaction is recognized to be one of the important subjects in business and industrial marketing, both in terms of practice and theory (Mainela & Ulkuniemi, 2012). Mainela and Ulkuniemi (2012) also stated in their journal that, personal interaction is also required to exchange social values and it may weaken the involvement of price in determining the behavior of the two parties. According to Pinnington and Scanlon (2009), business relationships are actually managed by individuals and there is extensive personal interaction in any business relationship (Pinnington & Scanlon, 2009). Research has shown that a lot of companies are moving from transactional separate relations to relational ones (Nguyen & Nguyen, 2011). In addition, Tho D. Nguyen, Trang T.M. Nguyen (2011) said that, committed relationships are among the most durable because they are difficult for competitors to comprehend, to duplicate, or to relocate. Thus, scholars and practitioners have agreed that two-way relationships between buyers and sellers represent a source of competitive advantage (Nguyen & Nguyen, 2011).

Travel agent might look similar to a profession of the past, just like elevator operators and milkmen, however they are not merely hanging on, certain of them are successful. In actual fact, the February/March topic of Shop Smart magazine has a story on travel agents, saying that they are a lot better than online travel services (Williams, 2008). In the article title ‘Travel agents: Hong Kongers prefer the real thing’, Hong Kong travelers blame the online trend and continue to choose for humans when booking vacations (Li, 2012). Li (2012) also said that, Hong Kong is not a huge city; it is appropriate for people to make straight contact with travel agents as they are the expertise and backing that an offline travel adviser can convey additional value to the holiday. Travel agents will make sure that you will have an incredible experience on your trip. They are excited and will show their enthusiasm in helping you, their clients, have the best vacation possible (Bow, 2012). Travel professionals are individually invested in seeing your trip come to be a success trip. This personal interaction with existent, live agents undermines the frequent dull experience of doing it yourself online (Bow, 2012). As soon as you book a trip or a holiday with a travel agent, you create a personal as well as a business rapport with that travel agent. If something goes incorrect, your travel agent is your personal representative who has an entrusted concern in resolving the problem to your satisfaction (Morris, 2012). According to Geoff Williams (2008), if you are afraid that you will need to change your flight or your travel plans at the last minute, a travel agent might be capable to talk to an airline directly and will save you away from those worries and stresses.

Even though growing numbers of people turning to technology, specialists on both sides of the bureau are saying that there will always be a space for the human touch (The Syedney Morning Herald, 2007). Wherever travel agents remain incomparable is in their capability to offer a personal service. Naisbitt (2001) refers to it as ‘high-touch’, the antidote to ‘high-tech’. Moreover, it is becoming increasingly evident that agencies will need a ‘high-touch high-tech’ strategy to satisfy the customers of the future (Naisbitt, 2001). A website cannot provide what the travel agent can offer such offering help, advice and also that “personal touch” to your travel planning experiences (McNally, 2007). According to the technology advisor Mary O’ Haver, the experience that travel agent has is part of the personal touch that travel agents can offer. Besides that, according to Hoffman (2012) who is an online travel expert and managing director of the world’s largest online travel agency, expedia.com.au, people will always like to walk into a store and get personal service. He also said that, the more complex the trip, the more cooperative an experienced agent will be. He continued that, an agent can guide an inexperienced traveler over foreign travel or travel to exotic destinations. When travel in less developed tourism destination, the travel agents may have more knowledge of travel about that destination (Morris, 2012). Complicated arrangements like various destinations on one ticket or group travel might turn into difficult and an agent with experience can help (Morris, 2012).

According to Olmsted (2012) in his article, between the several main advantages of high-powered agents carry to the table is individual connections and influence. If you have problems while you remain away, your travel agent is there to help you in resolving your concerns. If you make a booking with a travel agency, you are less likely to experience flight, city, or accommodation changes by the tour company, as they know the agent will be there to stand behind you (Travel Cafe Inc, 2012). If you have at present reserved your trip but before you go to travel you want to adjust some details, your travel agency can assist you by get all the required steps complete, leaving you without the difficulty and confusion (McNally, 2007). Travel agencies take care of all travel particulars form reserving tickets to booking hotels that can give the tourist sufficient time to plan the travel (McNally, 2007).

According to Donvan & Lieberman (2011), the human touch that makes travel agencies different is when something goes wrong with our trip; we have someone to call or refer to solve the problem. Compared to persons who booked their accommodation or flight tickets online, there was no one for them to refer to help them resolve that situation. Secondly, according to them, travel agents are giving services by giving real information or their personal experience on the destination spots they send people to. They can also give travel tips that maybe useful where we cannot get them from online information. If a person booked online, if there is any mistakes happen during their bookings, they will have to carry the burden for themselves. But, using by the travel agents, they will do anything in order to personalize the needs and wants of their customer (Travel Cafe Inc, 2011). Besides that, the travel agents are giving their specialized expertise that an individual does not have, or might forget during a trip. For example, visas, insurance, currency exchange and also custom regulation of a destination (Cole, 2009). Travel agents can help you to arrange and organize any compulsory official papers that you possibly will need in order to travel outside of the country (McNally, 2007). Rand McNally (2007) added that, travel agents know the necessary documents that you may need for your traveling such as visa and they can direct you to your local passport office too. Furthermore, travel agent can give extra services that an individual cannot get from online booking. One of the example is they have the ability to source and different travel experience and help to book hard booked restaurant (Talwar, 2011). Other than that, when you call with any problems during your trip, an online travel agency is not going to pick-up the phone but then a travel agent will remains to give you that personal care even though you are away (McNally, 2007). Building that personal relationship provides you the assurance that you can reliance on your agent’s expertise and no matter the situation, they will be around to assist you to find a resolution (Bow, 2012).

Additionally, if you should have any enquiries after booking your trip, you know exactly how to contact your travel agent and can escape the uncertain FAQ section on a website (McNally, 2007). The services that serve with the human touch and worth deal will make the travel agency retain in the business. According to Geoff Williams in his article, he said that as soon as the tourism space getting bigger, you are going to have a choice in the middle of a thinking, helpful individual and a capable unfeeling internet site that does not surely care if you travel on Saturn whereas your baggage bursts into flames on Mercury. As for that, who are you going to trust? Smart Money magazine summarized the whole thing moderately well on the cover of the June 2007 edition. “FORGET ONLINE! TRAVEL AGENTS GET BETTER DEALS”.

2.2 NEGOTIATION POWER

In general, negotiation mean bargaining process between two or more parties seeking to discover a common ground and reach an agreement to settle a matter of mutual concern or resolve a conflict (Business Dictionary.com). According to Fisher & Ury in their book Getting to YES: Negotiating Agreement without Giving In, negotiating is a basic way in getting what you want from other people (1981). While in Oxford Dictionary, negotiation means discussion is aimed at reaching an agreement. In Women Are Getting Even (WAGE) website, they interpret negotiation as conversation between two parties in order to make an exchange. According to Rusk (2006), the meaning of negotiation is “discussion intended to produce an agreement”. It also can be referring as common solutions that used to make a decisions and settle down the problems (Moore, 2012), a process which is two or more parties attempt to agree on the rate of goods and services that they exchange (Robbins & Judge, 2003). Conflict and negotiation are a fact of everyday work-life, yet it often produces anxiety (Cutts, 2012).

The UK Border Agency has announced that there are still technical problems with online booking service (Kelly, 2012). This statement shows that sometimes online booking faced a problem such as lost record (Kirschbaum, 2009), security issues (Fane, 2010) and technical issues (Scoot, 2012). There are problems that faced by customer when they used online booking system. Despite the fact that all the respondents (except for one) use computers almost every day, 14% believe that booking online is not securing in general (Bogdanovych et al, 2006). Conflict happen because of these problems. Conflict happen when people did not agree with the issue, it will create a friction or tension between that individual or groups (Nahavandi, 1999). Negotiation is a process that examining the facts of situation, exposing the interest of both parties involved and bargaining to solve the conflict as many as possible (Moore, 2012). Negotiation permeates the interaction of almost everybody in the organization (Robbins & Judge, 2003). According to Lucas (2008), conflict might occur because of differing perception, inadequate or poor communication and also contrary expectations. These problems often happen when dealing with customer especially in travel agency. In tourism industry, negotiation is an important process to gain a mutual agreement of something, especially for the travel agencies. It is crucial for them to confirm what their customer wants and need. Through negotiation conflict between travel agency and customer can be reduced. Negotiating through areas of conflict can often lead to win-win situations agreeable to parties, reducing ill felling and conflict (Queensland Government, 2011). Travel agents have the negotiation power because they have maximum choice to offer to their clients (Travel Cafe Inc 2011). This means they have variety of choices that they can get from their travel suppliers and they can give us the best deal with best value of possible. Online booking lack of firsthand knowledge and rarely gives customer opportunity to speak with someone knowledgeable about service that they are booking (Morelock, 2012). The clients and travel agents can assists us to get what we need in our vacation and help us to get the best offer.

Online booking allows customer to make all travel plans on the Internet means they can do it any time of the day or night at home or while they’re on their lunch break at the office (Oakley, 2012). It is true when we are doing booking online we can make a booking everywhere and anytime, where it will be more convenient to us, but we cannot negotiate the price of the tourism product that we wish to book. If we are negotiating with travel agents, we have the chance to get lower prices as possible. Price negotiation usually occurs during purchasing of materials or supplies (Francois, 2012). For example, if a travel package to Cameron Highlands costs about RM300 for two nights, the clients can negotiate to get the lower price and finally they will get the offer around RM250 only. With negotiations, both parties will receive their own benefits and it is a win-win situation (Rusk, 2006). When customer asks an agent to negotiate, means customer are essentially asking the agent to subsidize their vacation (Brock, 2009) but through online system, customer had no change to negotiate with an agent because the price is fixed. The Marriott International, Hilton Hotels, Sheraton Hotels & Resorts and others was charged in San Francisco Federal Court on charges conspired to use their market dominance to fix the hotel prices with travel websites like Travelocity, Booking.com and Expedia, a subsidiary of Priceline.com From this case we can see that customer cannot negotiate the price because the price is fixed. The aim of the negotiations is to decide the price that is acceptable for both parties (Francois, 2012)

From price negotiation process it becomes bargaining process. Negotiations commonly follow a process of “positional bargaining” (Cutts, 2012). Oxford Online Dictionary give two interpretation of bargaining, the first is an agreement between two or more people or groups as to what each will do for the other. The second is a thing bought or offered for sale much more cheaply than usual or expected. There are two types of negotiation which are distributive bargaining and integrative bargaining (Robbins & Judge, 2003). Distributive bargaining also called claiming value, zero-sum or win-lose bargaining is a competitive strategy that is used to decide how to distribute a fixed resource such as money (Spangler, 2003). Honeyman (2012), interpret integrative bargaining as one of platform which party try to understand interests of another party, on the expectation that it will helping the opponent to create solution as responsive its own concerns. According to Tewart (2012), many times people say they don’t like to negotiate (bargaining) yet, they still shop around and never pay full price. The word bargaining here does not only mean price negotiation, it is a much differentiated and broader term (Management Study Guide, 2012). Customer also can bargain to build his or her own trip with or without help from a customer care executive (Agarwal, 2012), asking whether travel agency offer travel insurance (trip – Travel Responsibility Informed & Protected, 2012) and a customer can seek redress under certain circumstances commonly referred as the right to repair, replacement or refund (Government of South Australia, 2011). These are things that customer can always bargain with travel agencies.

The freedom for the customer is restricted when they make booking through online system. Customer cannot confirm their specific requirement when make the online booking through the hotel reservation system (Vyas, 2010). For example, when they make booking through hotel reservation system and they have something that they don’t understand, there is no place for them to raise the questions. According to Lloyd, booking online doesn’t have individual to deal with booking process, it leaf to customer to read and understand the complicated terms and conditions. One of the advantages of booking direct with the hotel, by phone or email, is that customer can request a specific room of the hotel and they cannot normally do that online or with an agent (Trend, 2010)

According to Tewart (2012), most people act in their best interest and most people who say they don’t like negotiating, actually still want to. This statement shows that customers still love to negotiate and online booking system prevent them from doing it. Negotiation is needed in order to secure the resources required for successful project completion (Evans & Lindsay, 2008). Through negotiating win-win solutions with customers, it will not only give your company the best chance to succeed but will also create relation between customer and your company for future sales opportunities (Douglas, 2003). Negotiation also can increase clarity about the problem, can lead to innovative breakthroughs and new approaches, involvement in conflict can sharpen approaches to bargaining, influencing, competing and also can focus more attention on basic issues and lead to solution (Wertheim,1996). Solving problems that arise in negotiations is an integral part of collective bargaining. The first task is to recognize what is the problem that occurs and the secondly, is to decide what strategy should be taken to solve the problem (Anon, 2012).

According to Goodale (2007), negotiation is one of the most important parts in business as well as one of the most interesting parts of professional purchasing

Tourism in Italy – History

Tourism is one of the most important and vital sectors in Italy. Italy is probably one of the first countries that made tourism what it is today. International travel first became important under the Roman Empire. Latin was the common language day. The word feria first appeared in the ancient Rome, which means festival and it took the meaning of vacation. The Latin festival was the first mobile holiday, far from one’s residence. Domestic tourism flourished within the Roman Empire’s heartland, it attracted thousands to the city and country all over the empire which included most if the Mediterranean, North Africa, mainland Great Britain and the parts of the Middle East. Traders and merchants came to Italy from several parts of the world.

However tourism in Italy could have started from as way back as the gladiator fights in ancient Rome. As years passed the ceremonies were promoted and thousands of people flocked to Italy to see these bloody warfares. These events were always held in the Colosseum, which was also a major attraction. The people came from all over the Roman Empire and regions of Africa, Italy, and Rome. The games were a way of entertaining the wealthy as well as the common people. When the Empire fell, Rome governed the governed the growing Christianity and it remained one of European greatest religious centers and places of pilgrimage. These pilgrimages started the early forms of religious tourism. Renaissance became very popular in the 16th and early 17th century and many students came to Italy to study Italian architecture.

The beginning of the Grant Tour was the peak of real tourism in Italy in the second half of the 17th century. Italy was considered the most popular destination. British travelled most parts of Europe, most famously, Italy to study architecture and culture of those places. These students were accompanied by a tutor and this trip often lasted 3 years or more. Travel for the reasons of education was encouraged but the fact that under Elizabeth I a special license had to be obtained in order to travel abroad. While the Grand tour was educational, as with the spas, the appeal soon became social, and pleasure-seeking young men of leisure travelled, to enjoy the rival cultures and social life of Europe. Every city in Italy was a sight to see and was the major attraction in the 17th century.

However, by 1840, when rail transport was introduced and visiting Italy was no longer considered something for the elite, the first form of mass-tourism was introduced. Places such as Venice and Sicily still remained the top attraction. The first sea side resorts, such as those in the Ligurian coast. Those around Venice, coastal Tuscany and the Amalfi coast became popular. Grand Hotels and holiday resorts began to be built and islands such as Capri, Ischia, Procida and Elba became more popular and were mostly visited by wealthy foreigners and academics. By 1913, tourism had become an opportunity, and there was about 90,000 British visitors, this is because of natural and historical characteristics of the country. The Italian State Tourist Office was created in 1919, and was given a mandate to gather different data and information in order to make a legislative proposal that will help to promote the country’s domestic tourism, thus focusing on the international tourism, as well as to facilitate different bank credit for the hotels. Tourism in Italy remained very popular until the late 1920- early 1930s, when, with the Great Depression and the economic crisis, several could no longer visit the country and the increasing political instability in the country meant that less and less tourist came. With the impact of the Great Depression during 1929, the economic and political uncertainty between the two worlds was the primary reason of the first intervention of the national government of Italy to get involved in the tourism industry. After a big slump in the number of tourist, tourism became popular again in Italy with the Italian economic miracle raised living standards and also the popularity of the Italian films brought back tourism to the country. The country had completed its postwar economic reconstruction during 1958 that helps to restructure the country from an agriculture-based to an industry-centered economy. It had helped to maintain the stability of the tourism industry. During the said year, the international tourism industry of the country increased to $8.7 billion. Cheap Hotels were built in 1960s, and anyone could afford a holiday somewhere along the Italian coast. Mountain Holidays and skiing had a mass-popularity in the late 1960s. Despite the significant slump of tourist in the late 1970s and early 1980s because of the economic crises and political instability, by the late 1980 and early 1990s, the tourism regained in popularity. Now at the beginning of the 21st century tourism in Italy faced a number of challenges, the September 11 attacks in the US, made many tourists scared to travel and the economic meltdown in 2008 caused a significant drop in Tourism worldwide and Italy is now in state of recovery.

Life Cycle Analysis
Launch/Discovery

Many tourist visited Italy for centuries, but the first actual tourist was said to have visited during the Grand Tour in the 17th and 18th century. Roman Empire was also a major pull factor that attracted thousands of people from around the world. People also came to Italy to witness the bloody warfare which was held in the Colosseum and this attracted many people also. When the Empire fell, many pilgrims would come to Italy and this could have been the early form of religious tourism. Italy, at this time was said to be a favorite destination by many. However, about 90,000 visited the country because of its natural and historical characteristics. In 1919, tourism had become an opportunity and the Italian State Office was created to promote international tourism and assist with different bank credits.

Growth

During 1958, Italy had finished its postwar economic reconstruction and the country moved from agriculture based to an industry- centered economy. Tourism became popular again, with the Italian economic miracle and raised living standard, and the popularity of Italian Films such as La Dolce Vita abroad and this brought back tourism in the country tremendously. In the late 1960s there was a mass influx of tourist, who came to the island because of the popularity of mountain holidays and skiing, which was offered for the elite in the 1930s. Many hotel chains became interested in the economy as a result of the management of government regarding the tourism industry. During the years of 1985 until 1995 the revenue for the industry increased extensively from 8.7 billion to 27.4billion. Moreover the country was ranked as top 4 country destinations from 1980 to 1996. By this time the annual growth rate for each year was 2.5% and the country enjoyed a considerable market share at this time. The development helped Italy to move from third to second rank for tourism receipts among the global top tourism earners, having an outstanding growth rate of 8.4%.

Maturity

From the period of 1996 – 2006 Italy saw a 10 year maturity growth rate in the tourism sector. Slight Progress has been made in 2006 and 2007 and there was a 3% increase in visitors after several years of maturity.

Saturation

In the years of 2007- 2008 was a steady rate of tourist coming to the country.

Year

Arrivals of tourist

2007

43.7 million

2008

42.7 million

2009

43.2 million

Although the figure shows a fluctuation of the arrivals of tourists, on average it is a steady flow of tourist arriving in Italy at that time period, therefore showing the relative stagnation of the destination.

Decline/Rejuvenation
Decline

Due to the economic global crisis, different visitors and foreigners are looking for countries to visit that are reasonable in cheap prices, However Italy is one of the most expensive destinations in Europe which have resulted in a 25% decline in British visitors coming to the country during 2008. The fall has been worst for local business owners in the tourism industry, who watched business falter by 50% over the past year. Also hotel owners said that visitors are now shortening their stays which would result in a decline in revenue.

Venice was a major attraction, but due to the sinking ground level, rising sea level, pollution in the lagoon in which it is located, atmospheric pollution, congestion on the main canals from motorized traffic and increase flooding, there was a huge decline in tourist arrivals presently.

Rejuvenation

Italy has made a number of efforts to rejuvenate its tourism industry. Earlier this year Italy created a new marketing brand with a new logo and slogan.

http://www.italymag.co.uk/images/italy-logo.jpg

.”Italy leaves its mark”

Italy’s local economy is now trying keeping their prices competitive for many and they hope that the bargains would attract more tourists to the country. Also since Italy won the 2006 FIFA world cup tourist regained a new interest in coming to the country once gain.

Italy also brought back a reintroduction of films in the year 2008 to regain popularity.

Present Situation

Italy is the fifth most visited country in the world and the country receives approximately 43.7 million tourists a year. These tourists visit mainly for Italy’s prosperous culture, history, art, cuisine and fashion. After the recession affected tourism and Italy’s economy greatly in 2008, the tourism industry in Italy today is beginning to flourish again. Cities like Milan which have become popular tourist destinations saw a rise in tourists since it became known as the business and fashion capital of Italy. Rome which is one of the most important tourist destinations in the world and is third most visited city in the European Union also saw a rise. While the world economic crisis forces many consumers to change spending habits, at least the religious tourism in Rome is left unchanged, the Vatican City, the spiritual home to the world’s 1.1 billion Catholics, boasts more than 30,000 churches and sanctuaries according to the country’s Ministry of Culture. According to United Nations’ World Tourism Organization statistics, seven of the world’s 10 most visited Christian sanctuaries are in Rome. Other regions which generate masses of tourists include: the romantic city of Venice, Tuscany, Naples and the popular tourist island of Sicily. The Italian Government Tourist Board (ENIT) has made efforts to promote all year round tourism with the country’s many equipped beaches, sport and ski facilities, 65 percent of the world’s artworks and historical monuments, and agri-tourism farms where tourists enjoy the land production, like wine, and olive oil and fruits. There are approximately 40,000 hotels in order to cater to Italy high influx of tourists coming to Italy daily. Italian tourism operators are increasingly engaged in improving the quality of their product and in promoting Italy as a destination. Italy may not take up much space geographically on the globe, but it consistently ranks among the top vacation destinations on the planet.

Tourism is considered as one of the most important and vital industries in Italy. It is one of Italy’s most developing and most profitable industrial sectors, with estimated revenue of $42.7 billion. Tourism is one of the fastest growing and profitable sectors of the Italy’s economy. The industry plays a strategic role and has a major impact on Italy’s economy because of this constant influx of tourists. Tourism in Italy is one of the country’s biggest income sources. Italy’s Gross Domestic Product in 2009 reached $1.8 trillion, 69% is represented by the services sector, whose strong point is tourism, approximately 29% is owing to the automobile industry, engineering industry, apparel/textiles industry and the construction industry and the remaining 2% is derived from agriculture.

The geographical distribution of the nation’s wealth is as follows: approximately 31.8% of Italy’s Gross Domestic Product is produced in the Northwest regions of the country, 22.3% in the Northeast regions, 21% in the regions of Central Italy, and finally, approximately 24.8% can be attributed to the regions of Southern Italy.

In 2009 the expenditures by international inbound visitors (tourist receipts) made Italy the fourth highest tourism earner. The everyday tourists in Italy spends varying amounts daily and the average daily spend will vary widely based on seasonal variations and desired destinations. The fact is that some tourists may enjoy a great two-week adventure in Italy and spend less than $4,000, while others may let a commercial tour company make the decisions for them and end up spending $15,000. Italy isn’t cheap, although however compared with the UK and northern Europe the situation is not so bad. What you spend on accommodation will depend on various factors, such as location, season (August which is the peak), the degree of comfort you want. The cheapest pensione (small hotel) is unlikely to cost less than a‚¬25 for a basic single or a‚¬40 for a double room. You can stumble across comfortable rooms with their own bathroom from a‚¬50 to a‚¬80. Midrange hotels in the more expensive places such as Rome, Florence and Venice can easily cost from a‚¬80 to a‚¬150 for singles or a‚¬120 to a‚¬200 for doubles. Eating out is just as varied in Venice and Milan , while tourist magnets such as Florence and Rome offer surprisingly affordable options. On average you should reckon on at least a‚¬20 to a‚¬50 for a meal (two courses, dessert and house wine). Backpackers usually stick religiously to youth hostels, they snacking at midday and travelling slowly, spending approximately a‚¬40 to a‚¬50 per day. Your average midrange daily budget, including a sandwich for lunch and a simple dinner, as well as budgeting for a couple of sights and travel, might come to anything from a‚¬100 to a‚¬150 a day.

Many tourists come to Italy for many different reasons whether it is for leisure or business the average length of stay according to the UNCTAD Handbook of Statistics is 3.81 days. Tourism represents an opportunity but also a fascinating challenge for the country in terms of economic growth, international image and improvement of relations with other nations. However, tourism is important because of its economic and employment potential, it is a sector that employs nearly three million persons which is equal to approximately 12 percent of the total work force and is expected to increase in many years to come. Italy is also the ideal tourist job destination. There are ski resort jobs in the Alps in the North part of the country in the winter, beach resort jobs in the summer, and restaurant and hotel jobs all year long. There is also a huge demand for city guides in Rome, Venice, Pompeii, and many others during the summer. Tourism also contributes to the prospect of wealth and opportunities to the less developed minor regions in Italy in order for them to progress economically. With the expansion of international tourism, along with the country’s enormous potential, Italy has to maintain and upgrade its tourism industry over the next years to maintain and expand its market share and provide economic growth.

Market Analysis of Tourism in Italy

With more than 43.7 million tourists a year, Italy is the fourth highest tourist earner, and fifth most visited country in the world behind France, Spain, United States and China. . Domestic tourism, or the travel of Italians within their own country, is the market’s largest sector. The majority of foreign tourists coming into Italy originate in Europe. Germany in particular is a major source market for tourism in Italy. Figure 3 gives a fairly good idea of how big the German market is in Italy. According to UNWTO World Tourism Barometer for January 2010, Italy was one of the very few countries that maintained their market share in terms of foreign tourist arrivals, remaining firmly among the top five most successful destinations worldwide.

Figure 3 shows a Pie chart representing 10 major source markets of tourist and their respective percentages.

Source: Invitalia elaboration of Istat data, Capacity of accommodation facilities , March 2010

Figure one further re-iterates the largest percentage of tourists coming into Italy are in fact Europeans. Italy has always been one of the most desired and visited travel destinations worldwide. In relation to the age group of the Italian tourist market, Italy attracts many young people between 20-30 years old. ADDD INFO ON THE YOUTH MARKET However, 55% of the Italian tourist market is over 55 years old.

The summer of 2010 has shown that Italy is definitely recovering from the worldwide economic crisis and is enjoying an increase of visitors from many of its major source markets in comparison to the previous year. According to ENIT , there is an upturn in international markets in relation to Italy, opting for shorter holidays, favoring of all inclusive formulas that make it possible to better evaluate the prices in relation to the product purchased, and increased interest in holidays in contact with nature. Arrivals from the USA are showing a favoring index of about 25%, to art cities, lakes and mountains. South American countries such as Brazil and Argentina also show a rise of at least 20%. As far as the Asian and Oceania markets are concerned, Japan shows a growth trend towards Italy as a destination. The art cities and best known seaside resorts are confirmed as the favoring destinations. In India, on the tourist front, the height of the season ended in April and was without a doubt marked by an excellent increase in tourist demand for the Europe product in general, and specifically for what Italy has to offer (+20%).

In terms of the European market, there are also positive signs for the car travel segment to neighboring destinations, while there is a downturn in air travel. As previously stated, Italy enjoys a leadership position on the German market. Summer of 2010 has shown an increase of 5% of German arrivals when compared to 2009. Italy also saw a slight increase in sales among Austrian tourists (+5%). The positive trend for Italy on the markets in Belgium (+10%) and Holland(+3%) continues while Spanish tourism outlets have seen a drop in bookings. Italy’s Unites Kingdom market is showing a growth in demand for lesser known destinations in rural areas of Italy while the French market is favoring sea and beach offers like Sicily and other areas such as Tuscany and Lazio, for its cultural attractions. Charter flights to Italy have also increased for Russia, coming from Moscow. According to ENIT, the packages sold have shown an increase of more than 30%, while tourists coming from the Czech Republic favor coach tours to seaside centers and big art cities.

People mainly come to Italy for its rich art, cuisine, history, fashion and culture, its beautiful coastline and beaches, its mountains and priceless ancient monuments, especially those from the Greek and Roman civilizations. UIC data on inbound tourism in Italy indicated that travellers’ expenditure was connected with the following reasons; cultural, environmental, social and visits to family and friends

Figure 4

Figure 4 shows a pie chart indicating various reasons travellers’ expenditure in Italy and their respective percentages

This information gives us an idea of Italy’s target markets and how they would choose to proportionately allocate funds aiming at these markets. Although the information in figure 2 gives us a good idea of the reasons people go to Italy, it isn’t as detailed as it could be. *Add some info different markets such as wine and food tourist, cultural etc*

The sports tourism market in Italy is a growing one. Football fans in particular venture into Italy to watch the seasonal Italian Serie A football matches. Occasionally , Italy is blessed with UEFA champions league football matches .The UEFA champions league has one of the biggest followings in football. In addition to this, Italy were the winners of the 2006 FIFA world cup finals. That in itself draws sports fans to the country of Italy.

Italy also caters to huge fashion tourist market. Milan is seen as the fashion capital of the world. Fashion designers and fashion followers alike flock to Milan in numbers for the various fashion shows and exhibits.

Religious Tourism is one of the major market segments of tourism in Italy. While the world economic crisis forces many consumers to change spending habits, this economic sector has so far been barely touched. Official figures are hard to come by because visitors to Italy are not required to indicate whether or not their vacation is religious in nature. However, tour operators and travel agents say that the number of religious tourists in Italy hasn’t changed much. Michael Patano, the director of Aurea , a 6-year-old trade fair for agencies that market religious tours, said “Religious pilgrims still want to have the same experiences.” The high point for religious tourism in Rome is Easter, which takes place on Sunday. The Vatican says that if the weather is good, attendance at the Easter Mass in St. Peter’s Square usually surpasses 100,000 people. Although there are few official figures indicating the importance of religious tourists to the tourism market, it can be assumed that religious tourism has a significant market share of tourism in Italy.

All in all, Italy’s market has been relatively constant over the years and there are areas where Italy can try to diversify their appeal and also penetrate further into existing markets. After all, Italy has a wide range of fascinating attractions that can appeal to a cross section of tourist markets.

Product Analysis

A product can be defined as a good or service offered with the purpose of satisfying a want or need. Italy itself, so rich in history, art, architecture, religion, fashion, cuisine, music and landscape, is a very diverse product since it has so much to offer, to many different markets with its many amenities and attractions. Here, we will identify and examine just what Italy has to offer. An attraction refers to one thing being drawn or enticed to another. In Italy, there are many, many lures that draw foreigners and even locals to the many parts of the country. One of these attractions is the Colesseum, which is located in Rome. The ruins of what once was a great amphitheatre used to host gladiator duels and public spectacles still remains very popular today. This mammoth of a structure sees an estimated 4 million visitors yearly, many of whom come to sight-see, learn about its history and study its marvelous architecture.

800px-The_Colosseum_during_Christmas.jpg

Photo Of The Colloseum In Rome

Also located in Rome, is the Vatican City which is actually considered a separate state within Rome. This city is ruled by The Pope, who is the Bishop of Rome and leader of The Roman Catholic Church worldwide. Catholicism is the largest denomination of Christianity and has the largest religious following in the world with approximately 1.1 billion persons. However many Christians and Non-Christians visit the Vatican City yearly touring its museums and hoping to see The Pope. Still in Rome we find Pompeii, a unique attraction in a partially buried town. Pompeii was destroyed and buried by a volcanic eruption and was rediscovered in 1599, but with the excavation of the ash, we see preserved parts of a city in the pinnacle of the Roman Empire. Rome is additionally known for the Spanish Steps or Scalinata Spagna; the longest and widest staircase in Europe, which links The Spanish Embassy located in the piazza below to the French church; Trinita dei Monti, above. Also popular is the Trevi Fountain, the largest Baroque fountain in the city which is well known and often featured in movies. Rome also boasts of popular restaurants such as the Antica Pesa & La Pergola and hotels such as the Bernini Bristol and the Westin Excelsior.

Another popular Region in Italy is Tuscany which is renowned for its heartwarming landscapes, brilliant wine and art, and its luxurious villas. In Tuscany we can find the City of Pisa which is the home of The Leaning Tower of Pisa. The tower is actually the bell tower to the city’s cathedral and began construction in 1173, taking nearly 200 years to complete. Shortly after construction began, the tower started to lean to the right due to the poor construction of the foundation. Today, millions of visitors come to Pisa to see the tower’s distinct architecture and signature lean. Tuscany is also where we find the province of Florence, home of many elegant squares, renaissance palaces, cathedrals, museums and galleries. Most popular of these galleries is the Uffizi Gallery, where the works of popular artists such as Michelangelo, Botticelli and Leonardo da Vinci can all be found. One of da Vinci’s most popular works, The Last Supper can be found in the monastery of Santa Maria delle Grazie in Milan. This is world renowned painting of Jesus and his disciples before he was betrayed and is frequented by visitors of the region. Milan is also popular for its magnificent football stadium, the San Siro. This stadium is home to A.C Milan and F.C Internazionale Milan which are two the biggest football clubs in Europe with millions of fans worldwide. Moreover, Milan is best known for fashion and design, and is regarded as one of the fashion capitals of the world. Major Italian brands such as Valentino, Gucci, Armani, Prada and D&G all now have headquarters in Milan making their selves more accessible to the city’s high end fashion market.

The City of Venice is known for its gothic architecture, tourism and romantic lure, and is also known as “The Floating City”, “The City of Bridges” or “The City of Canals”. The city has been given these names since it is comprised of 117 islands joined together by 409 bridges, and the main mode of transport is by boat. It’s common in Venice to see couples being rowed along in a gondola; classical Venetian boat. Travel by waterways is the most popular method of travel in Venice since there are no real roads but only walkways and bridges. In regions near the Mediterranean, the country is very popular for its waters. However, not only does Italy have white sandy beaches as we can find on the Amalfi Coast, but also thermal waters with healing properties. This has led to the development of thermal spas and even resorts around the country which are encouraging for medicinal tourism. Italy also has a rich history in classical and symphonic music and stemming from this come their love for operatic singing and ballet dancing. Many shows and recitals are held annually all over Italy by the opera houses which have seasons for both symphonic singing and ballet. Furthermore, the Vatican is not the only place which has a religious pull but rather it’s a nationwide affair with visitors coming from far and near to explore Italy’s many cathedrals. Other notable attractions in Italy are its mountainous snow covered regions with perfect conditions for camping and alpine skiing, its many nature parks and reserves and the unique experiences offered on the islands on Sardinia and Sicily.

italy-ski-resorts.jpg

Photo Of a The Alps

Millions of tourists visit Italy yearly and due to the course of recovery the country is currently on, millions more could be added to the total, but Italy can be said to be prepared now having over 40 000 hotels. These hotels vary in standard from 1 star to 5 star deluxe, and in Milan, Italy has set the benchmark being the first country in the world to have a 7 star hotel; Town House Galleria. Additionally, Italy has its own distinct cuisine and beverages, and has a holistic cooking style combining healthy with delicious. Their love for pasta, cheeses, sauces, meats, vegetables, fish, pizza, gelato, coffee and wine has set them apart. This love has spread worldwide with Italian cafes and restaurants being found in most countries, however, this hasn’t stopped visitors from coming to Italy to have a firsthand taste of their cuisine. Present day Italy has hundreds of thousands of eating facilities ranging from cafes to pizzerias to fine dining restaurants. Moreover, with this cuisine a good wine can always be expected, and why not since Italy is one of the foremost wine producers in the world with its signature Rosso (red) and Bianco (white) wine. This extensive high level production can be attributed to Italy’s rich soil and climate. Vineyards can be found all around the nation in regions such as Aosta Valley, Lombardy, Tuscany, Sicily and Venito. The wine industry is a massive contributor to the Italian economy both on its own and through tourism.

Italy has made itself very accessible having 30 major airports and 43 major seaports; 2004. Additionally, Italy has an extensive and highly maintained road network making transport between cities easy, which encourages local travel. Italians also have large bus fleets to service the public from town to town, and city to city; SITA, but in Venice there is a waterbus fleet. Visitors crossing the borders are also accommodated with the border crossings connecting to France, Austria, Switzerland and Slovenia being opened 24 hours daily. Furthermore, Italy has an established railway system comprising of both electric trains and locomotives which run through the country and connect with bordering countries, and a water fleet of ferries to service the inland rivers and canals.

Promotional Strategies

The objects of the promotion and communication activities are Italy’s image and its overall tourism product. ENIT is the institution in charge of promoting Italy’s tourism product. ENIT pursues its institutional goals through activities such as studying international markets and in particular the connotations and trends in demand for individual and organized tourism. ENIT is also constantly monitoring the development of tourism demand. Italy’s tourism board is constantly involved in planning designed operating strategies in agreement with Italian tourism’s public and private players. This includes the Ministry of Production Activities, Regions, central public administrations boards, professional associations, and producers of services for tourism i.e. transport, hospitality, food service, public businesses, and so on. One of the most important aspects of promoting tourism in Italy is developing planning objectives employing, for each market or homogenous consumption area, just the right combination of a number of operating tools. These tools could be in the form of;

Multimedia communication

Mass media advertising

Print, multimedia, and audiovisual production

Creating and managing data and image banks

Traditional and telematic information distribution

Material distribution

Press relations in Italy and overseas

Sectoral analysis and business strategy consulting service for the Regions and private Italian operators

Organizing marketing meetings between Italian supply and foreign demand

Organizing seminars for professional users

Providing assistance to visits by Italian economic operators abroad ,and by foreign economic operators in Italy

Meetings with administrative authorities, opinion makers, personalities, and representatives of cultural and artistic areas in the various foreign nations where ENIT offices are located

Organizing and taking part in fairs, expositions, exhibitions, and large-scale

The History Of The Sweden Tourism Tourism Essay

Sweden Tourism is attractive destination for both business and leisure travel. It is faster growing industry and they are expecting their double revenue in next decade. However, the revenue coming from international visitors in cast five years it’s more than doubled. Visitors were increased higher than the European average domestic travelers and International travels both have increasing demand for the combination of the under developed market it will creates the major opportunities, basically for foreign enterprises helping in the accommodation activities, they help in producing new way of service, new products and new competitors. So Sweden tourism is an attractive destination.

Sweden has abundant natural resources to offer like clean water, fresh air, open space, beautiful and fresh nature and adventures lands that exits for everyone. Attractive Sweden is extremely huge in size, 246 sq. km. compared to UK. They have just 20 per sq km people were living in the Sweden.

We can have perfect destination and active vacation in all requirements Sweden. Actually, unique natural and cultural heritage with foreign city life it makes the destination attractive. Activities and experience, leisure activity, wilderness and adventure to travel through and spend the days with sailing or sandy beaches with the group along coast line in Sweden.

Introduction:

Growth of Tourism Industry in Swedish, since 1991, eighty percentage of the International traveler was increased to travel Europe. In the same period almost 100% of the travelers found their way to Sweden. Last five years international visitors were doubled and produced the revenue for tourism industry in Swedish. Sweden generates over 252 SEK billion in turn over; service relation businesses and hospitality are supporting the range of tourism industry.

They are estimated 500 SEK billion to expected turnover to grow the tourism industry in 2020. Sweden have the good potential growth in tourism sector, recently comprising the GDP is only three percentages in tourism sectors.

Four percentage of the global travel is decreased during 2009. However, overnight stays are almost 30% increased in Europe. In 2009, International overnight stays were increased one of the main destination in Europe is Sweden. International tourists were spending their money on goods product compared to domestic travelers. Fifty percentage of the shopping account were consumed by international travelers and forty percentage were business and leisure travelers in Sweden and domestic travelers most of them spending their spending their time and money in shopping. It is also the main purpose to step in the international travelers to take food in restaurants than Sweden travelers.

Communicating with global and domestic travelers:-

However, Day by day foreign tourists increasing so they are continued conducting no of direct flights and tourist resorts future inflows and accessibility of visitors. Traffic of cruise ship and investment is producing in harbor facilities to increase the Sweden travel.

They are expecting the more calls and more visiting travelers to major ports to indicate the development in future. Ensure well developed roads and railways network to easy access the Sweden to all part of the country.

Attractive places in Sweden:

Gothenburg:-

The primary city of the nation is bohus and Gothenburg; it has excellent information and is the seed of a Lutheran bishop. Social and cultural life style in Goteborg is recognized from the end of art gallery.

Helsingborg:

Deliberately situated at the narrowest aspects of the Oresund compared the Danish city of Helsingborg for hundreds of years fiercely uncertain between Denmark and Norway. There are program to develop link over the Oresund.

Kalmar:

Primary city of the national of Kalmar in south eastern part of Sweden can be found on the Kalmar, which individual the isle of Oland from the landmark. There was already dealing published here in Viking period. The town contemporary sectors consist of technology innovation and engine vehicles.

Falun:

The old getting out city of falun can be found on both financial institution of the stream falun between the runnsio and varparjo. Falun is still a important commercial city and also entire many activities.

Karlstad:

Malno can be found on the western coast of skane reverse the Danish investment of Copenhagen across the Oresund. A significant slot of Sweden’s third greatest town, it is essential financial and social middle. The town accepted to Norway under the agreement of Roskilde.

Stockholm: It can be found on the variety of destination and peninsula at the output of pond malar into the Baltic, Which presently types and in depth. The appeal of its establishing can be found in the intermingling of area and water, the complex design of river covering the town.

Uppsala:

The most significant developing in Uppsala is the church, noticeable from most aspects of city. It is the primary city of the nation of Uppsala and the area of upland and the chair of the Lutheran archbishop of Norway. The individual of upland appreciate the right of choosing and deposing their leaders.

Vaxjo:

It can be found at the northern end of the several of that name. It recognized its public rental in 1342 and now primary city of Kornberg nation. Vaxjo is house to two recognized mansions Kornberg adventure. Completed in the fifteenth millennium and teleborg adventure designed 1900. It becomes a religious middle in the twelfth millennium; when its first cathedral was develop by sigfrid.

Visby:

The island investment, the city of flower and rains on the North West coast of Gotland is the chair of the government of Gotland nation and the bishop. Within its surrounding surface it has surrounding much of its ancient atmosphere and obtained the name of UNESCO globe culture site.

Great potential for foreign Developers:-

Nevertheless, growing demand on new attraction. Accommodation and fuel packing experiences produce the investment for tourism industry. Some of the growing opportunities in tourism food, adventure tourism, ecosystem and ski; Demand were increasing by the accommodation and infrastructure this are getting large investment in Sweden, with many and various opportunities for foreign investors, tourism entrepreneur, real estate, companies activity, hotel and accommodation companies etc.

They are providing the supply of 36000 rooms and 2000 hotels in Sweden. It is not enough to meet travelers demand. Here shortage of staying on the place in different segments from voltages, holiday cabins, budget hotels, to five and four star hotels with health care facilities.

Sweden tourism is getting rise, October to May in long reason. Snow fall is guaranteed the Sweden ski resorts are increasing popularity. Ski passes on another record in term of 2009/10 season, traveler’s volume, scold and turnover. Services accommodation ski lifts improvements are the demand for large investment in ski resort destination.

Foreign travelers to ski resort are producing due to more direct flights and charter flights to the huge ski resorts. It is also regarded as snow land, less exploited and exotic resorts in Europe. The annual sales growth of ski resort 2009/10 sales growth got million SEK.

They are valuating on holding destination is stronger and stronger. Most probably market of domestic tourism was important for holiday club. They have lot of money, so they were enjoying their holidays.

PEST Analysis:
Political:

Name of the country is Sweden; their legal system is based on 1974 constitution Carl XVI Gustaf has king in Sweden; he is the head of state, 349 members of nationals legislature in Swedish parliament. Actually every four years election could be held and cleared that the king has election could be held and cleared that the years the king has no role play in government. Risks dag is set a new world record in the 2006 election they were 47% women were members elected.

Main parties: – Politically Sweden is stable and it is very safe country. Corruption was fully implemented by law on corruption in Sweden. The main parties are moderate party, people’s party centre party, Democratic Party, left party.

The Eighty five percentage of the population connected to the cathedral of Norway which is Lutheran. The academic program gets to the whole inhabitants and the knowledge amount is ninety nine percentages. In 1999, twenty four percentage of the population outdated sixteen to seventy four years had a university education of at least two years. Highest focus on the population considered in the seaside areas and the southern part. Swedish are the prevalent culture group. Other citizen consists of immigration from Finland south part of United States, the center eastern.

Economic:

The main structure is the responsible for economic upturn, due to Sweden government revenue in policies required to fulfill a purpose of considerable decrease in damage of assets applying and having good access to Sweden’s capital market of business.

Long term unemployment:

The power of labor market policy could be improve their training, which needed it most and getting ability in built the cooperation between institutions. Reforms in the tax system and social benefits to the right incentives for provide increasing the working hours.

Portfolio investment and capital markets: credit is made by available in international businessman in an impartial way. The private companies are providing access to a variety of credit instruments. The central bank is focusing on producing the foreign cooperation.

The coordination determines among twenty five to forty nine year old was thirty one percentages were females contributed in the employees is also great, constituting forty eight percentages of the labor power in 1998. However, part time perform is more frequent among women than men. Living requirements are among the biggest in world and the GDP per house hold, measured as buying power equality modified dollars, came to 20789 in 1999. In the 2000 Sweden was ranked sixth by united nation human development.

Social:

Swedish people very punctual and they don’t smoke in public places. Personal habit of the Swedish people is removing the shoes outside the home. Sweden students are very relaxed but they are willing to help others.

Technology:

Based on network reading index 2009/10 country of Sweden economy is ranked first and they scored 5.65 on the top of the report of global information technology. The report plays a major role of ICT.

Legal:

A law of Sweden provides a variety of models under a business can be established. Act (1992:160) Sweden law applies to aboard companies running with some other types of business the international branch’s president must be available within the EEA. Each and every company in Sweden is needed to register at the Sweden Company’s registration office. Legal protection of the trade mark must be registered in Sweden it can be obtained.

Three Range of years:-

However, Vision of Sweden in 2022 that is after 10 years, Sweden key industry is tourism it only creating the revenue for the country $1.7 billion. It will remain the key challenges strategy of someone to address our potential identifies of embracing a new challenges approach to stronger industry and right to the region of firmly on the world stage of visiting destination.

The process of essential ongoing business from hundreds of unique tourist is the bed rock of the customer’s experience when visiting the Sweden. The level of cooperation to surround something scope of the confirming is unparallel within the region and it’s a first for regional tourism organization within the experience.

Tourism organization believes taking new ideas to show their cooperation with essential for the parts and unique business to get succeed. We have explained the experience more than fabulous service or product to product by an individual company.

And we have understood our competitors; they are New Zealand and California competition for tourism and travelers is increasing and understanding as tourist is crucial. The schedule is based by remarkable research and it’s based on portion of our visitors by their travel and social needs.

However, they are moving forward to conduct sports tourism, adventure tourism, wildlife tourism, hotels and resorts providing with lot of innovation in Sweden. Tourism spots were creates newly to foreign visitors to getting their good experience to find the good things in the country.

Vision of Sweden in 2030, Industry of tourism is return to set the way to move forward in the upcoming years. Although, due based on the various improvement that are set of functions in the tourism sectors. Tourism is the key operation of the Sweden’s revenue making industry. It was important to an organization all laws in government of Sweden in previously the censure to sector of smoothly running of the organizations.

The facts finding in various levels of tourism factors in the country that mainly produced in frame works and cooperation between two countries on value of tourism. To maintain low peace of growth in Sweden tourism to the high levels of in security legal frame works, lack of policies and poor roads.

Vision of Sweden in 2035, transportation and development plan for Sweden and they connecting with developing the regions. Promoting their ideas in big screen symptoms with neon paper. In a motor train only one vehicle has to guide results in decreased air resistance.

Key in order to promote analysis and confirm research results such as demonstration and lead features, proto types, research structure or market examining, needs wide cooperation between the market and those who will be using the new components and products.

A cooperation program should be funded mutually by the world of company and the government to make sure breathing and to provide opportunity for new gamers and company areas that do not exists in the present industry and to make sure top quality.

Sustainability:

Sustainability tourism is one of the main value or needs for the country in present condition without compromising the necessity of future generation. Industry of tourism has two main needs to balance the sustainability tourism, environmental cost and social goods.

Visit Sweden, together with our associate in the tourism industry. Targeting on chosen categories of company and enjoyment of travelers and people who are well informed tourist’s worldwide conscious and environmental aware, our concentrate on team research tell us that many people internet market with environmental care, a result of our strong natural information. We understand this to mean that they expecting with its several natural sources to immediately care for its outside.

Sweden Expectations: Sweden is considered as a country that performed knowingly with durability and that likes you about its inhabitants, its companies it’s surrounding and its characteristics. Many tourists believe that Sweden, with its environment friendly inhabitants works definitely for maintainable development.

Customer behavior: Customer awareness of environment problems and durability is increasing and maintainable choices are progressively available. More and more people experience they want to play a role definitely to a maintainable. The tourist who visit Sweden objectives are worldwide aware, have relatively great earning and are knowledgeable tourists who seek new interesting destinations.

Sweden creditability: Sweden and Swedish locations can provide maintainable products and discuss them in a reliable style. Sweden is already well known with respect to durability problems and according to the globe financial community is the country that is best placed to accomplish maintainable growth. In some countries Sweden is seen as a innovator in maintainable location. Moreover, these days many nations are focusing firmly on durability problems and on growing these message to the relaxing the world.

Risks: Other nations will work intensively and consistently on sustainable development to be able to enhance their nation’s natural information. The risks here is the Sweden could reduce its powerful place in the sustainability position, durability especially in types other than environment can be challenging to connect to prospective travelers in sample style. For example most qualification techniques and many travelers lack the essential information to make logical options when booking a journey or a conference.

Guidelines or other nationwide requirements can avoid the development of availability or other aspects of benefits to environmental travel. These can consist of different tracks sizes or a rule for high speed teaches to environment travel, entry to substitute powers and concepts changes for tourist.

Future challengers for Sweden: Visit Sweden’s require contains gaining as many international business and enjoyment tourists as possible to Sweden to accomplish increased growth and income for the Sweden travel and enjoyment market and the Swedish state. This places significant requirement on the assignment a long term development of Sweden tourism industry.

Visit Sweden needs to increase attention of maintainable journey with the objective of giving the visitors the information and resource to make consciously choices for maintainable journey of Sweden is designed to be such an eye-catching, sustainable location creating it an interesting choice for increasing numbers of guests.

Sweden way to the target: Sweden has many possibilities to discover in its aspects as Communications Company. Focused promotions should emphasize the maintainable choices at the same times as it reduces through the disturbance to our prioritized group. This is the only way to do these things in 2020 our target will success with sustainable destination and travel industry revenue will increase.

Conclusion:

Sweden location in the Scandinavian Peninsula, at the northern part of Europe, surrounded by sea as well as land masses of Norway, Finland, Denmark on the other makes it a perfect location for leisure travel. Its relative closeness to the sea routes of England makes it an ideal spot to visit. It has so many things to offer a tourist who arrives in Sweden. From its culture, hotspots climatic conditions, it has improved its tourism by leap and bounds. From being a kingdom of power to a country of peace Sweden has hopped along a long way. It will continue to stay ahead, considering the country’s economic stability and the resources it has to offer.

People travelling into Europe make their way into Sweden, being a part of the European Union helps their cause. Country’s tourism remains the countries backbone. Being a safe country adds to its cause. Friendly people and their culture attracts a lot of tourists from other continents as well as from within Europe as well. Government’s initiatives to promote tourism have helped it achieve epic success in attracting tourist. The transport has been a major factor in tourism, tourist prefer faster, better and cheaper transports. Sweden has a well connected train and roadways system. It has connecting train to several parts of Europe making it easily accessible. “Invest Sweden” has been a business promotion activity controlled by the Sweden government. This enables tourists to find their interest to do business in Sweden. This enables tourists to expand their businesses into Sweden, or be partners in existing business by investing. The flexibility of the government allow tourist to settle down in their country.

With job opportunities available, Sweden will soon become a thriving destination for youth and blossoming economy. It is circle that is said to go on. With attractive destinations to offer and with the government promoting tourism as a major portfolio, tourists and tourism will flourish in the near future and time to come.