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This proposal is to put into action and find new instructions of business by using over the last three years economic and profitable performance to characterize the answers. The suggestion seeks different essentials of business performance, such as: marketing development; Crisis management; and Functional level strategy of Accor Hotels to categorize the results.

The outcome shows with the purpose of Accor Hotels are performing well in the past three year’s company performance. But still, there are a number of improvements are necessary in industry growth. Crisis Management needs to be compulsory that can helps the organisation to perform more effectively. Analysing the Past trends and issues that causes the crisis related to the organization and businesses are able to stop, manage, or moderate the belongings of crises in the future.

Accor have opportunity to develop the business by geographical extension around the world. Market development strategy focusing in particularly at Asian and pacific region that has future development like constructing Accor brands like Suite Hotel and Motel6. That gives strength and also helps to geographical extension of the company in order to attain the customer satisfaction and brand image.

Accor should have functional level strategy in human resource management that are rewarding and motivating the employees, customers and reselling by various methods like Gift vouchers, prepaid cards, rewards to enhance the relationships with the customers and employees.

Contents

Executive Summary: 2

1. Introduction: 4

2. Background of Accor hotels: 4

3. Future Strategy for Accor: 6

3.1 Crisis Management: 6

3.2 Market development: 8

By analyzing the (Table 3) Asian pacific region have a huge growth in Travel and Tourism between 2008- 2018. Where constructing and building of Suite hotel and Motel 6 of Accor brands in Asian and pacific region. Focusing on new customers with the same product and service but in different geographical areas is the Market development. However China and India are the emerging market building more suite hotel and motel 6 for the customers. So, Market development strategy for Accor hotels to develop the geographical extension around the globe. 10

3.3 Functional level Strategy: (Human Resource Management (HRM)) 10

4. Conclusion: 10

5. Reference 11

6. Appendix A 14

Introduction:

This report is about the Strategic of Accor Hotels past, current and future prospect. Section one evaluates the background of the Accor hotels in their past three years strategies between 2007-2009.Section two, it will be the future strategies that will consider the Internal and external Issues and trends on the hotel with SWOT analysis. Finally, it concludes and summaries the whole report.

Background of Accor hotels:

Around the world Accor is one of the foremost hotel operator in the world (Accor, 2008a), European organizer in hotels and tourism and the global organizer in Services to business customers and communal organization, Accor works in nearly 100 nation with extra than 150,000 employees (Accor, 2008a). Past 40 years, it has offer consumers with knowledge get in its two center businesses, Hotels and Service (Accor, 2008a).

Hotels: Hotels has a geographically and structurally reasonable business portfolio. Hotel action contains further than 15 corresponding product from comfort to wealth that are recognized and respected around the world for their service value (Accor, 2008a). Accor offers various luxury hotels brands like see Appendix A. Many lodging companies have developed many brands to give out multiple market segments (Jing, Dev, and Rao 2002).

Service: It operates over 40 nations; Accor Services plans, expand and handle elevated value-added services for corporation (Accor, 2008a). Accor Services propose a entire choice of prepaid services in the region of worker and community benefits (Accor, 2008a).

Accor hotels past and current strategies were evaluated with annual reports of the company and message given by Chief Executive Officer (CEO) of Accor Hotels. In 2006, Accor hotels have increased the number of rooms and available nearly double in 2010. The expansion model of 40,000 rooms per year focuses on organization contracts and franchise Accor (2010a).Accor has preferred four drivers to distribute the 40,000 new rooms per year by Expanding in Western Europe in Eco and Budget, and by franchise it increase the market share in established markets, Strengthen the location in rising countries, Management networking to expand the upmarket and luxury Accor (2010a). Accor has changed its strategy to focus more on increasing the business through franchising and organization contracts and less on construction of new hotels (Walsh, 2003).

Figure 1 Expansions and investment of Accor hotels around the globe.

Source: Accor (2010a)

The word ‘strategy’ refers to the wide direction, or holistic point of view, taken by an organization to plan for and make safe its long period goals (Marginson, 1988). Accor introduced acquisition of Motivano software in functional level Strategy of Human resource management (HRM) in the technological developments, which enables online management of employee benefits (Accor 2008b). Rewards and motivation for the employees, Customers and reselling by various methods like Gift vouchers, prepaid cards, Rewards to enhance the relationships with the customers and employees (Accor, 2009a). Kotler (2003) says that it is significant to make an excellent link among customers; and the suppliers in order to develop the issue of consumer faithfulness. Accor have product development for their customer’s relationship towards the organisation by having a multi brand A| Club loyalty program across the worldwide (Accor 2008b). An expansion method Accor service makes stronger its faculty for technical modernism with the gaining of Prepay Technologies Ltd. The achievement of Prepay Technologies makes stronger for Accor Services management and expands its collection of stuff and services in the UK (Accor, 2007b).

Accor focus strategy on French Polynesia for leisure travelers. It presents visitors the possibility to treat individuals with the crucial in leisure and luxury at three of its limited resorts in French Polynesia. Accor hotels are focusing particularly on the Le Spa at Sofitel, Sofitel Bora Bora Beach Resort and Sofitel Motu Bora Bora, a private island in French Polynesia (PR Log, 2007). Divertiture Strategy says that Selling a division or part of an organization (David, 2009). During 2007 Accor sold out 30 hotel properties in the United Kingdom for a‚¬711 million (Accor, 2007a). Because due to economic crisis and loss (Accor, 2007b). In product development Accor service start on UUB Premium card in the United Kingdom and the Commuter Check card in the United States (Accor 2008b). That helps to hold the customers and employees within the organisation. Accor Hospitality is to promote all its brands, collectively. That has various ranges of Facilities and low prices. That initially target business travelers and leisure break customers (Marketing magazine, 2009). Accor Hotels had a Net Loss of a‚¬282 million due to the economic crisis and restructure costs totalling a‚¬514 million (Accor, 2010).

Future Strategy for Accor:
3.1 Crisis Management:

“A crisis is the perception of an unpredictable event that threatens important expectancies of stake holders and can seriously impact on organization’s performance and generate negative outcomes” Coombs (2007: 2-3). Meyers (1986) categorized disaster into main belongings on community perceptions, product failures, sudden changes in the marketplace and changes in top administration. Meyers as well argue that crises can be caused by troubles with financing, business relations, take-over’s, global events and changes in rules and policy. For example, following the 9/11 attacks, most of the political and media debate on terrorism has decided on avoidance policies (Kahn and Weiner, 2002). Economic impact of 9/11 is sensibly incalculable; though the global travel and tourism council has approximate reduce of the travel and tourism demand worldwide to be 10%. This compare to the jobs loss of 8.8 million people worldwide including airlines, hotels and tour operators, generate a 1.7% decline of whole GDP for the global wealth. They were two different viewpoints about concerning crisis management. One group of Researchers (e.g., Perrow 1984; Gephart 1984) argued that crises are repeated and not avoidable; whereas others (e.g., Mitroff, Pearson, and Harrigan 1996; Roberts 1990) contended that in attendance are conduct through which association can stop, run, or moderate the belongings of crises.

Accor, which function the Sofitel, Ibis and Novotel brands in the UK, said it will cut 10% of its staff at its French head offices as it seem to make a 15% decrease in maintain costs due to the crash of the “unprecedented worldwide crisis” (Sharkey,2009). But Parsons (1996) put forward three categories of crises: 1. Immediate crises: Everywhere small or negative caution survives hence organizations are not capable to examine the crisis or arrange a preparation ahead of the problem or disaster strikes. 2. Emerging crises: These crises are identified and possibly it can be blocked or restricted through business act. 3. Sustained crises: This possibly will carry on for weeks, months or still for longer duration. The Bali terror operations in 2002 probably lost Indonesia half a million Visitors and $4.0 billion in revenue. And also in Jakarta hotels bombed in 17 July 2009 (Telegraph, 2009).

Hotels in Indonesia have been bombed which leads to afraid tourists will go to some other nation now, and hotels will have to expend a buttload more money on security to try to calm those panicky travellers down (Telegraph, 2009). In Mumbai, terrorist attacks train situation, a hospital, a cafe and two hotels – locations used by foreigners as well as local businessmen and leaders (BBC News 2008). It results in Negative travel advisories on India around various countries. According to the Federation of Hotels and Restaurant Association of India Booking by overseas travellers mainly from U.S and Europe comes down by 40% to 60% (Singh, 2008). According to Kash and Darling (1998) crisis prevention and planning can be managed by the following tools, strategic forecasting, contingency planning, issues analysis, scenario analysis. This prevention and planning are helpful to manage the crisis that affects the organization. According to Mitroff crisis can be prevented, manage, or moderate the effects of crises in the organization will helpful for the future crisis to be prevented. Accor should provided security to their visitors is unavailable very seriously, Sofitel Brussels Europe is endowed with a video recorder observation system communicate by 60 cameras and magnetic keys guarantee secure access to the hotel floors (Accor, 2010c). The Crisis Management Strategy is useful for the organisation of Accor in the future to overcome the economic crisis and threats of the organisation.

3.2 Market development:

Suggestion with the intention creates a character designed for an intangible body, products tell to customers feeling (Kim and Kim 2004). According to David, 2009 focusing on new customers with the same product and service but in different geographical areas. Brand justice besides let a group to enlarge and increase the product in a range of marketplace (Maharajan, Rao, and Srivastava, 1994). A hotel brand initially creates an importance for visitors by serving to declare them of a identical stage of excellence (O’ Neil and xiamo 2006).

The table1 shows Accor hotel brands geographic presence in the world, that there is a huge opportunities for start business in emerging market like Asia and Pacific regions. Because they have

Table 1 Accor hotel brands geographic presence in the world

BRAND

EUROPE

MIDDLE EAST AFRICA

ASIA PACIFIC

NORTH AMERICA

LATIN AMERICA

TOTAL

Total

2,310

143

402

1,076

174

4,111

Sofitel

34

24

45

9

9

121

Pullman

25

5

15

_

1

46

Novotel

264

20

85

7

19

395

Mercure/MGallery

483

30

105

_

81

699

Suite hotel

24

2

_
_
_

26

all seasons

42

_

33

_
_

75

Ibis

691

31

80

_

59

861

Motel 6

_
_
_

1001

_

1,001

Unbranded hotels

22

7

15

0

1

45

Source: Adapted from Accor (2010a)

Construction of Suite hotel and Motel 6 in Asia Pacific region, that has largest volume of Travel & Tourism Demand in the future prospective and increase the market place and exceeding the geographical perspectives around the globe.

World Travel and Tourism Council (WTTC) says that, Table2. China has climbed two places by beating Japan and Germany and it occupied the second position. Travel & Tourism service is lead by China (WTTC, 2008).

Table3: Over the next one decade, the image will change to some extent as emerging tourism markets start to gather greater benefits from their investment in Travel & Tourism development. whereas the USA, China, Japan and Germany will keep their current top four slots in terms of total Travel & Tourism Demand (in absolute terms), India will be the world’s number one in terms of yearly growth in Travel & Tourism require between 2008 and 2018, averaging 9.4% per annum – ahead of China, Libya, Vietnam and Montenegro (WTTC, 2008).

Table 2 Countries expected to generate the largest volume of Travel & Tourism Demand (TTD) in 2008 TTD,

S.No Countries (US$ bn)

1

USA

1,747.5

2

China

592.0

3

Japan

514.3

4

Germany

505.7

5

France

418.8

6

UK

403.7

7

Spain

338.2

8

Italy

302.9

9

Canada

231.4

10

Mexico

157.6

Source: WTTC, 2008.

Table 3 Expected countries growth in Travel & Tourism Demand between 2008 and 2018:

S.No Countries 2008-18 (% annualised real growth)

1

India

9.4

2

China

8.9

3

Libya

8.1

4

Vietnam

8.1

5

Montenegro

7.4

6

Romania

7.1

7

Macau

7.1

8

Namibia

6.9

Source: WTTC, 2008.

By analyzing the (Table 3) Asian pacific region have a huge growth in Travel and Tourism between 2008- 2018. Where constructing and building of Suite hotel and Motel 6 of Accor brands in Asian and pacific region. Focusing on new customers with the same product and service but in different geographical areas is the Market development. However China and India are the emerging market building more suite hotel and motel 6 for the customers. So, Market development strategy for Accor hotels to develop the geographical extension around the globe.

3.3 Functional level Strategy: (Human Resource Management (HRM))

Hotels are the most important components in tourism business and Human resource issues exist dangerous to examine value, and revolve the answer to global competitive (Jones and Haven- Tang, 2005). The significance of trouble describing to skills deficiency for the hospitality sector is clearly shown by (Zhang and Wu, 2004:425). Zhang and Wu observed that in China the qualified candidate have to be promoted by the hotelier to handle the decision-making or administrative tasks. So by rewarding and motivating to the employees, customers and reselling by various methods like Gift vouchers, prepaid cards, rewards to enhance the relationships with the customers and employees.

Conclusion:

The evaluation of past three years annual report, environmental opportunities and threads is set up much helpful information about the conditions of Accor Hotels located in all over the world. However, it is essential for the organization to think again to put into practice the necessary strategic performance for the future business development. The Current trends and issues faced by the Tourism and Hospitality organisation in Crisis that’s hits both the economic and the Organization background. So Accor hotels should have the Crisis Management strategy to overcome the threats like terrorism and issues like recession that they have currently facing. And Accor have an opportunity to expand their geographic existence in the Asian pacific region by focusing on the new segmented customers. Accor are increasing the rooms per year for the customer to retain with their strong portfolio in nature. Accor have weakness in man power shortage that can be solved by the future Functional level strategy that is managed by Human Resource Management. Rewarding and motivating of staffs in the organisation.

The main aim of this essay is to explore the role of cultural homogenization to the development of the global hospitality and tourism industry in the acceptance of products and consumer behaviour in the different contexts. This essay will start by walk around the common character of consumers demand and consumption following discuss some key issue of perspectives on consumers demand and, more especially consumer’s attitude. Consumers attitude is habitually view as a by- product of homogenization (Reisinger, 2009). Shopping and expenditure have many circumstances; the resulting consumer mentalities wield a thoughtful impact upon economic activities. Simultaneously, the wide-reaching media also can influence people spending desire. In the globalization viewpoint, the perception of cultural homogenization can be exaggerated (Pieterse, 2009), after all, the global, the national and the local characteristics of social space interlink in different combinations. Indeed, a further dimension into the geographical spectrum, cultural homogenisation could increase cultural pluralism (Scholte, 2002).

Cultural homogenization comprises the appearance of customer approaches, the uprising of local culture, the collision of elite culture and the impact of modern technology. The key point is to remember that, although a variety of firms have successfully placed themselves globally. But their products and services continue to be consumed by different people in different ways. (Asgary & Walle, 2002). It is the view of (Demooij, 2004) that in new global consumers has become increasingly similar in their values and behaviour patterns despite their national cultural characteristics. Global consumers are increasingly eating the same food wearing same brands and watching same TV programs. Another point in favour of (Demooij, 2004) is that the modern world has experienced significant cultural destruction. A high overflow of consumerism has apparently forced cultural levelling from corner to corner in the world via a multitude of global agents such as Coca-Cola, Nike, MTV, Microsoft and McDonald’s (Saee, 2004).

It can be argued that the process of cultural homogenization and Heterogenization occur simultaneously at difference levels. The homogenization of the consumption patterns occurs at the international level whereas the efforts to maintain cultural uniqueness and distinctness occur more at the regional and local level. Homogenization and globalization have a tendency to be the area of elite, because the affluent and people who are wealthy can manage to pay for the products available in global markets. Wealthy, well cultured and well travelled individuals from diverse backgrounds can easily interact with the fashionable environment by help of the modern technology especially the internet. People from different backgrounds are now able to interact globally as never before. Internet makes the world smaller, more accessible and increases the level of cultural homogeneity. Although the internet does not allow people to fully understand other places and lifestyles, but it does allow people to access more information than in previous human history. (Asgary, and Walle, 2002); (Reisinger, 2009).

The understanding of the world “becoming smaller” with a growing sensitivity to cultural differences is a part of the general cultural turn, which involves a wider self-reflexivity of modernity. Modernization has been advancing like a steamroller; a fundamental dispute is whether cultural homogenization actually exists or is a fairy story or flashy public speaking. Paul& Thomson (1996) criticize it as a “globalization rhetoric” or “global aloney” their key arguments is that before 1914 the world economy was more internationalized than at present. The unquestioned cultural hegemony of the west is past. New patterns, fashions, confluences and mixtures are taking shape. Growing relationship between the BRIC (Brazil, Russia, India, and China) and “Chime” (China, India, and Middle East) are increasingly changing all fact of global trends. An example is the “Korean wave” in East Asia -the popularity of Korean soap Operas, movies and music – which has already peaked. At the same time growing global interconnectedness directing towards cultural standardization and uniformization as in the sweep of consumerism, an example is the” McDonaldization”, a short version of this momentum. (Sturges, 2005) (Yeniyurt and Townsend, 2003)

The opinion of (Ritzier, 2004) is McDonaldization affects not only the restaurants business but also education, works, leisure, the family and virtually everywhere .it has shown every indication of an unavoidable process, sweeping through the challenging tradition of the world. McDonalds is a global icon of fast food and a symbol of cheap and convenient food. One objection to this argument is that it is not true worldwide. Many countries namely, In Russia, Argentina, as in china people pay high prices for this American ambience visit (Asgary & Walle, 2002). It might be said that though McDonaldization process increases the level of cultural homogeneity but put forth a dominating impact upon many other countries’ societies. However, there is an argument that there is no such thing as a “global consumer “one cannot distinguish among European, American, or Asian consumers because of the differences in their lifestyles across continents as well as the local regional and national level. For example, although there are clear differences between the EU countries, there is also a fundamental disparity in their value systems and lifestyles (Wierengn at all, 1996). A high level of consumption generally believed to be a symbol of the good life. Also global consumer culture detects that people are strongly believe in the unlimited ability and achievements of science and modern technology (Scholte, 2002); (Pieterse, 2009).

Tourism is one of the world’s largest multinational economics activities .it involves the greatest flows of goods, services, and people on the surface of the earth, and it is therefore the most visible expression of globalization, Although the role and share of tourism in international trade is rising significantly the rapid speared of information technology has improved the efficiency of the industry operation as well as the quality of services provided to customers .it has also generated increased demand for new travel services (Reisinger, 2009).The development of sophisticated websites has allowed for the direct dissemination of travel information to potential clients. The internet has made travel products globally accessible at much lower cast. As a result customer demand has become more technology and internet -driven. From the post -modernist investigation (Williams, 2002) argues that tourism and hospitality organizations have to forget traditional marketing theory and market segmentation, instead, they should provide variety, and updating offering, so that people can consume as their wish without reference to a standardized expectation. Example of globalization in the accommodation sectors have included hotel corporation and chain creation, joint venture, franchising, management contracts, and consortia of independent hotels major international hotel groups included intercontinental Hotels (The united Kingdom) Accor (France) and cendant, Marriott, and star wood hotels and resorts (united states )these hotel groups are involved in various countries worldwide (Inter Science Wiley.Com, 2007). For example, Marriott international managing 1300 hotels of different brand world wide with the access to 40 new markets (Scholte (2002); (Reisinger, 2009).

Globalization in the retail sector includes partnerships, integration, and franchising Tour operators and travel agencies entered into partnerships and or integrated with hotels, charter airlines, retail distribution and cruise companies. American express developed a range of products in various sectors of the industry. Numerous studies suggest that a global tourist does not exist (Reisinger, 2009). Very different people live in the different countries of the world; they have different culture and behaviour patterns. For example, Asian consumers cannot be clustered in to one group because Japanese differ from, similarly there are differences among European consumers: German consumes differ from French. Because there are these cultural differences among consumers from different countries, the marketing mix also changes to suit the national characteristics.

According to Scholte (2002) Globalization is the process of incorporating people into a single world. The world is becoming a “global village”. Today’s, Globalization is not just about modernization or westernization. It is about an amplification of worldwide economic, socio-cultural, political and environmental relations. These relations link distant places in a such a way that what is happening locally is determined by what is happening globally (Saee,2004). Accesses to the knowledge and the knowledge itself have become the important factors determining the standard of living, beyond the labour and capital of production. Knowledge generates new ides, turns them into commercial products and services, and increases revenues and incomes of those who know how to use it. Unfortunately, not all nations and economics can benefit yet from globalization developments in new information technology, and access to knowledge (Houlihan, 1994).

Cultural homogenisation is perceived by some as discriminatory and moving against human rights. Critics of globalization claim that globalization brings “An increased polarization of the world in favour of the stronger economics” Poorer countries become dependent on activities in major economics such as United States. The gap dividing rich and poor nation is rapidly increasing. Rich and powerful nations have capital and technology, poor and power less nations do no have access to capital and information technology (Saee,2004). Some behaviour that the process of globalization has led to a culture heterogenization. Heterogeneity is developed through an increasing emphasis on local cultural elements such as languages, religion tradition food, shared history, or the role of family. However, the method of cultural heterogenisation is restricted, global foreign brands, theme parks, films, and television programs have different meaning and impact in the world. The western cloths, soft drinks, cigarettes, liquor, films and books that flooded eastern and central European countries significantly differed from the ethnic clothing and foods and thus were not always popular on the local markets (Pieterse, 2009).

Hybridization is an answer to the cultural differentials of ethnic and nationalist polices because it takes as its point of departure precisely. Hybridization reflects a post-modern sensibility of cut’n’mix, contravention. It represent in Foucault’s term, a “resurrection of subjugated knowledge”. It also goes under various aliases such as syncretism, realization, message; Global localization and local globalization make, first, an empirical case: that processes of globalization, past and present, can be adequately described as process of hybridization. Terrorist incident in Bali, The war in Iraq, the economic crisis, and the corporate scandal such as Enron, Leman Brothers, has made people anxious about security and survival. Evidence quoted by the impacts of war and terrorism is significant. Between October and November 2002, visitors to bali dropped by 60 percent. in the UK holiday booking were down 20 percent In February 2003 on the previous year, as a consequence British Airways intended to discard 13000 jobs by March 2004 (Mullins, 2004).

To conclude, the tourism and hospitality industry is people based, this is an industry run by people and for people. The real potential for the tourism and hospitality companies lies in their people. Cultural homogenization process has opened new opportunities for developments in hospitality industry and has facilitated growth in tourism through developments in technology and products. (Peric, 2005). (Demooij, 2004) argued that in global consumers has become increasingly similar in their values and behaviour patterns. (Demooij, 2004) beliefs can be supported that but (Hatch & Schultz, 2003)) argue that there is no such thing as a “global consumer ” (Reisinge, 2009) argues are similar to(Richardson,2004) that a global tourist does not exist, different people live in the different countries of the world; they have different culture and behaviour patterns. Richardson, (2004) is certainly correct when he says that consumer’s behaviour lying on different contexts.

The opinion of (Ritzier, 2004) is McDonaldization affects virtually everywhere and has shown every indication of an unavoidable process. It is a global icon and symbol of cheap, convenient food but (Asgary & Walle, 2002) argued that, this could be in the United States but not true worldwide. There is no doubt that the process of cultural homogenization has been strengthened by the rise of the internet and other information technologies, companies such as Yahoo , Microsoft , Google , and Motorola have become more important cultural icons like McDonalds and Coca -cola. Finally it can be said that global market is shrinking through globalization and fact that multinational companies are becoming commonplace due to the fundamental reason. Businesses are coming face to face with a multicultural workforce structure in order to obtain competitive advantage. (Dana et al.2008); (Pieterse, 2009); (Reisinger, 2009); (Oliver, 1999)

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With 380 million international arrivals annually and market share of more than 40% of global tourism Europe commands the position as the number one tourist destination’

European Commission Vice-president Antonio Tajani- ‘Journal of the Institute of Tourism Studies’ Dec 2010 pg 30.

Company History

Corinthia Palace Hotel Company Ltd is a Maltese registered company that owns

‘The Corinthia Palace Hotel and Spa’. The hotel enjoys a central location in the San Anton area. This ‘Boutique’ style hotel neighbours both the Official Residence of the President of the Republic of Malta and the San Anton Botanical Gardens.

Initially in 1920’s, the site was a private residence called ‘Villa Refalo’, which was later sold to the Pisani family in 1959. (IL-Haddiem, 1968). The villa was transformed into the ‘Corinthia Restaurant’ in the 1962. The company name ‘Corinthia’ stems from the trademark columns that remain a prominent feature in the Villa Corinthia Restaurant. The restaurant prospered and was particularly popular with both locals and expatriates on field breaks from Libya.

The success of this fine dining restaurant led the Pisani family to engage the services of architect Dom Mintoff, who designed and supervised the building of one of the finest hotels of its time. The hotel was amongst one of the first five star hotels in Malta to have full conference facilities in addition to 141 rooms, 11 suites, Garden Spa and 5 food and beverage outlets. The official opening of the hotel in the June of 1968, was conducted in the presence of then Minister of Education, Culture and Tourism, Doctor George Borg Olivier, His Excellency Duke of Edinburgh and renowned actor Roger Moore.

The success of this enterprise has set the foundation for Corinthia Group of Companies, as we know it today. The group is organised into four business units, each of which plan and implement well-defined strategies driven by single objective of continued growth. The unanimity of purpose, to achieve our founder’s vision, towards expanding the Corinthia Portfolio Internationally, is driven by Mr Alfred Pisani himself. To date the company owns or operates sixteen hotels in nine countries.

Mission

‘Our Mission is to provide our guests with the craftsmanship of care’

Company Philosophies

The company philosophy is primarily based on the core values, mainly integrity, honesty, trust and respect, which form the foundation of relationships within the Corinthia Group as well as with our customers and business partners.

Definition of an Industry.

There are numerous sources that provide a definition of an Industry, however, the succinct description in ‘The Oxford English Dictionary’ of an ‘industry’ is as follows :-

‘a particular form or branch of economic or commercial activity’

Snapshot of the Tourism Industry in Malta
Economic Performance

According to its 2010 report [1] , Travel and Tourism contributes towards 19.4% of the GDP (EUR1,151.4 million) with a forecasted increase of a further 3.6 % by 2020. Export earnings from International Visitors is expected to reap in the region of a‚¬ 777 million with a forecasted growth to a‚¬ 1443.4 million in 2020. Currently, 23.7% of the labour market are employed in industry related occupations and it is anticipated that this will rise to 28.9 % by 2020. These statistics substantiate that Travel and Tourism is perceived to remain one of the key engines for growth for the Maltese Economy.

Tourist Performance

Although the National Statistics Office has not issued the official statistics for 2010

Parliamentary Secretary for Tourism estimated that the total number of Tourists to the

island was in the region of 1.3 million [2] . This is an .1 million increase on 2009 figures [3]

Capacity :

The National Statistics Office December news release ‘ Collective accommodation establishments :Oct 2010’ reported that there are a total of 158 accommodation establishments on the Maltese Islands which equates to a total bedstock of 17,966 . During the month of October statistic report that the total amount of non resident arrivals in109,581 visitors who stayed an average stay of 6.3 nights.

5 Star Hotels on the Island

Currently , there are a total of fifteen accommodation establishments that are classified with a 5 star rating. During the month of October, this accommodation tier enjoyed an occupancy of 73 %.

Having an information at hand is invaluable when assessing the viability of an industry. The World Travel and Tourism Council uses set Indices which can be valuable to ascertaining an Industry’s attractiveness and future economic potential.

The use of PESTLE to scan the Broad Environment for drivers of change

There are numerous characteristics or strategic elements that can influence the life cycle of the local tourism industry. ‘One organisation, acting independently, may have very little influence on the broad environment: however, the forces in this environment can have a tremendous impact on the organisation’ (Enz, C.A, 2010).p16 [4] .

Consequentially, if one was to consider this statement in today’s local business scenario, it consolidates the school of thought that there’s a limited likelihood that organisations have opportunities to influence the broad environment.

However, according to ‘The principle of Enactment’ organisations do not have to submit to the existing forces in the environment. (St.John, Harrison ,2010) [5] . One example of how this is validated in the local context, is through management agreements that hoteliers have formed with Internationally renowned Brands. In contrast, the Corinthia Palace Hotel, has established its own brand called ‘Corinthia Hotels International Ltd’ (CHI Ltd). The strategic choice to create a Maltese Brand is a means to differentiate between the International brand names such as Hilton, Inter Continental, Marriot and Starwood Hotels that currently operate on the Island. Through a concept of ‘backward integration’ the Corinthia Brand has eliminated having to pay substantial contributions to third party Management Companies by forming its own unique Brand. Additionally, it has been able to penetrate the International Tourism Industry by offering Management Contracts to overseas operators in the Industry.

The task of measuring competitiveness is full of complexities as there are numerous forces at play. Therefore, it is of paramount importance to have a thorough understanding of both the potential threats and opportunities available. This will then provide the basis for which a company responds to trends and influences by integrating its resources to achieve a strategic advantage on its competitors.

Local firms competing within the Tourism Industry invariably have similar resources available to them. Additionally, each will be challenged by similar forces. Therefore, it is safe to assume that most will pursue similar strategies. However, the company that best acclimatises itself through capitalising on its strengths, its unique resources and capabilities is more likely to be successful. All organisations formulate business plans that will enable the firm to use its core competencies to achieve its mission, goals and strategies.

PESTLE Analysis

Therefore, in order for any business enterprise to adapt to the broad environmental forces it is common practice to analyse key indicators in the macro environment by situational analysis. The four areas that are believed to influence and form the context in which the firm operates are as follows :-

Political Forces

Economical Forces

Socio cultural Forces

Technological Forces

The Political Environment can significantly influence an industry and organisations.

Economic Performance

Political Scenario in Malta

The tou

The Maltese Government recognises that Tourism is a key contributor to the Maltese Economy. The government has collaborated with Public Employment Services, Educational Institutions and Social partners to invest and improve on the current skills set of the current labour market.

The broad environment. Forces within both the Broad and Task environment are critical determinants for strategy formulation for any organisation. However, the core of a firm’s business environment is formed by its interaction and between three key stakeholders and their impact on the market place :-

Customers,

Suppliers,

Competitors.

This is more commonly known as the Task Environment. All contemporary organisations within all Industries face forces that can significantly affect profitability.

‘If a firm understands these forces, then it can develop a business level strategy that allows the business to either take advantage or protect itself from these forces, which in turn allows the firm to be consistently profitable.'(Ahlstrom.D,2009) [6] .

Although many business models exist, most companies use the framework of environmental understanding established by Economist Michael Porter to measure potential of an in Industry.

Porter’s Five Forces Model

In the March- April 1979, one of the most cited authors in Business and Economics, Professor Micheal. E. Porter, published an article in the Harvard Business Review, titled ‘How Competitive Forces Shape Strategy.’ [7] . In this article he wrote :

‘Competition in an industry is rooted in its underlying economics, and competitive forces exist that go well beyond the established combatants in a particular industry. Customers, suppliers, potential entrants, and substitute products are all competitors that may be more or less prominent or active depending on the industry.

The state of competition in an industry depends on five basic forces. The collective strength of these forces determines the ultimate profit potential of an industry.’

This article formed the basis of ‘Porter’s Five Forces Model.’ This ‘user friendly’ model is now widely applied by many organisations to formulate the firm’s business level strategy. Corinthia Palace Hotel is no exception. Key strategic decision makers within the company use this model in their business plan to represent their analysis of the dynamics of the competitive structure and each forces influences the Maltese Tourist Industry .

Bargaining Power of Customers
Bargaining Power of Suppliers
Threat of New Entrants
The Threat of Substitute Products or Services

Function

The hotel has two primary functions which are to provide accommodation and catering services to travellers.

Market

Although perceived as a business hotel, the main market is leisure travellers. The tour operator and Leisure Segments constitute approximately 64% of the hotel’s market share. The company enjoys amongst the highest customer retention rate within the Corinthia group, averaging in the region of 20%.

Suppliers

Experiencing HRM issues in Hospitality:

Whatever the choice of terminology or decisions on organisation, effective HRM and the successful implementation of personnel activities are essential ingredients for improved organisational performance. The smooth-running man or woman is an essential feature of any company and for some industries people are not just important but the key factor for successful performance. HR policies and practices have an important role in hospitality to play in facilitating the effective implementation of management processes. Hospitality Companies today face five critical business challenges: globalisation; profitability through growth; technology; intellectual capital; and change, change and more change. These challenges provide HR with an opportunity to play a leadership role in the development of new capabilities to meet the challenges. The five challenges present a new mandate for hospitality human resource management in order to help deliver organisational excellence in the following four ways:-

It should become a partner with senior and line managers in strategy execution

an expert in the way work is organised and executed to ensure costs are reduced and quality maintained

a champion for employees, vigorously representing their concerns to senior management and working to increase employee contribution and commitment

an agent of continuous transformation, shaping processes and a culture to improve an organisation

2.1 Training:

One major area of the HRM function of particular relevance to the effective management and use of people is training and development. Staffs are a crucial, but expensive, resource in hospitality. In order to sustain economic and effective performance it is important to optimise the contribution of employees to the aims and goals of the organisation.

Training is necessary to ensure an adequate supply of staff who are technically and socially competent, and capable of career advancement into specialist departments or management positions. There is, therefore, a continual need for the process of staff development, and training fulfils an important part of this process. Training should be viewed, therefore, as an integral part of the hospitality process. Because specially in hospitality industry new IT based training are getting famous irrespectively in hotels, airlines. Training benefits includes:-

Improve performance which results in cost savings of HRM

Improve productivity

Improve quality of customer service

Improve self esteem of employees

Improve sense of job security

Increase comrade and sense of team work among employees

Increase higher morale among employees and

Reduce employee turnover and absenteeism

Reduce stress and tension of employees

Reduce waste

Reduce work conflict among employees

In today’s competitive business weather hospitality industry is facing new skill developing process in different way. Customers are now more concerned about quality service rather than just service. According to WTTC tourism & hospitality industry supporting more than 258 million jobs worldwide and generating some 9.1% of global GDP. In 2008 UK Government ?112m fund for hospitality training reveals the importance of training. Travelodge welcome this fund from Government. Chrissie Herbert, director of HR at Travelodge, said: “As we approach the 2012 Olympics we are in a skills race to ensure we have the number of people needed to match the demand”.

2.2 Customer Care:

After training customer care is the another big issue in hospitality industry now-a-days. It is important to remember that good customer care start with good staff care. Surveys reveals that people are happiest at their work when they feel valued and important, when they are involved in the business and feel knowledgeable about what is happening.

In today’s hospitality business customer care is the main concern where all businesses should focus on because customer expectations for quality are increasing, presenting the industry with a double edge sword; at the same time qualified labour is becoming harder to find and keep and this is a great challenge for HRM in any hospitality business. That’s why HRM in hospitality trying to get more effective result by training existing employees in several field in hospitality. Customers are demanding higher levels of service excellence. Linking this issue with seasonality, a common characterise of tourism enterprise , Baum and Hagen(1999,p130)wrote, “the lack of sustained employment, which is characterise as seasonal operations, undermines the ability of operators to deliver quality, which the market place, increasingly, expects”.

Service remains key factor for hospitality but value for money is becoming increasingly important as recession looms, research has revealed in UK 2009 by Square Meal Restaurants & Bars report, which surveyed more than 9,500 diners, found service remained a major gripe (44% of all complaints containing words such as “over-priced”, “costly” and “poor value”) for customers.

2.3 Stress in Hospitality:

Work stress is now recognised as a major issue in the human resource management within the hospitality industry context. Service quality issues are beginning to assume major importance in the success of many operations. Interpersonal conflict and work stress responses associated with hospitality industry employee management conflict, together with approaches to service quality.

In European Union countries, hospitality industry has been identified as one of those most stressful sector to work, with frequent contact with inebriated clients and customers. Exposure to violence and sexual harassment is sometimes viewed as being a regular occurrence and a part of the job in the sector. Stress factors in the hospitality industry include an intensive interface with customers; increasing customer demand for highly diversified and personalized services; tight requirements on timely delivery of services, especially in kitchens and restaurants; unclear roles in a customer-dominated environment; and lack of training for supervisors. These result in low control of employees over their work. The health status of workers in the hospitality industry is worse than that of the average population, especially concerning mental health.

In hospitality there are different reasons for stress and they are: global competition, customer expectations and demand for highly diversified and personalized services, tight requirements on timely services, especially in kitchens and restaurants, unclear roles in a customer-dominated environment, and lack of training for supervisors, reducing in staff to reduce cost, lack of control over working situations, seasonal staff turnover etc.

2.4 Empowering the employees:

Empowerment, formerly known as participative management, reduces employee turnover and increases customer satisfaction. High hospitality industry turnover is the result of poor employee selection, inadequate training and an over-abundant management staff. Empowering the staff makes them work better together as a team and leads them to provide a better quality of service. In a simple way, empowerment extend democratic approach from workforce which is very good for hospitality organisations because it’s not possible for hospitality managers to be everywhere every time, in those moment empowerment make employees more participative and delegate them towards job satisfaction.

Empowerment was known as “participative management,” but the problem had always been that implementing the concept was much more difficult than talking about it. No one knew how to overcome this problem for the usual reasons that all concepts can fail – that is, identifying the who’s, what’s, when’s, where’s and how’s of implementation. The hospitality industry today requires to examine the way to manage. Hospitality industry is plagued with turnover statistics that are way out of proportion and this situation has developed because of poor hiring practices, insufficient training and overstaffing in management ranks.

Empowerment is a style, not an evolution. It is a philosophy that must originate from the top – if it doesn’t, it will fail. Empowerment flattens out the organizational chart naturally by eliminating the tiers of responsibility, replaces desire to establish accountability with results, allows hospitality industries to respond to the aspect of customers’ needs and complete satisfaction.

HRM in hospitality industry must understand the economic benefits of employee empowerment. Employee empowerment makes each individual responsible for doing the job to the best of their ability which results in greater guest satisfaction, returning guests and lower employee turnover. Hiring the best person for the job and adequately training that individual will also lead to greater employee empowerment. Empowering management personnel requires altering the job so that management receives feedback on their management style from their staff as well as their supervisors.

2.5 Management & Leadership in hospitality:

Effective leadership is the number one factor that influences success in hospitality organization. Maintaining cultural identity, employment brand and employee satisfaction requires consistent and regular communication. Leadership skills include a strong focus on relationships, emotional intelligence, a track record of results and innovation, a focus on process and outcome, and the ability to give positive and constructive feedback. Also important is the ability to teach and coach others and provide recognition both formally and informally.

Management and leadership style is a contemporary issues in today’s hospitality business. There is a sentence “Employees don’t leave their jobs, they leave their managers”. The reason for that is the style adopted by today’s leaders are not always right and it’s a big issue. International Labour Organisation(ILO) said almost 600,000 employees a year leave hospitality managers in their droves, which leads hospitality industry average recruitment and initial training cost ?1,500, costs around ?886m as a whole. Labour turnover for the whole hospitality, leisure tourism and travel (HLTT) industry stands at 30%, although some employers within the hospitality industry alone report double or triple this figure. Yet, only 14% of employers feel their labour turnover is too high.

HRM should be part of any pilot program to help leadership understand, anticipate and mitigate management problems in hospitality. When HRM has experience in participating in a virtual team, it lends credibility for HRM to fully participate and respond to problems as they arise.

3. Conclusion:

It is known that, hospitality industry stands on employee performance. So, HRM department in hospitality now-a-days getting more and more challenge day by day because every business strategy of today’s world more focused on service which is a crucial issue in hospitality field. HRM managers should emphasis on the need for professional approach and right leadership attitude to achieve goals and keep status. HRM in hospitality industry has grown with its impact and status because of huge number of hospitality industries increased globally. Only The British hospitality industry contribute ?46 billion to the UK economy and the core hospitality economy is estimated to directly contribute ?34 billion in tax revenue by creating 2.44 million jobs in the hospitality sector the 5th largest industry in the UK, and a further 1.2 million jobs are indirectly generated by hospitality which is around 8% of the total UK employment. This statistics proves that, the HRM has great responsibility to play a vital role in hospitality sector by adjusting with market needs and trends.

INTRODUCTION OF HOSPITALITY – hospitality in my own understanding is between guest and host it includes the venue or location and how to entertain the guest that provides the quality of service for the purpose of hospitality. It is also means that when and where there are foods and drinks operate in any establishment there is a hospitality means. Like in United Kingdom hospitality now a day change in so many ways because before establishments in food and beverages must close early before night comes and no one is allowed to operate so the effect for the hospitality means are low in terms of business income to every business owner and of course to the government of this country. But now a day hospitality in this country establishment like food and beverages, convenient store, bars and clubs also restaurants are a huge part of contribution in sharing a national income to the government of United Kingdom. And aside from the many varieties of hospitality establishment in United Kingdom they are allowed to operate more time some are till mid time of the morning but the security of the cities are become more strict in terms of caring and visualizing the people because some teenagers become more aggressive when they are drunk so for the concerned of the good citizens like policemen they keep on patronized to keep the peace and safety of every one.

STRUCTURE OF THE HOSPITALITY INDUSTRY-3 from top to bottoms like a pyramid shape this is how I illustrate the structure of a business in hospitality industry from top of course is the owner then a big role from a called area manager or head manager or either deputy manager down to assistant manager then shift managers it is categorized in many sectors for the shift managers because under this there are so called leader shift manager, kitchen manager, accountant or accounting department manager, the head security and staff, logistic and human resource management, the maintenance manager under this are the apprentice and staffs, the front counter, crew members, crew trainee, kitchen staff, coordinators staff, security staff from this sectors are the bottoms of the structured phase of hospitality but from this sectors where in the lower position are the managers started to gain performances defend on their knowledge, talent, ability and skills on how they be graded to promote on the next high level of position till they reach the position as being manager because of their impeccable performances. But this is not an easy task for everyone because it is required the ability to show how dedicated you are in your workplace the experiences for every candidates to pass through, specially the difficulties on how to handling the unconditional problem situation of the duties and responsibility on how an employee manage the success of his/her responsibility. But with the regards to the operational structure of this establishment I want to elaborate the significant about the different of the two hospitality industry that I chosen the first one is the mc Donald restaurant which I am working now and the second one is the Reflex bar which is openly visit most of the week just for the pleasure of unwinding my long stay in this country as part of international student or let say because sometimes you can escape from thinking back how is the family in the country where I came from or as easily called just to ease the called Home sick. Operationally mc Donald restaurant operates usually with crew members, crew kitchen members and a shift manager while in functional the information technology, the human resources and the area manager are not seen mostly in the restaurant. While in the Reflex bar operational team member mostly in the establishment you can meet first is the security who check the identity of every customer to make sure that they are in the right age because the establishment serve liquor beverages then inside you will meet the second security who are assigned in taking the entrance fee of five pounds for every customer who visit the bar then in inside of the bar are the bar tender and the waitress and waitress their role gives more means to hospitality in the bar because they can contribute efficient service to the customer because I like their being polite and too generous to commit the needs of the customer like the way they manage the mixing of the wine with the style of their own creation. About the functional operation of the Bar the head chef cannot be seen in this establishment in which is the different from the mc Donald that you can see how the kitchen crew operates but they are equal in human resource and area manager and the owner as well in functional term.

1.1

I choose Mc Donald as part of my task, because this is where I work and also I can rely more of information I need to gather and it is also relevant to my course. Our restaurant is more on walk in types of restaurant and I find some information on the internet that Mc Donald restaurants are about to 30,000 restaurants, serving 52million people in more than 100 countries each days. Also that 70% of the restaurants are operated and owned by independence both male and female. Also in this field of business I can elaborate some scale of economies for this restaurant. The external economies that the cost per unit depends on the size of the industry and the internal economies that the cost per unit depends on the size of the individual firm, also in scale of hospitality it gives a big company access to a large market by allowing them to operate with a greater geographical reach. While in the scope of hospitality are cost Advantage that result when firms provide a variety of product or delivery of a single output. It can arise from the sharing or joint utilization of inputs and leads to reduction unit cost. In regards to the diversity of this restaurant products and service are complete in terms of meal deals from drinks to burgers and with a portion of chips or French fries. With regards for the accommodation of this restaurant the first thing people can observe is the five star remarks that stick on the front door of the restaurant showing the rate from the board of health and safety regulatory then also the warm welcome service of the crew member for being their politeness. Secondly the facilities are complete in terms of technology because we have the WI fi free internet connection for the customer also the clean and a nice place to eat and relax and a good place for the children especially for the family to visit. While in the Reflex bar the number of the customer compare to the number of the costumer of mc Donald restaurant are too far from the number of their customer who visit in a day because reflex bar operate only at night time while the restaurant operate night and day. Also the mc Donald serve a variety of foods in terms of promotional offer in every month we have a rotational offer of the new product and with the big help of advertizing and the media as well it helps a lot to introduce the product to promote it with the part of a meal deal also. So the tendency customer are not feeling fed up for the burgers because aside from the promotional product they offer some free as well specially in the children’s meals this is the biggest different in part of the Reflex bar in which they only have a brochure to offer for the customer and most of their promo are only free entrance but with the regards to the food and drink are still in the same price customer can get.

1.2
1.2

The second choice that I pick is the Bar which I usually visit just located in reading town, THE REFLEX bar of the 80s I love to visit the bar every Saturday because that is the big night of the week. It feels unwind to me. Inside the bar you can feel their music, but the set up of the business is more focus on beverages and some foods too. But they were popular on the ambiance especially their sounds that’s maybe the reason people love to visit the place. And I could also say, that because the tendency of the bar is focus more on the mature customer because 80s songs now a days are more likely to the 30yrs old up persons. Unlike some bars are fits for the teenagers only and the tendencies or the impact for social community are very strict and so complicated because of their youngest age while in the reflex bar is not because more of the customers are professionals. But also one of the things that I like in this bar is the strict of the staff and friendly as well and very polite to the customer. But in regards to the services structure of this establishment there are various dissimilar and similar when it comes to operational and functional. Operational the mc Donald restaurant operates without the security personnel while in the reflex bar is required with the security staff because they serve different liquor beverages. And functional both mc Donald and reflex bar are similar in like human resource management, information technologies, and the maintenance management and of course the owner of the establishment.

1.3

People 1st is the sector skills council for hospitality, leisure, travel and tourism. We are working to transform skills in the sector, particularly in the areas of management and leadership, customer service and craft skills. We are committed to ensuring that public funds support the industry to develop only those qualifications and programs that meet the needs of employers.

http://www.people1st.co.uk/

In my own understanding to this I think now a day the government of United Kingdom gives the skilled person the opportunity to have the better job benefits and also for the foreign student like us it is more beneficial when u meet the requirements the new program gives the international student to have a working permit visa as long as you finish the course in a diploma or a managerial course because according to the government in this country they ensure to support the public funds for the development of the industry.

The British Hospitality Association has been representing the hotel, restaurant and catering industry for 100 years. The Association exists to ensure that the views of the British hospitality industry are represented in a forceful, coherent and co-ordinate way to government and policy makers in the UK and internationally, in order that its members’ businesses can flourish. The British Hospitality Association (BHA) was established in 1907 as the Incorporated Hotel Keepers Association. In 1910 it merged with a new and entirely separate organisation called Incorporated Association of Hotels and Restaurants, taking on the latter’s name.

http://www.bha.org.uk/details.cfm?page=suppliers

In this matter world wide support organization or rather known as globalization is the best I can explain because now a day every country share and support the needs of the industry specially the field of hospitality industry in this country. Like in mc Donald before they started from a few franchising then they come up to establish their own products like owning a huge farm for their potatoes and made their own French fries as well as the process of the milk from their own farm land as well to give support to the farmers of this country that is also agreed to the policies of the government in United kingdom.

1.3
The Institute of Hospitality is the professional body for managers and potential managers in the hospitality, leisure, travel and tourism industries is an internationally recognised management organisation with UK and international regional branches covers all sectors of the industry including hotels, contract catering companies, restaurants, pubs and clubs, as well as leisure outlets, theme parks and sports venues is a registered charity and has a worldwide membership with a wide range of benefits provides members with designatory letters which confer a respected acknowledgement of an individual’s qualifications and specific industry experience enables members to network with industry contacts, to develop professionally and to progress through the membership grades of the Institute. The Institute of Hospitality is a registered educational charity and works closely with all hospitality, leisure and tourism agencies, education and awarding bodies, and government departments, providing an interface between education and industry.

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Institute of hospitality in my own explanation, like in impact international college giving a student especially like us international student who are taking up higher national diploma in hospitality management are giving the chance to become a professional in the field of hospitality. Impact school is one of my examples as the institute of hospitality that help the international student gain both the education and a career diploma. Their instructor is highly skilled and trained profession that enhances us to more information about the world of hospitality and guided us to become one of them in the future.

HND in Hospitality Management
Unit 1 Task Two
The Contemporary hospitality Industry
2.1

In this task still I choose the restaurant and a bar as part of the topic in my assignment the highlight of this two hospitality establishment are the restaurant that operates in day and night and the bar that is operates more on the night according to my chosen field. The mc Donald and the reflex bar. The big issues for this two is the restaurant roles and responsibility, the restaurant is more on training because it operates with the many structures of trainees that compose of both part time and full time and most of the participant are a variety of foreign workers. While in the bar, the staff is mostly hired in this country because it required most important of their English communication because the type of business is more comply on how you communicate to the customers for fast service quality. And the type of foods and drinks they offer in this establishment are very different because in the restaurant it is fit to eat and drink for the children and adult while in the bar, wine and liquor beverages are serve for the adults only and the types of foods as well are fit for the young and adults only. Also the dissimilar types of customer comes in this two hospitality establishment are in a huge differences the restaurant customers comes for eating accommodation only while the customers in the bar are comes for the pleasure of enjoying the music, dancing and of course a group of parties and an event of celebrating birth day parties for young and adults this is in more of drinking rather than eating. Another thing is the place or the site of the venue for these two different catering industries I observe most that the restaurant where sited in a place where more people visited like in the huge car parking space or most in the malls or near in the public places that most people visit unlike in the bars you can site them most in the town cities that are nearest in the police station that are intact to communicate in case of any violence happen in the scene.

2.2

In this sector the roles and responsibilities of the staff for each establishment are a very important for every business because this is the characteristic and the main highlight that asses and manage the business. The criteria for every individual qualification are in different requirement, I can describe that the head of the business is the store manager in a restaurant with the support of the assistant manager who impose the action taken from the order of the store manager. Then the assistant manager divided the special task for the shift managers in different schedule and different assignment so that every body can share their particular task and also train and develop the staff as well. They manage the information gather according to the order of the store manager and this is how my work place manages the team in our restaurant in mc Donald. With regards to my understanding in this task about how the staffing affect the issues for hospitality I can added that if you pursue to work hard definitely they will give you a priority to trust that will attain me more benefits in having more time to work, they also increase my hourly rate and a good recommendation that will promote me in the next level of achievement and this is how I attain my position as crew trainee and also they promote me as a role model crew member. Then they look forward on what is my back ground in educational attainment I take Hotel and Restaurant Management in the Philippine and now taking Higher National Diploma in Hospitality Management which I think, that in the future I can use it as one of my reference to get a better job. As a matter of fact they are looking forward for me to grab the opportunity to become one of their managers. But it is complicated to my time schedule in college because the slot of the schedule programmed for the trainee of managers will be conduct on the day of my college days. I use this field of my experience as part of my task because I believe it has a relevant to the question. In added also about the roles of the staffs, this time is about the duties and responsibilities of the operational members for the kitchen staff they manage to control the foods they cook like the burgers it should not be more than the tabulated daily burgers must be made and they should follow the flow of business, if its busy on the unexpected days kitchen staff must be pro active on their duty to follow the good process of hot and good quality of burgers. In the chicken side is also the same process should the kitchen crew must follow and they should be connect to each other meaning if the chicken side is busy and the burger side or grilled side we called is not, then they should give assist to support the fast way of serving the customers. And for us the front counters we should follow the six steps for hospitality ways this are greet first the customers welcome them then take the order then take the money and assemble the foods then the fifth is present the foods and last greet goodbye to the customers. Must all be done in a lovely smile to serve every customers visit the restaurant?

HND in Hospitality Management
Unit 1 Task Three
The Contemporary hospitality
3.1

In this task the standard operating procedures of the food safety first must meet the requirements of the health and safety regulations. Meaning for the small establishment at least meet the three stars not lower than that and for the big establishment like mc Donald, Kentucky fried chicken, burger kings and many other big establishments must be graded a five stars from the health and safety regulatory board. They put stickers on the front of the establishment that marks five stars to show to the public that they pass the requirement of clean and healthy foods requirements. Now in actual presentation I have the experience in organizing and preparing the needs of restaurant by the role of maintaining the cleanliness of the restaurant as a matter of fact my store manager is very proud of me when I do the cleaning. I remember when we have the expected big visitors from health and regulatory staff we are given a grade of 96 percent in cleaning because I have done the good quality of cleaning, organize the stocks in a proper way the freezer foods stock are arrange in an organize first in first out boxes, tables and chairs where detailed clean for the purpose and safety of the customer eat in the restaurant. As an operational team worker this is my contribution in my work place as well in this task. In legislative issues resulting from recent developments that affecting the hospitality industry the regulations that changes are No smoking inside the premises of the restaurant also no liquor allowed to drink in the premises. In the contrary of that the restaurant, gives free internet access to use for their guess while dine inside the restaurant. When it comes to tips not all the times or most are lucky to have the tips because its as fast food type of restaurant but in the drive thru I am popular because of my different strategy is diverting hospitality that makes most of the customer likes me and the result tends to receive me most of having a tips from the customer but, its not about the tips I am happy it’s the way the customer appreciates my service and I could also added this experience of mine as entertainment because the management found that when I am in the drive thru window customers keep coming because of my different entertainment to them. They love my being politeness. In understanding developments in managerial they give opportunity to each crew a training provided for any candidates who meets the requirements number one is the most achievements in dedicated hard working. Then follows every soc’s gained by the crew it’s the social oriented customer satisfaction.

3.2

The current image of the hospitality industry, before establishment in hospitality are very limited in terms of, time of business, types of business. Now a days I could really differentiate the big issues that changes the establishment in hospitality because now they can serve longer time for food and beverages industry even in the hotel accommodation as well. And that maybe the cause of increase in establishment growth in every cities and town, this are some example of the image happen now in the industry of hospitality the popular perception are happens now because of the increasing number of establishment growth in food and beverages and also the improvement of their quality in terms of fast growing foods trend because now a day people are more busy in their life style and the tendencies of their time to eat and cook are limited so they tend to prepare eating out and ordering take away foods that are now serving in most restaurant. Another trend that helps more impact to increase the expansion of foods and beverages establishment is the exposure of media. With the help of advertisement people easy inform about the new trend of product they offer in foods or even in the beverages as well.

Kingston has many natural, heritage and infrastructural assets that lend themselves to the development of urban tourism and, at one time, was viewed as a viable tourist destination. The city’s history, however, indicates a level of creeping neglect and social turmoil which has led to what is today, an almost non-existent tourist presence.

However, it is the social problems that are faced by Kingston, in the form of poverty, crime, and violence, that form the strongest arguments in favour of the development of tourism infrastructure in Kingston. It argued that these are merely symptoms of the greater problem of social exclusion and the lack of economic opportunities for the community at large. Therefore infrastructural development that leads to the creation of sustainable employment opportunities is required.

The city’s current dependency on manufacturing and related industries has failed to provide the growth or economic benefits required, particularly since the liberalization of the Jamaican economy and the removal of trade protection. Jamaica has not been competitive, neither as a low cost producer of manufactured goods nor as centre of excellence in any particular manufacturing process, not even when compared with its Caribbean neighbours, such as Trinidad and Tobago. It is therefore unlikely that this sector will be the engine of future growth required to provide the people of Kingston with the economic and social benefits required. Conversely, Jamaica has gained significant comparative advantage in tourism, even though its capital city has not been central to this thus far.

Many cities in the US and around the globe, facing decline in their manufacturing or primary industries, have embarked on a similar development path and like these cities, Kingston has few available development options. However, research suggests a positive relationship between investment in infrastructure and between performance as well as between tourism and welfare. The writer suggests that properly managed tourism infrastructure in Kingston has the potential to provide significant benefits to its citizens.

There is, however very little indication that tourism development in Kingston is high on the agenda of tourism policymakers. The Tourism Master Plan, while acknowledging Kingston’s assets, does not make it a priority and merely passes the responsibility to the UDC. Additionally, while a number of papers, studies and plans exist that relates to various sections of Kingston, and some of these do acknowledge the tourism potential, there appears to be very little co-ordination of these initiatives and no central body that is responsible for guiding the achievement of the various plans.

It is recognized that the successful development of tourism in Kingston requires the involvement of the central government, local government, the private sector and active participation of the community. It is suggested that while the government will have some role to play in the provision of basic infrastructure, the major investment in tourism infrastructure should come from the private sector. Beyond this however, the government needs to create the environment to encourage this private sector investment and act as facilitator to the development by addressing such issues as:

Creation of the tax regime that would facilitate the development
Development and encouragement of the capital markets
Legislation to facilitate removal of derelict buildings and facilitate city cleanup
Inner city housing solutions that provide good living conditions for the community
Assessment and address of social and environment issues
Provision for security of citizens and assets

Tourism planners need to have a clear understanding of the key drivers that affect the demand for tourism products and extensive research may be required into the key factors affecting the major sources of tourists that would gain value from visiting Kingston. Markets include the, dsts VFR, CariEuropean markets, which are not heavily penetrated by the present offerings of resort towns, would make ideal initial candidates markets to be studied, applications of Butler’s Area Life cycle Model to the destinations in Jamaica may be useful as it is possible that the creation of Kingston as an alternative location could strengthen Jamaica’s strategic offerings. This is especially important as the resort towns approach the later stage of the life cycle and over-capacity becomes a more significant limiting factor for tourism growth an issue.

At present, the government’s ownership of the national airline Air Jamaica arTe Jamaica UTban Transit Company Limited (JUTC) and the ownership and operation of the Norman Manley International Airport make it an active player in the provision of tourism transportation in Kingston. In addition to its ro as policy setter and regulator the government will and therefore require fulg of the factors affecting the tourism demand and s tourism transportation. It is anticipated that Kingston will become a major cruise shipping destination and this will potentially raise issues and conflicts with the container shipping industry.

There is little doubt that crime and of the major issues facing the markets acceptance of Kingston as a viable destination. However, , it is important that this is not used we do not use this as of investment. It is noted that in Jamaica’s crime against tourists is relatively low and it is also noted that other countries that have high crime levels, are considered as viable tourist destinations.

While the hosting by Jamaica of the semifinal of the Cricket World Cup in 2007 will may not be judge a shining success either financially or as a catalyst for tourism, the hosting does provide a number of lessons which need to be utilized in the future. It cannot be denied that the use of such events to “Kick Start” tourism in Kingston, if properly planned and managed could be an important part of the tourism planners’ strategic tool kit.

A Strategic Plan is required

In the writers opinion there is a clear need for a Strategic Plan for the development of Kingston; a component of which should be the development of tourism. This plan must have as one of its deliverables; the formulation of a clear vision for tourism in Kingston. This vision must be shared among the stakeholders including, national and city Government, the relevant Public Sector bodies, the private sector and the community.

A clear understanding of the strengths and weaknesses of Kingston as a potential destination for tourists is required and in this regard it is important that the discourse on crime and violence and the impact on tourism is clearly understood.

A significant output of the strategic plan should be a full inventory and assessment of the existing attributes, tourism assets such as attractions, potential attractions and infrastructural assets in the Kingston Metropolitan Area (KMA). This will need to be compared with the desired assets and infrastructure to determine the required investments.

This investment is likely to be very significant and, given Jamaica’s current fiscal constraints, is not likely to be accommodated in the present budgetary environment. The discussion of PPII does touch on infrastructure financing, though it is recognized that creative and innovative ways need to be developed to finance the development.

A key issue, which must be fully considered, discussed and evaluated in the strategic plan is the issue of Leadership and Politics. While this has not been discussed in detail in this paper, it cannot be ignored as it represented a common theme in a number of the case studies that were reviewed, including St Louis, Baltimore and especially Montreal.

Additional Research Required

It is recognized that it is beyond the scope of this paper to consider all the applicable areas that require consideration. There is, for example, significant scope for new research to be carried out in order to understand the attitudes of the community, in Kingston and Jamaica generally, towards the active development of tourism in Kingston. It is important to determine whether the community will view such developments as being positive, viable and beneficial to them. and therefore we wish to , the the benefits that will the stakeholders in the unity will expect tain from delivering that value to the tourists and, the positive and negative social and environmental impacts that re expected to result from increased tourism and the related development need to be answered?

There is also a need to carry out research into the potential markets mentioned earlier before embarking on significant infrastructural or marketing expenditure. Additional data on what type of tourist may be targeted, where they will come from and what value will they get they will get from would be beneficial to future developers.

Nowadays, the hospitality industry is a powerful system of the regional economy and tourist center and an important component of the tourism economy. The hospitality industry is different means of collective and individual accommodation: the hotels, motels, youth hostels and dormitories, apartments, tourist shelters, as well as the private sector involved in the tourist accommodation.

In order to fully describe and explore this theme, it is important to introduce the concept of the hospitality industry and its main characteristics in the beginning of this paper.

The concept of the hospitality industry

To start with, hospitality is a domestic concept, which means a special kind of hospitality: hospitality of the hosts at the reception of the guests. Telfer (1996) characterized the nature of hospitality as the sharing of drink, food and shelter to people who actually are not permanent members of a household. In turn, Lockwood and Jones emphasized that there was no responsibility for guests to return hospitality to hosts (2000).

The hospitality industry as an economic activity includes the provision of services and the organization of short-term accommodations in the hotels, motels, campsites and other accommodation facilities for a fee. According to Lashley and Morrison, “to better understand hospitality activities we need to understand the provision of food, drink and accommodation in the nuclear family” (2000, p. 10). In addition to above listed, Lashley and Morrison (2000) state that, “hospitality is essentially a relationship based on hosts and guests” (p. 15).

The hospitality industry includes various spheres of human activity – tourism, recreation, entertainment, hotel and restaurant business, catering, sightseeing activities, exhibitions and various scientific conferences. Brotherton and Wood (2000) defined hospitality management as “The management of hospitality in that one set of intellectual constructs and practices (management) are applied to another (hospitality))” (p. 168).

The hospitality industry is a business aimed at providing the visitors with accommodation, food, and organizing their leisure time. The travel services, including in the framework of hotel services, referred to the social and cultural services. They are built on the principles of the modern hospitality, which increases their role in the development of domestic tourism, but also poses the certain problems in the system of training for tourism and hotel service.

Hospitality management is one of the fastest growing industries, which accounts for about 6% of the global gross domestic product and about 5% of total tax revenues, stimulating, in addition, the development of other areas: construction, trade, agriculture, consumer goods, etc.

Thus, the hospitality industry is a comprehensive scope of employees that meet any demands and desires of tourists. The commercial orientation of tourism enterprises leads to tourism and service businesses as well as the creation of specialized industry for the production of souvenirs and tourist destination. This circumstance makes it possible to allocate tourism and service in a separate set of service-tourism enterprises.

The positive impacts

Surrounding the hospitality industry, there are a lot of impacts, which have negative and positive aspects affecting them.

It is necessary to note that a cultural aspect is a very important component and plays a big role in the hospitality industry. The cultural skills help to deal more effectively with foreign visitors. The cultural aspect itself is a big impact, which has effects on the hospitality industry. In order to better understand how the cultural aspect will have impact on the practice of hospitality management and to find out that negative and positive aspects are involved, tea culture in the hospitality industry between China and Australia will give us a perfect understanding of how this tea ceremony affected the country’s economy that leads to the effects of the hospitality industry.

China has some different unique features, and can also create a competitive environment for visits and vacations. Nowadays, China ranked first in the area of tea plantations and the total volume of production. China is one of the world’s largest producers of tea. In this country, tea culture began to emerge a few millennia ago. The Chinese first discovered tea, were the first people who began to breed tea trees and first figured out how to process the tea leaves in order to get a flavored drink. Almost all nations, one way or another, have borrowed the cult of tea from the Chinese. Tea is a traditional drink in China and is used daily. The Chinese tea ceremony is not only popular with the crowds in China, but also abroad. The art of preparing and drinking tea helps people to tune into a contemplative mood, to forget about the daily hustle and to share calmness and composure with others. The Chinese drink tea in everyday situations and during public events and rituals. In China, tea is not just a drink, but it played an important role in traditional Chinese medicine, Chinese cuisine and Buddhism. In order to get tea benefits in full, it is necessary to use it very carefully. Nothing could distract the Chinese people from a particular perception of the world of tea; they contrived a special tea house. A tea ceremony unites people in a joint action. The tea energy gives clarity of thought and clarity of actions. It destroys boredom, filling a variety of experiences every passing moment. According to Evans, “tea is made with only water, therefore, good teas require good water” (1992, p.28). The Chinese tea ceremony is a way to show your hospitality to other people. This is a well-known fact that the Chinese emphasize several types of special circumstances for making and sharing tea drink. First of all, this is “a sign of respect”. In Chinese society, this is a tradition to express your respect to other people with the help of a cup of tea. Sharing tea drinking is considered to be a kind of “an act of solidarity”, offering the cups of tea can be in different situations interpreted as an apology and a request for conciliation, a demonstration of gratitude, etc. That is why this cultural aspect is very important in the hospitality industry. According to Stevens (2001), “Good communication is central to a strong ethical climateaˆ¦” (p. 240).

It is not superfluous to mention that the Chinese tea ceremony (it is called “kung Fu cha” in China) by their nature cannot be fussy, carries out in a hurry, among other things. In the beginning you need to make up your mind physically: remove outer clothing, change your shoes in soft straw slippers and turn off cell phones, so that nothing “outside” distractions. It is recommended to dress in “eastern” clothing – a kimono, embroidered by (for ex., dragons, cherry blossoms, etc.). These actions make up your mind psychologically. People are serious about this tea ceremony and it requires an inspirational and meaningful approach. In China, a lot of people state that the tea ceremony is the interaction of fire, water, tea leaves, spaces and conditions.

The best way to leave a good impression about your country is through culture and people. These actions help to form close relationships that will promote to exchange different services and goods between the guests and the hosts. Tea culture in the hospitality industry will help to promote people to buy different sorts of tea. Many tourists bring tea from China as gifts to their relatives and friends. This is really very good for the country’s economy. The Chinese tea ceremony will attract foreigners and, consequently, the economy of the country will increase and strengthen. In addition to the above-mentioned information, it is necessary to add that new trade routes will open up and export sales of tea will increase. The positive impacts could be that the cultural aspect (a tea ceremony) is a way of experiencing another culture and when the foreign tourists experience and get to know new things it widens knowledge and, consequently, affects your own culture.

The negative impacts

Despite the large number of positive impacts on the hospitality industry, the cultural aspect also has negative impacts and consequences.

First of all, it is important to emphasize negative impacts on the hospitality industry, such as the cultural conflicts. A cultural conflict is a conflict that arises in the mind of an individual who locate at the crossroads of two cultures with conflicting norms, standards, requirements. In other words, the cultural conflict is a clash of different behavioral stereotypes. The cultural conflicts are widespread in tourism, the difference of cultures and customs of different people and countries often leads to mutual misunderstanding, and sometimes even to enmity. Besides, there are the factors, the so-called “socio-cultural nature”, that adversely affect the livelihoods of local people, their culture and traditions.

“Culture” is one of the main aspects of tourism. This is a well-known fact that the experience of different unique cultures can be very useful and educational for the foreign visitors and highly beneficial and useful for the community. However, tourism is a very invasive and intrusive process, which directs different traditional communities in the modern world, threatening their cultural products and different distinct lifestyles.

This is a proven fact that commercialization, the loss of identity and originality in the products of local craftsmen are the factors caused by different negative impacts.

In addition to this, negative impacts are: the tourists’ invasions into the inner life of churches, desecration of religious traditions. An excessive number of tourists could provoke such actions as damage to the archaeological, historical and architectural monuments because of an improper use or because of an excessive flow of tourists, which exceeds the throughput capacity or inappropriate development.

Furthermore, an excessive number of tourists will lead to air pollution due to an excessive use of vehicles with internal combustion engines in the tourist areas, as well as noise pollution (aircraft, boats and hydrofoils, the excessive number of vehicles). There will be the problems of disposing of garbage in natural areas, spa centers and tourist sites. Moreover, an excessive number of tourists will lead to the violation of ecology of natural areas due to unreasonable construction of tourist infrastructure.

Growing demand from tourists for the basic goods and services often leads to higher prices, which adversely affects the local residents whose income is unchanged. Tourism development and associated increases in demand for housing could lead to a catastrophic increase in the cost of land and construction costs. But not only is it difficult for locals to meet and pay for their daily needs and this leads to the domination of other people in land markets and to the internal migration that destroy an economic opportunity for the local residents. If the number of tourists, long-term residents in some areas, exceeds a certain critical number, it can lead to a catastrophic rise in prices. Tourism development can cost the local government and taxpayers a lot of money. Businessmen involved in business development, may require the government to improve the airport, roads and other infrastructure, which usually leads to an increase in taxes and other financial costs. The public resources spent on financing infrastructure and violation of tax liabilities may reduce the public investment in other more important areas, such as education and health.

O’Connor (2005, p. 267) admitted that “only once an understanding of hospitality’s origins and its place in human nature is achieved can one expect to discover what hospitality means today, and more importantly what it will mean to those entering the industry in the future”.

Conclusion

Thus, taking the above-mentioned information into account, it is important to draw a conclusion that the hospitality industry is a business sector, consisting of such types of services that are based on the principles of hospitality, characterized by generosity and friendliness toward visitors. Hospitality is one of the concepts of civilization, which is due to the progress and time has become a powerful industry that employs millions of professionals, creating perfect conditions for the consumers (tourists). King (1995) stated that the main purpose of giving hospitality is normally a private generosity and quality. Supporting this argument, Jones (1996) said that “hospitality is made up of 2 (two) distinct services, which are the provision of overnight accommodation for people staying away from home and the provision of sustenance for people eating away from home” (p.1).

Nevertheless, there are both negative and positive aspects, which affect the hospitality industry. These two sides of the impacts were discussed. On the one hand, the cultural aspect as the Chinese tea ceremony helped to improve the tourism environment, living a perfect image about this country and attracted a lot of tourists. Consequently, this helped to improve service and management quality and increased the exchange of knowledge and culture between countries. On the other hand, there are negative impacts that include cultural conflicts; air pollution due to an excessive use of vehicles, a large number of tourists will reduce the quality of services and a catastrophic rise in prices, etc.

In addition, Morrison and O’Gorman emphasized that “It [hospitality] represents the cordial reception, welcome and entertainment of guests or strangers of diverse social backgrounds and cultures charitably, socially or commercially with kind and generous liberality, into one’s home space to dine and/or lodge temporarily. Dependent on circumstance and context the degree to which the hospitality offering is conditional or unconditional may vary” (2006, p.3).

The current tourism industries depend on an ironic and diverse, natural and built environment for its economic safety and interests. Tourism development which consistently ignores environmental concerns is unlikely to remain viable in the longer term (Pigram, J.J. 1990). As with other industrial sectors and fields of academic study, tourism has also responded to the popularization of the concept of sustainable development. Globally, tourism has been growing rapidly during the last half a century, from25million international tourist arrivals in 1950 to 698million in 2000 (WTO, 2002), and was expected to grow at an average annual rate of 4.3%until 2020 (WTO, 1998). The recent global recession has not caused the tourism industry to grind to a complete halt, and the World Tourism Barometer indicated that the recession only caused a 4% decline in global tourism from 2008-2010 (UNWTO, 2011b) and now it is expected to grow again. The nature of tourism development in any area is affected by a wide range of existing and planned development such as housing, transport, retailing, health service provision, nature conservation and agriculture etc. This essay will discuss issues related with sustainable tourism development and explain the definition and the concept in relation to the tourism industries and the host communities. The last section of this essay is aimed to explain the future of the sustainable tourism development in a destination purpose to suggest ways in which a country can make their tourism industry more sustainable.

The concept of sustainable development:

Sustainability, sustainable tourism and sustainable development are all well-established terms (Zhenhua Liu, 2003). There are two components in the definition of sustainable development. The meaning of development and the condition necessary for sustainability are those two components (Miltin, 1992). Croall(1995) compares sustainability to the “link between development and conservation”, which should not conflict to each other. According to Bartelmus, development implies a process that makes an effort to improve the living conditions of people (Tosun, 2001). Though it is argued that too much emphasis is placed on relatively short term economic impacts at the cost of considering the long term social and environmental impacts of tourism, thereby encourages in a better awareness of the problems that the industry creates (Holloway et al., 2009). The importance of sustainable development is to carry growing successes into the future in such a way that future generations are not troubled (Pearce et al., 1990).

The concept of sustainability first appeared on the public sense in the report by the World Commission on Environment and Development in 1987. The outline of sustainable development is that the economic growth and the environmental conservation are not only friendly but they are partners and one cannot survive without than other .The Brundtland Commission Report definite sustainable development as ‘development that meets the needs of the present without compromising the ability of future generations to meet their own needs’ (WCED, 1987). The Commission highlighted that sustainable development is not a fixed national agreement, but an active process of changes which ‘are all in harmony and enhance both current and future potential to meet human needs and aspirations’ (WCED, 1987: 46). It is imagined as leading to management of all resources in such a way that economic, social and aesthetic needs can be fulfilled while maintaining cultural integrity, essential ecological processes, and biological diversity and life support systems. In brief sustainable tourism consists in conserving and preserving an environment for the future generations and providing socio and economic benefits to all stakeholders.

According to Gunn (1994), the most applicable definition is given by Rees in 1989. The definition is “Sustainable development is positive socio-economic change that does not undermine the ecological and social systems upon which communities and society are dependent. Its successful implementation requires integrated policy, Planning and social learning process; its political viability depends on the full support of the people it affects through their governments, their social institutions, and their private activities.”

Sustainable tourism industry

Tourism has become a major economic activity within developed and developing countries, often contributing more foreign currency than traditional primary commodity exports. The growth in the tourism sector and its maturity made people concern that the resources of host countries might be exhausted. Attention have been paid to the relationship between tourism and the environment and to the problems associated with tourism expansion (Pearce 1985; Romeril 1989; Farrell and Runyan 1991; Cater and Godall 2002; Eber 1992; Jenner and Smith 1992). The sustainable development concept arose in response to broader international concerns over ecological issues and has been advocated for the tourism sector as a possible solution to the environmental and social degradation of the industry’s resources and due to the fact that tourism is a resource dependent industry (Cooper, 1995; Murphy, 1998).

In a research done by Zhenhua liu (2003) found that sustainability is praised by Bramwell and Lane (1993) and according to them “it is a positive approach intended to reduce the tensions and friction created by the complex interactions between the tourism industry, tourists, environment and the host communities to maintain the long term capacity and quality of both natural and human resources”. There are three objectives of sustainable tourism identified by Cater (1993).

Meeting the needs of the host population in terms of improved living standards both in the short and long term;

Satisfying the demands of a growing number of tourists;

Safeguarding the natural environment in order to achieve both of the preceding aims.

Sustainable tourism is a tourism that is developed and maintained in a way that remains economically worthwhile for an indefinite timescale and does not undermine the physical and human environment that stands and cultivate it. The format of this tourism must be economically sustainable. If it is not economically sustainable and profitable then a doubtful matter to know whether it is environmentally sustainable. Tourism that is unprofitable and impractical will simply terminate to be present or exist (Harris et al., 2002).

Considering many definitions and concepts of sustainable development Rogers et al., (2001) mentioned that there are three operational criteria of sustainable development. These three operational criteria are related one another. If any destination wants to be sustainable and wants to develop and improve their infrastructure they must have to consider these three factors. Three criteria are:

-Economic objectives should not be maximised without satisfying environmental and social constrain.

-Environmental benefits should not necessarily maximise without satisfying economic and social constraints.

-Social benefits should not be maximised without satisfying economic and environmental constraint.

The goal of environmentally sustainability is a maximum level of desired outcome such as economic profit, quality of life what will maintain in a steady way, subject to constraints imposed by environment. Basis on this concept it can be said that environmentally sustainable tourism implies a key importance on maintaining a certain level of environmental quality. This is highlighting that, a sustainable environment and a viable tourism industry are essential elements to make an environmentally sustainable tourism (Johnston & Tyrrell, 2007).

Moreover the willingness of tourism industry is much more essential for any host country to go for an implementation of the thinking of sustainable tourism. According to Tony Griffin and Terry DeLacey, at least three issues to consider before adopt self-regulatory sustainable tourism practices for any tourism enterprises (Harris et al., 2002) are:

Knowledge of appropriate practices and technologies to adopt in certain context

The perception that some benefits will arise as a result of adopting such practices

To ensure that an appropriate level of environmental performance is maintained.

Given that the most desirable sustainable outcomes differ across groups, the search for sustainable tourism outcomes must combine environmentally sustainable outcomes (which are often many) with socially acceptable compromise solutions that lie somewhere between the goals for each distinct group (Johnston & Tyrrell, 2007).

Sustainability and host community

Sustainable tourism involves social and economic benefits along with the best possible use of environmental resources for the host communities as well as provision of a secure employment and the respect for their cultures and traditions. The key elements of tourism sustainability include meeting the needs of both visitors and host communities for present and for the future. The relationship between tourists, host communities, businesses, attractions and the environment is complex, interactive and symbiotic. The host population is itself a part of the tourism ‘place’ product. The locals are subjects to be viewed and interacted with, or settings for tourist activities, and their attitudes and behaviour constitute the ‘hospitality’ resource of a destination (Smith, 1994). According to the World Tourism Organization (UNWTO) (1993), tourism is sustainable when it “improves the quality of life of the host community; provides a high quality of experience for the visitor; and maintains the quality of the environment on which both the host community and the visitor depend”.

Smith and Krannich (1998) identified host communities in three types as either tourism saturated, tourism realized or tourism hungry. Tourism hungry communities can maintain positive attitudes despite negative impacts as long as economic benefits are forthcoming. In general, economic benefits are an important influence on residents’ attitudes towards tourism (Haralambopoulos & Pizam, 1994; King, Pizam, & Milman, 1992; Lindberg & Johnson, 1997).

An evocative way to analyse sustainable tourism is to scrutinize how it can meet the needs of the host population in terms of improve standards of living in the short and long term. “If social and economic development means anything at all, it must mean a clear improvement in the conditions of life and livelihood of ordinary people” (Friedmann, 1992). The more local people gain from tourism the more they will support tourism activities and the more they will be motivated to protect the natural resources and heritages. If the resident do not get any benefits from tourism they will try to drive tourists away from the destination and as a tourists no one like to visit a place where they are not welcomed (Zhenhua Liu, M, 2003).

In Butler’s (1980) destination Life Cycle a destination evolves-exploration, involvement, development, consolidation and stagnation. Residents’ attitudes depend, in part, on these stages. Doxey (1976) described that resident’s attitudes are positive during the initial stages of tourism development such as in exploration, involvement and in development stages but become increasingly negative as a destination evolves towards stagnation.

Working in partnership:

Sustainable development requires involvement of various government departments, public and private sector companies, community groups and experts to be successful (Wahab & Pigram, 1998). The development is determined by answering what the stakeholders want it to be and Stakeholders include tourist; tourist businesses including investors, developers, operators, shareholders, management, employees, public and private sectors; the host community and their government (Zhenhua Liu, 2003). All stakeholders and different groups are always important for gaining the goal of sustainable tourism development. The history of tourism developments has shown that all groups are equally important and that long-range objectives and sustainability not possible to achieve if one group is continually subordinated to the others. Sustainable tourism development requires consecutively meeting the needs of the tourists, the tourist businesses, the host community and the needs for environmental protection (Zhenhua Liu, 2003). It mentioned by Zhenhua Liu (2003), as Bramwell and Lane (2000) debate, for the effective planning and implementation of collaboration and partnerships among various stakeholders in the process of tourism development. By merging these needs and concerns, the host community will achieve an improved quality of life, while the tourists gain satisfactory experiences, the tourism industry makes a fair profit and the environment is protected for continuous future use. (Zhenhua Liu, M, 2003).

The Lake District tourism and Conservation Partnership (LDTCP) is the best example of partnership working towards tourism which was established in 1993. Their aim was to raise funds from visitors, tourism and related businesses and other in order to maintain and enhance the sustainability of the Lake District landscape. The founding organisations were the Cumbria Tourist Board, The national trust and The Lake District national park Authority. Initial support was provided by the Cumbria Training and Enterprise, Council and the Rural Development Commission. The LDTCP is a proven successful pioneering partnership in sustainable tourism and is recognised as such within the UK, Europe and beyond. The sharing of the best practice extends as far as Holland, Greece, and Indonesia (Hind and Mitchell, 2004).

Contribution to development:

In 1960, tourism was seen as an effective developmental growth-pole, as indeed it continues to be seen in some contexts (Telfer and Sharpley, 2008). A variety of actors representing the public, private and non-profit sectors work together in development process for tourism development process (Telfer and Sharpley, 2008) and then Tourism will contribute to development, as it enhances the development of micro, small and medium-scale enterprises that cater to the tourist demand for goods and services. In the case of Kenya, the development of tourism-based community-based enterprises (CBEs) has become the principal business format (Manyara & Jones, 2007). The conservation orientation of CBEs makes it an ideal form for tourism businesses to adopt. The same is true in South Africa, which relies on non-governmental organizations (NGOs) and community-based organizations (CBOs) (Burns & Barrie, 2005). Adopting a policy of larger tourism development provide greater economic benefits in term of income and employments and this why in many developing countries tourism represents a potentially valuable development option though it is related with selection of costs or impacts from environmental shabbiness to dependency on international corporations (Telfer and Sharpley, 2008).

Lepp’s (2004) suggest that at destinations with no prior knowledge of tourism, initial tourism development will be met with suspicion, anxiety and fear. This was the case in the rural community of Bigodi, Uganda, when tourism was introduced in 1991 residents reacted to tourism with anxiety, suspicion and fear. In fact, they believed tourists would steal their land (Lepp, 2004). But in 2006, a study by Lepp’s shows that 94% of respondents expressed positive attitudes towards tourism while only 6 % shows negative attitudes where negative attitudes were rarely expressed by the local people and positive attitudes were connected with the belief that tourism creates community development, opportunities for earning income, improved agricultural markets, and a chance at good fortune.

According to the United Nations World Tourism Organization, tourism is endorsed as an effective avenue for poverty reduction in the case of developing countries. There is empirical and testimonial confirmation of this in parts of Kenya (Manyara & Jones, 2007), Botswana (Mbaiwa, 2005) and South Africa (Burns & Barrie, 2005). Controversies arise, however, as to the effect of so-called sustainable tourism in other areas. In the case of small island developing states (SIDS), a large influx of tourists may in fact be unwitting agents of further poverty proliferation. The small economies of SIDS are characterized by diseconomies of scale, limited resources, narrow economic base, and isolation from major markets. Ebbs and flows of tourists could therefore easily disrupt the delicate economic balance (denoted by stability in supply and demand) in the locality (Scheyvens & Momsen, 2008)

When considering sustainable tourism policies, different groups may consider different outcomes as their goal. For example, local people may benefit from tourism income, jobs and revenue (Haralambopolous and Pizam, 1996), but most of the time people react negatively towards tourism related activities, congestion, environmental degradation, and noise, as well as exclusion from the use of natural resources or infrastructure officially reserved for visitors (Johnston & Tyrrell, 2007). It is a common pattern is that local residences realize greater negative effects of tourism or costs related to tourism, such that sustainable goal for local residences are fewer tourists than the tourism industry desires (Johnston & Tyrrell, 2007).

Sustaining tourism and the future

Strategic planning for sustainable tourism:

Strategic planning is an essential requirement for the sustainable development and is considered vital in ensuring a destination’s resources are managed and sustained for the future, while still responding to environmental, financial, community and tourist needs (Ruhanen, 2010). The UNWTO have claimed that “the absence of planning has been responsible for most of the negative results of tourism development” (1983). A strategic plan will usually describe the present and planned directions and priorities, consider the scope or domain of action within which the organisation will try to achieve its objectives, while taking into account the skills, resources or distinctive competencies to be used to achieve its objectives (Ruhanen, 2010). According to Hall (2000), there are three objectives in the strategy for sustainable tourism; conservation of tourism resource values; enhanced experiences of the visitors who interact with tourism resources; and the maximisation of the economic, social and environmental returns to stakeholders in the host community (Ruhanen, 2010). There are many examples can be cited of potential projects of sustainable tourism without appropriate strategic tourism plan. The national Lewis and Clark Bicentennial Commemoration 2004-2006, which lost the opportunity to be a great success, have far received mixed reviews. Millions of dollars have been spent on infrastructure with almost no funding has been devoted to providing assistance to rural communities along the trail to develop marketing and promotional strategies or to incorporate specific sustainable programmes (Edgell, 2006).

Goeldner and Ritchie (2006) explained in their research that why sustainable development needs to be well planned and managed. According to them,

“Sustainable tourism development is development that has been carefully planned and managed. It is the antithesis of tourism that has developed for short term gains. Because of the expected continuing growth of tourism, sustainable development is the approach that will be needed. Because of the pressure on the world resources, it is the only sensible approach.” (p.490)

Governments:

Making tourism really sustainable requires action on a number of fronts. Regulation by government can help a host destination to be more sustainable. For example establishing minimum standards of performance with certain environmental impacts, environmental planning for tourism, supported by laws relating to land use and environmental impact assessment can help to take protective measures to prevent or at least mitigate anticipated potential problems arising (Harris et al., 2002). The role of governments in achieving sustainable tourism will most likely be boosting the chances of achieving sustainable tourism, offsetting market failures, assisting innovation and changes, managing planning permissions, creating and improving sustainable infrastructures of many types including public transport and protected areas. Gossling et al., (2009) suggest that the leadership from the government should come through political and financial supports. In January 2008, it was announced by Norwegian government that 1.2 million US dollars has been awarded to develop a sustainable tourism strategy for Norway that will be carbon neutral by 2030. It is a good example of important initiatives by a government in the field of sustainable tourism (Gossling et al., 2009).

Private sectors:

There are numerous civic and conservationist societies, multilateral institutions, associations of tourism entrepreneurs, donors, and other organizations that express interests or champion the causes of environmental preservation and the promotion of sustainable tourism (Scheyvens & Momsen, 2008).Private sectors range started from small-scale entrepreneurs such as local tour guides, small and medium sized enterprises (SME) to domestic and international hotel chain and corporations including hotel companies and tour operators (Telfer and Sharpley, 2008). Though the larger corporations always attract the most attention, it is small and medium sized informal sectors plays a great role in terms of employment and opportunities for local participates in the tourism industries. Aside from the advocacy groups, the community itself could form the basis for private ownership of tourism. The formation of CBEs/CBOs and their involvement in the local industry assure the sustainability inherent in indigenous tourism, as well as the service of justice in tourism and the interests of the community (Higgins-Desbiolles, 2010).

The research community:

The research community can play a vital role to make the tourism industry more sustainable. To achieve sustainable tourism researchers need to engage and involve with the industry and the problems of governance and regulation. They need to research market belief and new form of marketing. They can use the ideas in the social sciences to explore decision making and social trends. Sustainable tourism is an Arts and Science both. Researchers need to reflect on use analysis skills from both arts and the science. In modern days a new generation of highly skilled academics are now researching, publishing and building on the work of the first generation with new visions and force (Gossling et al., 2009).

Strategic planning and the role of Government: Case study New Zealand

New Zealand tourism strategy first published in 2001 and the NZTS 2015 is supported by two key principles: guardianship and responsibility, creating a uniquely New Zealand approach to sustainable tourism. The strategy realize that the tourism sector of New Zealand must play a lead role to protect the environment to ensure that New Zealand’s environment will continue to be enjoyed by future generations linking with other strategies and integrated approach to sustainability. The strategy is a fundamental document but in terms of directly relating to local government planning, it is recognised that the tourism sector and local authorities should understand the bene¬?ts tourism offers and lead destination management and planning initiatives and processes to maximise bene¬?ts (Connell et al., 2009).

Local Government New Zealand has increased its tourism work by actively encouraging local government participation in tourism projects. To engage with tourism issue, LGNZ issued its response to NZTS 2010, entitled “Postcards from Home” with the strategic aim “to engage local communities in planning for tourism which is socially, economically, environmentally and culturally sustainable” (LGNZ, 2003). It was familiar that there was a need to raise awareness among elected officials and council staff about the local government involvement in tourism (Connell et al., 2009).

Conclusion

To be truly sustainable in tourism a standard is needed to measure the result either it is going towards progress or regress, as the assessment of progress cannot be judged and determined unless a standard is provided. The assessment necessarily demands comparison between the previous and current state of system quality. Qualitative or quantitative data can be used to produce information for the standard. There are a number of issues in the destination which cannot be explained by quantitative data. The wisdom and experience of stakeholders might be more valuable than these statistical data to cope with their issues (Tae Gyou Ko, 2005)

The achievement of sustainable tourism development is necessary but it is a lengthy process. Any kind of change towards good cause takes time and as we know that all long journey begins with first step. The world and its people cannot change in few years. The tourism industry needs to realise that there is no magical button that will transform its future towards sustainability and make it more sustainable. The future for sustainable tourism is more complex than it seems to be. Future success in managing sustainable tourism will depends in part on training, education, and public awareness. The development of long term policies rather than short term, is essential to assure that the tourism growth occurs in a socially, economically, and environmentally responsible. It will need a partnership approach what will work with stakeholders and with competitors. Partnership approaches are apprehensive with problems but it is necessary for the future of tourism. The survival of the industry is at stake, in crisis all parties survive by working together (Bramwell and Lane 2000, 2004).

Over the years, sustainability and environmental issues have gained significant attention in hospitality, tourism and management projects. Across the world, discussions on sustainable development including that of hospitality industry are ongoing; in fact the hospitality industry is taking a serious note of it.

This chapter discusses on issues, challenges and trends that hospitality industry is facing and might face in the coming years ahead. Eco Responsible Approach and the top issues that might influence the global hospitality industry in the coming years ahead including sustainable development, calls for green hospitality, labour cost, multicultural issues and higher education are taken actively. Latest Trends in the hospitality, ways to enhance guest experience in hospitality and guest expectations to green initiatives shall be discussed. Further, the aspects pertaining to guest demands for sustainable products & services shall be covered.

Key words: Sustainable; Issues; Challenges; Trends; Hospitality Industry

7.2 Sustainability, Tourism & Hospitality:

The concept of sustainable development was initially taken in the context of the social indicators and thereafter expanded to address the environmental indicators. The World Commission on Environment and Development (The Brundtland Commission) popularised the concept of sustainable development in 1987. We may define sustainable development as: ‘Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.’ World Tourism Organisation (UNWTO) has mentioned that Sustainable tourism development meets the needs of present tourists and host regions, while protecting and enhancing opportunities for the future. It is envisaged as leading to management of all resources in such a way that economic, social and aesthetic needs can be fulfilled, while maintaining cultural integrity, essential ecological processes, biological diversity and life support systems.

The dimensions of sustainability encompasses of following elements:

competence management;

eco-efficiency;

financial management;

innovations;

operational performance;

product performance.

stakeholder management; and

sustainable management;

Sustainability practices are becoming increasingly common and the issues concerning to sustainability have become an essential part of the social and political discussions in most of the countries. These days many of the small businesses have to struggle for survival in a world of competitions with key players, mergers and mega corporations. There is a strong urge for sustainable development and thus need of involvement of all stakeholders including local communities. Further there is a strong requirement for educating the young people on the environmental issues and instilling the values in their minds so as to make the world a better place in which to live.

The concept of sustainability in the Hotel Industry:

The hospitality industry is gradually becoming one of the great examples of why running a sustainable business will be crucial for long-term success. Defined at the 1992 UN Conference on Environment and Development in Rio de Janeiro as ‘meeting the needs of the present without compromising the ability of future generations to meet their own needs’, sustainability is increasingly becoming one of the most relevant issues to hoteliers in the 21st century as costs continue to rise, demand becomes increasingly sensitive and the pressure on being economically, socially and environmentally responsible grows.

Due to the growing environmental degradation, society is forced to become increasingly aware of the need of adopting and enforcing more effective measures of environmental protection. Sustainable development, including the development of a more sustainable built environment, has thus become a priority and a challenge of our time. A number of studies indicate that the hotel industry has an important responsibility in this process. The global hotel industry, comprising of various facilities, constitutes one of the most important sectors of the tourism industry. Hotels provide accommodation and offer high level of resources for utilization (including energy, water, consumables) in hotel facilities, the environmental footprint of hotels is typically larger than those of other types of buildings of same size. Research has revealed that the hotels are large users of consumer goods; waste generation is one of the more visible impacts the hotel industry has on the environment. According to an IHEI (2002) estimate, a typical hotel produces in excess of 1 kg of waste per guest-day, which, for a typical facility, results in many tons of waste each month. These figures clearly reflect that there is an urgent need for more environmentally sound practices and products in the hotel industry.

Over the years, there has been an increased environmental awareness among the general public and the development of the concept of “green consumerism” has flourished. Where, most of the hotels in the recent past were paying attention to environmental responsibility it has is now increasingly emerged as a corporate issue.

However, in order to achieve greater environmental responsibility, proper implementation tools and strategies are necessary. The instruments of action include the enforcement of relevant laws and regulations (health and safety requirements, planning and building regulations, water utilization, waste generation and the release of emissions), as well as voluntary standards. Certification and labelling schemes are increasingly growing in popularity. Further, the governments, NGO’s, Academic Communities are coming up to assist hoteliers in running more environmentally responsible businesses. As a matter of fact many good hotel chains have also developed their modules and have practiced innovative practices. Significantly, the research study by Centre for Hospitality Research, Cornell University (2010) & (2012) by Glenn Withiam & Rohit Verma in Hotel Year Book 2012 highlighted on Sustainability citing “customers’ demand for sustainable hotel operations has taken root and expanded. The hotel industry has taken notice, as demonstrated by a push for consistent reporting standards and industry best practices coming from our industry roundtables in both Asia and North America. In that regard, meeting planners and corporate planners are now requesting that hotels provide sustainability-related information (such as energy use or recycling policies). Third-party certification of green claims has become an important part of sustainability reporting, as demonstrated for instance by Travelocity’s Green Hotel Directory, which does not recognize self-certified hotels.”

Hotels are highly dependent on financial performance and have to bank upon increased demand and reducing the costs for survival. Sustainable practices can appear altruistic to the guest, shedding a positive light on a hotel. Also, when applied correctly they are generally cost-effective with short periods of payback. The hotels who implement such measures are generally financially sound as costs are recovered in a short time and many a times often the long-term savings are great. However, only a small percentage of existing hotels have sustainability at the core of their business routine that also in organized sector.

There are many benefits for a hotel with sustainable business practices:

– Additional revenue through lower costs.

– Cost saving through cost-reduction measures.

– Easier financing because of lower long-term risk.

– Greater attractiveness to lenders.

– Greater long-term financial stability.

– Increased asset value because of long-term business capability.

– Long-term ability to stay in business and be profitable.

7.3 Trends & challenges of the industry:

Due to increased awareness on the growing environmental degradation, society is becoming aware of the need of adopting and enforcing more effective measures of environmental protection. Sustainable development has become a key priority and a challenge of time. The issue of sustainability needs to be addressed at different levels, in cooperation with academia, industry, policy makers, the general public and other stakeholders. The hotel industry has an important responsibility in this process. The study by Wang Jin – zhao and Wang zing (Shenyang University – China) in the Journal of Management Science & Engineering (2009) in has highlighted in the article issues, challenges & trends, that facing Hospitality Industry has been taken in this chapter and as under

7.3.1 Issues in Hospitality

Green Hospitality: Sustainable Development Calls for green hospitality. Going green is a burgeoning issue in the hospitality industry. People are keen to look at sustainable solutions in a whole new way. There has been a change in the perception of green; it has gone from a fringe movement to mainstream. As a sign of its gaining popularity, one of the appreciated initiatives in India is Welcom Environment Programme by ITC Welcom Group of Hotels in addition to others. Across the globe various conferences on hospitality are being held. The basis of sustainable hospitality operation is a three-part balance, expressed as “profits, people, and planet.” By taking those three elements into account, thus, a sustainable green hospitality development program becomes economically viable, as well as beneficial to the community and environment.

Higher Education: Tremendous changes are taking place in hospitality industry which poses several challenges for transformation of the whole educational process including educational curricula, learning materials, instructional practices and education stakeholders. This includes restructuring the learning process to reflect the use of information in the real world, changing the role of the educator from presenter of pre-packaged facts to facilitator of active learning and transforming the library specialist to an active collaborator in curriculum planning for effective use and availability of information resources. Ministry of Tourism, Govt of India is providing Hospitality & Tourism Education through National Council of Hotel Management, Indian Institute of Travel & Tourism Management and interestingly is Broad Biasing Hospitality & Tourism Education through Central Financial Assistance Scheme by giving a direct grant of Rupees Two Crores to each University for offering hospitality programmes under this scheme. In 2012 about 22 universities in India have been benefited and many more are likely to get. Indeed, educators need to inspire new aspirants and gear them for industry needs. The new educational providers have also been offering the undeniable demand for open, flexible, distance and e- learning; with world class universities like IGNOU offering Hospitality & Tourism Programmes, as collaboration project NCHMCT & MOT, Govt. Of India; and state universities like Uttarakhand Open University and others are promoting Hospitality & Tourism Programmes reaching to the unreached. Similarly organizations like AHLA, whose primary business is not education but who facilities to it with its educational institute.

Labour Cost Issues: Labour expenses continue to remain amongst the large expense items for hospitality managers, accounting nearly about 40- 45 percent of total operating costs. Thus, any trend or issue that could potentially impact labour costs needs to be taken seriously by hospitality owners and managers alike. “Due to the magnitude of the expense, labour costs and issues have always consumed a substantial portion of the time and efforts of hospitality managers. The cost of labour is the biggest expense in all categories of hotels. Even with the advent of select-service properties, hospitality developers cannot avoid the human component of hospitality operations. While managing labour expenses is important, hospitality managers also needs to be aware that employees are an integral part of the hospitality experience. The interaction between hospitality guests and employees has a significant impact on the customer experience and the success of the business operation. Therefore, a fine balance must be drawn between cost controls and guest satisfaction.

Multicultural Issues: The newest trends and topics surrounding hospitality research and development is the management of multicultural talent in the hospitality industry. With the development of globalization, multicultural issues are facing and disturbing the industry operators. Bringing the far corners of the world together is part and parcel of what the hospitality sector does. Blending amenities to cater for the needs of the world’s different cultures is central to success for large, international hospitality chains. Cultural issues have never before been such a crucial determinant of how a large hospitality should operate. In some Asian cultures, for example, eye contact is not sought, as it can make guests feel uncomfortable, while in Western tradition it is equated with openness and honesty. This could be important in defining how staff addresses themselves to certain Asian guests.

7.3.2 Challenges confronting the Hospitality Industry: The various kinds of challenges confronted by the Hospitality Industry revolves around Economic Issues, Operating Issues, Marketing Issues and Technological Issues

Operating Issues

Human Resources: Shortages of human resources and their impact on the industry in almost every geographic location are consistently among the most difficult challenges noted by hoteliers. In many communities, hospitality expansion is limited not by capital, but rather by human resources. A shrinking labour force is the number one challenge facing the global hospitality industry, according to the International Society of Hospitality Consultants, which recently convened to brainstorm world issues and rank them according to importance. The problem of attracting and retaining qualified workers, once an issue only in an isolated number of markets, is increasingly becoming a global challenge. Demography, wage levels, failure to adequately address worker satisfaction and a reputation for long hours and low pay are all cited as contributing factors. Creative hospitality professionals have begun to develop innovative strategies for capturing and keeping high quality workers. In India itself the research report by HVS International cites that ongoing demand for human resources is 3,20,000 and the trained manpower supply is 12,000 annually through Govt. Institutes of Hotel Management. The Prime Minister’s National Skill Development Council has articulated a vision that tourism sector will employ additional 5 million skilled persons by 2022. Realizing the increasing importance of Tourism as an integral part of economic and developmental policy of India Ministry of Tourism Govt. of India has received the 12th Plan Allocation in Rupees 15,190 crore which is a substantial increase over its 11th Plan size of Rupees 5156 crore. In order to meet the growing needs of Human Resources, Ministry of Tourism, Government of India has launched Hunar se Rozgar Programme with a target to train 1,07,800 people in 2016-17 against training of 53,800 personnel in 2012-13 for the trade of Hospitality & Tourism.

Cost Containment : Hospitalities are increasingly challenged to find ways to reduce costs without sacrificing the quality standards imposed to consistently meet guest expectations. The idea of “doing more with le” requires managers to think about ways to operate more effectively (in other words to “do the right things in the right way”) and to examine possibilities for cost savings that will not affect the guest’s perception of value.

Increased Competition : Hotels everywhere indicate that their community is overbuilt; there are too many available hospitality rooms relative to the guests desiring to rent them. The resulting competition, which often involves price cutting in efforts to provide greater value to guests, educes still further the profits generated. A steep fall in occupancy ratio in the wake of the global slowdown and tight competition among hospitality operators in a shrinking market have brought down hospitality room rents drastically across the country. The competition has resulted in low occupancies and as a result, the average room rate has taken a beating of almost 30 percent in all major leisure markets. Rooms are now sold not only for less but also bundled with packages, like breakfast, airport transfers or a day’s sightseeing. Competition calls for innovation in hospitality industry.

Marketing Issues

Market Segmentation and Overlapping Brands: Market segmentation is increasing as lodging chains focus on a specific niche of travellers. Additionally, brands overlap. Some industry observers are concerned that franchisers may expand their number of brands to the point that investors who purchase from the same franchiser will be in direct competition with themselves! Also, as the number of brands increases, the ability of consumers to differentiate between them decreases.

Increased Guest Sophistication : Consumers have become more sophisticated and, as a result, so have the types of products and services that they desire. Amenities, including business centers, exercise and recreational facilities, and guest-room innovations, increase costs but, if not carefully selected, may not appeal to many guests being served by a specific property.

Technological Issues

The challenges of keeping up with the fast pace of technology is difficult and expensive.

Interactive Reservation Systems: Guests can now use the Internet’s interactive reservation systems, and hospitality companies are sometimes criticized for the (alleged) large number of keyboard clicks required to make a reservation. The number of reservations made via the Internet continues to increase. Surveys show that a good number reservations are made through the Internet, and this percentage is increasing every year. With such high percentage of reservations done through the Internet, hospitality cannot afford not being connected. If the potential guest cannot book online, a reservation will be made at the competitor’s web site.

Guest-room Innovations: With wi fi connectivity, mood based lighting, choice of music, multiple telephone lines, interactive opportunities for ordering room service, modern ammenities and guest-room check-out are examples of amenities that guests increasingly desire, but that are very expensive to install and implement.

Data Mining This technology allows marketing and sales personnel to find new ways to use guest-related data. (data mining: using technology to analyze guest and other related data to make better marketing decisions.)

Yield Management This computerized process allows managers to match guest demand with room rates (high demand means higher rates because of lessened discounts; low demand result in higher discounts.) (yield management: demand forecasting systems designed to maximize revenue by holding rates high during times of high guest-room demand and by decreasing room rates during times of lower guest-room demand). Yield management is critical to maximizing a hospitality’s profitability. The concept are applied to every revenue department and across department. The yield manager’s job is to maximize the revenue per available room by selling rooms to the right customers, at the right price, at the right time.

Economic Issues

Dependence upon the Nation’s Economy When the nation’s economy is good, business travel generally increases. Hospitality occupancy rates and rack rates increase, which results in higher profit levels. The reverse is also true: business travel slows when the economy slow. Then occupancy and rack rates decrease. Discounts to increase occupancy are offered, which yield lower revenues and profit decreases.

Globalization Globalization impacts the lodging industry dramatically because it influences the extent of which people travel both within the country and around the world. Therefore, it is not only the economy of the nation, but also the economies of individual countries, that play an increasingly larger role in the financial success of lodging properties. To compete, they must pay closer attention to the trends of globalization. The industry must reflect the requirements of the global village in many aspects of its operations, including food, services, amenities, staffing policies and training.

7.3.3 Trends in Hospitality Industry:

Rapid Growth in Vacation Ownership : Vacation ownership is the fastest growing segment of the lodging industry and is likely to continue growing as the baby boomers enter their fifties and sixties in the U.S.A.. The World Tourism Organization has called timeshares one of the fastest growing sectors of the travel and tourism industry. Hospitality companies are adding brand power to the concept with corporations like Marriott Vacation Club International, the Walt Disney Company, Hilton Hotels, Hyatt Hotels, Promus’ Embassy Suites, Inter-Continental and ever Four Seasons participating in an industry that has grown rapidly in recent years.

Integration & Globalization: Vertical integration is a trend that began a few years ago. Lodging companies realized that guests’ accommodation needs were not just at one level; rather, they seemed to vary by price and facilities/amenities. Almost all major lodging companies now have properties in each segment of the market. The future of the lodging industry involves globalization. Companies cannot grow unless they venture beyond the United States. American hospitality chains and their management techniques were in demand by many developing countries who wanted premium-name hotel. An extensive survey of the condition of the hospitality would have shown that substantial amounts of money would be necessary to maintain the hospitality’s condition. The hospitality industry is thus at the very core of the globalization of international business. Hospitality companies therefore need to consider the implications of the global context in which they operate and must be prepared to address the questions that arise from this changing environment. Globalization will ultimately touch virtually all aspects of the hospitality industry. Increasingly, customers, management processes, employees, products, and sources of capital will be competed for and will move across national boundaries. Competition in the future will come from global entities with the advantages that globalization brings.

New Management : The complex forces of capacity control, safety and security, capital movement, and technology issues will require a future management cadre that is able to adapt to rapid-paced change across all the traditional functions of management. The growing complexity of the customer/employee interaction, driven by technology and the information age, will shape human resources needs in the future. The customer, armed with more information, will expect frontline and other hospitality staff to be at least as knowledgeable about the firm’s offerings as they are themselves. This will be difficult in an industry characterized by low-skilled, low-paid personnel and a high degree of cultural and behavioral diversity among its employees. Visioning the future: major forces driving change in the hospitality industry’ considers seven areas decisive to the future development of the industry. Each is examined to determine the scope and complexity of the issue and the timing of its impact. That is assets and capital, health and safety, new management , marketing, distribution and capacity management, technology, sustainable development, social issues

Expanded role of Travel Intermediaries & Portals: The entry of Google has added a new dimension to hotel room distribution, since users can book directly from the search results page, instead of clicking through to another site. Going forward, hotels may find themselves being distributed much like package goods. Many guests will go to a travel purveyor for hotel rooms, just as they go to a food market for groceries. Further, there have been facilities extended to many countries including India for developing free websites by google enabling small or even un organised hotels accessible on web.

Mobile apps and RFID : Social media, which have grown exponentially in the past few years, will continue to be a force, but the big electronic development for hotel distribution and operations is mobile devices, particularly those with radio frequency identification (RFID) chips. Because of the remarkable plunge in the cost of RFID, the study by Cornell Research Centre anticipate that this will break out as its own trend soon enough, and the combination of RFID and mobile apps will allow guests to use their smart phones to book a room, check in, open their guestroom door, and settle their folio – all without direct contact with staff. Even without RFID, guests’ use of mobile devices will create opportunities for innovation by hoteliers, including new services and operating efficiencies.

Next generation globalization: Not long ago, globalization meant that hotel brands from developed nations expanded into developing nations, whether through master franchises or by acquiring local firms. Globalization is now flowing in the reverse direction, as brands from developing nations are expanding to developed nations, as well as to other developing nations. To name just a few brands, Taj Hotels from India has now operations in UK, US having properties in Boston, New York, and San Francisco, as well as hotels in London and Sydney, Jumeirah from UAE now manages the Essex House in New York, as well as properties in London and Frankfurt ; Thus, globalization will mean that hotel brands criss-cross the globe.

7.4 Eco Responsible Approaches in Hospitality Business

In the tourism industry, hotels account for a significant amount of the overall pollution generated by this sector. The potential of implementing more sustainable practices in the hotel sector requires the availability of reliable tools for assessment and benchmarking of hotel environmental performance. A number of such tools have been developed by international environmental organizations, branch associations and even hotel corporations. The various schemes differ with regard to geographical/climatic areas covered, types of hotel facilities included, detail of environmental information required, benchmarking methods, user-friendliness and implementation cost.

Green Hotels: In view of the shortage of resources on Earth, rising awareness of environmental protection, and ecological conservation, eco-friendly hotels shall be the answer for the above issues, so that natural resources can be recycled, re-used, and energy can be conserved. These are the future goals of the hotel accommodation industry. The term green hotel (eco-friendly hotel) was first introduced following the emergence of the above concepts. Eco-friendly Hotel Association (2000) was set up to create the green hotel requirements that promote the economical use of water and energy, and reduction of solid waste, so as to safeguard the Earth resources. Green Mountain State (2010) has focused on the creation of an eco-friendly environment, possibly allowing for contribution from all staffs and guests alike. It carefully scrutinizes each area of the hotel operation to find ways to reduce the impacts on the environment. It also looks for ways to educate the public, and to remind everyone that every bit counts no matter how tiny the contribution may be. At the same time, it maintains its commitment to provide the kind of quality service that is expected by hotel guests. The basic concept of a green hotel is a place of accommodation that can provide eco-friendly services, but its main goal shall be focused on ways to maintain its sustainable operation. Under the premise of minimizing the environmental impact, a green hotel shall be managed in such a way to provide patrons with a comfortable, healthy, natural accommodation while its service quality is maintained.

Development of Green Hotels: Eco-friendly or green hotels are developed under the concept of sustainable operation of the tourism industry. It shall be based on the capacity to sustain the ecological environment, and shall be in line with local economic development and local ethics. In addition, it can meet the needs of contemporary people, but without endangering the future generations. Furthermore, it shall be able to promote the local economy, resource conservation, and protect the ecofriendly environment, thus creating a harmonious relationship with the nature. As the hotel accommodation is closely tied to the development of the tourism industry, when the recreation and leisure trend is becoming increasingly popular, increased demand for tourism will also stimulate the demand for hotel accommodation. According to the traditional impression, hotels are places that offer luxury accommodation and services. But, under the global environmental awareness and environmental advocacy, and complying with the environmental management requirements, hotel services are now focused on cleaner production, eco-friendly services, and regular resource conservation.

The concept of eco-friendly hotels came into being under the green corporate culture

and the above principles. With increasing attention on the environmental issues, and

influenced by the concept of green hotels, hotels in every country are urged to implement the environmental management and energy saving measures.

The main spirits of green hotels are to provide affordable products and services to meet the needs of the public, to improve the quality of life at the same time, to reduce the ecological impact on the environment gradually throughout the life cycle, and to reduce the consumption of natural resource. At least, the pace of energy consumption shall be reconciled with the

Earth’s loading capacity. Eco-friendly Hotels Association (2010) firmly supported the

green initiatives through encouragement and promotion of the green hotel services.

Through appropriate management of the natural resources, the green hotel concept

can be applied to the hotel accommodation industry.

The Green Practices in Hotels include:

Commitment to Environmental Practices: (By formulating Environmental Committees, Developing Strategies, Plan of Action, Manuals, formulating green teams, monitoring environmental performance, communicating visibility of environmental practices to guests, stake holders, staff, vendors & public)

Energy Efficiency & Conservation: (Installing occupancy sensors, use of energy efficiency equipments, applications of alternate energy sources, proper HVAC maintenance, energy efficient designs, buildings & construction patterns)

Lighting: (Installing programmable sensors, use of reminder cards, provisions for natural lights, application of dimmer controls, use of CFL and other such energy efficient lamps)

Landscape: (Sprinkler irrigation systems, recycled water, drip irrigation methods, use of drought resistant plants, grouping of tolerant plants, usage of organic fertilizers)

Managing Hazardous & Toxic Substances: (Proper provisions and instructions for storing, use of least toxic products, little or no phosphates laundry products, use of re chargeable batteries)

Pest Management: (Implementation of green integrated pest management programme, application of organic insecticides, usage of traps & barriers and discretion of strong and harmful chemicals)

Purchasing: (Creating environmental purchasing polic

To understand cultural heritage and interpretation, it is essential to understand the various definitions and theories in relation to the concept of cultural heritage.

The term ‘cultural heritage’ refers to the “things, places and practices that define who we are as individuals, as communities, as nations or civilizations and as a species” (Wedenoja, 2010). In other words, it is the cultural legacy of physical artifacts and intangible attributes of a group or society that are inherited from past generations, preserved in the present and bestowed for the benefit of future generations. It is a legacy which we often want to recognize and reserve because it strengthens our cultural identity of sense of who we are as people. However, what is considered cultural heritage by one generation may be rejected by the next generation, only to be revived by a succeeding generation.

Cultural heritage is not limited to material manifestations. It also includes living expressions and the traditions that groups and communities around the world have inherited from their ancestors and transmitted to their descendants. Thus, cultural heritage can be grouped into broad categories: tangible and intangible. Tangible cultural heritage can refer to moveable objects and immoveable sites. These include archaeological sites, artifacts, buildings, historic sites, monuments, graves, and culturally significant landscapes like sacred places. Landscapes are considered heritage when they have natural features that may have cultural attributes including flora and fauna. Heritage sites like these often serve as an important component in a country’s tourist industry, attracting many visitors from abroad as well as locally. UNESCO [1] defines intangible cultural heritage as “aˆ¦the non-physical characteristics, practices, representations, expressions as well as knowledge and skills that identify and define a group or civilization” (UNESCO, 2010). These include language, oral histories, beliefs, practices, rituals, ceremonies, customs, traditions, music, dance, crafts, and other arts.

Heritage that survives from the past is often unique and irreplaceable. This places the responsibility of preservation on the current generation. Safeguarding cultural heritage has become one of the priorities of international cooperation since 1972 when the General Conference of UNESCO adopted the Convention Concerning the Protection of World Cultural and Natural Heritage. There are 878 World Heritage Sites as of 2008. They are located in 145 countries and 678 cultural, 174 natural, and 26 mixed sites (UNESCO World Heritage Sites, 2010). The preservation of living heritage has only become significant in 2003 when UNESCO adopted the Convention for the Safeguarding of the Intangible Cultural Heritage.

(This is the short version –> still have a lot of detail to add because the term cultural heritage is very detailed and has meant different things in the past decades. Unless the professor thinks this is enough.)

Cultural Heritage and the Challenges of Tourism

In recent years, key heritage sites have seen a remarkable increase poorly guided or unguided tourists. Tremendous pressure has been forced upon areas like Angkor Wat, Luang Prabang or Halong Bay the growing number of visitors and the general growth in Tourism. International agencies such as the World Tourism Organization have predicted that tourism numbers will continue to rise over the next 10 years, predominantly so for the continent of Asia. Such growths in visitor numbers worsens existing problems at World Heritage sites which include vandalism, lack of awareness of cultural and heritage significance of sites, congestion and destination and cultural commodification. As global tourism increasingly interface with heritage sites, the pressures of meeting challenges will be more pronounced. In addition to the negative effects of unguided mass tourism at heritage sites, a rise in niche cultural tourism also prompts the need for the training of cultural heritage specialist guides for World Heritage sites. The development of such niche groups of culturally-sensitive and learning-seeking tourists is constituted within the broader developments of what has been termed by tourism academics as “special interest tourism” and the diversification of the tourism market. However, the development of niche cultural tourism is hampered by the widespread lack of cultural heritage specialist guides in Asia-Pacific. In the APETIT meeting in 2002, the training of professional guides was highlighted by UNESCAP and UNESCO as key to improvements in the tourism system and industry.

What is Digitization?

We use the term digitization to refer to the process of converting physical resources or information into a digital format (Digitization, 2007). In other words, digitizing means simply capturing an analog signal in digital form. Photos taken with a digital camera, or data collected by an electronic measuring device are automatically converted into digital form. However, text and images that are in a tangible form can be digitized with a scanner (Ibid). When scanning texts or images, an optical character recognition program, also known as OCR, “analyzes a text image for light and dark areas in order to identify each alphabetic letter or numeric digit, and converts each character into an ASCII code” (Ibid). Audio and videos can also be digitized by a process in which an analog signal is changed, without changing its essential content, into a digital signal (Ibid). The process of sampling measures the amplitude, or signal strength, of an analog waveform at evenly spaced time markers (Ibid). It also signifies the samples as numerical values for input as digital data (Digitization, 2007). Objects and sites on the other hand require a more complicated process. A 3D scanner is utilized to analyze an object or environment. The 3D scanner creates a point of cloud of geometric samples on the surface of the object or site and these points can then be used to digitally reconstruct the object or site (3D Scanner, 2010). Digitized resources can be easily shared through digital devices, equipment, and networks. Despite its many advantages, digital resources still need special care and preservation as they can become obsolete. Therefore, everything must be digitized at the highest quality and migrated to the latest storage and formats.

Digitization of an object using a 3D Scanner (Scribe It, n.d.)

Why Should We Digitize Cultural Heritage?

Cultural Heritage should be digitized for the following reasons:

Preservation of Tangible Cultural Heritage

Digitization can help preserve tangible cultural heritage including objects and buildings. All objects and the valuable information they contain will be available without jeopardizing their integrity by handling or by exposure to the elements. For instance, the Stonehenge in Great Britain is using technological interpretation to conserve the heritage site. Brian Bath states in his publication “The Use of New Technology in the Interpretation of Historic Landscapes” (2006) that a massive number of visitors wanted to see every angle of the Stonehenge and if the same number of visitors came to the site constantly it would “aˆ¦a threat exposed surface archaeology and to the protected lichens on the stone surfaces at ground level”. Bath (2006) also added that it was hard interpreting the site without explaining the conservation process as well. People wanted to see everything but what they didn’t understand was the effect they would have on the site. The solution for this matter was technology. Various forms of Medias like CDs with 3 models and web-based virtual museums were developed in response to assist tourists understand about the conservation and interpretation of the site.

3D/ Virtual Reconstruction of Stonehenge

Broadened Access

A lot of people can’t travel to museums or actual sites whenever they want and even if they could, space constraints imposed on museums would only allow them to see a little percentage of available collections. Therefore, digitizing cultural heritage greatly increases public access. Furthermore, it also advances the work of scholars and researchers worldwide, and opens new opportunities to educators in every setting. Often, objects reside in multiple places even if they are related. Thus, digitizing entire collections allows museums to assimilate their resources, making it possible for scholars working externally to see at a glance their complexity and extent of holdings in a given area. Moreover, digitization also allows museums to share their resources more broadly by integrating collections that have been separated by location across many cultural heritage institutions and research centers. And lastly, digitized materials also help museums reach underserved audiences, as well as those not motivated to see museums as a source of information. For instance, twenty years ago, students had to travel to Washington, D.C. to research in the Library of Congress and it was an expensive matter. Now, high school students from around the world have instant access. In 2003, the Library of Congress reported that approximately 15 million people visited American Memory. That is more than the number of people who have worked in the library’s reading rooms over the past 200 years and 1,500 times the number who annually use the manuscript reading room (Cohen & Rosenzweig, 2006).

New Access

Digitization allows access to historical resources that are inaccessible because of their fragility (Cohen & Rosenzweig, 2006). As an example, the original 1791 plan for the city Washington is so deteriorated and brittle the Library of Congress does not allow researchers to examine it (Cohen & Rosenzweig, 2006). But now anyone can view the digital copy on the library’s website. Not all Library of Congress documents are quite this fragile, but like many other sources, they can’t be browsed easily in analog form.

L’Enfant’s Original City Plan of Washington 1791 L’Enfant’s Revised City Plan of Washington 1792

Support Education

Another benefit of digitizing cultural heritage is that it supports education. Digitization impacts learning in classrooms and everywhere learning takes place. Studies of cultural heritage can come alive with instant access to images, sound files and text extracts. People will be able to experience things not normally possible in a museum, e.g. exploring the inside of a space shuttle in 3D. Furthermore, educators working with cultural heritage can interact virtually with audiences and cultivate forums for exploring topics in more depth and from varying perspectives. Lifelong learners will be able to guide their own learning with help from museums’ digitized collections. Overall, digitization will give public access to a much greater percentage of museum’s immense resources, providing better tools with which to spark learning. Brian Bath (2006) stated that the Museum of London set-up a web-based virtual museum and 40 percent of the people who visited the site including students actually came to the museum. As you can see, some people who may have never had interest in going were appealed.

Enhances Museums’ Competitiveness

Digitization can enhance museums’ competitiveness by enhancing visitors’ experience. A study was carried out by the SITI Research Center of the Queen Margaret University College (Reino, S., Mitsche, N. & Frew, A., 2007) in the UK by comparing live interpretation and traditional interpretation at 2 sites, which were Beamish and the Bowes. The result was that ICT improved competitiveness of heritage sites by enhancing learning, entertainment and visitor’s experience. Beamish which used technology for interpretation had an average of 4% better outcomes in each category.

Ease of Access for Researchers

In the past, researchers and scholars had to endure the thorough process of ordering up boxes of items in order to find what they were looking for. Sometimes researchers or scholars could not study the archival documents (e.g., glass plate and film negatives) without the prior conversions into readable or viewable media like prints. On the other hand digitization allows quick and easy browsing of large collections of material.

Enrich Context

Digitization will help enrich context of cultural heritage because everything relevant to an object including details, records, and other interpretative data can be shared. This will enable a richer interaction and enhance user’s understanding of an object or site’s context and meaning. In addition, digitization will enable allows experts to compare artifacts and specimens against those of the digitized museum, substantially increasing information about these holdings at a greater rate remotely. Equally important, it allows people around the world to add additional impressions, associations, and stories to the permanent record. (Will add an example)

Infinite Reach

Digitization allows infinite reach. It helps people draw multi-media resources from science centers, programs, and museums. Drawn resources could be combined in a way that it could transport an audience back in time. An audience could potentially see how Thai people were living 300 years ago, or witness battles. On the other hand, digitization could also let people experience the present as scientists do. For instance, an audience could be accessing data from Bangkok and could be in the Arctic the next minute learning about ice. And last but not least, people could perhaps travel virtually through space, with a view so clear, making them feel as though they could touch the stars from their armchair. As aforementioned, with digital assets, people would truly have infinite reach.

What is Heritage Interpretation?
The Basic Principles of Heritage Interpretation
The Evolution of Heritage Interpretation and New Media
Museums and Their Functions
What are Virtual Museums?
Still missing but will be added:
How can cultural heritage material be digitized?
Optical Character Recognition (OCR)
Digitizing audio & video
Cultural Heritage in Thailand
Heritage Interpretation in Thailand
Examples of Heritage Interpretation and New Media in Other Countries
What is the possibility for Thailand? Is it worth it? Assesing Cost and Timelines.

Problems with Digitizing Cultural Heritage (Has to be explained in more detail and more examples)

Three major problems impede the use of digital technology from being a major tool in preserving cultural heritage. The first one is the enormous amount of financial resources needed for the scanning process, the second one is the quick obsolescence of hardware and software, and the third is the need for standardization of tools and interfaces. As a result, the work done in this area is mostly on a pilot basis, where researchers study the various aspects of certain subjects, build and experiment with modest projects, debate on standards and establish coordinating bodies.

Forms of Digitization and Their Advantages and Disadvantages

Virtual Museums

3d Technology

The origins of heritage interpretation date back to the aftermath of the creation of the first natural parks at the end of the 19th century in the United States. However, it was not until 1957, with publication by Freeman Tilden’s ‘Interpreting our Heritage’ that the foundation of the discipline were established.

Although in the early days this interpretation was essentially